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 and related services to consumers, enterprises, commercial airlines and mobile broadband customers. The Company’s commercial networks segment develops and offers advanced satellite and wireless broadband platforms, ground networking equipment, radio frequency and advanced microwave solutions, ASIC chip design, satellite payload development and space-to-earthconnectivity systems, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment provides global mobile broadband services to military and government users and develops and offers network-centric, internet protocol (IP)-based fixed and mobile secure communications products 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 30, 2017 and 2016 were as follows:


	Three Months Ended
	June 30, 2017			June 30, 2016
	(in thousands)
Revenues:
Satellite services
Product (1)	$	217		$	6,685
Service		151,997			145,708

Total		152,214			152,393
Commercial networks
Product		36,483			58,596
Service		8,765			6,957

Total		45,248			65,553
Government systems
Product		129,418			95,395
Service		53,164			49,789

Total		182,582			145,184
Elimination of intersegment revenues		—			—

Total revenues	$	380,044		$	363,130

Operating profits (losses):
Satellite services (1)	$	18,843		$	30,867
Commercial networks		(66,125	)		(38,531	)
Government systems		32,592			17,955
Elimination of intersegment operating profits		—			—

Segment operating (loss) profit before corporate and amortization of acquired intangible assets		(14,690	)		10,291
Corporate		—			—
Amortization of acquired intangible assets		(3,260	)		(2,513	)

(Loss) income from operations	$	(17,950	)	$	7,778

(1)

Product revenues and operating profits in the satellite services segment for the three months ended June 30, 2016 included $6.6 million 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. As of March 31, 2017, all payments pursuant to this settlement agreement had been recorded and no further impacts to the Company’s consolidated financial statements are anticipated related to this settlement agreement.

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 June 30, 2017 and March 31, 2017 were as follows:


	As of June 30, 2017		As of March 31, 2017
	(In thousands)
Segment assets:
Satellite services	$	71,477	$	81,728
Commercial networks		169,942		179,992
Government systems		310,405		326,242

Total segment assets		551,824		587,962
Corporate assets		2,526,890		2,366,691

Total assets	$	3,078,714	$	2,954,653

Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2017 and March 31, 2017 were as follows:


	Other Acquired Intangible Assets, Net				Goodwill
	As of June 30, 2017		As of March 31, 2017		As of June 30, 2017		As of March 31, 2017
	(In thousands)
Satellite services	$	20,810	$	21,843	$	13,815	$	13,579
Commercial networks		4,495		4,903		44,003		43,930
Government systems		14,192		14,931		62,601		62,367

Total	$	39,497	$	41,677	$	120,419	$	119,876

Amortization of acquired intangible assets by segment for the three months ended June 30, 2017 and 2016 was as follows:


	Three Months Ended
	June 30, 2017		June 30, 2016
Satellite services	$	2,093	$	1,104
Commercial networks		407		445
Government systems		760		964

Total amortization of acquired intangible assets	$	3,260	$	2,513