Document And Entity Information
Document And Entity Information - $ / shares | 9 Months Ended | ||
Sep. 30, 2021 | Oct. 14, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | |||
Entity Registrant Name | Iridium Communications Inc. | ||
Entity Central Index Key | 0001418819 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | IRDM | ||
Entity Current Reporting Status | Yes | ||
Document Quarterly Report | true | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Fiscal Period Focus | Q3 | ||
Document Fiscal Year Focus | 2021 | ||
Entity Address, Address Line One | 1750 Tysons Boulevard | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
Document Transition Report | false | ||
City Area Code | 703 | ||
Local Phone Number | 703-287-7400 | ||
Entity File Number | 001-33963 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Entity Common Stock, Shares Outstanding (in shares) | 132,202,392 | ||
Entity Tax Identification Number | 26-1344998 | ||
NASDAQ/NGS (GLOBAL SELECT MARKET) [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 287,004 | $ 237,178 |
Marketable securities | 2,002 | 7,548 |
Accounts receivable, net | 70,390 | 61,151 |
Inventory | 23,388 | 32,480 |
Prepaid expenses and other current assets | 9,786 | 9,464 |
Total current assets | 392,570 | 347,821 |
Property and equipment, net | 2,720,281 | 2,917,076 |
Other assets | 48,761 | 50,548 |
Intangible assets, net | 44,361 | 45,504 |
Total assets | 3,205,973 | 3,360,949 |
Current liabilities: | ||
Short-term secured debt | 16,500 | 16,766 |
Accounts payable | 10,927 | 14,390 |
Accrued expenses and other current liabilities | 39,794 | 49,504 |
Deferred revenue | 26,243 | 32,412 |
Total current liabilities | 93,464 | 113,072 |
Long-term secured debt, net | 1,584,511 | 1,596,893 |
Deferred income tax liabilities, net | 134,563 | 155,084 |
Deferred revenue, net of current portion | 49,187 | 51,258 |
Other long-term liabilities | 22,467 | 25,203 |
Total liabilities | 1,884,192 | 1,941,510 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized, 132,188 and 134,056 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 132 | 134 |
Additional paid-in capital | 1,155,414 | 1,160,570 |
Retained earnings | 176,464 | 275,915 |
Accumulated other comprehensive loss, net of tax | (10,229) | (17,180) |
Total stockholders’ equity | 1,321,781 | 1,419,439 |
Total liabilities and stockholders’ equity | $ 3,205,973 | $ 3,360,949 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 132,188,000 | 134,056,000 |
Common stock, shares outstanding (in shares) | 132,188,000 | 134,056,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 162,159 | $ 151,472 | $ 458,613 | $ 436,932 |
Operating expenses: | ||||
Research and development | 2,815 | 3,116 | 8,156 | 7,940 |
Selling, general and administrative | 25,897 | 20,631 | 72,524 | 62,556 |
Depreciation and amortization | 77,688 | 75,654 | 229,266 | 227,260 |
Total operating expenses | 147,130 | 138,739 | 422,973 | 406,549 |
Operating income | 15,029 | 12,733 | 35,640 | 30,383 |
Other expense, net: | ||||
Interest expense, net | (17,614) | (22,628) | (58,013) | (71,578) |
Loss on extinguishment of debt | (879) | 0 | (879) | (30,209) |
Other income (expense), net | (81) | 205 | (225) | 332 |
Total other expense, net | (18,574) | (22,423) | (59,117) | (101,455) |
Loss before income taxes | (3,545) | (9,690) | (23,477) | (71,072) |
Income tax benefit | 1,460 | 5,685 | 20,042 | 22,943 |
Net loss | $ (2,085) | $ (4,005) | $ (3,435) | $ (48,129) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 132,869 | 133,760 | 133,763 | 133,177 |
Earnings Per Share, Basic and Diluted | $ (0.02) | $ (0.03) | $ (0.03) | $ (0.36) |
Comprehensive income (loss): | ||||
Net loss | $ (2,085) | $ (4,005) | $ (3,435) | $ (48,129) |
Foreign currency translation adjustments | (592) | (1,348) | (171) | (4,241) |
Unrealized Gain (Loss) on Cash Flow Hedging, net of tax | 3,040 | 1,794 | 7,122 | (9,008) |
Comprehensive income (loss) | 363 | (3,559) | 3,516 | (61,378) |
Services | ||||
Revenue: | ||||
Total revenue | 127,774 | 116,914 | 365,247 | 346,239 |
Operating expenses: | ||||
Cost of Goods and Services Sold | 25,186 | 23,909 | 71,784 | 69,021 |
Subscriber equipment | ||||
Revenue: | ||||
Total revenue | 26,898 | 25,120 | 72,607 | 67,198 |
Operating expenses: | ||||
Cost of Goods and Services Sold | 15,544 | 15,429 | 41,243 | 39,772 |
Engineering and support services | ||||
Revenue: | ||||
Total revenue | $ 7,487 | $ 9,438 | $ 20,759 | $ 23,495 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock, Shares [Member] | Common Stock, Amount | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Beginning Balance (in shares) at Dec. 31, 2019 | 131,632 | |||||
Beginning Balance at Dec. 31, 2019 | $ 1,459,282 | $ 132 | $ 1,134,048 | $ (6,867) | $ 331,969 | |
Stock-based compensation | 13,775 | 13,775 | ||||
Stock options exercised and awards vested (in shares) | 1,796 | |||||
Stock options exercised and awards vested | 7,787 | 1 | 7,786 | |||
Stock withheld to cover employee taxes (in shares) | (149) | |||||
Stock withheld to cover employee taxes | (4,003) | (4,003) | ||||
Cumulative translation adjustment | (4,241) | (4,241) | ||||
Unrealized Gain (Loss) on Cash Flow Hedging, net of tax | (9,008) | (9,008) | ||||
Net loss | (48,129) | (48,129) | ||||
Ending Balance (in shares) at Sep. 30, 2020 | 133,279 | |||||
Ending Balance at Sep. 30, 2020 | 1,415,463 | 133 | 1,151,606 | (20,116) | 283,840 | |
Beginning Balance (in shares) at Jun. 30, 2020 | 132,526 | |||||
Beginning Balance at Jun. 30, 2020 | 1,409,160 | 133 | 1,141,744 | (20,562) | 287,845 | |
Stock-based compensation | 5,134 | 5,134 | ||||
Stock options exercised and awards vested (in shares) | 769 | |||||
Stock options exercised and awards vested | 5,175 | 0 | 5,175 | |||
Stock withheld to cover employee taxes (in shares) | (16) | |||||
Stock withheld to cover employee taxes | (447) | (447) | ||||
Cumulative translation adjustment | (1,348) | (1,348) | ||||
Unrealized Gain (Loss) on Cash Flow Hedging, net of tax | 1,794 | 1,794 | ||||
Net loss | (4,005) | (4,005) | ||||
Ending Balance (in shares) at Sep. 30, 2020 | 133,279 | |||||
Ending Balance at Sep. 30, 2020 | 1,415,463 | 133 | 1,151,606 | (20,116) | 283,840 | |
Beginning Balance (in shares) at Dec. 31, 2020 | 134,056 | |||||
Beginning Balance at Dec. 31, 2020 | 1,419,439 | 134 | 1,160,570 | (17,180) | 275,915 | |
Stock-based compensation | 22,129 | 22,129 | ||||
Stock options exercised and awards vested (in shares) | 1,626 | |||||
Stock options exercised and awards vested | 7,193 | 1 | 7,192 | |||
Stock withheld to cover employee taxes (in shares) | (131) | |||||
Stock withheld to cover employee taxes | (5,390) | (5,390) | ||||
Repurchases and retirements of common stock (in shares) | (3,363) | |||||
Repurchases and retirements of common stock | (125,106) | (3) | (29,087) | (96,016) | ||
Cumulative translation adjustment | (171) | (171) | ||||
Unrealized Gain (Loss) on Cash Flow Hedging, net of tax | 7,122 | 7,122 | ||||
Net loss | (3,435) | (3,435) | ||||
Ending Balance (in shares) at Sep. 30, 2021 | 132,188 | |||||
Ending Balance at Sep. 30, 2021 | 1,321,781 | 132 | 1,155,414 | (10,229) | 176,464 | |
Beginning Balance (in shares) at Jun. 30, 2021 | 131,928 | |||||
Beginning Balance at Jun. 30, 2021 | 1,314,178 | 132 | 1,146,160 | (12,677) | 180,563 | |
Stock-based compensation | 8,150 | 8,150 | ||||
Stock options exercised and awards vested (in shares) | 348 | |||||
Stock options exercised and awards vested | 2,378 | 0 | 2,378 | |||
Stock withheld to cover employee taxes (in shares) | (16) | |||||
Stock withheld to cover employee taxes | (650) | (650) | ||||
Repurchases and retirements of common stock (in shares) | (72) | |||||
Repurchases and retirements of common stock | (2,638) | 0 | (624) | (2,014) | ||
Cumulative translation adjustment | (592) | (592) | ||||
Unrealized Gain (Loss) on Cash Flow Hedging, net of tax | 3,040 | 3,040 | ||||
Net loss | (2,085) | (2,085) | ||||
Ending Balance (in shares) at Sep. 30, 2021 | 132,188 | |||||
Ending Balance at Sep. 30, 2021 | $ 1,321,781 | $ 132 | $ 1,155,414 | $ (10,229) | $ 176,464 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (3,435) | $ (48,129) |
Deferred income taxes | (20,521) | (23,600) |
Depreciation and amortization | 229,266 | 227,260 |
Loss on extinguishment of debt | 879 | 30,209 |
Stock-based compensation (net of amounts capitalized) | 20,087 | 12,560 |
Amortization of deferred financing fees | 3,025 | 2,724 |
All other items, net | (525) | 548 |
Accounts receivable | (8,702) | 7,958 |
Inventory | 9,408 | 6,709 |
Prepaid expenses and other current assets | (309) | (986) |
Other assets | 2,538 | 2,545 |
Accounts payable | (5,050) | 556 |
Accrued expenses and other current liabilities | (2,386) | (14,025) |
Interest payable | (69) | (7,072) |
Deferred revenue | (8,312) | (16,576) |
Other long-term liabilities | (2,757) | (1,544) |
Net cash provided by operating activities | 213,137 | 179,137 |
Cash flows from investing activities: | ||
Capital expenditures | (28,016) | (29,267) |
Purchase of other investments | (1,128) | 0 |
Maturities of marketable securities | 5,400 | 0 |
Net cash used in investing activities | (23,744) | (29,267) |
Cash flows from financing activities: | ||
Borrowings under the Term Loan | 179,285 | 202,000 |
Payments on the Term Loan | (191,660) | (8,250) |
Payments on the senior unsecured notes, including extinguishment costs | 0 | (383,451) |
Repurchases of common stock | (125,106) | 0 |
Payment of deferred financing fees | 4,053 | 2,562 |
Proceeds from exercise of stock options | 7,193 | 7,786 |
Tax payment upon settlement of stock awards | 5,390 | 4,003 |
Net cash used in financing activities | (139,731) | (188,480) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 164 | (2,249) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 49,826 | (40,859) |
Cash, cash equivalents, and restricted cash, beginning of period | 237,178 | 223,561 |
Cash, cash equivalents, and restricted cash, end of period | 287,004 | 182,702 |
Supplemental cash flow information: | ||
Interest paid, net of amounts capitalized | 56,985 | 77,047 |
Income taxes paid, net | 1,304 | 934 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment received but not paid | 4,941 | 2,533 |
Capitalized amortization of deferred financing costs | 90 | 82 |
Capitalized stock-based compensation | $ 2,042 | $ 1,215 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Iridium Communications Inc. (the “Company”) has prepared its condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company's operations are conducted through, and its operating assets are owned by, its principal operating subsidiary, Iridium Satellite LLC, Iridium Satellite's immediate parent, Iridium Holdings, LLC, and their subsidiaries. The accompanying condensed consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned subsidiaries, and (iii) all less than wholly owned subsidiaries that the Company controls. All material intercompany transactions and balances have been eliminated. In the opinion of management, the condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2020, as filed with the SEC on February 11, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. Adoption of ASU 2019-12 on January 1, 2021 had no impact on the Company's condensed consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 was further amended in January 2021 when the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarified the applicability of certain provisions. Both ASU 2020-04 and ASU 2021-01 are currently effective prospectively for all entities through December 31, 2022 when the reference rate replacement activity is expected to have been completed. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. As of September 30, 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") which was executed in July 2021. This allowed the Company to assume that the index upon which future interest payments on the hedged portion of the Term Loan (see Note 5 ) will be based matches the index on the Cap. Adoption of this practical expedient had no impact on the Company's condensed consolidated financial statements upon adoption. The Company has not yet adopted any other expedients and will continue to evaluate the impact this standard may have on its consolidated financial statements. 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. 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 the following financial instruments approximated their fair values as of September 30, 2021 and December 31, 2020: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its fixed income debt investments and derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of September 30, 2021 and December 31, 2020. The fair values of the Company’s Level 2 estimates are based upon certain market assumptions and information available to the Company. In determining fair value, the Company uses a market approach utilizing valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption, Cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the condensed consolidated balance sheets within other current liabilities and other assets. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive loss within the Company’s condensed consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative's change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the condensed consolidated statements of operations and comprehensive loss, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the Company’s condensed consolidated statements of cash flows, which is the same category as the item being hedged. See Note 6 for further information. |
Cash and Cash Equivalents, Rest
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | Cash and Cash Equivalents and Marketable Securities Cash and Cash Equivalents The following table presents the Company’s cash and cash equivalents as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Recurring Fair (In thousands) Cash and cash equivalents: Cash $ 43,323 $ 27,168 Money market funds 243,681 208,005 Level 2 Fixed income debt securities — 2,005 Level 2 Total cash and cash equivalents $ 287,004 $ 237,178 Marketable Securities As of September 30, 2021, the Company's marketable securities consisted of only fixed income debt securities. The amortized cost of these securities amounted to $2.0 million and $7.6 million as of September 30, 2021 and December 31, 2020, respectively. The estimated fair value of these securities amounted to $2.0 million and $7.5 million as of September 30, 2021 and December 31, 2020, respectively. The gross unrealized gains and gross unrealized losses on these marketable securities were not material as of September 30, 2021 and December 31, 2020. All marketable securities are classified as Level 2 investments in the fair value hierarchy. The Company determined that any decline in fair value of these investments is temporary as the Company does not intend to sell these securities and it is not likely that the Company will be required to sell the securities before the recovery of their amortized cost basis. The following table presents the contractual maturities of the Company's fixed income debt securities as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) (In thousands) Mature within one year $ 2,002 $ 2,002 $ 5,530 $ 5,525 Mature after one year and within three years — — 2,024 2,023 Total $ 2,002 $ 2,002 $ 7,554 $ 7,548 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon LLC (“Aireon”) (see Note 12 ) and L3Harris Technologies, Inc. (“L3Harris”) for space on the Company’s satellites. These agreements provide for a fee that will be recognized over the life of the satellites, currently estimated to be approximately 12.5 years. Lease income related to these agreements was $5.4 million for each of the three months ended September 30, 2021 and 2020 and $16.1 million for each of the nine months ended September 30, 2021 and 2020. Lease income is recorded as hosted payload and other data service revenue within service revenue on the Company’s condensed consolidated statements of operations and comprehensive loss. Both Aireon and L3Harris have made payments pursuant to their hosting agreements, and the Company expects they will continue to do so. The following table presents future income with respect to the Company’s operating leases in which it is the lessor existing at September 30, 2021, exclusive of the $16.1 million recognized during the nine months ended September 30, 2021, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2021 $ 5,361 2022 21,445 2023 21,445 2024 21,445 2025 21,445 Thereafter 98,907 Total lease income $ 190,048 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan and Revolving Facility On November 4, 2019, pursuant to a loan agreement (as amended to date, the “Credit Agreement”), the Company entered into a $1,450.0 million term loan with Deutsche Bank AG (the “Original Term Loan”) and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Original Term Loan was issued at a price equal to 99.5% of its face value. On February 7, 2020, the Company closed on an additional $200.0 million under its Credit Agreement for a total borrowing of $1,650.0 million (as expanded, the “Term Loan”). The additional amount is fungible with the Original Term Loan, having the same maturity date, interest rate and other terms, but was issued at a 1.0% premium to face value. The Term Loan initially bore interest at an annual rate of LIBOR plus 3.75%, with a 1.0% LIBOR floor. The Term Loan was initially repriced in January 2021 with a new annual interest rate of LIBOR plus 2.75%, with a 1.0% LIBOR floor. The Term Loan was repriced again in July 2021 for a new annual interest rate of LIBOR plus 2.50%, with a 0.75% LIBOR floor. The maturity date remains unchanged in November 2026. The interest rate on the Revolving Facility remained unchanged at LIBOR plus 3.75% with no LIBOR floor, and a maturity date in November 2024. Principal payments, which are payable quarterly and began on June 30, 2020, equal $16.5 million per annum (one percent of the full principal amount of the Term Loan), with the remaining principal due upon maturity. In July 2021, the Company paid $4.1 million of original issuance costs to reprice the Term Loan. Lenders making up approximately $65.2 million of the Term Loan did not participate in the repricing. Those portions of the Term Loan were replaced by new or existing lenders. This resulted in a $0.9 million loss on extinguishment of debt during the three months ended September 30, 2021, as the Company wrote off the unamortized debt issuance costs related to the lenders who were fully repaid in an exchange of principal. In February 2020, the Company used the proceeds of the additional $200.0 million under the Term Loan noted above, together with cash on hand, to prepay and retire all of the indebtedness outstanding under then outstanding senior unsecured notes (the “Notes”), including premiums for early prepayment. To prepay the Notes, the Company paid a call price equal to the present value at the redemption rate of (i) 105.125% of the $360.0 million principal amount of the Notes plus (ii) all interest due through the first call date in April 2020, representing a total call premium of $23.5 million, plus all accrued and unpaid interest to the redemption date. As a result of the prepayment, the Company also wrote off the remaining unamortized debt issuance costs, which resulted in a $30.2 million loss on extinguishment of debt during the three months ended March 31, 2020. As of September 30, 2021 and December 31, 2020, the Company reported an aggregate of $1,625.3 million and $1,637.6 million in borrowings under the Term Loan, respectively. These amounts do not include $24.2 million and $24.0 million of net unamortized deferred financing costs as of September 30, 2021 and December 31, 2020, respectively. The net principal balance in borrowings in the accompanying condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 amounted to $1,601.0 million and $1,613.6 million, respectively. As of September 30, 2021 and December 31, 2020, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the borrowings under the Term Loan was $1,627.3 million and $1,647.9 million, respectively. The Company had not borrowed under the Revolving Facility as of September 30, 2021 and December 31, 2020. The Credit Agreement restricts the Company’s ability to incur liens, engage in mergers or asset sales, pay dividends, repay subordinated indebtedness, incur indebtedness, make investments and loans, and engage in other transactions as specified in the Credit Agreement. The Credit Agreement provides for specified exceptions, including baskets measured as a percentage of trailing twelve months of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and unlimited exceptions based on achievement and maintenance of specified leverage ratios, for, among other things, incurring indebtedness and liens and making investments, restricted payments for dividends and share repurchases, and payments of subordinated indebtedness. The Credit Agreement also contains a mandatory prepayment sweep mechanism with respect to a portion of the Company’s excess cash flow (as defined in the Credit Agreement), which is phased out based on achievement and maintenance of specified leverage ratios. The Company’s mandatory excess cash flow prepayment, as specified in the Credit Agreement, was calculated to be $12.7 million as of December 31, 2020. Lenders have the right to decline payment. As such, the Company paid $4.7 million to lenders who did not decline payment in May 2021. This amount counted towards the Company's required quarterly principal payments through September 30, 2021. The Credit Agreement permits repayment, prepayment, and repricing transactions. The Credit Agreement contains no financial maintenance covenants with respect to the Term Loan. With respect to the Revolving Facility, the Credit Agreement requires the Company to maintain a consolidated first lien net leverage ratio (as defined in the Credit Agreement) of no greater than 6.25 to 1 if more than 35% of the Revolving Facility has been drawn. The Credit Agreement contains other customary representations and warranties, affirmative and negative covenants, and events of default. The Company was in compliance with all covenants as of September 30, 2021. Interest on Debt Total interest incurred includes amortization of deferred financing fees and capitalized interest. To reprice the Term Loan in January 2021 and July 2021, the Company incurred third-party financing costs of $3.6 million and $1.3 million, respectively. These costs were expensed and are included within interest expense on the condensed consolidated statements of operations and comprehensive loss for the respective three and nine months ended September 30, 2021. There were no such costs during the three and nine months ended September 30, 2020. The following table presents the interest and amortization of deferred financing fees related to the Term Loan for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Total interest incurred $ 18,462 $ 23,658 $ 61,018 $ 75,023 Amortization of deferred financing fees $ 1,148 $ 957 $ 3,115 $ 2,806 Capitalized interest $ 438 $ 861 $ 1,795 $ 2,367 At each of September 30, 2021 and December 31, 2020, accrued interest was $0.2 million. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments The Company is exposed to interest rate fluctuations related to its Term Loan. The Company has reduced its exposure to fluctuations in the cash flows associated with changes in the variable interest rate by entering into offsetting positions through the use of interest rate swap and interest rate cap contracts which result in recognizing a fixed interest rate for a portion of the Term Loan. This will reduce the negative impact of increases in the variable rate over the term of the derivative contracts. These contracts are not used for trading or other speculative purposes. Historically, the Company has not incurred, and does not expect to incur in the future, any losses as a result of counterparty default. Hedge effectiveness of interest rate swap and cap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. The Company formally assesses, both at the hedge’s inception and on an ongoing quarterly basis, whether the designated derivative instruments are highly effective in offsetting changes in the cash flows of the hedged items. When the hedging instrument is sold, expires, is terminated, is exercised, no longer qualifies for hedge accounting, is de-designated, or is no longer probable, hedge accounting is discontinued prospectively. Interest Rate Swaps On November 27, 2019, the Company executed a long-term interest rate swap (“Swap”) through November 2021 to mitigate variability in forecasted interest payments on a portion of the Company’s borrowings under its Term Loan. On the last business day of each month, the Company receives variable interest payments based on one-month LIBOR from the counterparty. The Company pays a fixed rate of 1.565% per annum on the Swap. The Company also entered into an interest rate swaption agreement (“Swaption”), for which the Company pays a fixed annual rate of 0.50%. At inception, the Swap and Swaption (collectively, the "swap contracts") were designated as cash flow hedges for hedge accounting. The unrealized changes in market value were recorded in accumulated other comprehensive loss and will be reclassified into earnings during the period in which the hedged transaction affects earnings. Due to the changes made to the Term Loan as a result of the July repricing, in July 2021, the Company elected to de-designate the Swap as a cash flow hedge. Accordingly, as the related interest payments are still probable, the accumulated balance within other comprehensive loss as of the de-designation date will be amortized into earnings through the remaining term, and future changes in the valuation of the Swap will be recorded directly into earnings. As of both September 30, 2021 and December 31, 2020, the Swap carried a notional amount of $1,000.0 million, and as of September 30, 2021 and December 31, 2020, the Company had recorded a current liability balance of $1.0 million and $5.2 million, respectively, in other current liabilities related to the fair value of the Swap. The Swaption carried a notional amount of $1,000.0 million as of December 31, 2020. The Company sold the Swaption in May 2021 for $0.7 million. The Company will continue to pay the fee for the Swaption through November 2021. The Company had a current liability balance of $0.8 million as of September 30, 2021 related to the premium liability associated with the Swaption. As of December 31, 2020, the premium liability was netted with the Swaption, for a fair value of $4.4 million which was recorded in other current liabilities. Over the next 12 months, the Company expects any gains or losses for cash flow hedges amortized from accumulated other comprehensive loss into earnings to have an immaterial impact on the Company’s condensed consolidated financial statements. Interest Rate Cap On July 21, 2021, the Company entered into an interest rate cap agreement (the "Cap") beginning in November 2021. The Cap will manage the Company's exposure to interest rate movements on a portion of the Term Loan after the Swap expires. The Cap provides the right to receive payment if one-month LIBOR exceeds the contractual rate of 1.5%. Beginning in December 2021, the Company will pay a fixed monthly premium based on an annual rate of 0.31% for the Cap. The Cap carried a notional amount of $1,000.0 million as of September 30, 2021. The Cap is designed to mirror the terms of the Term Loan and to be highly effective at offsetting the cash flows being hedged. The Company designated the Cap as a cash flow hedge of the variability of the LIBOR-based interest payments on the Term Loan. The effective portion of the Cap's change in fair value will be recorded in accumulated other comprehensive loss. Any ineffective portion of the Cap's change in fair value will be recorded in current earnings as interest expense. Fair Value of Derivative Instruments As of September 30, 2021, the Company had an asset balance of $2.3 million recorded in other assets for the fair value of the Cap. During the three and nine months ended September 30, 2021, the Company collectively incurred $1.8 million and $6.6 million, respectively, in net interest expense for the swap contracts and the Cap. During the three and nine months ended September 30, 2020, the Company collectively incurred $2.7 million and $6.4 million, respectively, in net interest expense for the swap contracts. Gains and losses resulting from fair value adjustments to the Cap are recorded within accumulated other comprehensive loss within the Company’s condensed consolidated balance sheets and reclassified to interest expense on the dates that interest payments become due. Cash flows related to the derivative contracts are included in cash flows from operating activities on the condensed consolidated statements of cash flows. The following table presents the amount of unrealized gain or loss and related tax impact the Company recorded in comprehensive loss in its condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Unrealized gain (loss), net of tax $ 3,040 $ 1,794 $ 7,122 $ (9,008) Tax (benefit) 1,010 630 2,222 (3,159) |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In May 2019, 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”). As of September 30, 2021, the remaining aggregate number of shares of the Company’s common stock available for future grants under the Amended 2015 Plan was 10,538,835. The Amended 2015 Plan provides for the grant of stock-based awards, including nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights and other equity securities to 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 four years 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 market value of the underlying shares at the date of grant. The Company historically granted stock options to newly hired and promoted employees, but now almost exclusively utilizes RSUs. The Company did not grant any stock options during the nine-months ended September 30, 2021 and 2020. Option Summary The following tables summarize the Company's stock option activity for the nine-months ended September 30, 2021 and 2020: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2020 2,554 $ 9.10 3.94 $ 77,182 Cancelled or expired (1) 7.78 Exercised (844) 8.46 $ 31,171 Forfeited (11) 15.45 Options outstanding at September 30, 2021 1,698 $ 9.38 3.54 $ 51,755 Options exercisable at September 30, 2021 1,592 $ 8.73 3.31 $ 49,552 Options exercisable and expected to vest at September 30, 2021 1,698 $ 9.37 3.54 $ 51,732 Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2019 4,153 $ 8.78 4.03 $ 65,887 Cancelled or expired (4) 20.17 Exercised (944) 8.28 $ 18,654 Forfeited (13) 18.57 Options outstanding at September 30, 2020 3,192 $ 8.87 3.58 $ 53,332 Options exercisable at September 30, 2020 2,927 $ 8.13 3.24 $ 51,074 Options exercisable and expected to vest at September 30, 2020 3,187 $ 8.86 3.57 $ 53,297 Restricted Stock Units The RSUs granted to employees for service generally vest over four years, 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. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The Company’s RSUs are 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. RSU Summary The following tables summarize the Company’s RSU activity for the nine-months ended September 30, 2021 and 2020: RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 843 41.67 Forfeited (90) 28.41 Released (782) 21.22 Outstanding at September 30, 2021 2,635 $ 25.23 Vested and unreleased at September 30, 2021 (1) 860 RSUs Weighted- (In thousands) Outstanding at December 31, 2019 2,702 $ 14.62 Granted 1,030 26.75 Forfeited (61) 16.81 Released (852) 15.73 Outstanding at September 30, 2020 2,819 $ 18.67 Vested and unreleased at September 30, 2020 (1) 802 (1) These RSUs were granted to the Company's board of directors as a part of their compensation for board and committee service, as detailed below, and had vested but had not yet been issued and released, pursuant to the terms of the applicable compensation program. Service-Based RSUs The majority of the annual compensation the Company provides to non-employee members of its board of directors is paid in the form of RSUs. In addition, certain such 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 39,000 and 58,000 service-based RSUs were granted to the Company’s non-employee directors as a result of these payments and elections during the nine months ended September 30, 2021 and 2020, respectively, with an estimated grant date fair value of $1.6 million and $1.4 million, respectively. During the nine months ended September 30, 2021 and 2020, the Company granted approximately 461,000 and 683,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $19.2 million and $18.3 million, respectively. During the nine months ended September 30, 2021 and 2020, the Company granted approximately 2,000 and 10,000 RSUs to non-employee consultants that are generally subject to service-based vesting. The RSUs granted will vest 50% on the first anniversary of the grant date, and the remaining 50% will vest quarterly thereafter through the second anniversary of the grant date. The estimated aggregate grant date fair value of the RSUs granted to non-employee consultants during the nine months ended September 30, 2021 and 2020 was $0.1 million and $0.2 million, respectively. Performance-Based RSUs In March 2021 and 2020, the Company granted approximately 228,000 and 115,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $9.5 million and $3.1 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 2021 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 2021 Bonus RSUs will vest, subject to continued employment, in March 2022. Substantially all of the 2020 Bonus RSUs vested in March 2021 upon the determination of the level of achievement of the performance goals. Additionally, in March 2021 and 2020, the Company granted approximately 110,000 and 144,000 long-term, performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair value of the Executive RSUs was $4.6 million for the 2021 grants and $3.9 million for the 2020 grants. Vesting of the Executive RSUs is and was dependent upon the Company’s achievement of defined performance goals over a two-year period. The vesting of Executive RSUs will ultimately range from 0% to 150% of the number of shares underlying the Executive RSUs granted based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the number of Executive RSUs earned based on performance 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. During March 2021 and 2020, the Company awarded additional shares underlying performance-based RSUs to the Company’s executives for over-achievement of performance targets related to the Executive RSUs originally awarded in 2019 and 2018 in the amounts of 3,000 shares and 20,000 shares, respectively. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity Transactions | Equity Transactions Preferred Stock The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. The Company previously issued and converted 1.5 million shares of preferred stock. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of September 30, 2021 and December 31, 2020. As of September 30, 2021 and December 31, 2020, there were no outstanding shares of preferred stock. Share Repurchases and Retirement In February 2021, the Company announced that its Board of Directors had authorized the repurchase of up to $300.0 million of its common stock through December 31, 2022. This time frame can be extended or shortened by the Board of Directors. Repurchases are made from time to time on the open market at prevailing prices or in negotiated transactions off the market. All shares are immediately retired upon repurchase in accordance with the board-approved policy. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired first, to additional paid-in capital, and then to retained earnings. The portion to be allocated to additional paid-in capital is calculated by applying a percentage, determined by dividing the number of shares to be retired by the number of shares outstanding, to the balance of additional paid-in capital as of the date of retirement. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table summarizes the Company’s services revenue for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Commercial services revenue: Voice and data $ 45,737 $ 42,736 $ 130,444 $ 126,748 IoT data 30,040 25,410 82,018 71,802 Broadband 11,461 9,120 31,531 26,339 Hosted payload and other data 14,649 14,511 43,867 46,213 Total commercial services revenue 101,887 91,777 287,860 271,102 Government services revenue 25,887 25,137 77,387 75,137 Total services revenue $ 127,774 $ 116,914 $ 365,247 $ 346,239 The following table summarizes the Company’s engineering and support services revenue for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Commercial $ 1,249 $ 1,127 $ 2,978 $ 3,264 Government 6,238 8,311 17,781 20,231 Total engineering and support services revenue $ 7,487 $ 9,438 $ 20,759 $ 23,495 Approximately 24% and 35% of the Company's accounts receivable balance at September 30, 2021 and December 31, 2020, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. The Company's contracts with customers generally do not contain performance obligations with terms in excess of one year. As such, the Company does not disclose details related to the value of performance obligations that are unsatisfied as of the end of the reporting period. The total value of any performance obligations that extend beyond a year is immaterial to the financial statements. 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 unbilled 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 $10.6 million and $9.5 million during the three months ended September 30, 2021 and 2020, respectively, and $32.4 million and $33.5 million during the nine months ended September 30, 2021 and 2020, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (In thousands) Contract Assets: Commissions $ 1,066 $ 993 Other contract costs 2,634 2,860 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Tax BenefitLoss before income taxes was $3.5 million and $23.5 million for the three and nine months ended September 30, 2021, respectively while the income tax benefit was $1.5 million and $20.0 million for the three and nine months ended September 30, 2021, respectively. The effective tax rates were 46.1% and 90.4% for the three and nine months ended September 30, 2021, respectively. The effective tax rate for the three-month period ended September 30, 2021 differed from the federal statutory rate of 21% primarily due to the net impact of a discrete tax benefit associated with the stock compensation tax deduction and the decrease to the prior year valuation allowance for state net operating losses, offset by a discrete state tax expense associated with state apportionment changes. The effective tax rate for the nine-month period ended September 30, 2021 differed from the federal statutory rate of 21% primarily due to the net impact of the discrete state tax benefit associated with state apportionment changes, a stock compensation tax deduction and the Company's U.S. tax credits. Loss before income taxes was $9.7 million and $71.1 million for the three and nine months ended September 30, 2020, respectively, while the income tax benefit was $5.7 million and $22.9 million for the three and nine months ended September 30, 2020, respectively. The effective tax rates were 58.8% and 32.6% for the three and nine months ended September 30, 2020, respectively. The effective tax rate for the three-month period ended September 30, 2020 differed from the federal statutory rate of 21% primarily due to the net impact of the tax benefit from U.S. state tax losses, the discrete tax benefits associated with the stock compensation tax deduction, and a decrease in the prior year valuation allowance for state net operating losses, offset by the discrete tax expense associated with the Company’s U.S. tax credits. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Loss Per Share The Company calculates basic net loss per share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In periods of net income, diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. Potentially dilutive common shares include (i) common stock issuable upon exercise of outstanding stock options, and (ii) contingently issuable RSUs that are convertible into shares of common stock upon achievement of certain service and performance requirements. The effect of potentially dilutive common shares is computed using the treasury stock method. The RSUs granted to members of the Company’s board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. As a result, the calculation of basic and diluted net income per share excludes net income attributable to the unvested RSUs granted to the Company’s board of directors from the numerator and excludes the impact of the unvested RSUs granted to the Company’s board of directors from the denominator. The following table summarizes the computations of basic and diluted net loss per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands, except per share data) Numerator: Net loss - basic and diluted $ (2,085) $ (4,005) (3,435) (48,129) Denominator: Weighted average common shares - basic and diluted 132,869 133,760 133,763 133,177 Net loss per share - basic and diluted $ (0.02) $ (0.03) $ (0.03) $ (0.36) Due to the Company’s net loss position for the three and nine months ended September 30, 2021 and 2020, all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. Unvested performance-based RSUs were not included in the computation of basic and diluted net loss per share as certain performance criteria had not yet been satisfied. The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Performance-based RSUs 49 79 101 129 Service-based RSUs 404 435 547 520 Stock options 1,130 1,870 1,236 2,028 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Aireon LLC and Aireon Holdings LLC The Company's satellite constellation hosts the Aireon ® system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast (“ADS-B”) receivers. The Company formed 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 the Company a fee to host the ADS-B receivers on its constellation, as well as fees for power and data services in connection with the delivery of the air traffic surveillance data. Pursuant to agreements with Aireon, Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $54.5 million had been paid as of September 30, 2021. Aireon also pays power fees of up to approximately $3.7 million per year under a hosting agreement (the “Hosting Agreement”), as well as data services fees of approximately $19.8 million per year for the delivery of the air traffic surveillance data under a data transmission services agreement. The Aireon ADS-B receivers were activated on an individual basis as the satellite on which the receiver is hosted began carrying traffic. Pursuant to ASU 2016-02, the Company considers the Hosting Agreement an operating lease. The Company recognized $4.0 million of hosting fee revenue for each of the three months ended September 30, 2021 and 2020 and $12.0 million for each of the nine months ended September 30, 2021 and 2020. Aireon receivables under the Hosting Agreement totaled $3.5 million as of September 30, 2021. There were no such receivables as of December 31, 2020. The Company recorded power and data service revenue from Aireon of $5.9 million for each of the three months ended September 30, 2021 and 2020, and $17.6 million and $18.0 million for the nine months ended September 30, 2021 and 2020, respectively. Under two services agreements, the Company also provides Aireon with administrative services and support services, the fees for which are paid monthly. Aireon receivables due to the Company under these two agreements totaled $2.0 million and $2.3 million as of September 30, 2021 and December 31, 2020, respectively. In December 2018, in connection with Aireon's entry into a debt facility, the Company and the other Aireon investors contributed their respective interests in Aireon into a new holding company, Aireon Holdings LLC, and entered into an amended and restated LLC agreement (the “Amended and Restated Limited Liability Company Agreement”). Aireon Holdings LLC holds 100% of the membership interests in Aireon LLC, which remains the operating entity. At each of September 30, 2021 and December 31, 2020, the Company's fully diluted ownership stake in Aireon Holdings LLC was approximately 35.7%, subject to certain redemption provisions contained in the Amended and Restated Limited Liability Company Agreement. In addition, pursuant to a debt facility for Aireon LLC provided by the Company and the other Aireon investors, the Company will participate pro-rata, based on its fully diluted ownership stake, in an investor bridge loan. In December 2020, the Company invested $0.2 million in the Aireon LLC debt facility, which was subsequently repaid in June 2021. The Company’s maximum commitment under the investor bridge loan is $10.7 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. Adoption of ASU 2019-12 on January 1, 2021 had no impact on the Company's condensed consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 was further amended in January 2021 when the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarified the applicability of certain provisions. Both ASU 2020-04 and ASU 2021-01 are currently effective prospectively for all entities through December 31, 2022 when the reference rate replacement activity is expected to have been completed. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. As of September 30, 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") which was executed in July 2021. This allowed the Company to assume that the index upon which future interest payments on the hedged portion of the Term Loan (see Note 5 ) will be based matches the index on the Cap. Adoption of this practical expedient had no impact on the Company's condensed consolidated financial statements upon adoption. The Company has not yet adopted any other expedients and will continue to evaluate the impact this standard may have on its consolidated financial statements. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. 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 the following financial instruments approximated their fair values as of September 30, 2021 and December 31, 2020: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its fixed income debt investments and derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of September 30, 2021 and December 31, 2020. |
Lessee, Leases [Policy Text Block] | Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption, Cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the condensed consolidated balance sheets within other current liabilities and other assets. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive loss within the Company’s condensed consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative's change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the condensed consolidated statements of operations and comprehensive loss, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the Company’s condensed consolidated statements of cash flows, which is the same category as the item being hedged. See Note 6 for further information. |
Cash and Cash Equivalents, Re_2
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Company's Cash and Cash Equivalents | The following table presents the Company’s cash and cash equivalents as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Recurring Fair (In thousands) Cash and cash equivalents: Cash $ 43,323 $ 27,168 Money market funds 243,681 208,005 Level 2 Fixed income debt securities — 2,005 Level 2 Total cash and cash equivalents $ 287,004 $ 237,178 |
Investments Classified by Contractual Maturity Date | The following table presents the contractual maturities of the Company's fixed income debt securities as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) (In thousands) Mature within one year $ 2,002 $ 2,002 $ 5,530 $ 5,525 Mature after one year and within three years — — 2,024 2,023 Total $ 2,002 $ 2,002 $ 7,554 $ 7,548 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | The following table presents future income with respect to the Company’s operating leases in which it is the lessor existing at September 30, 2021, exclusive of the $16.1 million recognized during the nine months ended September 30, 2021, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2021 $ 5,361 2022 21,445 2023 21,445 2024 21,445 2025 21,445 Thereafter 98,907 Total lease income $ 190,048 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Interest incurred | The following table presents the interest and amortization of deferred financing fees related to the Term Loan for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Total interest incurred $ 18,462 $ 23,658 $ 61,018 $ 75,023 Amortization of deferred financing fees $ 1,148 $ 957 $ 3,115 $ 2,806 Capitalized interest $ 438 $ 861 $ 1,795 $ 2,367 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The following table presents the amount of unrealized gain or loss and related tax impact the Company recorded in comprehensive loss in its condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Unrealized gain (loss), net of tax $ 3,040 $ 1,794 $ 7,122 $ (9,008) Tax (benefit) 1,010 630 2,222 (3,159) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based Payment Arrangement, Option, Activity | Option Summary The following tables summarize the Company's stock option activity for the nine-months ended September 30, 2021 and 2020: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2020 2,554 $ 9.10 3.94 $ 77,182 Cancelled or expired (1) 7.78 Exercised (844) 8.46 $ 31,171 Forfeited (11) 15.45 Options outstanding at September 30, 2021 1,698 $ 9.38 3.54 $ 51,755 Options exercisable at September 30, 2021 1,592 $ 8.73 3.31 $ 49,552 Options exercisable and expected to vest at September 30, 2021 1,698 $ 9.37 3.54 $ 51,732 | Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2019 4,153 $ 8.78 4.03 $ 65,887 Cancelled or expired (4) 20.17 Exercised (944) 8.28 $ 18,654 Forfeited (13) 18.57 Options outstanding at September 30, 2020 3,192 $ 8.87 3.58 $ 53,332 Options exercisable at September 30, 2020 2,927 $ 8.13 3.24 $ 51,074 Options exercisable and expected to vest at September 30, 2020 3,187 $ 8.86 3.57 $ 53,297 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following tables summarize the Company’s RSU activity for the nine-months ended September 30, 2021 and 2020: RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 843 41.67 Forfeited (90) 28.41 Released (782) 21.22 Outstanding at September 30, 2021 2,635 $ 25.23 Vested and unreleased at September 30, 2021 (1) 860 | RSUs Weighted- (In thousands) Outstanding at December 31, 2019 2,702 $ 14.62 Granted 1,030 26.75 Forfeited (61) 16.81 Released (852) 15.73 Outstanding at September 30, 2020 2,819 $ 18.67 Vested and unreleased at September 30, 2020 (1) 802 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's service revenue | The following table summarizes the Company’s services revenue for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Commercial services revenue: Voice and data $ 45,737 $ 42,736 $ 130,444 $ 126,748 IoT data 30,040 25,410 82,018 71,802 Broadband 11,461 9,120 31,531 26,339 Hosted payload and other data 14,649 14,511 43,867 46,213 Total commercial services revenue 101,887 91,777 287,860 271,102 Government services revenue 25,887 25,137 77,387 75,137 Total services revenue $ 127,774 $ 116,914 $ 365,247 $ 346,239 |
Summary of Company's Engineering and Support Services Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Commercial $ 1,249 $ 1,127 $ 2,978 $ 3,264 Government 6,238 8,311 17,781 20,231 Total engineering and support services revenue $ 7,487 $ 9,438 $ 20,759 $ 23,495 |
Schedule of recognized contract costs | The following table presents contract assets not separately disclosed as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (In thousands) Contract Assets: Commissions $ 1,066 $ 993 Other contract costs 2,634 2,860 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income Per Share | The following table summarizes the computations of basic and diluted net loss per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands, except per share data) Numerator: Net loss - basic and diluted $ (2,085) $ (4,005) (3,435) (48,129) Denominator: Weighted average common shares - basic and diluted 132,869 133,760 133,763 133,177 Net loss per share - basic and diluted $ (0.02) $ (0.03) $ (0.03) $ (0.36) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Performance-based RSUs 49 79 101 129 Service-based RSUs 404 435 547 520 Stock options 1,130 1,870 1,236 2,028 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Cash | $ 43,323 | $ 27,168 |
Total cash and cash equivalents | 287,004 | 237,178 |
Debt Securities, Available-for-sale, Amortized Cost [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost | 2,002 | 5,530 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Three Years, Amortized Cost | 0 | 2,024 |
Debt Securities, Available-for-sale, Amortized Cost | 2,002 | 7,554 |
Debt Securities, Available-for-sale, Fair Value [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 2,002 | 5,525 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through ThreeYears, Fair Value | 0 | 2,023 |
Debt Securities, Available-for-sale | 2,002 | 7,548 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents: | ||
Money market funds | 243,681 | 208,005 |
Fixed income debt securities | $ 0 | $ 2,005 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessor, Lease, Description [Line Items] | ||||
Operating Lease, Lease Income | $ 5,400 | $ 5,400 | $ 16,100 | $ 16,100 |
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year | 5,361 | 5,361 | ||
Lessor, Operating Lease, Payment to be Received, Year One | 21,445 | 21,445 | ||
Lessor, Operating Lease, Payment to be Received, Year Two | 21,445 | 21,445 | ||
Lessor, Operating Lease, Payment to be Received, Year Three | 21,445 | 21,445 | ||
Lessor, Operating Lease, Payment to be Received, Year Four | 21,445 | 21,445 | ||
Lessor, Operating Lease, Payment to be Received, after Year Five | 98,907 | 98,907 | ||
Lessor, Operating Lease, Payments to be Received | $ 190,048 | $ 190,048 | ||
Next Generation Satellites | ||||
Lessor, Lease, Description [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 12 years 6 months |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($)Rate | Sep. 30, 2020USD ($) | Mar. 31, 2020 | Jul. 27, 2021Rate | Sep. 30, 2021USD ($)Rate | Sep. 30, 2020USD ($)Rate | Dec. 31, 2020USD ($)Rate | May 31, 2021USD ($) | Feb. 07, 2020USD ($) | Nov. 04, 2019USD ($)Rate | |
Line of Credit Facility [Line Items] | ||||||||||
Long-term Debt, Gross | $ 1,637,600 | $ 1,650,000 | ||||||||
July Repricing New OID | $ 4,100 | $ 4,100 | ||||||||
Extinguishment of Debt, Amount | 65,200 | |||||||||
Loss on extinguishment of debt | 879 | $ 0 | 879 | $ 30,209 | ||||||
Unamortized Deferred Financing Costs | 24,200 | 24,200 | 24,000 | |||||||
Credit Facility Carrying Amount | 1,601,000 | 1,601,000 | 1,613,600 | |||||||
Long-term Debt, Fair Value | 1,627,300 | 1,627,300 | 1,647,900 | |||||||
excess cash flow prepayment | $ 12,700 | $ 4,700 | ||||||||
First Lien Net Leverage Ratio | 6.25 | |||||||||
Interest Costs Incurred | 18,462 | 23,658 | 61,018 | 75,023 | ||||||
Amortization of Debt Issuance Costs and Discounts | 1,148 | 957 | 3,115 | 2,806 | ||||||
Interest Costs Capitalized | $ 438 | $ 861 | $ 1,795 | $ 2,367 | ||||||
Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term Debt, Gross | $ 100,000 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 3.75% | |||||||||
Debt Instrument, Periodic Payment, Principal | $ 16,500 | |||||||||
Credit Facility Drawdown Floor for Application of First Lien Net Leverage Ratio | Rate | 35.00% | 35.00% | ||||||||
Term Loan B (Original) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term Debt, Gross | $ 1,450,000 | |||||||||
Discount on Debt Issuance - Term Loan B | Rate | 99.50% | |||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 3.75% | |||||||||
Term Loan B (Additional) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term Debt, Gross | $ 200,000 | |||||||||
Debt Instrument, Redemption Price, Percentage | 1.00% | |||||||||
Refinanced Term Loan B | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term Debt, Gross | $ 1,625,300 | $ 1,625,300 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.50% | 2.75% | ||||||||
Unsecured Debt [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | Rate | 105.125% | |||||||||
Extinguishment of Debt, Amount | $ 360,000 | |||||||||
Redemption Premium | $ 23,500 | |||||||||
Interest Rate Floor [Member] | Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.00% | |||||||||
Interest Rate Floor [Member] | Term Loan B (Original) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.00% | |||||||||
Interest Rate Floor [Member] | Refinanced Term Loan B | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% | 1.00% |
Debt - Interest Incurred (Detai
Debt - Interest Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||||||
Payments of Financing Costs | $ 1,300 | $ 3,600 | ||||
Interest Costs Incurred | 18,462 | $ 23,658 | $ 61,018 | $ 75,023 | ||
Amortization of Debt Issuance Costs and Discounts | 1,148 | 957 | 3,115 | 2,806 | ||
Interest Costs Capitalized | 438 | $ 861 | 1,795 | $ 2,367 | ||
Interest Payable | $ 200 | $ 200 | $ 200 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Interest Rate Swap [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 1.8 | $ 2.7 | $ 6.6 | $ 6.4 | |
Interest Rate Swap [Member] | |||||
Interest Rate Swap [Line Items] | |||||
Derivative, Fixed Interest Rate | 1.565% | 1.565% | 1.565% | ||
Derivative, Notional Amount | $ 1,000 | $ 1,000 | $ 1,000 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 1 | $ 1 | $ 5.2 | ||
Interest Rate Swaption [Member] | |||||
Interest Rate Swap [Line Items] | |||||
Derivative, Fixed Interest Rate | 0.50% | 0.50% | 0.50% | ||
Derivative, Notional Amount | $ 1,000 | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 0.8 | $ 0.8 | $ 4.4 | ||
Proceeds from sale of derivative | $ 0.7 | ||||
Interest Rate Cap | |||||
Interest Rate Swap [Line Items] | |||||
Derivative, Fixed Interest Rate | 0.31% | 0.31% | |||
Derivative, Notional Amount | $ 1,000 | $ 1,000 | |||
Derivative, Cap Interest Rate | 1.50% | 1.50% | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 2.3 | $ 2.3 |
Derivatives - Summary of Unreal
Derivatives - Summary of Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Unrealized gain (loss), net of tax | $ 3,040 | $ 1,794 | $ 7,122 | $ (9,008) |
Tax (benefit) | $ 1,010 | $ 630 | $ 2,222 | $ (3,159) |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, number of shares available for grant (in shares) | 10,538,835 | |
Share-based compensation, reduction in shares available for issuance by shares issued pursuant to any appreciation award (in shares) | 1 | |
Share-based compensation, strike price as a percentage of the fair market value of the underlying stock on the date of grant | 100.00% | |
Share-based compensation, reduction in shares available for issuance by shares issued pursuant to any stock award that is not an appreciation award (in shares) | 1.8 | |
Employee Stock Option | Share-based Payment Arrangement, Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting period | 4 years | 4 years |
Share-based compensation, options granted (in shares) | 0 | 0 |
Share-based compensation, grant date fair value of stock options | $ 0 | $ 0 |
Stock Option Contractual Term | 10 years | 10 years |
Employee Stock Option | Share-based Payment Arrangement, Employee [Member] | Vesting on first anniversary of grant date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 25.00% | 25.00% |
Employee Stock Option | Share-based Payment Arrangement, Employee [Member] | Vesting on the last day of each calendar quarter | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 6.25% | 6.25% |
Restricted Stock Units (RSUs) [Member] | Vesting on the last day of each calendar quarter | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 150.00% | 150.00% |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, grant date fair value of stock options | $ 0.1 | $ 0.2 |
Granted - restricted stock units | 2,000 | 10,000 |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | Vesting on first anniversary of grant date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 50.00% | 50.00% |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | Vesting on the last day of each calendar quarter | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 12.50% | 12.50% |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting period | 4 years | 4 years |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting on first anniversary of grant date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 25.00% | 25.00% |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting on the last day of each calendar quarter | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 6.25% | 6.25% |
Restricted Stock Units (RSUs) [Member] | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Ratably Vest After | 100.00% | 100.00% |
Performance Based RSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting period | 1 year | 1 year |
Performance Based RSU | Executives | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting period | 3 years | 3 years |
Share-based compensation, grant date fair value of stock options | $ 4.6 | $ 3.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 3,000 | 20,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Period | 2 years | 2 years |
Granted - restricted stock units | 110,000 | 144,000 |
Performance Based RSU | Executives | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 0.00% | 0.00% |
Performance Based RSU | Executives | Vesting on first anniversary of grant date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 50.00% | 50.00% |
Performance Based RSU | Executives | Vesting on the last day of each calendar quarter | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, vesting percentage, year one | 50.00% | 50.00% |
Service Based RSU | Share-based Payment Arrangement, Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, grant date fair value of stock options | $ 19.2 | $ 18.3 |
Granted - restricted stock units | 461,000 | 683,000 |
Service Based RSU | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, grant date fair value of stock options | $ 1.6 | $ 1.4 |
Granted - restricted stock units | 39,000 | 58,000 |
Performance Based Bonus RSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, grant date fair value of stock options | $ 9.5 | $ 3.1 |
Performance Based Bonus RSU | Share-based Payment Arrangement, Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted - restricted stock units | 228,000 | 115,000 |
Outstanding Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted - restricted stock units | 843,000 | 1,030,000 |
Stock-Based Compensation Activi
Stock-Based Compensation Activity of Company's Common Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||
Options outstanding, beginning of period (in shares) | 2,554 | 4,153 | 4,153 | |
Cancelled or Expired (Shares) | (1) | (4) | ||
Exercised (Shares) | (844) | (944) | ||
Exercised (Dollar Value) | $ 31,171 | $ 18,654 | ||
Forfeited (Shares) | (11) | (13) | ||
Options outstanding, end of period (in shares) | 1,698 | 3,192 | 2,554 | 4,153 |
Options exercisable, end of period (in shares) | 1,592 | 2,927 | ||
Options exercisable and expected to vest, end of period (in shares) | 1,698 | 3,187 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Options outstanding, beginning of period - weighted average exercise price per share | $ 9.10 | $ 8.78 | $ 8.78 | |
Options cancelled or expired - weighted average exercise price per share | 7.78 | 20.17 | ||
Options exercised - weighted average exercise price per share | 8.46 | 8.28 | ||
Options forfeited - weighted average exercise price per share | 15.45 | 18.57 | ||
Options outstanding, end of period - weighted average exercise price per share | 9.38 | 8.87 | $ 9.10 | $ 8.78 |
Options exercisable, end of period - weighted average exercise price per share | 8.73 | 8.13 | ||
Options exercisable, end of period - weighted average exercise price per share | $ 9.37 | $ 8.86 | ||
Options outstanding, end of period - weighted average remaining contractual term (years) | 3 years 6 months 14 days | 3 years 6 months 29 days | 3 years 11 months 8 days | 4 years 10 days |
Options exercisable, end of period - weighted average remaining contractual term (years) | 3 years 3 months 21 days | 3 years 2 months 26 days | ||
Options exercisable and expected to vest, end of period - Weighted Average Remaining Contractual Term (Years) | 3 years 6 months 14 days | 3 years 6 months 25 days | ||
Aggregate Intrinsic Value | ||||
Options outstanding, end of period - aggregate intrinsic value | $ 51,755 | $ 53,332 | $ 77,182 | $ 65,887 |
Options exercisable, end of period - aggregate intrinsic value | 49,552 | 51,074 | ||
Options exercisable and expected to vest, end of period - aggregate intrinsic value | $ 51,732 | $ 53,297 |
Stock-Based Compensation Outsta
Stock-Based Compensation Outstanding RSUs (Details) - Outstanding Restricted Stock Units - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
RSUs | ||
Outstanding - restricted stock units | 2,664 | 2,702 |
Granted - restricted stock units | 843 | 1,030 |
Forfeited - restricted stock units | (90) | (61) |
Released - restricted stock units | (782) | (852) |
Outstanding - restricted stock units | 2,635 | 2,819 |
Vested and unreleased restricted stock units | 860 | 802 |
Weighted- Average Grant Date Fair Value Per RSU | ||
Outstanding - weighted average grant date fair value per RSU | $ 18.96 | $ 14.62 |
Granted - weighted average grant date fair value per RSU | 41.67 | 26.75 |
Forfeited - weighted average grant date fair value per RSU | 28.41 | 16.81 |
Released - weighted average grant date fair value per RSU | 21.22 | 15.73 |
Outstanding - weighted average grant date fair value per RSU | $ 25.23 | $ 18.67 |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Feb. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Preferred stock, shares issued (in shares) | 1,500,000 | ||||
Shares of preferred stock, undesignated and unissued (in shares) | 500,000 | 500,000 | 500,000 | ||
Total Authorized Preferred Stock, Number | 2,000,000 | 2,000,000 | |||
Stock Repurchase Program, Authorized Amount | $ 300 | ||||
Treasury Stock, Shares, Retired | 100,000 | 3,400,000 | |||
Treasury Stock, Retired, Cost Method, Amount | $ 2.6 | $ 125.1 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 174.9 | $ 174.9 | |||
Series B Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | 500,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares issued (in shares) | 500,000 | 500,000 | 500,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||
Series A | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares issued (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Liability, revenue recognized | $ 10.6 | $ 9.5 | $ 32.4 | $ 33.5 |
Accounts Receivable [Member] | Customer Concentration Risk | Prime Contracts with the US Government [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 24.00% | 35.00% |
Revenue - Summary of Service Re
Revenue - Summary of Service Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 162,159 | $ 151,472 | $ 458,613 | $ 436,932 |
Voice and data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 45,737 | 42,736 | 130,444 | 126,748 |
Commercial Broadband Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,461 | 9,120 | 31,531 | 26,339 |
IoT data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,040 | 25,410 | 82,018 | 71,802 |
Hosted payload and other data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,649 | 14,511 | 43,867 | 46,213 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 127,774 | 116,914 | 365,247 | 346,239 |
Services | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101,887 | 91,777 | 287,860 | 271,102 |
Services | US Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,887 | 25,137 | 77,387 | 75,137 |
Engineering and support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,487 | 9,438 | 20,759 | 23,495 |
Engineering and support services | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,249 | 1,127 | 2,978 | 3,264 |
Engineering and support services | US Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 6,238 | $ 8,311 | $ 17,781 | $ 20,231 |
Revenue - Summary of Contract C
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 1,066 | $ 993 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 2,634 | $ 2,860 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (3,545) | $ (9,690) | $ (23,477) | $ (71,072) |
Income tax benefit | $ 1,460 | $ 5,685 | $ 20,042 | $ 22,943 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Percent | 46.10% | 58.80% | 90.40% | 32.60% |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) - basic and diluted | $ (2,085) | $ (4,005) | $ (3,435) | $ (48,129) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 132,869 | 133,760 | 133,763 | 133,177 |
Earnings Per Share, Basic and Diluted | $ (0.02) | $ (0.03) | $ (0.03) | $ (0.36) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-Dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Performance Based RSU | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 49 | 79 | 101 | 129 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 404 | 435 | 547 | 520 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 1,130 | 1,870 | 1,236 | 2,028 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Ownership stake | 35.70% | 35.70% | 35.70% | ||
Aireon Investor Bridge Loan | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investments | $ 0.2 | ||||
Investor Bridge Loan Commitment | $ 10.7 | $ 10.7 | 10.7 | ||
Equity Method Investee | Hosting Agreement | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 4 | $ 4 | 12 | $ 12 | |
Equity Method Investee | Service Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 5.9 | $ 5.9 | 17.6 | $ 18 | |
Equity Method Investee | Administrative and support agreement accounts receivable | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | 2 | 2 | 2.3 | ||
Equity Method Investee | Hosted Payload Receivables | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | $ 3.5 | 3.5 | $ 0 | ||
Maximum [Member] | Equity Method Investee | Hosting Agreement | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 200 | ||||
Maximum [Member] | Equity Method Investee | Power Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 3.7 | ||||
Maximum [Member] | Equity Method Investee | Service Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 19.8 | ||||
Minimum [Member] | Equity Method Investee | Hosting Agreement | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 54.5 |