Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental condensed consolidating statement of operations

Globalstar, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended March 31, 2019

(Unaudited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenue	$	21,937		$	9,582		$	15,129		$	(20,529	)	$	26,119
Subscriber equipment sales	302			3,486			1,501			(1,330		)	3,959
Total revenue	22,239			13,068			16,630			(21,859		)	30,078
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)	7,015			1,449			2,891			(1,502		)	9,853
Cost of subscriber equipment sales	223			3,066			1,188			(1,328		)	3,149
Marketing, general and administrative	7,124			1,301			22,210			(19,029		)	11,606
Depreciation, amortization and accretion	23,195			17			589			—			23,801
Total operating expenses	37,557			5,833			26,878			(21,859		)	48,409
Income (loss) from operations	(15,318		)	7,235			(10,248		)	—			(18,331		)
Other income (expense):
Interest income and expense, net of amounts capitalized	(12,864		)	(4		)	(2		)	—			(12,870		)
Derivative gain	57,008			—			—			—			57,008
Equity in subsidiary earnings (loss)	(2,933		)	(4,634		)	—			7,567			—
Other	(122		)	187			(73		)	(1		)	(9		)
Total other income	41,089			(4,451		)	(75		)	7,566			44,129
Income (loss) before income taxes	25,771			2,784			(10,323		)	7,566			25,798
Income tax expense	—			7			20			—			27
Net income (loss)	$	25,771		$	2,777		$	(10,343	)	$	7,566		$	25,771
Comprehensive income (loss)	$	25,771		$	2,777		$	(10,607	)	$	7,560		$	25,501

Globalstar, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended March 31, 2018

(Unaudited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenue	$	20,534		$	9,074		$	15,608		$	(19,206	)	$	26,010
Subscriber equipment sales	47			2,049			1,196			(553		)	2,739
Total revenue	20,581			11,123			16,804			(19,759		)	28,749
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)	6,257			1,390			2,868			(1,486		)	9,029
Cost of subscriber equipment sales	41			1,810			875			(554		)	2,172
Marketing, general and administrative	7,085			1,064			20,863			(17,737		)	11,275
Depreciation, amortization and accretion	19,044			96			91			—			19,231
Total operating expenses	32,427			4,360			24,697			(19,777		)	41,707
Income (loss) from operations	(11,846		)	6,763			(7,893		)	18			(12,958		)
Other income (expense):
Loss on extinguishment of debt	—			—			—			—			—
Interest income and expense, net of amounts capitalized	(7,386		)	(2		)	14			21			(7,353		)
Derivative gain	108,944			—			—			—			108,944
Equity in subsidiary earnings (loss)	(1,320		)	(3,387		)	—			4,707			—
Other	(462		)	(176		)	(8		)	(16		)	(662		)
Total other income	99,776			(3,565		)	6			4,712			100,929
Income (loss) before income taxes	87,930			3,198			(7,887		)	4,730			87,971
Income tax expense	—			6			35			—			41
Net income (loss)	$	87,930		$	3,192		$	(7,922	)	$	4,730		$	87,930
Comprehensive income (loss)	$	87,930		$	3,192		$	(8,246	)	$	4,724		$	87,600

Supplemental condensed consolidating balance sheet

Globalstar, Inc.

Condensed Consolidating Balance Sheet

As of March 31, 2019

(Unaudited)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	9,860		$	281	$	3,632		$	—		$	13,773
Restricted cash	60,574			—		—			—			60,574
Accounts receivable, net of allowance	7,931			7,429		4,677			—			20,037
Intercompany receivables	1,051,185			823,295		68,438			(1,942,918		)	—
Inventory	7,290			5,460		1,665			—			14,415
Prepaid expenses and other current assets	10,603			9,111		4,692			—			24,406
Total current assets	1,147,443			845,576		83,104			(1,942,918		)	133,205
Property and equipment, net	833,129			876		30,191			4			864,200
Operating lease right of use assets, net	12,436			236		1,915			—			14,587
Intercompany notes receivable	5,674			—		—			(5,674		)	—
Investment in subsidiaries	(257,501		)	45,744		50,696			161,061			—
Intangible and other assets, net	29,104			277		3,547			(12		)	32,916
Total assets	$	1,770,285		$	892,709	$	169,453		$	(1,787,539	)	$	1,044,908
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	96,249		$	—	$	—		$	—		$	96,249
Accounts payable	2,253			2,851		1,102			—			6,206
Accrued expenses	19,453			7,315		7,825			—			34,593
Intercompany payables	778,914			827,358		336,587			(1,942,859		)	—
Payables to affiliates	218			—		—			—			218
Derivative liabilities	542			—		—			—			542
Deferred revenue	1,650			22,679		7,156			—			31,485
Total current liabilities	899,279			860,203		352,670			(1,942,859		)	169,293
Long-term debt, less current portion	374,039			—		—			—			374,039
Operating lease liabilities	12,035			201		1,335			—			13,571
Employee benefit obligations	4,541			—		—			—			4,541
Intercompany notes payable	—			—		5,674			(5,674		)	—
Derivative liabilities	89,315			—		—			—			89,315
Deferred revenue	5,252			243		18			—			5,513
Other non-current liabilities	449			322		2,490			—			3,261
Total non-current liabilities	485,631			766		9,517			(5,674		)	490,240
Stockholders’ equity (deficit)	385,375			31,740		(192,734		)	160,994			385,375
Total liabilities and stockholders’ equity	$	1,770,285		$	892,709	$	169,453		$	(1,787,539	)	$	1,044,908

Globalstar, Inc.

Condensed Consolidating Balance Sheet

As of December 31, 2018

(Unaudited)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	11,312		$	2,126	$	1,774		$	—		$	15,212
Restricted cash	60,278			—		—			—			60,278
Accounts receivable, net of allowance	7,138			7,826		4,363			—			19,327
Intercompany receivables	1,047,320			824,920		105,819			(1,978,059		)	—
Inventory	6,747			6,149		1,378			—			14,274
Prepaid expenses and other current assets	7,765			2,987		2,658			—			13,410
Total current assets	1,140,560			844,008		115,992			(1,978,059		)	122,501
Property and equipment, net	850,790			1,242		30,658			5			882,695
Intercompany notes receivable	5,600			—		6,436			(12,036		)	—
Investment in subsidiaries	(255,187		)	42,481		50,220			162,486			—
Intangible and other assets, net	36,275			324		3,698			(11		)	40,286
Total assets	$	1,778,038		$	888,055	$	207,004		$	(1,827,615	)	$	1,045,482
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	96,249		$	—	$	—		$	—		$	96,249
Accounts payable	2,420			3,378		1,197			—			6,995
Accrued expenses	8,904			6,747		7,434			—			23,085
Intercompany payables	778,340			832,284		367,396			(1,978,020		)	—
Payables to affiliates	656			—		—			—			656
Derivative liabilities	757			—		—			—			757
Deferred revenue	1,699			23,943		6,296			—			31,938
Total current liabilities	889,025			866,352		382,323			(1,978,020		)	159,680
Long-term debt, less current portion	367,202			—		—			—			367,202
Employee benefit obligations	4,489			—		—			—			4,489
Intercompany notes payable	6,436			—		5,600			(12,036		)	—
Derivative liabilities	146,108			—		—			—			146,108
Deferred revenue	5,339			335		18			—			5,692
Other non-current liabilities	494			323		2,549			—			3,366
Total non-current liabilities	530,068			658		8,167			(12,036		)	526,857
Stockholders’ equity (deficit)	358,945			21,045		(183,486		)	162,441			358,945
Total liabilities and stockholders’ equity	$	1,778,038		$	888,055	$	207,004		$	(1,827,615	)	$	1,045,482

Supplemental condensed consolidating statement of cash flows

Globalstar, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2019

(Unaudited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash flows provided by (used in) operating activities	$	1,145		$	(1,747	)	$	1,927		$	—	$	1,325
Cash flows used in investing activities:
Second-generation network costs (including interest)	(779		)	—			(14		)	—		(793		)
Property and equipment additions	(901		)	(98		)	(14		)	—		(1,013		)
Purchase of intangible assets	(428		)	—			(27		)	—		(455		)
Net cash used in investing activities	(2,108		)	(98		)	(55		)	—		(2,261		)
Cash flows provided by (used in) financing activities:
Payments for debt and equity issuance costs	(195		)	—			—			—		(195		)
Proceeds from issuance of common stock and exercise of options and warrants	2			—			—			—		2
Net cash used in financing activities	(193		)	—			—			—		(193		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14		)	—		(14		)
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,156		)	(1,845		)	1,858			—		(1,143		)
Cash, cash equivalents and restricted cash, beginning of period	71,590			2,126			1,774			—		75,490
Cash, cash equivalents and restricted cash, end of period	$	70,434		$	281		$	3,632		$	—	$	74,347

Globalstar, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2018

(Unaudited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash flows provided by operating activities	$	5,920		$	3,805		$	107		$	—	$	9,832
Cash flows used in investing activities:
Second-generation network costs (including interest)	(318		)	—			(23		)	—		(341		)
Property and equipment additions	(1,216		)	(98		)	(83		)	—		(1,397		)
Purchase of intangible assets	(633		)	—			(15		)	—		(648		)
Net cash used in investing activities	(2,167		)	(98		)	(121		)	—		(2,386		)
Cash flows provided by financing activities:	—			—			—			—		—
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(22		)	—		(22		)
Net increase (decrease) in cash, cash equivalents and restricted cash	3,753			3,707			(36		)	—		7,424
Cash, cash equivalents and restricted cash, beginning of period	96,499			4,942			3,838			—		105,279
Cash, cash equivalents and restricted cash, end of period	$	100,252		$	8,649		$	3,802		$	—	$	112,703