Segment Information

9 Months Ended

Dec. 28, 2012

Segment Information

Note 11 — 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 retail and wholesale satellite-based broadband internet services for its consumer, enterprise and mobile broadband customers in the United States, as well as managed network services for the satellite communication systems of the Company’s consumer, enterprise and mobile broadband customers worldwide. The Company’s commercial networks segment develops and produces a variety of advanced end-to-end satellite and other wireless communication systems and ground networking equipment and products, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and produces network-centric, internet protocol (IP)-based secure government communications systems, products, services 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.

Segment revenues and operating profits (losses) for the three and nine months ended December 28, 2012 and December 30, 2011 were as follows:

	Three Months Ended						Nine Months Ended
	December 28, 2012			December 30, 2011			December 28, 2012			December 30, 2011
	(In thousands)
Revenues
Satellite Services
Product	$	653		$	734		$	4,159		$	2,312
Service		71,097			54,916			194,217			165,616
Total		71,750			55,650			198,376			167,928
Commercial Networks
Product		64,241			49,092			216,116			155,451
Service		4,411			5,357			15,208			15,266
Total		68,652			54,449			231,324			170,717
Government Systems
Product		99,800			72,036			260,623			233,256
Service		46,240			22,829			120,704			51,188
Total		146,040			94,865			381,327			284,444
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	286,442		$	204,964		$	811,027		$	623,089
Operating (losses) profits
Satellite Services	$	(18,356	)	$	(1,359	)	$	(60,245	)	$	(1,165	)
Commercial Networks		(3,399	)		(5,159	)		(7,304	)		(11,270	)
Government Systems		26,981			13,062			66,232			34,775
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		5,226			6,544			(1,317	)		22,340
Corporate		—			—			—			—
Amortization of acquired intangible assets		(3,960	)		(4,752	)		(12,065	)		(14,291	)
Income (loss) from operations	$	1,266		$	1,792		$	(13,382	)	$	8,049

Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property, plant and equipment, including its satellites, gateways 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 28, 2012 and March 30, 2012 were as follows:

	As of December 28, 2012		As of March 30, 2012
	(In thousands)
Segment assets
Satellite Services	$	94,089	$	95,671
Commercial Networks		183,186		170,553
Government Systems		221,782		219,199
Total segment assets		499,057		485,423
Corporate assets		1,249,878		1,241,730
Total assets	$	1,748,935	$	1,727,153

Other acquired intangible assets, net and goodwill included in segment assets as of December 28, 2012 and March 30, 2012 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of December 28, 2012		As of March 30, 2012		As of December 28, 2012		As of March 30, 2012
	(In thousands)
Satellite Services	$	42,755	$	52,390	$	9,809	$	9,809
Commercial Networks		1,662		2,186		43,729		43,739
Government Systems		6,652		8,465		30,023		29,913
Total	$	51,069	$	63,041	$	83,561	$	83,461

Amortization of acquired intangible assets by segment for the three and nine months ended December 28, 2012 and December 30, 2011 was as follows:

	Three Months Ended				Nine Months Ended
	December 28, 2012		December 30, 2011		December 28, 2012		December 30, 2011
	(In thousands)
Satellite Services	$	3,159	$	3,238	$	9,635	$	9,714
Commercial Networks		163		883		523		2,650
Government Systems		638		631		1,907		1,927
Total amortization of acquired intangible assets	$	3,960	$	4,752	$	12,065	$	14,291

Revenue information by geographic area for the three and nine months ended December 28, 2012 and December 30, 2011 was as follows:

	Three Months Ended				Nine Months Ended
	December 28, 2012		December 30, 2011		December 28, 2012		December 30, 2011
	(In thousands)
United States	$	221,445	$	165,660	$	606,669	$	495,621
Europe, Middle East and Africa		39,903		25,107		126,448		82,347
Asia, Pacific		14,256		4,586		35,148		16,583
North America other than United States		8,786		7,763		33,073		17,476
Central and Latin America		2,052		1,848		9,689		11,062
Total revenues	$	286,442	$	204,964	$	811,027	$	623,089

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 $19.6 million and $18.7 million at December 28, 2012 and March 30, 2012, respectively,