x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
(Nasdaq Global Select Market) |
x | Accelerated Filer | ¨ | |||
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ¨ | ||
Emerging Growth Company | ¨ |
Item No. | Page | |||
ITEM 2. | ||||
ITEM 3. | ||||
ITEM 4. | ||||
ITEM 1. | ||||
ITEM 1A. | ||||
ITEM 2. | ||||
ITEM 3. | ||||
ITEM 4. | ||||
ITEM 5. | ||||
ITEM 6. | ||||
June 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Inventory | |||||||
Prepaid expenses and other current assets | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Intangible assets, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Short-term secured debt | $ | $ | |||||
Accounts payable | |||||||
Accrued expenses and other current liabilities | |||||||
Interest payable | |||||||
Deferred revenue | |||||||
Total current liabilities | |||||||
Long-term secured debt, net | |||||||
Long-term senior unsecured notes, net | |||||||
Deferred income tax liabilities, net | |||||||
Deferred revenue, net of current portion | |||||||
Other long-term liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value, 300,000 shares authorized; 132,526 and 131,632 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss, net of tax | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Services | $ | $ | $ | $ | ||||||||||||
Subscriber equipment | ||||||||||||||||
Engineering and support services | ||||||||||||||||
Total revenue | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | ||||||||||||||||
Cost of subscriber equipment | ||||||||||||||||
Research and development | ||||||||||||||||
Selling, general and administrative | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Total operating expenses | ||||||||||||||||
Operating income | ||||||||||||||||
Other expense, net: | ||||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Loss on extinguishment of debt | ( | ) | ( | ) | ||||||||||||
Other income (expense), net | ( | ) | ( | ) | ( | ) | ||||||||||
Total other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax benefit | ||||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Series B preferred stock dividends, declared and paid excluding cumulative dividends | ||||||||||||||||
Net loss attributable to common stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Weighted average shares outstanding - basic and diluted | ||||||||||||||||
Net loss attributable to common stockholders per share - basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Comprehensive loss: | ||||||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Foreign currency translation adjustments, net of tax | ( | ) | ||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax | ( | ) | ||||||||||||||
Comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Total stockholders’ equity, beginning balance | $ | $ | $ | $ | ||||||||||||
Common stock: | ||||||||||||||||
Beginning balance | ||||||||||||||||
Stock options exercised and awards vested | ||||||||||||||||
Preferred stock converted to common | ||||||||||||||||
Ending balance | ||||||||||||||||
Additional paid-in capital: | ||||||||||||||||
Beginning balance | ||||||||||||||||
Stock-based compensation | ||||||||||||||||
Stock options exercised and awards vested | ||||||||||||||||
Stock withheld to cover employee taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Preferred stock converted to common | ( | ) | ( | ) | ||||||||||||
Ending balance | ||||||||||||||||
Retained earnings: | ||||||||||||||||
Beginning balance | ||||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Dividends on Series B preferred stock | ( | ) | ( | ) | ||||||||||||
Ending balance | ||||||||||||||||
Accumulated other comprehensive loss, net of tax: | ||||||||||||||||
Beginning balance | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Cumulative translation adjustments, net of tax | ( | ) | ||||||||||||||
Unrealized gain (loss) on cash flow hedge, net of tax | ( | ) | ||||||||||||||
Ending balance | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total stockholders’ equity, ending balance | $ | $ | $ | $ | ||||||||||||
Dividends declared per share: | ||||||||||||||||
Series B preferred stock | $ | $ | $ | $ |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Deferred income taxes | ( | ) | ( | ) | ||||
Depreciation and amortization | ||||||||
Loss on extinguishment of debt | ||||||||
Stock-based compensation (net of amounts capitalized) | ||||||||
Amortization of deferred financing fees | ||||||||
All other items, net | ||||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | ( | ) | ||||||
Inventory | ( | ) | ||||||
Prepaid expenses and other current assets | ( | ) | ||||||
Other assets | ||||||||
Accounts payable | ||||||||
Accrued expenses and other current liabilities | ( | ) | ( | ) | ||||
Interest payable | ( | ) | ||||||
Deferred revenue | ( | ) | ( | ) | ||||
Other long-term liabilities | ( | ) | ( | ) | ||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Purchase of other investments | ( | ) | ||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities: | ||||||||
Payments on the Credit Facility, including extinguishment costs | ( | ) | ||||||
Borrowings under the Term Loan | ||||||||
Payments on the Term Loan | ( | ) | ||||||
Repayments on the senior unsecured notes, including extinguishment costs | ( | ) | ||||||
Payment of deferred financing fees | ( | ) | ||||||
Proceeds from exercise of stock options | ||||||||
Tax payment upon settlement of stock awards | ( | ) | ( | ) | ||||
Payment of Series B preferred stock dividends | ( | ) | ||||||
Net cash used in financing activities | ( | ) | ( | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | ||||
Cash, cash equivalents, and restricted cash, beginning of period | ||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | $ | ||||||
Income taxes paid, net | $ | $ | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Property and equipment received but not paid | $ | $ | ||||||
Interest capitalized but not paid | $ | $ | ||||||
Capitalized amortization of deferred financing costs | $ | $ | ||||||
Capitalized stock-based compensation | $ | $ |
• | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; |
• | Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
June 30, 2020 | December 31, 2019 | Recurring Fair Value Measurement | ||||||||
(in thousands) | ||||||||||
Cash and cash equivalents: | ||||||||||
Cash | $ | $ | ||||||||
Money market funds | Level 2 | |||||||||
Total cash and cash equivalents | $ | $ |
Year Ending December 31, | Amount | |||
(in thousands) | ||||
2020 | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total lease income | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Commercial services revenue: | ||||||||||||||||
Voice and data | $ | $ | $ | $ | ||||||||||||
Broadband | ||||||||||||||||
IoT data | ||||||||||||||||
Hosted payload and other data | ||||||||||||||||
Total commercial services revenue | ||||||||||||||||
Government services revenue | ||||||||||||||||
Total services revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Commercial engineering and support services | $ | $ | $ | $ | ||||||||||||
Government engineering and support services | ||||||||||||||||
Total engineering and support services revenue | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | |||||||
(in thousands) | ||||||||
Contract Assets: | ||||||||
Commissions | $ | $ | ||||||
Other contract costs | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss - basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Denominator: | ||||||||||||||||
Weighted average common shares - basic and diluted | ||||||||||||||||
Net loss per share - basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
(in thousands, except per share data) | ||||||||||||
Anti-dilutive contingent performance-based RSUs | ||||||||||||
Anti-dilutive service-based RSUs | ||||||||||||
Anti-dilutive options |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | demand for remote and reliable mobile communications services; |
• | a growing number of new products and services and related applications; |
• | a broad wholesale distribution network with access to diverse and geographically dispersed niche markets; |
• | increased demand for communications services by disaster and relief agencies, and emergency first responders; |
• | improved data transmission speeds for mobile satellite service offerings; |
• | regulatory mandates requiring the use of mobile satellite services; |
• | a general reduction in prices of mobile satellite services and subscriber equipment; and |
• | geographic market expansion through the ability to offer our services in additional countries. |
• | the effects of the COVID-19 pandemic on us and on Aireon, including on revenue, employee health and safety, employee productivity, and the financial health and effectiveness of our distributors and suppliers; |
• | our ability to maintain the health, capacity, control and level of service of our satellites; |
• | our ability to develop and launch new and innovative products and services; |
• | changes in general economic, business and industry conditions, including the effects of currency exchange rates; |
• | our reliance on a single primary commercial gateway and a primary satellite network operations center; |
• | competition from other mobile satellite service providers and, to a lesser extent, from the expansion of terrestrial-based cellular phone systems and related pricing pressures; |
• | interference with our services caused by the repurposing of L-band satellite spectrum for terrestrial purposes; |
• | market acceptance of our products; |
• | regulatory requirements in existing and new geographic markets; |
• | rapid and significant technological changes in the telecommunications industry; |
• | our ability to generate sufficient internal cash flows to repay our debt; |
• | reliance on our wholesale distribution network to market and sell our products, services and applications effectively; |
• | reliance on single-source suppliers for the manufacture of most of our subscriber equipment and for some of the components required in the manufacture of our end-user subscriber equipment and our ability to purchase parts that are periodically subject to shortages resulting from surges in demand, natural disasters or other events, potentially including the COVID-19 pandemic; and |
• | reliance on a few significant customers, particularly agencies of the U.S. government, for a substantial portion of our revenue, as a result of which the loss or decline in business with any of these customers may negatively impact our revenue and collectability of related accounts receivable. |
Three Months Ended June 30, | Change | ||||||||||||||||||||
2020 | % of Total Revenue | 2019 | % of Total Revenue | ||||||||||||||||||
($ in thousands) | Dollars | Percent | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Services | $ | 113,350 | 81 | % | $ | 110,797 | 77 | % | $ | 2,553 | 2 | % | |||||||||
Subscriber equipment | 19,815 | 14 | % | 23,420 | 16 | % | (3,605 | ) | (15 | )% | |||||||||||
Engineering and support services | 7,008 | 5 | % | 8,883 | 7 | % | (1,875 | ) | (21 | )% | |||||||||||
Total revenue | 140,173 | 100 | % | 143,100 | 100 | % | (2,927 | ) | (2 | )% | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of services (exclusive of depreciation | |||||||||||||||||||||
and amortization) | 23,134 | 17 | % | 25,607 | 18 | % | (2,473 | ) | (10 | )% | |||||||||||
Cost of subscriber equipment | 12,069 | 9 | % | 13,370 | 9 | % | (1,301 | ) | (10 | )% | |||||||||||
Research and development | 2,380 | 2 | % | 4,285 | 3 | % | (1,905 | ) | (44 | )% | |||||||||||
Selling, general and administrative | 21,100 | 15 | % | 20,969 | 15 | % | 131 | 1 | % | ||||||||||||
Depreciation and amortization | 75,662 | 54 | % | 75,128 | 52 | % | 534 | 1 | % | ||||||||||||
Total operating expenses | 134,345 | 96 | % | 139,359 | 97 | % | (5,014 | ) | (4 | )% | |||||||||||
Operating income | 5,828 | 4 | % | 3,741 | 3 | % | 2,087 | 56 | % | ||||||||||||
Other expense: | |||||||||||||||||||||
Interest expense, net | (22,506 | ) | (16 | )% | (28,986 | ) | (20 | )% | 6,480 | (22 | )% | ||||||||||
Other expense, net | (320 | ) | — | % | (626 | ) | — | % | 306 | (49 | )% | ||||||||||
Total other expense, net | (22,826 | ) | (16 | )% | (29,612 | ) | (20 | )% | 6,786 | (23 | )% | ||||||||||
Loss before income taxes | (16,998 | ) | (12 | )% | (25,871 | ) | (17 | )% | 8,873 | (34 | )% | ||||||||||
Income tax benefit | 4,576 | 3 | % | 7,765 | 4 | % | (3,189 | ) | (41 | )% | |||||||||||
Net loss | $ | (12,422 | ) | (9 | )% | $ | (18,106 | ) | (13 | )% | $ | 5,684 | (31 | )% |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||||||||||||||
Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers | ARPU | |||||||||||||||||||||||||
(Revenue in millions and subscribers in thousands) | |||||||||||||||||||||||||||||||||
Commercial services: | |||||||||||||||||||||||||||||||||
Voice and data | $ | 41.8 | 349 | $ | 40 | $ | 43.0 | 358 | $ | 41 | $ | (1.2 | ) | (9 | ) | $ | (1 | ) | |||||||||||||||
Broadband (3) | 8.5 | 11.1 | 258 | 7.4 | 10.2 | 245 | 1.1 | 0.9 | 13 | ||||||||||||||||||||||||
IoT data | 22.6 | 863 | 8.91 | 23.9 | 720 | 11.40 | (1.3 | ) | 143 | (2.49 | ) | ||||||||||||||||||||||
Hosted payload and other data | 15.5 | N/A | 12.0 | N/A | 3.5 | N/A | |||||||||||||||||||||||||||
Total commercial services | $ | 88.4 | 1,223 | $ | 86.3 | 1,088 | $ | 2.1 | 135 |
(1) | Billable subscriber numbers shown are at the end of the respective period. |
(2) | Average monthly revenue per unit, or ARPU, is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period. Billable subscriber and ARPU data is not applicable for hosted payload and other data service revenue items. |
(3) | Commercial broadband consists of Iridium OpenPort® and Iridium Certus® broadband services, which were previously reported in commercial voice and data revenue. Prior year periods have been conformed to this presentation. |
Three Months Ended June 30, | |||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||
Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers | ||||||||||||||||
(Revenue in millions and subscribers in thousands) | |||||||||||||||||||||
Government services | $ | 25.0 | 139 | $ | 24.5 | 125 | $ | 0.5 | 14 |
(1) | Billable subscriber numbers shown are at the end of the respective period. |
Three Months Ended June 30, | ||||||||||||
2020 | 2019 | Change | ||||||||||
(Revenue in millions) | ||||||||||||
Commercial engineering and support services | $ | 1.1 | $ | 0.8 | $ | 0.3 | ||||||
Government engineering and support services | 5.9 | 8.1 | (2.2 | ) | ||||||||
Total engineering and support services | $ | 7.0 | $ | 8.9 | $ | (1.9 | ) |
Six Months Ended June 30, | Change | ||||||||||||||||||||
2020 | % of Total Revenue | 2019 | % of Total Revenue | ||||||||||||||||||
($ in thousands) | Dollars | Percent | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Services | $ | 229,325 | 80 | % | $ | 217,748 | 79 | % | $ | 11,577 | 5 | % | |||||||||
Subscriber equipment | 42,078 | 15 | % | 44,428 | 16 | % | (2,350 | ) | (5 | )% | |||||||||||
Engineering and support services | 14,057 | 5 | % | 14,609 | 5 | % | (552 | ) | (4 | )% | |||||||||||
Total revenue | 285,460 | 100 | % | 276,785 | 100 | % | 8,675 | 3 | % | ||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of services (exclusive of depreciation | |||||||||||||||||||||
and amortization) | 45,112 | 16 | % | 48,128 | 17 | % | (3,016 | ) | (6 | )% | |||||||||||
Cost of subscriber equipment | 24,343 | 8 | % | 25,801 | 9 | % | (1,458 | ) | (6 | )% | |||||||||||
Research and development | 4,824 | 2 | % | 7,896 | 3 | % | (3,072 | ) | (39 | )% | |||||||||||
Selling, general and administrative | 41,925 | 15 | % | 44,810 | 16 | % | (2,885 | ) | (6 | )% | |||||||||||
Depreciation and amortization | 151,606 | 53 | % | 148,042 | 54 | % | 3,564 | 2 | % | ||||||||||||
Total operating expenses | 267,810 | 94 | % | 274,677 | 99 | % | (6,867 | ) | (3 | )% | |||||||||||
Operating income | 17,650 | 6 | % | 2,108 | 1 | % | 15,542 | 737 | % | ||||||||||||
Other expense: | |||||||||||||||||||||
Interest expense, net | (48,950 | ) | (17 | )% | (54,583 | ) | (20 | )% | 5,633 | (10 | )% | ||||||||||
Loss on extinguishment of debt | (30,209 | ) | (11 | )% | (207 | ) | — | % | (30,002 | ) | 14,494 | % | |||||||||
Other income (expense), net | 127 | — | % | (952 | ) | — | % | 1,079 | (113 | )% | |||||||||||
Total other expense, net | (79,032 | ) | (28 | )% | (55,742 | ) | (20 | )% | (23,290 | ) | 42 | % | |||||||||
Loss before income taxes | (61,382 | ) | (22 | )% | (53,634 | ) | (19 | )% | (7,748 | ) | 14 | % | |||||||||
Income tax benefit | 17,258 | 6 | % | 17,504 | 6 | % | (246 | ) | (1 | )% | |||||||||||
Net loss | $ | (44,124 | ) | (16 | )% | $ | (36,130 | ) | (13 | )% | $ | (7,994 | ) | 22 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||||||||||||||
Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers | ARPU | |||||||||||||||||||||||||
(Revenue in millions and subscribers in thousands) | |||||||||||||||||||||||||||||||||
Commercial services: | |||||||||||||||||||||||||||||||||
Voice and data | $ | 84.0 | 349 | $ | 40 | $ | 84.8 | 358 | $ | 39 | $ | (0.8 | ) | (9 | ) | $ | 1 | ||||||||||||||||
Broadband (3) | 17.2 | 11.1 | 262 | 14.2 | 10.2 | 238 | 3.0 | 0.9 | 24 | ||||||||||||||||||||||||
IoT data | 46.4 | 863 | 9.29 | 46.4 | 720 | 11.31 | — | 143 | (2.02 | ) | |||||||||||||||||||||||
Hosted payload and other data | 31.7 | N/A | 25.8 | N/A | 5.9 | N/A | |||||||||||||||||||||||||||
Total commercial services | $ | 179.3 | 1,223 | $ | 171.2 | 1,088 | $ | 8.1 | 135 |
(1) | Billable subscriber numbers shown are at the end of the respective period. |
(2) | Average monthly revenue per unit, or ARPU, is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period. Billable subscriber and ARPU data is not applicable for hosted payload and other data service revenue items. |
(3) | Commercial broadband consists of Iridium OpenPort and Iridium Certus broadband services, which were previously reported in commercial voice and data revenue. Prior year periods have been conformed to this presentation. |
Six Months Ended June 30, | |||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||
Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers | ||||||||||||||||
(Revenue in millions and subscribers in thousands) | |||||||||||||||||||||
Government services | $ | 50.0 | 139 | $ | 46.5 | 125 | $ | 3.5 | 14 |
(1) | Billable subscriber numbers shown are at the end of the respective period. |
Six Months Ended June 30, | ||||||||||||
2020 | 2019 | Change | ||||||||||
(Revenue in millions) | ||||||||||||
Commercial engineering and support services | $ | 2.1 | $ | 1.0 | $ | 1.1 | ||||||
Government engineering and support services | 11.9 | 13.6 | (1.7 | ) | ||||||||
Total engineering and support services | $ | 14.0 | $ | 14.6 | $ | (0.6 | ) |
Six Months Ended June 30, | ||||||||||||
2020 | 2019 | Change | ||||||||||
(in thousands) | ||||||||||||
Cash provided by operating activities | $ | 104,532 | $ | 64,088 | $ | 40,444 | ||||||
Cash used in investing activities | $ | (18,655 | ) | $ | (102,581 | ) | $ | 83,926 | ||||
Cash used in financing activities | $ | (189,083 | ) | $ | (57,441 | ) | $ | (131,642 | ) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. | CONTROLS AND PROCEDURES. |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
• | effects of the COVID-19 pandemic, including on international economies, supply chains and travel; |
• | difficulties in penetrating new markets due to established and entrenched competitors; |
• | difficulties in developing products and services that are tailored to the needs of local customers; |
• | lack of local acceptance or knowledge of our products and services; |
• | lack of recognition of our products and services; |
• | unavailability of, or difficulties in establishing, relationships with distributors; |
• | significant investments, including the development and deployment of dedicated gateways, as some countries require physical gateways within their jurisdiction to connect the traffic coming to and from their territory; |
• | instability of international economies and governments; |
• | changes in laws and policies affecting trade and investment in other jurisdictions, including the United Kingdom’s exit from the European Union; |
• | exposure to varying legal standards, including data privacy, security and intellectual property protection in other jurisdictions; |
• | difficulties in obtaining required regulatory authorizations; |
• | difficulties in enforcing legal rights in other jurisdictions; |
• | local domestic ownership requirements; |
• | requirements that operational activities be performed in-country; |
• | changing and conflicting national and local regulatory requirements; |
• | foreign currency exchange rates and exchange controls; and |
• | ongoing compliance with the U.S. Foreign Corrupt Practices Act, U.S. export controls, anti-money laundering and trade sanction laws, and similar anti-corruption and international trade laws in other countries. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | OTHER INFORMATION. |
ITEM 6. | EXHIBITS. |
Exhibit | Description | |
31.1 | ||
31.2 | ||
32.1* | ||
101 | The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission on July 28, 2020, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019; (ii) Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2020 and 2019; (iii) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019; (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019; and (iv) Notes to Condensed Consolidated Financial Statements. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
** | Denotes management contract or compensatory plan or arrangement. |
IRIDIUM COMMUNICATIONS INC. | ||
By: | /s/ Thomas J. Fitzpatrick | |
Thomas J. Fitzpatrick | ||
Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant) |
1. | I have reviewed this quarterly report on Form 10-Q of Iridium Communications Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 28, 2020 | /s/ Matthew J. Desch |
Matthew J. Desch | |
Chief Executive Officer (principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Iridium Communications Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 28, 2020 | /s/ Thomas J. Fitzpatrick |
Thomas J. Fitzpatrick | |
Chief Financial Officer (principal financial officer) |
1. | The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition of the Company at the end of the period covered by the Quarterly Report and results of operations of the Company for the periods covered in the financial statements in the Quarterly Report. |
/s/ Matthew J. Desch | /s/ Thomas J. Fitzpatrick | |
Matthew J. Desch | Thomas J. Fitzpatrick | |
Chief Executive Officer | Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 2,000,000.0 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 132,526,000 | 131,632,000 |
Common stock, shares outstanding (in shares) | 132,526,000 | 131,632,000 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 500,000 | 500,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Basis of Presentation and Principles of Consolidation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Iridium Communications Inc. (the “Company”) has prepared its condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying condensed consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned subsidiaries, and (iii) all less than wholly owned subsidiaries that the Company controls. All material intercompany transactions and balances have been eliminated. In the opinion of management, the condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019, as filed with the SEC on February 25, 2020.
|
Significant Accounting Policies |
6 Months Ended | ||||||||||||
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Jun. 30, 2020 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies | Significant Accounting Policies Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. Adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements and related disclosures and no cumulative adjustment was recorded. Recent Accounting Developments Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. The Company intends to apply the new guidance effective January 1, 2021, as required. The Company is currently evaluating the effect ASU 2019-12 may have on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments apply only to contracts and hedging relationships that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The amendments are elective and are effective upon issuance through December 31, 2022. The Company is currently determining the impacts of reference rate reform and the effects ASU 2020-04 may have on its consolidated financial statements and related disclosures. Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers:
The fair value estimates are based upon certain market assumptions and information available to the Company. The carrying value of the following financial instruments approximated their fair values as of June 30, 2020 and December 31, 2019: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network (“TPN”) facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. Derivative Financial Instruments The Company uses interest rate swap agreements to manage its exposures to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the balance sheet within other current and other long-term liabilities. The Company’s derivatives are designated as cash flow hedges, with the effective portion of the changes in fair value of the derivatives recorded in accumulated other comprehensive loss within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of cash flow hedges would be recorded in current earnings. Within the consolidated statement of operations and comprehensive income, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the company’s consolidated statements of cash flows, which is the same category as the items being hedged. See Note 6 for further information.
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Cash and Cash Equivalents, Restricted Cash and Marketable Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash and Cash Equivalents The following table summarizes the Company’s cash and cash equivalents:
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Leases Leases |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Leases [Text Block] | Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon LLC (“Aireon”) (see Note 11) and L3Harris Technologies, Inc. (“L3Harris”) for space on the Company’s upgraded satellites. These agreements provide for a fee that will be recognized over the life of the satellites, currently expected to be approximately 12.5 years. Lease income related to these agreements was $5.3 million and $5.4 million for the three months ended June 30, 2020 and 2019, respectively, and $10.7 million and $10.9 million during the six months ended June 30, 2020 and 2019, respectively. Lease income is recorded as hosted payload and other data service revenue within service revenue on the Company’s condensed consolidated statements of operations and comprehensive loss. Both Aireon and L3Harris have made payments pursuant to their hosting agreements and the Company expects they will continue to do so. Future income with respect to the Company’s operating leases in which it is the lessor existing at June 30, 2020, exclusive of the $10.7 million recognized during the six months ended June 30, 2020, by year and in the aggregate, is as follows:
|
Debt |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan and Revolving Facility On November 4, 2019, pursuant to a new loan agreement (the “Credit Agreement”), the Company entered into a $1,450.0 million term loan with various lenders and Deutsche Bank AG New York Branch as the Administrative Agent and the Collateral Agent (the “Term Loan”) and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Company used the proceeds of the Term Loan, along with its debt service reserve account and cash on hand, to prepay all of the indebtedness outstanding under the loan facility with Bpifrance Assurance Export S.A.S. (the “Credit Facility”) as well as related expenses. The Term Loan was issued at a price equal to 99.5% of its face value, bears interest at an annual rate of LIBOR plus 3.75%, with a 1.0% LIBOR floor, and matures in November 2026. Beginning on June 30, 2020, principal is payable quarterly at a rate of one percent of the original loan amount per annum, with the remaining principal due upon maturity. Interest is payable monthly on the last business day of the month. Borrowings under the Revolving Facility, if any, bear interest at the same rate (but without a LIBOR floor) if and as drawn, with no original issue discount, a commitment fee of 0.5% per year on the undrawn amount, and mature in November 2024. On February 7, 2020, the Company closed on an additional $200.0 million under its Term Loan. On February 13, 2020, the Company used these proceeds, together with cash on hand, to prepay and retire all of the indebtedness outstanding under the senior unsecured notes (the “Notes”), including premiums for early prepayment. The additional amount is fungible with the original $1,450.0 million, having the same maturity date, interest rate and other terms, but was issued at a 1.0% premium to face value. To prepay the Notes, the Company paid a call price equal to the present value at the redemption rate of (i) 105.125% of the $360.0 million principal amount of the Notes plus (ii) all interest due through the first call date in April 2020, representing a total call premium of $23.5 million, plus all accrued and unpaid interest to the redemption date. As of June 30, 2020, the Company reported an aggregate of $1,645.9 million in borrowings under the Term Loan, before $25.8 million of net unamortized deferred financing costs, for a net principal balance of $1,620.1 million in borrowings in the accompanying condensed consolidated balance sheet. As of June 30, 2020, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the Company’s $1,645.9 million in borrowings under the Term Loan was $1,613.0 million. The Company had not borrowed under the Revolving Facility as of June 30, 2020. The Credit Agreement restricts the Company’s ability to incur liens, engage in mergers or asset sales, pay dividends, repay subordinated indebtedness, incur indebtedness, make investments and loans, and engage in other transactions as specified in the Credit Agreement, and also contains a mandatory prepayment mechanism with respect to a portion of the Company’s excess cash flow (as defined in the Credit Agreement). The Credit Agreement provides for specified exceptions, baskets measured as a percentage of trailing twelve months of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and unlimited exceptions in the case of incurring indebtedness and liens and making investments, dividend payments, and payments of subordinated indebtedness, as well as a phase-out of the mandatory excess cash flow prepayments, based on achievement and maintenance of specified leverage ratios. The Credit Agreement permits repayment, prepayment, and repricing transactions. The Credit Agreement contains no financial maintenance covenants with respect to the Term Loan. With respect to the Revolving Facility, the Credit Agreement requires the Company to maintain a consolidated first lien net leverage ratio (as defined in the Credit Agreement) of no greater than 6.25 to 1 if more than 35% of the Revolving Facility has been drawn. The Credit Agreement contains other customary representations and warranties, affirmative and negative covenants, and events of default. Senior Unsecured Notes As of June 30, 2020, the Company had fully paid down and retired the total gross outstanding principal balance of the Notes, as discussed above. As of December 31, 2019, the Company reported an aggregate of $360.0 million in borrowings under the Notes, before $7.0 million of net unamortized deferred financing costs, for a net principal balance of $353.0 million in borrowings in the accompanying condensed consolidated balance sheet. Interest on Debt Total interest incurred was $23.5 million and $35.1 million during the three months ended June 30, 2020 and 2019, respectively, and $51.4 million and $71.5 million during the six months ended June 30, 2020 and 2019, respectively. Interest incurred includes amortization of deferred financing fees of $0.9 million and $5.8 million for the three months ended June 30, 2020 and 2019, respectively, and $1.8 million and $12.2 million for the six months ended June 30, 2020 and 2019, respectively. Interest capitalized was $0.8 million and $3.7 million during the three months ended June 30, 2020 and 2019, respectively, and $1.5 million and $11.3 million, respectively, during the six months ended June 30, 2020 and 2019. Accrued interest as of June 30, 2020 and December 31, 2019 was $0.2 million and $7.8 million, respectively.
|
Derivatives Derivatives |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments The Company is exposed to interest rate fluctuations related to its Term Loan. The Company has reduced its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of interest rate swap contracts which result in recognizing a fixed interest rate for the portion of the Company’s Term Loan. This will reduce the negative impact of increases in the variable rate over the term of the contracts. These financial instruments are not used for trading or other speculative purposes. Historically, the Company has not incurred, and does not expect to incur in the future, any losses as a result of counterparty default. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. The Company formally assesses, both at the hedge’s inception and on an ongoing quarterly basis, whether the designated derivative instruments are highly effective in offsetting changes in the cash flows of the hedged items. When the hedging instrument is sold, expires, is terminated or is exercised, or no longer qualifies for hedge accounting, or is no longer probable, hedge accounting is discontinued prospectively. Interest Rate Swaps On November 27, 2019, the Company executed a long-term interest rate swap (“Swap”) effective through November 2021 to mitigate variability in forecasted interest payments on a portion of the Company’s borrowings under its Term Loan. On the last business day of each month, the Company receives variable interest payments based on one-month LIBOR from the counterparty. The Company also entered into an interest rate swaption agreement (“Swaption”) that, if executed on November 22, 2021, would extend the term of the Swap through November 2026. The Company pays a fixed annual rate of 0.50% for the Swaption and a fixed rate of 1.565% on the Swap. Both the Swap and the Swaption derivative instruments carry a notional amount of $1,000.0 million as of June 30, 2020. The Company has designated both the Swap and Swaption as qualifying hedging instruments and accounts for these derivatives as cash flow hedges. At inception, the Swap and Swaption were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in accumulated other comprehensive income (loss) and reclassified into earnings during the period in which the hedged transaction affects earnings. Over the next 12 months, the Company expects any gains or losses for cash flow hedges reclassified from accumulated other comprehensive income (loss) into earnings to have an immaterial impact on the Company’s condensed consolidated financial statements. Fair Value of Derivative Instruments As of June 30, 2020, the Company had a current liability balance for the fair value of the Swap in the amount of $8.0 million, recorded in other current liabilities. As of December 31, 2019, the Company had a long-term asset balance for the fair value of the Swap in the amount of $0.8 million, recorded in other long-term assets. As of June 30, 2020 and December 31, 2019, the Company had a long-term liability balance for the fair value of the Swaption in the amount of $6.7 million and $0.9 million, respectively, recorded in other long-term liabilities. During the three and six months ended June 30, 2020, the Company incurred $2.7 million and $3.7 million, respectively, in net interest expense for the Swap and the Swaption, collectively. The Company did not hold any cash flow hedges during the comparable prior year periods. Gains and losses resulting from fair value adjustments to the Swap and Swaption are recorded within accumulated other comprehensive loss within the Company’s condensed consolidated balance sheets and reclassified to interest expense on the dates that interest payments become due. Cash flows related to the Swap are included in cash flows from operating activities on the condensed consolidated statements of cash flows. The amount of unrealized loss related to the Swap and Swaption that was recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets, was $10.8 million as of June 30, 2020, net of a $3.8 million tax impact. There were no gains or losses related to derivative financial instruments during the comparable prior year period.
|
Stock-Based Compensation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In May 2019, the Company’s stockholders approved the amendment and restatement of the Company’s 2015 Equity Incentive Plan (as so amended and restated, the “Amended 2015 Plan”), primarily to increase the number of shares available under the plan. The Company registered with the SEC an additional 2,542,664 shares of common stock made available for issuance pursuant to the Amended 2015 Plan, bringing the total to 30,944,912 shares registered. As of June 30, 2020, the remaining aggregate number of shares of the Company’s common stock available for future grants under the Amended 2015 plan was 11,791,808. The Amended 2015 Plan provides for the grant of stock-based awards, including nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights and other equity securities to consultants and non-employee directors of the Company and its affiliated entities. The number of shares of common stock available for issuance under the Amended 2015 Plan is reduced by (i) one share for each share of common stock issued pursuant to an appreciation award, such as a stock option or stock appreciation right with an exercise or strike price of at least 100% of the fair market value of the underlying common stock on the date of grant, and (ii) 1.8 shares for each share of common stock issued pursuant to any stock award that is not an appreciation award, also known as a “full value award.” The Amended 2015 Plan allows the Company to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of its employees, directors and consultants, and to provide long-term incentives that align the interests of its employees, directors and consultants with the interests of the Company’s stockholders. The Company accounts for stock-based compensation at fair value. Stock Option Awards The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The stock option awards granted to employees generally (i) have a term of ten years, (ii) vest over four years with 25% vesting after the first year of service and the remainder vesting ratably on a quarterly basis thereafter, (iii) are contingent upon employment on the vesting date, and (iv) have an exercise price equal to the fair market value of the underlying shares at the date of grant. The Company did not grant any stock options during the six-month period ended June 30, 2020. During the six months ended June 30, 2019, the Company granted approximately 139,000 stock options to its employees, with an estimated aggregate grant date fair value of $1.3 million. Restricted Stock Units The RSUs granted to employees for service generally vest over four years, with 25% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The Company’s RSUs are generally classified as equity awards because the RSUs will be paid in the Company’s common stock upon vesting. The related compensation expense is recognized over the service period and is based on the grant date fair value of the Company’s common stock and the number of shares expected to vest. The fair value of the awards is not remeasured at the end of each reporting period. The awards do not carry voting rights until they are vested and released in accordance with the terms of the award. Service-Based RSUs The majority of the annual compensation the Company provides to members of its board of directors is paid in the form of RSUs. In addition, certain members of the Company’s board of directors elect to receive the remainder of their annual compensation, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 58,000 and 76,000 service-based RSUs were granted to the Company’s directors as a result of these payments and elections during the six months ended June 30, 2020 and 2019, respectively, with an estimated grant date fair value of $1.4 million for each period. During the six months ended June 30, 2020 and 2019, the Company granted approximately 683,000 and 651,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $18.3 million and $15.0 million, respectively. During the six months ended June 30, 2020 and 2019, the Company granted approximately 10,000 and 11,000 RSUs to non-employee consultants that are generally subject to service-based vesting. The RSUs will vest 50% on the first anniversary of the grant date, and the remaining 50% will vest quarterly thereafter through the second anniversary of the grant date. The estimated aggregate grant date fair value of the RSUs granted to non-employee consultants during the six months ended June 30, 2020 and 2019 was $0.2 million for each period. Performance-Based RSUs In March 2020 and 2019, the Company granted approximately 115,000 and 125,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $3.1 million and $2.9 million, respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of defined performance goals over the respective fiscal year. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. Management believes it is probable that substantially all of the 2020 Bonus RSUs will vest. The level of achievement, if any, of performance goals will be determined by the compensation committee of the Company’s board of directors and, if such goals are achieved, the 2020 Bonus RSUs will vest, subject to continued employment, in March 2021. Substantially all of the 2019 Bonus RSUs vested in March 2020 upon the determination of the level of achievement of the performance goals. Additionally, in March 2020 and 2019, the Company granted approximately 144,000 and 96,000 long-term, performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair value of the Executive RSUs was $3.9 million for the 2020 grants and $2.2 million for the 2019 grants. Vesting of the Executive RSUs is dependent upon the Company’s achievement of specified performance goals over a two-year period (fiscal years 2020 and 2021 for the Executive RSUs granted in 2020 and fiscal years 2019 and 2020 for the Executive RSUs granted in 2019) and further subject to additional time-based vesting. Management believes it is probable that the Executive RSUs will vest at least in part. The vesting of Executive RSUs will ultimately range from 0% to 150% of the number of shares underlying the Executive RSUs granted based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the number of Executive RSUs earned based on performance will vest on the second anniversary of the grant date, and the remaining 50% will vest on the third anniversary of the grant date, in each case, subject to the executive’s continued service as of the vesting date. During March 2020, the Company awarded approximately 20,000 additional shares underlying performance-based RSUs to the Company’s executives for over-achievement of performance goal targets during 2018 and 2019 related to the Executive RSUs granted in 2018.
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Equity Transactions |
6 Months Ended |
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Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity Transactions | Equity Transactions Preferred Stock The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. The Company previously issued 1.5 million shares of preferred stock, and the remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of June 30, 2020. As of June 30, 2020, there were no outstanding shares of preferred stock, as all preferred stock was converted into common stock according to its terms in prior periods. Series B Cumulative Perpetual Convertible Preferred Stock In May 2014, the Company issued 0.5 million shares of its 6.75% Series B Cumulative Perpetual Convertible Preferred Stock (the “Series B Preferred Stock”) in an underwritten public offering. Holders of Series B Preferred Stock were entitled to receive cumulative cash dividends at a rate of 6.75% per annum of the $250 liquidation preference per share (equivalent to an annual rate of $16.875 per share). Dividends were payable quarterly in arrears on each March 15, June 15, September 15 and December 15. |
Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The following table summarizes the Company’s services revenue:
The following table summarizes the Company’s engineering and support services revenue:
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $11.1 million and $10.8 million during the three months ended June 30, 2020 and 2019, respectively, and $23.5 million and $25.3 million during the six months ended June 30, 2020 and 2019, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated prepaid usage period. The contract assets not separately disclosed are as follows:
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Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Loss Per Share The Company calculates basic net loss per share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In periods of net income, diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. Potentially dilutive common shares include (i) common stock issuable upon exercise of outstanding stock options, and (ii) contingently issuable RSUs that are convertible into shares of common stock upon achievement of certain service and performance requirements. The effect of potentially dilutive common shares is computed using the treasury stock method. The computations of basic and diluted net loss per share for the three and six months ended June 30, 2020 and 2019 are as follows:
Due to the Company’s net loss position for the three and six months ended June 30, 2020 and 2019, all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. The unvested shares of restricted common stock, as well as the anti-dilutive effects of stock options and RSUs outstanding, for the three and six months ended June 30, 2020 and 2019, are as follows:
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Aireon LLC and Aireon Holdings LLC The Company’s satellite constellation hosts the Aireon® system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast (“ADS-B”) receivers. The Company formed Aireon in 2011, with subsequent investments from the air navigation service providers (“ANSPs”) of Canada, Italy, Denmark, Ireland and the United Kingdom, to develop and market this service. In December 2018, in connection with Aireon’s entry into a debt facility, the Company and the other Aireon investors contributed their respective interests in Aireon into a new holding company, Aireon Holdings LLC, and entered into an Amended and Restated Aireon Holdings LLC Agreement (the “Aireon Holdings LLC Agreement”). Aireon Holdings LLC holds 100% of the membership interests in Aireon LLC, which remains the operating entity. At June 30, 2020, the Company had a fully diluted ownership stake in Aireon Holdings LLC of approximately 35.7%, subject to certain redemption provisions contained in the Aireon Holdings LLC Agreement. Aireon has contracted to pay the Company a fee to host the ADS-B receivers on its constellation, as well as fees for power and data services in connection with the delivery of the air traffic surveillance data. Pursuant to an agreement with Aireon (“the Hosting Agreement”), Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $54.1 million had been paid as of June 30, 2020, as well as power fees of approximately $3.7 million per year. Pursuant to a separate data transmission services agreement (the “Data Services Agreement”), Aireon also pays the Company monthly data service fees on a per-satellite basis totaling $19.8 million per year for the delivery of the air traffic surveillance data through the Iridium® network, as well as specified services relating to Aireon’s hosted payload operations center. The Aireon ADS-B receivers were activated on an individual basis as the satellite on which the receiver is hosted began carrying traffic. Pursuant to ASU 2016-02, the Company considers the Hosting Agreement as an operating lease. The Company recognized $4.0 million of hosting fee revenue for each of the three-month periods ended June 30, 2020 and 2019, under this agreement, and $8.0 million and $7.9 million for the six months ended June 30, 2020 and 2019, respectively. For power and data service fees, the Company recognized revenue from Aireon of $5.9 million and $3.2 million for the three months ended June 30, 2020 and 2019, respectively, and $12.1 million and $6.2 million for the six months ended June 30, 2020 and 2019, respectively. |
Significant Accounting Policies (Policies) |
6 Months Ended | ||||||||||||
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Jun. 30, 2020 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. Adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements and related disclosures and no cumulative adjustment was recorded. Recent Accounting Developments Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. The Company intends to apply the new guidance effective January 1, 2021, as required. The Company is currently evaluating the effect ASU 2019-12 may have on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments apply only to contracts and hedging relationships that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The amendments are elective and are effective upon issuance through December 31, 2022. The Company is currently determining the impacts of reference rate reform and the effects ASU 2020-04 may have on its consolidated financial statements and related disclosures. |
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Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers:
The fair value estimates are based upon certain market assumptions and information available to the Company. The carrying value of the following financial instruments approximated their fair values as of June 30, 2020 and December 31, 2019: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2.
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Lessee, Leases [Policy Text Block] | Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network (“TPN”) facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts.
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Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company uses interest rate swap agreements to manage its exposures to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the balance sheet within other current and other long-term liabilities. The Company’s derivatives are designated as cash flow hedges, with the effective portion of the changes in fair value of the derivatives recorded in accumulated other comprehensive loss within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of cash flow hedges would be recorded in current earnings. Within the consolidated statement of operations and comprehensive income, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the company’s consolidated statements of cash flows, which is the same category as the items being hedged. See Note 6 for further information.
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Revenue Revenue (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Revenue [Abstract] | |
Revenue [Policy Text Block] | The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $11.1 million and $10.8 million during the three months ended June 30, 2020 and 2019, respectively, and $23.5 million and $25.3 million during the six months ended June 30, 2020 and 2019, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated prepaid usage period. |
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Cash and Cash Equivalents | The following table summarizes the Company’s cash and cash equivalents:
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Leases Leases (Tables) $ in Thousands |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Lease Income [Table Text Block] | Future income with respect to the Company’s operating leases in which it is the lessor existing at June 30, 2020, exclusive of the $10.7 million recognized during the six months ended June 30, 2020, by year and in the aggregate, is as follows:
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Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year | $ 10,722 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payment to be Received, Year Two | 21,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payment to be Received, Year Three | 21,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payment to be Received, Year Four | 21,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payment to be Received, Year Five | 21,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payment to be Received, after Year Five | 120,353 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Lease, Payments to be Received | $ 216,855 |
Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's service revenue | The following table summarizes the Company’s services revenue:
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Summary of Company's Engineering and Support Services Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue:
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Schedule of recognized contract costs | The contract assets not separately disclosed are as follows:
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Net Income (Loss) Per Share (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The unvested shares of restricted common stock, as well as the anti-dilutive effects of stock options and RSUs outstanding, for the three and six months ended June 30, 2020 and 2019, are as follows:
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Computations of Basic and Diluted Net Income Per Share | The computations of basic and diluted net loss per share for the three and six months ended June 30, 2020 and 2019 are as follows:
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Cash and Cash Equivalents, Restricted Cash and Marketable Securities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Cash and cash equivalents: | ||
Cash | $ 19,034 | $ 13,943 |
Total cash and cash equivalents | 119,115 | 223,561 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents: | ||
Money market funds | $ 100,081 | $ 209,618 |
Leases Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Lessor, Lease, Description [Line Items] | ||||
Operating Lease, Lease Income | $ 5.3 | $ 5.4 | $ 10.7 | $ 10.9 |
Equipment Leased to Other Party [Member] | ||||
Lessor, Lease, Description [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 12 years 6 months |
Derivatives Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 1,000,000 | $ 1,000,000 | |||
Derivative, Gain (Loss) on Derivative, Net | $ 2,700 | 3,700 | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ 0 | (10,802) | $ 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 3,800 | ||||
Interest Rate Swaption [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fixed Interest Rate | 0.50% | 0.50% | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 6,700 | $ 6,700 | $ 900 | ||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fixed Interest Rate | 1.565% | 1.565% | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 8,000 | $ 8,000 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 800 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Revenue from Contract with Customer [Abstract] | ||||
Liability, revenue recognized | $ 11.1 | $ 10.8 | $ 23.5 | $ 25.3 |
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 926 | $ 1,116 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 3,078 | $ 3,231 |
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