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Segment Information | 6 Months Ended
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Sep. 30, 2017
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, ASIC 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 (IP)-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, 2017 and 2016 were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2017 |  |  | September 30, 2016 |  |  | September 30, 2017 |  |  | September 30, 2016 |
|  | (In thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Satellite services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product (1) |  | $ | 214 |  |  | $ | 6,782 |  |  | $ | 431 |  |  | $ | 13,467 |
Service |  |  | 147,364 |  |  |  | 149,502 |  |  |  | 299,361 |  |  |  | 295,210 |
Total |  |  | 147,578 |  |  |  | 156,284 |  |  |  | 299,792 |  |  |  | 308,677 |
Commercial networks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 47,347 |  |  |  | 58,445 |  |  |  | 83,830 |  |  |  | 117,041 |
Service |  |  | 8,922 |  |  |  | 7,018 |  |  |  | 17,687 |  |  |  | 13,975 |
Total |  |  | 56,269 |  |  |  | 65,463 |  |  |  | 101,517 |  |  |  | 131,016 |
Government systems |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 134,222 |  |  |  | 122,008 |  |  |  | 263,640 |  |  |  | 217,403 |
Service |  |  | 55,005 |  |  |  | 55,403 |  |  |  | 108,169 |  |  |  | 105,192 |
Total |  |  | 189,227 |  |  |  | 177,411 |  |  |  | 371,809 |  |  |  | 322,595 |
Elimination of intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total revenues |  | $ | 393,074 |  |  | $ | 399,158 |  |  | $ | 773,118 |  |  | $ | 762,288 |
Operating profits (losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Satellite services (1) |  | $ | 12,616 |  |  | $ | 32,550 |  |  | $ | 31,459 |  |  | $ | 63,417 |
Commercial networks |  |  | (59,377 | ) |  |  | (40,868 | ) |  |  | (125,502 | ) |  |  | (79,399 | )
Government systems |  |  | 34,221 |  |  |  | 29,009 |  |  |  | 66,813 |  |  |  | 46,964 |
Elimination of intersegment operating profits |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment operating (loss) profit before corporate and amortization of acquired intangible assets |  |  | (12,540 | ) |  |  | 20,691 |  |  |  | (27,230 | ) |  |  | 30,982 |
Corporate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Amortization of acquired intangible assets |  |  | (3,320 | ) |  |  | (2,277 | ) |  |  | (6,580 | ) |  |  | (4,790 | )
(Loss) income from operations |  | $ | (15,860 | ) |  | $ | 18,414 |  |  | $ | (33,810 | ) |  | $ | 26,192 |
(1) | Product revenues and operating profits in the satellite services segment for the three and six months ended September 30, 2016 included $6.6 million and $13.2 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space Systems/Loral, Inc. and its former parent company Loral Space & Communications, Inc. As of March 31, 2017, all payments pursuant to this settlement agreement had been recorded and no further impacts to the Company’s consolidated financial statements are anticipated related to this settlement agreement.
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, 2017 and March 31, 2017 were as follows:
|  | As of September 30, 2017 |  |  | As of March 31, 2017 |
|  | (In thousands) |
Segment assets: |  |  |  |  |  |  |  |
Satellite services |  | $ | 74,234 |  |  | $ | 81,728 |
Commercial networks |  |  | 192,563 |  |  |  | 179,992 |
Government systems |  |  | 322,467 |  |  |  | 326,242 |
Total segment assets |  |  | 589,264 |  |  |  | 587,962 |
Corporate assets |  |  | 2,698,957 |  |  |  | 2,366,691 |
Total assets |  | $ | 3,288,221 |  |  | $ | 2,954,653 |
Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2017 and March 31, 2017 were as follows:
|  | Other Acquired Intangible Assets, Net |  |  | Goodwill |
|  | As of September 30, 2017 |  |  | As of March 31, 2017 |  |  | As of September 30, 2017 |  |  | As of March 31, 2017 |
|  | (In thousands) |
Satellite services |  | $ | 19,238 |  |  | $ | 21,843 |  |  | $ | 13,814 |  |  | $ | 13,579 |
Commercial networks |  |  | 4,111 |  |  |  | 4,903 |  |  |  | 43,981 |  |  |  | 43,930 |
Government systems |  |  | 13,447 |  |  |  | 14,931 |  |  |  | 62,797 |  |  |  | 62,367 |
Total |  | $ | 36,796 |  |  | $ | 41,677 |  |  | $ | 120,592 |  |  | $ | 119,876 |
Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2017 and 2016 was as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2017 |  |  | September 30, 2016 |  |  | September 30, 2017 |  |  | September 30, 2016 |
|  | (In thousands) |
Satellite services |  | $ | 2,173 |  |  | $ | 1,105 |  |  | $ | 4,267 |  |  | $ | 2,209 |
Commercial networks |  |  | 386 |  |  |  | 411 |  |  |  | 792 |  |  |  | 856 |
Government systems |  |  | 761 |  |  |  | 761 |  |  |  | 1,521 |  |  |  | 1,725 |
Total amortization of acquired intangible assets |  | $ | 3,320 |  |  | $ | 2,277 |  |  | $ | 6,580 |  |  | $ | 4,790 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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