Segment Information

6 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

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, Prepaid 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.

As described in Note 1 — Basis of Presentation and Note 4 — 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 Technologies, Inc. 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. Therefore, the discontinued operations have been excluded from segment results for all periods presented. Further, in accordance with the authoritative guidance for segment reporting (ASC 280-10), if the discontinued operation is part of a reportable segment but not the entire reportable segment, the restatement should include a reasonable reallocation of costs previously allocated to a discontinued operation 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.

Segment revenues and operating profits (losses) for the three and six months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended						Six Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		300,547			300,110			612,647			574,227
Total		300,547			300,110			612,647			574,227
Commercial networks
Product		159,831			118,935			253,406			220,466
Service		20,196			15,871			39,405			32,936
Total		180,027			134,806			292,811			253,402
Government systems
Product		95,030			102,120			170,700			206,231
Service		81,079			72,121			151,959			146,077
Total		176,109			174,241			322,659			352,308
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	656,683		$	609,157		$	1,228,117		$	1,179,937
Operating profits (losses):
Satellite services	$	(6,066	)	$	14,313		$	(4,721	)	$	24,255
Commercial networks		(796	)		(52,012	)		(50,176	)		(96,113	)
Government systems		15,385			20,680			12,436			46,503
Elimination of intersegment operating    profits (loss)		—			—			—			—
Segment operating profit (loss) before corporate    and amortization of acquired intangible    assets		8,523			(17,019	)		(42,461	)		(25,355	)
Corporate		—			—			—			—
Amortization of acquired intangible    assets		(7,379	)		(7,399	)		(14,902	)		(13,328	)
Income (loss) from operations	$	1,144		$	(24,418	)	$	(57,363	)	$	(38,683	)

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, 2022 and March 31, 2022 were as follows:

	As of  September 30, 2022		As of  March 31, 2022
	(In thousands)
Segment assets:
Satellite services	$	411,774	$	444,976
Commercial networks		259,646		202,941
Government systems		265,801		266,641
Total segment assets		937,221		914,558
Corporate assets		5,287,810		5,199,686
Assets of discontinued operations		285,249		275,102
Total assets	$	6,510,280	$	6,389,346

Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2022 and March 31, 2022 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of  September 30, 2022		As of  March 31, 2022		As of  September 30, 2022		As of  March 31, 2022
	(In thousands)
Satellite services	$	209,599	$	233,740	$	76,187	$	81,972
Commercial networks		—		—		43,945		44,050
Government systems		1,674		2,303		41,871		42,688
Total	$	211,273	$	236,043	$	162,003	$	168,710

Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2022 and 2021 was as follows:

	Three Months Ended				Six Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
	(In thousands)
Satellite services	$	7,088	$	7,097	$	14,316	$	12,419
Commercial networks		—		—		—		—
Government systems		291		302		586		909
Total amortization of acquired    intangible assets	$	7,379	$	7,399	$	14,902	$	13,328

Revenues by geographic area for the three and six months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended		Six Months Ended
	September 30, 2022		September 30, 2022
	(In thousands)
U.S. customers	$	557,457	$	1,037,485
Non-U.S. customers (each country individually insignificant)		99,226		190,632
Total revenues	$	656,683	$	1,228,117
	Three Months Ended		Six Months Ended
	September 30, 2021		September 30, 2021
	(In thousands)
U.S. customers	$	508,944	$	998,193
Non-U.S. customers (each country individually insignificant)		100,213		181,744
Total revenues	$	609,157	$	1,179,937

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