Investments in Affiliates (Tables)

9 Months Ended

Sep. 30, 2012

Effect of Affiliate Transactions on Operating Statement

Investments in affiliates consist of (in thousands):

	September 30, 2012		December 31, 2011
Telesat Holdings Inc.	$	—	$	377,244
XTAR, LLC		63,913		68,991
	$	63,913	$	446,235

Equity in net (loss) income of affiliates

Equity in net (loss) income of affiliates consists of (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Telesat Holdings Inc.	$	43,654		$	(75,044	)	$	42,179		$	(963	)
XTAR, LLC		(2,068	)		(2,195	)		(5,077	)		(6,048	)
Other		—			(23	)		—			(65	)
	$	41,586		$	(77,262	)	$	37,102		$	(7,076	)

Effect of Affiliate Transactions on Operating Statement

Income from discontinued operations in our condensed consolidated statements of operations reflects the effects of the following amounts related to SS/L’s transactions with our affiliates (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues	$	9,363		$	32,770		$	55,946		$	108,615
Elimination of Loral’s proportionate share of profits relating to affiliate transactions		(2,438	)		(4,136	)		(16,463	)		(11,329	)
Profits relating to affiliate transactions not eliminated		1,371			2,328			9,260			6,377

XTAR, LLC [Member]

Summary financial data, equity method investment

The following table presents summary financial data for XTAR as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Statement of Operations Data:
Revenues	$	7,613		$	8,553		$	22,285		$	25,880
Operating expenses		(8,239	)		(8,925	)		(24,842	)		(26,054	)
Depreciation and amortization		(2,345	)		(2,405	)		(7,095	)		(7,213	)
Operating loss		(2,971	)		(2,777	)		(9,652	)		(7,387	)
Net loss		(3,804	)		(3,903	)		(12,047	)		(10,763	)

	September 30, 2012		December 31, 2011
Balance Sheet Data:
Current assets	$	5,978	$	10,558
Total assets		76,358		88,033
Current liabilities		45,500		45,704
Total liabilities		54,986		54,614
Members’ equity		21,372		33,419

Telesat Holdings Inc [Member]

Summary financial data, equity method investment

The following table presents summary financial data for Telesat in accordance with U.S. GAAP as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Statement of Operations Data:
Revenues	$	220,361		$	204,403		$	616,236		$	617,264
Operating expenses		(50,372	)		(47,174	)		(186,319	)		(140,990	)
Depreciation, amortization and stock-based compensation		(65,291	)		(63,131	)		(186,788	)		(188,090	)
Loss on disposition of long lived asset		(53	)		(99	)		(129	)		(863	)
Operating income		104,645			93,999			243,000			287,321
Interest expense		(59,020	)		(56,339	)		(172,302	)		(167,024	)
Expense of refinancing		(270	)		—			(79,673	)		—
Foreign exchange gains (losses)		94,424			(267,443	)		100,736			(168,875	)
(Losses) gains on financial instruments		(40,900	)		125,605			(41,555	)		84,711
Other income		179			258			1,144			1,848
Income tax provision		(14,333	)		(5,952	)		(18,652	)		(30,835	)
Net income (loss)		84,725			(109,872	)		32,698			7,146

	September 30, 2012		December 31, 2011
Balance Sheet Data:
Current assets	$	237,948	$	351,802
Total assets		5,387,975		5,347,174
Current liabilities		270,900		289,351
Long-term debt, including current portion		3,324,726		2,817,857
Promissory note		145,156		—
Total liabilities		4,811,425		4,045,619
Redeemable preferred stock		—		138,485
Shareholders’ equity		576,550		1,163,070