Segment Information

12 Months Ended

Mar. 29, 2013

Segment Information

Note 15 — 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 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, IP-based secure fixed and mobile 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.

As discussed further in Note 1, included in the government systems segment operating profit for fiscal year 2011 is an $8.5 million forward loss recorded on a government satellite communications program. As discussed in Note 1, also included in the government systems segment operating profit for fiscal year 2011 is an additional $5.0 million in contract-related reserves for potential cost adjustments on several multi-year U.S. government cost reimbursable contracts, which resulted in a decrease to revenues and earnings. The Company’s satellite services segment operating profit for fiscal year 2011 reflects a $5.2 million benefit to cost of service revenues related to a satellite capacity contract liability acquired in the WildBlue acquisition and release of future payment liabilities related thereto.

Segment revenues and operating profits (losses) for the fiscal years ended March 29, 2013, March 30, 2012 and April 1, 2011 were as follows:

	Fiscal Years Ended
	March 29, 2013			March 30, 2012			April 1, 2011
	(In thousands)
Revenues:
Satellite Services
Product	$	4,715		$	2,998		$	5,551
Service		272,272			219,674			229,401
Total		276,987			222,672			234,952
Commercial Networks
Product		295,469			229,941			167,446
Service		19,471			21,736			15,697
Total		314,940			251,677			183,143
Government Systems
Product		364,233			309,125			350,941
Service		163,530			80,153			33,170
Total		527,763			389,278			384,111
Elimination of intersegment revenues		—			—			—
Total revenues	$	1,119,690		$	863,627		$	802,206
Operating (losses) profits:
Satellite Services	$	(79,172	)	$	(16,790	)	$	38,228
Commercial Networks		(11,079	)		(12,974	)		(9,482	)
Government Systems		85,473			50,690			29,872
Elimination of intersegment operating profits		—			—			—
Segment operating (loss) profit before corporate and amortization of acquired intangible assets		(4,778	)		20,926			58,618
Corporate		—			—			44
Amortization of acquired intangible assets		(15,584	)		(18,732	)		(19,409	)
(Loss) income from operations	$	(20,362	)	$	2,194		$	39,253

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, 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 March 29, 2013 and March 30, 2012 were as follows:

	As of March 29, 2013		As of March 30, 2012
	(In thousands)
Segment assets
Satellite Services	$	89,945	$	95,671
Commercial Networks		175,230		170,553
Government Systems		238,057		219,199
Total segment assets		503,232		485,423
Corporate assets		1,290,840		1,241,730
Total assets	$	1,794,072	$	1,727,153

Other acquired intangible assets, net and goodwill included in segment assets as of March 29, 2013 and March 30, 2012 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of March 29, 2013		As of March 30, 2012		As of March 29, 2013		As of March 30, 2012
	(In thousands)
Satellite Services	$	39,989	$	52,390	$	9,809	$	9,809
Commercial Networks		1,520		2,186		43,648		43,739
Government Systems		5,661		8,465		29,543		29,913
Total	$	47,170	$	63,041	$	83,000	$	83,461

Amortization of acquired intangible assets by segment for the fiscal years ended March 29, 2013, March 30, 2012 and April 1, 2011 was as follows:

	Fiscal Years Ended
	March 29, 2013		March 30, 2012		April 1, 2011
	(In thousands)
Satellite Services	$	12,401	$	12,951	$	12,951
Commercial Networks		666		3,224		4,001
Government Systems		2,517		2,557		2,457
Total amortization of acquired intangible assets	$	15,584	$	18,732	$	19,409

Revenue information by geographic area for the fiscal years ended March 29, 2013, March 30, 2012 and April 1, 2011 was as follows:

	Fiscal Years Ended
	March 29, 2013		March 30, 2012		April 1, 2011
	(In thousands)
United States	$	840,899	$	680,655	$	667,060
Europe, Middle East and Africa		171,853		114,382		95,356
Asia, Pacific		56,195		22,683		24,203
North America other than United States		39,158		32,657		8,321
Central and Latin America		11,585		13,250		7,266
Total	$	1,119,690	$	863,627	$	802,206

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 $18.5 million and $18.7 million at March 29, 2013 and March 30, 2012, respectively.