Summary
Globalstar, Inc. (GSAT) filed an 8-K on June 17, 2010, to disclose the retrospective adoption of new accounting guidance related to share loan facilities. This adoption, effective January 2010, required a restatement of previously reported financial information for the fiscal year ended December 31, 2009. The filing supersedes certain sections of its 2009 Form 10-K, specifically impacting the Selected Financial Data, Management's Discussion and Analysis, and the Consolidated Financial Statements. Investors should note that this 8-K does not introduce new operational events or financial performance information beyond the accounting adjustment. The primary impact for investors is a revised historical financial picture due to the change in accounting treatment for share loan facilities. The company has attached updated exhibits to this report detailing these changes, allowing for a more accurate understanding of its financial position as it relates to these specific facilities.
Key Highlights
- 1Globalstar is retroactively restating its 2009 financial statements due to the adoption of new accounting standards for share loan facilities.
- 2The adoption of this new guidance was effective in January 2010 and applied retrospectively.
- 3This filing supersedes specific sections (Items 6, 7, and 8) of Globalstar's 2009 Form 10-K.
- 4The affected sections include Selected Financial Data, Management's Discussion and Analysis, and Financial Statements and Supplementary Data.
- 5Detailed impact of the adoption is explained in Note 19 to the Consolidated Financial Statements for the year ended December 31, 2009.
- 6The exhibits provided with this 8-K contain the updated and recast financial information.
- 7No new events or information unrelated to the accounting adjustment are disclosed in this report; disclosures reflect conditions as of the original 2009 10-K filing date.