Segment Information

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Note 12 — Segment Information

The Company’s reportable segments (satellite services, commercial networks and government systems) are primarily distinguished by the type of customer and the related contractual requirements. The Company’s satellite services segment provides satellite-based broadband and related services to residential customers, Prepaid Internet users, enterprises, commercial airlines and other aircraft, maritime vessels (acquired through the Inmarsat Acquisition) and other mobile broadband customers. The Company’s commercial networks segment develops and offers advanced satellite and wireless broadband platforms, ground networking equipment, radio frequency and advanced microwave solutions, Application-Specific Integrated Circuit (ASIC) chip design, satellite payload development and space-to-earth connectivity systems, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment provides global mobile broadband services and narrowband products and services (acquired through the Inmarsat Acquisition) to military and government users and develops and offers network-centric, internet protocol-based fixed and mobile secure communications products and solutions. The more regulated government environment is

subject to unique contractual requirements and possesses economic characteristics which differ from the satellite services and commercial networks segments. The Company’s segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

As described in Note 1 — Basis of Presentation and Note 5 — Discontinued Operations, on October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Link-16 TDL Business to L3Harris. In accordance with ASC 205-20, the Company determined that the Link-16 TDL Business met held-for-sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023. Accordingly, the segment information for the periods prior to the measurement date of a discontinued operation that is part of a reportable segment is required to be restated to reflect the discontinued operation classification. However, the discontinued operations have been excluded from segment results for all periods presented. Further, as the discontinued operation is part of a reportable segment but not the entire reportable segment, the costs previously allocated to a discontinued operation have been reasonably reallocated to the remaining operating segments. Therefore, certain corporate and other indirect costs previously allocated to the Link-16 TDL Business have been allocated across all three segments for the periods presented. On January 3, 2023, the Company completed the Link-16 TDL Sale. See Note 5 — Discontinued Operations for additional information.

Segment revenues and operating profits (losses) for the three and six months ended September 30, 2023 and 2022 were as follows:

	Three Months Ended						Six Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		585,334			300,547			983,818			612,647
Total		585,334			300,547			983,818			612,647
Commercial networks
Product		251,111			159,831			378,992			253,406
Service		24,087			20,196			44,801			39,405
Total		275,198			180,027			423,793			292,811
Government systems
Product		150,618			101,128			259,109			180,048
Service		214,265			81,857			338,486			153,109
Total		364,883			182,985			597,595			333,157
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	1,225,415		$	663,559		$	2,005,206		$	1,238,615
Operating profits (losses):
Satellite services	$	(832,046	)	$	(6,066	)	$	(820,608	)	$	(4,721	)
Commercial networks		43,083			(796	)		(3,629	)		(50,176	)
Government systems		65,670			18,926			87,239			17,846
Elimination of intersegment operating    profits (losses)		—			—			—			—
Segment operating profit (loss) before corporate    and amortization of acquired intangible    assets		(723,293	)		12,064			(736,998	)		(37,051	)
Corporate		—			—			—			—
Amortization of acquired intangible    assets		(81,374	)		(7,379	)		(109,185	)		(14,902	)
Income (loss) from operations	$	(804,667	)	$	4,685		$	(846,183	)	$	(51,953	)

Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property and equipment, including its satellites, earth stations and other

networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives. Segment assets as of September 30, 2023 and March 31, 2023 were as follows:

	As of  September 30, 2023		As of  March 31, 2023
	(In thousands)
Segment assets:
Satellite services	$	3,637,061	$	424,881
Commercial networks		411,772		328,828
Government systems		1,107,635		293,780
Total segment assets		5,156,468		1,047,489
Corporate assets		11,915,576		6,682,848
Total assets	$	17,072,044	$	7,730,337

Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2023 and March 31, 2023 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of  September 30, 2023		As of  March 31, 2023		As of  September 30, 2023		As of  March 31, 2023
	(In thousands)
Satellite services	$	2,441,089	$	200,097	$	891,681	$	80,589
Commercial networks		—		—		41,021		41,014
Government systems		330,748		1,108		442,840		36,939
Total	$	2,771,837	$	201,205	$	1,375,542	$	158,542

Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2023 and 2022 was as follows:

	Three Months Ended				Six Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(In thousands)
Satellite services	$	77,172	$	7,088	$	98,823	$	14,316
Commercial networks		—		—		—		—
Government systems		4,202		291		10,362		586
Total amortization of acquired    intangible assets	$	81,374	$	7,379	$	109,185	$	14,902

Revenues by geographic area for the three and six months ended September 30, 2023 and 2022 were as follows:

	Three Months Ended		Six Months Ended
	September 30, 2023		September 30, 2023
	(In thousands)
U.S. customers	$	877,421	$	1,470,583
Non-U.S. customers (each country individually insignificant)		347,994		534,623
Total revenues	$	1,225,415	$	2,005,206
	Three Months Ended		Six Months Ended
	September 30, 2022		September 30, 2022
	(In thousands)
U.S. customers	$	564,287	$	1,047,833
Non-U.S. customers (each country individually insignificant)		99,272		190,782
Total revenues	$	663,559	$	1,238,615

The Company distinguishes revenues from external customers by geographic area based on customer location.