Segment Information

12 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Note 16 — 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 a wide range of satellite-based broadband and narrowband services to a diverse customer base, including commercial airlines, maritime commercial shipping fleets, offshore service vessel operators, commercial fishing companies, residential customers, and small and medium-sized businesses and enterprises. The Company’s commercial networks segment develops and offers a wide array of advanced satellite and wireless products, antenna systems and networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband

services 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 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 — The Company and a Summary of Its Significant Accounting Policies 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. Therefore, the discontinued operations have been excluded from segment results for all periods presented prior to the date the Link-16 TDL Sale was completed. 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. 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 fiscal years ended March 31, 2024, 2023 and 2022 were as follows:

	Fiscal Years Ended
	March 31, 2024			March 31, 2023			March 31, 2022
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—
Service		2,141,775			1,210,733			1,188,816
Total		2,141,775			1,210,733			1,188,816
Commercial networks
Product		685,868			530,374			443,435
Service		91,973			82,273			68,664
Total		777,841			612,647			512,099
Government systems
Product		593,296			423,752			417,291
Service		770,846			309,026			298,973
Total		1,364,142			732,778			716,264
Elimination of intersegment revenues		—			—			—
Total revenues	$	4,283,758		$	2,556,158		$	2,417,179
Operating profits (losses):
Satellite services	$	(770,883	)	$	(41,045	)	$	31,559
Commercial networks		(134,956	)		(145,319	)		(209,093	)
Government systems		243,198			60,219			93,122
Elimination of intersegment operating profits (losses)		—			—			—
Segment operating profit (loss) before corporate and    amortization of acquired intangible assets		(662,641	)		(126,145	)		(84,412	)
Corporate		—			—			—
Amortization of acquired intangible assets		(227,165	)		(29,811	)		(28,729	)
Income (loss) from operations	$	(889,806	)	$	(155,956	)	$	(113,141	)

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, 2024 and 2023 were as follows:

	As of March 31, 2024		As of March 31, 2023
	(In thousands)
Segment assets:
Satellite services	$	3,518,456	$	424,881
Commercial networks		398,821		328,828
Government systems		1,243,708		293,780
Total segment assets		5,160,985		1,047,489
Corporate assets		11,168,379		6,682,848
Total assets	$	16,329,364	$	7,730,337

Other acquired intangible assets, net and goodwill included in segment assets as of March 31, 2024 and 2023 were as follows:

	Other Acquired Intangible    Assets, Net				Goodwill
	As of March 31, 2024		As of March 31, 2023		As of March 31, 2024		As of March 31, 2023
	(In thousands)
Satellite services	$	2,174,628	$	200,097	$	1,055,929	$	80,589
Commercial networks		—		—		41,048		41,014
Government systems		369,839		1,108		524,786		36,939
Total	$	2,544,467	$	201,205	$	1,621,763	$	158,542

Amortization of acquired intangible assets by segment for the fiscal years ended March 31, 2024, 2023 and 2022 was as follows:

	Fiscal Years Ended
	March 31,  2024		March 31,  2023		March 31,  2022
	(In thousands)
Satellite services	$	197,563	$	28,641	$	27,220
Commercial networks		—		—		—
Government systems		29,602		1,170		1,509
Total amortization of acquired intangible assets	$	227,165	$	29,811	$	28,729

Revenues by geographic area for the fiscal years ended March 31, 2024, 2023 and 2022 were as follows:

	Fiscal Years Ended
	March 31,  2024		March 31,  2023		March 31,  2022
	(In thousands)
U.S. customers	$	3,029,303	$	2,147,651	$	2,036,019
Non U.S. customers (each country individually insignificant)		1,254,455		408,507		381,160
Total revenues	$	4,283,758	$	2,556,158	$	2,417,179

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 approximately $2.0 billion at March 31, 2024 and approximately $262.4 million at March 31, 2023, including a net book value of long-lived assets located in the United Kingdom of $1.3 billion (primarily related to the Inmarsat Acquisition) and an insignificant amount as of March 31, 2024 and March 31, 2023, respectively.