Segment Information

9 Months Ended

Dec. 31, 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 the Company’s services via its 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 and nine months ended December 31, 2019 and 2018 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		211,700			177,651			614,232			494,174
Total		211,700			177,651			614,232			494,174
Commercial networks
Product		73,182			115,409			212,226			304,732
Service		11,544			11,568			39,520			31,831
Total		84,726			126,977			251,746			336,563
Government systems
Product		229,908			186,456			661,309			495,697
Service		61,890			63,610			190,230			184,603
Total		291,798			250,066			851,539			680,300
Elimination of intersegment revenues		—		—				—		—
Total revenues	$	588,224		$	554,694		$	1,717,517		$	1,511,037

Operating profits (losses):
Satellite services	$	3,600		$	(10,196	)	$	6,648		$	(64,971	)
Commercial networks		(46,917	)		(31,219	)		(143,559	)		(117,424	)
Government systems		59,142			49,909			167,160			119,727
Elimination of intersegment operating profits		—		—				—		—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		15,825			8,494			30,249			(62,668	)
Corporate		—		—				—		—
Amortization of acquired intangible assets		(1,856	)		(2,487	)		(5,920	)		(7,375	)
Income (loss) from operations	$	13,969		$	6,007		$	24,329		$	(70,043	)

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, 2019 and March 31, 2019 were as follows:

	As of December 31, 2019		As of March 31, 2019
	(In thousands)
Segment assets:
Satellite services	$	80,739	$	85,907
Commercial networks		171,228		183,200
Government systems		484,069		408,422
Total segment assets		736,036		677,529
Corporate assets		3,777,648		3,237,758
Total assets	$	4,513,684	$	3,915,287

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

	Other Acquired Intangible Assets, Net				Goodwill
	As of December 31, 2019		As of March 31, 2019		As of December 31, 2019		As of March 31, 2019
	(In thousands)
Satellite services	$	7,966	$	10,453	$	13,575	$	13,617
Commercial networks		642		1,798		43,959		43,933
Government systems		7,663		10,050		64,211		64,169
Total	$	16,271	$	22,301	$	121,745	$	121,719

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2019 and 2018 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
	(In thousands)
Satellite services	$	678	$	1,183	$	2,383	$	3,776
Commercial networks		384		386		1,156		1,157
Government systems		794		918		2,381		2,442
Total amortization of acquired intangible assets	$	1,856	$	2,487	$	5,920	$	7,375