Segment Information

3 Months Ended

Jun. 30, 2019

Note 12 — 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 residential customers, customers accessing our services via our Community and Urban Wi-Fi hotspot distribution channels, 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, 2019 and 2018 were as follows:

	Three Months Ended
	June 30, 2019			June 30, 2018
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—
Service		196,815			153,561
Total		196,815			153,561
Commercial networks
Product		64,901			85,133
Service		14,111			9,933
Total		79,012			95,066
Government systems
Product		198,714			132,996
Service		62,496			57,246
Total		261,210			190,242
Elimination of intersegment revenues		—			—
Total revenues	$	537,037		$	438,869

Operating profits (losses):
Satellite services	$	(2,070	)	$	(29,936	)
Commercial networks		(49,861	)		(47,008	)
Government systems		45,903			24,918
Elimination of intersegment operating profits		—			—
Segment operating loss before corporate and amortization of acquired intangible assets		(6,028	)		(52,026	)
Corporate		—			—
Amortization of acquired intangible assets		(2,037	)		(2,453	)
Loss from operations	$	(8,065	)	$	(54,479	)

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, 2019 and March 31, 2019 were as follows:

	As of June 30, 2019		As of March 31, 2019
	(In thousands)
Segment assets:
Satellite services	$	78,854	$	85,907
Commercial networks		189,615		183,200
Government systems		439,739		408,422
Total segment assets		708,208		677,529
Corporate assets		3,554,078		3,237,758
Total assets	$	4,262,286	$	3,915,287

Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2019 and March 31, 2019 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of June 30, 2019		As of March 31, 2019		As of June 30, 2019		As of March 31, 2019
	(In thousands)
Satellite services	$	9,721	$	10,453	$	13,667	$	13,617
Commercial networks		1,413		1,798		43,973		43,933
Government systems		9,220		10,050		63,975		64,169
Total	$	20,354	$	22,301	$	121,615	$	121,719

Amortization of acquired intangible assets by segment for the three months ended June 30, 2019 and 2018 was as follows:

	Three Months Ended
	June 30, 2019		June 30, 2018
	(In thousands)
Satellite services	$	855	$	1,305
Commercial networks		386		385
Government systems		796		763
Total amortization of acquired intangible assets	$	2,037	$	2,453