Segment Information

9 Months Ended

Dec. 31, 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 nine months ended December 31, 2016 and 2015 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
	(In thousands)
Revenues:
Satellite services
Product (1)	$	7,114		$	6,453		$	20,581		$	19,105
Service		152,978			134,751			448,188			394,700
Total		160,092			141,204			468,769			413,805
Commercial networks
Product		46,878			49,617			163,919			173,111
Service		7,633			5,809			21,608			15,440
Total		54,511			55,426			185,527			188,551
Government systems
Product		115,582			100,220			332,985			296,082
Service		50,445			50,909			155,637			147,029
Total		166,027			151,129			488,622			443,111
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	380,630		$	347,759		$	1,142,918		$	1,045,467
Operating profits (losses):
Satellite services (1)	$	34,846		$	21,772		$	98,263		$	59,849
Commercial networks		(48,598	)		(29,889	)		(127,997	)		(70,928	)
Government systems		24,118			22,763			71,082			58,362
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		10,366			14,646			41,348			47,283
Corporate		—			—			—			—
Amortization of acquired intangible assets		(2,775	)		(4,261	)		(7,565	)		(13,658	)
Income from operations	$	7,591		$	10,385		$	33,783		$	33,625

(1) Product revenues and operating profits in the satellite services segment for the three and nine months ended December 31, 2016 included $6.8 million and $20.0 million, respectively, and for the three and nine months ended December 31, 2015 included $6.4 million and $18.8 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space Systems 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 December 31, 2016 and March 31, 2016 were as follows:

	As of December 31, 2016		As of March 31, 2016
	(In thousands)
Segment assets:
Satellite services	$	81,088	$	57,529
Commercial networks		165,474		212,943
Government systems		330,714		311,927
Total segment assets		577,276		582,399
Corporate assets		2,305,804		1,814,913
Total assets	$	2,883,080	$	2,397,312

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

	Other Acquired Intangible Assets, Net				Goodwill
	As of December 31, 2016		As of March 31, 2016		As of December 31, 2016		As of March 31, 2016
	(In thousands)
Satellite services	$	23,556	$	8,751	$	13,434	$	9,809
Commercial networks		5,314		6,581		43,892		43,990
Government systems		15,682		18,272		62,299		63,241
Total	$	44,552	$	33,604	$	119,625	$	117,040

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2016 and 2015 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
	(In thousands)
Satellite services	$	1,605	$	2,488	$	3,814	$	8,018
Commercial networks		411		706		1,267		1,957
Government systems		759		1,067		2,484		3,683
Total amortization of acquired intangible assets	$	2,775	$	4,261	$	7,565	$	13,658