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Segment Information
3 Months Ended
Jun. 28, 2013
Segment Reporting [Abstract]  
Segment Information

Note 10 — Segment Information

The Company’s reporting segments, comprised of the satellite services, commercial networks and government systems segments, 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 services for its consumer, enterprise and mobile broadband customers primarily 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 fixed and mobile 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 months ended June 28, 2013 and June 29, 2012 were as follows:

 

     Three Months Ended  
     June 28, 2013     June 29, 2012  
     (In thousands)  

Revenues:

    

Satellite Services

    

Product

   $ 16      $ 531   

Service

     85,831        58,788   
  

 

 

   

 

 

 

Total

     85,847        59,319   

Commercial Networks

    

Product

     91,824        70,762   

Service

     5,575        5,373   
  

 

 

   

 

 

 

Total

     97,399        76,135   

Government Systems

    

Product

     90,321        76,436   

Service

     47,535        29,873   
  

 

 

   

 

 

 

Total

     137,856        106,309   

Elimination of intersegment revenues

     —         —    
  

 

 

   

 

 

 

Total revenues

   $ 321,102      $ 241,763   
  

 

 

   

 

 

 

Operating profits (losses):

    

Satellite Services

   $ (12,978   $ (22,516

Commercial Networks

     3,336        (2,069

Government Systems

     16,567        14,860   

Elimination of intersegment operating profits

     —         —    
  

 

 

   

 

 

 

Segment operating profit (loss) before corporate and amortization of acquired intangible assets

     6,925        (9,725

Corporate

     —         —    

Amortization of acquired intangible assets

     (3,501     (4,064
  

 

 

   

 

 

 

Income (loss) from operations

   $ 3,424      $ (13,789
  

 

 

   

 

 

 

 

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, 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 June 28, 2013 and March 29, 2013 were as follows:

 

     As of
June 28,
2013
     As of
March 29,
2013
 
     (In thousands)  

Segment assets:

     

Satellite Services

   $ 86,859       $ 89,945   

Commercial Networks

     211,986         175,230   

Government Systems

     215,323         238,057   
  

 

 

    

 

 

 

Total segment assets

     514,168         503,232   

Corporate assets

     1,323,103         1,290,840   
  

 

 

    

 

 

 

Total assets

   $ 1,837,271       $ 1,794,072   
  

 

 

    

 

 

 

Other acquired intangible assets, net and goodwill included in segment assets as of June 28, 2013 and March 29, 2013 were as follows:

 

     Other Acquired Intangible
Assets, Net
     Goodwill  
     As of
June 28, 2013
     As of
March 29, 2013
     As of
June 28, 2013
     As of
March 29, 2013
 
     (In thousands)  

Satellite Services

   $ 37,224       $ 39,989       $ 9,809       $ 9,809   

Commercial Networks

     3,777         1,520         43,664         43,648   

Government Systems

     5,122         5,661         29,159         29,543   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 46,123       $ 47,170       $ 82,632       $ 83,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization of acquired intangible assets by segment for the three months ended June 28, 2013 and June 29, 2012 was as follows:

 

     Three Months Ended  
     June 28, 2013      June 29, 2012  
     (In thousands)  

Satellite Services

   $ 2,765       $ 3,238   

Commercial Networks

     143         184   

Government Systems

     593         642   
  

 

 

    

 

 

 

Total amortization of acquired intangible assets

   $ 3,501       $ 4,064   
  

 

 

    

 

 

 

Revenue information by geographic area for the three months ended June 28, 2013 and June 29, 2012 was as follows:

 

     Three Months Ended  
     June 28, 2013      June 29, 2012  
     (In thousands)  

United States

   $ 238,799       $ 178,734   

Europe, Middle East and Africa

     40,827         32,215   

Asia, Pacific

     32,865         8,431   

North America other than United States

     7,778         17,387   

Central and Latin America

     833         4,996   
  

 

 

    

 

 

 

Total revenues

   $ 321,102       $ 241,763   
  

 

 

    

 

 

 

 

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 $18.5 million at June 28, 2013 and March 29, 2013, respectively.