Segment Information

9 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Note 11 — Segment Information

The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies. 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. Due to the resegmentation that was implemented commencing with the first quarter of fiscal year 2025, prior period segment amounts have been recast to conform to the current segment presentation.

The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines. The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements.

The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for fixed and residential broadband customers. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.

The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateway, modems and waveforms. The more regulated government environment for defense, encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment. The Company’s defense and advanced technologies segment revenues are primarily derived from the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other products and services which are provided to government and commercial customers.

Segment revenues and operating profits (losses) for the three and nine months ended December 31, 2024 and 2023 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	(In thousands)
Revenues:
Communication services
Aviation services	$	263,880		$	236,008		$	783,022		$	611,169
Government satcom services		195,048			176,311			558,796			428,778
Maritime services		118,895			130,121			364,021			305,894
Fixed services and other services		181,162			229,929			567,651			691,063
Total services		758,985			772,369			2,273,490			2,036,904
Total products		61,362			102,489			200,029			244,771
Total communication services revenues		820,347			874,858			2,473,519			2,281,675
Defense and advanced technologies
Total services		50,385			53,097			154,915			155,667
Information security and cyber defense products		89,497			72,115			228,552			211,169
Space and mission systems products		77,752			65,182			229,840			229,875
Tactical networking products		78,528			57,676			229,972			137,505
Advanced technologies and other products		7,258			5,611			55,691			117,854
Total products		253,035			200,584			744,055			696,403
Total defense and advanced technologies revenues		303,420			253,681			898,970			852,070
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	1,123,767		$	1,128,539		$	3,372,489		$	3,133,745
Operating profits (losses):
Communication services	$	44,357		$	36,049		$	85,829		$	(805,080	)
Defense and advanced technologies		42,738			11,752			168,562			115,883
Elimination of intersegment operating profits (losses)		—			—			—			—
Segment operating profit (loss) before corporate    and amortization of acquired intangible assets		87,095			47,801			254,391			(689,197	)
Corporate		—			—			—			—
Amortization of acquired intangible assets		(65,847	)		(91,719	)		(198,086	)		(200,904	)
Income (loss) from operations	$	21,248		$	(43,918	)	$	56,305		$	(890,101	)

Assets identifiable to segments include accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill, which identification is consistent with the information provided to the Company's chief operating decision maker for purposes of evaluating segment performance or allocating resources. Segment assets as of December 31, 2024 and March 31, 2024 were as follows:

	As of  December 31, 2024		As of  March 31, 2024
	(In thousands)
Segment assets:
Communication services	$	4,543,153	$	4,819,535
Defense and advanced technologies		382,941		341,450
Total segment assets		4,926,094		5,160,985
Corporate assets		10,674,257		11,168,379
Total assets	$	15,600,351	$	16,329,364

Other acquired intangible assets, net and goodwill included in segment assets as of December 31, 2024 and March 31, 2024 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of  December 31, 2024		As of  March 31, 2024		As of  December 31, 2024		As of  March 31, 2024
	(In thousands)
Communication services	$	2,338,088	$	2,544,315	$	1,580,480	$	1,581,937
Defense and advanced technologies		—		152		39,787		39,826
Total	$	2,338,088	$	2,544,467	$	1,620,267	$	1,621,763

Depreciation and amortization of intangible assets allocated to segments for the three and nine months ended December 31, 2024 and 2023 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(In thousands)
Communication services	$	254,962	$	231,274	$	776,134	$	604,738
Defense and advanced technologies		16,946		13,633		49,405		39,328
Corporate (1)		65,847		91,719		198,086		200,904
Total depreciation and amortization of    intangible assets	$	337,755	$	336,626	$	1,023,625	$	844,970

(1)Corporate amounts include the amortization of acquired intangible assets as they are not considered part of management’s evaluation of segment performance.

Revenues by geographic area for the three and nine months ended December 31, 2024 and 2023 were as follows:

	Three Months Ended		Nine Months Ended
	December 31, 2024		December 31, 2024
	(In thousands)
U.S. customers	$	774,383	$	2,327,663
Non-U.S. customers (each country individually insignificant)		349,384		1,044,826
Total revenues	$	1,123,767	$	3,372,489
	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

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