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Segment Information | 6 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | Note 12 — Segment Information The Company’s reportable segments (satellite services, commercial networks and government systems) 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, Prepaid Internet users, enterprises, commercial airlines and other aircraft, maritime vessels (acquired through the Inmarsat Acquisition) 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 (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 and narrowband products and services (acquired through the Inmarsat Acquisition) 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. As described in Note 1 — Basis of Presentation and Note 5 — Discontinued Operations, on October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Link-16 TDL Business to L3Harris. In accordance with ASC 205-20, the Company determined that the Link-16 TDL Business met held-for-sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023. Accordingly, the segment information for the periods prior to the measurement date of a discontinued operation that is part of a reportable segment is required to be restated to reflect the discontinued operation classification. However, the discontinued operations have been excluded from segment results for all periods presented. Further, as the discontinued operation is part of a reportable segment but not the entire reportable segment, the costs previously allocated to a discontinued operation have been reasonably reallocated to the remaining operating segments. Therefore, certain corporate and other indirect costs previously allocated to the Link-16 TDL Business have been allocated across all three segments for the periods presented. On January 3, 2023, the Company completed the Link-16 TDL Sale. See Note 5 — Discontinued Operations for additional information. Segment revenues and operating profits (losses) for the three and six months ended September 30, 2023 and 2022 were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |  |  | September 30, 2023 |  |  | September 30, 2022 |
|  | (In thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Satellite services |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Service |  |  | 585,334 |  |  |  | 300,547 |  |  |  | 983,818 |  |  |  | 612,647 |
Total |  |  | 585,334 |  |  |  | 300,547 |  |  |  | 983,818 |  |  |  | 612,647 |
Commercial networks |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 251,111 |  |  |  | 159,831 |  |  |  | 378,992 |  |  |  | 253,406 |
Service |  |  | 24,087 |  |  |  | 20,196 |  |  |  | 44,801 |  |  |  | 39,405 |
Total |  |  | 275,198 |  |  |  | 180,027 |  |  |  | 423,793 |  |  |  | 292,811 |
Government systems |  |  |  |  |  |  |  |  |  |  |  |
Product |  |  | 150,618 |  |  |  | 101,128 |  |  |  | 259,109 |  |  |  | 180,048 |
Service |  |  | 214,265 |  |  |  | 81,857 |  |  |  | 338,486 |  |  |  | 153,109 |
Total |  |  | 364,883 |  |  |  | 182,985 |  |  |  | 597,595 |  |  |  | 333,157 |
Elimination of intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total revenues |  | $ | 1,225,415 |  |  | $ | 663,559 |  |  | $ | 2,005,206 |  |  | $ | 1,238,615 |
Operating profits (losses): |  |  |  |  |  |  |  |  |  |  |  |
Satellite services |  | $ | (832,046 | ) |  | $ | (6,066 | ) |  | $ | (820,608 | ) |  | $ | (4,721 | )
Commercial networks |  |  | 43,083 |  |  |  | (796 | ) |  |  | (3,629 | ) |  |  | (50,176 | )
Government systems |  |  | 65,670 |  |  |  | 18,926 |  |  |  | 87,239 |  |  |  | 17,846 |
Elimination of intersegment operating profits (losses) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment operating profit (loss) before corporate and amortization of acquired intangible assets |  |  | (723,293 | ) |  |  | 12,064 |  |  |  | (736,998 | ) |  |  | (37,051 | )
Corporate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Amortization of acquired intangible assets |  |  | (81,374 | ) |  |  | (7,379 | ) |  |  | (109,185 | ) |  |  | (14,902 | )
Income (loss) from operations |  | $ | (804,667 | ) |  | $ | 4,685 |  |  | $ | (846,183 | ) |  | $ | (51,953 | )
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, 2023 and March 31, 2023 were as follows:
|  | As of September 30, 2023 |  |  | As of March 31, 2023 |
|  | (In thousands) |
Segment assets: |  |  |  |  |  |
Satellite services |  | $ | 3,637,061 |  |  | $ | 424,881 |
Commercial networks |  |  | 411,772 |  |  |  | 328,828 |
Government systems |  |  | 1,107,635 |  |  |  | 293,780 |
Total segment assets |  |  | 5,156,468 |  |  |  | 1,047,489 |
Corporate assets |  |  | 11,915,576 |  |  |  | 6,682,848 |
Total assets |  | $ | 17,072,044 |  |  | $ | 7,730,337 |
Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2023 and March 31, 2023 were as follows:
|  | Other Acquired Intangible Assets, Net |  |  | Goodwill |
|  | As of September 30, 2023 |  |  | As of March 31, 2023 |  |  | As of September 30, 2023 |  |  | As of March 31, 2023 |
|  | (In thousands) |
Satellite services |  | $ | 2,441,089 |  |  | $ | 200,097 |  |  | $ | 891,681 |  |  | $ | 80,589 |
Commercial networks |  |  | — |  |  |  | — |  |  |  | 41,021 |  |  |  | 41,014 |
Government systems |  |  | 330,748 |  |  |  | 1,108 |  |  |  | 442,840 |  |  |  | 36,939 |
Total |  | $ | 2,771,837 |  |  | $ | 201,205 |  |  | $ | 1,375,542 |  |  | $ | 158,542 |
Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2023 and 2022 was as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |  |  | September 30, 2023 |  |  | September 30, 2022 |
|  | (In thousands) |
Satellite services |  | $ | 77,172 |  |  | $ | 7,088 |  |  | $ | 98,823 |  |  | $ | 14,316 |
Commercial networks |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Government systems |  |  | 4,202 |  |  |  | 291 |  |  |  | 10,362 |  |  |  | 586 |
Total amortization of acquired intangible assets |  | $ | 81,374 |  |  | $ | 7,379 |  |  | $ | 109,185 |  |  | $ | 14,902 |
Revenues by geographic area for the three and six months ended September 30, 2023 and 2022 were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2023 |  |  | September 30, 2023 |
|  | (In thousands) |
U.S. customers |  | $ | 877,421 |  |  | $ | 1,470,583 |
Non-U.S. customers (each country individually insignificant) |  |  | 347,994 |  |  |  | 534,623 |
Total revenues |  | $ | 1,225,415 |  |  | $ | 2,005,206 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | September 30, 2022 |  |  | September 30, 2022 |
|  | (In thousands) |
U.S. customers |  | $ | 564,287 |  |  | $ | 1,047,833 |
Non-U.S. customers (each country individually insignificant) |  |  | 99,272 |  |  |  | 190,782 |
Total revenues |  | $ | 663,559 |  |  | $ | 1,238,615 |
The Company distinguishes revenues from external customers by geographic area based on customer location.

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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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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