Segment Information

12 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 16 — Segment Information

The Company’s reporting 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 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, 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.

As described in Note 1 — The Company and a Summary of Its Significant Accounting Policies 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, 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 allocated 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 4 — Discontinued Operations for additional information.

Segment revenues and operating profits (losses) for the fiscal years ended March 31, 2023, 2022 and 2021 were as follows:

	Fiscal Years Ended
	March 31, 2023			March 31, 2022			March 31, 2021
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—
Service		1,210,733			1,188,816			868,943
Total		1,210,733			1,188,816			868,943
Commercial networks
Product		530,374			443,435			268,830
Service		82,273			68,664			52,026
Total		612,647			512,099			320,856
Government systems
Product		423,752			417,291			470,543
Service		309,026			298,973			260,536
Total		732,778			716,264			731,079
Elimination of intersegment revenues		—			—			—
Total revenues	$	2,556,158		$	2,417,179		$	1,920,878
Operating profits (losses):
Satellite services	$	(41,045	)	$	31,559		$	26,263
Commercial networks		(145,319	)		(209,093	)		(206,437	)
Government systems		60,219			93,122			139,703
Elimination of intersegment operating profits (losses)		—			—			—
Segment operating profit (loss) before corporate and    amortization of acquired intangible assets		(126,145	)		(84,412	)		(40,471	)
Corporate		—			—			—
Amortization of acquired intangible assets		(29,811	)		(28,729	)		(5,482	)
Income (loss) from operations	$	(155,956	)	$	(113,141	)	$	(45,953	)

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 March 31, 2023 and 2022 were as follows:

	As of March 31,  2023		As of March 31,  2022
	(In thousands)
Segment assets:
Satellite services	$	424,881	$	444,976
Commercial networks		328,828		202,941
Government systems		293,780		266,641
Total segment assets		1,047,489		914,558
Corporate assets		6,682,848		5,199,686
Assets of discontinued operations	—			275,102
Total assets	$	7,730,337	$	6,389,346

Other acquired intangible assets, net and goodwill included in segment assets as of March 31, 2023 and 2022 were as follows:

	Other Acquired Intangible    Assets, Net				Goodwill
	As of March 31,  2023		As of March 31,  2022		As of March 31,  2023		As of March 31,  2022
	(In thousands)
Satellite services	$	200,097	$	233,740	$	80,589	$	81,972
Commercial networks		—		—		41,014		44,050
Government systems		1,108		2,303		36,939		42,688
Total	$	201,205	$	236,043	$	158,542	$	168,710

Amortization of acquired intangible assets by segment for the fiscal years ended March 31, 2023, 2022 and 2021 was as follows:

	Fiscal Years Ended
	March 31,  2023		March 31,  2022		March 31,  2021
	(In thousands)
Satellite services	$	28,641	$	27,220	$	2,164
Commercial networks		—		—		257
Government systems		1,170		1,509		3,061
Total amortization of acquired intangible     assets	$	29,811	$	28,729	$	5,482

Revenues by geographic area for the fiscal years ended March 31, 2023, 2022 and 2021 were as follows:

	Fiscal Years Ended
	March 31,  2023		March 31,  2022		March 31,  2021
	(In thousands)
U.S. customers	$	2,147,651	$	2,036,019	$	1,736,136
Non U.S. customers (each country individually    insignificant)		408,507		381,160		184,742
Total revenues	$	2,556,158	$	2,417,179	$	1,920,878

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 $262.4 million at March 31, 2023 and $145.2 million at March 31, 2022.