Segment Information

9 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Note 11 — 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 satellite-based broadband services to consumers, enterprises and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops advanced end-to-end satellite and wireless communication systems, 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 fixed and mobile secure government communications systems, network management systems, products, services and solutions and provides global mobile broadband service and product offerings. 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 nine months ended December 31, 2015 and January 2, 2015 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2015			January 2, 2015			December 31, 2015			January 2, 2015
	(In thousands)
Revenues:
Satellite services
Product (1)	$	6,453		$	6,149		$	19,105		$	27,468
Service		134,751			117,683			394,700			342,015
Total		141,204			123,832			413,805			369,483
Commercial networks
Product		49,617			79,832			173,111			251,533
Service		5,809			4,178			15,440			11,564
Total		55,426			84,010			188,551			263,097
Government systems
Product		100,220			88,318			296,082			257,351
Service		50,909			43,393			147,029			127,851
Total		151,129			131,711			443,111			385,202
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	347,759		$	339,553		$	1,045,467		$	1,017,782
Operating profits (losses):
Satellite services (2)	$	21,772		$	10,421		$	59,849		$	47,823
Commercial networks		(29,889	)		(7,558	)		(70,928	)		(20,801	)
Government systems		22,763			19,966			58,362			49,781
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		14,646			22,829			47,283			76,803
Corporate		—			—			—			—
Amortization of acquired intangible assets		(4,261	)		(4,651	)		(13,658	)		(13,338	)
Income from operations	$	10,385		$	18,178		$	33,625		$	63,465

(1) Product revenues in the satellite services segment for the three and nine months ended December 31, 2015 included $6.4 million and $18.8 million, respectively, and for the three and nine months ended January 2, 2015 included $6.0 million and $27.0 million, respectively, relating to amounts realized under the Settlement Agreement. See Note 8.

(2) Operating profits for the satellite services segment for the three and nine months ended December 31, 2015 included $6.4 million and $18.8 million, respectively, and for the three and nine months ended January 2, 2015 included $6.0 million and $45.7 million, respectively, relating to amounts realized under the Settlement Agreement. See Note 8.

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, 2015 and April 3, 2015 were as follows:

	As of December 31, 2015		As of April 3, 2015
	(In thousands)
Segment assets:
Satellite services	$	59,419	$	63,790
Commercial networks		204,989		217,268
Government systems		289,588		273,313
Total segment assets		553,996		554,371
Corporate assets		1,782,062		1,604,007
Total assets	$	2,336,058	$	2,158,378

Other acquired intangible assets, net and goodwill included in segment assets as of December 31, 2015 and April 3, 2015 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of December 31, 2015		As of April 3, 2015		As of December 31, 2015		As of April 3, 2015
	(In thousands)
Satellite services	$	9,855	$	17,873	$	9,809	$	9,809
Commercial networks		7,193		1,443		43,937		43,994
Government systems		19,362		23,024		63,440		63,438
Total	$	36,410	$	42,340	$	117,186	$	117,241

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2015 and January 2, 2015 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2015		January 2, 2015		December 31, 2015		January 2, 2015
	(In thousands)
Satellite services	$	2,488	$	2,765	$	8,018	$	8,295
Commercial networks		706		369		1,957		1,084
Government systems		1,067		1,517		3,683		3,959
Total amortization of acquired intangible assets	$	4,261	$	4,651	$	13,658	$	13,338