Cover_
Cover: - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IRDM | ||
Entity Registrant Name | Iridium Communications Inc. | ||
Entity Central Index Key | 1,418,819 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 112,239,417 | ||
Entity Public Float | $ 1,566,700,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 273,352 | $ 285,873 |
Marketable securities | 0 | 11,800 |
Accounts receivable, net | 71,210 | 68,031 |
Inventory | 27,538 | 20,068 |
Prepaid expenses and other current assets | 18,284 | 25,347 |
Total current assets | 390,384 | 411,072 |
Property and equipment, net | 3,370,855 | 3,210,162 |
Restricted cash and cash equivalents | 191,935 | 102,384 |
Other assets | 12,557 | 8,414 |
Intangible assets, net | 48,540 | 50,019 |
Total assets | 4,014,271 | 3,782,051 |
Current liabilities: | ||
Short-term credit facility | 126,000 | 85,500 |
Accounts payable | 12,869 | 43,100 |
Accrued expenses and other current liabilities | 56,990 | 32,215 |
Interest payable | 29,431 | 15,021 |
Deferred revenue | 37,429 | 38,390 |
Total current liabilities | 262,719 | 214,226 |
Long-term credit facility, net | 1,478,739 | 1,618,055 |
Long-term senior unsecured notes, net | 350,998 | 0 |
Deferred income tax liabilities, net | 241,422 | 246,170 |
Deferred revenue, net of current portion | 74,656 | 47,612 |
Other long-term liabilities | 4,160 | 59,519 |
Total liabilities | 2,412,694 | 2,185,582 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized, 112,200 and 98,203 shares issued and outstanding | 112 | 98 |
Additional paid-in capital | 1,108,550 | 1,081,373 |
Retained earnings | 501,712 | 518,794 |
Accumulated other comprehensive loss, net of tax | (8,797) | (3,796) |
Total stockholders' equity | 1,601,577 | 1,596,469 |
Total liabilities and stockholders' equity | 4,014,271 | 3,782,051 |
Series A Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 112,200,000 | 98,203,000 |
Common stock, shares outstanding | 112,200,000 | 98,203,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 1,000,000 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred Stock, Shares Outstanding | 497,000 | 500,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Services | $ 406,757 | $ 349,735 | $ 334,822 |
Subscriber equipment | 97,848 | 77,119 | 74,211 |
Engineering and support services | 18,403 | 21,192 | 24,607 |
Total revenue | 523,008 | 448,046 | 433,640 |
Operating expenses: | |||
Cost of services (exclusive of depreciation and amortization) | 86,016 | 80,396 | 64,958 |
Cost of subscriber equipment | 56,857 | 44,445 | 44,286 |
Research and development | 22,429 | 15,247 | 16,079 |
Selling, general and administrative | 97,846 | 84,405 | 82,552 |
Depreciation and amortization | 218,207 | 122,266 | 49,394 |
Total operating expenses | 481,355 | 346,759 | 257,269 |
Gain on Boeing transaction | 0 | 14,189 | 0 |
Operating income | 41,653 | 115,476 | 176,371 |
Other income (expense): | |||
Interest income (expense), net | (62,441) | 4,328 | 2,934 |
Other income (expense), net | 139 | (232) | (1,140) |
Total other income (expense) | (62,302) | 4,096 | 1,794 |
Income tax benefit (expense) | 7,265 | 114,284 | (67,133) |
Total income (loss) before income taxes | (20,649) | 119,572 | 178,165 |
Net income (loss) | (13,384) | 233,856 | 111,032 |
Net income (loss) attributable to common stockholders (numerator for basic net income per share) | $ (23,533) | $ 218,420 | $ 95,596 |
Weighted average shares outstanding - basic | 108,975 | 97,934 | 95,967 |
Weighted average shares outstanding - diluted | 108,975 | 128,130 | 124,875 |
Net income (loss) attributable to common stockholders per share - basic | $ (0.22) | $ 2.23 | $ 1 |
Net income (loss) attributable to common stockholders per share - diluted | $ (0.22) | $ 1.82 | $ 0.89 |
Comprehensive income (loss): | |||
Net income (loss) | $ (13,384) | $ 233,856 | $ 111,032 |
Foreign currency translation adjustments, net of tax | (5,017) | 1,664 | 3,487 |
Unrealized gain (loss) on marketable securities, net of tax | 16 | (14) | 130 |
Comprehensive income (loss) | (18,385) | 235,506 | 114,649 |
Series A Preferred Stock [Member] | |||
Dividends, Preferred Stock [Abstract] | |||
Preferred stock dividends declared and paid | 1,750 | 1,750 | 7,000 |
Preferred stock dividends, undeclared | 0 | 5,250 | 0 |
Series B Preferred Stock [Member] | |||
Dividends, Preferred Stock [Abstract] | |||
Preferred stock dividends declared and paid | 2,109 | 2,109 | 8,436 |
Preferred stock dividends, undeclared | $ 6,290 | $ 6,327 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Convertible Preferred Stock | Series A Convertible Preferred StockSeries A Preferred Stock [Member] | Series B Convertible Preferred Stock | Series B Convertible Preferred StockSeries B Preferred Stock [Member] | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsSeries A Preferred Stock [Member] | Retained EarningsSeries B Preferred Stock [Member] |
Balance at Dec. 31, 2015 | $ 1,228,721 | $ 95 | $ 1,044,488 | $ (9,063) | $ 193,201 | ||||||||
Balance (in shares) at Dec. 31, 2015 | 1,000 | 500 | 95,126 | ||||||||||
Stock-based compensation | 15,973 | 15,973 | |||||||||||
Stock options exercised and awards vested | 549 | $ 1 | 548 | ||||||||||
Stock options exercised and awards vested (in shares) | 753 | ||||||||||||
Stock withheld to cover employee taxes | (627) | (627) | |||||||||||
Excess tax benefit from exercise of stock-based compensation | (71) | (71) | |||||||||||
Net income (loss) | 111,032 | 111,032 | |||||||||||
Dividends on preferred stock | $ (7,000) | $ (8,436) | $ (7,000) | $ (8,436) | |||||||||
Cumulative translation adjustments, net of tax | 3,487 | 3,487 | |||||||||||
Unrealized loss on marketable securities, net of tax | 130 | 130 | |||||||||||
Balance at Dec. 31, 2016 | 1,343,758 | $ 96 | 1,060,311 | (5,446) | 288,797 | ||||||||
Balance (in shares) at Dec. 31, 2016 | 1,000 | 500 | 95,879 | ||||||||||
Stock-based compensation | 18,694 | 18,694 | |||||||||||
Stock options exercised and awards vested | 4,235 | $ 2 | 4,233 | ||||||||||
Stock options exercised and awards vested (in shares) | 2,537 | ||||||||||||
Stock withheld to cover employee taxes | (1,865) | (1,865) | |||||||||||
Net income (loss) | 233,856 | 233,856 | |||||||||||
Dividends on preferred stock | (1,750) | (2,109) | (1,750) | (2,109) | |||||||||
Cumulative translation adjustments, net of tax | 1,664 | 1,664 | |||||||||||
Unrealized loss on marketable securities, net of tax | (14) | (14) | |||||||||||
Stock withheld to cover employee taxes (in shares) | 213 | ||||||||||||
Balance at Dec. 31, 2017 | 1,596,469 | $ 98 | 1,081,373 | (3,796) | 518,794 | ||||||||
Balance (in shares) at Dec. 31, 2017 | 1,000 | 500 | 98,203 | ||||||||||
Stock-based compensation | 16,727 | 16,727 | |||||||||||
Stock options exercised and awards vested | 12,445 | $ 4 | 12,441 | ||||||||||
Stock options exercised and awards vested (in shares) | 3,443 | ||||||||||||
Stock withheld to cover employee taxes | (1,981) | $ (1) | (1,980) | ||||||||||
Net income (loss) | (13,384) | (13,384) | |||||||||||
Dividends on preferred stock | $ (7,000) | $ (8,427) | $ (7,000) | $ (8,427) | |||||||||
Cumulative translation adjustments, net of tax | (5,017) | (5,017) | |||||||||||
Unrealized loss on marketable securities, net of tax | 16 | 16 | |||||||||||
Stock withheld to cover employee taxes (in shares) | (148) | ||||||||||||
Preferred stock converted to common | (1,000) | (3) | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 10,702 | ||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 11 | (11) | |||||||||||
Changes from adoption of ASC 606, net of tax | 11,729 | 11,729 | |||||||||||
Balance at Dec. 31, 2018 | $ 1,601,577 | $ 112 | $ 1,108,550 | $ (8,797) | $ 501,712 | ||||||||
Balance (in shares) at Dec. 31, 2018 | 0 | 497 | 112,200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (13,384) | $ 233,856 | $ 111,032 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income taxes | (8,334) | (115,812) | 63,808 |
Depreciation and amortization | 218,207 | 122,266 | 49,394 |
Loss on extinguishment of debt and Thales Alenia Space bills of exchange | 7,292 | 0 | 0 |
Impairment of goodwill | |||
Stock-based compensation (net of amounts capitalized) | 14,490 | 15,958 | 13,708 |
Gain from contract liability write-off | 0 | (14,189) | 0 |
Provision for doubtful accounts | 198 | (277) | 703 |
Provision for obsolete inventory | 343 | 361 | 1,053 |
Amortization of premiums on marketable securities | (709) | 124 | 888 |
Amortization of Debt Issuance Costs | 10,145 | 0 | 0 |
Non-cash foreign currency losses (gains), net | 342 | (163) | 166 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (12,783) | (10,343) | (6,037) |
Inventory | (7,579) | (1,946) | 9,029 |
Prepaid expenses and other current assets | 5,705 | 2,875 | (16,613) |
Other assets | (1,417) | 2,823 | (2,128) |
Accounts payable | (732) | 896 | 3,209 |
Accrued expenses and other current liabilities | 37,797 | 8,166 | (6,416) |
Deferred revenue | 13,530 | 15,129 | 4,115 |
Accrued satellite and network operation expense, net of current portion | 0 | 0 | (1,045) |
Other long-term liabilities | 598 | (103) | 333 |
Net cash provided by operating activities | 263,709 | 259,621 | 225,199 |
Cash flows from investing activities: | |||
Capital expenditures | (391,390) | (400,107) | (405,687) |
Purchases of marketable securities | (235,528) | (7,013) | (19,865) |
Sales and maturities of marketable securities | 248,006 | 34,440 | 183,192 |
Net cash used in investing activities | (378,912) | (372,680) | (242,360) |
Cash flows from financing activities: | |||
Borrowings under the Credit Facility | 0 | 22,207 | 251,498 |
Repayments on the Credit Facility, including extinguishments | (80,359) | 0 | 0 |
Proceeds from Issuance of Unsecured Debt | 360,000 | 0 | 0 |
Repayment of the Thales Alenia Space bills of exchange | (59,936) | 0 | 0 |
Payment of deferred financing fees | (21,239) | (3,852) | (11,806) |
Proceeds from exercise of stock options | 12,445 | 4,235 | 549 |
Tax payment upon settlement of stock awards | (1,981) | (1,865) | (627) |
Net cash provided by financing activities | 193,503 | 16,866 | 224,178 |
Effect of exchange rate changes on cash and cash equivalents | (1,270) | 144 | 512 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 77,030 | (96,049) | 207,529 |
Cash, cash equivalents, and restricted cash, beginning of period | 388,257 | 484,306 | 276,777 |
Cash, cash equivalents, and restricted cash, end of period | 465,287 | 388,257 | 484,306 |
Supplemental cash flow information: | |||
Interest paid | 101,816 | 85,261 | 22,910 |
Income taxes paid, net | 931 | 1,660 | 1,391 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property and equipment received but not paid for yet | 11,900 | 90,748 | 2,753 |
Interest capitalized but not paid | 9,194 | 15,021 | 14,136 |
Capitalized amortization of deferred financing fees | 16,306 | 27,304 | 28,688 |
Capitalized paid-in-kind interest | 0 | 0 | 52,873 |
Capitalized stock-based compensation | 2,237 | 2,736 | 2,265 |
Credit facility repayment in exchange for settlement of hosting | 35,000 | 0 | 0 |
Cost basis investment in exchange for the settlement of accounts receivable | 3,300 | 0 | 0 |
Series A Preferred Stock [Member] | |||
Cash flows from financing activities: | |||
Payment of preferred stock dividends | (7,000) | (1,750) | (7,000) |
Series B Preferred Stock [Member] | |||
Cash flows from financing activities: | |||
Payment of preferred stock dividends | $ (8,427) | $ (2,109) | $ (8,436) |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 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 Policies
Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | 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 material 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. Adopted Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), that supersedes nearly all existing revenue recognition guidance under U.S. GAAP. See Note 11 for more detail on the Company's adoption of ASU 2014-09. Recent Accounting Developments Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting. The Company is applying the new guidance as of the effective date of January 1, 2019. Reporting organizations are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company established a project team in order to analyze the effect of the standard on its leases by reviewing its current accounting policies to identify potential differences which would result from applying the requirements of the new standard to its leases. The Company will utilize the practical expedient to address all current operating leases for which it is the lessor and the lessee. On January 1, 2019, a lease liability and related right-of-use asset was recognized for operating lease arrangements where the Company is the lessee. Adoption of ASU 2016-02 will have an estimated impact of approximately $30.4 million on the Company's assets and liabilities for the addition of right-of-use assets and lease liabilities, but will not have a material impact on the Company's results of operations or liquidity. 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. 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. All fixed-income securities are included in marketable securities on the accompanying consolidated balance sheets. 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 invested into a money market fund with 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 limits. When the Company holds marketable securities, they 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 credit facility with Bpifrance Assurance Export S.A.S. ("BPIAE") (as amended to date, the "Credit Facility"). 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, 2018 and 2017 . The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value, and the Company determined that there were no such declines in fair value of investments as of December 31, 2017. The Company did not hold any marketable securities as of December 31, 2018 and therefore a review of amortized cost basis for other-than-temporary impairment was not required. 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 not material as of December 31, 2018 and 2017 . 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 (loss). In instances where the financial statements of a foreign entity in a highly inflationary economy are material, they are remeasured as if the functional currency were the reporting currency. In these instances, the financial statements of those entities are remeasured into the reporting currency. A highly inflationary economy is one that has cumulative inflation of approximately 100% or more over a three-year period. 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, 2018 and 2017 , the Company had deferred approximately $80.1 million and $97.2 million , respectively, of direct and incremental financing costs, net of amortization, associated with securing debt financing under the Credit Facility for the Company's next-generation constellation ("Iridium NEXT"). As of December 31, 2018 and 2017, the balance of deferred financing costs for borrowings under the Company's senior unsecured notes (the "Notes") was $9.0 million and zero , respectively. Capitalized Interest Interest costs associated with financing the Company’s assets during the construction period of Iridium NEXT have been capitalized. Total capitalized interest costs, under the Credit Facility and the Notes, for the years ended December 31, 2018, 2017 and 2016 were $76.7 million , $114.4 million and $106.4 million , respectively, which include amortization of deferred financing costs and accrued interest, as discussed above. 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 a third-party manufacturer 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 net realizable value. Accordingly, the Company recorded expense of $0.3 million , $0.4 million and $1.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, which are included within the cost of subscriber equipment for excess and obsolete inventory. The expenses for the years ended December 31, 2018 , 2017 and 2016 were primarily related to certain handset parts and accessories. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark 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 probability 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 by line item on the balance sheet and statement of operations is presented below: Year Ended December 31, 2018 2017 (In thousands) Property and equipment, net $ 1,865 $ 2,326 Inventory 234 280 Prepaid and other current assets 138 132 Cost of subscriber equipment 26 30 Cost of services (exclusive of depreciation and amortization) 3,600 4,366 Research and development 340 349 Selling, general and administrative 10,524 11,211 Total stock-based compensation $ 16,727 $ 18,694 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: First-generation satellites 15-21 years Next-generation satellites 12.5 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 first-generation satellites reflected the expected use for each satellite. Satellites were depreciated on a straight-line basis through the date they were replaced by next-generation satellites. The Company completed its launches of the next-generation satellites in early 2019. Iridium NEXT satellites will be depreciated on a straight-line basis over their estimated useful life, which is currently 12.5 years . 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. 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. In June 2011, the Company entered into an agreement with International Space Company Kosmotras ("Kosmotras"), as a supplemental launch services provider for Iridium NEXT. The original cost under the Kosmotras agreement was $51.8 million . Kosmotras to date has been unable to obtain the permits or authorizations to launch the Company's satellites on a Dnepr rocket as planned, and Kosmotras has proposed no satisfactory alternative launch plan. As the Company believed the construction-in-progress associated with the Kosmotras launch services will no longer be used or further developed, the Company wrote-off the full amount previously paid to Kosmotras, by recording accelerated depreciation expense of $36.8 million , in the fourth quarter of 2017. There were no similar write-offs during the years ended December 31, 2018 and 2016. Intangible Assets The Company’s intangible assets with finite lives 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 evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. Amortization is calculated using the straight-line method over the following estimated useful lives: Intellectual property 20 years Assembled workforce 7 years Patents 14 - 20 years 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. In addition to the discussion immediately below, see Note 11 for further discussion of the Company's revenue recognition. 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 an arrangement exists, services or equipment are transferred, the transaction price is determined, the arrangement has commercial substance, and collection of consideration is probable. Contracts with multiple performance obligations At times, the Company sells services and equipment through arrangements that bundle equipment, airtime and other services. For these revenue arrangements when the Company sells services and equipment in bundled arrangements and determines that it has separate distinct performance obligations, the Company allocates the bundled contract price among the various performance obligations based on each deliverable’s stand-alone selling price. If the stand-alone selling price is not directly observable, the Company estimates the amount to be allocated for each performance obligation based on observable market transactions or the residual approach. When the Company determines the performance obligations are not distinct, the Company recognizes revenue on a combined basis as the last obligation is satisfied. To the extent the Company's contracts include variable consideration, the transaction price includes both fixed and variable consideration. The variable consideration contained within the Company's contracts with customers may include discounts, credits and other similar items. When a contract includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at the end of each quarter. 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 over the usage 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. On January 1, 2018, upon the adoption of ASU 2014-09, the Company now (i) recognizes revenue from the prepaid services upon the use of the e-voucher or prepaid card by the customer and (ii) estimates the expected revenue that will expire unused on an ongoing basis and recognizes this revenue in a manner consistent with the usage period. Prior to January 1, 2018, revenue from unused prepaid services was recognized upon expiration of the prepaid card. The Company does not offer refunds for unused prepaid services. 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 Air Force Space Command. Under the terms of this 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 Distributed Tactical Communications Services (“DTCS”) services for an unlimited number of DoD and other federal subscribers. The EMSS contract was extended for an additional six months at the annual rate of $88 million per year for the remaining term and now expires in April 2019. 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. 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. Customers do not have rights of return without prior consent 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 fixed-fee contracts is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying its performance obligation. The Company does not include purchases of goods from a third party in its evaluation of costs incurred. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. 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. 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 $0.4 million , $0.3 million and $0.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. 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 (Loss) Per Share The Company calculates basic net income (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) 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, 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 awarded to the board of directors 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 (loss) per share excludes net income attributable to these unvested RSUs from the numerator and excludes the impact of these unvested RSUs from the denominator. |
Cash and Cash Equivalents and M
Cash and Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Marketable Securities | 3. Cash and Cash Equivalents, Restricted Cash and Investments Cash and Cash Equivalents The following table summarizes the Company’s cash and cash equivalents: December 31, Recurring Fair Value Measurement 2018 2017 (In thousands) Cash and cash equivalents: Cash $ 20,879 $ 24,092 Money market funds 252,473 251,950 Level 2 Commercial paper — 9,831 Level 2 Total cash and cash equivalents $ 273,352 $ 285,873 Restricted Cash and Cash Equivalents The Company is required to maintain a minimum cash reserve within a debt service reserve account ("DSRA") for debt service related to its Credit Facility (see Note 7 ). As of December 31, 2018 and 2017, the Company’s restricted cash and cash equivalents balances, which include the minimum cash reserve for debt service and the interest earned on these amounts, were $191.9 million and $102.4 million , respectively. Marketable Securities As of December 31, 2018, the Company did not hold any investment positions in marketable securities. As of December 31, 2017, the Company held $11.8 million in marketable securities, consisting of fixed-income debt securities and U.S. treasuries. Marketable securities due to mature within one year had a fair value of $11.5 million , and marketable securities due to mature between one and three years had a fair value of $0.3 million . During the years ended December 31, 2018 and 2017, there were no material realized gains or losses. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: December 31, 2018 2017 (In thousands) Satellite system $ 2,766,627 $ 1,199,794 Ground system 60,656 67,576 Equipment 42,152 35,616 Internally developed software and purchased software 215,252 191,089 Building and leasehold improvements 30,517 32,130 Total depreciable property and equipment 3,115,204 1,526,205 Less: accumulated depreciation (453,463 ) (432,833 ) Total depreciable property and equipment, net of accumulated depreciation 2,661,741 1,093,372 Land 8,037 8,037 Construction-in-process: Iridium NEXT systems under construction 658,395 2,088,380 Other construction-in-process 42,682 20,373 Total property and equipment, net of accumulated depreciation $ 3,370,855 $ 3,210,162 Other construction-in-process consisted of the following: December 31, 2018 2017 (In thousands) Internally developed software $ 27,725 $ 14,782 Equipment 12,841 4,241 Ground system 2,116 1,350 Total other construction-in-process $ 42,682 $ 20,373 Depreciation expense was $216.6 million , $120.7 million and $48.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The increase in depreciation from 2017 to 2018 results primarily from the addition of Iridium NEXT satellites placed into service during 2018. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Company had identifiable intangible assets as follows: December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net 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: Intellectual property 20 years 16,439 (7,434 ) 9,005 Assembled workforce 7 years 5,678 (1,622 ) 4,056 Patents 14 - 20 274 (20 ) 254 Total 22,391 (9,076 ) 13,315 Total intangible assets $ 57,616 $ (9,076 ) $ 48,540 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net 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: Intellectual property 20 years 16,439 (6,651 ) 9,788 Assembled workforce 7 years 5,678 (812 ) 4,866 Patents 14 - 20 146 (6 ) 140 Total 22,263 (7,469 ) 14,794 Total intangible assets $ 57,488 $ (7,469 ) $ 50,019 Amortization expense was $1.6 million , $1.6 million and $0.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. See Note 8 for further details on the Boeing assembled workforce, added in 2017. Future amortization expense with respect to intangible assets existing at December 31, 2018 , by year and in the aggregate, was as follows: Year ending December 31, Amount (In thousands) 2019 $ 1,609 2020 1,609 2021 1,609 2022 1,609 2023 1,609 Thereafter 5,270 Total estimated future amortization expense $ 13,315 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Thales Alenia Space In June 2010, the Company executed a primarily fixed-price full-scale development contract ("FSD") with Thales Alenia Space for the design and build of satellites for its Iridium NEXT satellites. The total price under the FSD is approximately $2.3 billion , and the Company expects payment obligations under the FSD to extend into the second quarter of 2019. As of December 31, 2018 , the Company had made aggregate payments of $2.2 billion to Thales Alenia Space, which are capitalized as construction-in-progress within property and equipment, net, in the accompanying consolidated balance sheet, of which $1.5 billion were financed from borrowings under the Credit Facility. On March 9, 2018, the Company and Thales Alenia Space entered into an amendment to the FSD, pursuant to which the Company and Thales Alenia Space unwound the prior changes that allowed for the deferral of certain milestone payments totaling $100.0 million through the issuance of bills of exchange. The March 2018 amendment to the FSD became effective on March 21, 2018, upon the Company's receipt of proceeds from a senior unsecured notes offering (see Note 7 ). The Company utilized a portion of the proceeds from the senior unsecured notes to prepay in full the $59.9 million of amounts due under outstanding bills of exchange, replenish the DSRA under the Credit Facility to $189.0 million , and to pay approximately $44.4 million in Thales Alenia Space milestones previously expected to be satisfied by the issuance of additional bills of exchange. In connection with the prepayment of the Thales Alenia Space bills of exchange, for the year ended December 31, 2018, the Company recorded a $4.0 million loss on extinguishment of debt, included within interest expense, representing premiums paid and the write-off of unamortized debt issuance costs. The Company had no loss on extinguishment of debt recorded for the year ended December 31, 2017. 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 and a reflight option in the event of launch failure is $448.9 million . The SpaceX Falcon 9 rocket was configured to carry ten Iridium NEXT satellites to orbit for each of the initial seven launches. In November 2016, the Company entered into an agreement for an eighth launch with SpaceX to launch five additional satellites and to share the launch services with GFZ German Research Centre for Geosciences (“GFZ”). This launch took place in May 2018. The total price under the SpaceX Agreement for the eighth launch was $61.9 million . GFZ paid the Company $29.8 million to include the launch of NASA’s two Gravity Recovery and Climate Experiment Follow-On satellites. As of December 31, 2018 , the Company had made aggregate payments of $498.9 million to SpaceX, which were capitalized as construction-in-progress within property and equipment, net in the accompanying consolidated balance sheets. The Company expects payments to SpaceX to continue into the first quarter of 2019. Kosmotras In June 2011, the Company entered into an agreement with Kosmotras as a supplemental launch services provider for Iridium NEXT. The original cost under the Kosmotras agreement was $51.8 million . Kosmotras to date has been unable to obtain the permits or authorizations to launch the Company's satellites on a Dnepr rocket as planned, and Kosmotras has proposed no satisfactory alternative launch plan. As a result, the Company wrote-off the full amount previously paid to Kosmotras, by recording accelerated depreciation expense of $36.8 million , in the fourth quarter of 2017. Iridium NEXT Launch and In-Orbit Insurance The Company was required, pursuant to its Credit Facility, to obtain insurance covering the launch and first 12 months of operation of the Iridium NEXT satellites. The launch and in-orbit insurance the Company obtained contains elements, consistent with the terms of the Credit Facility, of self-insurance and deductibles, providing reimbursement only after a specified number of satellite failures. As a result, a failure of one or more of the Company’s satellites, or the occurrence of equipment failures and other related problems, could constitute an uninsured loss or require the payment of additional premiums and could harm the Company’s financial condition. Furthermore, launch and in-orbit insurance does not cover lost revenue. The total premium for the company's current launch and in-orbit insurance is $120.7 million , which was paid in full as of December 31, 2018 . Due to various contractual requirements with Motorola, the prior operator of the Company's first-generation satellite constellation, the Company is required to maintain a third-party liability in-orbit insurance policy on its first-generation satellites with a de-orbiting endorsement to cover potential claims relating to operating or de-orbiting the satellite constellation or individual satellites. The current policy has a renewable one-year term, which is scheduled to expire on December 8, 2019. 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 first-generation 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 and for the de-orbit of individual 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, 2018 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 and covers risks in connection with a mass decommissioning of the first-generation satellites. Liability limits for claims under Section C are $500 million and $1.0 billion per occurrence and in the aggregate, respectively. As of December 31, 2018 , the Company had not requested Section C coverage since no mass decommissioning activities are currently anticipated. The deductible for claims under Section C is $250,000 per occurrence. Unconditional Purchase Obligations The Company has a manufacturing agreement with Benchmark. 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. Benchmark 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, 2018 and 2017 , the Company had $2.5 million and $4.0 million , respectively, of such materials, and the amounts were included in inventory on the accompanying consolidated balance sheets. As of December 31, 2018 , the aggregate unconditional purchase obligations were $39.1 million , which includes the Company’s commitments with Boeing and Benchmark as well as $7.2 million of open purchase orders executed with other vendors. The Boeing obligations (see Note 8 ) represent the take-or-pay commitment with the execution of the Development Services Agreement (“DSA”). The Company's obligation to Benchmark for the year ending December 31, 2019 is $13.9 million . Operating Leases The Company leases land, office space, and office and computer equipment under noncancelable operating lease agreements. The Company adopted ASC 842, the new lease accounting standard, effective January 1, 2019 (see Note 2 ). 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 2030 . 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. Future minimum lease payments, by year and in the aggregate, under noncancelable operating leases at December 31, 2018 , are as follows: Year ending December 31, Operating Leases (In thousands) 2019 $ 3,692 2020 3,734 2021 3,827 2022 3,402 2023 3,359 Thereafter 12,926 Total $ 30,940 Rent expense for the years ended December 31, 2018 , 2017 and 2016 was $3.3 million , $3.2 million and $3.1 million , respectively. Contingencies From time to time, in the normal course of business, the Company is party to various pending legal claims and lawsuits. The Company is not aware of any actions that it expects to have a material adverse impact on its business, financial results or financial condition. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility In October 2010, the Company entered into its $1.8 billion Credit Facility with a syndicate of bank lenders, which was amended and restated most recently on March 9, 2018. As of December 31, 2018, the Company reported an aggregate total of $1,684.9 million in borrowings, including $80.1 million of unamortized deferred financing costs, for a net balance of $1,604.8 million in borrowings from the Credit Facility in the accompanying consolidated balance sheet. Ninety-five percent of the Company's obligations under the Credit Facility are insured by BPIAE. Scheduled semi-annual principal repayments began on April 3, 2018, and are scheduled to be paid each March 30 and September 30. As amended and restated, the Credit Facility (i) allowed the Company to issue $360.0 million in senior unsecured notes, (ii) delayed a portion of the principal repayments scheduled under the Credit Facility for 2018, 2019 and 2020 into 2023 and 2024 pursuant to an amended repayment installment schedule, (iii) allowed the Company to access up to $87.0 million from the DSRA in the future if its projected cash level falls below $75.0 million , and (iv) adjusted the Company’s financial covenants, including eliminating covenants that required the Company to receive cash flows from hosted payloads and adding a covenant that requires the Company to receive $200.0 million in hosting fees from Aireon LLC, the Company's primary hosted payload customer, by December 2023. In the event that (a) the Company's cash balance exceeds $140.0 million after September 30, 2019 (subject to specified exceptions) or (b) the Company receives hosting fees from Aireon, the Company would be required pursuant to the Credit Facility to use 50% of such excess cash and up to $200.0 million of hosting fees to prepay the Credit Facility. In addition, if any of the Company's senior unsecured notes remain outstanding on October 15, 2022, which is six months prior to the scheduled maturity thereof, the maturity of all amounts remaining outstanding under the Credit Facility would be accelerated from September 30, 2024 to October 15, 2022. Lender fees incurred related to the amended and restated Credit Facility were $10.3 million , which were capitalized as deferred financing costs and are being amortized over the remaining term. Pursuant to the amended and restated Credit Facility, the Company is required to use proceeds received from Aireon related to hosting fees to prepay the principal. As such, for the year ended December 31, 2018, the Company extinguished principal of $43.1 million , resulting in a $3.3 million loss on extinguishment of debt recorded within interest expense, representing premiums paid and the write-off of unamortized debt issuance costs. There were no prepayments or related interest expense during the year ended December 31, 2017. During the repayment period, interest is paid on the same date as the principal repayments. The effective interest rate on outstanding principal of the Credit Facility was 6.6% during each of the years ended December 31, 2018, 2017 and 2016. Under the terms of the Credit Facility, as of December 31, 2018, the Company is required to maintain a minimum cash reserve within the DSRA of $189.0 million , which is classified as restricted cash and cash equivalents on the accompanying consolidated balance sheet. The Credit Facility is scheduled to mature in September 2024, subject to acceleration as described below. As of December 31, 2018, the DSRA balance was $191.9 million , which is classified as restricted cash and cash equivalents in our condensed consolidated balance sheet. This amount includes a minimum cash reserve for debt service related to the Credit Facility as well as the interest earned on these amounts. In addition to the minimum debt service levels, financial covenants under the Credit Facility, as amended to date, 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; • a debt service coverage ratio of not less than 1.5 to 1, measured each June 30 and December 31 through the year ending December 31, 2020, not less than 1.25 to 1 for June 30 and December 31, 2021, and not less than 1.5 to 1, for each June 30 and December 31 thereafter through 2024; • specified maximum leverage levels that decline from a ratio of 8.24 to 1 for the year ended December 31, 2018 to a ratio of 2.00 to 1 for the year ending December 31, 2024; and • a requirement that we receive at least $200.0 million in hosting fees from Aireon by December 31, 2023. The Company's available cash balance, as defined by the Credit Facility, was $273.4 million as of December 31, 2018. The Company's debt-to-equity ratio was 0.53 to 1 as of December 31, 2018. The Company's debt service coverage ratio was 3.4 to 1 as of December 31, 2018, and the Company's leverage was 5.9 to 1 for the year ended December 31, 2018. The Company was also in compliance with the annual capital expenditures covenant as of December 31, 2018. The covenant regarding capital expenditures is 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 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, 2018 , the Company had an available cure amount of $62.5 million , although it was not necessary to apply any available cure amount 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, 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 it has pledged under the Credit Facility, which include substantially all of the Company's assets and those of its domestic subsidiaries. Senior Unsecured Notes On March 21, 2018, the Company issued the Notes which bear interest at 10.25% per annum and mature on April 15, 2023. Interest is payable semi-annually on April 15 and October 15 and principal is repaid in full upon maturity. Interest payments began on October 15, 2018. The proceeds of the Notes were used to prepay the outstanding Thales Alenia Space bills of exchange, including premiums paid, of approximately $59.9 million issued pursuant to the FSD, replenish the DSRA under the Credit Facility to $189.0 million , and to pay approximately $44.4 million in Thales Alenia Space milestones previously expected to be satisfied by the issuance of bills of exchange. The proceeds of the Notes also provided the Company with additional cash to meet its needs, including principal and interest payments under the Credit Facility and interest payments on the Notes. As of December 31, 2018, the Company reported an aggregate of $360.0 million in borrowings under the Notes, before $9.0 million of unamortized deferred financing costs, for a net principal balance of $351.0 million in borrowings in the accompanying consolidated balance sheet. As of December 31, 2018, based upon recent trading prices (Level 2 - market approach), the fair value of the Company's $360.0 million in borrowings under the Notes due in 2022 was $389.7 million . The Notes contain covenant requirements that apply to certain permitted financing actions, but the covenants under the Notes are no more restrictive than the covenants included in the Credit Facility. The Company was in compliance with all covenant requirements under the Notes as of December 31, 2018. Total Debt Total interest incurred during the years ended December 31, 2018, 2017 and 2016 was $142.7 million , $114.4 million and $106.4 million , respectively. Interest incurred includes amortization of deferred financing fees of $26.5 million , $27.3 million and $28.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Interest capitalized during the year ended December 31, 2018 was $76.7 million . During 2017 and 2016, all interest was capitalized. Also during 2016, paid-in-kind interest was $44.4 million with the remainder payable in cash on the scheduled semi-annual payment dates. Interest accrued for the years ended December 31, 2018 and 2017 was $29.4 million and $15.0 million , respectively. Future minimum principal repayments with respect to the Company's debt balances existing at December 31, 2018 by year and in the aggregate, are as follows: Year ending December 31, Amount (In thousands) 2019 $ 126,000 2020 216,000 2021 306,000 2022 666,000 2023 360,000 Thereafter 370,869 Total debt commitments $ 2,044,869 Less: Original issuance discount 89,132 Less: Total short-term debt 126,000 Total long-term debt, net $ 1,829,737 The repayment schedule above excludes the redemption of Iridium's equity interest in Aireon, Aireon dividends (when and if declared) and any hosting fees received from Aireon. The Company must apply 100% of these Aireon receipts toward the prepayment of the Credit Facility, which may result in an earlier repayment. As stated above, if any of the Notes remain outstanding on October 15, 2022, which is six months prior to the scheduled maturity thereof, the maturity of all amounts remaining outstanding under the Credit Facility would be accelerated from September 30, 2024 to October 15, 2022. As such, the Company assumes full principal repayment of the Notes in 2022, prior to October 15, 2022. |
Boeing Operations and Maintenan
Boeing Operations and Maintenance (O&M) Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Boeing Operations And Maintenance Agreements [Abstract] | |
Boeing Operations and Maintenance (O&M) Agreements | Boeing Insourcing Agreement On January 3, 2017, the Company hired the majority of the employees and third-party contractors who were responsible for the operations and maintenance of the Company’s satellite constellation and ground infrastructure pursuant to an Insourcing Agreement with The Boeing Company ("Boeing"). The Company paid Boeing $5.5 million , of which $2.75 million was paid in each of December 2016 and December 2017. As a result, the Company and Boeing terminated their previous Operations and Maintenance Agreement (“O&M Agreement”) and Iridium NEXT Support Service Agreement and entered into a new DSA with a $6.0 million minimum annual commitment through 2021. Boeing no longer has a unilateral right to commence the de-orbit of the Company’s first-generation satellites. The acquisition of this assembled workforce was recorded as a definite-lived intangible asset in January 2017 and is being amortized over an estimated useful life of seven years. Additionally, by terminating the O&M Agreement, the Company recognized a $14.2 million gain in the first quarter of 2017, consisting of (i) the derecognition of a purchase accounting liability created when GHL Acquisition Corp. acquired Iridium Holdings LLC in 2009 related to the fair value of the contractual arrangement with Boeing as of that date, and (ii) the remainder of a credit resulting from a July 2010 Boeing contract amendment. The Company incurred expenses of $28.1 million , $30.5 million and $29.0 million relating to satellite operations and maintenance costs for the years ended December 31, 2018 , 2017 and 2016 , respectively, which include internal costs and amounts paid to Boeing, and are included in cost of services (exclusive of depreciation and amortization) in the consolidated statements of operations and comprehensive income. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May 2017, the Company’s stockholders approved the amendment and restatement of the Company's 2015 Equity Incentive Plan (as so amended and restated, the “Amended 2015 Plan”), primarily to increase the number of shares available under the plan. The Company registered with the SEC an additional 5,199,239 shares of common stock made available for issuance pursuant to the Amended 2015 Plan, bringing the total to 28,402,248 shares registered. Through December 31, 2018, the remaining aggregate number of shares of the Company's common stock available for future grants under the Amended 2015 plan was 8,569,642 . The Amended 2015 Plan provides for the grant of stock-based awards, including nonqualified stock options, incentive stock options, restricted stock, RSUs, stock appreciation rights and other equity securities as incentives and rewards for employees, consultants and non-employee directors of the Company and its affiliated entities. The number of shares of common stock available for issuance under the Amended 2015 Plan is reduced by (i) one share for each share of common stock issued pursuant to an appreciation award, such as a stock option or stock appreciation right with an exercise or strike price of at least 100% of the fair market value of the underlying common stock on the date of grant, and (ii) 1.8 shares for each share of common stock issued pursuant to any stock award that is not an appreciation award, also known as a “full value award.” The Amended 2015 Plan allows the Company to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of its employees, directors and consultants, and to provide long-term incentives that align the interests of its employees, directors and consultants with the interests of the Company’s stockholders. The Company accounts for stock-based compensation at fair value. Stock Option Awards The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. 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 the remainder vesting 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. Fair Value Determination We have used the Black-Scholes-Merton option pricing model to determine fair value of our stock option awards on the date of grant. We will reconsider the use of the Black-Scholes-Merton model if additional information becomes available in the future that indicates another model would be more appropriate or if grants issued in future periods have characteristics that cannot be reasonably estimated under this model. The following weighted-average assumptions were used for option grants during the years ended December 31, 2018, 2017 and 2016: • Volatility - The expected volatility of the options granted was estimated based upon historical volatility of the Company's share price of its common stock through daily observations of its trading history. • Expected life of options - The expected life of options granted to employees was determined from the simplified method. • Risk-free interest rate - The yield on zero-coupon U.S. Treasury strips was used to extrapolate a forward-yield curve. This “term structure” of future interest rates was then input into a numeric model to provide the equivalent risk-free rate to be used in the Black-Scholes-Merton model based on the expected term of the underlying grants. • Dividend yield - The Black-Scholes-Merton valuation model requires an expected dividend yield as an input. The Company does not anticipate paying dividends during the expected term of the grants; therefore, the dividend rate is assumed to be zero. The Company now grants stock options to newly hired and promoted employees only. During 2018 , 2017 and 2016 , the Company granted approximately 364,000 , 209,000 and 249,000 stock options, respectively, with an estimated aggregate grant date fair value of $2.4 million , $0.9 million and $0.9 million , respectively. The following table summarizes weighted-average assumptions used in the Company's calculations of fair value: Year Ended December 31, 2018 2017 2016 Expected volatility 39.53% 41.11% 41.36% Expected term (years) 6.11 6.25 6.25 Expected dividends —% —% —% Risk free interest rate 2.68% 1.92% 1.68% A summary of the activity of the Company’s stock options is as follows: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands, except years and per share data) Options outstanding at December 31, 2015 7,120 $ 7.86 Granted 249 8.13 Cancelled or expired (39 ) 8.92 Exercised (73 ) 7.33 Forfeited (55 ) 7.62 Options outstanding at December 31, 2016 7,202 $ 7.87 5.45 $ 12,473 Granted 209 10.50 Cancelled or expired (2 ) 7.24 Exercised (534 ) 7.93 Forfeited (19 ) 9.13 Options outstanding at December 31, 2017 6,856 $ 7.94 4.63 $ 26,459 Granted 364 15.56 Cancelled or expired (1 ) 8.59 Exercised (1,477 ) 8.42 Forfeited (39 ) 9.97 Options outstanding at December 31, 2018 5,703 $ 8.29 4.38 $ 57,956 Options exercisable at December 31, 2018 5,095 $ 7.72 3.87 $ 54,694 Options exercisable and expected to vest at December 31, 2018 5,687 $ 8.27 4.37 $ 57,891 The Company recognized $1.5 million , $1.8 million and $2.5 million of stock-based compensation expense related to stock options in the years ended December 31, 2018 , 2017 and 2016 , respectively. The weighted-average grant date fair value of options granted during the years ended December 31, 2018 , 2017 and 2016 was $6.63 , $4.51 and $3.47 per share, respectively. The total fair value of the shares vested during the years ended December 31, 2018 , 2017 and 2016 was $1.4 million , $2.0 million and $2.9 million , respectively. As of December 31, 2018 , the total unrecognized cost related to non-vested options was approximately $2.9 million . This cost is expected to be recognized over a weighted-average period of 2.7 years . Restricted Stock Units The RSUs granted to employees for service vest over a four-year period, with 25% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. The RSUs granted to non-employee consultants generally vest 50% on the first anniversary of the grant date and ratably on a quarterly basis through the second anniversary of the grant date. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The Company’s RSUs are generally classified as equity awards because the RSUs will be paid in the Company's common stock upon vesting. The related compensation expense is recognized over the service period and is based on the grant date fair value of the Company's common stock and the number of shares expected to vest. The fair value of the awards is not remeasured at the end of each reporting period. The awards do not carry voting rights until they are vested and released in accordance with the terms of the award. Service-Based Awards The majority of the annual compensation the Company provides to members of its board of directors is paid in the form of RSUs. In addition, certain members of the Company’s board of directors elect to receive the remainder of their annual compensation, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 110,000 , 96,000 and 126,000 service-based RSUs were granted to its directors as a result of these elections during the years ended December 31, 2018, 2017 and 2016, respectively, with an estimated grant date fair value of $1.3 million , $1.0 million and $1.0 million , respectively. During the years ended December 31, 2018 , 2017 and 2016 , the Company granted approximately 900,000 , 964,000 and 573,000 service-based RSUs, respectively, to its employees, with an estimated grant date fair value of $10.7 million , $8.5 million and $4.0 million , respectively. During the years ended December 31, 2018, 2017 and 2016, the Company granted approximately 14,000 , 8,000 and 35,000 service-based RSUs, respectively, to non-employee consultants with an estimated grant date fair value of $0.2 million , $0.1 million and $0.3 million , respectively. Performance-Based Awards In March 2018, 2017 and 2016, the Company awarded approximately 474,000 , 1,190,000 and 1,335,000 performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $5.6 million , $10.5 million and $9.4 million , respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of defined performance goals over the respective fiscal year. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. Management believes it is probable that substantially all of the 2018 Bonus RSUs will vest. The level of achievement, if any, of performance goals will be determined by the compensation committee of the Company’s board of directors and, if such goals are achieved, the 2018 Bonus RSUs will vest, subject to continued employment, in March 2019. A portion of the March 2017 Bonus RSUs vested in March 2018 upon the determination of the level of achievement of the performance goals. Additionally, during 2018, 2017 and 2016, the Company awarded approximately 134,000 , 173,000 and 119,000 performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair values of the Executive RSUs granted in 2018, 2017 and 2016 was $1.6 million , $1.5 million and $0.8 million , respectively. Vesting of the Executive RSUs is and was dependent upon the Company’s achievement of defined performance goals over a two-year period. Management believes it is probable that the Executive RSUs will vest at least in part. The vesting of Executive RSUs will ultimately range from 0% to 150% of the number of shares underlying the Executive RSU grant based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the Executive RSUs will vest on the second anniversary of the grant date and the remaining 50% will vest on the third anniversary of the grant date, in each case, subject to the executive's continued service as of the vesting date. Award Summary A summary of the Company’s activity for outstanding RSUs is as follows: RSUs Weighted- Average Grant Date Fair Value Per RSU (In thousands) Outstanding at December 31, 2015 1,944 $ 7.76 Granted 2,297 $ 7.09 Forfeited (152 ) $ 7.44 Released (766 ) $ 7.36 Outstanding at December 31, 2016 3,323 $ 7.40 Granted 2,431 $ 8.89 Forfeited (203 ) $ 8.42 Released (2,003 ) $ 7.16 Outstanding at December 31, 2017 3,548 $ 8.50 Granted 1,632 $ 11.87 Forfeited (163 ) $ 9.69 Released (1,940 ) $ 8.64 Outstanding at December 31, 2018 3,077 $ 10.13 Vested and unreleased at December 31, 2018 (1) 617 (1) These RSUs were granted to the Company's board of directors as a part of their compensation for board and committee service and had vested but had not yet been issued and released. As of December 31, 2018 , the total unrecognized cost related to non-vested RSUs was approximately $9.5 million . This cost is expected to be recognized over a weighted-average period of 1.32 years . The Company recognized $15.2 million , $17.0 million and $13.5 million of stock-based compensation expense related to RSUs in the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock | 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 were undesignated and unissued as of December 31, 2018 . 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. During the three months ended March 31, 2018, the Company's daily volume-weighted average stock price remained at or above $12.26 per share for a period of 20 out of 30 trading days, thereby allowing for the conversion of the Series A Preferred Stock at the election of the Company. On March 20, 2018, the Company converted all outstanding shares of its Series A Preferred Stock into shares of common stock, resulting in the issuance of 10,599,974 shares of common stock. The Company declared and paid all current and cumulative dividends to holders of record of Series A Preferred Stock as of March 8, 2018. As such, the Company paid cash dividends of $7.0 million to the holders of the Series A Preferred Stock. The Company paid cash dividends of $1.8 million to the holders of the Series A Preferred Stock during the year ended December 31, 2017. Series B Cumulative Perpetual Convertible Preferred Stock In May 2014, the Company issued 500,000 shares of its Series B Cumulative Perpetual Convertible Preferred Stock (the "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. As of December 31, 2018, there were 497,000 shares of Series B Preferred Stock outstanding. 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. 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 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). In connection with the conversion of the Series A Preferred Stock described above, the Company declared and paid all current and cumulative dividends to holders of record of Series B Preferred Stock as of March 8, 2018. The Company paid cash dividends of $8.4 million to holders of the Series B Preferred Stock during the year ended December 31, 2018. In compliance with the Credit Facility, subsequent to the $8.4 million dividend payment, the Company began the planned suspension of dividends to holders of the Series B Preferred Stock for five quarters, beginning with the dividend payment that otherwise would have been paid on June 15, 2018. The Company paid cash dividends of $2.1 million to holders of the Series B Preferred Stock during the year ended December 31, 2017. 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, including (i) a daily volume-weighted average stock price of at least $11.21 per share over a period of 20 trading days in a 30-day period and (ii) the payment of cumulative dividends. 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. Any suspended dividends are required to be paid prior to conversion by the Company. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Effective January 1, 2018, the Company adopted ASU No. 2014-09. Under the new standard, the Company performs the following steps to determine the amount of revenue to be recognized: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard using the modified retrospective method with a cumulative effect adjustment recorded to reduce opening retained earnings by $15.7 million . This method required application of the new guidance at the beginning of the earliest comparative period presented for revenue agreements that were not substantially complete as of the date of adoption. The Company does not disclose the value of unsatisfied performance obligations because the majority of its contracts have expected lengths of one year or less. The Company did not retrospectively restate contracts with modifications prior to the earliest period presented, but instead reflected the aggregate effect of all modifications at transition. The Company derives its revenue primarily as a 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 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. See Note 2 for a description of the Company's accounting policies in connection with each of these types of arrangements. The following table summarizes the Company’s services revenue: Year Ended December 31, 2018 2017 2016 (in thousands) Commercial voice and data services $ 193,176 $ 177,685 $ 177,666 Commercial IoT data services 85,054 74,142 65,523 Hosted payload and other data services 40,527 9,908 3,633 Government services 88,000 88,000 88,000 Total services $ 406,757 $ 349,735 $ 334,822 The following table summarizes the Company’s engineering and support services revenue: Year Ended December 31, 2018 2017 2016 (in thousands) Commercial $ 716 $ 3,109 $ 2,245 Government 17,687 18,083 22,362 Total $ 18,403 $ 21,192 $ 24,607 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $18.0 million and $22.7 million for the years ended December 31, 2018 and 2017, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated prepaid usage period. The contract assets not separately disclosed are as follows: Year Ended December 31, 2018 2017 (in thousands) Contract Assets: Commissions $ 1,010 $ 1,555 Other contract costs $ 3,631 $ 3,753 The primary impact of adopting ASU 2014-09 relates to the Company’s prepaid service revenue and associated breakage. Under the new standard, the Company now estimates the expected revenue that will expire unused on an ongoing basis and recognizes this revenue in a manner consistent with the usage period. Upon adoption, the contract liability (deferred revenue associated with prepaid service revenue) was reduced by approximately $15.7 million as a result of the change to include a breakage estimate over the usage period. Adopting the new standard had an immaterial impact on the Company’s financial statements. The impact of the implementation of the new revenue standard on the Company's condensed consolidated balance sheets, as compared to accounting under prior revenue guidance (Accounting Standards Codification ("ASC") Topic 605), was as follows: December 31, 2018 As reported Adjustment Pro forma under ASC 605 (in thousands) Prepaid expenses and other current assets $ 18,284 $ 527 $ 18,811 Deferred revenue 37,429 19,771 57,200 Deferred revenue, net of current portion 74,656 (2,782 ) 71,874 Other long-term liabilities 4,160 (3,975 ) 185 Retained earnings $ 501,712 $ (12,487 ) $ 489,225 The impact of the implementation of the new standard on the Company's condensed consolidated statements of operations and comprehensive income (loss) was as follows: Year Ended December 31, 2018 As reported Adjustment Pro forma under ASC 605 (in thousands) Service revenue $ 406,757 $ (1,304 ) $ 405,453 Cost of services 86,016 (144 ) 85,872 Loss before income taxes (20,649 ) (1,160 ) (21,809 ) Income tax benefit 7,265 411 7,676 Net loss $ (13,384 ) $ (749 ) $ (14,133 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. and foreign components of income before income taxes are presented below: Year Ended December 31, 2018 2017 2016 (In thousands) U.S. income (loss) $ (22,147 ) $ 120,281 $ 176,448 Foreign income (loss) 1,498 (709 ) 1,717 Total income (loss) before income taxes $ (20,649 ) $ 119,572 $ 178,165 The components of the Company’s income tax provision were as follows: Year Ended December 31, 2018 2017 2016 (In thousands) Current taxes: Federal tax expense $ 17 $ 13 $ 1,206 State tax expense (91 ) 422 978 Foreign tax expense 1,163 863 1,141 Total current tax expense 1,089 1,298 3,325 Deferred taxes: Federal tax expense (benefit) (9,159 ) (110,811 ) 60,295 State tax expense (benefit) 904 (4,851 ) 3,454 Foreign tax expense (benefit) (99 ) 80 59 Total deferred tax expense (benefit) (8,354 ) (115,582 ) 63,808 Total income tax expense (benefit) $ (7,265 ) $ (114,284 ) $ 67,133 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. SAB 118 was effective for reporting periods that include December 22, 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects of the Tax Act and recorded provisional amounts in its December 31, 2017 financial statements including the remeasurement of its deferred tax assets/liabilities for an estimated net tax benefit of $150.9 million , as well as an estimated one time taxable income amount of $2.3 million for the deemed repatriation of certain foreign subsidiary untaxed earnings with an estimated deferred tax asset of $0.8 million associated with foreign taxes deemed paid on those earnings. In the fourth quarter of 2018, the Company completed its accounting for the income tax effects of the Tax Act. No material adjustments were required to the provisional amounts initially recorded. Remeasurement of deferred tax assets/liabilities: In the fourth quarter of 2018, the Company finalized its accounting for the net deferred tax benefit of $150.4 million related to the remeasurement of certain deferred tax assets and liabilities as of December 31, 2017. The Company remeasured those deferred tax assets and liabilities at 21% , because this is the rate at which it expects these items to reverse. Deemed Repatriation of Certain Foreign Subsidiary Earnings : The Tax Act required the Company to increase its 2017 U.S. taxable income for the mandatory deemed repatriation of accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining untaxed earnings. The Company finalized its accounting for this one-time taxable income amount of $3.2 million , with a deferred tax asset associated with foreign taxes deemed paid on those earnings of $0.8 million . In April 2018, Maryland enacted the single sales factor method for apportioning income to the state to be phased in over five years commencing in 2018. This change results in higher future Maryland state income taxes for the Company, increasing its 2018 income tax provision by $7.0 million for the impact on its existing deferred tax assets and liabilities. If the Company's current estimates change in future periods, the impact on the deferred tax assets and liabilities may change correspondingly. 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 this law changes, the Company’s deferred tax expense was reduced by approximately $13.5 million , $10.2 million and $3.0 million for the years ended December 31, 2018, 2017 and 2016 respectively. A reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision is below. Any amounts that do not have a meaningful impact on this reconciliation are not separately disclosed. Year Ended December 31, 2018 2017 2016 (In thousands) Expected tax expense (benefit) at U.S. federal statutory tax rate $ (4,336 ) $ 41,850 $ 62,309 State taxes, net of federal benefit (3,361 ) 5,133 9,757 State tax valuation allowance 10,651 582 (2,710 ) Deferred impact of state tax law changes and elections (6,481 ) (10,217 ) (2,962 ) Tax Act - deferred tax effects — (150,903 ) — Equity-based compensation (3,807 ) (977 ) — Limitation on executive compensation deduction 1,568 26 — Other nondeductible items 298 110 596 Tax credits (2,872 ) (528 ) (442 ) Foreign taxes and other adjustments 1,075 640 585 Total income tax expense (benefit) $ (7,265 ) $ (114,284 ) $ 67,133 The components of deferred tax assets and liabilities are as follows: December 31, 2018 2017 (In thousands) Deferred tax assets Long-term contracts $ 70,518 $ 61,358 Federal, state and foreign net operating loss carryforwards and tax credits 277,678 107,566 Other 20,002 22,680 Total deferred tax assets 368,198 191,604 Valuation allowance (14,174 ) (3,815 ) Net deferred tax assets 354,024 187,789 Deferred tax liabilities Fixed assets, intangibles and research and development expenditures (529,037 ) (403,545 ) Investment in joint venture (57,686 ) (27,796 ) Other (8,357 ) (2,276 ) Total deferred tax liabilities (595,080 ) (433,617 ) Net deferred income tax liabilities $ (241,056 ) $ (245,828 ) Pursuant to ASC 740, the Company nets deferred tax assets and liabilities within the same jurisdiction. As of December 31, 2018, the Company had a net deferred tax asset of $0.4 million that is included in other assets on the balance sheet and a net deferred tax liability of $241.4 million . 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. The Company had deferred tax assets related to cumulative U.S. federal net operating loss carryforwards of approximately $219.6 million and $80.5 million as of December 31, 2018 and 2017, respectively. The pre-2018 U.S. federal net operating loss carryforwards if unutilized, will expire in various amounts from 2031 through 2037 . Pursuant to the Tax Act, the 2018 U.S. federal net operating loss carryforwards do not expire. 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 had deferred tax assets related to the state net operating loss carryforwards of approximately $36.7 million and $10.9 million as of December 31, 2018 and 2017, respectively, that expire from 2025 through 2038 . The Company does not expect to fully utilize all of its state net operating losses within the respective carryforward periods and as such reflects a partial valuation allowance of $11.4 million and $0.7 million as of December 31, 2018 and 2017, respectively, against these deferred tax assets on its consolidated balance sheet. The Company had deferred tax assets related to the foreign net operating loss carryforwards of approximately $0.9 million and $1.3 million as of December 31, 2018 and 2017, respectively, that begin to expire in 2023. The Company does not expect to fully utilize all of its foreign net operating losses within the 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 changes in the Company’s ownership and any limitations imposed by the jurisdictions in which the Company operates. The Company has approximately $8.4 million and $6.1 million of deferred tax assets related to research and development tax credits as of December 31, 2018 and 2017, respectively, that expire in various amounts from 2029 through 2038 . The Company has approximately $5.2 million and $4.7 million of deferred tax assets related to foreign tax credits as of December 31, 2018 and 2017, respectively, that expire in various amounts from 2020 through 2028 . The Company has $3.6 million and $3.8 million of deferred tax assets related to Alternative Minimum Tax credits as of December 31, 2018 and 2017, respectively, which do not expire. Under the Tax Act, the Alternative Minimum Tax credits will convert to refunds if not used as a credit. 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 $1.1 million as of December 31, 2018 , which is unchanged from December 31, 2017. 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 unrecognized tax benefits was $1.1 million and $1.0 million at December 31, 2018 and 2017 , respectively. Any changes in the next twelve months are not anticipated to have a 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, 2018 and 2017 , 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 2010 to 2017 remain subject to examination by tax authorities and the Company’s foreign tax returns from 2011 to 2017 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: 2018 2017 (In thousands) Balance at January 1, $ 1,046 $ 920 Change attributable to tax positions taken in a prior period 50 146 Change attributable to final assessment — (27 ) Change attributable to tax positions taken in the current period 16 10 Decrease attributable to lapse of statute of limitations — (3 ) Balance at December 31, $ 1,112 $ 1,046 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The computations of basic and diluted net income (loss) per share are set forth below: Year Ended December 31, 2018 2017 2016 (In thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders (numerator for basic net income per share) $ (23,533 ) $ 218,420 $ 95,596 Net (income) loss allocated to participating securities — (215 ) (123 ) Numerator for basic net income (loss) per share (23,533 ) 218,205 95,473 Dividends on Series A preferred stock, declared and undeclared — 7,000 7,000 Dividends on Series B preferred stock, declared and undeclared — 8,436 8,436 Numerator for diluted net income (loss) per share $ (23,533 ) $ 233,641 $ 110,909 Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares 108,975 97,934 95,967 Dilutive effect of stock options — 1,558 250 Dilutive effect of Performance RSUs — 1,308 1,328 Dilutive effect of Series A preferred stock — 10,602 10,602 Dilutive effect of Series B preferred stock — 16,728 16,728 Denominator for diluted net income (loss) per share 108,975 128,130 124,875 Net income (loss) per share attributable to common stockholders - basic $ (0.22 ) $ 2.23 $ 1.00 Net income (loss) per share attributable to common stockholders - diluted $ (0.22 ) $ 1.82 $ 0.89 For the year ended December 31, 2018 , 0.7 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied, and options to purchase 0.1 million shares of common stock were not included in the computation of basic and diluted net loss per share, as the effect would be anti-dilutive. Due to the Company’s net loss for the year ended December 31, 2018 , all potential common stock equivalents were anti-dilutive. For the year ended December 31, 2018, 16.7 million as-if converted shares of the Series B Preferred Stock were not included in the computation of diluted net loss per share, as the effect would be anti-dilutive. For the year ended December 31, 2017, 2.1 million unvested service-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.2 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied. For the year ended December 31, 2016 , options to purchase 3.2 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 1.4 million unvested service-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive. For the year ended December 31, 2018 , $6.3 million in cumulative unpaid dividends to holders of the Series B Preferred Stock was not declared or accrued as a result of all cash dividends being suspended in connection with the amendments to the Credit Facility described in Note 7, but such amounts were deducted to arrive at net loss attributable to common stockholders. For the year ended December 31, 2017 , $5.3 million and $6.3 million in cumulative unpaid dividends to holders of the Series A Preferred Stock and Series B Preferred Stock, respectively, were not declared or accrued as a result of all cash dividends being suspended, but such amounts were deducted to arrive at net income attributable to common stockholders. |
Related Party Transaction Discl
Related Party Transaction Disclosure Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Aireon LLC The Iridium NEXT constellation hosts the Aireon system, which will provide a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast ("ADS-B") receivers on the Iridium NEXT satellites. Iridium formed Aireon LLC ("Aireon") in 2011, with subsequent investments from the air navigation service providers ("ANSPs") of Canada, Italy, Denmark, Ireland and the United Kingdom, to develop and market this service. Aireon has contracted to pay Iridium a fee to host the ADS-B receivers on Iridium NEXT, as well as data service fees for the delivery of the air traffic surveillance data over the Iridium NEXT system. Pursuant to agreements with Aireon, Aireon will pay Iridium fees of $200.0 million to host the ADS-B receivers on Iridium NEXT and additional power fees of approximately $2.8 million per year (the "Hosting Agreement"), as well as data services fees of up to approximately $19.8 million per year for the delivery of the air traffic surveillance data over the Iridium NEXT system (the "Data Services Agreement"). The Aireon ADS-B receivers on the Iridium NEXT satellites are activated on an individual basis as the Iridium NEXT satellite begins carrying traffic. At December 31, 2018, the Company had a fully diluted ownership stake in Aireon's holding company, Aireon Holdings LLC, of approximately 35.7% , subject to certain redemption provisions contained in the Aireon Holdings LLC Amended and Restated Limited Liability Company Agreement (the "Aireon Holdings LLC Agreement"). Under the Hosting Agreement, the $200.0 million due is interest-bearing for amounts not paid on time. The Company had previously determined there was not sufficient support that Aireon will be able to make the payments due under the Hosting Agreement. During 2018, the Company and Aireon amended certain terms of the Hosting Agreement. As amended, the Company is scheduled to receive minimum payments corresponding to hosting services rendered. The first payment of $8.1 million was received during the second quarter of 2018. In December 2018, Aireon entered into a credit facility that resulted in settlement of $35.0 million in hosting receivables, paid directly to the Company's Credit Facility lenders by Aireon. Cumulative consideration for the year ended December 31, 2018 was approximately $43.1 million . No similar amounts were settled in previous years under the Hosting Agreement. Aireon continues to be obligated to pay the Company in full the remaining portion of the $200.0 million in hosting fees when Aireon is able to raise funds to do so. As a result of the amendment and an updated financial collectability assessment, as of December 31, 2018, the Company recognized $13.9 million of revenue related to total cumulative hosting services rendered to date. Under the Data Services Agreement, Aireon pays the Company monthly data service payments on a per satellite basis beginning on each satellite's in-service date. The Company recorded data service revenue from Aireon of $9.1 million for the year ended December 31, 2018. Revenues recorded for the year ended December 31, 2017 were immaterial. Under two services agreements, the Company also provides administrative services and support services, including services relating to Aireon's hosted payload operations center to Aireon, which are paid monthly. The Company also subleases office space to Aireon. Aireon receivables due to the Company under all agreements totaled $1.0 million and $0.6 million at December 31, 2018 and 2017, respectively. |
Segments, Significant Customers
Segments, Significant Customers, Supplier and Service Providers and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments, significant customers, supplier and service providers and geographic information | 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 20% , 24% and 25% of the Company’s total revenue in the years ended December 31, 2018 , 2017 and 2016 , respectively, from prime contracts or subcontracts with agencies of the U.S. government. For the years ended December 31, 2018 , 2017 and 2016 , no single commercial customer accounted for more than 10% of the Company’s total revenue. Approximately 34% and 35% of the Company’s accounts receivable balance at December 31, 2018 and 2017 , respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2018 and 2017 , no single commercial customer accounted for more than 10% of the Company’s total accounts receivable balance. The Company contracts for the manufacture of its subscriber equipment primarily from a limited number of manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturer 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. Net property and equipment by geographic area was as follows: December 31, 2018 2017 (In thousands) United States $ 188,203 $ 165,337 Satellites in orbit 2,504,734 926,090 Iridium NEXT systems under construction (United States) 658,395 2,088,380 All others (1) 19,523 30,355 Total $ 3,370,855 $ 3,210,162 (1) No single country in this group represented more than 10% of property and equipment, net. Revenue by geographic area was as follows: Year Ended December 31, 2018 2017 2016 (In thousands) United States $ 276,398 $ 229,741 $ 226,190 Canada 48,511 44,107 42,373 United Kingdom 51,344 46,245 47,135 Other countries (1) 146,755 127,953 117,942 Total $ 523,008 $ 448,046 $ 433,640 (1) No single country in this group 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, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 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’ eligible compensation each pay period. Company-matching contributions to the Plan were $3.0 million , $2.5 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Selected Quarterly Information
Selected Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Information (Unaudited) | Selected Quarterly Information (Unaudited) The following represents the Company’s unaudited quarterly results: Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (In thousands, except per share data) Revenue $ 119,148 $ 134,931 $ 136,764 $ 132,165 Operating income (loss) $ 19,439 $ 16,345 $ 6,011 $ (142 ) Net income (loss) $ 11,472 $ (4,418 ) $ (12,856 ) $ (7,582 ) Net income (loss) per common share - basic $ 0.08 $ (0.06 ) $ (0.13 ) $ (0.09 ) Net income (loss) per common share - diluted $ 0.07 $ (0.06 ) $ (0.13 ) $ (0.09 ) Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (In thousands, except per share data) Revenue $ 104,426 $ 111,604 $ 116,547 $ 115,469 Operating income (loss) (1) $ 55,602 $ 35,742 $ 38,082 $ (13,950 ) Net income (2) $ 37,948 $ 24,778 $ 29,253 $ 141,877 Net income per common share - basic $ 0.35 $ 0.21 $ 0.26 $ 1.40 Net income per common share - diluted $ 0.30 $ 0.20 $ 0.23 $ 1.10 (1) Includes accelerated depreciation of $36.8 million in the fourth quarter of 2017 associated with the write-off of the full amount previously paid to Kosmotras which decreased operating income. Also includes the impact of $14.2 million related to the gain on the transaction with Boeing, effective January 3, 2017. (2) Includes the provisional estimated impact of the Tax Act enacted in December 2017 on the Company's deferred tax assets and liabilities. Immaterial adjustments to these provisional amounts were made in 2018. 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 Polici_2
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation 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 material intercompany transactions and balances have been eliminated. |
Use of Estimates | 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. |
Adopted Accounting Pronouncements | Adopted Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), that supersedes nearly all existing revenue recognition guidance under U.S. GAAP. See Note 11 for more detail on the Company's adoption of ASU 2014-09. |
Recent Accounting Developments Not Yet Adopted | Recent Accounting Developments Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting. The Company is applying the new guidance as of the effective date of January 1, 2019. Reporting organizations are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company established a project team in order to analyze the effect of the standard on its leases by reviewing its current accounting policies to identify potential differences which would result from applying the requirements of the new standard to its leases. The Company will utilize the practical expedient to address all current operating leases for which it is the lessor and the lessee. On January 1, 2019, a lease liability and related right-of-use asset was recognized for operating lease arrangements where the Company is the lessee. |
Fair Value Measurements | 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. 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. All fixed-income securities are included in marketable securities on the accompanying consolidated balance sheets. |
Concentrations of Credit Risk | 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 invested into a money market fund with 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 limits. When the Company holds marketable securities, they 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 | 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 credit facility with Bpifrance Assurance Export S.A.S. ("BPIAE") (as amended to date, the "Credit Facility"). |
Marketable Securities | 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. |
Accounts Receivable | 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. |
Foreign Currencies | 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 (loss). In instances where the financial statements of a foreign entity in a highly inflationary economy are material, they are remeasured as if the functional currency were the reporting currency. In these instances, the financial statements of those entities are remeasured into the reporting currency. A highly inflationary economy is one that has cumulative inflation of approximately 100% or more over a three-year period. |
Deferred Financing Costs | 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. |
Capitalized Interest | Capitalized Interest Interest costs associated with financing the Company’s assets during the construction period of Iridium NEXT have been capitalized. |
Inventory | The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark 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. 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 a third-party manufacturer 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 net realizable value. |
Stock-Based Compensation | 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 probability 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. |
Property and Equipment | The estimated useful lives of the Company’s first-generation satellites reflected the expected use for each satellite. Satellites were depreciated on a straight-line basis through the date they were replaced by next-generation satellites. The Company completed its launches of the next-generation satellites in early 2019. Iridium NEXT satellites will be depreciated on a straight-line basis over their estimated useful life, which is currently 12.5 years . 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. Repairs and maintenance costs are expensed as incurred. Property and Equipment Property and equipment is carried at cost less accumulated depreciation. |
Long-Lived Assets | 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. In June 2011, the Company entered into an agreement with International Space Company Kosmotras ("Kosmotras"), as a supplemental launch services provider for Iridium NEXT. The original cost under the Kosmotras agreement was $51.8 million . Kosmotras to date has been unable to obtain the permits or authorizations to launch the Company's satellites on a Dnepr rocket as planned, and Kosmotras has proposed no satisfactory alternative launch plan. As the Company believed the construction-in-progress associated with the Kosmotras launch services will no longer be used or further developed, the Company wrote-off the full amount previously paid to Kosmotras, by recording accelerated depreciation expense of $36.8 million , in the fourth quarter of 2017. There were no similar write-offs during the years ended December 31, 2018 and 2016. |
Intangible Assets | Intangible Assets The Company’s intangible assets with finite lives 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 evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. |
Revenue Recognition | 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. In addition to the discussion immediately below, see Note 11 for further discussion of the Company's revenue recognition. 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 an arrangement exists, services or equipment are transferred, the transaction price is determined, the arrangement has commercial substance, and collection of consideration is probable. Contracts with multiple performance obligations At times, the Company sells services and equipment through arrangements that bundle equipment, airtime and other services. For these revenue arrangements when the Company sells services and equipment in bundled arrangements and determines that it has separate distinct performance obligations, the Company allocates the bundled contract price among the various performance obligations based on each deliverable’s stand-alone selling price. If the stand-alone selling price is not directly observable, the Company estimates the amount to be allocated for each performance obligation based on observable market transactions or the residual approach. When the Company determines the performance obligations are not distinct, the Company recognizes revenue on a combined basis as the last obligation is satisfied. To the extent the Company's contracts include variable consideration, the transaction price includes both fixed and variable consideration. The variable consideration contained within the Company's contracts with customers may include discounts, credits and other similar items. When a contract includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at the end of each quarter. 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 over the usage 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. On January 1, 2018, upon the adoption of ASU 2014-09, the Company now (i) recognizes revenue from the prepaid services upon the use of the e-voucher or prepaid card by the customer and (ii) estimates the expected revenue that will expire unused on an ongoing basis and recognizes this revenue in a manner consistent with the usage period. Prior to January 1, 2018, revenue from unused prepaid services was recognized upon expiration of the prepaid card. The Company does not offer refunds for unused prepaid services. 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 Air Force Space Command. Under the terms of this 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 Distributed Tactical Communications Services (“DTCS”) services for an unlimited number of DoD and other federal subscribers. The EMSS contract was extended for an additional six months at the annual rate of $88 million per year for the remaining term and now expires in April 2019. 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. 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. Customers do not have rights of return without prior consent 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 fixed-fee contracts is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying its performance obligation. The Company does not include purchases of goods from a third party in its evaluation of costs incurred. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. 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. |
Research and Development | Research and Development Research and development costs are charged to expense in the period in which they are incurred. |
Advertising Costs | Advertising Costs Costs associated with advertising and promotions are expensed as incurred. |
Income Taxes | 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 (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic net income (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) 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, 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 awarded to the board of directors 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 (loss) per share excludes net income attributable to these unvested RSUs from the numerator and excludes the impact of these unvested RSUs from the denominator. |
Significant Accounting Polici_3
Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Stock-Based Compensation | Classification of stock-based compensation by line item on the balance sheet and statement of operations is presented below: Year Ended December 31, 2018 2017 (In thousands) Property and equipment, net $ 1,865 $ 2,326 Inventory 234 280 Prepaid and other current assets 138 132 Cost of subscriber equipment 26 30 Cost of services (exclusive of depreciation and amortization) 3,600 4,366 Research and development 340 349 Selling, general and administrative 10,524 11,211 Total stock-based compensation $ 16,727 $ 18,694 |
Property and Equipment Estimated Useful Lives | Property and equipment is carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful lives: First-generation satellites 15-21 years Next-generation satellites 12.5 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 |
Finite-Lived Intangible Assets Useful Lives | Amortization is calculated using the straight-line method over the following estimated useful lives: Intellectual property 20 years Assembled workforce 7 years Patents 14 - 20 years |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Company's Cash and Cash Equivalents | The following table summarizes the Company’s cash and cash equivalents: December 31, Recurring Fair Value Measurement 2018 2017 (In thousands) Cash and cash equivalents: Cash $ 20,879 $ 24,092 Money market funds 252,473 251,950 Level 2 Commercial paper — 9,831 Level 2 Total cash and cash equivalents $ 273,352 $ 285,873 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: December 31, 2018 2017 (In thousands) Satellite system $ 2,766,627 $ 1,199,794 Ground system 60,656 67,576 Equipment 42,152 35,616 Internally developed software and purchased software 215,252 191,089 Building and leasehold improvements 30,517 32,130 Total depreciable property and equipment 3,115,204 1,526,205 Less: accumulated depreciation (453,463 ) (432,833 ) Total depreciable property and equipment, net of accumulated depreciation 2,661,741 1,093,372 Land 8,037 8,037 Construction-in-process: Iridium NEXT systems under construction 658,395 2,088,380 Other construction-in-process 42,682 20,373 Total property and equipment, net of accumulated depreciation $ 3,370,855 $ 3,210,162 |
Other construction in process | Other construction-in-process consisted of the following: December 31, 2018 2017 (In thousands) Internally developed software $ 27,725 $ 14,782 Equipment 12,841 4,241 Ground system 2,116 1,350 Total other construction-in-process $ 42,682 $ 20,373 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of identifiable intangible assets | The Company had identifiable intangible assets as follows: December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net 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: Intellectual property 20 years 16,439 (7,434 ) 9,005 Assembled workforce 7 years 5,678 (1,622 ) 4,056 Patents 14 - 20 274 (20 ) 254 Total 22,391 (9,076 ) 13,315 Total intangible assets $ 57,616 $ (9,076 ) $ 48,540 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net 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: Intellectual property 20 years 16,439 (6,651 ) 9,788 Assembled workforce 7 years 5,678 (812 ) 4,866 Patents 14 - 20 146 (6 ) 140 Total 22,263 (7,469 ) 14,794 Total intangible assets $ 57,488 $ (7,469 ) $ 50,019 |
Schedule of finite-lived intangible assets, future amortization expense | Future amortization expense with respect to intangible assets existing at December 31, 2018 , by year and in the aggregate, was as follows: Year ending December 31, Amount (In thousands) 2019 $ 1,609 2020 1,609 2021 1,609 2022 1,609 2023 1,609 Thereafter 5,270 Total estimated future amortization expense $ 13,315 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments, by year and in the aggregate, under noncancelable operating leases at December 31, 2018 , are as follows: Year ending December 31, Operating Leases (In thousands) 2019 $ 3,692 2020 3,734 2021 3,827 2022 3,402 2023 3,359 Thereafter 12,926 Total $ 30,940 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of future payments of credit facility | Future minimum principal repayments with respect to the Company's debt balances existing at December 31, 2018 by year and in the aggregate, are as follows: Year ending December 31, Amount (In thousands) 2019 $ 126,000 2020 216,000 2021 306,000 2022 666,000 2023 360,000 Thereafter 370,869 Total debt commitments $ 2,044,869 Less: Original issuance discount 89,132 Less: Total short-term debt 126,000 Total long-term debt, net $ 1,829,737 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The following table summarizes weighted-average assumptions used in the Company's calculations of fair value: Year Ended December 31, 2018 2017 2016 Expected volatility 39.53% 41.11% 41.36% Expected term (years) 6.11 6.25 6.25 Expected dividends —% —% —% Risk free interest rate 2.68% 1.92% 1.68% |
Schedule of Share-based compensation, stock options, activity | A summary of the activity of the Company’s stock options is as follows: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands, except years and per share data) Options outstanding at December 31, 2015 7,120 $ 7.86 Granted 249 8.13 Cancelled or expired (39 ) 8.92 Exercised (73 ) 7.33 Forfeited (55 ) 7.62 Options outstanding at December 31, 2016 7,202 $ 7.87 5.45 $ 12,473 Granted 209 10.50 Cancelled or expired (2 ) 7.24 Exercised (534 ) 7.93 Forfeited (19 ) 9.13 Options outstanding at December 31, 2017 6,856 $ 7.94 4.63 $ 26,459 Granted 364 15.56 Cancelled or expired (1 ) 8.59 Exercised (1,477 ) 8.42 Forfeited (39 ) 9.97 Options outstanding at December 31, 2018 5,703 $ 8.29 4.38 $ 57,956 Options exercisable at December 31, 2018 5,095 $ 7.72 3.87 $ 54,694 Options exercisable and expected to vest at December 31, 2018 5,687 $ 8.27 4.37 $ 57,891 |
Schedule of share-based compensation, restricted stock units award activity | A summary of the Company’s activity for outstanding RSUs is as follows: RSUs Weighted- Average Grant Date Fair Value Per RSU (In thousands) Outstanding at December 31, 2015 1,944 $ 7.76 Granted 2,297 $ 7.09 Forfeited (152 ) $ 7.44 Released (766 ) $ 7.36 Outstanding at December 31, 2016 3,323 $ 7.40 Granted 2,431 $ 8.89 Forfeited (203 ) $ 8.42 Released (2,003 ) $ 7.16 Outstanding at December 31, 2017 3,548 $ 8.50 Granted 1,632 $ 11.87 Forfeited (163 ) $ 9.69 Released (1,940 ) $ 8.64 Outstanding at December 31, 2018 3,077 $ 10.13 Vested and unreleased at December 31, 2018 (1) 617 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s services revenue: Year Ended December 31, 2018 2017 2016 (in thousands) Commercial voice and data services $ 193,176 $ 177,685 $ 177,666 Commercial IoT data services 85,054 74,142 65,523 Hosted payload and other data services 40,527 9,908 3,633 Government services 88,000 88,000 88,000 Total services $ 406,757 $ 349,735 $ 334,822 |
Summary of Company's Engineering and Support Service Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue: Year Ended December 31, 2018 2017 2016 (in thousands) Commercial $ 716 $ 3,109 $ 2,245 Government 17,687 18,083 22,362 Total $ 18,403 $ 21,192 $ 24,607 |
Contract with Customer, Asset and Liability [Table Text Block] | The contract assets not separately disclosed are as follows: Year Ended December 31, 2018 2017 (in thousands) Contract Assets: Commissions $ 1,010 $ 1,555 Other contract costs $ 3,631 $ 3,753 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The impact of the implementation of the new revenue standard on the Company's condensed consolidated balance sheets, as compared to accounting under prior revenue guidance (Accounting Standards Codification ("ASC") Topic 605), was as follows: December 31, 2018 As reported Adjustment Pro forma under ASC 605 (in thousands) Prepaid expenses and other current assets $ 18,284 $ 527 $ 18,811 Deferred revenue 37,429 19,771 57,200 Deferred revenue, net of current portion 74,656 (2,782 ) 71,874 Other long-term liabilities 4,160 (3,975 ) 185 Retained earnings $ 501,712 $ (12,487 ) $ 489,225 The impact of the implementation of the new standard on the Company's condensed consolidated statements of operations and comprehensive income (loss) was as follows: Year Ended December 31, 2018 As reported Adjustment Pro forma under ASC 605 (in thousands) Service revenue $ 406,757 $ (1,304 ) $ 405,453 Cost of services 86,016 (144 ) 85,872 Loss before income taxes (20,649 ) (1,160 ) (21,809 ) Income tax benefit 7,265 411 7,676 Net loss $ (13,384 ) $ (749 ) $ (14,133 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | U.S. and foreign components of income before income taxes are presented below: Year Ended December 31, 2018 2017 2016 (In thousands) U.S. income (loss) $ (22,147 ) $ 120,281 $ 176,448 Foreign income (loss) 1,498 (709 ) 1,717 Total income (loss) before income taxes $ (20,649 ) $ 119,572 $ 178,165 |
Schedule of components of income tax expense (benefit) | The components of the Company’s income tax provision were as follows: Year Ended December 31, 2018 2017 2016 (In thousands) Current taxes: Federal tax expense $ 17 $ 13 $ 1,206 State tax expense (91 ) 422 978 Foreign tax expense 1,163 863 1,141 Total current tax expense 1,089 1,298 3,325 Deferred taxes: Federal tax expense (benefit) (9,159 ) (110,811 ) 60,295 State tax expense (benefit) 904 (4,851 ) 3,454 Foreign tax expense (benefit) (99 ) 80 59 Total deferred tax expense (benefit) (8,354 ) (115,582 ) 63,808 Total income tax expense (benefit) $ (7,265 ) $ (114,284 ) $ 67,133 |
Schedule of effective income tax rate reconciliation | A reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision is below. Any amounts that do not have a meaningful impact on this reconciliation are not separately disclosed. Year Ended December 31, 2018 2017 2016 (In thousands) Expected tax expense (benefit) at U.S. federal statutory tax rate $ (4,336 ) $ 41,850 $ 62,309 State taxes, net of federal benefit (3,361 ) 5,133 9,757 State tax valuation allowance 10,651 582 (2,710 ) Deferred impact of state tax law changes and elections (6,481 ) (10,217 ) (2,962 ) Tax Act - deferred tax effects — (150,903 ) — Equity-based compensation (3,807 ) (977 ) — Limitation on executive compensation deduction 1,568 26 — Other nondeductible items 298 110 596 Tax credits (2,872 ) (528 ) (442 ) Foreign taxes and other adjustments 1,075 640 585 Total income tax expense (benefit) $ (7,265 ) $ (114,284 ) $ 67,133 |
Schedule of deferred tax assets and liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2018 2017 (In thousands) Deferred tax assets Long-term contracts $ 70,518 $ 61,358 Federal, state and foreign net operating loss carryforwards and tax credits 277,678 107,566 Other 20,002 22,680 Total deferred tax assets 368,198 191,604 Valuation allowance (14,174 ) (3,815 ) Net deferred tax assets 354,024 187,789 Deferred tax liabilities Fixed assets, intangibles and research and development expenditures (529,037 ) (403,545 ) Investment in joint venture (57,686 ) (27,796 ) Other (8,357 ) (2,276 ) Total deferred tax liabilities (595,080 ) (433,617 ) Net deferred income tax liabilities $ (241,056 ) $ (245,828 ) |
Summary of income tax contingencies | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits which includes related interest and penalties: 2018 2017 (In thousands) Balance at January 1, $ 1,046 $ 920 Change attributable to tax positions taken in a prior period 50 146 Change attributable to final assessment — (27 ) Change attributable to tax positions taken in the current period 16 10 Decrease attributable to lapse of statute of limitations — (3 ) Balance at December 31, $ 1,112 $ 1,046 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computations of basic and diluted net income per share | The computations of basic and diluted net income (loss) per share are set forth below: Year Ended December 31, 2018 2017 2016 (In thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders (numerator for basic net income per share) $ (23,533 ) $ 218,420 $ 95,596 Net (income) loss allocated to participating securities — (215 ) (123 ) Numerator for basic net income (loss) per share (23,533 ) 218,205 95,473 Dividends on Series A preferred stock, declared and undeclared — 7,000 7,000 Dividends on Series B preferred stock, declared and undeclared — 8,436 8,436 Numerator for diluted net income (loss) per share $ (23,533 ) $ 233,641 $ 110,909 Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares 108,975 97,934 95,967 Dilutive effect of stock options — 1,558 250 Dilutive effect of Performance RSUs — 1,308 1,328 Dilutive effect of Series A preferred stock — 10,602 10,602 Dilutive effect of Series B preferred stock — 16,728 16,728 Denominator for diluted net income (loss) per share 108,975 128,130 124,875 Net income (loss) per share attributable to common stockholders - basic $ (0.22 ) $ 2.23 $ 1.00 Net income (loss) per share attributable to common stockholders - diluted $ (0.22 ) $ 1.82 $ 0.89 |
Segments, Significant Custome_2
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of long lived assets by geographical areas | Net property and equipment by geographic area was as follows: December 31, 2018 2017 (In thousands) United States $ 188,203 $ 165,337 Satellites in orbit 2,504,734 926,090 Iridium NEXT systems under construction (United States) 658,395 2,088,380 All others (1) 19,523 30,355 Total $ 3,370,855 $ 3,210,162 (1) No single country in this group represented more than 10% of property and equipment, net. |
Revenue from external customers by geographic areas | Revenue by geographic area was as follows: Year Ended December 31, 2018 2017 2016 (In thousands) United States $ 276,398 $ 229,741 $ 226,190 Canada 48,511 44,107 42,373 United Kingdom 51,344 46,245 47,135 Other countries (1) 146,755 127,953 117,942 Total $ 523,008 $ 448,046 $ 433,640 (1) No single country in this group represented more than 10% of revenue. |
Selected Quarterly Informatio_2
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information (unaudited) | The following represents the Company’s unaudited quarterly results: Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (In thousands, except per share data) Revenue $ 119,148 $ 134,931 $ 136,764 $ 132,165 Operating income (loss) $ 19,439 $ 16,345 $ 6,011 $ (142 ) Net income (loss) $ 11,472 $ (4,418 ) $ (12,856 ) $ (7,582 ) Net income (loss) per common share - basic $ 0.08 $ (0.06 ) $ (0.13 ) $ (0.09 ) Net income (loss) per common share - diluted $ 0.07 $ (0.06 ) $ (0.13 ) $ (0.09 ) Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (In thousands, except per share data) Revenue $ 104,426 $ 111,604 $ 116,547 $ 115,469 Operating income (loss) (1) $ 55,602 $ 35,742 $ 38,082 $ (13,950 ) Net income (2) $ 37,948 $ 24,778 $ 29,253 $ 141,877 Net income per common share - basic $ 0.35 $ 0.21 $ 0.26 $ 1.40 Net income per common share - diluted $ 0.30 $ 0.20 $ 0.23 $ 1.10 (1) Includes accelerated depreciation of $36.8 million in the fourth quarter of 2017 associated with the write-off of the full amount previously paid to Kosmotras which decreased operating income. Also includes the impact of $14.2 million related to the gain on the transaction with Boeing, effective January 3, 2017. (2) Includes the provisional estimated impact of the Tax Act enacted in December 2017 on the Company's deferred tax assets and liabilities. Immaterial adjustments to these provisional amounts were made in 2018. |
Significant Accounting Polici_4
Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Jan. 01, 2018 | Jun. 30, 2011 |
Accounting Policies [Line Items] | ||||||||
Reduction of deferred revenue | $ (38,390,000) | $ (37,429,000) | $ (38,390,000) | |||||
Line of credit facility, maximum borrowing capacity | 1,800,000,000 | |||||||
Realized gains or losses on the sale of marketable securities | 0 | 0 | ||||||
Deferred financing costs | 80,100,000 | |||||||
Interest Costs Capitalized | 76,700,000 | 114,400,000 | $ 106,400,000 | |||||
Provision for obsolete inventory | 343,000 | 361,000 | 1,053,000 | |||||
Depreciation | 216,600,000 | 120,700,000 | 48,600,000 | |||||
Goodwill | 0 | 0 | ||||||
Advertising expense | $ 400,000 | 300,000 | $ 500,000 | |||||
Next-generation Satellites | ||||||||
Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 12 years 6 months | |||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
ASC 842 Transition Impact to Right of Use Asset and Liability | $ 30,400,000 | |||||||
Kosmotras | ||||||||
Accounting Policies [Line Items] | ||||||||
Purchase obligation amount for single launch | $ 51,800,000 | |||||||
Kosmotras | ||||||||
Accounting Policies [Line Items] | ||||||||
Depreciation | 36,800,000 | |||||||
Scenario, Forecast [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
US government contract, minimum payments receivable per year | $ 88,000,000 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Reduction of deferred revenue | $ (19,771,000) | $ (15,700,000) | ||||||
Revolving Credit Facility [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Deferred financing costs | 97,200,000 | 80,100,000 | 97,200,000 | |||||
Senior Notes [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Deferred financing costs | $ 0 | $ 9,000,000 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies and Basis of Presentation - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Property and equipment, net | $ 1,865 | $ 2,326 |
Inventory | 234 | 280 |
Share-Based Compensation, Prepaid and Other Assets | 138 | 132 |
Cost of subscriber equipment | 26 | 30 |
Cost of services (exclusive of depreciation and amortization) | 3,600 | 4,366 |
Research and development | 340 | 349 |
Selling, general and administrative | 10,524 | 11,211 |
Total stock-based compensation | $ 16,727 | $ 18,694 |
Significant Accounting Polici_6
Significant Accounting Policies and Basis of Presentation - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
First-generation satellites | Minimum | |
Property, plant and equipment, useful life | 15 years |
First-generation satellites | Maximum | |
Property, plant and equipment, useful life | 21 years |
Next-generation satellites | |
Property, plant and equipment, useful life | 12 years 6 months |
Ground system | Minimum | |
Property, plant and equipment, useful life | 5 years |
Ground system | Maximum | |
Property, plant and equipment, useful life | 7 years |
Equipment | Minimum | |
Property, plant and equipment, useful life | 3 years |
Equipment | Maximum | |
Property, plant and equipment, useful life | 5 years |
Internally developed software and purchased software | Minimum | |
Property, plant and equipment, useful life | 3 years |
Internally developed software and purchased software | Maximum | |
Property, plant and equipment, useful life | 7 years |
Building | |
Property, plant and equipment, useful life | 39 years |
Building improvements | Minimum | |
Property, plant and equipment, useful life | 5 years |
Building improvements | Maximum | |
Property, plant and equipment, useful life | 39 years |
Significant Accounting Polici_7
Significant Accounting Policies and Basis of Presentation - Finite Lived Intangible Assets Useful Lives (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 20 years | 20 years |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 7 years | 7 years |
Minimum | Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 14 years | 14 years |
Maximum | Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 20 years | 20 years |
- Cash and Cash Equivalents (De
- Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 20,879 | $ 24,092 |
Total cash and cash equivalents | 273,352 | 285,873 |
Restricted cash and cash equivalents | 191,935 | 102,384 |
Fair Value, Inputs, Level 2 | ||
Cash and Cash Equivalents [Line Items] | ||
Money market funds | 252,473 | 251,950 |
Commercial paper | $ 0 | $ 9,831 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Marketable Securities - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Mature within one year - Fair value | $ 11,500 | |
Total - Fair Value - Marketable Securities | $ 0 | 11,800 |
Available For Sale Securities Debt Maturities After One Through Three Years Fair Value | $ 300 |
Property and Equipment - Summar
Property and Equipment - Summary of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Satellite system | $ 2,766,627 | $ 1,199,794 |
Ground system | 60,656 | 67,576 |
Equipment | 42,152 | 35,616 |
Internally developed software and purchased software | 215,252 | 191,089 |
Building and leasehold improvements | 30,517 | 32,130 |
Property and equipment gross excluding construction in process and land | 3,115,204 | 1,526,205 |
Less: accumulated depreciation | (453,463) | (432,833) |
Property and equipment net excluding construction in process and land | 2,661,741 | 1,093,372 |
Land | 8,037 | 8,037 |
Construction in process: | ||
Iridium NEXT systems under construction | 658,395 | 2,088,380 |
Total other construction-in-process | 42,682 | 20,373 |
Total property and equipment, net of accumulated depreciation | $ 3,370,855 | $ 3,210,162 |
Property and Equipment - Constr
Property and Equipment - Construction in Process (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Internally developed software | $ 27,725 | $ 14,782 |
Equipment | 12,841 | 4,241 |
Ground system | 2,116 | 1,350 |
Total other construction-in-process | $ 42,682 | $ 20,373 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 216.6 | $ 120.7 | $ 48.6 | |
Kosmotras | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 36.8 |
Intangible Assets - Indentifiab
Intangible Assets - Indentifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite life intangible assets: | ||
Net Carrying Value | $ 35,225 | $ 35,225 |
Definite life intangible assets: | ||
Gross Carrying Value | 22,391 | 22,263 |
Accumulated Amortization | (9,076) | (7,469) |
Net Carrying Value | 13,315 | 14,794 |
Gross Carrying Value | 57,616 | 57,488 |
Accumulated Amortization | (9,076) | (7,469) |
Total intangible assets, Net Carrying Value | $ 48,540 | $ 50,019 |
Intellectual Property | ||
Definite life intangible assets: | ||
Useful Life (years) | 20 years | 20 years |
Gross Carrying Value | $ 16,439 | $ 16,439 |
Accumulated Amortization | (7,434) | (6,651) |
Net Carrying Value | $ 9,005 | $ 9,788 |
Assembled workforce | ||
Definite life intangible assets: | ||
Useful Life (years) | 7 years | 7 years |
Gross Carrying Value | $ 5,678 | $ 5,678 |
Accumulated Amortization | (1,622) | (812) |
Net Carrying Value | 4,056 | 4,866 |
Patents | ||
Definite life intangible assets: | ||
Gross Carrying Value | 274 | 146 |
Accumulated Amortization | (20) | (6) |
Net Carrying Value | 254 | 140 |
Trade names | ||
Indefinite life intangible assets: | ||
Net Carrying Value | 21,195 | 21,195 |
Spectrum and licensing | ||
Indefinite life intangible assets: | ||
Net Carrying Value | $ 14,030 | $ 14,030 |
Minimum | Patents | ||
Definite life intangible assets: | ||
Useful Life (years) | 14 years | 14 years |
Maximum | Patents | ||
Definite life intangible assets: | ||
Useful Life (years) | 20 years | 20 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1.6 | $ 1.6 | $ 0.8 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 1,609 | |
2,020 | 1,609 | |
2,021 | 1,609 | |
2,022 | 1,609 | |
2,023 | 1,609 | |
Thereafter | 5,270 | |
Net Carrying Value | $ 13,315 | $ 14,794 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Mar. 21, 2018USD ($) | Nov. 30, 2016USD ($)Satellite | Jun. 30, 2010USD ($) | Mar. 31, 2010USD ($)Launch | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Satellite | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 26, 2017USD ($) | Jun. 30, 2011USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Debt Instrument, Milestone Payment | $ (59,936,000) | $ 0 | $ 0 | |||||||
Minimum Required Cash Reserve Balance For Credit Facility | 25,000,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | 7,292,000 | 0 | 0 | |||||||
Depreciation | 216,600,000 | 120,700,000 | 48,600,000 | |||||||
Recorded unconditional purchase obligation | 39,100,000 | |||||||||
Purchase obligation | $ 13,900,000 | |||||||||
Lease extended period | through 2,030 | |||||||||
Operating leases, rent expense | $ 3,300,000 | 3,200,000 | $ 3,100,000 | |||||||
Open Purchase Orders with Other Vendors | $ 7,200,000 | |||||||||
Minimum | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Operating lease agreements renewal term | 1 year | |||||||||
Maximum | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Operating lease agreements renewal term | 10 years | |||||||||
Section A | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance policy liability limit per occurrence | $ 1,000,000,000 | |||||||||
Section B | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance policy liability limit per occurrence | 500,000,000 | |||||||||
Insurance policy liability limit aggregate | 1,000,000,000 | |||||||||
Deductible for claims | 250,000 | |||||||||
Section C | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance policy liability limit per occurrence | 500,000,000 | |||||||||
Insurance policy liability limit aggregate | 1,000,000,000 | |||||||||
Deductible for claims | 250,000 | |||||||||
Eighth launch with spaceX | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Number of satellites to launch | Satellite | 5 | |||||||||
Unconditional purchase obligations | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Other inventory, materials, supplies and merchandise under consignment, gross | $ 4,000,000 | 2,500,000 | $ 4,000,000 | |||||||
Space vehicle | Section B | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance policy liability limit aggregate | 500,000,000 | |||||||||
Thales Alenia Space France [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Commitments price for design and build of satellites | $ 2,300,000,000 | |||||||||
Contract aggregate payment | 2,200,000,000 | |||||||||
Borrowings under credit facility | 1,500,000,000 | |||||||||
Space exploration technologies corp | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Contract aggregate payment | $ 498,900,000 | |||||||||
Space exploration technologies corp | One to seven launch with spaceX | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Number of launches for agreement | Launch | 7 | |||||||||
Maximum commitments amount | $ 448,900,000 | |||||||||
Space exploration technologies corp | SpaceX falcon 9 rocket | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Number of satellites carried to orbit for each of initial seven launches | Satellite | 10 | |||||||||
Space exploration technologies corp | Eighth launch with spaceX | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Commitments price for launching of satellites | $ 61,900,000 | |||||||||
Space exploration technologies corp | GFZ german research centre for geosciences | Eighth launch with spaceX | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Payment due from related party to share the launch services | $ 29,800,000 | |||||||||
Space exploration technologies corp | GFZ german research centre for geosciences | Gravity recovery and climate experiment follow-on satellites | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Number of satellites to launch | Satellite | 2 | |||||||||
Kosmotras | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Purchase obligation amount for single launch | $ 51,800,000 | |||||||||
Iridium next launch and in-orbit insurance | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Insurance coverage period | 12 months | |||||||||
Insurance policy premium | $ 120,700,000 | |||||||||
Bills Of Exchange [Member] | Thales Alenia Space France [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | |||||||||
Debt Instrument, Milestone Payment | $ 59,900,000 | |||||||||
Forecasted Milestone Payments Financed by Senior Notes | 44,400,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | $ 4,000,000 | |||||||||
Line of Credit [Member] | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Minimum Required Cash Reserve Balance For Credit Facility | 189,000,000 | |||||||||
Debt Issuance Costs, Net | $ 10,300,000 | |||||||||
Kosmotras | ||||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||||
Depreciation | $ 36,800,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Year ending December 31, | |
2,019 | $ 3,692 |
2,020 | 3,734 |
2,021 | 3,827 |
2,022 | 3,402 |
2,023 | 3,359 |
Thereafter | 12,926 |
Total | $ 30,940 |
Debt Narrative (Details)
Debt Narrative (Details) $ in Thousands | Mar. 21, 2018USD ($) | Oct. 04, 2010 | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2020 | Dec. 31, 2024 | Dec. 31, 2023USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Interest Costs Incurred | $ 142,700 | $ 114,400 | $ 106,400 | |||||||
Percentage of company obligations insured | 95.00% | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,800,000 | |||||||||
Minimum required cash reserve balance for credit facility | 25,000 | |||||||||
Restricted cash and cash equivalents | 191,935 | 102,384 | ||||||||
Proceeds from lines of credit | 0 | 22,207 | $ 251,498 | |||||||
Interest payable | $ 29,400 | $ 15,000 | ||||||||
Effective interest rate | 6.60% | 6.60% | 6.60% | |||||||
Minimum Required Cash Reserve to be Held in Debt Service Reserve Account | $ 189,000 | |||||||||
Maximum debt to equity ratio | 0.7 | |||||||||
Debt service coverage ratio | 66.67% | |||||||||
Leverage decline ratio | 824.00% | |||||||||
Available cash balance as defined under line of credit | $ 273,400 | |||||||||
Debt to equity ratio | 0.53 | |||||||||
Debt Instrument, Debt Service Coverage Ratio | 3.4 | |||||||||
Debt Instrument, Leverage Ratio | 5.9 | |||||||||
Available cure balance | $ 62,500 | |||||||||
Credit Facility Carrying Amount | 1,684,900 | |||||||||
Debt Issuance Costs, Noncurrent, Net | 80,100 | |||||||||
Long-term Line of Credit | 1,604,800 | |||||||||
Gain (Loss) on Extinguishment of Debt | 7,292 | $ 0 | $ 0 | |||||||
Interest Costs Capitalized | 76,700 | 114,400 | $ 106,400 | |||||||
Scenario, Forecast [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Credit Facility, Debt Service Coverage Ratio Requirements by Period | 1.25 | 1.5 | 1.5 | |||||||
Leverage decline ratio | 200.00% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Issuance Costs, Noncurrent, Net | $ 80,100 | 97,200 | ||||||||
Syndicate Of Bank Lenders Credit Facility | Scenario, Forecast [Member] | Maximum | Aireon LLC | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Hosting fees required | $ 200,000 | |||||||||
Series B preferred stock | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Preferred stock, dividend rate, percentage | 6.75% | |||||||||
Senior Notes [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 10.25% | |||||||||
Debt Issuance Costs, Noncurrent, Net | $ 9,000 | $ 0 | ||||||||
Debt Instrument, Face Amount | $ 360,000 | 360,000 | ||||||||
Senior Unsecured Notes - Fair Market Value | 389,700 | |||||||||
Debt Issuance Costs, Net | 9,000 | |||||||||
Line of Credit [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Percentage of Proceeds Payable to Credit Facility Upon Redemption of Related Party Equity Interest | 100.00% | |||||||||
Minimum required cash reserve balance for credit facility | 189,000 | |||||||||
Delayed contributions to cash reserve account for debt repayment | 87,000 | |||||||||
Restricted cash | $ 75,000 | |||||||||
Debt Instrument, Period of Credit Facility Maturity Acceleration | 6 months | |||||||||
Debt Issuance Costs, Net | $ 10,300 | |||||||||
Line of Credit Facility, Periodic Payment, Principal | 43,100 | |||||||||
Line of Credit [Member] | Aireon LLC | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Hosting Fees Required to be Used for Repayment of Credit Facility if Certain Terms Are Met | 200,000 | |||||||||
Cash and Cash Equivalents Balance Required for Company for Repayment of Credit Facility with Hosting Fees | $ 140,000 | |||||||||
Percent of Excess Cash Received from Hosting Fees Required to be Used to Pay Credit Facility | 50.00% | |||||||||
Gain (Loss) on Extinguishment of Debt | $ 3,300 |
Debt Future Payments (Details)
Debt Future Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 126,000 |
2,020 | 216,000 |
2,021 | 306,000 |
2,022 | 666,000 |
2,023 | 360,000 |
Thereafter | 370,869 |
Total | 2,044,869 |
Original issuance discount | 89,132 |
Total short-term debt | 126,000 |
Original issuance discount | $ 1,829,737 |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - USD ($) $ in Thousands | Mar. 21, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 26, 2017 |
Debt Instrument [Line Items] | |||||
Total Debt - Amortization of Deferred Financing Costs | $ 26,500 | $ 27,300 | $ 28,700 | ||
Debt Instrument, Milestone Payment | (59,936) | 0 | $ 0 | ||
Senior Notes, Noncurrent | 350,998 | $ 0 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 10.25% | ||||
Senior Unsecured Notes - Fair Market Value | 389,700 | ||||
Debt Issuance Costs, Net | 9,000 | ||||
Debt Instrument, Face Amount | $ 360,000 | $ 360,000 | |||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | 10,300 | ||||
Use of Notes Offering Proceeds to Fund Debt Service Reserve Account | 189,000 | ||||
Thales Alenia Space France [Member] | Bills Of Exchange [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Milestone Payment | 59,900 | ||||
Forecasted Milestone Payments Financed by Senior Notes | $ 44,400 | ||||
Debt Instrument, Face Amount | $ 100,000 |
Boeing Operations and Mainten_2
Boeing Operations and Maintenance (O&M) Agreements Narrative (Details) - USD ($) $ in Thousands | Nov. 28, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 03, 2017 |
Boeing Operations And Maintenance Agreements [Line Items] | |||||||
Satellite operations and maintenance costs | $ 28,100 | $ 30,500 | $ 29,000 | ||||
Gain from derecognition of purchase accounting liability | $ 0 | $ 14,189 | $ 0 | ||||
Insourcing agreement | Boeing | |||||||
Boeing Operations And Maintenance Agreements [Line Items] | |||||||
Obligation costs associated with hiring of employees | $ 5,500 | ||||||
Development services agreement | Boeing | |||||||
Boeing Operations And Maintenance Agreements [Line Items] | |||||||
Annual commitment amount | $ 6,000 | ||||||
Boeing | Insourcing agreement | |||||||
Boeing Operations And Maintenance Agreements [Line Items] | |||||||
Agreed Costs Paid Associated With Hiring of Employees | $ 2,750 | $ 2,750 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional shares authorized under plan | 5,199,239 | ||||||
Total number of shares authorized under plan | 28,402,248 | ||||||
Number of shares available for future grant | 8,569,642 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||||
Share-Based Compensation Award, Reduction in Shares Available for Issuance by Shares Issued Pursuant to Any Stock Award that is not an Appreciation Award | 1.8 | ||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 364,000 | 209,000 | 249,000 | ||||
Allocated share-based compensation expense | $ 1.5 | $ 1.8 | $ 2.5 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 6.63 | $ 4.51 | $ 3.47 | ||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 1.4 | $ 2 | $ 2.9 | ||||
Performance RSUs expected to vest (in shares) | 5,687,000 | ||||||
Restricted Stock or Unit Expense | $ 15.2 | $ 17 | $ 13.5 | ||||
Restricted stock units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, total | $ 9.5 | ||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 3 months 27 days | ||||||
Employee stock option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, total | $ 2.9 | ||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 8 months 8 days | ||||||
Service based R S U | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, restricted stock units | 900,000 | 964,000 | 573,000 | ||||
Fair value of restricted stock units | $ 10.7 | $ 8.5 | $ 4 | ||||
Employee | Restricted stock units (RSUs) | Percent vested after first year of service | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly vesting percentage after first year anniversary | 25.00% | ||||||
Employee | Restricted stock units (RSUs) | Percent vesting quarterly after first year of service | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly vesting percentage after first year anniversary | 6.25% | ||||||
Employee | Employee stock option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, terms of award | ten years | ||||||
Share-based compensation vesting period | 4 years | ||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 364,000 | 209,000 | 249,000 | ||||
Grant date fair value of stock options | $ 2.4 | $ 0.9 | $ 0.9 | ||||
Employee | Employee stock option | Percent vested after first year of service | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly vesting percentage after first year anniversary | 25.00% | ||||||
Employee | Employee stock option | Percent vesting quarterly after first year of service | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly vesting percentage after first year anniversary | 6.25% | ||||||
Non employee consultants | Restricted stock units (RSUs) | Percent vesting quarterly after first year of service | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly vesting percentage after first year anniversary | 12.50% | ||||||
Non employee consultants | Service based R S U | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, restricted stock units | 14,000 | 8,000 | 35,000 | ||||
Fair value of restricted stock units | $ 0.2 | $ 0.1 | $ 0.3 | ||||
Non employee consultants | Service based R S U | Vesting on the First Anniversary of Grant Date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights percentage | 50.00% | ||||||
Executives and Employees | Performance Based Bonus R S U | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, restricted stock units | 474,000 | 1,190,000 | 1,335,000 | ||||
Fair value of restricted stock units | $ 5.6 | $ 10.5 | $ 9.4 | ||||
Employee Executives | Performance Based Bonus R S U | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, restricted stock units | 134,000 | 173,000 | 119,000 | ||||
Fair value of restricted stock units | $ 1.6 | $ 1.5 | $ 0.8 | ||||
Employee Executives | Performance Shares | Vesting in march in year after performance period end | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights percentage | 50.00% | ||||||
Employee Executives | Performance Shares | Vesting in march of third year after grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights percentage | 50.00% | ||||||
Employee Executives | Performance Shares | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights percentage | 0.00% | ||||||
Employee Executives | Performance Shares | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights percentage | 150.00% | ||||||
Board of directors chairman | Service based R S U | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, restricted stock units | 110,000 | 96,000 | 126,000 | ||||
Fair value of restricted stock units | $ 1.3 | $ 1 | $ 1 |
Stock-Based Compensation Fair V
Stock-Based Compensation Fair Value Of Options Granted (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 39.53% | 41.11% | 41.36% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.68% | 1.92% | 1.68% |
Expected term (years) | 6 years 1 month 10 days | 6 years 3 months | 6 years 3 months |
Expected dividends | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation Activi
Stock-Based Compensation Activity Of Company's Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||
Options outstanding, beginning of period (in shares) | 6,856 | 7,202 | 7,120 |
Options Granted - Shares | 364 | 209 | 249 |
Options Cancelled or expired - Shares | (1) | (2) | (39) |
Options Exercised - Shares | (1,477) | (534) | (73) |
Options Forfeited - Shares | (39) | (19) | (55) |
Options outstanding, end of period (in shares) | 5,703 | 6,856 | 7,202 |
Options exercisable, end of period (in shares) | 5,095 | ||
Options exercisable and expected to vest, end of period (in shares) | 5,687 | ||
Weighted-Average Exercise Price | |||
Options outstanding, beginning of period - weighted average exercise price per share | $ 7.94 | $ 7.87 | $ 7.86 |
Options granted - weighted average exercise price per share | 15.56 | 10.50 | 8.13 |
Options cancelled or expired - weighted average exercise price per share | 8.59 | 7.24 | 8.92 |
Options exercised - weighted average exercise price per share | 8.42 | 7.93 | 7.33 |
Options forfeited - weighted average exercise price per share | 9.97 | 9.13 | 7.62 |
Options outstanding, end of period - weighted average exercise price per share | 8.29 | $ 7.94 | $ 7.87 |
Options exercisable, end of period - weighted average exercise price per share | 7.72 | ||
Options exercisable and expected to vest, end of period- weighted average exercise price per share | $ 8.27 | ||
Options outstanding, end of period - weighted average remaining contractual term (years) | 4 years 4 months 17 days | 4 years 7 months 17 days | 5 years 5 months 12 days |
Options exercisable, end of period - weighted average remaining contractual term (years) | 3 years 10 months 13 days | ||
Options exercisable and expected to vest, end of period - Weighted Average Remaining Contractual Term (Years) | 4 years 4 months 13 days | ||
Aggregate Intrinsic Value | |||
Options outstanding, end of period - aggregate intrinsic value | $ 57,956 | $ 26,459 | $ 12,473 |
Options exercisable, end of period - aggregate intrinsic value | 54,694 | ||
Options exercisable and expected to vest, end of period - aggregate intrinsic value | $ 57,891 |
Stock-Based Compensation Outsta
Stock-Based Compensation Outstanding RSUs (Details) - Outstanding Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RSUs | |||
Outstanding - restricted stock units | 3,548 | 3,323 | 1,944 |
Granted - restricted stock units | 1,632 | 2,431 | 2,297 |
Forfeited - restricted stock units | (163) | (203) | (152) |
Released - restricted stock units | (1,940) | (2,003) | (766) |
Outstanding - restricted stock units | 3,077 | 3,548 | 3,323 |
Vested - restricted stock units | 617 | ||
Weighted-Average Exercise Price | |||
Outstanding - weighted average grant date fair value per RSU | $ 8.50 | $ 7.40 | $ 7.76 |
Granted - weighted average grant date fair value per RSU | 11.87 | 8.89 | 7.09 |
Forfeited - weighted average grant date fair value per RSU | 9.69 | 8.42 | 7.44 |
Released - weighted average grant date fair value per RSU | 8.64 | 7.16 | 7.36 |
Outstanding - weighted average grant date fair value per RSU | $ 10.13 | $ 8.50 | $ 7.40 |
Preferred Stock Narrative (Deta
Preferred Stock Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | May 15, 2019 | May 31, 2014 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||||||
Deferral period on preferred stock dividends | 1 year 3 months | |||||||
Preferred stock, shares authorized | 2,000,000 | |||||||
Preferred stock, par value | $ 0.0001 | |||||||
Preferred stock, shares issued | 500,000 | 1,000,000 | ||||||
Shares of preferred stock, undesignated and unissued | 500,000 | |||||||
Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 10,702,000 | |||||||
Series A preferred stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | ||||||
Preferred stock dividends declared and paid income statement impact | $ 1,750 | $ 1,750 | $ 7,000 | |||||
Preferred Stock, Shares Outstanding | 0 | 1,000,000 | ||||||
Series A preferred stock | Private offering | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 1,000,000 | |||||||
Annual rate of preferred stock, per share | $ 12.26 | |||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 10,599,974 | |||||||
Preferred stock dividends declared and paid income statement impact | $ 7,000 | $ 1,800 | ||||||
Series A cumulative convertible perpetual preferred stock | Private offering | ||||||||
Class of Stock [Line Items] | ||||||||
Dividend rate on preferred stock | 7.00% | |||||||
Series B preferred stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares issued | 500,000 | 500,000 | ||||||
Dividend rate on preferred stock | 6.75% | |||||||
Preferred stock dividends declared and paid income statement impact | $ 2,109 | $ 2,109 | $ 8,436 | |||||
Preferred Stock, Shares Outstanding | 497,000 | 500,000 | ||||||
Series B preferred stock | Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 500,000 | |||||||
Price Per Share Of Preferred Stock | $ 250 | |||||||
Series B preferred stock | Private offering | ||||||||
Class of Stock [Line Items] | ||||||||
Aggregate discount and offering costs | $ 400 | |||||||
Proceeds from sale of preferred stock | $ 120,800 | |||||||
Preferred stock, purchase price per share | $ 242.50 | |||||||
Underwriting discount price per share | $ 7.50 | |||||||
Payment of underwriter discount | $ 3,800 | |||||||
Series B preferred stock | Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference per share | $ 250 | |||||||
Annual rate of preferred stock, per share | $ 16.875 | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 33.456 | |||||||
Initial conversion price of common stock | $ 7.47 | |||||||
Preferred stock dividends declared and paid income statement impact | $ 8,400 | $ 2,100 | ||||||
Series B cumulative convertible perpetual preferred stock | Private offering | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference per share | $ 250 | |||||||
Scenario, Forecast [Member] | Series B preferred stock | Private offering | ||||||||
Class of Stock [Line Items] | ||||||||
Annual rate of preferred stock, per share | $ 11.21 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Prepaid expenses and other current assets | $ 18,284 | $ 25,347 | $ 18,284 | $ 25,347 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (20,649) | 119,572 | $ 178,165 | |||||||||
Income Tax Expense (Benefit) | 7,265 | 114,284 | (67,133) | |||||||||
Deferred revenue | 37,429 | 38,390 | 37,429 | 38,390 | ||||||||
Deferred revenue, net of current portion | 74,656 | 47,612 | 74,656 | 47,612 | ||||||||
Other long-term liabilities | 4,160 | 59,519 | 4,160 | 59,519 | ||||||||
Contract with Customer, Liability, Revenue Recognized | 18,000 | 22,700 | ||||||||||
Net income (loss) | (7,582) | $ (12,856) | $ (4,418) | $ 11,472 | 141,877 | $ 29,253 | $ 24,778 | $ 37,948 | (13,384) | 233,856 | 111,032 | |
Retained Earnings (Accumulated Deficit) | 501,712 | $ 518,794 | 501,712 | 518,794 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||
Prepaid expenses and other current assets | 18,811 | 18,811 | ||||||||||
Deferred revenue | 57,200 | 57,200 | ||||||||||
Deferred revenue, net of current portion | 71,874 | 71,874 | ||||||||||
Other long-term liabilities | 185 | 185 | ||||||||||
Retained Earnings (Accumulated Deficit) | 489,225 | 489,225 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 405,453 | |||||||||||
Cost of Goods and Services Sold | 85,872 | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (21,809) | |||||||||||
Income Tax Expense (Benefit) | 7,676 | |||||||||||
Net income (loss) | (14,133) | |||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||
Prepaid expenses and other current assets | 527 | 527 | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | (1,304) | |||||||||||
Cost of Goods and Services Sold | (144) | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (1,160) | |||||||||||
Income Tax Expense (Benefit) | 411 | |||||||||||
Deferred revenue | 19,771 | 19,771 | $ 15,700 | |||||||||
Deferred revenue, net of current portion | (2,782) | (2,782) | ||||||||||
Other long-term liabilities | (3,975) | (3,975) | ||||||||||
Net income (loss) | (749) | |||||||||||
Retained Earnings (Accumulated Deficit) | $ (12,487) | (12,487) | ||||||||||
Engineering and Support Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 18,403 | 21,192 | 24,607 | |||||||||
Commercial Voice and Data Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 193,176 | 177,685 | 177,666 | |||||||||
Commercial IoT Data Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 85,054 | 74,142 | 65,523 | |||||||||
Hosted Payload and Other Data Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 40,527 | 9,908 | 3,633 | |||||||||
Government Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 88,000 | 88,000 | 88,000 | |||||||||
Service [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 406,757 | 349,735 | 334,822 | |||||||||
Cost of Goods and Services Sold | 86,016 | |||||||||||
Government [Member] | Engineering and Support Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,687 | 18,083 | 22,362 | |||||||||
Commercial [Member] | Engineering and Support Services [Member] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 716 | 3,109 | $ 2,245 | |||||||||
Commissions [Member] | ||||||||||||
Contract Assets Not Separately Disclosed | 1,010 | 1,555 | ||||||||||
Other Contract Costs [Member] | ||||||||||||
Contract Assets Not Separately Disclosed | $ 3,631 | $ 3,753 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||
Tax cuts and jobs act of 2017, change in tax rate, provisional income tax benefit | $ 150,400 | $ 150,900 | ||
Tax cuts and jobs act of 2017, provisional undistributed accumulated earnings of foreign subsidiary | 2,300 | |||
Tax cuts and jobs of 2017, transition tax for accumulated foreign earnings, income tax expense | $ 800 | 800 | ||
Deferred income tax assets, net | 400 | 400 | ||
Deferred income tax liabilities, net | 241,400 | 241,400 | ||
Deferred impact of state tax law changes and elections | (6,481) | (10,217) | $ (2,962) | |
Deferred tax assets, in process research and development | 8,400 | 8,400 | 6,100 | |
Deferred tax assets, tax credit carryforwards, foreign | 5,200 | 5,200 | 4,700 | |
Deferred tax assets, tax credit carryforwards, alternative minimum tax | 3,600 | 3,600 | 3,800 | |
Foreign tax credit carry forward valuation allowance increase | 1,100 | 1,100 | ||
Unrecognized tax benefits, period increase (decrease) | 1,100 | 1,000 | ||
Tax Cuts and Jobs Act of 2017, Finalized Accounting, Provisional Accumulated Earnings of Foreign Subsidiary | 3,200 | 3,200 | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 7,000 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforward Expiration Date | 2,025 | |||
Operating loss carryforward expiration dates | 2,031 | |||
Research and development tax credit expiration date | 2,029 | |||
Foreign tax credit carryforward expiration dates | 2,020 | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforward Expiration Date | 2,038 | |||
Operating loss carryforward expiration dates | 2,037 | |||
Research and development tax credit expiration date | 2,038 | |||
Foreign tax credit carryforward expiration dates | 2,028 | |||
ARIZONA | ||||
Income Taxes [Line Items] | ||||
Income tax reconciliation - Arizona tax law change | $ 13,500 | 10,200 | $ 3,000 | |
Domestic tax authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 219,600 | $ 219,600 | 80,500 | |
Domestic tax authority | Minimum | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2,010 | |||
Domestic tax authority | Maximum | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2,017 | |||
Foreign tax authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 36,700 | $ 36,700 | 10,900 | |
Foreign tax authority | Minimum | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2,011 | |||
Foreign tax authority | Maximum | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2,017 | |||
Valuation Allowance, Operating Loss Carryforwards | State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (11,400) | (700) | ||
Tax Year 2022 and Later | Foreign tax authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 900 | $ 900 | $ 1,300 | |
Source of Repatriated Foreign Earnings | ||||
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 15.50% | |||
Net Current Assets [Domain] | ||||
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 8.00% |
Income Taxes - U.S and Foreign
Income Taxes - U.S and Foreign Components Of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) | $ (22,147) | $ 120,281 | $ 176,448 |
Foreign income (loss) | 1,498 | (709) | 1,717 |
Total income (loss) before income taxes | $ (20,649) | $ 119,572 | $ 178,165 |
Income Taxes - Components of Co
Income Taxes - Components of Company's Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current taxes: | |||
Federal tax expense | $ 17 | $ 13 | $ 1,206 |
State tax expense | (91) | 422 | 978 |
Foreign tax expense | 1,163 | 863 | 1,141 |
Total current tax expense | 1,089 | 1,298 | 3,325 |
Deferred taxes: | |||
Federal tax expense (benefit) | (9,159) | (110,811) | 60,295 |
State tax expense (benefit) | 904 | (4,851) | 3,454 |
Foreign tax expense (benefit) | (99) | 80 | 59 |
Total deferred tax expense (benefit) | (8,354) | (115,582) | 63,808 |
Income Tax Expense (Benefit) | $ (7,265) | $ (114,284) | $ 67,133 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense (benefit) at U.S. federal statutory tax rate | $ (4,336) | $ 41,850 | $ 62,309 |
State taxes, net of federal benefit | (3,361) | 5,133 | 9,757 |
State tax valuation allowance | 10,651 | 582 | (2,710) |
Deferred impact of state tax law changes and elections | (6,481) | (10,217) | (2,962) |
Tax Act - deferred tax effects | 0 | (150,903) | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | (3,807) | (977) | 0 |
Effective Income Tax Rate Reconciliation, Limitation on Executive Compensation | 1,568 | 26 | 0 |
Other nondeductible items | 298 | 110 | 596 |
Tax credits | (2,872) | (528) | (442) |
Foreign taxes and other adjustments | 1,075 | 640 | 585 |
Income Tax Expense (Benefit) | $ (7,265) | $ (114,284) | $ 67,133 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Long-term contracts | $ 70,518 | $ 61,358 |
Federal, state and foreign net operating loss carryforwards and tax credits | 277,678 | 107,566 |
Other | 20,002 | 22,680 |
Total deferred tax assets | 368,198 | 191,604 |
Valuation allowance | (14,174) | (3,815) |
Net deferred tax assets | 354,024 | 187,789 |
Deferred tax liabilities | ||
Fixed assets, intangibles and research and development expenditures | (529,037) | (403,545) |
Investment in joint venture | (57,686) | (27,796) |
Other | (8,357) | (2,276) |
Total deferred tax liabilities | (595,080) | (433,617) |
Net deferred income tax liabilities | $ (241,056) | $ (245,828) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 1,046 | $ 920 |
Change attributable to tax positions taken in a prior period | 50 | 146 |
Change attributable to final assessment | 0 | (27) |
Change attributable to tax positions taken in the current period | 16 | 10 |
Decrease attributable to lapse of statute of limitations | 0 | (3) |
Balance at December 31, | $ 1,112 | $ 1,046 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee stock option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0.1 | 3.2 | |
Unvested non-performance restricted stock units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 2.1 | 1.4 | |
Unvested Performance Based Restricted Stock Units R S U [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0.7 | 0.2 | |
Series A preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock dividends, undeclared | $ 0 | $ 5,250 | $ 0 |
Series B Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock dividends, undeclared | $ 6,290 | $ 6,327 | $ 0 |
Antidilutive securities excluded from computation of diluted earnings per share | 16.7 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income (loss) attributable to common stockholders (numerator for basic net income per share) | $ (23,533) | $ 218,420 | $ 95,596 | ||||||||
Net (income) loss allocated to participating securities | 0 | (215) | (123) | ||||||||
Numerator for basic net income (loss) per share | (23,533) | 218,205 | 95,473 | ||||||||
Numerator for diluted net income (loss) per share | $ (23,533) | $ 233,641 | $ 110,909 | ||||||||
Denominator: | |||||||||||
Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares | 108,975 | 97,934 | 95,967 | ||||||||
Denominator for diluted net income (loss) per share | 108,975 | 128,130 | 124,875 | ||||||||
Net income (loss) per share attributable to common stockholders - basic (USD per share) | $ (0.09) | $ (0.13) | $ (0.06) | $ 0.08 | $ 1.40 | $ 0.26 | $ 0.21 | $ 0.35 | $ (0.22) | $ 2.23 | $ 1 |
Net income (loss) per share attributable to common stockholders - diluted (USD per share) | $ (0.09) | $ (0.13) | $ (0.06) | $ 0.07 | $ 1.10 | $ 0.23 | $ 0.20 | $ 0.30 | $ (0.22) | $ 1.82 | $ 0.89 |
Equity option | |||||||||||
Denominator: | |||||||||||
Dilutive effect of stock | 0 | 1,558 | 250 | ||||||||
Performance RSUs | |||||||||||
Denominator: | |||||||||||
Dilutive effect of stock | 0 | 1,308 | 1,328 | ||||||||
Series A preferred stock | |||||||||||
Numerator: | |||||||||||
Preferred stock declared and undeclared | $ 0 | $ 7,000 | $ 7,000 | ||||||||
Denominator: | |||||||||||
Dilutive effect of preferred stock | 0 | 10,602 | 10,602 | ||||||||
Series B Preferred Stock [Member] | |||||||||||
Numerator: | |||||||||||
Preferred stock declared and undeclared | $ 0 | $ 8,436 | $ 8,436 | ||||||||
Denominator: | |||||||||||
Dilutive effect of preferred stock | 0 | 16,728 | 16,728 |
Related Party Transaction Dis_2
Related Party Transaction Disclosure Related Party Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 35.70% | 35.70% | ||
Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts Receivable, Related Parties | $ 1,000 | $ 1,000 | $ 600 | |
Equity Method Investee [Member] | Data Services Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 9,100 | |||
Equity Method Investee [Member] | Hosting Agreement [Domain] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Hosting Fees | 200,000 | |||
Revenue from Related Parties | 8,100 | |||
Related Party, Receipt of Hosting Fees | $ 35,000 | |||
Related Party Transaction, Power Fees per Year | 2,800 | |||
Related Party Transaction, Data Service Fees | 19,800 | |||
Equity Method Investee [Member] | Amended Hosting Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 13,900 | |||
Hosted Payload and Other Data Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 40,527 | $ 9,908 | $ 3,633 | |
Line of Credit [Member] | ||||
Related Party Transaction [Line Items] | ||||
Line of Credit Facility, Periodic Payment, Principal | $ 43,100 |
Segments, Significant Custome_3
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
No Single Country or Region Representing More Than Stated Percentage of Total Revenue | 10.00% | 10.00% | |
No Single Country Greater than Stated Percentage - PP&E | 10.00% | 10.00% | |
No Single Customer Over 10% Total Revenue - Commercial | 10.00% | 10.00% | |
No Single Customer Over 10% Total Revenue - Government | 10.00% | 10.00% | |
Sales revenue, net | Prime contracts with U.S. government | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 20.00% | 24.00% | 25.00% |
Accounts receivable | Prime contracts with U.S. government | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 34.00% | 35.00% |
Segments, Significant Custome_4
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Net Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 3,370,855 | $ 3,210,162 |
United states | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 188,203 | 165,337 |
Satellites in orbit | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,504,734 | 926,090 |
Iridium NEXT systems under construction (United States) | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 658,395 | 2,088,380 |
All others | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 19,523 | $ 30,355 |
Segments, Significant Custome_5
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Revenue By Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 132,165 | $ 136,764 | $ 134,931 | $ 119,148 | $ 115,469 | $ 116,547 | $ 111,604 | $ 104,426 | $ 523,008 | $ 448,046 | $ 433,640 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 276,398 | 229,741 | 226,190 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 48,511 | 44,107 | 42,373 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 51,344 | 46,245 | 47,135 | ||||||||
Other countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 146,755 | $ 127,953 | $ 117,942 |
Employee Benefit Plan Narrative
Employee Benefit Plan Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined-contribution plan matching employees’ contributions vested percentage | 100.00% | ||
Maximum employee contribution percentage | 100.00% | ||
Maximum deferral contribution percentage | 5.00% | ||
Defined-contribution plan employer-matching contributions amount | $ 3 | $ 2.5 | $ 1.3 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Revenues | $ 132,165 | $ 136,764 | $ 134,931 | $ 119,148 | $ 115,469 | $ 116,547 | $ 111,604 | $ 104,426 | $ 523,008 | $ 448,046 | $ 433,640 |
Operating income (loss) | (142) | 6,011 | 16,345 | 19,439 | (13,950) | 38,082 | 35,742 | 55,602 | 41,653 | 115,476 | 176,371 |
Net income (loss) | $ (7,582) | $ (12,856) | $ (4,418) | $ 11,472 | $ 141,877 | $ 29,253 | $ 24,778 | $ 37,948 | $ (13,384) | $ 233,856 | $ 111,032 |
Net income (loss) attributable to common stockholders per share - basic | $ (0.09) | $ (0.13) | $ (0.06) | $ 0.08 | $ 1.40 | $ 0.26 | $ 0.21 | $ 0.35 | $ (0.22) | $ 2.23 | $ 1 |
Net income (loss) attributable to common stockholders per share - diluted | $ (0.09) | $ (0.13) | $ (0.06) | $ 0.07 | $ 1.10 | $ 0.23 | $ 0.20 | $ 0.30 | $ (0.22) | $ 1.82 | $ 0.89 |
Depreciation | $ 216,600 | $ 120,700 | $ 48,600 | ||||||||
Gain on Boeing transaction | $ 0 | $ 14,189 | $ 0 | ||||||||
Kosmotras | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 36,800 |