Document And Entity Information
Document And Entity Information - $ / shares | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 20, 2022 | Dec. 31, 2021 | |
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 | Jun. 30, 2022 | ||
Document Fiscal Period Focus | Q2 | ||
Document Fiscal Year Focus | 2022 | ||
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) | 126,973,833 | ||
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 227,197 | $ 320,913 |
Accounts receivable, net | 75,006 | 63,410 |
Inventory | 27,793 | 29,044 |
Prepaid expenses and other current assets | 12,827 | 11,043 |
Total current assets | 342,823 | 424,410 |
Property and equipment, net | 2,541,155 | 2,662,336 |
Other assets | 149,582 | 50,050 |
Intangible assets, net | 43,223 | 43,999 |
Total assets | 3,076,783 | 3,180,795 |
Current liabilities: | ||
Short-term secured debt | 16,500 | 16,500 |
Accounts payable | 14,114 | 16,196 |
Accrued expenses and other current liabilities | 40,559 | 48,122 |
Deferred revenue | 34,817 | 28,018 |
Total current liabilities | 105,990 | 108,836 |
Long-term secured debt, net | 1,575,509 | 1,581,516 |
Deferred income tax liabilities, net | 149,107 | 134,279 |
Deferred revenue, net of current portion | 46,796 | 48,070 |
Other long-term liabilities | 18,277 | 20,147 |
Total liabilities | 1,895,679 | 1,892,848 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized, 127,179 and 131,342 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 127 | 131 |
Additional paid-in capital | 1,128,103 | 1,154,058 |
Retained earnings | 21,011 | 140,810 |
Accumulated other comprehensive income (loss), net of tax | 31,863 | (7,052) |
Total stockholders’ equity | 1,181,104 | 1,287,947 |
Total liabilities and stockholders’ equity | $ 3,076,783 | $ 3,180,795 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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) | 127,179,000 | 131,342,000 |
Common stock, shares outstanding (in shares) | 127,179,000 | 131,342,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 174,919 | $ 149,919 | $ 343,138 | $ 296,454 |
Operating expenses: | ||||
Research and development | 2,986 | 2,624 | 5,605 | 5,341 |
Selling, general and administrative | 28,662 | 23,970 | 54,765 | 46,627 |
Depreciation and amortization | 75,681 | 75,668 | 151,342 | 151,578 |
Total operating expenses | 154,120 | 138,324 | 303,106 | 275,843 |
Operating income | 20,799 | 11,595 | 40,032 | 20,611 |
Other expense, net: | ||||
Interest expense, net | (14,780) | (17,630) | (29,357) | (40,399) |
Other expense, net | (220) | (116) | (228) | (144) |
Total other expense, net | (15,000) | (17,746) | (29,585) | (40,543) |
Income (loss) before income taxes | 5,799 | (6,151) | 10,447 | (19,932) |
Income tax benefit (expense) | (1,242) | 9,984 | (3,066) | 18,582 |
Net income (loss) | $ 4,557 | $ 3,833 | $ 7,381 | $ (1,350) |
Weighted Average Number of Shares Outstanding, Basic | 128,351 | 133,367 | 129,355 | 134,215 |
Weighted Average Number of Shares Outstanding, Diluted | 129,611 | 134,981 | 130,811 | 134,215 |
Earnings Per Share, Basic and Diluted | $ 0.04 | $ 0.03 | $ 0.06 | $ (0.01) |
Comprehensive income: | ||||
Net income (loss) | $ 4,557 | $ 3,833 | $ 7,381 | $ (1,350) |
Foreign currency translation adjustments | (794) | 1,178 | 481 | 421 |
Unrealized Gain on Cash Flow Hedging, net of tax | 10,442 | 239 | 38,434 | 4,082 |
Comprehensive income | $ 14,205 | $ 5,250 | $ 46,296 | $ 3,153 |
Earnings Per Share, Diluted | $ 0.04 | $ 0.03 | $ 0.06 | $ (0.01) |
Services | ||||
Revenue: | ||||
Total revenue | $ 132,861 | $ 121,321 | $ 258,970 | $ 237,473 |
Operating expenses: | ||||
Cost of Goods and Services Sold | 25,320 | 23,391 | 49,418 | 46,598 |
Subscriber equipment | ||||
Revenue: | ||||
Total revenue | 33,759 | 21,756 | 67,503 | 45,709 |
Operating expenses: | ||||
Cost of Goods and Services Sold | 21,471 | 12,671 | 41,976 | 25,699 |
Engineering and support services | ||||
Revenue: | ||||
Total revenue | $ 8,299 | $ 6,842 | $ 16,665 | $ 13,272 |
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, 2020 | 134,056 | |||||
Beginning Balance at Dec. 31, 2020 | $ 1,419,439 | $ 134 | $ 1,160,570 | $ (17,180) | $ 275,915 | |
Stock-based compensation | 13,979 | 13,979 | ||||
Stock options exercised and awards vested (in shares) | 1,278 | |||||
Stock options exercised and awards vested | 4,815 | 1 | 4,814 | |||
Stock withheld to cover employee taxes (in shares) | (115) | |||||
Stock withheld to cover employee taxes | (4,740) | (4,740) | ||||
Repurchases and retirements of common stock (in shares) | (3,291) | |||||
Repurchases and retirements of common stock | (122,468) | (3) | (28,463) | (94,002) | ||
Cumulative translation adjustment | 421 | 421 | ||||
Unrealized Gain on Cash Flow Hedging, net of tax | 4,082 | 4,082 | ||||
Net income (loss) | (1,350) | (1,350) | ||||
Ending Balance (in shares) at Jun. 30, 2021 | 131,928 | |||||
Ending Balance at Jun. 30, 2021 | 1,314,178 | 132 | 1,146,160 | (12,677) | 180,563 | |
Beginning Balance (in shares) at Mar. 31, 2021 | 133,476 | |||||
Beginning Balance at Mar. 31, 2021 | 1,363,778 | 133 | 1,152,569 | (14,094) | 225,170 | |
Stock-based compensation | 8,404 | 8,404 | ||||
Stock options exercised and awards vested (in shares) | 179 | |||||
Stock options exercised and awards vested | 421 | 0 | 421 | |||
Stock withheld to cover employee taxes (in shares) | (14) | |||||
Stock withheld to cover employee taxes | (542) | (542) | ||||
Repurchases and retirements of common stock (in shares) | (1,713) | |||||
Repurchases and retirements of common stock | (63,133) | (1) | (14,692) | (48,440) | ||
Cumulative translation adjustment | 1,178 | 1,178 | ||||
Unrealized Gain on Cash Flow Hedging, net of tax | 239 | 239 | ||||
Net income (loss) | 3,833 | 3,833 | ||||
Ending Balance (in shares) at Jun. 30, 2021 | 131,928 | |||||
Ending Balance at Jun. 30, 2021 | 1,314,178 | 132 | 1,146,160 | (12,677) | 180,563 | |
Beginning Balance (in shares) at Dec. 31, 2021 | 131,342 | |||||
Beginning Balance at Dec. 31, 2021 | 1,287,947 | 131 | 1,154,058 | (7,052) | 140,810 | |
Stock-based compensation | 19,379 | 19,379 | ||||
Stock options exercised and awards vested (in shares) | 736 | |||||
Stock options exercised and awards vested | 670 | 1 | 669 | |||
Stock withheld to cover employee taxes (in shares) | (104) | |||||
Stock withheld to cover employee taxes | (4,024) | (4,024) | ||||
Repurchases and retirements of common stock (in shares) | (4,795) | |||||
Repurchases and retirements of common stock | (169,164) | (5) | (41,979) | (127,180) | ||
Cumulative translation adjustment | 481 | 481 | ||||
Unrealized Gain on Cash Flow Hedging, net of tax | 38,434 | 38,434 | ||||
Net income (loss) | 7,381 | 7,381 | ||||
Ending Balance (in shares) at Jun. 30, 2022 | 127,179 | |||||
Ending Balance at Jun. 30, 2022 | 1,181,104 | 127 | 1,128,103 | 31,863 | 21,011 | |
Beginning Balance (in shares) at Mar. 31, 2022 | 128,031 | |||||
Beginning Balance at Mar. 31, 2022 | 1,191,776 | 128 | 1,126,514 | 22,215 | 42,919 | |
Stock-based compensation | 10,440 | 10,440 | ||||
Stock options exercised and awards vested (in shares) | 130 | |||||
Stock options exercised and awards vested | 147 | 0 | 147 | |||
Stock withheld to cover employee taxes (in shares) | (13) | |||||
Stock withheld to cover employee taxes | (466) | (466) | ||||
Repurchases and retirements of common stock (in shares) | (969) | |||||
Repurchases and retirements of common stock | (34,998) | (1) | (8,532) | (26,465) | ||
Cumulative translation adjustment | (794) | (794) | ||||
Unrealized Gain on Cash Flow Hedging, net of tax | 10,442 | 10,442 | ||||
Net income (loss) | 4,557 | 4,557 | ||||
Ending Balance (in shares) at Jun. 30, 2022 | 127,179 | |||||
Ending Balance at Jun. 30, 2022 | $ 1,181,104 | $ 127 | $ 1,128,103 | $ 31,863 | $ 21,011 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 4,557 | $ 3,833 | $ 7,381 | $ (1,350) | |
Deferred income taxes | 2,364 | (18,922) | |||
Depreciation and amortization | 75,681 | 75,668 | 151,342 | 151,578 | |
Stock-based compensation (net of amounts capitalized) | 17,924 | 12,539 | |||
Amortization of deferred financing fees | 2,319 | 1,914 | |||
All other items, net | 194 | (558) | |||
Accounts receivable | (11,230) | (2,123) | |||
Inventory | 1,545 | 4,351 | |||
Prepaid expenses and other current assets | (1,002) | (656) | |||
Other assets | 828 | 1,754 | |||
Accounts payable | (1,129) | (4,153) | |||
Accrued expenses and other current liabilities | (6,732) | (7,199) | |||
Interest Payable | 40 | $ (46) | |||
Deferred revenue | 3,577 | (9,312) | |||
Other long-term liabilities | (1,856) | (1,850) | |||
Net cash provided by operating activities | 165,565 | 125,967 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (31,018) | (19,229) | |||
Payments to Acquire Equity Method Investments | (50,000) | 0 | |||
Purchases of other investments | 0 | (1,128) | |||
Maturities of marketable securities | 0 | 1,420 | |||
Net cash used in investing activities | (81,018) | (18,937) | |||
Cash flows from financing activities: | |||||
Payments on the Term Loan | (8,250) | (8,829) | |||
Repurchases of common stock | (169,164) | (122,468) | |||
Proceeds from exercise of stock options | 670 | 4,815 | |||
Tax payment upon settlement of stock awards | 4,024 | 4,740 | |||
Net cash used in financing activities | (180,768) | (131,222) | |||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 2,505 | 422 | |||
Net decrease in cash and cash equivalents, and restricted cash | (93,716) | (23,770) | |||
Cash, cash equivalents, and restricted cash, beginning of period | 320,913 | 237,178 | |||
Cash, cash equivalents, and restricted cash, end of period | $ 227,197 | $ 213,408 | 227,197 | 213,408 | |
Supplemental cash flow information: | |||||
Interest paid, net of amounts capitalized | 27,587 | 35,721 | |||
Income taxes paid, net | 938 | 903 | |||
Supplemental disclosure of non-cash investing activities: | |||||
Property and equipment received but not paid | 4,747 | 2,597 | |||
Capitalized amortization of deferred financing costs | 63 | 65 | |||
Capitalized stock-based compensation | $ 1,455 | $ 1,441 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2022 | |
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 primarily 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 respective 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, 2021, as filed with the SEC on February 17, 2022. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“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. During 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") executed in July 2021 (see Note 6 ). 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. Effective June 30, 2022, the Company adopted FASB ASU 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features (“ASU 2017-11”). Part I of ASU 2017-11 simplified the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings. The Company also adopted FASB ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivatives and Hedging (“ASU 2020-06”). ASU 2020-06 simplified the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. As a result of these adoptions, the Company was permitted to exclude the down-round feature of its investment in Aireon LLC (“Aireon”) from the consideration of whether the instrument is indexed to the entity's own stock (see Note 12 ). 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 June 30, 2022 and December 31, 2021: (1) cash and cash equivalents, (2) prepaid expenses and other current assets, (3) accounts receivable, (4) accounts payable, and (5) accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents may include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of June 30, 2022 or December 31, 2021. 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 (1) right-of-use (“ROU”) assets within other assets, and (2) ROU liabilities within accrued expenses and other liabilities and are included 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 assets also include any lease payments made and exclude 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. Inventory Inventory consists primarily of finished goods and raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. The following table summarizes the Company's inventory balances: June 30, 2022 December 31, 2021 (In thousands) Finished goods $ 11,455 $ 18,395 Raw materials 17,414 11,850 Inventory valuation reserve (1,076) (1,201) Total $ 27,793 $ 29,044 Commitments Launch and Related Services In the second quarter of 2022, the Company entered into an agreement for launch and related services, to launch up to five of its ground spare satellites. The Company expects costs related to this launch to total approximately $35.0 million. As of June 30, 2022, the Company had made aggregate payments of $7.5 million related to these services, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheets. The Company currently expects the launch to occur in 2023. Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption and 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 income (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 income, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | Cash and Cash Equivalents Cash and Cash Equivalents The following table presents the Company’s cash and cash equivalents balances: June 30, 2022 December 31, 2021 Recurring Fair (In thousands) Cash and cash equivalents: Cash $ 33,067 $ 28,496 Money market funds 194,130 292,417 Level 2 Total cash and cash equivalents $ 227,197 $ 320,913 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | Leases Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with 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 $5.3 million for each of the three months ended June 30, 2022 and 2021, and $10.7 million for each of the six months ended June 30, 2022 and 2021. 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 income. Aireon has made payments to the Company pursuant to its hosting agreement, and the Company expects Aireon will continue to do so. L3Harris has prepaid all amounts owed to the Company pursuant to its hosting arrangement. The following table presents future income with respect to the Company’s operating leases in which it is the lessor existing at June 30, 2022, exclusive of the $10.7 million recognized during the six months ended June 30, 2022, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2022 $ 10,722 2023 21,445 2024 21,445 2025 21,445 2026 21,445 Thereafter 77,462 Total lease income $ 173,964 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan and Revolving Facility In November 2019 and February 2020, pursuant to a loan agreement (as amended to date, the “Credit Agreement”), the Company entered into a term loan totaling $1,650.0 million in aggregate principal amount with Deutsche Bank AG (the “Term Loan”) and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Term Loan was repriced on multiple occasions and now bears interest at an annual rate of one-month LIBOR plus 2.50%, with a 0.75% LIBOR floor. The maturity date of the Term Loan is in November 2026. The interest rate on the Revolving Facility is LIBOR plus 3.75%, with no LIBOR floor, and the Revolving Facility has a maturity date in November 2024. Principal payments, payable quarterly, equal $16.5 million per annum (one percent of the full principal amount of the Term Loan), with the remaining principal due upon maturity. As of June 30, 2022 and December 31, 2021, the Company reported an aggregate of $1,612.9 million and $1,621.1 million in borrowings under the Term Loan, respectively. These amounts do not include $20.9 million and $23.1 million of net unamortized deferred financing costs as of June 30, 2022 and December 31, 2021, respectively. The net principal balance in borrowings in the accompanying condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 amounted to $1,592.0 million and $1,598.0 million, respectively. As of June 30, 2022 and December 31, 2021, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the borrowings under the Term Loan was $1,552.4 million and $1,622.1 million, respectively. The Company had not borrowed under the Revolving Facility as of June 30, 2022 and December 31, 2021. 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” as defined in the Credit Agreement) 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. As of December 31, 2021, the Company was below the specified leverage ratio, and a mandatory prepayment sweep was therefore not required with respect to 2021 cash flows. 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 June 30, 2022. Interest on Debt Total interest incurred includes amortization of deferred financing fees and capitalized interest. The following table presents the interest and amortization of deferred financing fees related to the Term Loan: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Total interest incurred $ 15,931 $ 18,576 $ 31,233 $ 38,713 Amortization of deferred financing fees $ 1,200 $ 1,000 $ 2,382 $ 1,973 Capitalized interest $ 475 $ 715 $ 864 $ 1,357 As of June 30, 2022 and December 31, 2021, accrued interest on the Term Loan was $0.2 million and $0.1 million, respectively. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
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 cap and swap contracts which result in recognizing a maximum fixed interest rate for a portion of the Term Loan. These instruments 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 Swap and Swaption The Company previously entered into a long-term interest rate swap (“Swap”) to mitigate variability in forecasted interest payments on a portion of the Company’s borrowings under the Term Loan. The Swap expired in November 2021. Under the Swap, on the last business day of each month, the Company received variable interest payments based on one-month LIBOR from the counterparty. The Company paid 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 paid a fixed annual rate of 0.50%. At inception, the Swap and Swaption were designated as cash flow hedges for hedge accounting. The unrealized changes in market value were recorded in accumulated other comprehensive income (loss) and any remaining balance 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 2021 repricing, at that time the Company elected to de-designate the Swap as a cash flow hedge. Accordingly, as the related interest payments were still probable, the accumulated balance within other comprehensive income (loss) as of the de-designation date was amortized into earnings through the November 2021 expiration date. The Company sold the Swaption in May 2021 for $0.7 million. The Company continued to pay the fixed annual rate for the Swaption through the term of the Swaption, which expired in November 2021. Interest Rate Cap In July 2021, the Company entered into the Cap that began in December 2021, following the expiration of the Swap. The Company entered into the Cap in order to manage its exposure to interest rate movements on a portion of the Term Loan through the maturity of the Term Loan in November 2026. The Cap provides the Company with the right to receive payment if one-month LIBOR exceeds 1.5%. As of December 2021, the Company began paying 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 June 30, 2022 and December 31, 2021. The Cap is designed to mirror the terms of the Term Loan and to offset 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 income (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 June 30, 2022 and December 31, 2021, the Company had an asset balance of $67.7 million and $19.7 million, respectively, for the fair value of the Cap and a liability balance of $12.7 million and $14.8 million, respectively, for the fair value of the Cap premium. Both the Cap and the Cap premium are recorded net within other assets. During the three and six months ended June 30, 2022, the Company collectively incurred $0.8 million and $1.6 million, respectively, in net interest expense for the Swaption and Cap. During the three and six months ended June 30, 2021, the Company collectively incurred $2.1 million and $4.8 million, respectively, in net interest expense for the Swap and Swaption. Gains and losses resulting from fair value adjustments to the Cap are recorded within accumulated other comprehensive income (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. Over the next 12 months, the Company expects any gains or losses for cash flow hedges amortized from accumulated other comprehensive income (loss) into earnings to have an immaterial impact on the Company’s consolidated financial statements. The following table presents the amount of unrealized gain or loss and related tax impact associated with the derivative instruments that the Company recorded in its condensed consolidated statements of operations and comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Unrealized gain, net of tax $ 10,442 $ 239 $ 38,434 $ 4,082 Tax expense 3,197 11 11,652 1,213 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 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 June 30, 2022, the remaining aggregate number of shares of the Company’s common stock available for future grants under the Amended 2015 Plan was 8,474,230. 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 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 fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The Company historically granted stock options to newly hired and promoted employees but now exclusively utilizes RSUs. The Company did not grant any stock options during the three and six months ended June 30, 2022 or 2021. Option Summary A summary of the activity of the Company's stock options is as follows: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2021 1,681 $ 9.35 3.28 $ 53,698 Exercised (71) 9.34 $ 2,056 Forfeited (2) 14.24 Options outstanding at June 30, 2022 1,608 $ 9.34 2.78 $ 45,361 Options exercisable at June 30, 2022 1,575 $ 9.09 2.70 $ 44,851 Options exercisable and expected to vest at June 30, 2022 1,607 $ 9.34 2.78 $ 45,358 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 (621) 7.62 $ 23,806 Forfeited (11) 15.37 Options outstanding at June 30, 2021 1,921 $ 9.55 3.73 $ 58,492 Options exercisable at June 30, 2021 1,783 $ 8.85 3.46 $ 55,513 Options exercisable and expected to vest at June 30, 2021 1,920 $ 9.54 3.73 $ 58,457 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. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The RSUs granted to non-employee members of the board of directors generally vest in full on the first anniversary of the grant date. The RSUs granted to non-employee consultants generally vest 50% on the first anniversary of the grant date, with the remaining 50% vesting quarterly thereafter through the second anniversary of the grant date. The Company’s RSUs are classified as equity awards because the RSUs will be settled in the Company’s common stock upon vesting. The fair value of the RSUs is determined at the grant date based on the closing price of the Company's common stock on the date of grant. The related compensation expense is recognized over the service period, or shorter periods based on the retirement eligibility of certain grantees, 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 RSUs do not carry voting rights until they are vested, and shares are issued upon settlement in accordance with the terms of the award. RSU Summary The following tables summarize the Company’s RSU activity: Shares Underlying RSUs Weighted- (In thousands) Outstanding at December 31, 2021 2,550 $ 25.80 Granted 1,219 38.97 Forfeited (113) 31.12 Released (665) 33.27 Outstanding at June 30, 2022 2,991 $ 29.30 Vested and unreleased at June 30, 2022 (1) 882 Shares Underlying RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 843 41.67 Forfeited (51) 27.45 Released (657) 21.40 Outstanding at June 30, 2021 2,799 $ 25.07 Vested and unreleased at June 30, 2021 (1) 860 (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 settled, meaning that the underlying shares of common stock had not 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, some members of the Company’s board of directors may elect to receive the remainder of their annual compensation, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 54,000 and 39,000 service-based RSUs were granted to the Company’s non-employee members of the board of directors as a result of these payments and elections during the three and six months ended June 30, 2022 and 2021, respectively, with an estimated grant date fair value of $2.1 million and $1.6 million, respectively. During the three and six months ended June 30, 2022 and 2021, the Company granted approximately 743,000 and 461,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $29.0 million and $19.2 million, respectively. During the six months ended June 30, 2022 and 2021, the Company granted approximately 7,000 and 2,000 service-based RSUs, respectively, to non-employee consultants, with an estimated aggregate grant date fair value of $0.3 million and $0.1 million, respectively. Performance-Based RSUs In March 2022 and 2021, the Company granted approximately 248,000 and 228,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $9.7 million and $9.5 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 2022 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 2022 Bonus RSUs will vest, subject to continued employment, in March 2023. All of the 2021 Bonus RSUs vested in March 2022 upon the determination of the level of achievement of the performance goals. |
Equity Transactions
Equity Transactions | 6 Months Ended |
Jun. 30, 2022 | |
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 1.5 million shares of preferred stock, all of which have converted to common stock. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, there were no outstanding shares of preferred stock. Share Repurchases and Retirement In February 2021, the Company implemented a stock repurchase program for up to $300.0 million of its common stock through December 31, 2022. In March 2022, the Company expanded the repurchase program to include up to an additional $300.0 million of its common stock through December 31, 2023. This timeframe can be extended or shortened by the board of directors. Repurchases may be 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 | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table summarizes the Company’s services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Commercial services revenue: Voice and data $ 48,482 $ 43,283 $ 93,365 $ 84,707 IoT data 30,630 27,224 59,071 51,978 Broadband 12,097 10,636 23,611 20,070 Hosted payload and other data 15,152 14,428 29,923 29,218 Total commercial services revenue 106,361 95,571 205,970 185,973 Government services revenue 26,500 25,750 53,000 51,500 Total services revenue $ 132,861 $ 121,321 $ 258,970 $ 237,473 The following table summarizes the Company’s engineering and support services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Commercial $ 1,386 $ 983 $ 2,497 $ 1,729 Government 6,913 5,859 14,168 11,543 Total engineering and support services revenue $ 8,299 $ 6,842 $ 16,665 $ 13,272 Approximately 27% and 34% of the Company's accounts receivable balance at June 30, 2022 and December 31, 2021, 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 one 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 $8.5 million and $10.2 million for the three months ended June 30, 2022 and 2021, respectively, and $17.9 million and $21.8 million during the six months ended June 30, 2022 and 2021. 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: June 30, 2022 December 31, 2021 (In thousands) Contract Assets: Commissions $ 1,574 $ 1,190 Other contract costs $ 2,429 $ 2,558 Unbilled receivables $ 9,317 $ 10,752 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income TaxesIncome before income taxes was $5.8 million and $10.4 million for the three and six months ended June 30, 2022, respectively, while the income tax expense was $1.2 million and $3.1 million for the three and six months ended June 30, 2022, respectively. The effective tax rate was 21.4% and 29.3% for the three and six months ended June 30, 2022, respectively, which differed from the federal statutory rate of 21% primarily due to tax expense associated with nondeductible executive compensation, non- creditable foreign taxes, and U.S. state taxes, which was partially offset by U.S. tax credits and a discrete tax benefit associated with stock compensation. Loss before income taxes was $6.2 million and $19.9 million for the three and six months ended June 30, 2021, respectively, while the income tax benefit was $10.0 million and $18.6 million for the three and six months ended June 30, 2021, respectively. The effective tax rate was 180.3% and 97.8% for the three and six months ended June 30, 2021, respectively, which differed from the federal statutory rate of 21% primarily due to the net impact of a discrete state tax benefit associated with a state apportionment change. During the second quarter of 2021, the Company changed its state apportionment estimate to reflect state planning that required certain beginning deferred tax balances to be revalued. The revaluation resulted in a one-time discrete tax benefit of $8.3 million. The effective tax rate was also impacted by a discrete tax benefit associated with the stock compensation tax deduction and tax benefits from U.S. state tax losses and the Company's U.S. tax credits. These favorable impacts were partially offset by the impact of a discrete tax expense associated with an increase in the prior year valuation allowance for state net operating losses and the limitation on the tax deduction for executive compensation. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic net income (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. 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) shares of 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, which are immaterial for the periods presented. 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 income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) Numerator: Net income (loss) - basic and diluted $ 4,557 $ 3,833 7,381 (1,350) Denominator: Weighted average common shares - basic 128,351 133,367 129,355 134,215 Dilutive effect of stock options 984 1,176 998 — Dilutive effect of RSUs 276 438 458 — Weighted average common shares - diluted 129,611 134,981 130,811 134,215 Net income (loss) per share - basic and diluted $ 0.04 $ 0.03 $ 0.06 $ (0.01) Due to the Company’s net loss position for the six months ended June 30, 2021, all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Performance-based RSUs — 227 — 128 Service-based RSUs 293 425 41 555 Stock options — — — 1,289 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
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. The Company and other Aireon investors hold their interests in Aireon through the Amended and Restated Aireon Holdings LLC agreement (the “Aireon Holdings LLC Agreement”). Aireon Holdings LLC holds 100% of the membership interests in Aireon, which is the operating entity. In June 2022, the Company entered into a subscription agreement with Aireon and invested $50 million in exchange for a 6% preferred interest. The Company's investment in Aireon is accounted for as an equity method investment. The carrying value of the Company's investment in Aireon was $50 million as of June 30, 2022. The original investments by the Company were previously written down to a carrying value of zero. As of June 30, 2022 and December 31, 2021, the Company's fully diluted ownership stake in Aireon Holdings was approximately 39.5% and 35.7%, respectively, and is subject to redemption provisions contained in the Aireon Holdings LLC Agreement. 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 an agreement with Aireon (the “Hosting Agreement”), Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $70.5 million had been paid as of June 30, 2022, as well as power fees of up to approximately $3.7 million per year. Aireon also pays data services fees of $19.8 million per year for the delivery of the air traffic surveillance data under a data transmission services agreement. 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 June 30, 2022 and 2021 and $8.0 million for each of the six months ended June 30, 2022 and 2021. There were no Aireon receivables under the Hosting Agreement as of June 30, 2022 and December 31, 2021. The Company recorded power and data service revenue from Aireon of $5.8 million for each of the three months ended June 30, 2022 and 2021 and $11.7 million for each of the six months ended June 30, 2022 and 2021. 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 $2.2 million as of both June 30, 2022 and December 31, 2021. The Company and the other Aireon investors have agreed to participate pro-rata, based on their fully diluted ownership stakes, in funding an investor bridge loan to Aireon. The Company’s maximum funding commitment for the bridge loan is $10.7 million. No bridge loan amounts were outstanding as of June 30, 2022 or December 31, 2021. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“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. During 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") executed in July 2021 (see Note 6 ). 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. Effective June 30, 2022, the Company adopted FASB ASU 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features (“ASU 2017-11”). Part I of ASU 2017-11 simplified the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings. The Company also adopted FASB ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivatives and Hedging (“ASU 2020-06”). ASU 2020-06 simplified the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. As a result of these adoptions, the Company was permitted to exclude the down-round feature of its investment in Aireon LLC (“Aireon”) from the consideration of whether the instrument is indexed to the entity's own stock (see Note 12 ). |
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 June 30, 2022 and December 31, 2021: (1) cash and cash equivalents, (2) prepaid expenses and other current assets, (3) accounts receivable, (4) accounts payable, and (5) accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents may include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of June 30, 2022 or December 31, 2021. |
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 (1) right-of-use (“ROU”) assets within other assets, and (2) ROU liabilities within accrued expenses and other liabilities and are included 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 assets also include any lease payments made and exclude 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. |
Inventory, Policy [Policy Text Block] | Inventory Inventory consists primarily of finished goods and raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. |
Commitments and Contingencies, Policy | Commitments Launch and Related Services In the second quarter of 2022, the Company entered into an agreement for launch and related services, to launch up to five of its ground spare satellites. The Company expects costs related to this launch to total approximately $35.0 million. As of June 30, 2022, the Company had made aggregate payments of $7.5 million related to these services, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheets. The Company currently expects the launch to occur in 2023. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption and 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 income (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 income, 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current | The following table summarizes the Company's inventory balances: June 30, 2022 December 31, 2021 (In thousands) Finished goods $ 11,455 $ 18,395 Raw materials 17,414 11,850 Inventory valuation reserve (1,076) (1,201) Total $ 27,793 $ 29,044 |
Cash and Cash Equivalents, Re_2
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Company's Cash and Cash Equivalents | The following table presents the Company’s cash and cash equivalents balances: June 30, 2022 December 31, 2021 Recurring Fair (In thousands) Cash and cash equivalents: Cash $ 33,067 $ 28,496 Money market funds 194,130 292,417 Level 2 Total cash and cash equivalents $ 227,197 $ 320,913 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, exclusive of the $10.7 million recognized during the six months ended June 30, 2022, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2022 $ 10,722 2023 21,445 2024 21,445 2025 21,445 2026 21,445 Thereafter 77,462 Total lease income $ 173,964 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Interest incurred | The following table presents the interest and amortization of deferred financing fees related to the Term Loan: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Total interest incurred $ 15,931 $ 18,576 $ 31,233 $ 38,713 Amortization of deferred financing fees $ 1,200 $ 1,000 $ 2,382 $ 1,973 Capitalized interest $ 475 $ 715 $ 864 $ 1,357 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 associated with the derivative instruments that the Company recorded in its condensed consolidated statements of operations and comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Unrealized gain, net of tax $ 10,442 $ 239 $ 38,434 $ 4,082 Tax expense 3,197 11 11,652 1,213 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based Payment Arrangement, Option, Activity | Option Summary A summary of the activity of the Company's stock options is as follows: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2021 1,681 $ 9.35 3.28 $ 53,698 Exercised (71) 9.34 $ 2,056 Forfeited (2) 14.24 Options outstanding at June 30, 2022 1,608 $ 9.34 2.78 $ 45,361 Options exercisable at June 30, 2022 1,575 $ 9.09 2.70 $ 44,851 Options exercisable and expected to vest at June 30, 2022 1,607 $ 9.34 2.78 $ 45,358 | 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 (621) 7.62 $ 23,806 Forfeited (11) 15.37 Options outstanding at June 30, 2021 1,921 $ 9.55 3.73 $ 58,492 Options exercisable at June 30, 2021 1,783 $ 8.85 3.46 $ 55,513 Options exercisable and expected to vest at June 30, 2021 1,920 $ 9.54 3.73 $ 58,457 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following tables summarize the Company’s RSU activity: Shares Underlying RSUs Weighted- (In thousands) Outstanding at December 31, 2021 2,550 $ 25.80 Granted 1,219 38.97 Forfeited (113) 31.12 Released (665) 33.27 Outstanding at June 30, 2022 2,991 $ 29.30 Vested and unreleased at June 30, 2022 (1) 882 | Shares Underlying RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 843 41.67 Forfeited (51) 27.45 Released (657) 21.40 Outstanding at June 30, 2021 2,799 $ 25.07 Vested and unreleased at June 30, 2021 (1) 860 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's service revenue | The following table summarizes the Company’s services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Commercial services revenue: Voice and data $ 48,482 $ 43,283 $ 93,365 $ 84,707 IoT data 30,630 27,224 59,071 51,978 Broadband 12,097 10,636 23,611 20,070 Hosted payload and other data 15,152 14,428 29,923 29,218 Total commercial services revenue 106,361 95,571 205,970 185,973 Government services revenue 26,500 25,750 53,000 51,500 Total services revenue $ 132,861 $ 121,321 $ 258,970 $ 237,473 |
Summary of Company's Engineering and Support Services Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Commercial $ 1,386 $ 983 $ 2,497 $ 1,729 Government 6,913 5,859 14,168 11,543 Total engineering and support services revenue $ 8,299 $ 6,842 $ 16,665 $ 13,272 |
Schedule of recognized contract costs | The following table presents contract assets not separately disclosed: June 30, 2022 December 31, 2021 (In thousands) Contract Assets: Commissions $ 1,574 $ 1,190 Other contract costs $ 2,429 $ 2,558 Unbilled receivables $ 9,317 $ 10,752 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income Per Share | The following table summarizes the computations of basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) Numerator: Net income (loss) - basic and diluted $ 4,557 $ 3,833 7,381 (1,350) Denominator: Weighted average common shares - basic 128,351 133,367 129,355 134,215 Dilutive effect of stock options 984 1,176 998 — Dilutive effect of RSUs 276 438 458 — Weighted average common shares - diluted 129,611 134,981 130,811 134,215 Net income (loss) per share - basic and diluted $ 0.04 $ 0.03 $ 0.06 $ (0.01) |
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: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Performance-based RSUs — 227 — 128 Service-based RSUs 293 425 41 555 Stock options — — — 1,289 |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Finished goods | $ 11,455 | $ 18,395 |
Raw materials | 17,414 | 11,850 |
Inventory valuation reserve | (1,076) | (1,201) |
Inventory | $ 27,793 | $ 29,044 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Launch Service Costs | $ 35 |
Cash and Cash Equivalents, Re_3
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Total cash and cash equivalents | $ 227,197 | $ 320,913 |
Cash | ||
Cash and cash equivalents: | ||
Cash | 33,067 | 28,496 |
Money Market Funds | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents: | ||
Money market funds | $ 194,130 | $ 292,417 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessor, Lease, Description [Line Items] | ||||
Operating Lease, Lease Income | $ 5,300 | $ 5,300 | $ 10,700 | $ 10,700 |
2022 (Remainder of Fiscal Year) | 10,722 | 10,722 | ||
2023 | 21,445 | 21,445 | ||
2024 | 21,445 | 21,445 | ||
2025 | 21,445 | 21,445 | ||
2026 | 21,445 | 21,445 | ||
Thereafter | 77,462 | 77,462 | ||
Total lease income | $ 173,964 | $ 173,964 | ||
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 Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) Rate | Jun. 30, 2022 USD ($) Rate | Dec. 31, 2021 USD ($) | Feb. 07, 2020 USD ($) | Nov. 04, 2019 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Periodic Payment, Principal | $ 16.5 | ||||
Unamortized Deferred Financing Costs | $ 20.9 | 20.9 | $ 23.1 | ||
Long-term Debt | 1,592 | 1,592 | 1,598 | ||
Long-term Debt, Fair Value | 1,552.4 | 1,552.4 | 1,622.1 | ||
First Lien Net Leverage Ratio | 6.25 | ||||
Interest Payable | $ 0.2 | $ 0.2 | 0.1 | ||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Gross | $ 100 | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 3.75% | ||||
Credit Facility Drawdown Floor for Application of First Lien Net Leverage Ratio | Rate | 35% | 35% | |||
Term Loan B (Original) | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Gross | $ 1,650 | ||||
Refinanced Term Loan B | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.50% | ||||
Debt instrument face amount | $ 1,612.9 | $ 1,612.9 | $ 1,621.1 | ||
Interest Rate Floor [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0% | ||||
Interest Rate Floor [Member] | Refinanced Term Loan B | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% |
Debt - Interest Incurred (Detai
Debt - Interest Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Interest Costs Incurred | $ 15,931 | $ 18,576 | $ 31,233 | $ 38,713 |
Amortization of Debt Issuance Costs and Discounts | 1,200 | 1,000 | 2,382 | 1,973 |
Interest Costs Capitalized | $ 475 | $ 715 | $ 864 | $ 1,357 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Interest Rate Swap [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | $ 0.8 | $ 2.1 | $ 1.6 | $ 4.8 | ||
Interest Rate Swap [Member] | ||||||
Interest Rate Swap [Line Items] | ||||||
Derivative, Fixed Interest Rate | 1.565% | |||||
Interest Rate Swaption [Member] | ||||||
Interest Rate Swap [Line Items] | ||||||
Derivative, Fixed Interest Rate | 0.50% | |||||
Proceeds from sale of derivative | $ 0.7 | |||||
Interest Rate Cap | ||||||
Interest Rate Swap [Line Items] | ||||||
Derivative, Fixed Interest Rate | 0.31% | 0.31% | 0.31% | |||
Derivative, Cap Interest Rate | 1.50% | 1.50% | 1.50% | |||
Derivative, Notional Amount | $ 1,000 | $ 1,000 | $ 1,000 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 67.7 | 67.7 | 19.7 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 12.7 | $ 12.7 | $ 14.8 |
Derivatives - Summary of Unreal
Derivatives - Summary of Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Unrealized gain, net of tax | $ 10,442 | $ 239 | $ 4,082 | |
Tax expense | 3,197 | 11 | $ 11,652 | 1,213 |
Unrealized Gain on Cash Flow Hedging, net of tax | $ 10,442 | $ 239 | $ 38,434 | $ 4,082 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares available for grant (in shares) | 8,474,230 | ||
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% | ||
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 Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Option Contractual Term | 10 years | 10 years | |
Share-based compensation, vesting period | 4 years | 4 years | |
Employee Stock Option | 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% | 25% | |
Employee Stock Option | 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 | $ 0 | $ 0 | |
Share-based compensation, options granted (in shares) | 0 | 0 | |
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% | |
Service Based RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 743,000 | 461,000 | |
Share-based compensation, grant date fair value of stock options | $ 29 | $ 19.2 | |
Service Based RSU | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 54,000 | 39,000 | |
Share-based compensation, grant date fair value of stock options | $ 2.1 | $ 1.6 | |
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% | 150% | |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 7,000 | 2,000 | |
Share-based compensation, grant date fair value of stock options | $ 0.3 | $ 0.1 | |
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% | 50% | |
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% | 25% | |
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% | 100% | |
Restricted Stock Units (RSUs) [Member] | Director | 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 | 100% | 100% | |
Performance Based RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 1 year | 1 year | |
Granted - restricted stock units | 248,000 | 228,000 | |
Share-based compensation, grant date fair value of stock options | $ 9.7 | $ 9.5 | |
Performance Based RSU | Executives | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 3 years | 3 years | |
Granted - restricted stock units | 167,000 | 110,000 | |
Share-based compensation, grant date fair value of stock options | $ 6.5 | $ 4.6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Period | 2 years | 2 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease) | 50,000 | 3,000 | |
Performance Based RSU | Executives | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage, year one | 0% | 0% | |
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% | 50% | |
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% | 50% | |
Outstanding Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 1,219,000 | 843,000 |
Stock-Based Compensation Activi
Stock-Based Compensation Activity of Company's Common Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||||
Options outstanding, beginning of period (in shares) | 1,681 | 2,554 | 1,681 | 2,554 | ||
Cancelled or Expired (Shares) | (1) | |||||
Exercised (Shares) | (71) | (621) | ||||
Exercised (Dollar Value) | $ 2,056 | $ 23,806 | ||||
Forfeited (Shares) | (2) | (11) | ||||
Options outstanding, end of period (in shares) | 1,608 | 1,921 | ||||
Options exercisable, end of period (in shares) | 1,575 | 1,783 | ||||
Options exercisable and expected to vest, end of period (in shares) | 1,607 | 1,920 | ||||
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 | $ 9.35 | $ 9.10 | $ 9.35 | $ 9.10 | ||
Options cancelled or expired - weighted average exercise price per share | 7.78 | |||||
Options exercised - weighted average exercise price per share | 9.34 | 7.62 | ||||
Options forfeited - weighted average exercise price per share | 14.24 | 15.37 | ||||
Options outstanding, end of period - weighted average exercise price per share | 9.34 | 9.55 | ||||
Options exercisable, end of period - weighted average exercise price per share | 9.09 | 8.85 | ||||
Options exercisable, end of period - weighted average exercise price per share | $ 9.34 | $ 9.54 | ||||
Options outstanding, end of period - weighted average remaining contractual term (years) | 3 years 3 months 10 days | 3 years 11 months 8 days | 2 years 9 months 10 days | 3 years 8 months 23 days | ||
Options exercisable, end of period - weighted average remaining contractual term (years) | 2 years 8 months 12 days | 3 years 5 months 15 days | ||||
Options exercisable and expected to vest, end of period - Weighted Average Remaining Contractual Term (Years) | 2 years 9 months 10 days | 3 years 8 months 23 days | ||||
Aggregate Intrinsic Value | ||||||
Options outstanding, end of period - aggregate intrinsic value | $ 45,361 | $ 58,492 | $ 53,698 | $ 77,182 | ||
Options exercisable, end of period - aggregate intrinsic value | 44,851 | 55,513 | ||||
Options exercisable and expected to vest, end of period - aggregate intrinsic value | $ 45,358 | $ 58,457 |
Stock-Based Compensation Outsta
Stock-Based Compensation Outstanding RSUs (Details) - Outstanding Restricted Stock Units - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Shares Underlying RSUs | ||
Outstanding - restricted stock units | 2,550 | 2,664 |
Granted - restricted stock units | 1,219 | 843 |
Forfeited - restricted stock units | (113) | (51) |
Released - restricted stock units | (665) | (657) |
Outstanding - restricted stock units | 2,991 | 2,799 |
Vested and unreleased restricted stock units | 882 | 860 |
Weighted- Average Grant Date Fair Value Per RSU | ||
Outstanding - weighted average grant date fair value per RSU | $ 25.80 | $ 18.96 |
Granted - weighted average grant date fair value per RSU | 38.97 | 41.67 |
Forfeited - weighted average grant date fair value per RSU | 31.12 | 27.45 |
Released - weighted average grant date fair value per RSU | 33.27 | 21.40 |
Outstanding - weighted average grant date fair value per RSU | $ 29.30 | $ 25.07 |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||||
Total Authorized Preferred Stock, Number | 2,000,000 | 2,000,000 | ||||
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 | |||
Stock Repurchase Program, Authorized Amount | $ 300 | $ 300 | $ 300 | $ 300 | ||
Treasury Stock, Shares, Retired | 1,000,000 | 1,700,000 | 4,800,000 | 3,300,000 | ||
Treasury Stock, Retired, Cost Method, Amount | $ 35 | $ 63.1 | $ 169.2 | $ 122.5 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 267.5 | $ 267.5 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Liability, revenue recognized | $ 8.5 | $ 10.2 | $ 17.9 | $ 21.8 |
Accounts Receivable [Member] | Customer Concentration Risk | Prime Contracts with the US Government [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 27% | 34% |
Revenue - Summary of Service Re
Revenue - Summary of Service Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 174,919 | $ 149,919 | $ 343,138 | $ 296,454 |
Voice and data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,482 | 43,283 | 93,365 | 84,707 |
IoT data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,630 | 27,224 | 59,071 | 51,978 |
Commercial Broadband Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,097 | 10,636 | 23,611 | 20,070 |
Hosted payload and other data | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,152 | 14,428 | 29,923 | 29,218 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 132,861 | 121,321 | 258,970 | 237,473 |
Services | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 106,361 | 95,571 | 205,970 | 185,973 |
Services | US Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,500 | 25,750 | 53,000 | 51,500 |
Engineering and support services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,299 | 6,842 | 16,665 | 13,272 |
Engineering and support services | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,386 | 983 | 2,497 | 1,729 |
Engineering and support services | US Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 6,913 | $ 5,859 | $ 14,168 | $ 11,543 |
Revenue - Summary of Contract C
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 1,574 | $ 1,190 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | 2,429 | 2,558 |
Unbilled Revenues | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 9,317 | $ 10,752 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 5,799 | $ (6,151) | $ 10,447 | $ (19,932) |
Income tax benefit (expense) | $ (1,242) | $ 9,984 | $ (3,066) | $ 18,582 |
Effective Income Tax Rate Reconciliation, Percent | 21.40% | 180.30% | 29.30% | 97.80% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | 21% |
State Tax Apportionment Benefit | $ 8,300 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) - diluted | $ 4,557 | $ 3,833 | $ 7,381 | $ (1,350) |
Weighted Average Number of Shares Outstanding, Basic | 128,351 | 133,367 | 129,355 | 134,215 |
Weighted Average Number of Shares Outstanding, Diluted | 129,611 | 134,981 | 130,811 | 134,215 |
Earnings Per Share, Basic and Diluted | $ 0.04 | $ 0.03 | $ 0.06 | $ (0.01) |
Employee Stock Option | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 1,176 | 984 | ||
Restricted Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 438 | 276 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-Dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Performance Based RSU | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 227 | 0 | 128 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 293 | 425 | 41 | 555 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 0 | 0 | 1,289 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Ownership stake | 39.50% | 39.50% | 35.70% | ||
Aireon 2022 Preferred Equity Investment | |||||
Related Party Transaction [Line Items] | |||||
Payments for (Proceeds from) Investments | $ 50 | ||||
Ownership stake | 6% | 6% | |||
Equity Method Investments | $ 50 | $ 50 | $ 0 | ||
Aireon Investor Bridge Loan | |||||
Related Party Transaction [Line Items] | |||||
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 | $ 8 | ||
Equity Method Investee | Service Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 5.8 | $ 5.9 | 11.7 | ||
Equity Method Investee | Administrative and support agreement accounts receivable | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | $ 2.2 | 2.2 | |||
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 | $ 70.5 |