8-KOther EventsExhibits & Filings

Globalstar, Inc. 8-K Report, Corporate Update (Aug 21, 2009)

Filed August 21, 2009For Securities:GSAT

Summary

Globalstar, Inc. (GSAT) filed an 8-K on August 21, 2009, primarily to address accounting changes related to its convertible debt. The company has adopted Financial Accounting Standards Board Staff Position APB 14-1, which impacts how convertible debt instruments that can be settled in cash upon conversion are accounted for. This adoption requires retrospective application, meaning prior period financial statements have been restated. Specifically, the filing supersedes certain sections of Globalstar's 2008 Form 10-K to reflect the impact of this new accounting standard. Investors should note that approximately $71.8 million in principal amount of 5.75% Convertible Senior Notes due 2028 were outstanding and are affected by this accounting change. The filing includes revised financial data, management's discussion and analysis, and financial statements, all reflecting this retrospective adjustment.

Key Highlights

  • 1Globalstar adopted Financial Accounting Standards Board Staff Position APB 14-1 concerning convertible debt accounting.
  • 2The adoption requires retrospective application, impacting previously issued financial statements.
  • 3Certain sections of the 2008 Form 10-K are superseded to reflect the accounting change.
  • 4Approximately $71.8 million in principal amount of 5.75% Convertible Senior Notes due 2028 are affected by this accounting treatment.
  • 5Revised financial data, MD&A, and financial statements are provided in attached exhibits.
  • 6The changes are purely accounting-related and do not reflect new events or changes in the business operations since the 2008 10-K filing date.
  • 7The independent registered public accounting firm's consent for the revised financial statements is included.

Frequently Asked Questions

The main purpose of this 8-K filing is to update Globalstar's 2008 Form 10-K to reflect the adoption of a new accounting standard, FSP APB 14-1, which affects how convertible debt instruments are accounted for. This requires a retrospective restatement of prior financial periods.

The adoption of FSP APB 14-1 changes the accounting treatment for convertible debt that may be settled in cash upon conversion. This has necessitated a retrospective application, leading to restated financial data, management's discussion and analysis, and financial statements for the year ended December 31, 2008.

No, this filing exclusively addresses accounting changes. The company explicitly states that none of the exhibits reflect events after the filing of its 2008 Form 10-K and do not modify or update any disclosures other than those related to the retrospective adoption of FSP APB 14-1.

The filing notes that approximately $71.8 million in principal amount of Globalstar's 5.75% Convertible Senior Notes due 2028 are affected by the adoption of FSP APB 14-1.