Segment Information

6 Months Ended

Sep. 28, 2012

Segment Information

Note 11 — Segment Information

The Company’s reporting segments, comprised of the satellite services, commercial networks and government systems segment, are primarily distinguished by the type of customer and the related contractual requirements. The Company’s satellite services segment provides retail and wholesale satellite-based broadband internet services for its consumer, enterprise and mobile broadband customers in the United States, as well as managed network services for the satellite communication systems of the Company’s consumer, enterprise and mobile broadband customers worldwide. The Company’s commercial networks segment develops and produces a variety of advanced end-to-end satellite and other wireless communication systems and ground networking equipment and products, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and produces network-centric, internet protocol (IP)-based secure government communications systems, products, services 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.

Segment revenues and operating profits (losses) for the three and six months ended September 28, 2012 and September 30, 2011 were as follows:

	Three Months Ended						Six Months Ended
	September 28, 2012			September 30, 2011			September 28, 2012			September 30, 2011
	(In thousands)
Revenues
Satellite Services
Product	$	2,975		$	927		$	3,506		$	1,578
Service		64,332			54,488			123,120			110,700
Total		67,307			55,415			126,626			112,278
Commercial Networks
Product		81,113			59,063			151,875			106,359
Service		5,424			5,136			10,797			9,909
Total		86,537			64,199			162,672			116,268
Government Systems
Product		84,387			86,621			160,823			161,220
Service		44,591			16,789			74,464			28,359
Total		128,978			103,410			235,287			189,579
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	282,822		$	223,024		$	524,585		$	418,125
Operating (losses) profits
Satellite Services	$	(19,373	)	$	(1,739	)	$	(41,889	)	$	194
Commercial Networks		(1,836	)		(2,871	)		(3,905	)		(6,111	)
Government Systems		24,391			14,333			39,251			21,713
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		3,182			9,723			(6,543	)		15,796
Corporate		—			—			—			—
Amortization of acquired intangible assets		(4,041	)		(4,767	)		(8,105	)		(9,539	)
(Loss) income from operations	$	(859	)	$	4,956		$	(14,648	)	$	6,257

Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property, plant and equipment, including its satellites, gateways 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 28, 2012 and March 30, 2012 were as follows:

	As of September  28, 2012		As of March 30, 2012
	(In thousands)
Segment assets
Satellite Services	$	98,269	$	95,671
Commercial Networks		182,458		170,553
Government Systems		222,497		219,199
Total segment assets		503,224		485,423
Corporate assets		1,240,145		1,241,730
Total assets	$	1,743,369	$	1,727,153

Other acquired intangible assets, net and goodwill included in segment assets as of September 28, 2012 and March 30, 2012 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of September 28, 2012		As of March 30, 2012		As of September 28, 2012		As of March 30, 2012
	(In thousands)
Satellite Services	$	45,914	$	52,390	$	9,809	$	9,809
Commercial Networks		1,825		2,186		43,670		43,739
Government Systems		7,320		8,465		30,058		29,913
Total	$	55,059	$	63,041	$	83,537	$	83,461

Amortization of acquired intangible assets by segment for the three and six months ended September 28, 2012 and September 30, 2011 was as follows:

	Three Months Ended				Six Months Ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
	(In thousands)
Satellite Services	$	3,238	$	3,238	$	6,476	$	6,476
Commercial Networks		177		884		361		1,767
Government Systems		626		645		1,268		1,296
Total amortization of acquired intangible assets	$	4,041	$	4,767	$	8,105	$	9,539

Revenue information by geographic area for the three and six months ended September 28, 2012 and September 30, 2011 was as follows:

	Three Months Ended				Six Months Ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
	(In thousands)
United States	$	206,490	$	175,760	$	385,224	$	329,961
Europe, Middle East and Africa		54,330		30,336		86,545		57,240
Asia, Pacific		12,461		4,819		20,892		11,997
North America other than United States		6,900		5,489		24,287		9,713
Central and Latin America		2,641		6,620		7,637		9,214
Total revenues	$	282,822	$	223,024	$	524,585	$	418,125

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

The net book value of long-lived assets located outside the United States was $18.9 million and $18.7 million at September 28, 2012 and March 30, 2012, respectively.