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Segment Information
3 Months Ended
Jun. 30, 2018
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 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, Application-Specific Integrated Circuit chip design, satellite payload development 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 provides global mobile broadband services to military and government users and develops and offers network-centric, internet protocol-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, 2018 and 2017 were as follows:

 

 

 

Three Months Ended

 

 

 

June 30, 2018

 

 

June 30, 2017

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

Satellite services

 

 

 

 

 

 

 

 

Product

 

$

 

 

$

217

 

Service

 

 

153,561

 

 

 

151,997

 

Total

 

 

153,561

 

 

 

152,214

 

Commercial networks

 

 

 

 

 

 

 

 

Product

 

 

85,133

 

 

 

36,483

 

Service

 

 

9,933

 

 

 

8,765

 

Total

 

 

95,066

 

 

 

45,248

 

Government systems

 

 

 

 

 

 

 

 

Product

 

 

132,996

 

 

 

129,418

 

Service

 

 

57,246

 

 

 

53,164

 

Total

 

 

190,242

 

 

 

182,582

 

Elimination of intersegment revenues

 

 

 

 

 

 

Total revenues

 

$

438,869

 

 

$

380,044

 

 

 

 

 

 

 

 

 

 

Operating profits (losses):

 

 

 

 

 

 

 

 

Satellite services

 

$

(29,936

)

 

$

18,843

 

Commercial networks

 

 

(47,008

)

 

 

(66,125

)

Government systems

 

 

24,918

 

 

 

32,592

 

Elimination of intersegment operating profits

 

 

 

 

 

 

Segment operating loss before corporate and

   amortization of acquired intangible assets

 

 

(52,026

)

 

 

(14,690

)

Corporate

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(2,453

)

 

 

(3,260

)

Loss from operations

 

$

(54,479

)

 

$

(17,950

)

 

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, 2018 and March 31, 2018 were as follows:

 

 

 

As of

June 30,

2018

 

 

As of

March 31,

2018

 

 

 

(In thousands)

 

Segment assets:

 

 

 

 

 

 

 

 

Satellite services

 

$

73,919

 

 

$

66,830

 

Commercial networks

 

 

214,942

 

 

 

211,447

 

Government systems

 

 

318,600

 

 

 

337,451

 

Total segment assets

 

 

607,461

 

 

 

615,728

 

Corporate assets

 

 

2,936,807

 

 

 

2,798,381

 

Total assets

 

$

3,544,268

 

 

$

3,414,109

 

 

Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2018 and March 31, 2018 were as follows:

 

 

 

Other Acquired Intangible

Assets, Net

 

 

Goodwill

 

 

 

As of

June 30, 2018

 

 

As of

March 31, 2018

 

 

As of

June 30, 2018

 

 

As of

March 31, 2018

 

 

 

(In thousands)

 

Satellite services

 

$

14,449

 

 

$

16,580

 

 

$

13,763

 

 

$

13,991

 

Commercial networks

 

 

2,955

 

 

 

3,340

 

 

 

43,937

 

 

 

44,011

 

Government systems

 

 

11,154

 

 

 

11,942

 

 

 

64,755

 

 

 

63,083

 

Total

 

$

28,558

 

 

$

31,862

 

 

$

122,455

 

 

$

121,085

 

 

Amortization of acquired intangible assets by segment for the three months ended June 30, 2018 and 2017 was as follows:

 

 

 

Three Months Ended

 

 

 

June 30, 2018

 

 

June 30, 2017

 

 

 

(In thousands)

 

Satellite services

 

$

1,305

 

 

$

2,093

 

Commercial networks

 

 

385

 

 

 

407

 

Government systems

 

 

763

 

 

 

760

 

Total amortization of acquired intangible assets

 

$

2,453

 

 

$

3,260