Segment Information

6 Months Ended

Sep. 30, 2016

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, 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, internet protocol (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 three and six months ended September 30, 2016 and 2015 were as follows:

	Three Months Ended						Six Months Ended
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
	(In thousands)
Revenues:
Satellite services
Product (1)	$	6,782		$	6,376		$	13,467		$	12,652
Service		149,502			133,809			295,210			259,949
Total		156,284			140,185			308,677			272,601
Commercial networks
Product		58,445			61,983			117,041			123,494
Service		7,018			4,387			13,975			9,631
Total		65,463			66,370			131,016			133,125
Government systems
Product		122,008			95,301			217,403			195,862
Service		55,403			51,474			105,192			96,120
Total		177,411			146,775			322,595			291,982
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	399,158		$	353,330		$	762,288		$	697,708
Operating profits (losses):
Satellite services (1)	$	32,550		$	21,036		$	63,417		$	38,077
Commercial networks		(40,868	)		(22,306	)		(79,399	)		(41,039	)
Government systems		29,009			19,683			46,964			35,599
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		20,691			18,413			30,982			32,637
Corporate		—			—			—			—
Amortization of acquired intangible assets		(2,277	)		(4,587	)		(4,790	)		(9,397	)
Income from operations	$	18,414		$	13,826		$	26,192		$	23,240

(1) Product revenues and operating profits in the satellite services segment for the three and six months ended September 30, 2016 included $6.6 million and $13.2 million, respectively, and for the three and six months ended September 30, 2015 included $6.3 million and $12.5 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space System Loral, Inc. and its former parent company Loral Space & Communications, Inc.

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 September 30, 2016 and March 31, 2016 were as follows:

	As of September 30, 2016		As of March 31, 2016
	(In thousands)
Segment assets:
Satellite services	$	58,618	$	57,529
Commercial networks		180,028		212,943
Government systems		334,602		311,927
Total segment assets		573,248		582,399
Corporate assets		2,009,987		1,814,913
Total assets	$	2,583,235	$	2,397,312

Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2016 and March 31, 2016 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of September 30, 2016		As of March 31, 2016		As of September 30, 2016		As of March 31, 2016
	(In thousands)
Satellite services	$	6,541	$	8,751	$	9,809	$	9,809
Commercial networks		5,726		6,581		43,977		43,990
Government systems		16,475		18,272		62,618		63,241
Total	$	28,742	$	33,604	$	116,404	$	117,040

Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended				Six Months Ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	(In thousands)
Satellite services	$	1,105	$	2,765	$	2,209	$	5,530
Commercial networks		411		755		856		1,251
Government systems		761		1,067		1,725		2,616
Total amortization of acquired intangible assets	$	2,277	$	4,587	$	4,790	$	9,397