Segment Information

9 Months Ended

Dec. 31, 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 commercial airlines and other aircraft, residential customers and enterprises, maritime vessels (acquired through the Inmarsat Acquisition) and other mobile broadband customers, and Prepaid Internet users. 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 nine months ended December 31, 2023 and 2022 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2023			December 31, 2022			December 31, 2023			December 31, 2022
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		581,429			302,412			1,565,247			915,059
Total		581,429			302,412			1,565,247			915,059
Commercial networks
Product		144,525			147,163			523,517			400,569
Service		21,835			20,060			66,636			59,465
Total		166,360			167,223			590,153			460,034
Government systems
Product		158,548			102,152			417,657			282,200
Service		222,202			79,657			560,688			232,766
Total		380,750			181,809			978,345			514,966
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	1,128,539		$	651,444		$	3,133,745		$	1,890,059
Operating profits (losses):
Satellite services	$	41,115		$	(8,421	)	$	(779,493	)	$	(13,142	)
Commercial networks		(70,343	)		(40,266	)		(73,972	)		(90,442	)
Government systems		77,029			24,809			164,268			42,655
Elimination of intersegment operating    profits (losses)		—			—			—			—
Segment operating profit (loss) before corporate    and amortization of acquired intangible    assets		47,801			(23,878	)		(689,197	)		(60,929	)
Corporate		—			—			—			—
Amortization of acquired intangible    assets		(91,719	)		(7,433	)		(200,904	)		(22,335	)
Income (loss) from operations	$	(43,918	)	$	(31,311	)	$	(890,101	)	$	(83,264	)

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 December 31, 2023 and March 31, 2023 were as follows:

	As of  December 31, 2023		As of  March 31, 2023
	(In thousands)
Segment assets:
Satellite services	$	3,729,631	$	424,881
Commercial networks		404,705		328,828
Government systems		1,281,096		293,780
Total segment assets		5,415,432		1,047,489
Corporate assets		11,235,223		6,682,848
Total assets	$	16,650,655	$	7,730,337

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

	Other Acquired Intangible Assets, Net				Goodwill
	As of  December 31, 2023		As of  March 31, 2023		As of  December 31, 2023		As of  March 31, 2023
	(In thousands)
Satellite services	$	2,375,977	$	200,097	$	1,050,740	$	80,589
Commercial networks		—		—		41,188		41,014
Government systems		397,688		1,108		521,778		36,939
Total	$	2,773,665	$	201,205	$	1,613,706	$	158,542

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2023 and 2022 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
	(In thousands)
Satellite services	$	80,328	$	7,142	$	179,151	$	21,458
Commercial networks		—		—		—		—
Government systems		11,391		291		21,753		877
Total amortization of acquired    intangible assets	$	91,719	$	7,433	$	200,904	$	22,335

Revenues by geographic area for the three and nine months ended December 31, 2023 and 2022 were as follows:

	Three Months Ended		Nine Months Ended
	December 31, 2023		December 31, 2023
	(In thousands)
U.S. customers	$	769,135	$	2,239,718
Non-U.S. customers (each country individually insignificant)		359,404		894,027
Total revenues	$	1,128,539	$	3,133,745
	Three Months Ended		Nine Months Ended
	December 31, 2022		December 31, 2022
	(In thousands)
U.S. customers	$	542,702	$	1,590,535
Non-U.S. customers (each country individually insignificant)		108,742		299,524
Total revenues	$	651,444	$	1,890,059

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