Segment Information

9 Months Ended

Dec. 31, 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. 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. On January 3, 2023, subsequent to quarter end, the Company completed the Link-16 TDL Sale. See Note 4 — Discontinued Operations for additional information.

Segment revenues and operating profits (losses) for the three and nine months ended December 31, 2022 and 2021 were as follows:

	Three Months Ended						Nine Months Ended
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		302,412			309,711			915,059			883,938
Total		302,412			309,711			915,059			883,938
Commercial networks
Product		147,163			123,059			400,569			343,525
Service		20,060			16,618			59,465			49,554
Total		167,223			139,677			460,034			393,079
Government systems
Product		102,152			103,649			282,200			314,830
Service		79,657			72,230			232,766			218,585
Total		181,809			175,879			514,966			533,415
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	651,444		$	625,267		$	1,890,059		$	1,810,432
Operating profits (losses):
Satellite services	$	(8,421	)	$	11,459		$	(13,142	)	$	35,714
Commercial networks		(40,266	)		(51,687	)		(90,442	)		(147,800	)
Government systems		24,809			19,028			42,655			68,444
Elimination of intersegment operating    profits (loss)		—			—			—			—
Segment operating profit (loss) before corporate    and amortization of acquired intangible    assets		(23,878	)		(21,200	)		(60,929	)		(43,642	)
Corporate		—			—			—			—
Amortization of acquired intangible    assets		(7,433	)		(7,531	)		(22,335	)		(20,859	)
Income (loss) from operations	$	(31,311	)	$	(28,731	)	$	(83,264	)	$	(64,501	)

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 December 31, 2022 and March 31, 2022 were as follows:

	As of  December 31, 2022		As of  March 31, 2022
	(In thousands)
Segment assets:
Satellite services	$	421,343	$	444,976
Commercial networks		301,408		202,941
Government systems		279,576		266,641
Total segment assets		1,002,327		914,558
Corporate assets		5,516,193		5,199,686
Assets of discontinued operations		283,404		275,102
Total assets	$	6,801,924	$	6,389,346

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

	Other Acquired Intangible Assets, Net				Goodwill
	As of  December 31, 2022		As of  March 31, 2022		As of  December 31, 2022		As of  March 31, 2022
	(In thousands)
Satellite services	$	205,776	$	233,740	$	79,947	$	81,972
Commercial networks		—		—		44,056		44,050
Government systems		1,398		2,303		42,290		42,688
Total	$	207,174	$	236,043	$	166,293	$	168,710

Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2022 and 2021 was as follows:

	Three Months Ended				Nine Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
	(In thousands)
Satellite services	$	7,142	$	7,231	$	21,458	$	19,650
Commercial networks		—		—		—		—
Government systems		291		300		877		1,209
Total amortization of acquired    intangible assets	$	7,433	$	7,531	$	22,335	$	20,859

Revenues by geographic area for the three and nine months ended December 31, 2022 and 2021 were as follows:

	Three Months Ended		Nine Months Ended
	December 31, 2022		December 31, 2022
	(In thousands)
U.S. customers	$	542,702	$	1,590,535
Non-U.S. customers (each country individually insignificant)		108,742		299,524
Total revenues	$	651,444	$	1,890,059
	Three Months Ended		Nine Months Ended
	December 31, 2021		December 31, 2021
	(In thousands)
U.S. customers	$	527,755	$	1,531,176
Non-U.S. customers (each country individually insignificant)		97,512		279,256
Total revenues	$	625,267	$	1,810,432

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