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- 3Certain sections of the 2008 Form 10-K are superseded to reflect the accounting change.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.