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Segment Information
12 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Information

Note 14 — 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, commercial airlines and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops and offers advanced end-to-end satellite and wireless communication systems, ground networking equipment 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 develops and offers network-centric, IP-based fixed and mobile secure government communications 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 fiscal years ended March 31, 2016, April 3, 2015 and April 4, 2014 were as follows:

 

     Fiscal Years Ended  
     March 31,
2016
     April 3,
2015
     April 4,
2014
 
     (In thousands)  

Revenues:

        

Satellite Services

        

Product (1)

   $ 25,606       $ 33,576       $ 42   

Service

     533,628         466,284         390,666   
  

 

 

    

 

 

    

 

 

 

Total

     559,234         499,860         390,708   

Commercial Networks

        

Product

     228,694         331,052         378,577   

Service

     22,042         16,078         16,944   
  

 

 

    

 

 

    

 

 

 

Total

     250,736         347,130         395,521   

Government Systems

        

Product

     410,521         363,446         407,119   

Service

     196,940         172,099         158,114   
  

 

 

    

 

 

    

 

 

 

Total

     607,461         535,545         565,233   

Elimination of intersegment revenues

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Total revenues

   $ 1,417,431       $ 1,382,535       $ 1,351,462   
  

 

 

    

 

 

    

 

 

 

Operating profits (losses):

        

Satellite Services (2)

   $ 81,830       $ 62,379       $ (45,991

Commercial Networks

     (111,339      (33,616      (12,134

Government Systems

     87,066         72,347         76,038   

Elimination of intersegment operating profits

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Segment operating profit before corporate and amortization of acquired intangible assets

     57,557         101,110         17,913   

Corporate

     —           —           —     

Amortization of acquired intangible assets

     (16,438      (17,966      (14,614
  

 

 

    

 

 

    

 

 

 

Income from operations

   $ 41,119       $ 83,144       $ 3,299   
  

 

 

    

 

 

    

 

 

 

 

(1) Product revenues in the satellite services segment included $25.3 million and $33.0 million for the fiscal years ended March 31, 2016, and April 3, 2015, respectively, relating to amounts realized under the Settlement Agreement. See Note 12.
(2) Operating profits for the satellite services segment included $25.3 million and $51.8 million for the fiscal years ended March 31, 2016, and April 3, 2015, respectively, relating to amounts realized under the Settlement Agreement. See Note 12.

 

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 March 31, 2016, April 3, 2015 and April 4, 2014 were as follows:

 

     As of
March 31,
2016
     As of
April 3,
2015
     As of
April 4,
2014
 
     (In thousands)  

Segment assets:

        

Satellite Services

   $ 57,529       $ 63,790       $ 73,382   

Commercial Networks

     212,943         217,268         229,455   

Government Systems

     311,927         273,313         206,848   
  

 

 

    

 

 

    

 

 

 

Total segment assets

     582,399         554,371         509,685   

Corporate assets

     1,823,447         1,604,007         1,450,430   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 2,405,846       $ 2,158,378       $ 1,960,115   
  

 

 

    

 

 

    

 

 

 

Other acquired intangible assets, net and goodwill included in segment assets as of March 31, 2016 and April 3, 2015 were as follows:

 

     Other Acquired Intangible
Assets, Net
     Goodwill  
     As of 
March 31, 
2016
     As of 
April 3, 
2015
     As of
March 31,
2016
     As of
April 3,
2015
 
     (In thousands)  

Satellite Services

   $ 8,751       $ 17,873       $ 9,809       $ 9,809   

Commercial Networks

     6,581         1,443         43,990         43,994   

Government Systems

     18,272         23,024         63,241         63,438   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 33,604       $ 42,340       $ 117,040       $ 117,241   
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization of acquired intangible assets by segment for the fiscal years ended March 31, 2016, April 3, 2015 and April 4, 2014 was as follows:

 

     Fiscal Years Ended  
     March 31,
2016
     April 3,
2015
     April 4,
2014
 
     (In thousands)  

Satellite Services

   $ 9,122       $ 11,058       $ 11,058   

Commercial Networks

     2,569         1,452         1,337   

Government Systems

     4,747         5,456         2,219   
  

 

 

    

 

 

    

 

 

 

Total amortization of acquired intangible assets

   $ 16,438       $ 17,966       $ 14,614   
  

 

 

    

 

 

    

 

 

 

 

Revenue information by geographic area for the fiscal years ended March 31, 2016, April 3, 2015 and April 4, 2014 was as follows:

 

     Fiscal Years Ended  
     March 31,
2016
     April 3,
2015
     April 4,
2014
 
     (In thousands)  

United States

   $ 1,207,651       $ 1,149,700       $ 1,044,737   

Europe, Middle East and Africa

     80,202         89,982         127,696   

Asia, Pacific

     79,213         81,397         147,063   

North America other than United States

     38,957         51,661         25,811   

Central and Latin America

     11,408         9,795         6,155   
  

 

 

    

 

 

    

 

 

 

Total revenues

   $ 1,417,431       $ 1,382,535       $ 1,351,462   
  

 

 

    

 

 

    

 

 

 

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 $23.7 million at March 31, 2016, $14.3 million at April 3, 2015 and $18.5 million at April 4, 2014.