Segment Information

9 Months Ended

Dec. 31, 2018

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 nine months ended December 31, 2018 and 2017 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	233		$	—		$	664
Service		177,651			144,310			494,174			443,671
Total		177,651			144,543			494,174			444,335
Commercial networks
Product		115,409			47,073			304,732			130,903
Service		11,568			8,463			31,831			26,150
Total		126,977			55,536			336,563			157,053
Government systems
Product		186,456			128,651			495,697			392,291
Service		63,610			53,107			184,603			161,276
Total		250,066			181,758			680,300			553,567
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	554,694		$	381,837		$	1,511,037		$	1,154,955

Operating profits (losses):
Satellite services	$	(10,196	)	$	1,681		$	(64,971	)	$	33,140
Commercial networks		(31,219	)		(53,505	)		(117,424	)		(179,007	)
Government systems		49,909			29,675			119,727			96,488
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		8,494			(22,149	)		(62,668	)		(49,379	)
Corporate		—			—			—			—
Amortization of acquired intangible assets		(2,487	)		(3,177	)		(7,375	)		(9,757	)
Income (loss) from operations	$	6,007		$	(25,326	)	$	(70,043	)	$	(59,136	)

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, 2018 and March 31, 2018 were as follows:

	As of December 31, 2018		As of March 31, 2018
	(In thousands)
Segment assets:
Satellite services	$	77,548	$	66,830
Commercial networks		230,057		211,447
Government systems		363,319		337,451
Total segment assets		670,924		615,728
Corporate assets		2,958,792		2,798,381
Total assets	$	3,629,716	$	3,414,109

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

	Other Acquired Intangible Assets, Net				Goodwill
	As of December 31, 2018		As of March 31, 2018		As of December 31, 2018		As of March 31, 2018
	(In thousands)
Satellite services	$	11,751	$	16,580	$	13,694	$	13,991
Commercial networks		2,183		3,340		43,955		44,011
Government systems		10,826		11,942		63,857		63,083
Total	$	24,760	$	31,862	$	121,506	$	121,085

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2018 and 2017 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
	(In thousands)
Satellite services	$	1,183	$	2,031	$	3,776	$	6,297
Commercial networks		386		385		1,157		1,178
Government systems		918		761		2,442		2,282
Total amortization of acquired intangible assets	$	2,487	$	3,177	$	7,375	$	9,757