XML 44 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2012
SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION [Abstract]  
Supplemental Condensed Consolidating Statement of Operations

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
Revenue:                                        
Service revenues   $ 14,296     $ 10,832     $ 4,002     $ (13,762 )   $ 15,368  
Subscriber equipment sales     255       4,138       2,941       (2,165 )     5,169  
Total revenue     14,551       14,970       6,943       (15,927 )     20,537  
Operating expenses:                                        
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)     1,784       3,585       1,983       (1,794 )     5,558  
Cost of subscriber equipment sales     134       4,742       3,780       (4,616 )     4,040  
Cost of subscriber equipment sales - reduction in the value of inventory     -       658       2       -       660  
Marketing, general and administrative     5,236       1,944       3,379       (1,279 )     9,280  
Reduction in the value of long-lived assets     -       -       -       -       -  
Contract termination charge     -       -       -       -       -  
Depreciation, amortization, and accretion     13,313       13,782       4,338       (12,779 )     18,654  
Total operating expenses     20,467       24,711       13,482       (20,468 )     38,192  
Loss from operations     (5,916 )     (9,741 )     (6,539 )     4,541       (17,655 )
Other income (expense):                                        
Interest income and expense, net of amounts capitalized     (6,172 )     (1 )     (394 )     2       (6,565 )
Derivative loss     (16,473 )     -       -       -       (16,473 )
Equity in subsidiary earnings     (12,120 )     2,205       -       9,915       -  
Other     (456 )     (117 )     218       (84 )     (439 )
Total other income (expense)     (35,221 )     2,087       (176 )     9,833       (23,477 )
Loss before income taxes     (41,137 )     (7,654 )     (6,715 )     14,374       (41,132 )
Income tax (benefit) expense     51       (18 )     23       -       (56 )
Net loss   $ (41,188 )   $ (7,636 )   $ (6,738 )   $ 14,374     $ (41,188 )
                                         
Comprehensive loss   $ (41,188 )   $ (7,636 )   $ (5,619 )   $ 14,374     $ (40,069 )

 

 

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2011

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
Revenue:                                        
Service revenues   $ 8,120     $ 9,992     $ 5,049     $ (8,963 )   $ 14,198  
Subscriber equipment sales     301       2,905       229       554       3,989  
Total revenue     8,421       12,897       5,278       (8,409 )     18,187  
Operating expenses:                                        
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)     4,595       1,421       3,498       (1,182 )     8,332  
Cost of subscriber equipment sales     -       2,661       2,187       (1,977 )     2,871  
Cost of subscriber equipment sales - reduction in the value of inventory     -       312       667       -       979  
Marketing, general and administrative     3,839       5,980       2,430       -       12,249  
Reduction in the value of long-lived assets     788       2,195       55       -       3,038  
Contract termination charge     -       -       -       -       -  
Depreciation, amortization, and accretion     6,187       9,171       3,836       (7,088 )     12,106  
Total operating expenses     15,409       21,740       12,673       (10,247 )     39,575  
(Loss) gain from operations     (6,988 )     (8,843 )     (7,395 )     1,838       (21,388 )
Other income (expense):                                        
Interest income and expense, net of amounts capitalized     (641 )             (582 )     (9 )     (1,232 )
Derivative gain     23,793       -       -       -       23,793  
Equity in subsidiary earnings     (16,544 )     (3,349 )     -       19,893       -  
Other     (302 )     247       (1,924 )     103       (1,876 )
Total other income (expense)     6,306       (3,102 )     (2,506 )     19,987       20,685  
Loss before income taxes     (682 )     (11,945 )     (9,901 )     21,825       (703 )
Income tax expense     (1 )     (23 )     2       -       (22 )
Net (loss) gain   $ (681 )   $ (11,922 )   $ (9,903 )   $ 21,825     $ (681 )
                                         
Comprehensive loss   $ (681 )   $ (11,922 )   $ (10,034 )   $ 21,822     $ (815 )

 

 

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
Revenue:                                        
Service revenues   $ 35,609     $ 30,528     $ 11,609     $ (35,600 )   $ 42,146  
Subscriber equipment sales     809       12,328       5,676       (3,703 )     15,110  
Total revenue     36,418       42,856       17,285       (39,303 )     57,256  
Operating expenses:                                        
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)     5,678       6,231       5,888       (1,082 )     16,715  
Cost of subscriber equipment sales     284       9,420       5,377       (4,616 )     10,465  
Cost of subscriber equipment sales - reduction in the value of inventory     2       904       51       -       957  
Marketing, general and administrative     15,493       4,997       9,426       (3,351 )     26,565  
Reduction in the value of long-lived assets     79       7,139       -       -       7,218  
Contract termination charge     22,048       -       -       -       22,048  
Depreciation, amortization, and accretion     32,789       36,817       12,343       (32,672 )     49,277  
Total operating expenses     76,373       65,508       33,085       (41,721 )     133,245  
Loss from operations     (39,955 )     (22,652 )     (15,800 )     2,418       (75,989 )
Other income (expense):                                        
Interest income and expense, net of amounts capitalized     (12,126 )     (7 )     (1,261 )     (2 )     (13,396 )
Derivative loss     (2,562 )     -       -       -       (2,562 )
Equity in subsidiary earnings     (37,737 )     6,703       -       31,034       -  
Other     (687 )     (12 )     (163 )     (76 )     (938 )
Total other income (expense)     (53,112 )     6,684       (1,424 )     30,956       (16,896 )
Loss before income taxes     (93,067 )     (15,968 )     (17,224 )     33,374       (92,885 )
Income tax expense     179       30       152       -       361  
Net loss   $ (93,246 )   $ (15,998 )   $ (17,376 )   $ 33,374     $ (93,246 )
                                         
Comprehensive loss   $ (93,246 )   $ (15,998 )   $ (15,708 )   $ 33,374     $ (91,578 )

 

 

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2011

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
Revenue:                                        
Service revenues   $ 21,693     $ 29,624     $ 13,179     $ (22,722 )   $ 41,774  
Subscriber equipment sales     710       10,567       3,871       (1,482 )     13,666  
Total revenue     22,403       40,191       17,050       (24,204 )     55,440  
Operating expenses:                                        
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)     9,602       6,262       9,996       (3,176 )     22,684  
Cost of subscriber equipment sales     529       7,998       3,472       (2,678 )     9,321  
Cost of subscriber equipment sales - reduction in the value of inventory     -       735       666       -       1,401  
Marketing, general and administrative     8,702       17,470       7,832       -       34,004  
Reduction in the value of long-lived assets     1,073       2,356       55       -       3,484  
Contract termination charge     -       -       -       -       -  
Depreciation, amortization, and accretion     16,208       27,396       10,901       (18,993 )     35,512  
Total operating expenses     36,114       62,217       32,922       (24,847 )     106,406  
(Loss) gain from operations     (13,711 )     (22,026 )     (15,872 )     643       (50,966 )
Other income (expense):                                        
Interest income and expense, net of amounts capitalized     (2,046 )     -       (1,552 )     (1 )     (3,599 )
Derivative gain     34,090       -       -       -       34,090  
Equity in subsidiary earnings     (39,816 )     (7,193 )     -       47,009       -  
Other     295       (117 )     (695 )     (56 )     (573 )
Total other income (expense)     (7,477 )     (7,310 )     (2,247 )     46,952       29,918  
Loss before income taxes     (21,188 )     (29,336 )     (18,119 )     47,595       (21,048 )
Income tax expense     27       -       140       -       167  
Net (loss) gain   $ (21,215 )   $ (29,336 )   $ (18,259 )   $ 47,595     $ (21,215 )
                                         
Comprehensive loss   $ (21,215 )   $ (29,336 )   $ (18,397 )   $ 47,592     $ (21,356 )

 
Supplemental Condensed Consolidating Balance Sheet

Globalstar, Inc.

Supplemental Condensed Consolidating Balance Sheet

As of September 30, 2012

(Unaudited)

 

    Parent
Company		     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Consolidated  
    (In thousands)  
ASSETS                                        
Current assets:                                        
Cash and cash equivalents   $ 451     $ 225     $ 543     $ -     $ 1,219  
Restricted cash     50,426       -       -       -       50,426  
Accounts receivable     3,725       4,936       4,940       -       13,601  
Intercompany receivables     593,317       398,411       23,788       (1,015,516 )     -  
Inventory     545       6,598       35,902       -       43,045  
Deferred financing costs, current     36,911       -       -       -       36,911  
Prepaid expenses and other current assets     3,019       441       2,325       -       5,785  
Total current assets     688,394       410,611       67,498       (1,015,516 )     150,987  
                                         
Property and equipment, net     1,101,982       36,521       87,366       445       1,226,314  
Restricted cash     -       -       -       -       -  
Intercompany notes receivable     47,662       14,413       26,364       (88,439 )     -  
Investment in subsidiaries     (148,557 )     (8,426 )     -       156,983       -  
Deferred financing costs     10,528       -       -       -       10,528  
Advances for inventory     9,158       -       -       -       9,158  
Intangible and other assets, net     3,222       2,083       1,832       (15 )     7,122  
Total assets   $ 1,712,389     $ 455,202     $ 183,060     $ (946,542 )   $ 1,404,109  
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current liabilities:                                        
Current portion of long-term debt   $ 651,909     $ -     $ -     $ -     $ 651,909  
Accounts payable     17,221       3,238       22,296               42,755  
Accrued contract termination charge     22,048       -       -       -       22,048  
Accrued expenses     9,549       9,205       10,759               29,513  
Intercompany payables     382,374       479,640       151,705       (1,013,719 )     -  
Payables to affiliates     200       31       -       -       231  
Deferred revenue     1,494       14,095       828       -       16,417  
Total current liabilities     1,084,795       506,209       185,588       (1,013,719 )     762,873  
                                         
Long-term debt, less current portion     90,204       -       -       -       90,204  
Employee benefit obligations     7,152       -       -       -       7,152  
Intercompany notes payable     -       -       32,665       (32,665 )     -  
Derivative liabilities     34,720       -       -       -       34,720  
Deferred revenue     7,391       339       -       -       7,730  
Other non-current liabilities     4,054       2,731       10,572       -       17,357  
Total non-current liabilities     143,521       3,070       43,237       (32,665 )     157,163  
Stockholders' equity     484,073       (54,077 )     (45,765 )     99,842       484,073  
Total liabilities and stockholders' equity   $ 1,712,389     $ 455,202     $ 183,060     $ (946,542 )   $ 1,404,109  

 

Globalstar, Inc.

Supplemental Condensed Consolidating Balance Sheet

As of December 31, 2011

(Audited)

 

    Parent
Company		     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Consolidated  
    (In thousands)  
ASSETS                                        
Current assets:                                        
Cash and cash equivalents   $ 7,343     $ 587     $ 2,021     $ -     $ 9,951  
Restricted cash     -       -       -       -       -  
Accounts receivable     3,363       4,322       4,708       -       12,393  
Intercompany receivables     538,876       351,510       13,923       (904,309 )     -  
Inventory     1       4,564       37,283       -       41,848  
Prepaid expenses and other current assets     2,846       303       2,132       -       5,281  
Total current assets     552,429       361,286       60,067       (904,309 )     69,473  
                                         
Property and equipment, net     1,070,543       60,872       87,624       (1,321 )     1,217,718  
Restricted cash     46,776       -       -       -       46,776  
Intercompany notes receivable     40,456       -       1,800       (42,256 )     -  
Investment in subsidiaries     (106,377 )     (18,629 )     -       125,006       -  
Deferred financing costs     53,409       -       73       -       53,482  
Advances for inventory     9,158       -       -       -       9,158  
Intangible and other assets, net     12,773       2,988       8,052       (15 )     23,798  
Total assets   $ 1,679,167     $ 406,517     $ 157,616     $ (822,895 )   $ 1,420,405  
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current liabilities:                                        
Current maturities of long-term debt   $ -     $ -     $ -     $ -     $ -  
Accounts payable     19,346       1,953       26,509       -       47,808  
Accrued contract termination charge     -       -       -       -       -  
Accrued expenses     11,558       8,459       8,789       -       28,806  
Intercompany payables     333,201       427,852       142,966       (904,019 )     -  
Payables to affiliates     378       -       -       -       378  
Deferred revenue     1,043       12,740       805       -       14,588  
Total current liabilities     365,526       451,004       179,069       (904,019 )     91,580  
                                         
Long-term debt, less current maturities     723,888       -       -       -       723,888  
Employee benefit obligations     7,407       -       -       -       7,407  
Intercompany notes payable     -       -       41,356       (41,356 )     -  
Derivative liabilities     38,996       -       -       -       38,996  
Deferred revenue     6,695       600       -       -       7,295  
Other non-current liabilities     2,860       3,837       10,747       -       17,444  
Total non-current liabilities     779,846       4,437       52,103       (41,356 )     795,030  
Stockholders' equity     533,795       (48,924 )     (73,556 )     122,480       533,795  
Total liabilities and stockholders' equity   $ 1,679,167     $ 406,517     $ 157,616     $ (822,895 )   $ 1,420,405  
Supplemental Condensed Consolidating Statement of Cash Flows

 

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2012

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
                               
Net cash provided by (used in) operating activities   $ 12,655     $ (165 )   $ (1,612 )   $ -     $ 10,878  
                                         
Cash flows from investing activities:                                        
Second-generation satellites, ground and related launch costs     (43,305 )                             (43,305 )
Property and equipment additions     -       (197 )     (185 )     -       (382 )
Investment in businesses     (450 )     -       -       -       (450 )
Restricted cash     (3,650 )     -       -       -       (3,650 )
                                         
Net cash used in investing activities     (47,405 )     (197 )     (185 )     -       (47,787 )
                                         
Cash flows from financing activities:                                        
Proceeds from issuance of common stock and stock options     100       -       -       -       100  
Borrowings from Facility Agreement     5,008       -       -       -       5,008  
Proceeds from contingent equity account     23,000       -       -       -       23,000  
Payment of deferred financing costs     (250 )     -       -       -       (250 )
Net cash from by financing activities     27,858       -       -       -       27,858  
Effect of exchange rate changes on cash and cash equivalents     -       -       319       -       319  
Net increase (decrease) in cash and cash equivalents     (6,892 )     (362 )     (1,478 )             (8,732 )
Cash and cash equivalents at beginning of period     7,343       587       2,021       -       9,951  
Cash and cash equivalents at end of period   $ 451     $ 225     $ 543     $ -     $ 1,219  

 

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2011

(Unaudited)

 

                Non-              
    Parent     Guarantor     Guarantor              
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (In thousands)  
                               
Net cash provided by (used in) operating activities   $ (14,793 )   $ 3,052     $ 891     $ -     $ (10,850 )
                                         
Cash flows used in investing activities:                                        
Second-generation satellites, ground and related launch costs     (71,212 )     -       -       -       (71,212 )
Property and equipment additions     (501 )     (1,692 )     (192 )     -       (2,385 )
Investment in businesses     (500 )     -       -       -       (500 )
Restricted cash     (10,436 )     -       -       -       (10,436 )
                                         
Net cash used in investing activities     (82,649 )     (1,692 )     (192 )     -       (84,533 )
                                         
Cash flows from financing activities:                                        
Proceeds from issuance of common stock and stock options     526       -       -       -       526  
Borrowings from Facility Agreement     18,659       -       -       -       18,659  
Proceeds from the issuance of 5.0% convertible notes     38,000       -       -       -       38,000  
Proceeds from the contribution to the debt service reserve account     12,500       -       -       -       12,500  
Payment of deferred financing costs     (925 )     -       -       -       (925 )
Net cash from by financing activities     68,760       -       -       -       68,760  
Effect of exchange rate changes on cash and cash equivalents     -       -       (314 )     -       (314 )
Net increase (decrease) in cash and cash equivalents     (28,682 )     1,360       385       -       (26,937 )
Cash and cash equivalents at beginning of period     32,288       (766 )     1,495       -       33,017  
Cash and cash equivalents at end of period   $ 3,606     $ 594     $ 1,880     $ -     $ 6,080