Financial Instruments, Derivative Instruments and Hedging (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Unhedged Foreign Currency Transactions

As of September 30, 2012, SS/L had the following amounts denominated in Japanese yen and euros (which have been translated into U.S. dollars based on the September 30, 2012 exchange rates) that were unhedged (in thousands):

	Foreign Currency		U.S.$
Future revenues — Japanese yen	¥	67,023	$	860
Future expenditures — Japanese yen	¥	2,887,087	$	37,040
Future revenues — euros	€	17,113	$	22,007
Future expenditures — euros	€	1,717	$	2,208

Schedule of Maturity of Foreign Currency Derivative Contracts

The maturity of foreign currency exchange contracts held as of September 30, 2012 is consistent with the contractual or expected timing of the transactions being hedged, principally receipt of customer payments under long-term contracts. These foreign exchange contracts mature as follows (in thousands):

	To Buy
Maturity	Euro Amount			Hedge Contract Rate			At Market Rate
2012	€	431		$	553		$	552
		431			553			552
Discontinued operations		(431	)		(553	)		(552	)
Continuing operations	€	—		$	—		$	—
	To Sell
Maturity	Euro Amount			Hedge Contract Rate			At Market Rate
2012	€	4,219		$	5,239		$	5,425
2013		27,000			32,894			34,751
		31,219			38,133			40,176
Discontinued operations		(31,219	)		(38,133	)		(40,176	)
Continuing operations	€	—		$	—		$	—

Fair Values and the Location of the Company's Derivative Financial Instruments in the Consolidated Balance Sheet

The following summarizes the fair values and location in our condensed consolidated balance sheet of all derivatives held by the Company as of September 30, 2012 (in thousands):

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location		Fair Value			Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts
						Other current liabilities	$	1,992
								1,992
Derivatives not designated as hedging instruments
Foreign exchange contracts
		Other current assets	$	1		Other current liabilities		51
Total derivatives				1				2,043
Derivatives classified as held for sale				(1	)			(2,043	)
Derivatives, as reported			$	—			$	—

The following summarizes the fair values and location in our consolidated balance sheet of all derivatives held by the Company as of December 31, 2011 (in thousands):

	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts
				Other current liabilities	$	2,381
				Other liabilities		2,185
						4,566
Derivatives not designated as hedging instruments
Foreign exchange contracts
	Other current assets	$	1
				Other liabilities		56
Total derivatives		$	1		$	4,622

Summary of Gains (Losses) Recognized in Operations and Accumulated Other Comprehensive Income (Loss) for Derivatives

The following summarizes the gains (losses) recognized in the consolidated statements of operations as income from discontinued operations and in accumulated other comprehensive loss for all derivatives in cash flow hedging relationships for the three and nine months ended September 30, 2012 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Loss Recognized in  OCI on Derivatives (Effective Portion)			Loss Reclassified from Accumulated OCI into Income (Effective Portion)				Gain on Derivative Ineffectiveness and Amounts Excluded from Effectiveness Testing
				Location	Amount			Location	Amount
Three months ended September 30, 2012:
Foreign exchange contracts	$	(213	)	Revenue	$	(1,134	)	Revenue	$	28
								Interest income	$	—
Nine months ended September 30, 2012:
Foreign exchange contracts	$	(498	)	Revenue	$	(6,290	)	Revenue	$	208
								Interest income	$	—

The following summarizes the gains (losses) recognized in the consolidated statements of operations for all cash flow derivatives not designated as hedging instruments for the three and nine months ended September 30, 2012 (in thousands):

Cash Flow Derivatives Not Designated as Hedging Instruments	Gain (Loss) Recognized in Income on Derivatives
	Location	Amount
Three months ended September 30, 2012:
Foreign exchange contracts	Revenue	$	(15	)
	Other income		(141	)
Total gain			(156	)
Loss included in discontinued operations			15
Gain as reported		$	(141	)
Nine months ended September 30, 2012:
Foreign exchange contracts	Revenue	$	(3	)
	Other income		1,316
Total gain			1,313
Loss included in discontinued operations			3
Gain as reported		$	1,316

The following summarizes the gains (losses) recognized in the consolidated statements of operations as income from discontinued operations and in accumulated other comprehensive loss for all derivatives for the three and nine months ended September 30, 2011, (in thousands):

Derivatives in Cash Flow Hedging Relationships	Gain (Loss)  Recognized in OCI on Derivatives (Effective Portion)			Loss Reclassified from Accumulated OCI into Income (Effective Portion)				Loss on Derivative Ineffectiveness and Amounts Excluded from Effectiveness Testing
				Location	Amount			Location	Amount
Three months ended September 30, 2011
Foreign exchange contracts	$	4,988		Revenue	$	(6,785	)	Revenue	$	(1,140	)
								Interest income	$	0
Nine months ended September 30, 2011
Foreign exchange contracts	$	(10,553	)	Revenue	$	(12,966	)	Revenue	$	(66	)
								Interest income	$	(1	)

Cash Flow Derivatives Not Designated as Hedging Instruments	Loss Recognized in  Income on Derivatives
	Location		Amount
Three months ended September 30, 2011
Foreign exchange contracts		Revenue	$	2,592
Nine months ended September 30, 2011
Foreign exchange contracts		Revenue	$	1,397