Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35878 | |
Entity Registrant Name | INTELSAT S.A. | |
Entity Incorporation, State or Country Code | N4 | |
Entity Tax Identification Number | 98-1009418 | |
Entity Address, Address Line One | 4, rue Albert Borschette | |
Entity Address, Postal Zip Code | L-1246 | |
Entity Address, City or Town | Luxembourg | |
Entity Address, Country | LU | |
City Area Code | 27 84 | |
Local Phone Number | 1600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 142,184,518 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001525773 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 636,510 | $ 1,060,917 |
Restricted cash | 27,675 | 21,130 |
Receivables, net of allowances of $40,785 in 2020 and $32,949 in 2021 | 217,235 | 254,273 |
Receivables relating to C-band | 1,035,578 | 405,171 |
Contract assets, net of allowances | 42,447 | 39,774 |
Inventory | 125,288 | 147,094 |
Prepaid expenses and other current assets | 140,330 | 136,611 |
Total current assets | 2,225,063 | 2,064,970 |
Satellites and other property and equipment, net | 4,981,394 | 4,757,877 |
Goodwill | 2,689,482 | 2,698,247 |
Non-amortizable intangible assets | 2,295,000 | 2,295,000 |
Amortizable intangible assets, net | 262,355 | 290,569 |
Contract assets, net of current portion and allowances | 71,914 | 86,017 |
Other assets | 727,862 | 605,001 |
Total assets | 13,253,070 | 12,797,681 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 279,122 | 252,998 |
Taxes payable | 6,486 | 7,493 |
Employee-related liabilities | 43,382 | 43,404 |
Accrued interest payable | 19,094 | 17,747 |
Current maturities of long-term debt | 6,162,315 | 5,903,724 |
Contract liabilities | 858,941 | 157,320 |
Deferred satellite performance incentives | 54,512 | 47,377 |
Other current liabilities | 105,416 | 73,479 |
Total current liabilities | 7,529,268 | 6,503,542 |
Contract liabilities, net of current portion | 1,309,270 | 1,447,891 |
Deferred satellite performance incentives, net of current portion | 121,439 | 138,116 |
Deferred income taxes | 77,485 | 61,345 |
Accrued retirement benefits, net of current portion | 113,452 | 129,837 |
Other long-term liabilities | 315,939 | 262,900 |
Liabilities subject to compromise | 10,169,243 | 10,168,518 |
Shareholders’ deficit: | ||
Common shares, nominal value $0.01 per share | 1,422 | 1,421 |
Paid-in capital | 2,577,607 | 2,573,840 |
Accumulated deficit | (8,889,282) | (8,416,410) |
Accumulated other comprehensive loss | (77,261) | (80,322) |
Total Intelsat S.A. shareholders’ deficit | (6,387,514) | (5,921,471) |
Noncontrolling interest | 4,488 | 7,003 |
Total liabilities and shareholders’ deficit | $ 13,253,070 | $ 12,797,681 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | May 20, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | |||||||
Receivables, allowance | $ 32,949 | $ 29,202 | $ 40,785 | $ 29,838 | $ 27,578 | $ 40,028 | |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 526,095 | $ 489,449 | $ 1,536,720 | $ 1,430,303 |
Operating expenses: | ||||
Direct costs of revenue (excluding depreciation and amortization) | 177,176 | 119,969 | 505,798 | 331,191 |
Selling, general and administrative | 96,796 | 69,215 | 299,499 | 214,586 |
Depreciation and amortization | 162,017 | 162,573 | 495,517 | 488,235 |
Impairment of non-amortizable intangible and other assets | 0 | 0 | 0 | 46,243 |
Other operating expense—C-band | 17,867 | 298 | 140,861 | 580 |
Total operating expenses | 453,856 | 352,055 | 1,441,675 | 1,080,835 |
Income from operations | 72,239 | 137,394 | 95,045 | 349,468 |
Interest expense, net | (126,600) | (138,075) | (388,836) | (678,937) |
Other income, net | 10,196 | 3,067 | 40,133 | 8,564 |
Reorganization items | (98,316) | (36,367) | (203,719) | (335,059) |
Loss before income taxes | (142,481) | (33,981) | (457,377) | (655,964) |
Income tax benefit (expense) | (2,605) | 18,650 | (13,716) | 17,691 |
Net loss | (145,086) | (15,331) | (471,093) | (638,273) |
Net income attributable to noncontrolling interest | (604) | (600) | (1,779) | (1,784) |
Net loss attributable to Intelsat S.A. | $ (145,690) | $ (15,931) | $ (472,872) | $ (640,057) |
Net loss per common share attributable to Intelsat S.A.: | ||||
Basic (in dollars per share) | $ (1,020) | $ (0.11) | $ (3,330) | $ (4.51) |
Diluted (in dollars per share) | $ (1,020) | $ (0.11) | $ (3,330) | $ (4.51) |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (145,086) | $ (15,331) | $ (471,093) | $ (638,273) |
Defined benefit retirement plans: | ||||
Reclassification adjustment for amortization of unrecognized prior service credits, net of tax included in other income, net | (626) | (626) | (1,878) | (1,878) |
Reclassification adjustment for amortization of unrecognized actuarial loss, net of tax included in other income, net | 1,672 | 1,274 | 4,939 | 3,822 |
Other comprehensive income | 1,046 | 648 | 3,061 | 1,944 |
Comprehensive loss | (144,040) | (14,683) | (468,032) | (636,329) |
Comprehensive income attributable to noncontrolling interest | (604) | (600) | (1,779) | (1,784) |
Comprehensive loss attributable to Intelsat S.A. | $ (144,644) | $ (15,283) | $ (469,811) | $ (638,113) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Deficit - USD ($) $ in Thousands, shares in Millions | Total | Total Intelsat S.A. Shareholders’ Deficit | Total Intelsat S.A. Shareholders’ DeficitCumulative Effect, Period of Adoption, Adjustment | Common Shares | Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 141.1 | ||||||||
Beginning balance at Dec. 31, 2019 | $ (4,999,858) | $ (916) | $ 1,411 | $ 2,565,696 | $ (7,503,830) | $ (916) | $ (63,135) | $ 11,010 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (218,771) | (218,771) | 556 | ||||||
Dividends paid to noncontrolling interests | (1,879) | ||||||||
Share-based compensation (in shares) | 1 | ||||||||
Share-based compensation | 981 | $ 10 | 971 | ||||||
Postretirement/pension liability adjustment, net of tax | 648 | 648 | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 142.1 | ||||||||
Ending balance at Mar. 31, 2020 | (5,217,916) | $ 1,421 | 2,566,667 | (7,723,517) | (62,487) | 9,687 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 141.1 | ||||||||
Beginning balance at Dec. 31, 2019 | (4,999,858) | $ (916) | $ 1,411 | 2,565,696 | (7,503,830) | $ (916) | (63,135) | 11,010 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ (640,057) | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 142.1 | ||||||||
Ending balance at Sep. 30, 2020 | (5,632,249) | $ 1,421 | 2,572,324 | (8,144,803) | (61,191) | 7,835 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 142.1 | ||||||||
Beginning balance at Mar. 31, 2020 | (5,217,916) | $ 1,421 | 2,566,667 | (7,723,517) | (62,487) | 9,687 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (405,355) | (405,355) | 628 | ||||||
Share-based compensation | 2,737 | 2,737 | |||||||
Postretirement/pension liability adjustment, net of tax | 648 | 648 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 142.1 | ||||||||
Ending balance at Jun. 30, 2020 | (5,619,886) | $ 1,421 | 2,569,404 | (8,128,872) | (61,839) | 10,315 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (15,931) | (15,931) | (15,931) | 600 | |||||
Dividends paid to noncontrolling interests | (3,080) | ||||||||
Share-based compensation | 2,920 | 2,920 | |||||||
Postretirement/pension liability adjustment, net of tax | 648 | 648 | |||||||
Ending balance (in shares) at Sep. 30, 2020 | 142.1 | ||||||||
Ending balance at Sep. 30, 2020 | (5,632,249) | $ 1,421 | 2,572,324 | (8,144,803) | (61,191) | 7,835 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 142.1 | ||||||||
Beginning balance at Dec. 31, 2020 | (5,921,471) | $ 1,421 | 2,573,840 | (8,416,410) | (80,322) | 7,003 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (174,876) | (174,876) | 570 | ||||||
Dividends paid to noncontrolling interests | (1,417) | ||||||||
Share-based compensation (in shares) | 0.1 | ||||||||
Share-based compensation | 724 | $ 1 | 723 | ||||||
Postretirement/pension liability adjustment, net of tax | 969 | 969 | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 142.2 | ||||||||
Ending balance at Mar. 31, 2021 | (6,094,654) | $ 1,422 | 2,574,563 | (8,591,286) | (79,353) | 6,156 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 142.1 | ||||||||
Beginning balance at Dec. 31, 2020 | (5,921,471) | $ 1,421 | 2,573,840 | (8,416,410) | (80,322) | 7,003 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (472,872) | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 142.2 | ||||||||
Ending balance at Sep. 30, 2021 | (6,387,514) | $ 1,422 | 2,577,607 | (8,889,282) | (77,261) | 4,488 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 142.2 | ||||||||
Beginning balance at Mar. 31, 2021 | (6,094,654) | $ 1,422 | 2,574,563 | (8,591,286) | (79,353) | 6,156 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (152,306) | (152,306) | 604 | ||||||
Dividends paid to noncontrolling interests | (1,436) | ||||||||
Share-based compensation | 1,581 | 1,581 | |||||||
Postretirement/pension liability adjustment, net of tax | 1,046 | 1,046 | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 142.2 | ||||||||
Ending balance at Jun. 30, 2021 | (6,244,333) | $ 1,422 | 2,576,144 | (8,743,592) | (78,307) | 5,324 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ (145,690) | (145,690) | (145,690) | 604 | |||||
Dividends paid to noncontrolling interests | (1,440) | ||||||||
Share-based compensation | 1,463 | 1,463 | |||||||
Postretirement/pension liability adjustment, net of tax | 1,046 | 1,046 | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 142.2 | ||||||||
Ending balance at Sep. 30, 2021 | $ (6,387,514) | $ 1,422 | $ 2,577,607 | $ (8,889,282) | $ (77,261) | $ 4,488 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (471,093) | $ (638,273) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 495,517 | 488,235 |
Provision for expected credit losses | 21,729 | 36,360 |
Foreign currency transaction losses | 2,639 | 7,330 |
Loss on disposal of assets | 43 | 0 |
Impairment of non-amortizable intangible and other assets | 0 | 46,243 |
Share-based compensation | 19,377 | 9,399 |
Deferred income taxes | 5,404 | 4,720 |
Amortization of discount, premium, issuance costs and related costs | 7,559 | 19,689 |
Non-cash reorganization items | 0 | 196,974 |
Debtor-in-possession financing fees | 46,944 | 52,182 |
Amortization of actuarial loss and prior service credits for retirement benefits | 3,189 | 1,976 |
Unrealized losses on derivative financial instruments | 0 | 372 |
Unrealized (gains) losses on investments and loans held-for-investment | (25,226) | 721 |
Amortization of supplemental type certificate costs | 8,549 | 0 |
Other non-cash items | (133) | 0 |
Changes in operating assets and liabilities: | ||
Receivables | 22,554 | 2,769 |
Prepaid expenses, contract and other assets | 17,557 | (67,253) |
Accounts payable and accrued liabilities | 3,603 | 60,624 |
Accrued interest payable | 1,347 | 48,713 |
Contract liabilities | (67,054) | (62,737) |
Accrued retirement benefits | (16,385) | (12,253) |
Other long-term liabilities | (25,944) | (1,062) |
Net cash provided by operating activities | 50,176 | 194,729 |
Cash flows from investing activities: | ||
Capital expenditures (including capitalized interest) | (667,885) | (419,952) |
Acquisition of loans held-for-investment | 0 | (2,300) |
Proceeds from sale of investment | 15,000 | 0 |
Loan amendment fees received | 1,800 | 0 |
Proceeds from principal payments on loans held-for-investment | 208 | 973 |
Capital contribution to unconsolidated affiliate (including capitalized interest) | 0 | (2,692) |
Acquisition of intangible assets | (3,315) | 0 |
Other proceeds from satellites | 0 | 5,625 |
Net cash used in investing activities | (654,192) | (418,346) |
Cash flows from financing activities: | ||
Proceeds from debtor-in-possession financing | 1,250,000 | 500,000 |
Repayments of debtor-in-possession financing | (1,000,000) | 0 |
Debtor-in-possession financing fees | (46,944) | (52,182) |
Principal payments on deferred satellite performance incentives | (14,859) | (25,428) |
Dividends paid to noncontrolling interest | (4,293) | (4,959) |
Net cash provided by financing activities | 183,904 | 417,431 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,250) | (4,328) |
Net change in cash, cash equivalents and restricted cash | (423,362) | 189,486 |
Cash, cash equivalents, and restricted cash, beginning of period | 1,087,547 | 830,864 |
Cash, cash equivalents, and restricted cash, end of period | 664,185 | 1,020,350 |
Supplemental cash flow information: | ||
Cash paid for reorganization items included in cash flows from operating activities | 152,675 | 53,983 |
Interest paid, net of amounts capitalized | 307,901 | 532,234 |
Income taxes paid, net of refunds | 2,664 | 4,717 |
Supplemental disclosure of non-cash investing activities: | ||
Accrued capital expenditures | 67,944 | 51,221 |
Conversion of loans held-for-investment to equity securities | 0 | 4,802 |
Capitalization of deferred satellite performance incentives | 5,318 | 0 |
Conversion of payment-in-kind interest on loans held-for-investment | 1,762 | 0 |
Purchase price adjustment | $ 7,843 | $ 0 |
General
General | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The accompanying condensed consolidated financial statements of Intelsat S.A. and its subsidiaries (“Intelsat S.A.,” “we,” “us,” “our” or the “Company”) have not been audited, but are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. References to U.S. GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification (“ASC”). The unaudited condensed consolidated financial statements include all adjustments (consisting only of normal and recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of these financial statements. The results of operations for the periods presented are not necessarily indicative of operating results for the full year or for any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), on file with the U.S. Securities and Exchange Commission (“SEC”). Use of Estimates The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these condensed consolidated financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. C-band Spectrum Clearing On March 3, 2020, the U.S. Federal Communications Commission (“FCC”) issued its final order in the C-band proceeding (the “FCC Final Order”), which, among other things, provides for monetary incentives for fixed satellite services (“FSS”) providers to clear a portion of the C-band spectrum on an accelerated basis (the “Acceleration Payments”). On August 14, 2020, Intelsat License LLC (“Intelsat License”) filed its C-band spectrum transition plan with the FCC, with ongoing updates as requested by the FCC. The most recent amended transition plan was filed on September 30, 2021. Under the FCC Final Order, Intelsat License is eligible to receive Acceleration Payments of approximately $1.2 billion and $3.7 billion based on the milestone clearing certification dates of December 5, 2021 and December 5, 2023, with the respective payments expected to be received in the first half of each successive year, respectively, subject to the satisfaction of certain deadlines and other conditions. In addition, under the FCC Final Order, we are also entitled to receive reimbursement payments for certain C-band spectrum clearing expenses incurred, subject to the satisfaction of certain conditions set forth in the FCC Final Order. As of December 31, 2020 and September 30, 2021, we incurred $405.2 million and $1.0 billion, respectively, related to expected reimbursable costs associated with the FCC Final Order, which are included within the receivables relating to C-band line item on our condensed consolidated balance sheets. Fulfillment costs incurred as a result of the FCC Final Order, which include costs to pay personnel or third parties to assist with customer reconfiguration and relocation, installation of filters, and program management costs, are expensed as incurred and are included within other operating expense—C-band on our condensed consolidated statements of operations. On October 4, 2021, as subsequently amended on October 15, 2021, Intelsat License filed its Phase I Certification of Accelerated Relocation, indicating completion of required clearing activities to satisfy the December 5, 2021 deadline and requesting FCC validation to receive the $1.2 billion Acceleration Payment. Impact of COVID-19 on the Company As a result of the novel coronavirus (“COVID-19”) pandemic in 2020 and continuing into 2021, in an effort to safeguard public health, governments around the world, including United States (“U.S.”) federal, state and local governments, implemented a number of orders and restrictions on travel and businesses, among other things. Some of these measures remain in effect and have negatively impacted the U.S. and other economies around the world in the short-term, while the long-term economic impact of COVID-19 remains unknown. The COVID-19 pandemic has had an adverse impact on our business, results of operations and financial condition, a trend we expect to continue. Among the impacts of the COVID-19 pandemic were a reduction of revenue and a decreased likelihood of collection from certain mobility customers and our Intelsat CA (as defined below) business. We continue to closely monitor the ongoing impact on our employees, customers, business and results of operations. Bankruptcy Accounting Our consolidated financial statements included herein have been prepared as if we are a going concern and reflect the application of ASC 852, Reorganizations (“ASC 852”). ASC 852 requires the financial statements, for periods subsequent to the commencement of our Chapter 11 proceedings, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, we classify liabilities and obligations whose treatment and satisfaction are dependent on the outcome of the reorganization under the Chapter 11 proceedings as liabilities subject to compromise on our condensed consolidated balance sheets. In addition, we classify all income, expenses, gains or losses that are incurred or realized as a result of the Chapter 11 proceedings as reorganization items in our condensed consolidated statements of operations. See Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less, which are generally time deposits with banks and money market funds. The carrying amount of these investments approximates fair value. Restricted cash represents legally restricted amounts being held as a compensating balance for certain outstanding letters of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our condensed consolidated balance sheets to the total sum of these amounts reported in our condensed consolidated statements of cash flows (in thousands): As of As of Cash and cash equivalents $ 1,060,917 $ 636,510 Restricted cash 21,130 27,675 Restricted cash included in other assets 5,500 — Cash, cash equivalents and restricted cash $ 1,087,547 $ 664,185 Receivables and Allowance for Credit Losses We provide satellite services and extend credit to numerous customers in the satellite communication, telecommunications and video markets, as well as the airline industry. We monitor our exposure to credit losses and maintain allowances for credit losses and anticipated losses. The Company’s methodology to measure the provision for credit losses considers all relevant information, including but not limited to, information about historical collectability, current conditions and reasonable and supportable forecasts of future economic conditions. We believe we have adequate customer collateral and reserves to cover our exposure. The following table provides a roll-forward of the allowance for credit losses reported within our condensed consolidated balance sheets (in thousands): Description Three Months Ended September 30, 2020 Three Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at July 1 $ 27,578 $ 1,638 $ 29,202 $ 4,346 Charged to costs and expenses 6,743 75 6,484 (617) Deductions (1) (4,483) — (2,737) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 Description Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at January 1 $ 40,028 $ — $ 40,785 $ 3,889 Cumulative-effect adjustment of ASU 2016-13 adoption — 916 — — Charged to costs and expenses 35,563 797 21,889 (160) Deductions (1) (45,753) — (29,725) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 (1) Uncollectible accounts written off, net of recoveries. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting For Income Taxes (“ASU 2019-12”). The standard removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 was adopted in the first quarter of 2021. The adoption of ASU 2019-12 did not have a material effect on our condensed consolidated financial statements and associated disclosures. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts regarding an entity’s own equity. ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2021. We are in the process of evaluating the impact that ASU 2020-06 will have on our condensed consolidated financial statements and associated disclosures. In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Chapter 11 Proceedings, Ability
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters | Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters Voluntary Reorganization under Chapter 11 On May 13, 2020, Intelsat S.A. and certain of its subsidiaries (each, a “Debtor” and collectively, the “Debtors”) commenced voluntary cases (the “Chapter 11 Cases”) under title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”). Primary factors causing us to file for Chapter 11 protection included the Company’s intention to participate in the accelerated clearing process of C-band spectrum set forth in the FCC Final Order, requiring the Company to incur significant costs related to clearing activities well in advance of receiving reimbursement for such costs and the need for additional financing to fund the C-band clearing process, service our current debt obligations, and meet our operating requirements, as well as the economic slowdown impacting the Company and several of its end markets due to the COVID-19 pandemic. The Chapter 11 process can be unpredictable and involves significant risks and uncertainties. Pursuant to various orders from the Bankruptcy Court, the Debtors have received approval from the Bankruptcy Court to generally maintain their ordinary operations and uphold certain commitments to their stakeholders, including employees, customers, and vendors, during the restructuring process, subject to the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. Our ability to fund operating expenses may be subject to obtaining further approvals from the Bankruptcy Court in connection with the Chapter 11 Cases. On June 9, 2020, Intelsat Jackson received approval from the Bankruptcy Court to enter into a multiple draw superpriority senior secured debtor-in-possession term loan facility (as amended, the “Original DIP Facility”) in an aggregate principal amount of $1.0 billion on the terms and conditions as set forth in the DIP credit agreement (as amended, the “Original DIP Credit Agreement”), and on June 17, 2020, Intelsat Jackson and certain of its subsidiaries as guarantors (together with Intelsat Jackson, the “DIP Debtors”) entered into the final Original DIP Credit Agreement. On September 14, 2021, the DIP Debtors received approval from the Bankruptcy Court (the “DIP Order”) to enter into a multiple draw superpriority senior secured debtor-in-possession term loan facility (the “New DIP Facility”) in an aggregate principal amount of $1.5 billion on the terms and conditions as set forth in the credit agreement for the New DIP Facility (the “New DIP Credit Agreement”), and on September 14, 2021, Intelsat Jackson and certain of the DIP Debtors entered into the final New DIP Credit Agreement. The New DIP Facility provided $1.25 billion in new money at closing for Intelsat Jackson to, among other things, refinance the Original DIP Facility and, provides the ability for Intelsat Jackson, at its sole discretion, to make an incremental $250.0 million draw. For additional information regarding our credit facilities, see Note 11—Debt. On July 11, 2020, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. On February 11, 2021, the Debtors entered into a plan support agreement with certain of the Debtors’ prepetition secured and unsecured creditors. After entry into such plan support agreement, the Debtors continued to engage with their stakeholders and on August 24, 2021, entered into an amended plan support agreement (together with all exhibits and schedules thereto, the “PSA”) with certain of the Debtors’ prepetition secured and unsecured creditors (the “Consenting Creditors” and together with the Debtors, the “PSA Parties”). The PSA contains certain covenants on the part of the PSA Parties, including but not limited to the Consenting Creditors voting in favor of the Amended Joint Chapter 11 Plan of Reorganization of Intelsat S.A. and Its Debtor Affiliates (as amended, the “Plan”), and provides that the Debtors shall achieve certain milestones (unless extended or waived in writing). In connection with the PSA, on August 24, 2021, the Debtors filed the Plan and the Amended Disclosure Statement for the Amended Joint Chapter 11 Plan of Reorganization of Intelsat S.A. and Its Debtor Affiliates (as amended, the “Disclosure Statement”), which describes a variety of topics related to the Chapter 11 Cases, including (i) events leading to the Chapter 11 Cases; (ii) significant events that took place during the Chapter 11 Cases; (iii) certain terms of the Plan; and (iv) certain anticipated risk factors associated with, and anticipated consequences of the Plan. On September 7, 2021, the Bankruptcy Court entered an order approving the Disclosure Statement. A hearing on confirmation of the Plan has been set by the Bankruptcy Court to begin on December 2, 2021. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the prepetition existing indebtedness of Intelsat S.A., Intelsat Luxembourg, Intelsat Connect and Intelsat Jackson. For additional discussion regarding the impact of the Chapter 11 Cases on our debt obligations, see Note 11—Debt. While the Chapter 11 Cases are pending, the Debtors do not anticipate making interest payments due under their respective unsecured debt instruments; however, the Debtors expect to make monthly interest payments on their senior secured debt instruments pursuant to the adequate protection requirements under the DIP Order. The contractual interest expense pursuant to our unsecured debt instruments that was not recognized in our condensed consolidated statements of operations was $196.4 million and $192.3 million for the three months ended September 30, 2020 and 2021, respectively, and $298.9 million and $576.8 million for the nine months ended September 30, 2020 and 2021, respectively. Delisting and Deregistration of Intelsat S.A. Common Shares On May 20, 2020, the New York Stock Exchange (“NYSE”) filed a Form 25 with the SEC to delist the Company’s common shares, $0.01 par value from the NYSE. The delisting became effective 10 days after the Form 25 was filed. The deregistration of the common shares under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) became effective 90 days after the filing date of the Form 25. As of September 30, 2021, the common shares remain registered under Section 12(g) and Section 15(d) of the Exchange Act. However, the Company filed a Form 15 to terminate the registration of its common shares under Section 12(g) of the Exchange Act on September 3, 2021. We expect the termination of the registration of the common shares under Section 12(g) to become effective 90 days after the filing date of the Form 15. The Company’s common shares began trading on the OTC Pink Marketplace on May 19, 2020 under the symbol “INTEQ.” Liabilities Subject to Compromise Prepetition unsecured liabilities of the Debtors subject to compromise under the Chapter 11 proceedings have been distinguished from secured liabilities that are not expected to be compromised and post-petition liabilities in our condensed consolidated balance sheets. Liabilities subject to compromise have been recorded at the amounts expected to be allowed by the Bankruptcy Court. The ultimate settlement amounts of these liabilities remain at the discretion of the Bankruptcy Court and may vary from the expected allowed amounts. Liabilities subject to compromise consisted of the following (in thousands): As of As of Accounts payable $ 9,545 $ 10,671 Debt subject to comprise 9,782,161 9,782,161 Accrued interest on debt subject to compromise 341,676 341,676 Other long-term liabilities subject to compromise 35,136 34,735 Total liabilities subject to compromise $ 10,168,518 $ 10,169,243 Reorganization Items The expenses, gains and losses directly and incrementally resulting from the Chapter 11 Cases are separately reported as reorganization items in our condensed consolidated statement of operations. Reorganization items consisted of the following (in thousands): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Adjustment of debt discount, premium and issuance costs $ — $ — $ 196,974 $ — Debtor-in-possession financing fees — 46,944 52,182 46,944 Professional fees 36,262 50,825 85,233 156,199 Other reorganization costs 105 547 670 576 Total reorganization items $ 36,367 $ 98,316 $ 335,059 $ 203,719 Going Concern Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. In connection with the preparation of our condensed consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, that raised substantial doubt as to the Company’s ability to continue as a going concern. As reflected in our condensed consolidated financial statements, the Company had cash and cash equivalents of $636.5 million and an accumulated deficit of $8.9 billion as of September 30, 2021. The Company generated income from operations of $95.0 million and a net loss of $471.1 million for the nine months ended September 30, 2021. In light of the Company’s Chapter 11 proceedings, our ability to continue as a going concern is contingent upon, among other things, our ability to, subject to the Bankruptcy Court’s approval, implement a business plan of reorganization, emerge from the Chapter 11 proceedings and generate sufficient liquidity following the reorganization to meet our contractual obligations and operating needs. As a result of risks and uncertainties related to, among other things, (i) the Company’s ability to obtain requisite support for the business plan of reorganization from various stakeholders, and (ii) the disruptive effects of the Chapter 11 proceedings on our business making it potentially more difficult to maintain business, financing and operational relationships, substantial doubt exists regarding our ability to continue as a going concern. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the prepetition existing indebtedness of Intelsat S.A., Intelsat Luxembourg, Intelsat Connect and Intelsat Jackson. As such, we have reclassified all such debt obligations, other than debt subject to compromise, to current maturities of long-term debt on our condensed consolidated balance sheets as of December 31, 2020 and September 30, 2021. For additional discussion regarding the impact of the Chapter 11 Cases on our debt obligations, see Note 11—Debt. Our condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. |
Acquisition of Gogo's Commercia
Acquisition of Gogo's Commercial Aviation Business | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Gogo's Commercial Aviation Business | Acquisition of Gogo’s Commercial Aviation Business On August 31, 2020, following approval from the Bankruptcy Court, Intelsat Jackson and Gogo Inc. (NASDAQ: GOGO), a Delaware corporation (“Gogo”), entered into a purchase and sale agreement (the “Purchase and Sale Agreement”) with respect to Gogo’s commercial aviation business, consisting of all of the equity interests of Gogo LLC and Gogo International Holdings LLC (collectively known as “Intelsat CA”), for $400.0 million in cash, subject to customary adjustments. On December 1, 2020, Intelsat Jackson completed the acquisition pursuant to the terms and conditions of the Purchase and Sale Agreement (the “Gogo Transaction”). Upon completion of the acquisition, the entities comprising the Intelsat CA business became indirect wholly-owned subsidiaries of Intelsat S.A. Intelsat CA is one of the largest global providers of in-flight broadband connectivity. The acquisition of Intelsat CA brings together two complementary enterprises – one of the world’s largest satellite operators with a leading provider of commercial in-flight broadband and entertainment services, to deliver innovation and long-term value to commercial airlines. The Company accounted for the business combination in accordance with ASC 805, Business Combinations. The Company recorded the acquisition using the acquisition method of accounting and recognized assets and liabilities at their fair value as of the date of acquisition. The Company based the preliminary allocation of the purchase price on estimates and assumptions known at the date of acquisition that are subject to change within the purchase price allocation period, which is generally one year from the acquisition date. The following table summarizes the preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed on the acquisition date, based on estimated fair values both as disclosed in the Company’s 2020 Annual Report and as adjusted for measurement period adjustments identified during the nine months ended September 30, 2021 (in thousands): Purchase Price Allocation As of Measurement Period Adjustments As of Assets acquired Cash and cash equivalents $ 9,867 $ — $ 9,867 Receivables, net of allowances 52,849 138 52,987 Inventory 144,014 (5,619) 138,395 Prepaid expenses and other current assets 36,140 — 36,140 Property and equipment 41,328 5,063 46,391 Amortizable intangible assets Software 45,464 — 45,464 Trade name 1,000 — 1,000 Goodwill 77,620 (8,765) 68,855 Other assets Supplemental type certificates 24,253 48 24,301 Line fit certificates 21,776 — 21,776 Other assets 100,566 — 100,566 Total assets acquired 554,877 (9,135) 545,742 Liabilities assumed Current liabilities Accounts payable and accrued liabilities (63,300) 779 (62,521) Contract liabilities (13,527) 513 (13,014) Other current liabilities (25,472) — (25,472) Noncurrent liabilities (43,522) — (43,522) Total liabilities assumed (145,821) 1,292 (144,529) Total purchase consideration $ 409,056 $ (7,843) $ 401,213 The fair value estimates of the net assets acquired are based upon calculations and valuations, and estimates and assumptions regarding certain tangible and identifiable intangible assets acquired and liabilities assumed. The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. Goodwill represents expected synergies in mobility services and connectivity, $42.3 million of which is deductible for tax purposes. The measurement period adjustments decreased the provisionally recognized goodwill by $8.8 million and have been recognized prospectively, which primarily relate to the resolution of certain purchase price adjustments, a $5.6 million adjustment in the provisional value of inventory and a $5.1 million adjustment in the provisional value of property and equipment as a result of additional information obtained during the nine months ended September 30, 2021 . These adjustments did not have a material impact on our condensed consolidated balance sheets, statements of operations or cash flows in any periods previously reported. The following table presents the unaudited pro forma revenue and net loss of the Company, inclusive of Intelsat CA, as if the acquisition had occurred on January 1, 2020, for the three and nine months ended September 30, 2020 (in thousands): Pro Forma Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Revenue $ 525,965 $ 1,606,186 Net loss (87,165) (858,459) The unaudited pro forma combined financial information is disclosed for illustrative purposes only, and does not purport to represent what the results of operations would actually have been if the business combination occurred as of the dates indicated or what the results would be for any future periods. Acquisition-related costs amounted to $6.2 million and $6.3 million for the three and nine months ended September 30, 2020, respectively, and $0.5 million and $5.5 million for the three and nine months ended September 30, 2021, respectively, which were included within selling, general and administrative expenses in our condensed consolidated statements of operations. |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Share Capital | Share CapitalUnder our Articles of Incorporation, we have an authorized share capital of $10.0 million, represented by 1.0 billion shares of any class with a nominal value of $0.01 per share. At September 30, 2021, there were approximately 142.2 million common shares issued and outstanding. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue (a) Contract Liabilities As of December 31, 2020 and September 30, 2021, we had contract liabilities of $405.2 million and $1.0 billion, respectively, related to reimbursable costs associated with the FCC Final Order. As of December 31, 2020, these amounts were included within contract liabilities, net of current portion, and as of September 30, 2021, $702.0 million of these amounts were included within contract liabilities and $333.6 million of these amounts were included within contract liabilities, net of current portion, on our condensed consolidated balance sheets. For the three months ended September 30, 2020 and 2021, we recognized revenue of $47.8 million and $51.5 million, respectively, and for the nine months ended September 30, 2020 and 2021, we recognized revenue of $185.5 million and $191.8 million, respectively, that were included in the contract liability balances as of January 1, 2020 and 2021, respectively. (b) Assets Recognized from the Costs to Obtain a Customer Contract For the three months ended September 30, 2020 and 2021, we capitalized $1.5 million and $3.2 million for costs to obtain a customer contract, respectively, and amortized $1.1 million and $1.2 million, respectively. For the nine months ended September 30, 2020 and 2021, we capitalized $3.9 million and $9.5 million for costs to obtain a customer contract, respectively, and amortized $3.9 million and $3.6 million, respectively. As of December 31, 2020 and September 30, 2021, capitalized costs to obtain a customer contract amounted to $10.4 million and $16.3 million, respectively, and were included within other assets in our condensed consolidated balance sheets. (c) Remaining Performance Obligations Our remaining performance obligation is our expected future revenue under our existing customer contracts and includes both cancelable and non-cancelable contracts. Our remaining performance obligation was approximately $5.6 billion as of September 30, 2021. As of September 30, 2021, the weighted average remaining customer contract life was approximately 3.9 years. Approximately 30%, 29%, and 41% of our total remaining performance obligation as of September 30, 2021 is expected to be recognized as revenue during 2021 and 2022, 2023 and 2024, and 2025 and thereafter, respectively. The amount included in the remaining performance obligation represents the full-service charge for the duration of the contract and does not include termination fees. The amount of the termination fees, which is not included in the remaining performance obligation amount, is generally calculated as a percentage of the remaining performance obligation associated with the contract. In certain cases of breach for non-payment or customer financial distress or bankruptcy, we may not be able to recover the full value of certain contracts or termination fees. Our remaining performance obligation includes 100% of the remaining performance obligation of our consolidated ownership interests, which is consistent with the accounting for our ownership interest in these entities. (d) Business and Geographic Segment Information We operate in a single industry segment in which we provide satellite and other communications services to our customers around the world. Our revenues are disaggregated by billing region, service type and customer set. Revenue by region is based on the locations of customers to which services are billed. Our satellites are in geosynchronous orbit, and consequently are not attributable to any geographic location. Of our remaining assets, substantially all are located in the U.S. Intelsat CA revenues are allocated to the geographic location where the airline customer is domiciled. The following table disaggregates revenue by billing region (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended North America $ 266,516 54 % $ 298,750 57 % $ 758,999 53 % $ 871,104 57 % Europe 54,082 11 % 60,585 12 % 160,866 11 % 169,050 11 % Latin America and Caribbean 52,474 11 % 50,429 10 % 157,956 11 % 149,088 10 % Africa and Middle East 60,349 12 % 57,502 11 % 181,151 13 % 170,973 11 % Asia-Pacific 56,028 11 % 58,829 11 % 171,331 12 % 176,505 11 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 The following table disaggregates revenue by type of service (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended On-Network Revenues Transponder services $ 353,758 72 % $ 320,260 61 % $ 1,028,692 72 % $ 969,423 63 % Managed services 69,438 14 % 71,856 14 % 226,749 16 % 211,710 14 % Channel 280 — % 186 — % 1,096 — % 567 — % Total on-network revenues 423,476 87 % 392,302 75 % 1,256,537 88 % 1,181,700 77 % Off-Network and Other Revenues Transponder, MSS and other off-network services 54,478 11 % 40,090 8 % 141,783 10 % 122,393 8 % Satellite-related services 11,495 2 % 11,090 2 % 31,983 2 % 29,582 2 % Total off-network and other revenues 65,973 13 % 51,180 10 % 173,766 12 % 151,975 10 % In-flight Services Revenues Services — 67,482 13 % — 169,489 11 % Equipment — 15,131 3 % — 33,556 2 % Total in-flight services revenue — 82,613 16 % — 203,045 13 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 The following table disaggregates revenue by type of customer application (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Network services $ 169,594 35 % $ 241,737 46 % $ 495,671 35 % $ 676,740 44 % Media 203,552 42 % 181,069 34 % 611,946 43 % 550,175 36 % Government 107,981 22 % 95,008 18 % 299,840 21 % 288,764 19 % Satellite-related services 8,322 2 % 8,281 2 % 22,846 2 % 21,041 1 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 Our largest customer accounted for approximately 14% and 10% of our revenue during the three months ended September 30, 2020 and 2021, respectively, and 14% and 11% during the nine months ended September 30, 2020 and 2021, respectively. Our ten largest customers accounted for approximately 43% and 35% of our revenue during the three months ended September 30, 2020 and 2021, respectively, and 41% and 36% during the nine months ended September 30, 2020 and 2021, respectively. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per ShareBasic net loss per common share attributable to Intelsat S.A. (“EPS”) is computed by dividing net loss attributable to Intelsat S.A.’s common shareholders by the weighted average number of common shares outstanding during the periods. Diluted EPS assumes the issuance of common shares pursuant to share-based compensation plans and conversion of the Intelsat S.A. 4.5% Convertible Senior Notes due 2025 (the “2025 Convertible Notes”), unless the effect of such issuances would be anti-dilutive. The following table sets forth the computation of basic and diluted EPS (in thousands, except per share data or where otherwise noted): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Numerator: Net loss attributable to Intelsat S.A. $ (15,931) $ (145,690) $ (640,057) $ (472,872) Denominator: Basic weighted average shares outstanding (in millions) 142.1 142.2 141.9 142.2 Diluted weighted average shares outstanding (in millions) 142.1 142.2 141.9 142.2 Basic EPS $ (0.11) $ (1.02) $ (4.51) $ (3.33) Diluted EPS $ (0.11) $ (1.02) $ (4.51) $ (3.33) Due to a net loss for each of the three and nine months ended September 30, 2020 and 2021, there were no dilutive securities, and therefore, basic and diluted EPS were the same. The weighted average number of common shares that could potentially dilute basic EPS in the future was 22.3 million and 22.8 million for the three months ended September 30, 2020 and 2021, respectively, and 22.3 million and 22.6 million for the nine months ended September 30, 2020 and 2021, respectively, primarily consisting of the 2025 Convertible Notes. |
Retirement Plans and Other Reti
Retirement Plans and Other Retiree Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Other Retiree Benefits | Retirement Plans and Other Retiree Benefits (a) Pension and Other Postretirement Benefits We maintain a noncontributory defined benefit retirement plan covering employees hired prior to July 19, 2001. The cost of providing benefits to eligible participants under the defined benefit retirement plan is calculated using the plan’s benefit formulas, which take into account the participants’ remuneration, dates of hire, years of eligible service and certain actuarial assumptions. In addition, as part of the overall medical plan, we provide postretirement medical benefits to certain current and future retirees who meet the criteria under the medical plan for postretirement benefit eligibility. In 2015, we amended the defined benefit retirement plan to end the accrual of additional benefits for the remaining active participants. We have received authorization from the Bankruptcy Court to continue making contributions in the ordinary course during our Chapter 11 Cases. The defined benefit retirement plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). We expect that our future contributions to the defined benefit retirement plan will be based on the minimum funding requirements of the Internal Revenue Code and on the plan’s funded status. Any significant decline in the fair value of our defined benefit retirement plan assets or other adverse changes to the significant assumptions used to determine the plan’s funded status would negatively impact its funded status and could result in increased funding in future years. The impact on the funded status is determined based upon market conditions in effect when we completed our annual valuation. Included in accumulated other comprehensive loss at September 30, 2021 was $110.7 million ($79.1 million, net of tax) that has not yet been recognized in net periodic benefit cost. The tables below show the components of net periodic benefit cost (income) for the three and nine months ended September 30, 2020 and 2021 (in thousands). These amounts are recognized in other income (expense), net in the condensed consolidated statements of operations. Pension Benefits Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Interest cost $ 2,962 $ 2,030 $ 8,888 $ 6,091 Expected return on plan assets (5,810) (5,592) (17,431) (16,775) Amortization of unrecognized net loss 1,600 2,046 4,799 6,136 Net periodic benefit income $ (1,248) $ (1,516) $ (3,744) $ (4,548) Other Postretirement Benefits Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Interest cost $ 266 $ 149 $ 798 $ 447 Amortization of unrecognized prior service credits (636) (636) (1,908) (1,909) Amortization of unrecognized net gain (305) (347) (915) (1,039) Net periodic benefit income $ (675) $ (834) $ (2,025) $ (2,501) (b) Other Retirement Plans We maintain a defined contribution retirement plan qualified under the provisions of Section 401(k) of the Internal Revenue Code for our employees in the United States. We have received authorization from the Bankruptcy Court to continue making our contributions in the ordinary course during the Chapter 11 Cases. We recognized compensation expense for this plan of $2.2 million and $3.3 million for the three months ended September 30, 2020 and 2021, respectively, and $6.7 million and $10.1 million for the nine months ended September 30, 2020 and 2021, respectively. We also maintain other defined contribution retirement plans in several non-U.S. jurisdictions, but such plans are not material to our financial position or results of operations. |
Satellites and Other Property a
Satellites and Other Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Satellites and Other Property and Equipment | Satellites and Other Property and Equipment (a) Satellites and Other Property and Equipment, net Satellites and other property and equipment, net were comprised of the following (in thousands): As of As of Satellites and launch vehicles $ 10,500,021 $ 11,090,649 Information systems and ground segment 1,062,216 1,155,922 Buildings and other 322,093 320,534 Total cost 11,884,330 12,567,105 Less: accumulated depreciation (7,126,453) (7,585,711) Total $ 4,757,877 $ 4,981,394 Satellites and other property and equipment are stated at historical cost, except for satellites that have been impaired. Satellites and other property and equipment acquired as part of an acquisition are stated based on their fair value at the date of acquisition. Satellites and other property and equipment, net of accumulated depreciation as of December 31, 2020 and September 30, 2021, included construction-in-progress of $768.6 million and $1.2 billion, respectively. These amounts relate primarily to satellites under construction and related launch services. As of September 30, 2021, we incurred C-band clearing related costs and expenses of $1.1 billion, of which $972.2 million was capitalized. Of this capitalized amount, $887.6 million and $84.6 million were capitalized as satellites and other property and equipment, net of accumulated depreciation, and other current assets, respectively, in the condensed consolidated balance sheets. An estimated $904.8 million of the capitalized costs is expected to be reimbursable under the FCC Final Order. Interest costs of $10.5 million and $23.4 million were capitalized for the three months ended September 30, 2020 and 2021, respectively, and $20.7 million and $58.6 million were capitalized for the nine months ended September 30, 2020 and 2021, respectively. Additionally, depreciation expense was $154.4 million and $151.3 million for the three months ended September 30, 2020 and 2021, respectively, and $463.3 million and $462.8 million for the nine months ended September 30, 2020 and 2021, respectively. We have entered into launch contracts for the launch of both specified and unspecified future satellites. Each of these launch contracts may be terminated at our option, subject to payment of a termination fee that increases as the applicable launch date approaches. In addition, in the event of a failure of any launch, we may exercise our right to obtain a replacement launch within a specified period following our request for re-launch. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments We have an ownership interest in two entities that meet the criteria of a variable interest entity (“VIE”): Horizons Satellite Holdings LLC (“Horizons Holdings”) and Horizons-3 Satellite LLC (“Horizons 3”), which are discussed in further detail below, including our analyses of the primary beneficiary determination as required under ASC 810, Consolidation (“ASC 810”). We also own noncontrolling investments in equity securities and loan receivables as discussed further below. (a) Horizons Holdings Horizons Holdings is a joint venture with JSAT International, Inc. (“JSAT”) that consists of two investments: Horizons-1 Satellite LLC and Horizons-2 Satellite LLC. Horizons Holdings borrowed from JSAT a portion of the funds necessary to finance the construction of the Horizons 2 satellite pursuant to a loan agreement. The borrowing was subsequently repaid. We provide certain services to the joint venture and in return utilize capacity from the joint venture. We have determined that this joint venture meets the criteria of a VIE under ASC 810, and we have concluded that we are the primary beneficiary because decisions relating to any future relocation of the Horizons 2 satellite, the most significant asset of the joint venture, are effectively controlled by us. In accordance with ASC 810, as the primary beneficiary, we consolidate Horizons Holdings within our condensed consolidated financial statements. Total assets of Horizons Holdings were $14.2 million and $9.1 million as of December 31, 2020 and September 30, 2021, respectively. Total liabilities were nominal as of both December 31, 2020 and September 30, 2021. We have a revenue sharing agreement with JSAT related to services sold on the Horizons 1 and Horizons 2 satellites. We are responsible for billing and collection for such services, and we remit 50% of the revenue, less applicable fees and commissions, to JSAT. Amounts payable to JSAT related to the revenue sharing agreement, net of applicable fees and commissions, from the Horizons 1 and Horizons 2 satellites were $1.8 million and $2.8 million as of December 31, 2020 and September 30, 2021, respectively. (b) Horizons-3 Satellite LLC On November 4, 2015, we entered into an additional joint venture agreement with JSAT. The joint venture, Horizons 3, was formed for the purpose of developing, launching, managing, operating and owning a high-performance satellite located at the 169ºE orbital location. Horizons 3, which is 50% owned by each of Intelsat and JSAT, was set up with joint sharing of management authority and equal rights to profits and revenues from the joint venture. Similar to Horizons Holdings, we have a revenue sharing agreement with JSAT related to services sold on the Horizons 3e satellite. In addition, we are responsible for billing and collection for such services, and we remit 50% of the revenue, less applicable fees and commissions, to JSAT. Amounts payable to JSAT related to the revenue sharing agreement, net of applicable fees and commissions, from the Horizons 3e satellite were $5.0 million and $8.8 million as of December 31, 2020 and September 30, 2021, respectively. We have determined that this joint venture meets the criteria of a VIE under ASC 810; however, we have concluded that we are not the primary beneficiary and therefore do not consolidate Horizons 3. The assessment considered both quantitative and qualitative factors, including an analysis of voting power and other means of control of the joint venture, as well as each owner’s exposure to risk of loss or gain. Because we and JSAT equally share control over the operations of the joint venture and also equally share exposure to risk of losses or gains, we concluded that we are not the primary beneficiary of Horizons 3. Our investment, included within other assets in our condensed consolidated balance sheets, is accounted for using the equity method of accounting. The investment balance, which is equivalent to our maximum exposure to loss, was $103.8 million and $103.7 million as of December 31, 2020 and September 30, 2021, respectively. The investment balance exceeded our equity in the net assets of Horizons 3 by $10.9 million and $10.3 million as of December 31, 2020 and September 30, 2021, respectively. This basis difference represents the capitalized interest that we incurred in relation to financing our investment, and we recognize it as a reduction of our equity in earnings of Horizons 3 on a straight-line basis over the life of the satellite. We recognized a nominal amount of equity in losses of Horizons 3 in other income, net for each of the three and nine months ended September 30, 2020 and 2021. In connection with our investment in Horizons 3, we entered into a capital contribution and subscription agreement, which requires us to fund our 50% share of the amounts due in order to maintain our respective 50% interest in the joint venture. Pursuant to this agreement, we made contributions of $2.7 million for the year ended December 31, 2020, with no comparable amounts during the nine months ended September 30, 2021. We received distributions of $9.0 million for the year ended December 31, 2020, with no comparable amounts for the nine months ended September 30, 2021. The Company utilizes the cumulative earnings approach to determine whether distributions received from equity method investees are returns on investment or returns of investment. In addition, our indirect subsidiary that holds our investment in Horizons 3 has entered into a security and pledge agreement with Horizons 3, pursuant to which it has granted a security interest in its membership interest in Horizons 3. Further, our indirect subsidiary has granted a security interest to Horizons 3 in its customer capacity contracts and its ownership interest in its wholly-owned subsidiary that holds the FCC license required for the joint venture’s operations. The Horizons 3e satellite entered into service in January 2019. The Company purchases satellite capacity and related services from the Horizons 3 joint venture, and then sells that capacity to its customers. We incurred direct costs of revenue related to these purchases of $4.9 million and $4.5 million during the three months ended September 30, 2020 and 2021, respectively, and $14.9 million and $13.4 million during the nine months ended September 30, 2020 and 2021, respectively. The Company also sells managed ground network services to the Horizons 3 joint venture and provides program management services for a fee. We recorded an offset to direct costs of revenue related to the provision of these services of $1.7 million during each of the three months ended September 30, 2020 and 2021, and $5.2 million during each of the nine months ended September 30, 2020 and 2021. On the condensed consolidated balance sheets as of September 30, 2021, $0.9 million due from Horizons 3 was included in receivables with no comparable amount as of December 31, 2020, and $1.5 million due to Horizons 3 was included in accounts payable and accrued liabilities as of both December 31, 2020 and September 30, 2021. (c) Investments in Equity Securities The Company holds noncontrolling equity investments in four separate privately held companies, including investments in equity securities without readily determinable fair values and common stock warrants. In accordance with ASC 321, Investments—Equity Securities , we use the measurement alternative to measure the fair value of our investments in equity securities without readily determinable fair values. Accordingly, these investments are measured at cost, less any impairment, and are adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. We recognized an increase in fair value relating to investments of $7.3 million and $15.0 million for the three and nine months ended September 30, 2021, respectively, with no comparable amounts for the three and nine months ended September 30, 2020, which are recognized in other income, net in our condensed consolidated statements of operations. Additionally, during the second quarter of 2021, we sold all of our interest in one of our investments for $15.0 million, resulting in a gain of $5.3 million, which was recognized in other income, net in our condensed consolidated statements of operations. These investments were recorded in other assets in our condensed consolidated balance sheets and had a total carrying value of $31.9 million and $45.9 million as of December 31, 2020 and September 30, 2021, respectively. We measure our stock warrants at fair value and recognized an increase in fair value of stock warrants of $5.5 million for the six months ended June 30, 2021. These warrants were recorded in other assets in our condensed consolidated balance sheets and had a cumulative fair value of $3.2 million and $8.8 million as of December 31, 2020 and June 30, 2021, respectively. During the three months ended September 30, 2021, these warrants were converted into common shares of a newly merged public company. As a result of the conversion, we recognized a gain of $7.3 million, as well as an additional gain of $1.8 million related to an amendment fee for a loan receivable, both of which are included in other income, net in our condensed consolidated statements of operations for the three and nine months ended September 30, 2021. There were no comparable amounts for the three and nine months ended September 30, 2020. As of September 30, 2021, these common shares had a fair value of $16.0 million, which is included in other assets in our condensed consolidated balance sheets. (d) Loan Receivables The Company has loan receivables from three privately held companies that it is holding for long-term investment. These loan receivables are reported at amortized cost, net of the allowance for credit losses. Amortized cost is the outstanding principal, adjusted for unamortized discounts and deferred transaction costs. The Company recognizes interest income on loan receivables using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective interest method. Loan receivables were recorded in other assets in our condensed consolidated balance sheets at an amortized cost basis of $71.2 million and $74.0 million as of December 31, 2020 and September 30, 2021, respectively. As of December 31, 2020 and September 30, 2021, $1.9 million and $3.1 million, respectively, of accrued interest related to our loan receivables was recorded in prepaid expenses and other current assets in our condensed consolidated balance sheets. We recognized interest income related to our loan receivables of $1.0 million and $1.1 million for the three months ended September 30, 2020 and 2021, respectively, and $2.9 million and $3.1 million for the nine months ended September 30, 2020 and 2021, respectively. A loan is determined to be impaired and placed on non-accrual status when, in management’s judgment based on current information and events, it is probable that the Company will be unable to collect all amounts due under the contractual terms of the applicable loan agreement. We recognized impairment losses of $0.6 million related to loan receivables during the three and nine months ended September 30, 2020, with no comparable amounts for the three and nine months ended September 30, 2021. The fair value of loan receivables is evaluated on a loan-by-loan basis, and is determined based on assessments of discounted cash flows that are considered probable of collection. We consider these inputs to be Level 3 within the fair value hierarchy under ASC 820. The cumulative fair value of our loan receivables as of December 31, 2020 and September 30, 2021 was $72.9 million and $77.4 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets (a) Goodwill As a result of the Gogo Transaction, we provisionally recognized goodwill of $77.6 million as of December 1, 2020, which was subsequently decreased by $8.8 million as a result of measurement period adjustments during the nine months ended September 30, 2021. See Note 3—Acquisition of Gogo’s Commercial Aviation Business for additional discussion. The carrying amounts of goodwill consisted of the following (in thousands): As of As of Goodwill $ 6,858,447 $ 6,849,682 Accumulated impairment losses (4,160,200) (4,160,200) Net carrying amount $ 2,698,247 $ 2,689,482 (b) Orbital Locations, Trade Name and Other Intangible Assets Orbital Locations and Trade Name. During the first quarter of 2020, we recognized an impairment of our trade name intangible asset of $12.2 million, which is included within impairment of non-amortizable intangible assets in the condensed consolidated statements of operations. The carrying amounts of acquired intangible assets not subject to amortization consisted of the following (in thousands): As of As of Orbital locations $ 2,250,000 $ 2,250,000 Trade name 45,000 45,000 Total non-amortizable intangible assets $ 2,295,000 $ 2,295,000 Other Intangible Assets. The carrying amounts and accumulated amortization of acquired intangible assets subject to amortization consisted of the following (in thousands): As of December 31, 2020 As of September 30, 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Backlog and other $ 744,760 $ (722,697) $ 22,063 $ 744,760 $ (729,782) $ 14,978 Customer relationships 534,030 (309,486) 224,544 534,030 (324,835) 209,195 Software 45,808 (1,846) 43,962 49,122 (10,940) 38,182 Total $ 1,324,598 $ (1,034,029) $ 290,569 $ 1,327,912 $ (1,065,557) $ 262,355 Intangible assets are amortized based on the expected pattern of consumption. Amortization expense was $7.8 million and $10.3 million for the three months ended September 30, 2020 and 2021, respectively, and $23.3 million and $31.5 million for the nine months ended September 30, 2020 and 2021, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DebtAs discussed in Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters, the filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the prepetition existing indebtedness of Intelsat S.A., Intelsat Luxembourg, Intelsat Connect and Intelsat Jackson. As such, we have reclassified all such debt obligations, other than debt subject to compromise, to current maturities of long-term debt on our condensed consolidated balance sheet as of September 30, 2021. Any efforts to enforce payment obligations related to the acceleration of our debt have been automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditors’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. While the Chapter 11 Cases are pending, the Debtors do not anticipate making interest payments due under their respective unsecured debt instruments; however, the Debtors expect to make monthly interest payments on their senior secured debt instruments pursuant to the adequate protection requirements under the DIP Order. The carrying values and fair values of our notes payable and debt were as follows (in thousands): As of December 31, 2020 As of September 30, 2021 Carrying Value Fair Value Carrying Value Fair Value Intelsat S.A.: 4.5% Convertible Senior Notes due June 2025 (1) $ 402,500 $ 130,813 $ 402,500 $ 56,350 Unamortized prepaid debt issuance costs and discount on 4.5% Convertible Senior Notes — — — — Total Intelsat S.A. obligations 402,500 130,813 402,500 56,350 Intelsat Luxembourg: 7.75% Senior Notes due June 2021 (1) 421,219 14,743 421,219 2,106 Unamortized prepaid debt issuance costs on 7.75% Senior Notes — — — — 8.125% Senior Notes due June 2023 (1) 1,000,000 130,000 1,000,000 95,000 Unamortized prepaid debt issuance costs on 8.125% Senior Notes — — — — 12.5% Senior Notes due November 2024 (1) 403,350 42,352 403,350 30,251 Unamortized prepaid debt issuance costs and discount on 12.5% Senior Notes — — — — Total Intelsat Luxembourg obligations 1,824,569 187,095 1,824,569 127,357 Intelsat Connect Finance: 9.5% Senior Notes due February 2023 (1) 1,250,000 334,375 1,250,000 312,500 Unamortized prepaid debt issuance costs and discount on 9.5% Senior Notes — — — — Total Intelsat Connect Finance obligations 1,250,000 334,375 1,250,000 312,500 Intelsat Jackson: 9.5% Senior Secured Notes due September 2022 490,000 543,900 490,000 578,813 Unamortized prepaid debt issuance costs and discount on 9.5% Senior Secured Notes (7,495) — (4,450) — 8% Senior Secured Notes due February 2024 1,349,678 1,373,297 1,349,678 1,385,107 Unamortized prepaid debt issuance costs and premium on 8% Senior Secured Notes (3,072) — (2,403) — 5.5% Senior Notes due August 2023 (1) 1,985,000 1,349,800 1,985,000 1,091,750 Unamortized prepaid debt issuance costs on 5.5% Senior Notes — — — — 9.75% Senior Notes due July 2025 (1) 1,885,000 1,347,775 1,885,000 1,050,888 Unamortized prepaid debt issuance costs on 9.75% Senior Notes — — — — 8.5% Senior Notes due October 2024 (1) 2,950,000 2,079,750 2,950,000 1,666,750 Unamortized prepaid debt issuance costs and premium on 8.5% Senior Notes — — — — Senior Secured Credit Facilities due November 2023 2,000,000 2,025,000 2,000,000 2,022,140 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (16,955) — (12,869) — Senior Secured Credit Facilities due January 2024 395,000 400,925 395,000 400,680 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (1,238) — (952) — 6.625% Senior Secured Credit Facilities due January 2024 700,000 714,000 700,000 709,918 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (2,194) — (1,689) — As of December 31, 2020 As of September 30, 2021 Carrying Value Fair Value Carrying Value Fair Value Superpriority Senior Secured DIP Credit Facilities due July 2021 1,000,000 1,011,250 — — Superpriority Senior Secured DIP Credit Facilities due July 2022 — — 1,250,000 1,257,288 Total Intelsat Jackson obligations 12,723,724 10,845,697 12,982,315 10,163,334 Eliminations: 8.125% Senior Notes of Intelsat Luxembourg due June 2023 owned by Intelsat Jackson (1) (111,663) (14,517) (111,663) (10,608) Unamortized prepaid debt issuance costs on 8.125% Senior Notes — — — — 12.5% Senior Notes of Intelsat Luxembourg due November 2024 owned by Intelsat Connect Finance, Intelsat Jackson and Intelsat Envision (1) (403,245) (42,341) (403,245) (30,243) Unamortized prepaid debt issuance costs and discount on 12.5% Senior Notes — — — — Total eliminations: (514,908) (56,858) (514,908) (40,851) Total Intelsat S.A. debt 15,685,885 11,441,122 15,944,476 10,618,690 Less: current maturities of long-term debt 5,903,724 6,068,372 6,162,315 6,353,946 Less: debt included in liabilities subject to compromise 9,782,161 5,372,750 9,782,161 4,264,744 Total Intelsat S.A. long-term debt — — — — (1) In connection with the Chapter 11 Cases, these balances have been reclassified as liabilities subject to compromise in our condensed consolidated balance sheet as of September 30, 2021. As of April 15, 2020, the Company ceased making principal and interest payments, and as of May 13, 2020 ceased accruing interest expense in relation to this long-term debt that was reclassified as liabilities subject to compromise. The fair value for publicly traded instruments is determined using quoted market prices, and the fair value for non-publicly traded instruments is based upon composite pricing from a variety of sources, including market leading data providers, market makers and leading brokerage firms. Substantially all of the inputs used to determine the fair value of our debt are classified as Level 1 inputs within the fair value hierarchy from ASC 820, except our senior secured credit facilities and our 2025 Convertible Notes, the inputs for which are classified as Level 2, and Intelsat Luxembourg’s 8.125% Senior Notes due 2023 and 12.5% Senior Notes due 2024, the inputs for which are classified as Level 3. While the Company’s Chapter 11 proceedings remain ongoing, trading and fair value pricing may be more volatile and limited. Intelsat Jackson Superpriority Senior Secured Debtor-in-Possession Term Loan Facility On June 9, 2020, Intelsat Jackson received approval from the Bankruptcy Court to enter into the Original DIP F acility in an aggregate principal amount of $1.0 billion on the terms and conditions as set forth in the Original DIP Credit Agreement and on June 17, 2020, the DIP Debtors entered into the Original DIP Credit Agreement. On September 14, 2021, the DIP Debtors received approval from the Bankruptcy Court for the DIP Order to enter into the New DIP Facility in an aggregate principal amount of $1.5 billion on the terms and conditions as set forth in the New DIP Credit Agreement, and on September 14, 2021, Intelsat Jackson and certain of the DIP Debtors entered into the New DIP Credit Agreement. The New DIP Facility provided $1.25 billion in new money at closing for Intelsat Jackson to, among other things, refinance the Original DIP Facility and, provides the ability for Intelsat Jackson, at its sole discretion, to make an incremental $250.0 million draw on the terms and conditions set forth therein. See Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters. Drawn amounts under the New DIP Facility bear interest at either (i) 3.75% per annum plus a base rate of the highest of (a) the Federal Funds Effective Rate plus ½ of 1.0%, (b) the Prime Rate as in effect on such day and (c) the LIBOR Rate for a one-month Interest Period on such day (or if such day is not a Business Day (as defined in the New DIP Credit Agreement), the immediately preceding Business Day), plus 1.0%, or (ii) 4.75% plus the LIBOR Rate. Undrawn amounts under the New DIP Facility shall be subject to a ticking fee of 3.6% of the amount of commitments of the DIP Lenders from the entry of the DIP Order until such commitments have terminated, which ticking fee shall be payable on the last day of each fiscal quarter prior to the date such commitments have been terminated and on the date of such termination. During the continuance of a payment event of default, overdue amounts under the New DIP Facility will bear interest at an additional 2.0% per annum above the interest rate otherwise applicable. The use of proceeds under the New DIP Facility include: (i) the payment of working capital of the DIP Debtors in the ordinary course of business, (ii) C-band relocation costs, (iii) investment and other general corporate purposes, (iv) the payment of the costs and expenses of administering the Chapter 11 Cases, (v) the adequate protection payments and (vi) the repayment of obligations under the Original DIP Credit Agreement. The maturity date of the New DIP Facility is July 13, 2022, subject to the DIP Debtors’ ability to extend for regulatory purposes. The New DIP Credit Agreement includes customary negative covenants for debtor-in-possession loan agreements of this type, including covenants limiting the Company’s and its subsidiaries’ ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of junior or prepetition indebtedness, in each case subject to customary exceptions for debtor-in-possession loan agreements of this type. The New DIP Credit Agreement also includes certain customary representations and warranties, affirmative covenants and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA and change of control. Certain bankruptcy-related events are also events of default, including, but not limited to, the dismissal by the Bankruptcy Court of any of the Chapter 11 Cases, the conversion of any of the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code and certain other events related to the impairment of the DIP Lenders’ rights or liens granted under the New DIP Credit Agreement. The foregoing descriptions of the Original DIP Credit Agreement and the New DIP Credit Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Original DIP Credit Agreement and the New DIP Credit Agreement, as applicable. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. In response to the COVID-19 pandemic, on March 18, 2020, the Families First Coronavirus Response Act (the “FFCR Act”) was enacted, and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The FFCR Act and the CARES Act contain numerous income tax provisions, such as increasing the 30 percent adjusted taxable income threshold to 50 percent for taxable years beginning in 2019 and 2020 for purposes of determining allowable business interest expense deductions. The CARES Act repeals the 80 percent limitation for taxable years beginning before January 1, 2021 (enacted by the U.S. Tax Cut and Jobs Act (the “Act”)), and it further specifies that net operating losses arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, are allowed as a carryback to each of the five taxable years preceding the taxable year of such losses. Modifications to the tax rules for the carryback of net operating losses and business interest limitations resulted in a federal tax refund of approximately $11.4 million and $26.9 million for the three and nine months ended September 30, 2020, respectively. In addition, the CARES Act includes refundable payroll tax credits and deferral of employment side social security payments. As of September 30, 2021, Intelsat’s payroll deferral amount was approximately $6.8 million. The majority of our operations are located in taxable jurisdictions, including Luxembourg, the U.S. and the United Kingdom (“UK”). Due to our cumulative losses in recent years, and the inherent uncertainty associated with the realization of taxable income in the foreseeable future, we recorded a full valuation allowance against the cumulative net operating losses generated in Luxembourg. The difference between tax expense (benefit) reported in the condensed consolidated statements of operations and tax computed at statutory rates is attributable to the valuation allowance on losses generated in Luxembourg, the provision for foreign taxes, which were principally in the U.S. and the UK, as well as withholding taxes on revenue earned in some of the foreign markets in which we operate, benefits recorded in 2020 from impacts of the CARES Act and a tax reserve established on certain tax benefits taken on the Base Erosion and Anti-Abuse Tax (“BEAT”). As of December 31, 2020 and September 30, 2021, our gross unrecognized tax benefits were $51.4 million and $55.7 million, respectively (including interest and penalties), of which $47.6 million and $51.7 million, respectively, if recognized, would affect our effective tax rate. As of December 31, 2020 and September 30, 2021, we had recorded reserves for interest and penalties in the amounts of $0.8 million and $1.1 million, respectively. We continue to recognize interest and, to the extent applicable, penalties with respect to the unrecognized tax benefits as income tax expense. Since December 31, 2020, the change in the balance of unrecognized tax benefits has consisted of an increase of $5.6 million related to current tax positions, an increase of $0.2 million related to prior tax positions, and a decrease of $1.5 million related to the expiration of a statute of limitations on the assessment of certain taxes. We operate in various taxable jurisdictions throughout the world, and our tax returns are subject to audit and review from time to time. We consider Luxembourg, the U.S., the UK and Brazil to be our significant tax jurisdictions. Our subsidiaries in these jurisdictions are subject to income tax examination for periods after December 31, 2015. We believe that there are no jurisdictions in which the outcome of unresolved tax issues or claims is likely to be material to our results of operations, financial position or cash flows within the next twelve months. Effective January 31, 2020, the UK formally exited the European Union (“EU”). As a result of the withdrawal, existing tax reliefs and exemptions on intra-European transactions will likely cease to apply to transactions between UK entities and EU entities. In addition, transactions with non-EU countries, such as the U.S., may also be affected. As of September 30, 2021, all relevant tax laws and treaties remained unchanged and the tax consequences were unknown. Therefore, we have not recognized any impacts of the withdrawal in the income tax provision as of September 30, 2021. We will recognize any impacts to the tax provision when changes in tax laws or treaties between the UK and the EU or individual EU member states are enacted. On December 2, 2019, the U.S. Department of Treasury and the U.S. Internal Revenue Service released final regulations with respect to the BEAT as enacted by the Act. These regulations represent the final version of proposed regulations which were released in December 2018. The BEAT is a minimum tax established by the Act, which was signed into law in December 2017, that subjects certain payments made by U.S. corporations or subsidiaries to foreign related parties to a secondary federal income tax regime in the U.S. The final regulations clarify which taxpayers are subject to the BEAT and how the BEAT rules apply to certain payments and transactions. We have adopted the final BEAT regulations as of the release date. These regulations are effective for the Company as of its tax year ended December 31, 2018. A second set of final regulations was issued on September 1, 2020, addressing among other topics, the application of the BEAT to partnerships and the application of the effectively connected income exception to depreciable or amortizable property contributed to a U.S. partnership by a foreign partner. Similar to the first set of final regulations issued in December 2019, the second set of final regulations are effective for the Company as of its tax year ended December 31, 2018. The Company recognized the BEAT tax impact associated with the second set of final regulations related to its tax year ended December 31, 2020 and nine months ended September 30, 2021 in the amounts of $8.8 million and $5.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On May 13, 2020, Intelsat S.A. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of such bankruptcy filings, substantially all proceedings pending against the Debtors have been stayed and prepetition liabilities are subject to compromise. See Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters. SES Claim On July 14, 2020, SES Americom, Inc. (“SES”) filed a proof of claim in the Bankruptcy Court in the amount of $1.8 billion against each of the Debtors. SES asserts that the Debtors owe money (or will owe money) to SES pursuant to certain contractual and fiduciary obligations made in the context of the consortium agreement entered into in September of 2018 among Debtor Intelsat US LLC, SES, and other satellite operators (the “Consortium Agreement”). SES claims that it is entitled to 50% of the combined payments that may eventually be payable to the Debtors and SES pursuant to the FCC Final Order, which provides for Acceleration Payments subject to the satisfaction of certain deadlines and other conditions set forth therein. SES’s proof of claim alleges that the Debtors breached the Consortium Agreement by taking the position that the Debtors are not required to split Acceleration Payments with SES and the other members of the consortium. The proof of claim also alleges breach of fiduciary duties and unjust enrichment and seeks monetary and punitive damages. We dispute the allegations in the proof of claim and on October 19, 2020, filed an objection to the claim, which we intend to litigate vigorously. The Bankruptcy Court has scheduled the trial on the SES claim to commence in January 2022. To the extent that any portion of SES’s claim is allowed, we have asked the Bankruptcy Court to “equitably subordinate” such claim based on SES’s conduct in matters related to the Consortium Agreement. While the ultimate resolution of the claim is not currently predictable, if there is an adverse ruling, the ruling could constitute a material adverse outcome on our future consolidated financial condition. Other Litigation Matters In the absence of the automatic stay due to the Chapter 11 Cases, we are subject to litigation in the ordinary course of business. Management does not believe that the resolution of any pending proceedings would have a material adverse effect on our financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions (a) Shareholders’ Agreements Certain shareholders of Intelsat S.A. entered into a shareholders’ agreement in December 2018, which provides, among other things, specific rights to and limitations upon the holders of Intelsat S.A.’s share capital with respect to shares held by such holders. (b) Governance Agreement In December 2018, the Company entered into a governance agreement with its shareholder affiliated with Serafina S.A. The agreement contains provisions relating to the composition of the Company’s board of directors and certain other matters. (c) Indemnification Agreements We have entered into agreements with our executive officers and directors to provide contractual indemnification in addition to the indemnification provided for in our articles of incorporation. (d) Horizons Holdings We have a 50% ownership interest in Horizons Holdings as a result of a joint venture with JSAT (see Note 9(a)—Investments—Horizons Holdings). (e) Horizons-3 Satellite LLC We have a 50% ownership interest in Horizons 3 as a result of a joint venture with JSAT (see Note 9(b)—Investments—Horizons-3 Satellite LLC). |
Condensed Combined Debtors' Fin
Condensed Combined Debtors' Financial Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Combined Debtors' Financial Information | Condensed Combined Debtors' Financial Information The following presents our Debtors' condensed combined balance sheets as of December 31, 2020 and September 30, 2021, statements of operations for the three and nine months ended September 30, 2020 and 2021, and statements of cash flows for the nine months ended September 30, 2020 and 2021. Consolidating adjustments include eliminations of the following: • investments in subsidiaries; • intercompany accounts; • intercompany sales and expenses; and • intercompany equity balances. Intercompany balances with non-Debtor affiliates have not been eliminated. On the Debtors’ condensed combined balance sheets, these primarily consist of net intercompany trade receivables generated under our Master Intercompany Service Agreement (“MISA”), funding for the operations of non-Debtor affiliates and funding for the acquisition of Intelsat CA. On the Debtors’ condensed combined statements of operations, total reported revenue includes intercompany revenue of $106.0 million and $69.7 million for the three months ended September 30, 2020 and 2021, respectively, and $228.6 million and $208.1 million for the nine months ended September 30, 2020 and 2021, respectively, primarily consisting of satellite capacity charges. Cost from affiliates primarily relates to sales and technical support services provided to Debtors as specified under the MISA. Investments in non-Debtor affiliates are presented under the equity method of accounting in the condensed combined financial statements set forth below. DEBTORS' CONDENSED COMBINED BALANCE SHEET (in thousands, except per share amounts) December 31, 2020 September 30, 2021 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 879,191 $ 418,715 Restricted cash 20,817 27,308 Receivables, net of allowances of $34,391 in 2020 and $26,127 in 2021 156,402 116,994 Receivables relating to C-band 405,171 1,035,578 Contract assets, net of allowances 15,474 14,244 Inventory 1,347 929 Prepaid expenses and other current assets 100,021 108,400 Intercompany receivables 678,188 914,875 Total current assets 2,256,611 2,637,043 Satellites and other property and equipment, net 4,656,678 4,890,864 Goodwill 2,624,452 2,624,452 Non-amortizable intangible assets 2,295,000 2,295,000 Amortizable intangible assets, net 245,649 224,173 Contract assets, net of current portion and allowances 26,642 21,600 Investment in affiliates 150,029 (12,342) Other assets 357,897 489,954 Total assets $ 12,612,958 $ 13,170,744 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued liabilities $ 222,876 $ 364,253 Taxes payable 6,743 6,925 Employee-related liabilities 36,563 33,974 Accrued interest payable 17,747 19,094 Current maturities of long-term debt 5,903,724 6,162,315 Contract liabilities 146,762 845,055 Deferred satellite performance incentives 47,377 54,512 Other current liabilities 43,885 75,683 Total current liabilities 6,425,677 7,561,811 Contract liabilities, net of current portion 1,422,893 1,270,745 Deferred satellite performance incentives, net of current portion 138,116 121,439 Deferred income taxes 61,069 74,701 Accrued retirement benefits, net of current portion 129,837 113,452 Other long-term liabilities 188,394 246,867 Liabilities subject to compromise 10,168,518 10,169,243 Shareholders’ deficit: Common shares, nominal value $0.01 per share 1,421 1,422 Paid-in capital 2,573,840 2,577,607 Accumulated deficit (8,416,410) (8,889,282) Accumulated other comprehensive loss (80,397) (77,261) Total shareholders’ deficit (5,921,546) (6,387,514) Total liabilities and shareholders’ deficit $ 12,612,958 $ 13,170,744 DEBTORS' UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Revenue $ 473,556 $ 404,727 $ 1,314,307 $ 1,215,558 Operating expenses: Direct costs of revenue (excluding depreciation and amortization) 68,891 66,106 199,958 195,254 Selling, general and administrative 57,659 56,964 181,931 175,722 Cost from affiliates 9,785 11,766 32,047 35,575 Depreciation and amortization 157,442 150,683 472,610 459,743 Impairment of non-amortizable intangible and other assets — — 46,243 — Other operating expense—C-band 298 17,867 580 140,861 Total operating expenses 294,075 303,386 933,369 1,007,155 Income from operations 179,481 101,341 380,938 208,403 Interest expense, net (137,444) (119,049) (677,124) (367,477) Equity in loss of affiliates (40,791) (34,280) (41,260) (128,793) Other income, net 2,973 11,594 15,007 39,224 Reorganization items (36,367) (98,316) (335,059) (203,719) Loss before income taxes (32,148) (138,710) (657,498) (452,362) Income tax benefit (expense) 16,217 (6,980) 17,441 (20,510) Net loss $ (15,931) $ (145,690) $ (640,057) $ (472,872) DEBTORS' UNAUDITED CONDENSED COMBINED STATEMENT OF CASH FLOWS (in thousands) Nine Months Ended Nine Months Ended Cash flows from operating activities: Net loss $ (640,057) $ (472,872) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 472,610 459,743 Provision for expected credit losses 34,465 17,224 Foreign currency transaction (gains) losses (801) 863 Loss on disposal of assets — 43 Impairment of non-amortizable intangible and other assets 46,243 — Share-based compensation 9,031 3,586 Deferred income taxes 5,470 11,102 Amortization of discount, premium, issuance costs and related costs 19,689 7,559 Non-cash reorganization items 196,974 — Debtor-in-possession financing fees 52,182 46,944 Amortization of actuarial loss and prior service credits for retirement benefits 1,976 3,189 Unrealized losses on derivative financial instruments 372 — Unrealized losses (gains) on investments and loans held-for-investment 721 (46,661) Equity in (income) losses of affiliates 41,260 128,793 Other non-cash items (7) (517) Changes in operating assets and liabilities: Receivables 12,841 21,697 Intercompany receivables (105,048) (155,277) Prepaid expenses, contract and other assets (81,814) 6,124 Accounts payable and accrued liabilities 69,812 116,437 Accrued interest payable 48,713 1,347 Contract liabilities (66,304) (84,422) Accrued retirement benefits (12,253) (16,385) Other long-term liabilities 2,801 (20,132) Net cash provided by (used in) operating activities 108,876 28,385 Cash flows from investing activities: Capital expenditures (including capitalized interest) (414,610) (661,091) Acquisition of loan to affiliate — (60,000) Dividends from affiliates 28,960 34,276 Proceeds from sale of investment — 15,000 Loan amendment fees received — 1,800 Proceeds from principal payments on loans held-for-investment 973 208 Capital contribution to affiliates (9,005) — Other proceeds from satellites 5,625 — Net cash used in investing activities (388,057) (669,807) Cash flows from financing activities: Proceeds from debtor-in-possession financing 500,000 1,250,000 Repayments of debtor-in-possession financing — (1,000,000) Debtor-in-possession financing fees (52,182) (46,944) Principal payments on deferred satellite performance incentives (25,428) (14,859) Net cash provided by (used in) financing activities 422,390 188,197 Effect of exchange rate changes on cash, cash equivalents and restricted cash 754 (760) Net change in cash, cash equivalents and restricted cash 143,963 (453,985) Cash, cash equivalents, and restricted cash, beginning of period 755,313 900,008 Cash, cash equivalents, and restricted cash, end of period $ 899,276 $ 446,023 Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated Debtors' balance sheet to the total sum of these same amounts shown on the condensed consolidated Debtors' statement of cash flows: Cash and cash equivalents $ 880,185 $ 418,715 Restricted cash 19,091 27,308 Total cash, cash equivalents and restricted cash reported in the condensed consolidated Debtors' statement of cash flows $ 899,276 $ 446,023 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Intelsat S.A. and its subsidiaries (“Intelsat S.A.,” “we,” “us,” “our” or the “Company”) have not been audited, but are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. References to U.S. GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification (“ASC”). The unaudited condensed consolidated financial statements include all adjustments (consisting only of normal and recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of these financial statements. The results of operations for the periods presented are not necessarily indicative of operating results for the full year or for any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), on file with the U.S. Securities and Exchange Commission (“SEC”). |
Use of Estimates | Use of Estimates The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these condensed consolidated financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. |
Bankruptcy Accounting | Bankruptcy AccountingOur consolidated financial statements included herein have been prepared as if we are a going concern and reflect the application of ASC 852, Reorganizations (“ASC 852”). ASC 852 requires the financial statements, for periods subsequent to the commencement of our Chapter 11 proceedings, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, we classify liabilities and obligations whose treatment and satisfaction are dependent on the outcome of the reorganization under the Chapter 11 proceedings as liabilities subject to compromise on our condensed consolidated balance sheets. In addition, we classify all income, expenses, gains or losses that are incurred or realized as a result of the Chapter 11 proceedings as reorganization items in our condensed consolidated statements of operations. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less, which are generally time deposits with banks and money market funds. The carrying amount of these investments approximates fair value. Restricted cash represents legally restricted amounts being held as a compensating balance for certain outstanding letters of credit. |
Receivables and Allowance for Credit Losses | Receivables and Allowance for Credit Losses We provide satellite services and extend credit to numerous customers in the satellite communication, telecommunications and video markets, as well as the airline industry. We monitor our exposure to credit losses and maintain allowances for credit losses and anticipated losses. The Company’s methodology to measure the provision for credit losses considers all relevant information, including but not limited to, information about historical collectability, current conditions and reasonable and supportable forecasts of future economic conditions. We believe we have adequate customer collateral and reserves to cover our exposure. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting For Income Taxes (“ASU 2019-12”). The standard removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 was adopted in the first quarter of 2021. The adoption of ASU 2019-12 did not have a material effect on our condensed consolidated financial statements and associated disclosures. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts regarding an entity’s own equity. ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2021. We are in the process of evaluating the impact that ASU 2020-06 will have on our condensed consolidated financial statements and associated disclosures. In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Revenue Recognition | (c) Remaining Performance Obligations Our remaining performance obligation is our expected future revenue under our existing customer contracts and includes both cancelable and non-cancelable contracts. Our remaining performance obligation was approximately $5.6 billion as of September 30, 2021. As of September 30, 2021, the weighted average remaining customer contract life was approximately 3.9 years. Approximately 30%, 29%, and 41% of our total remaining performance obligation as of September 30, 2021 is expected to be recognized as revenue during 2021 and 2022, 2023 and 2024, and 2025 and thereafter, respectively. The amount included in the remaining performance obligation represents the full-service charge for the duration of the contract and does not include termination fees. The amount of the termination fees, which is not included in the remaining performance obligation amount, is generally calculated as a percentage of the remaining performance obligation associated with the contract. In certain cases of breach for non-payment or customer financial distress or bankruptcy, we may not be able to recover the full value of certain contracts or termination fees. Our remaining performance obligation includes 100% of the remaining performance obligation of our consolidated ownership interests, which is consistent with the accounting for our ownership interest in these entities. (d) Business and Geographic Segment Information |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our condensed consolidated balance sheets to the total sum of these amounts reported in our condensed consolidated statements of cash flows (in thousands): As of As of Cash and cash equivalents $ 1,060,917 $ 636,510 Restricted cash 21,130 27,675 Restricted cash included in other assets 5,500 — Cash, cash equivalents and restricted cash $ 1,087,547 $ 664,185 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our condensed consolidated balance sheets to the total sum of these amounts reported in our condensed consolidated statements of cash flows (in thousands): As of As of Cash and cash equivalents $ 1,060,917 $ 636,510 Restricted cash 21,130 27,675 Restricted cash included in other assets 5,500 — Cash, cash equivalents and restricted cash $ 1,087,547 $ 664,185 |
Accounts Receivable, Allowance for Credit Loss | The following table provides a roll-forward of the allowance for credit losses reported within our condensed consolidated balance sheets (in thousands): Description Three Months Ended September 30, 2020 Three Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at July 1 $ 27,578 $ 1,638 $ 29,202 $ 4,346 Charged to costs and expenses 6,743 75 6,484 (617) Deductions (1) (4,483) — (2,737) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 Description Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at January 1 $ 40,028 $ — $ 40,785 $ 3,889 Cumulative-effect adjustment of ASU 2016-13 adoption — 916 — — Charged to costs and expenses 35,563 797 21,889 (160) Deductions (1) (45,753) — (29,725) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 (1) Uncollectible accounts written off, net of recoveries. |
Contract with Customer, Asset, Allowance for Credit Loss | The following table provides a roll-forward of the allowance for credit losses reported within our condensed consolidated balance sheets (in thousands): Description Three Months Ended September 30, 2020 Three Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at July 1 $ 27,578 $ 1,638 $ 29,202 $ 4,346 Charged to costs and expenses 6,743 75 6,484 (617) Deductions (1) (4,483) — (2,737) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 Description Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Accounts Receivable Contract Assets Accounts Receivable Contract Assets Balance at January 1 $ 40,028 $ — $ 40,785 $ 3,889 Cumulative-effect adjustment of ASU 2016-13 adoption — 916 — — Charged to costs and expenses 35,563 797 21,889 (160) Deductions (1) (45,753) — (29,725) — Balance at September 30 $ 29,838 $ 1,713 $ 32,949 $ 3,729 (1) Uncollectible accounts written off, net of recoveries. |
Chapter 11 Proceedings, Abili_2
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
Liabilities Subject to Compromise | Liabilities subject to compromise consisted of the following (in thousands): As of As of Accounts payable $ 9,545 $ 10,671 Debt subject to comprise 9,782,161 9,782,161 Accrued interest on debt subject to compromise 341,676 341,676 Other long-term liabilities subject to compromise 35,136 34,735 Total liabilities subject to compromise $ 10,168,518 $ 10,169,243 |
Reorganization Items | Reorganization items consisted of the following (in thousands): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Adjustment of debt discount, premium and issuance costs $ — $ — $ 196,974 $ — Debtor-in-possession financing fees — 46,944 52,182 46,944 Professional fees 36,262 50,825 85,233 156,199 Other reorganization costs 105 547 670 576 Total reorganization items $ 36,367 $ 98,316 $ 335,059 $ 203,719 |
Acquisition of Gogo's Commerc_2
Acquisition of Gogo's Commercial Aviation Business (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Allocation of Purchase Consideration and Measurement Period Adjustments | The following table summarizes the preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed on the acquisition date, based on estimated fair values both as disclosed in the Company’s 2020 Annual Report and as adjusted for measurement period adjustments identified during the nine months ended September 30, 2021 (in thousands): Purchase Price Allocation As of Measurement Period Adjustments As of Assets acquired Cash and cash equivalents $ 9,867 $ — $ 9,867 Receivables, net of allowances 52,849 138 52,987 Inventory 144,014 (5,619) 138,395 Prepaid expenses and other current assets 36,140 — 36,140 Property and equipment 41,328 5,063 46,391 Amortizable intangible assets Software 45,464 — 45,464 Trade name 1,000 — 1,000 Goodwill 77,620 (8,765) 68,855 Other assets Supplemental type certificates 24,253 48 24,301 Line fit certificates 21,776 — 21,776 Other assets 100,566 — 100,566 Total assets acquired 554,877 (9,135) 545,742 Liabilities assumed Current liabilities Accounts payable and accrued liabilities (63,300) 779 (62,521) Contract liabilities (13,527) 513 (13,014) Other current liabilities (25,472) — (25,472) Noncurrent liabilities (43,522) — (43,522) Total liabilities assumed (145,821) 1,292 (144,529) Total purchase consideration $ 409,056 $ (7,843) $ 401,213 |
Pro Forma Information | The following table presents the unaudited pro forma revenue and net loss of the Company, inclusive of Intelsat CA, as if the acquisition had occurred on January 1, 2020, for the three and nine months ended September 30, 2020 (in thousands): Pro Forma Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Revenue $ 525,965 $ 1,606,186 Net loss (87,165) (858,459) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Geographic Distribution of Revenue | The following table disaggregates revenue by billing region (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended North America $ 266,516 54 % $ 298,750 57 % $ 758,999 53 % $ 871,104 57 % Europe 54,082 11 % 60,585 12 % 160,866 11 % 169,050 11 % Latin America and Caribbean 52,474 11 % 50,429 10 % 157,956 11 % 149,088 10 % Africa and Middle East 60,349 12 % 57,502 11 % 181,151 13 % 170,973 11 % Asia-Pacific 56,028 11 % 58,829 11 % 171,331 12 % 176,505 11 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 |
Disaggregation of Revenues | The following table disaggregates revenue by type of service (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended On-Network Revenues Transponder services $ 353,758 72 % $ 320,260 61 % $ 1,028,692 72 % $ 969,423 63 % Managed services 69,438 14 % 71,856 14 % 226,749 16 % 211,710 14 % Channel 280 — % 186 — % 1,096 — % 567 — % Total on-network revenues 423,476 87 % 392,302 75 % 1,256,537 88 % 1,181,700 77 % Off-Network and Other Revenues Transponder, MSS and other off-network services 54,478 11 % 40,090 8 % 141,783 10 % 122,393 8 % Satellite-related services 11,495 2 % 11,090 2 % 31,983 2 % 29,582 2 % Total off-network and other revenues 65,973 13 % 51,180 10 % 173,766 12 % 151,975 10 % In-flight Services Revenues Services — 67,482 13 % — 169,489 11 % Equipment — 15,131 3 % — 33,556 2 % Total in-flight services revenue — 82,613 16 % — 203,045 13 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 The following table disaggregates revenue by type of customer application (in thousands, except percentages): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Network services $ 169,594 35 % $ 241,737 46 % $ 495,671 35 % $ 676,740 44 % Media 203,552 42 % 181,069 34 % 611,946 43 % 550,175 36 % Government 107,981 22 % 95,008 18 % 299,840 21 % 288,764 19 % Satellite-related services 8,322 2 % 8,281 2 % 22,846 2 % 21,041 1 % Total $ 489,449 $ 526,095 $ 1,430,303 $ 1,536,720 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following table sets forth the computation of basic and diluted EPS (in thousands, except per share data or where otherwise noted): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Numerator: Net loss attributable to Intelsat S.A. $ (15,931) $ (145,690) $ (640,057) $ (472,872) Denominator: Basic weighted average shares outstanding (in millions) 142.1 142.2 141.9 142.2 Diluted weighted average shares outstanding (in millions) 142.1 142.2 141.9 142.2 Basic EPS $ (0.11) $ (1.02) $ (4.51) $ (3.33) Diluted EPS $ (0.11) $ (1.02) $ (4.51) $ (3.33) |
Retirement Plans and Other Re_2
Retirement Plans and Other Retiree Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Income) | The tables below show the components of net periodic benefit cost (income) for the three and nine months ended September 30, 2020 and 2021 (in thousands). These amounts are recognized in other income (expense), net in the condensed consolidated statements of operations. Pension Benefits Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Interest cost $ 2,962 $ 2,030 $ 8,888 $ 6,091 Expected return on plan assets (5,810) (5,592) (17,431) (16,775) Amortization of unrecognized net loss 1,600 2,046 4,799 6,136 Net periodic benefit income $ (1,248) $ (1,516) $ (3,744) $ (4,548) Other Postretirement Benefits Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Interest cost $ 266 $ 149 $ 798 $ 447 Amortization of unrecognized prior service credits (636) (636) (1,908) (1,909) Amortization of unrecognized net gain (305) (347) (915) (1,039) Net periodic benefit income $ (675) $ (834) $ (2,025) $ (2,501) |
Satellites and Other Property_2
Satellites and Other Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Satellites and Other Property and Equipment, Net | Satellites and other property and equipment, net were comprised of the following (in thousands): As of As of Satellites and launch vehicles $ 10,500,021 $ 11,090,649 Information systems and ground segment 1,062,216 1,155,922 Buildings and other 322,093 320,534 Total cost 11,884,330 12,567,105 Less: accumulated depreciation (7,126,453) (7,585,711) Total $ 4,757,877 $ 4,981,394 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amounts of Goodwill | The carrying amounts of goodwill consisted of the following (in thousands): As of As of Goodwill $ 6,858,447 $ 6,849,682 Accumulated impairment losses (4,160,200) (4,160,200) Net carrying amount $ 2,698,247 $ 2,689,482 |
Carrying Amounts of Acquired Intangible Assets Not Subject to Amortization | The carrying amounts of acquired intangible assets not subject to amortization consisted of the following (in thousands): As of As of Orbital locations $ 2,250,000 $ 2,250,000 Trade name 45,000 45,000 Total non-amortizable intangible assets $ 2,295,000 $ 2,295,000 |
Carrying Amount and Accumulated Amortization of Acquired Intangible Assets Subject to Amortization | The carrying amounts and accumulated amortization of acquired intangible assets subject to amortization consisted of the following (in thousands): As of December 31, 2020 As of September 30, 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Backlog and other $ 744,760 $ (722,697) $ 22,063 $ 744,760 $ (729,782) $ 14,978 Customer relationships 534,030 (309,486) 224,544 534,030 (324,835) 209,195 Software 45,808 (1,846) 43,962 49,122 (10,940) 38,182 Total $ 1,324,598 $ (1,034,029) $ 290,569 $ 1,327,912 $ (1,065,557) $ 262,355 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Carrying Values and Fair Values of Notes Payable and Long-Term Debt | The carrying values and fair values of our notes payable and debt were as follows (in thousands): As of December 31, 2020 As of September 30, 2021 Carrying Value Fair Value Carrying Value Fair Value Intelsat S.A.: 4.5% Convertible Senior Notes due June 2025 (1) $ 402,500 $ 130,813 $ 402,500 $ 56,350 Unamortized prepaid debt issuance costs and discount on 4.5% Convertible Senior Notes — — — — Total Intelsat S.A. obligations 402,500 130,813 402,500 56,350 Intelsat Luxembourg: 7.75% Senior Notes due June 2021 (1) 421,219 14,743 421,219 2,106 Unamortized prepaid debt issuance costs on 7.75% Senior Notes — — — — 8.125% Senior Notes due June 2023 (1) 1,000,000 130,000 1,000,000 95,000 Unamortized prepaid debt issuance costs on 8.125% Senior Notes — — — — 12.5% Senior Notes due November 2024 (1) 403,350 42,352 403,350 30,251 Unamortized prepaid debt issuance costs and discount on 12.5% Senior Notes — — — — Total Intelsat Luxembourg obligations 1,824,569 187,095 1,824,569 127,357 Intelsat Connect Finance: 9.5% Senior Notes due February 2023 (1) 1,250,000 334,375 1,250,000 312,500 Unamortized prepaid debt issuance costs and discount on 9.5% Senior Notes — — — — Total Intelsat Connect Finance obligations 1,250,000 334,375 1,250,000 312,500 Intelsat Jackson: 9.5% Senior Secured Notes due September 2022 490,000 543,900 490,000 578,813 Unamortized prepaid debt issuance costs and discount on 9.5% Senior Secured Notes (7,495) — (4,450) — 8% Senior Secured Notes due February 2024 1,349,678 1,373,297 1,349,678 1,385,107 Unamortized prepaid debt issuance costs and premium on 8% Senior Secured Notes (3,072) — (2,403) — 5.5% Senior Notes due August 2023 (1) 1,985,000 1,349,800 1,985,000 1,091,750 Unamortized prepaid debt issuance costs on 5.5% Senior Notes — — — — 9.75% Senior Notes due July 2025 (1) 1,885,000 1,347,775 1,885,000 1,050,888 Unamortized prepaid debt issuance costs on 9.75% Senior Notes — — — — 8.5% Senior Notes due October 2024 (1) 2,950,000 2,079,750 2,950,000 1,666,750 Unamortized prepaid debt issuance costs and premium on 8.5% Senior Notes — — — — Senior Secured Credit Facilities due November 2023 2,000,000 2,025,000 2,000,000 2,022,140 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (16,955) — (12,869) — Senior Secured Credit Facilities due January 2024 395,000 400,925 395,000 400,680 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (1,238) — (952) — 6.625% Senior Secured Credit Facilities due January 2024 700,000 714,000 700,000 709,918 Unamortized prepaid debt issuance costs and discount on Senior Secured Credit Facilities (2,194) — (1,689) — As of December 31, 2020 As of September 30, 2021 Carrying Value Fair Value Carrying Value Fair Value Superpriority Senior Secured DIP Credit Facilities due July 2021 1,000,000 1,011,250 — — Superpriority Senior Secured DIP Credit Facilities due July 2022 — — 1,250,000 1,257,288 Total Intelsat Jackson obligations 12,723,724 10,845,697 12,982,315 10,163,334 Eliminations: 8.125% Senior Notes of Intelsat Luxembourg due June 2023 owned by Intelsat Jackson (1) (111,663) (14,517) (111,663) (10,608) Unamortized prepaid debt issuance costs on 8.125% Senior Notes — — — — 12.5% Senior Notes of Intelsat Luxembourg due November 2024 owned by Intelsat Connect Finance, Intelsat Jackson and Intelsat Envision (1) (403,245) (42,341) (403,245) (30,243) Unamortized prepaid debt issuance costs and discount on 12.5% Senior Notes — — — — Total eliminations: (514,908) (56,858) (514,908) (40,851) Total Intelsat S.A. debt 15,685,885 11,441,122 15,944,476 10,618,690 Less: current maturities of long-term debt 5,903,724 6,068,372 6,162,315 6,353,946 Less: debt included in liabilities subject to compromise 9,782,161 5,372,750 9,782,161 4,264,744 Total Intelsat S.A. long-term debt — — — — (1) In connection with the Chapter 11 Cases, these balances have been reclassified as liabilities subject to compromise in our condensed consolidated balance sheet as of September 30, 2021. As of April 15, 2020, the Company ceased making principal and interest payments, and as of May 13, 2020 ceased accruing interest expense in relation to this long-term debt that was reclassified as liabilities subject to compromise. |
Condensed Combined Debtors' F_2
Condensed Combined Debtors' Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Debtors' Condensed Combined Balance Sheet | DEBTORS' CONDENSED COMBINED BALANCE SHEET (in thousands, except per share amounts) December 31, 2020 September 30, 2021 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 879,191 $ 418,715 Restricted cash 20,817 27,308 Receivables, net of allowances of $34,391 in 2020 and $26,127 in 2021 156,402 116,994 Receivables relating to C-band 405,171 1,035,578 Contract assets, net of allowances 15,474 14,244 Inventory 1,347 929 Prepaid expenses and other current assets 100,021 108,400 Intercompany receivables 678,188 914,875 Total current assets 2,256,611 2,637,043 Satellites and other property and equipment, net 4,656,678 4,890,864 Goodwill 2,624,452 2,624,452 Non-amortizable intangible assets 2,295,000 2,295,000 Amortizable intangible assets, net 245,649 224,173 Contract assets, net of current portion and allowances 26,642 21,600 Investment in affiliates 150,029 (12,342) Other assets 357,897 489,954 Total assets $ 12,612,958 $ 13,170,744 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued liabilities $ 222,876 $ 364,253 Taxes payable 6,743 6,925 Employee-related liabilities 36,563 33,974 Accrued interest payable 17,747 19,094 Current maturities of long-term debt 5,903,724 6,162,315 Contract liabilities 146,762 845,055 Deferred satellite performance incentives 47,377 54,512 Other current liabilities 43,885 75,683 Total current liabilities 6,425,677 7,561,811 Contract liabilities, net of current portion 1,422,893 1,270,745 Deferred satellite performance incentives, net of current portion 138,116 121,439 Deferred income taxes 61,069 74,701 Accrued retirement benefits, net of current portion 129,837 113,452 Other long-term liabilities 188,394 246,867 Liabilities subject to compromise 10,168,518 10,169,243 Shareholders’ deficit: Common shares, nominal value $0.01 per share 1,421 1,422 Paid-in capital 2,573,840 2,577,607 Accumulated deficit (8,416,410) (8,889,282) Accumulated other comprehensive loss (80,397) (77,261) Total shareholders’ deficit (5,921,546) (6,387,514) Total liabilities and shareholders’ deficit $ 12,612,958 $ 13,170,744 |
Debtors' Unaudited Condensed Combined Statements of Operations | DEBTORS' UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Revenue $ 473,556 $ 404,727 $ 1,314,307 $ 1,215,558 Operating expenses: Direct costs of revenue (excluding depreciation and amortization) 68,891 66,106 199,958 195,254 Selling, general and administrative 57,659 56,964 181,931 175,722 Cost from affiliates 9,785 11,766 32,047 35,575 Depreciation and amortization 157,442 150,683 472,610 459,743 Impairment of non-amortizable intangible and other assets — — 46,243 — Other operating expense—C-band 298 17,867 580 140,861 Total operating expenses 294,075 303,386 933,369 1,007,155 Income from operations 179,481 101,341 380,938 208,403 Interest expense, net (137,444) (119,049) (677,124) (367,477) Equity in loss of affiliates (40,791) (34,280) (41,260) (128,793) Other income, net 2,973 11,594 15,007 39,224 Reorganization items (36,367) (98,316) (335,059) (203,719) Loss before income taxes (32,148) (138,710) (657,498) (452,362) Income tax benefit (expense) 16,217 (6,980) 17,441 (20,510) Net loss $ (15,931) $ (145,690) $ (640,057) $ (472,872) |
Debtors' Unaudited Condensed Combined Statement of Cash Flows | DEBTORS' UNAUDITED CONDENSED COMBINED STATEMENT OF CASH FLOWS (in thousands) Nine Months Ended Nine Months Ended Cash flows from operating activities: Net loss $ (640,057) $ (472,872) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 472,610 459,743 Provision for expected credit losses 34,465 17,224 Foreign currency transaction (gains) losses (801) 863 Loss on disposal of assets — 43 Impairment of non-amortizable intangible and other assets 46,243 — Share-based compensation 9,031 3,586 Deferred income taxes 5,470 11,102 Amortization of discount, premium, issuance costs and related costs 19,689 7,559 Non-cash reorganization items 196,974 — Debtor-in-possession financing fees 52,182 46,944 Amortization of actuarial loss and prior service credits for retirement benefits 1,976 3,189 Unrealized losses on derivative financial instruments 372 — Unrealized losses (gains) on investments and loans held-for-investment 721 (46,661) Equity in (income) losses of affiliates 41,260 128,793 Other non-cash items (7) (517) Changes in operating assets and liabilities: Receivables 12,841 21,697 Intercompany receivables (105,048) (155,277) Prepaid expenses, contract and other assets (81,814) 6,124 Accounts payable and accrued liabilities 69,812 116,437 Accrued interest payable 48,713 1,347 Contract liabilities (66,304) (84,422) Accrued retirement benefits (12,253) (16,385) Other long-term liabilities 2,801 (20,132) Net cash provided by (used in) operating activities 108,876 28,385 Cash flows from investing activities: Capital expenditures (including capitalized interest) (414,610) (661,091) Acquisition of loan to affiliate — (60,000) Dividends from affiliates 28,960 34,276 Proceeds from sale of investment — 15,000 Loan amendment fees received — 1,800 Proceeds from principal payments on loans held-for-investment 973 208 Capital contribution to affiliates (9,005) — Other proceeds from satellites 5,625 — Net cash used in investing activities (388,057) (669,807) Cash flows from financing activities: Proceeds from debtor-in-possession financing 500,000 1,250,000 Repayments of debtor-in-possession financing — (1,000,000) Debtor-in-possession financing fees (52,182) (46,944) Principal payments on deferred satellite performance incentives (25,428) (14,859) Net cash provided by (used in) financing activities 422,390 188,197 Effect of exchange rate changes on cash, cash equivalents and restricted cash 754 (760) Net change in cash, cash equivalents and restricted cash 143,963 (453,985) Cash, cash equivalents, and restricted cash, beginning of period 755,313 900,008 Cash, cash equivalents, and restricted cash, end of period $ 899,276 $ 446,023 Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated Debtors' balance sheet to the total sum of these same amounts shown on the condensed consolidated Debtors' statement of cash flows: Cash and cash equivalents $ 880,185 $ 418,715 Restricted cash 19,091 27,308 Total cash, cash equivalents and restricted cash reported in the condensed consolidated Debtors' statement of cash flows $ 899,276 $ 446,023 |
General - Additional Informatio
General - Additional Information (Details) - USD ($) $ in Millions | Dec. 05, 2023 | Dec. 05, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Receivables expected for reimbursable costs associated the FCC final order | $ 1,000 | $ 405.2 | ||
Forecast | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Proceeds eligible to receive for clearing a portion c-band spectrum | $ 3,700 | $ 1,200 |
General - Cash and Cash Equival
General - Cash and Cash Equivalents and Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 636,510 | $ 1,060,917 | ||
Restricted cash | 27,675 | 21,130 | ||
Restricted cash included in other assets | 0 | 5,500 | ||
Cash, cash equivalents and restricted cash | $ 664,185 | $ 1,087,547 | $ 1,020,350 | $ 830,864 |
General - Allowance for Credit
General - Allowance for Credit Losses Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable | ||||
Balance at beginning of period | $ 29,202 | $ 27,578 | $ 40,785 | $ 40,028 |
Cumulative-effect adjustment of ASU 2016-13 adoption | 0 | 0 | ||
Charged to costs and expenses | 6,484 | 6,743 | 21,889 | 35,563 |
Deductions | (2,737) | (4,483) | (29,725) | (45,753) |
Balance at end of period | 32,949 | 29,838 | 32,949 | 29,838 |
Contract Assets | ||||
Balance at beginning of period | 4,346 | 1,638 | 3,889 | 0 |
Cumulative-effect adjustment of ASU 2016-13 adoption | 0 | 916 | ||
Charged to costs and expenses | (617) | 75 | (160) | 797 |
Deductions | 0 | 0 | 0 | 0 |
Balance at end of period | $ 3,729 | $ 1,713 | $ 3,729 | $ 1,713 |
Chapter 11 Proceedings, Abili_3
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 14, 2021 | Dec. 31, 2020 | Jun. 17, 2020 | May 20, 2020 | |
Reorganization, Chapter 11 [Line Items] | ||||||||
Interest payments due which were not paid | $ 192,300 | $ 196,400 | $ 576,800 | $ 298,900 | ||||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Cash and cash equivalents | $ 636,510 | $ 636,510 | $ 1,060,917 | |||||
Accumulated deficit | 8,889,282 | 8,889,282 | $ 8,416,410 | |||||
Income from operations | 72,239 | 137,394 | 95,045 | 349,468 | ||||
Net loss | $ 145,086 | $ 15,331 | $ 471,093 | $ 638,273 | ||||
Revolving Credit Facility | Superpriority Senior Secured DIP Credit Facilities due July 2021 | Line of Credit | Intelsat Jackson | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Debtor in possession financing, aggregate principal amount | $ 1,000,000 | |||||||
Revolving Credit Facility | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Intelsat Jackson | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Debtor in possession financing, aggregate principal amount | $ 1,500,000 | |||||||
Debtor in possession financing, aggregate principal amount available at closing | 1,250,000 | |||||||
Debtor in possession financing, unused borrowings | $ 250,000 |
Chapter 11 Proceedings, Abili_4
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters - Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Reorganizations [Abstract] | ||
Accounts payable | $ 10,671 | $ 9,545 |
Debt subject to comprise | 9,782,161 | 9,782,161 |
Accrued interest on debt subject to compromise | 341,676 | 341,676 |
Other long-term liabilities subject to compromise | 34,735 | 35,136 |
Total liabilities subject to compromise | $ 10,169,243 | $ 10,168,518 |
Chapter 11 Proceedings, Abili_5
Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters - Reorganization Items, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reorganizations [Abstract] | ||||
Adjustment of debt discount, premium and issuance costs | $ 0 | $ 0 | $ 0 | $ 196,974 |
Debtor-in-possession financing fees | 46,944 | 0 | 46,944 | 52,182 |
Professional fees | 50,825 | 36,262 | 156,199 | 85,233 |
Other reorganization costs | 547 | 105 | 576 | 670 |
Total reorganization items | $ 98,316 | $ 36,367 | $ 203,719 | $ 335,059 |
Acquisition of Gogo's Commerc_3
Acquisition of Gogo's Commercial Aviation Business - Additional Information (Details) - Gogo CA - USD ($) $ in Thousands | Dec. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||||||
Payments to acquire business | $ 400,000 | |||||
Goodwill, expected tax deductible amount | $ 42,300 | |||||
Allocation of purchase consideration, measurement period adjustments, decrease in goodwill | $ 8,800 | $ 8,765 | ||||
Allocation of purchase consideration, measurement period adjustments, inventory | 5,619 | |||||
Allocation of purchase consideration, measurement period adjustments, property and equipment | $ 5,063 | |||||
Acquisition related costs | $ 500 | $ 6,200 | $ 5,500 | $ 6,300 |
Acquisition of Gogo's Commerc_4
Acquisition of Gogo's Commercial Aviation Business - Allocation of Purchase Consideration and Measurement Period Adjustments (Details) - USD ($) $ in Thousands | 9 Months Ended | 10 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | |
Amortizable intangible assets | |||||
Goodwill | $ 2,689,482 | $ 2,689,482 | $ 2,698,247 | ||
Current liabilities | |||||
Measurement Period Adjustments, Total purchase consideration | (7,843) | $ 0 | |||
Gogo CA | |||||
Assets acquired | |||||
Cash and cash equivalents | 9,867 | 9,867 | $ 9,867 | ||
Measurement Period Adjustments, Cash and equivalents | 0 | ||||
Receivables, net of allowances | 52,987 | 52,987 | 52,849 | ||
Measurement Period Adjustments, Receivables, net of allowances | 138 | ||||
Inventory | 138,395 | 138,395 | 144,014 | ||
Measurement Period Adjustments, Inventory | (5,619) | ||||
Prepaid expenses and other current assets | 36,140 | 36,140 | 36,140 | ||
Measurement Period Adjustments, Prepaid expenses and other current assets assets | 0 | ||||
Property and equipment | 46,391 | 46,391 | 41,328 | ||
Allocation of purchase consideration, measurement period adjustments, property and equipment | 5,063 | ||||
Amortizable intangible assets | |||||
Goodwill | 68,855 | 68,855 | 77,620 | ||
Measurement Period Adjustments, Goodwill | (8,800) | (8,765) | |||
Other assets | |||||
Supplemental type certificates | 24,301 | 24,301 | 24,253 | ||
Measurement Period Adjustments, Supplemental type certificates | 48 | ||||
Line fit certificates | 21,776 | 21,776 | 21,776 | ||
Measurement Period Adjustments, Line fit certificates | 0 | ||||
Other assets | 100,566 | 100,566 | 100,566 | ||
Measurement Period Adjustments, Other assets | 0 | ||||
Total assets acquired | 545,742 | 545,742 | 554,877 | ||
Measurement Period Adjustments, Total assets acquired | (9,135) | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | (62,521) | (62,521) | (63,300) | ||
Measurement Period Adjustments, Accounts payable and accrued liabilities | 779 | ||||
Contract liabilities | (13,014) | (13,014) | (13,527) | ||
Measurement Period Adjustments, Contract liabilities | 513 | ||||
Other current liabilities | (25,472) | (25,472) | (25,472) | ||
Measurement Period Adjustments, Other current liabilities | 0 | ||||
Noncurrent liabilities | (43,522) | (43,522) | (43,522) | ||
Measurement Period Adjustments, Noncurrent liabilities | 0 | ||||
Total liabilities assumed | (144,529) | (144,529) | (145,821) | ||
Measurement Period Adjustments, Total liabilities assumed | 1,292 | ||||
Total purchase consideration | 401,213 | 401,213 | 409,056 | ||
Measurement Period Adjustments, Total purchase consideration | (7,843) | ||||
Gogo CA | Software | |||||
Amortizable intangible assets | |||||
Amortizable intangible assets | 45,464 | 45,464 | 45,464 | ||
Measurement Period Adjustments, Amortizable intangible assets | 0 | ||||
Gogo CA | Trade name | |||||
Amortizable intangible assets | |||||
Amortizable intangible assets | $ 1,000 | 1,000 | $ 1,000 | ||
Measurement Period Adjustments, Amortizable intangible assets | $ 0 |
Acquisition of Gogo's Commerc_5
Acquisition of Gogo's Commercial Aviation Business - Pro Forma Information (Details) - Gogo CA - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma revenue | $ 525,965 | $ 1,606,186 |
Pro forma net loss | $ (87,165) | $ (858,459) |
Share Capital (Details)
Share Capital (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | May 20, 2020 |
Equity [Abstract] | |||
Authorized share capital | $ 10 | ||
Common shares, authorized (in shares) | 1,000 | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common shares, issued (in shares) | 142.2 | ||
Common shares, outstanding (in shares) | 142.2 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue, Major Customer [Line Items] | |||||
Contract liabilities, noncurrent, related to reimbursable costs associated with FCC final order | $ 333.6 | $ 333.6 | $ 405.2 | ||
Contract liabilities, related to reimbursable costs associated with FCC final order | 1,000 | 1,000 | |||
Contract liabilities, current, related to reimbursable costs associated with FCC final order | 702 | 702 | |||
Revenue recognized, previously included in contract liability balance | 51.5 | $ 47.8 | 191.8 | $ 185.5 | |
Capitalized contract cost | 3.2 | 1.5 | 9.5 | 3.9 | |
Capitalized contract cost, amortization | 1.2 | $ 1.1 | 3.6 | $ 3.9 | |
Capitalized contract cost, net | 16.3 | 16.3 | $ 10.4 | ||
Remaining performance obligation | $ 5,600 | $ 5,600 | |||
Weighted average remaining customer contract life | 3 years 10 months 24 days | ||||
Percentage of remaining performance obligation of consolidated interests included | 100.00% | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue, remaining performance obligation, percentage | 30.00% | 30.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue, remaining performance obligation, percentage | 29.00% | 29.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue, remaining performance obligation, percentage | 41.00% | 41.00% | |||
Largest Customer | Customer Concentration Risk | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 10.00% | 14.00% | 11.00% | 14.00% | |
Ten Largest Customers | Customer Concentration Risk | Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 35.00% | 43.00% | 36.00% | 41.00% |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) | Sep. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 30.00% |
Revenue, remaining performance obligation, period | 1 year 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 29.00% |
Revenue, remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 41.00% |
Revenue, remaining performance obligation, period |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenues by Billing Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 526,095 | $ 489,449 | $ 1,536,720 | $ 1,430,303 |
North America | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 298,750 | $ 266,516 | $ 871,104 | $ 758,999 |
North America | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 57.00% | 54.00% | 57.00% | 53.00% |
Europe | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 60,585 | $ 54,082 | $ 169,050 | $ 160,866 |
Europe | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12.00% | 11.00% | 11.00% | 11.00% |
Latin America and Caribbean | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 50,429 | $ 52,474 | $ 149,088 | $ 157,956 |
Latin America and Caribbean | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 11.00% | 10.00% | 11.00% |
Africa and Middle East | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 57,502 | $ 60,349 | $ 170,973 | $ 181,151 |
Africa and Middle East | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 12.00% | 11.00% | 13.00% |
Asia-Pacific | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 58,829 | $ 56,028 | $ 176,505 | $ 171,331 |
Asia-Pacific | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 11.00% | 11.00% | 12.00% |
Revenue - Disaggregation of R_2
Revenue - Disaggregation of Revenues by Type of Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 526,095 | $ 489,449 | $ 1,536,720 | $ 1,430,303 |
On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 392,302 | 423,476 | 1,181,700 | 1,256,537 |
Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 51,180 | 65,973 | 151,975 | 173,766 |
In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 82,613 | 0 | 203,045 | 0 |
Transponder, MSS and other off-network services | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 320,260 | 353,758 | 969,423 | 1,028,692 |
Transponder, MSS and other off-network services | Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 40,090 | 54,478 | 122,393 | 141,783 |
Managed services | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 71,856 | 69,438 | 211,710 | 226,749 |
Channel | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 186 | 280 | 567 | 1,096 |
Satellite-related services | Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11,090 | 11,495 | 29,582 | 31,983 |
Services | In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 67,482 | 0 | 169,489 | 0 |
Equipment | In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 15,131 | $ 0 | $ 33,556 | $ 0 |
Service Concentration Risk | Revenues | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 75.00% | 87.00% | 77.00% | 88.00% |
Service Concentration Risk | Revenues | Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 10.00% | 13.00% | 10.00% | 12.00% |
Service Concentration Risk | Revenues | In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 16.00% | 13.00% | ||
Service Concentration Risk | Revenues | Transponder, MSS and other off-network services | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 61.00% | 72.00% | 63.00% | 72.00% |
Service Concentration Risk | Revenues | Transponder, MSS and other off-network services | Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 8.00% | 11.00% | 8.00% | 10.00% |
Service Concentration Risk | Revenues | Managed services | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 14.00% | 14.00% | 14.00% | 16.00% |
Service Concentration Risk | Revenues | Channel | On-Network Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Service Concentration Risk | Revenues | Satellite-related services | Off-Network and Other Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Service Concentration Risk | Revenues | Services | In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 13.00% | 11.00% | ||
Service Concentration Risk | Revenues | Equipment | In-flight Services Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 3.00% | 2.00% |
Revenue - Disaggregation of R_3
Revenue - Disaggregation of Revenues by Type of Customer Application (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 526,095 | $ 489,449 | $ 1,536,720 | $ 1,430,303 |
Network services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 241,737 | $ 169,594 | $ 676,740 | $ 495,671 |
Network services | Revenues | Service Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 46.00% | 35.00% | 44.00% | 35.00% |
Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 181,069 | $ 203,552 | $ 550,175 | $ 611,946 |
Media | Revenues | Service Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 34.00% | 42.00% | 36.00% | 43.00% |
Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 95,008 | $ 107,981 | $ 288,764 | $ 299,840 |
Government | Revenues | Service Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 18.00% | 22.00% | 19.00% | 21.00% |
Satellite-related services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 8,281 | $ 8,322 | $ 21,041 | $ 22,846 |
Satellite-related services | Revenues | Service Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2.00% | 2.00% | 1.00% | 2.00% |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted average number of shares that could potentially dilute basic EPS in the future | 22,800,000 | 22,300,000 | 22,600,000 | 22,300,000 |
4.5% Convertible Senior Notes due June 2025 | Intelsat S.A. | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest rate | 4.50% | 4.50% |
Net Loss per Share - Computatio
Net Loss per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net loss attributable to Intelsat S.A., basic | $ (145,690) | $ (15,931) | $ (472,872) | $ (640,057) |
Net loss attributable to Intelsat S.A., diluted | $ (145,690) | $ (15,931) | $ (472,872) | $ (640,057) |
Denominator: | ||||
Basic weighted average shares outstanding (in millions) (in shares) | 142.2 | 142.1 | 142.2 | 141.9 |
Diluted weighted average shares outstanding (in millions) (in shares) | 142.2 | 142.1 | 142.2 | 141.9 |
Basic EPS (in dollars per share) | $ (1,020) | $ (0.11) | $ (3,330) | $ (4.51) |
Diluted EPS (in dollars per share) | $ (1,020) | $ (0.11) | $ (3,330) | $ (4.51) |
Retirement Plans and Other Re_3
Retirement Plans and Other Retiree Benefits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Amount included in accumulated other comprehensive loss, before tax, that has not yet been recognized in net periodic benefit cost | $ 110.7 | $ 110.7 | ||
Amount included in accumulated other comprehensive loss, net of tax, that has not yet been recognized in net periodic benefit cost | 79.1 | 79.1 | ||
Recognized compensation expense | $ 3.3 | $ 2.2 | $ 10.1 | $ 6.7 |
Retirement Plans and Other Re_4
Retirement Plans and Other Retiree Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 2,030 | $ 2,962 | $ 6,091 | $ 8,888 |
Expected return on plan assets | (5,592) | (5,810) | (16,775) | (17,431) |
Amortization of unrecognized net (gain) loss | 2,046 | 1,600 | 6,136 | 4,799 |
Net periodic benefit income | (1,516) | (1,248) | (4,548) | (3,744) |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 149 | 266 | 447 | 798 |
Amortization of unrecognized prior service credits | (636) | (636) | (1,909) | (1,908) |
Amortization of unrecognized net (gain) loss | (347) | (305) | (1,039) | (915) |
Net periodic benefit income | $ (834) | $ (675) | $ (2,501) | $ (2,025) |
Satellites and Other Property_3
Satellites and Other Property and Equipment - Satellites and Other Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Satellites and other property and equipment, cost | $ 12,567,105 | $ 11,884,330 |
Less: accumulated depreciation | (7,585,711) | (7,126,453) |
Total | 4,981,394 | 4,757,877 |
Satellites and launch vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Satellites and other property and equipment, cost | 11,090,649 | 10,500,021 |
Information systems and ground segment | ||
Property, Plant and Equipment [Line Items] | ||
Satellites and other property and equipment, cost | 1,155,922 | 1,062,216 |
Buildings and other | ||
Property, Plant and Equipment [Line Items] | ||
Satellites and other property and equipment, cost | $ 320,534 | $ 322,093 |
Satellites and Other Property_4
Satellites and Other Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Construction-in-progress | $ 1,200 | $ 1,200 | $ 768.6 | ||
Costs and expenses incurred related to c-band clearing | 1,100 | 1,100 | |||
Capitalized costs and expenses related to c-band | 972.2 | 972.2 | |||
Costs expected to be reimbursed related to c-band | 904.8 | 904.8 | |||
Capitalized interest | 23.4 | $ 10.5 | 58.6 | $ 20.7 | |
Depreciation expense | 151.3 | $ 154.4 | 462.8 | $ 463.3 | |
Property, Plant and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized costs and expenses related to c-band | 887.6 | 887.6 | |||
Other Current Assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized costs and expenses related to c-band | $ 84.6 | $ 84.6 |
Investments (Details)
Investments (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)investmentcompanyentity | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Investments [Line Items] | ||||||
Number of entities meeting variable interest entity classification | entity | 2 | |||||
Total assets | $ 13,253,070,000 | $ 13,253,070,000 | $ 12,797,681,000 | |||
Percentage of revenue remitted to joint venture partner | 50.00% | |||||
Number of privately held companies in which noncontrolling equity investments are held | company | 4 | |||||
Proceeds from sale of investment | $ 15,000,000 | $ 15,000,000 | $ 0 | |||
Realized gain on investment | $ 5,300,000 | |||||
Carrying value of equity securities without readily determinable fair values | 45,900,000 | 45,900,000 | 31,900,000 | |||
Stock warrants, cumulative fair value | 8,800,000 | 8,800,000 | 3,200,000 | |||
Gain related to an amendment fee for a loan receivable | 1,800,000 | $ 0 | 1,800,000 | 0 | ||
Equity securities, fair value | 16,000,000 | $ 16,000,000 | ||||
Number of privately held companies which loan receivables are carried from | company | 3 | |||||
Loan receivables, total amortized costs basis | 74,000,000 | $ 74,000,000 | 71,200,000 | |||
Accrued interest on loan receivables | 3,100,000 | 3,100,000 | 1,900,000 | |||
Interest income on loan receivables | 1,100,000 | 1,000,000 | 3,100,000 | 2,900,000 | ||
Impairment losses on loan receivables | 0 | 600,000 | 0 | 600,000 | ||
Loan receivables, fair value | 77,400,000 | 77,400,000 | 72,900,000 | |||
Equity Securities Without Readily Determinable Fair Value | ||||||
Schedule of Investments [Line Items] | ||||||
Increase in fair value | 7,300,000 | 0 | 15,000,000 | 0 | ||
Stock Warrants | ||||||
Schedule of Investments [Line Items] | ||||||
Increase in fair value | 5,500,000 | |||||
Realized gain on investment | 7,300,000 | 0 | $ 7,300,000 | 0 | ||
Horizons Satellite Holdings | ||||||
Schedule of Investments [Line Items] | ||||||
Number of investments | investment | 2 | |||||
Total assets | 9,100,000 | $ 9,100,000 | 14,200,000 | |||
Revenue share, net of applicable fees and commissions | 2,800,000 | $ 2,800,000 | 1,800,000 | |||
Equity Method Investee | Horizons 3 Satellite LLC | ||||||
Schedule of Investments [Line Items] | ||||||
Percentage of revenue remitted to joint venture partner | 50.00% | |||||
Revenue share, net of applicable fees and commissions | 8,800,000 | $ 8,800,000 | 5,000,000 | |||
Ownership percentage | 50.00% | |||||
Investment balance | 103,700,000 | $ 103,700,000 | 103,800,000 | |||
Amount investment balance exceeded equity in net assets | $ 10,300,000 | $ 10,300,000 | 10,900,000 | |||
Percentage of capital contribution | 50.00% | |||||
Equity method investment, ownership interest percentage | 50.00% | 50.00% | ||||
Payments for advance to affiliate | $ 0 | 2,700,000 | ||||
Distributions received | 0 | 9,000,000 | ||||
Expenses from transaction with related party | $ 4,500,000 | 4,900,000 | 13,400,000 | 14,900,000 | ||
Revenue from transaction with related party | 1,700,000 | $ 1,700,000 | 5,200,000 | $ 5,200,000 | ||
Receivables from related party | 900,000 | 900,000 | 0 | |||
Accounts payable and accrued liabilities due to related party | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 10 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 2,689,482 | $ 2,689,482 | $ 2,689,482 | $ 2,698,247 | ||||
Amortization expense | 10,300 | $ 7,800 | 31,500 | $ 23,300 | ||||
Gogo CA | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 68,855 | 68,855 | 68,855 | $ 77,620 | ||||
Allocation of purchase consideration, measurement period adjustments, decrease in goodwill | $ 8,800 | $ 8,765 | ||||||
Trade name | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Impairment of non-amortizable intangible and other assets | $ 12,200 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 6,849,682 | $ 6,858,447 |
Accumulated impairment losses | (4,160,200) | (4,160,200) |
Net carrying amount | $ 2,689,482 | $ 2,698,247 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amounts of Acquired Intangible Assets Not Subject to Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | $ 2,295,000 | $ 2,295,000 |
Orbital locations | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | 2,250,000 | 2,250,000 |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | $ 45,000 | $ 45,000 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,327,912 | $ 1,324,598 |
Accumulated Amortization | (1,065,557) | (1,034,029) |
Net Carrying Amount | 262,355 | 290,569 |
Backlog and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 744,760 | 744,760 |
Accumulated Amortization | (729,782) | (722,697) |
Net Carrying Amount | 14,978 | 22,063 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 534,030 | 534,030 |
Accumulated Amortization | (324,835) | (309,486) |
Net Carrying Amount | 209,195 | 224,544 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 49,122 | 45,808 |
Accumulated Amortization | (10,940) | (1,846) |
Net Carrying Amount | $ 38,182 | $ 43,962 |
Debt - Carrying Values and Fair
Debt - Carrying Values and Fair Values of Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Carrying Value | $ 15,944,476 | $ 15,685,885 |
Fair Value | 10,618,690 | 11,441,122 |
Less: current maturities of long-term debt, carrying value | 6,162,315 | 5,903,724 |
Less: current maturities of long-term debt, fair value | 6,353,946 | 6,068,372 |
Less: liabilities subject to compromise, carrying value | 9,782,161 | 9,782,161 |
Less: liabilities subject to compromise, fair value | 4,264,744 | 5,372,750 |
Total Intelsat S.A. long-term debt, carrying value | 0 | 0 |
Total Intelsat S.A. long-term debt, carrying value, fair value | 0 | 0 |
Intelsat Jackson | ||
Debt Instrument [Line Items] | ||
Carrying Value | 12,982,315 | 12,723,724 |
Fair Value | 10,163,334 | 10,845,697 |
Convertible Debt | Intelsat S.A. | ||
Debt Instrument [Line Items] | ||
Carrying Value | 402,500 | 402,500 |
Fair Value | $ 56,350 | 130,813 |
Convertible Debt | Intelsat S.A. | 4.5% Convertible Senior Notes due June 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 4.50% | |
Carrying value, gross | $ 402,500 | 402,500 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | 0 | 0 |
Fair Value | 56,350 | 130,813 |
Senior Notes | Intelsat Luxembourg | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,824,569 | 1,824,569 |
Fair Value | $ 127,357 | 187,095 |
Senior Notes | Intelsat Luxembourg | 7.75% Senior Notes due June 2021 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 7.75% | |
Carrying value, gross | $ 421,219 | 421,219 |
Carrying value, unamortized prepaid debt issuance costs | 0 | 0 |
Fair Value | $ 2,106 | 14,743 |
Senior Notes | Intelsat Luxembourg | 8.125% Senior Notes due June 2023 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 8.125% | |
Carrying value, gross | $ 1,000,000 | 1,000,000 |
Carrying value, unamortized prepaid debt issuance costs | 0 | 0 |
Fair Value | $ 95,000 | 130,000 |
Senior Notes | Intelsat Luxembourg | 12.5% Senior Notes due November 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 12.50% | |
Carrying value, gross | $ 403,350 | 403,350 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | 0 | 0 |
Fair Value | 30,251 | 42,352 |
Senior Notes | Intelsat Connect Finance | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,250,000 | 1,250,000 |
Fair Value | 312,500 | 334,375 |
Senior Notes | Intelsat Connect Finance | Eliminations | ||
Debt Instrument [Line Items] | ||
Carrying Value | (514,908) | (514,908) |
Fair Value | $ (40,851) | (56,858) |
Senior Notes | Intelsat Connect Finance | 9.5% Senior Notes due February 2023 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 9.50% | |
Carrying value, gross | $ 1,250,000 | 1,250,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | 0 | 0 |
Fair Value | $ 312,500 | 334,375 |
Senior Notes | Intelsat Jackson | 9.5% Senior Secured Notes due September 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 9.50% | |
Carrying value, gross | $ 490,000 | 490,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | (4,450) | (7,495) |
Fair Value | $ 578,813 | 543,900 |
Senior Notes | Intelsat Jackson | 8% Senior Secured Notes due February 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 8.00% | |
Carrying value, gross | $ 1,349,678 | 1,349,678 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | (2,403) | (3,072) |
Fair Value | $ 1,385,107 | 1,373,297 |
Senior Notes | Intelsat Jackson | 5.5% Senior Notes due August 2023 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 5.50% | |
Carrying value, gross | $ 1,985,000 | 1,985,000 |
Carrying value, unamortized prepaid debt issuance costs | 0 | 0 |
Fair Value | $ 1,091,750 | 1,349,800 |
Senior Notes | Intelsat Jackson | 9.75% Senior Notes due July 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 9.75% | |
Carrying value, gross | $ 1,885,000 | 1,885,000 |
Carrying value, unamortized prepaid debt issuance costs | 0 | 0 |
Fair Value | $ 1,050,888 | 1,347,775 |
Senior Notes | Intelsat Jackson | 8.5% Senior Notes due October 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 8.50% | |
Carrying value, gross | $ 2,950,000 | 2,950,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | 0 | 0 |
Fair Value | $ 1,666,750 | 2,079,750 |
Senior Notes | Intelsat Jackson | 8.125% Senior Notes of Intelsat Luxembourg due June 2023 owned by Intelsat Jackson | Eliminations | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 8.125% | |
Carrying value, gross | $ (111,663) | (111,663) |
Carrying value, unamortized prepaid debt issuance costs | 0 | 0 |
Fair Value | $ (10,608) | (14,517) |
Senior Notes | Intelsat Connect Finance, Intel Jackson and Intelsat Envision | 12.5% Senior Notes due November 2024 | Eliminations | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 12.50% | |
Carrying value, gross | $ (403,245) | (403,245) |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | 0 | 0 |
Fair Value | (30,243) | (42,341) |
Secured Debt | Line of Credit | Intelsat Jackson | Senior Secured Credit Facilities due November 2023 | ||
Debt Instrument [Line Items] | ||
Carrying value, gross | 2,000,000 | 2,000,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | (12,869) | (16,955) |
Fair Value | 2,022,140 | 2,025,000 |
Secured Debt | Line of Credit | Intelsat Jackson | Senior Secured Credit Facilities due January 2024 | ||
Debt Instrument [Line Items] | ||
Carrying value, gross | 395,000 | 395,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | (952) | (1,238) |
Fair Value | $ 400,680 | 400,925 |
Secured Debt | Line of Credit | Intelsat Jackson | 6.625% Senior Secured Credit Facilities due January 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 6.625% | |
Carrying value, gross | $ 700,000 | 700,000 |
Carrying value, unamortized prepaid debt issuance costs, discount and premium | (1,689) | (2,194) |
Fair Value | 709,918 | 714,000 |
Revolving Credit Facility | Line of Credit | Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2021 | ||
Debt Instrument [Line Items] | ||
Carrying value, gross | 0 | 1,000,000 |
Fair Value | 0 | 1,011,250 |
Revolving Credit Facility | Line of Credit | Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | ||
Debt Instrument [Line Items] | ||
Carrying value, gross | 1,250,000 | 0 |
Fair Value | $ 1,257,288 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Sep. 14, 2021 | Jun. 17, 2020 | Sep. 30, 2021 |
Intelsat Luxembourg | 8.125% Senior Notes due June 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 8.125% | ||
Intelsat Luxembourg | 12.5% Senior Notes due November 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 12.50% | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2021 | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debtor in possession financing, aggregate principal amount | $ 1,000 | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debtor in possession financing, aggregate principal amount | $ 1,500 | ||
Debtor in possession financing, aggregate principal amount available at closing | 1,250 | ||
Debtor in possession financing, unused borrowings | $ 250 | ||
Ticking fee | 3.60% | ||
Interest rate in event of debt default | 2.00% | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Revolving Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR), One Month Interest Period | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Intelsat Jackson | Superpriority Senior Secured DIP Credit Facilities due July 2022 | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.75% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax refund expected from taxing authority related to CARES Act | $ 11.4 | $ 26.9 | ||
Deferred payroll tax liability related to CARES Act | $ 6.8 | |||
Gross unrecognized tax benefits | 55.7 | $ 51.4 | ||
Unrecognized tax benefits that would impact effective tax rate | 51.7 | 47.6 | ||
Reserves for interest and penalties | 1.1 | 0.8 | ||
Increase to unrecognized tax benefits related to current year tax positions | 5.6 | |||
Decrease to unrecognized tax benefits related to the expiration of statute of limitations for assessment certain taxes | (1.5) | |||
Increase to unrecognized tax benefits related to prior tax positions | 0.2 | |||
BEAT tax impact | $ 5.4 | $ 8.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Billions | Jul. 14, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Possible loss contingency | $ 1.8 |
Third party claim to payments | 50.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Horizons Satellite Holdings | |
Related Party Transaction [Line Items] | |
Ownership percentage | 50.00% |
Horizons 3 Satellite LLC | |
Related Party Transaction [Line Items] | |
Ownership percentage | 50.00% |
Condensed Combined Debtors' F_3
Condensed Combined Debtors' Financial Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reorganization, Chapter 11 [Line Items] | ||||
Revenue | $ (526,095) | $ (489,449) | $ (1,536,720) | $ (1,430,303) |
Parent Company and Subsidiaries in Debtor-In-Possession Financing | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Revenue | (404,727) | (473,556) | (1,215,558) | (1,314,307) |
Parent Company and Subsidiaries in Debtor-In-Possession Financing | Intersegment Eliminations | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Revenue | $ 69,700 | $ 106,000 | $ 208,100 | $ 228,600 |
Condensed Combined Debtors' F_4
Condensed Combined Debtors' Financial Information - Debtors' Condensed Combined Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 636,510 | $ 1,060,917 | |
Restricted cash | 27,675 | 21,130 | |
Receivables, net of allowances of $34,391 in 2020 and $26,127 in 2021 | 217,235 | 254,273 | |
Receivables relating to C-band | 1,035,578 | 405,171 | |
Contract assets, net of allowances | 42,447 | 39,774 | |
Inventory | 125,288 | 147,094 | |
Prepaid expenses and other current assets | 140,330 | 136,611 | |
Total current assets | 2,225,063 | 2,064,970 | |
Satellites and other property and equipment, net | 4,981,394 | 4,757,877 | |
Goodwill | 2,689,482 | 2,698,247 | |
Non-amortizable intangible assets | 2,295,000 | 2,295,000 | |
Amortizable intangible assets, net | 262,355 | 290,569 | |
Contract assets, net of current portion and allowances | 71,914 | 86,017 | |
Other assets | 727,862 | 605,001 | |
Total assets | 13,253,070 | 12,797,681 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 279,122 | 252,998 | |
Taxes payable | 6,486 | 7,493 | |
Employee-related liabilities | 43,382 | 43,404 | |
Accrued interest payable | 19,094 | 17,747 | |
Current maturities of long-term debt | 6,162,315 | 5,903,724 | |
Contract liabilities | 858,941 | 157,320 | |
Deferred satellite performance incentives | 54,512 | 47,377 | |
Other current liabilities | 105,416 | 73,479 | |
Total current liabilities | 7,529,268 | 6,503,542 | |
Contract liabilities, net of current portion | 1,309,270 | 1,447,891 | |
Deferred satellite performance incentives, net of current portion | 121,439 | 138,116 | |
Deferred income taxes | 77,485 | 61,345 | |
Accrued retirement benefits, net of current portion | 113,452 | 129,837 | |
Other long-term liabilities | 315,939 | 262,900 | |
Liabilities subject to compromise | 10,169,243 | 10,168,518 | |
Shareholders’ deficit: | |||
Common shares, nominal value $0.01 per share | 1,422 | 1,421 | |
Paid-in capital | 2,577,607 | 2,573,840 | |
Accumulated deficit | (8,889,282) | (8,416,410) | |
Accumulated other comprehensive loss | (77,261) | (80,322) | |
Total Intelsat S.A. shareholders’ deficit | (6,387,514) | (5,921,471) | |
Total liabilities and shareholders’ deficit | 13,253,070 | 12,797,681 | |
Parent Company and Subsidiaries in Debtor-In-Possession Financing | |||
Current assets: | |||
Cash and cash equivalents | 418,715 | 879,191 | $ 880,185 |
Restricted cash | 27,308 | 20,817 | $ 19,091 |
Receivables, net of allowances of $34,391 in 2020 and $26,127 in 2021 | 116,994 | 156,402 | |
Receivables relating to C-band | 1,035,578 | 405,171 | |
Contract assets, net of allowances | 14,244 | 15,474 | |
Inventory | 929 | 1,347 | |
Prepaid expenses and other current assets | 108,400 | 100,021 | |
Intercompany receivables | 914,875 | 678,188 | |
Total current assets | 2,637,043 | 2,256,611 | |
Satellites and other property and equipment, net | 4,890,864 | 4,656,678 | |
Goodwill | 2,624,452 | 2,624,452 | |
Non-amortizable intangible assets | 2,295,000 | 2,295,000 | |
Amortizable intangible assets, net | 224,173 | 245,649 | |
Contract assets, net of current portion and allowances | 21,600 | 26,642 | |
Investment in affiliates | (12,342) | 150,029 | |
Other assets | 489,954 | 357,897 | |
Total assets | 13,170,744 | 12,612,958 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 364,253 | 222,876 | |
Taxes payable | 6,925 | 6,743 | |
Employee-related liabilities | 33,974 | 36,563 | |
Accrued interest payable | 19,094 | 17,747 | |
Current maturities of long-term debt | 6,162,315 | 5,903,724 | |
Contract liabilities | 845,055 | 146,762 | |
Deferred satellite performance incentives | 54,512 | 47,377 | |
Other current liabilities | 75,683 | 43,885 | |
Total current liabilities | 7,561,811 | 6,425,677 | |
Contract liabilities, net of current portion | 1,270,745 | 1,422,893 | |
Deferred satellite performance incentives, net of current portion | 121,439 | 138,116 | |
Deferred income taxes | 74,701 | 61,069 | |
Accrued retirement benefits, net of current portion | 113,452 | 129,837 | |
Other long-term liabilities | 246,867 | 188,394 | |
Liabilities subject to compromise | 10,169,243 | 10,168,518 | |
Shareholders’ deficit: | |||
Common shares, nominal value $0.01 per share | 1,422 | 1,421 | |
Paid-in capital | 2,577,607 | 2,573,840 | |
Accumulated deficit | (8,889,282) | (8,416,410) | |
Accumulated other comprehensive loss | (77,261) | (80,397) | |
Total Intelsat S.A. shareholders’ deficit | (6,387,514) | (5,921,546) | |
Total liabilities and shareholders’ deficit | $ 13,170,744 | $ 12,612,958 |
Condensed Combined Debtors' F_5
Condensed Combined Debtors' Financial Information - Debtors' Condensed Combined Balance Sheet (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | May 20, 2020 | Dec. 31, 2019 |
Receivables, allowance | $ 32,949 | $ 29,202 | $ 40,785 | $ 29,838 | $ 27,578 | $ 40,028 | |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Parent Company and Subsidiaries in Debtor-In-Possession Financing | |||||||
Receivables, allowance | $ 26,127 | $ 34,391 | |||||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Condensed Combined Debtors' F_6
Condensed Combined Debtors' Financial Information - Debtors' Unaudited Condensed Combined Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 526,095 | $ 489,449 | $ 1,536,720 | $ 1,430,303 |
Operating expenses: | ||||
Direct costs of revenue (excluding depreciation and amortization) | 177,176 | 119,969 | 505,798 | 331,191 |
Selling, general and administrative | 96,796 | 69,215 | 299,499 | 214,586 |
Depreciation and amortization | 162,017 | 162,573 | 495,517 | 488,235 |
Impairment of non-amortizable intangible and other assets | 0 | 0 | 0 | 46,243 |
Other operating expense—C-band | 17,867 | 298 | 140,861 | 580 |
Total operating expenses | 453,856 | 352,055 | 1,441,675 | 1,080,835 |
Income from operations | 72,239 | 137,394 | 95,045 | 349,468 |
Interest expense, net | (126,600) | (138,075) | (388,836) | (678,937) |
Other income, net | 10,196 | 3,067 | 40,133 | 8,564 |
Total reorganization items | (98,316) | (36,367) | (203,719) | (335,059) |
Loss before income taxes | (142,481) | (33,981) | (457,377) | (655,964) |
Income tax benefit (expense) | (2,605) | 18,650 | (13,716) | 17,691 |
Net loss | (145,086) | (15,331) | (471,093) | (638,273) |
Parent Company and Subsidiaries in Debtor-In-Possession Financing | ||||
Revenue | 404,727 | 473,556 | 1,215,558 | 1,314,307 |
Operating expenses: | ||||
Direct costs of revenue (excluding depreciation and amortization) | 66,106 | 68,891 | 195,254 | 199,958 |
Selling, general and administrative | 56,964 | 57,659 | 175,722 | 181,931 |
Cost from affiliates | 11,766 | 9,785 | 35,575 | 32,047 |
Depreciation and amortization | 150,683 | 157,442 | 459,743 | 472,610 |
Impairment of non-amortizable intangible and other assets | 0 | 0 | 0 | 46,243 |
Other operating expense—C-band | 17,867 | 298 | 140,861 | 580 |
Total operating expenses | 303,386 | 294,075 | 1,007,155 | 933,369 |
Income from operations | 101,341 | 179,481 | 208,403 | 380,938 |
Interest expense, net | (119,049) | (137,444) | (367,477) | (677,124) |
Equity in loss of affiliates | (34,280) | (40,791) | (128,793) | (41,260) |
Other income, net | 11,594 | 2,973 | 39,224 | 15,007 |
Total reorganization items | (98,316) | (36,367) | (203,719) | (335,059) |
Loss before income taxes | (138,710) | (32,148) | (452,362) | (657,498) |
Income tax benefit (expense) | (6,980) | 16,217 | (20,510) | 17,441 |
Net loss | $ (145,690) | $ (15,931) | $ (472,872) | $ (640,057) |
Condensed Combined Debtors' F_7
Condensed Combined Debtors' Financial Information - Debtors' Unaudited Condensed Combined Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||||||
Net loss | $ (145,086) | $ (15,331) | $ (471,093) | $ (638,273) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Depreciation and amortization | 162,017 | 162,573 | 495,517 | 488,235 | ||
Provision for expected credit losses | 21,729 | 36,360 | ||||
Foreign currency transaction losses | 2,639 | 7,330 | ||||
Loss on disposal of assets | 43 | 0 | ||||
Impairment of non-amortizable intangible and other assets | 0 | 0 | 0 | 46,243 | ||
Share-based compensation | 19,377 | 9,399 | ||||
Deferred income taxes | 5,404 | 4,720 | ||||
Amortization of discount, premium, issuance costs and related costs | 7,559 | 19,689 | ||||
Non-cash reorganization items | 0 | 196,974 | ||||
Debtor-in-possession financing fees | 46,944 | 0 | 46,944 | 52,182 | ||
Amortization of actuarial loss and prior service credits for retirement benefits | 3,189 | 1,976 | ||||
Unrealized losses on derivative financial instruments | 0 | 372 | ||||
Unrealized (gains) losses on investments and loans held-for-investment | (25,226) | 721 | ||||
Other non-cash items | (133) | 0 | ||||
Changes in operating assets and liabilities: | ||||||
Receivables | 22,554 | 2,769 | ||||
Prepaid expenses, contract and other assets | 17,557 | (67,253) | ||||
Accounts payable and accrued liabilities | 3,603 | 60,624 | ||||
Accrued interest payable | 1,347 | 48,713 | ||||
Contract liabilities | (67,054) | (62,737) | ||||
Accrued retirement benefits | (16,385) | (12,253) | ||||
Other long-term liabilities | (25,944) | (1,062) | ||||
Net cash provided by operating activities | 50,176 | 194,729 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures (including capitalized interest) | (667,885) | (419,952) | ||||
Acquisition of loan to affiliate | (60,000) | 0 | ||||
Proceeds from sale of investment | $ 15,000 | 15,000 | 0 | |||
Loan amendment fees received | 1,800 | 0 | ||||
Proceeds from principal payments on loans held-for-investment | 208 | 973 | ||||
Other proceeds from satellites | 0 | 5,625 | ||||
Net cash used in investing activities | (654,192) | (418,346) | ||||
Cash flows from financing activities: | ||||||
Proceeds from debtor-in-possession financing | 1,250,000 | 500,000 | ||||
Repayments of debtor-in-possession financing | (1,000,000) | 0 | ||||
Debtor-in-possession financing fees | (46,944) | (52,182) | ||||
Principal payments on deferred satellite performance incentives | (14,859) | (25,428) | ||||
Net cash provided by financing activities | 183,904 | 417,431 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,250) | (4,328) | ||||
Net change in cash, cash equivalents and restricted cash | (423,362) | 189,486 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 1,087,547 | 830,864 | ||||
Cash, cash equivalents, and restricted cash, end of period | 664,185 | 1,020,350 | 664,185 | 1,020,350 | ||
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated Debtors' balance sheet to the total sum of these same amounts shown on the condensed consolidated Debtors' statement of cash flows: | ||||||
Cash and cash equivalents | 636,510 | 636,510 | $ 1,060,917 | |||
Restricted cash | 27,675 | 27,675 | 21,130 | |||
Cash, cash equivalents and restricted cash | 664,185 | 1,020,350 | 664,185 | 1,020,350 | 1,087,547 | |
Parent Company and Subsidiaries in Debtor-In-Possession Financing | ||||||
Cash flows from operating activities: | ||||||
Net loss | (145,690) | (15,931) | (472,872) | (640,057) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Depreciation and amortization | 150,683 | 157,442 | 459,743 | 472,610 | ||
Provision for expected credit losses | 17,224 | 34,465 | ||||
Foreign currency transaction losses | 863 | (801) | ||||
Loss on disposal of assets | 43 | 0 | ||||
Impairment of non-amortizable intangible and other assets | 0 | 0 | 0 | 46,243 | ||
Share-based compensation | 3,586 | 9,031 | ||||
Deferred income taxes | 11,102 | 5,470 | ||||
Amortization of discount, premium, issuance costs and related costs | 7,559 | 19,689 | ||||
Non-cash reorganization items | 0 | 196,974 | ||||
Debtor-in-possession financing fees | 46,944 | 52,182 | ||||
Amortization of actuarial loss and prior service credits for retirement benefits | 3,189 | 1,976 | ||||
Unrealized losses on derivative financial instruments | 0 | 372 | ||||
Unrealized (gains) losses on investments and loans held-for-investment | (46,661) | 721 | ||||
Equity in (income) losses of affiliates | 34,280 | 40,791 | 128,793 | 41,260 | ||
Other non-cash items | (517) | (7) | ||||
Changes in operating assets and liabilities: | ||||||
Receivables | 21,697 | 12,841 | ||||
Intercompany receivables | (155,277) | (105,048) | ||||
Prepaid expenses, contract and other assets | 6,124 | (81,814) | ||||
Accounts payable and accrued liabilities | 116,437 | 69,812 | ||||
Accrued interest payable | 1,347 | 48,713 | ||||
Contract liabilities | (84,422) | (66,304) | ||||
Accrued retirement benefits | (16,385) | (12,253) | ||||
Other long-term liabilities | (20,132) | 2,801 | ||||
Net cash provided by operating activities | 28,385 | 108,876 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures (including capitalized interest) | (661,091) | (414,610) | ||||
Dividends from affiliates | 34,276 | 28,960 | ||||
Proceeds from sale of investment | 15,000 | 0 | ||||
Loan amendment fees received | 1,800 | 0 | ||||
Proceeds from principal payments on loans held-for-investment | 208 | 973 | ||||
Capital contribution to affiliates | 0 | (9,005) | ||||
Other proceeds from satellites | 0 | 5,625 | ||||
Net cash used in investing activities | (669,807) | (388,057) | ||||
Cash flows from financing activities: | ||||||
Proceeds from debtor-in-possession financing | 1,250,000 | 500,000 | ||||
Repayments of debtor-in-possession financing | (1,000,000) | 0 | ||||
Debtor-in-possession financing fees | (46,944) | (52,182) | ||||
Principal payments on deferred satellite performance incentives | (14,859) | (25,428) | ||||
Net cash provided by financing activities | 188,197 | 422,390 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (760) | 754 | ||||
Net change in cash, cash equivalents and restricted cash | (453,985) | 143,963 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 900,008 | 755,313 | ||||
Cash, cash equivalents, and restricted cash, end of period | 446,023 | 899,276 | 446,023 | 899,276 | ||
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated Debtors' balance sheet to the total sum of these same amounts shown on the condensed consolidated Debtors' statement of cash flows: | ||||||
Cash and cash equivalents | 418,715 | 880,185 | 418,715 | 880,185 | 879,191 | |
Restricted cash | 27,308 | 19,091 | 27,308 | 19,091 | 20,817 | |
Cash, cash equivalents and restricted cash | $ 446,023 | $ 899,276 | $ 446,023 | $ 899,276 | $ 900,008 |
Uncategorized Items - i-2021093
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |