Inmarsats interest rate cap with respect to the Inmarsat Secured Credit Facilities of $45.0 million, and an increase to asset-side working capital from revenue growth, partially offset
by a decrease in short term deposits and cash and cash equivalents reflecting the payment by Inmarsat Holdings of a distribution to its shareholders in the amount of $298.8 million in April 2022.
liabilities as of March 31, 2023 decreased by $91.7 million to $1,452.0 million, compared to $1,543.7 million as of December 31, 2022. This decrease was mainly driven by a decrease in the current tax liability following the
tax settlement payment to the HMRC in relation to the launch costs case.
Current liabilities as of December 31, 2022 increased by
$66.6 million to $1,543.7 million, compared to $1,477.1 million as of December 31, 2021. This increase was primarily driven by higher trade payables and deferred income in support of revenue growth and the launch of
Inmarsats I-6 F2 satellite (which occurred in the first quarter of 2023).
Non-current liabilities as of
March 31, 2023 increased by $70.4 million to $4,550.4 million, compared to $4,480.0 million as of December 31, 2022. This increase was mainly driven by the recognition of new financial lease obligations relating to property
leases, predominately in relation to the new London office.
Non-current liabilities as of
December 31, 2022 increased by $21.6 million to $4,480.0 million, compared to $4,458.4 million as of December 31, 2021. The increase was primarily driven by an increase to borrowings from the amortization of deferred finance
costs and repricing gain, partially offset by repayments under the Inmarsat Secured Credit Facilities, and additional deferred tax liabilities following non-deductible Transaction-related costs and the fair
value gain recognized on interest rate cap derivative, partially offset by a reduction in finance lease obligations as these continued to wind down to their respective lease maturities.
Liquidity and Capital Resources
Inmarsats primary sources of liquidity and capital resources are cash flow from operations and financing activities. Inmarsat is exposed
to liquidity risk with respect to its contractual obligations and financial liabilities. Inmarsat manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities. Inmarsats available liquidity is comprised of available cash and cash equivalents and short-term deposits, along with the $700.0 million Inmarsat Revolving Credit Facility, which was undrawn as of March 31, 2023. From
this available liquidity, Inmarsat believes it has sufficient working capital to meet its obligations as they fall due.
continues to invest in new services and technology necessary to support its activities through research and development programs. Research costs related to internally generated intangibles are expensed in the period that the expenditure is incurred.
Development costs are only capitalized if the technical feasibility, availability of appropriate technical, financial and other resources and commercial viability of developing the asset for subsequent use or sale have been demonstrated and the
costs incurred can be measured reliably.
Inmarsats material cash requirements relate to capital and purchase requirements. Capital
commitments primarily represented commitments in respect of Inmarsats I-6 and GX 7/8/9 satellite programs. Lease and purchase commitments mainly comprised the commitment for development of Arctic
capabilities for GX in partnership with Space Norway and a property lease in relation to Inmarsats London headquarters. Inmarsat has historically relied on cash flow from operations and various debt and equity financings for liquidity.
Details on treasury policy and objectives, and exposure to liquidity, credit and market risk, along with details on financial instruments,
including hedging, debt profile, maturity, interest and currencies can be found in Notes 31, 3 and 20 of Inmarsat Holdings consolidated financial statements for the year ended December 31, 2022 included elsewhere in this offering