Segment Information

3 Months Ended

Jul. 01, 2011

Note 11 — Segment Information

The Company’s reporting segments, comprised of the government systems, commercial networks and satellite services segments, are primarily distinguished by the type of customer and the related contractual requirements. The Company’s government systems segment develops and produces network-centric, IP-based secure government communications systems, products and solutions. The more regulated government environment is subject to unique contractual requirements and possesses economic characteristics which differ from the commercial networks and satellite services segments. The Company’s commercial networks segment develops and produces a variety of advanced end-to-end satellite communication systems and ground networking equipment and products. The Company’s satellite services segment complements both the government systems and commercial networks segments by providing wholesale and retail satellite-based broadband internet services in the United States via the Company’s satellite and capacity agreements, as well as managed network services for the satellite communication systems of the Company’s consumer, enterprise and mobile broadband customers. The Company’s satellite services segment includes the Company’s acquired WildBlue business and the Company’s ViaSat-1 satellite-related activities. 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 discussed further in Note 1, included in the government systems segment operating profit for the three months ended July 2, 2010 is an $8.5 million forward loss recorded on a government satellite communications program.


	Three Months Ended
	July 1, 2011			July 2, 2010
	(In thousands)
Revenues
Government Systems	$	86,169		$	88,845
Commercial Networks		52,069			45,619
Satellite Services		56,863			57,540
Elimination of intersegment revenues		—			—

Total revenues	$	195,101		$	192,004

Operating profits (losses)
Government Systems	$	7,380		$	1,658
Commercial Networks		(3,240	)		(1,170	)
Satellite Services		1,933			11,461
Elimination of intersegment operating profits		—			—

Segment operating profit before corporate and amortization of acquired intangible assets		6,073			11,949
Corporate		—			44
Amortization of acquired intangible assets		(4,772	)		(4,610	)

Income from operations	$	1,301		$	7,383

Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. Segment assets as of July 1, 2011 and April 1, 2011 were as follows:


	As of		As of
	July 1, 2011		April 1, 2011
	(In thousands)
Segment assets
Government Systems	$	225,948	$	228,194
Commercial Networks		141,310		133,158
Satellite Services		94,657		93,857

Total segment assets		461,915		455,209
Corporate assets		952,330		950,539

Total assets	$	1,414,245	$	1,405,748

Other acquired intangible assets, net and goodwill included in segment assets as of July 1, 2011 and April 1, 2011 were as follows:


	Acquired Intangible
	Assets, Net				Goodwill
	July 1, 2011		April 1, 2011		July 1, 2011		April 1, 2011
			(In thousands)
Government Systems	$	10,468	$	11,157	$	29,988	$	30,023
Commercial Networks		4,517		5,391		43,909		43,700
Satellite Services		62,103		65,341		9,805		9,809

Total	$	77,088	$	81,889	$	83,702	$	83,532

Amortization of acquired intangible assets by segment for the three months ended July 1, 2011 and July 2, 2010 was as follows:


	Three Months Ended
	July 1, 2011		July 2, 2010
	(In thousands)
Government Systems	$	651	$	269
Commercial Networks		880		1,103
Satellite Services		3,241		3,238

Total amortization of acquired intangible assets	$	4,772	$	4,610

Revenue information by geographic area for the three months ended July 1, 2011 and July 2, 2010 was as follows:


	Three Months Ended
	July 1, 2011		July 2, 2010
	(In thousands)
United States	$	154,201	$	161,165
Europe, Middle East and Africa		26,904		20,614
Asia, Pacific		7,178		6,833
North America other than United States		4,224		1,322
Latin America		2,594		2,070

Total revenues	$	195,101	$	192,004

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 $11.5 million and $7.9 million at July 1, 2011 and April 1, 2011, respectively.