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Segment Information
6 Months Ended
Sep. 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 and six months ended September 30, 2018 and 2017 were as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

September 30, 2018

 

 

September 30, 2017

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Satellite services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

 

 

$

214

 

 

$

 

 

$

431

 

Service

 

 

162,962

 

 

 

147,364

 

 

 

316,523

 

 

 

299,361

 

Total

 

 

162,962

 

 

 

147,578

 

 

 

316,523

 

 

 

299,792

 

Commercial networks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

104,190

 

 

 

47,347

 

 

 

189,323

 

 

 

83,830

 

Service

 

 

10,330

 

 

 

8,922

 

 

 

20,263

 

 

 

17,687

 

Total

 

 

114,520

 

 

 

56,269

 

 

 

209,586

 

 

 

101,517

 

Government systems

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

176,245

 

 

 

134,222

 

 

 

309,241

 

 

 

263,640

 

Service

 

 

63,747

 

 

 

55,005

 

 

 

120,993

 

 

 

108,169

 

Total

 

 

239,992

 

 

 

189,227

 

 

 

430,234

 

 

 

371,809

 

Elimination of intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

517,474

 

 

$

393,074

 

 

$

956,343

 

 

$

773,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profits (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Satellite services

 

$

(24,839

)

 

$

12,616

 

 

$

(54,775

)

 

$

31,459

 

Commercial networks

 

 

(39,197

)

 

 

(59,377

)

 

 

(86,205

)

 

 

(125,502

)

Government systems

 

 

44,900

 

 

 

34,221

 

 

 

69,818

 

 

 

66,813

 

Elimination of intersegment operating profits

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating loss before corporate and

   amortization of acquired intangible assets

 

 

(19,136

)

 

 

(12,540

)

 

 

(71,162

)

 

 

(27,230

)

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(2,435

)

 

 

(3,320

)

 

 

(4,888

)

 

 

(6,580

)

Loss from operations

 

$

(21,571

)

 

$

(15,860

)

 

$

(76,050

)

 

$

(33,810

)

 

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, 2018 and March 31, 2018 were as follows:

 

 

 

As of

September 30,

2018

 

 

As of

March 31,

2018

 

 

 

(In thousands)

 

Segment assets:

 

 

 

 

 

 

 

 

Satellite services

 

$

74,195

 

 

$

66,830

 

Commercial networks

 

 

227,197

 

 

 

211,447

 

Government systems

 

 

348,050

 

 

 

337,451

 

Total segment assets

 

 

649,442

 

 

 

615,728

 

Corporate assets

 

 

2,980,185

 

 

 

2,798,381

 

Total assets

 

$

3,629,627

 

 

$

3,414,109

 

 

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

 

 

 

Other Acquired Intangible

Assets, Net

 

 

Goodwill

 

 

 

As of

September 30, 2018

 

 

As of

March 31, 2018

 

 

As of

September 30, 2018

 

 

As of

March 31, 2018

 

 

 

(In thousands)

 

Satellite services

 

$

13,112

 

 

$

16,580

 

 

$

13,749

 

 

$

13,991

 

Commercial networks

 

 

2,569

 

 

 

3,340

 

 

 

43,959

 

 

 

44,011

 

Government systems

 

 

10,391

 

 

 

11,942

 

 

 

64,968

 

 

 

63,083

 

Total

 

$

26,072

 

 

$

31,862

 

 

$

122,676

 

 

$

121,085

 

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

September 30, 2018

 

 

September 30, 2017

 

 

 

(In thousands)

 

Satellite services

 

$

1,289

 

 

$

2,173

 

 

$

2,593

 

 

$

4,267

 

Commercial networks

 

 

385

 

 

 

386

 

 

 

771

 

 

 

792

 

Government systems

 

 

761

 

 

 

761

 

 

 

1,524

 

 

 

1,521

 

Total amortization of acquired intangible assets

 

$

2,435

 

 

$

3,320

 

 

$

4,888

 

 

$

6,580