Segment Information

12 Months Ended

Mar. 31, 2020

Note 15 — 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, Community Internet hotspot users, enterprises, commercial airlines and other 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 fiscal years ended March 31, 2020, 2019 and 2018 were as follows:

	Fiscal Years Ended
	March 31, 2020			March 31, 2019			March 31, 2018
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	664
Service		826,583			684,205			588,623
Total		826,583			684,205			589,287
Commercial networks
Product		289,959			383,547			198,034
Service		54,598			44,857			35,187
Total		344,557			428,404			233,221
Government systems
Product		882,582			709,144			556,849
Service		255,516			246,505			215,268
Total		1,138,098			955,649			772,117
Elimination of intersegment revenues		—			—			—
Total revenues	$	2,309,238		$	2,068,258		$	1,594,625
Operating profits (losses):
Satellite services	$	7,015		$	(64,321	)	$	12,018
Commercial networks		(186,877	)		(166,613	)		(229,105	)
Government systems		225,894			179,969			137,131
Elimination of intersegment operating profits		—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		46,032			(50,965	)		(79,956	)
Corporate		—			—			—
Amortization of acquired intangible assets		(7,611	)		(9,655	)		(12,231	)
Income (loss) from operations	$	38,421		$	(60,620	)	$	(92,187	)

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 March 31, 2020 and 2019 were as follows:

	As of March 31, 2020		As of March 31, 2019
	(In thousands)
Segment assets:
Satellite services	$	86,252	$	85,907
Commercial networks		188,269		183,200
Government systems		484,237		408,422
Total segment assets		758,758		677,529
Corporate assets		4,125,110		3,237,758
Total assets	$	4,883,868	$	3,915,287

Other acquired intangible assets, net and goodwill included in segment assets as of March 31, 2020 and 2019 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of March 31, 2020		As of March 31, 2019		As of March 31, 2020		As of March 31, 2019
	(In thousands)
Satellite services	$	7,368	$	10,453	$	13,489	$	13,617
Commercial networks		257		1,798		43,981		43,933
Government systems		6,814		10,050		63,727		64,169
Total	$	14,439	$	22,301	$	121,197	$	121,719

Amortization of acquired intangible assets by segment for the fiscal years ended March 31, 2020, 2019 and 2018 was as follows:

	Fiscal Years Ended
	March 31, 2020		March 31, 2019		March 31, 2018
	(In thousands)
Satellite services	$	2,897	$	4,857	$	7,622
Commercial networks		1,539		1,542		1,563
Government systems		3,175		3,256		3,046
Total amortization of acquired intangible assets	$	7,611	$	9,655	$	12,231

Revenue information by geographic area for the fiscal years ended March 31, 2020, 2019 and 2018 was as follows:

	Fiscal Years Ended
	March 31, 2020		March 31, 2019		March 31, 2018
	(In thousands)
U.S. customers	$	2,057,458	$	1,836,304	$	1,403,473
Non U.S. customers (each country individually insignificant)		251,780		231,954		191,152
Total revenues	$	2,309,238	$	2,068,258	$	1,594,625

The Company distinguishes revenues from external customers by geographic area based on customer location.

The net book value of long-lived assets located outside the United States was $64.7 million at March 31, 2020 and $70.4 million at March 31, 2019.