Segment Information

6 Months Ended

Oct. 04, 2013

Segment Reporting [Abstract]

Segment Information

Note 10 — 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 primarily 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 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.

Segment revenues and operating profits (losses) for the three and six months ended October 4, 2013 and September 28, 2012 were as follows:

	Three Months Ended						Six Months Ended
	October 4, 2013			September 28, 2012			October 4, 2013			September 28, 2012
	(In thousands)
Revenues:
Satellite Services
Product	$	4		$	2,975		$	20		$	3,506
Service		100,347			64,332			186,178			123,120
Total		100,351			67,307			186,198			126,626
Commercial Networks
Product		105,146			81,113			196,970			151,875
Service		5,041			5,424			10,616			10,797
Total		110,187			86,537			207,586			162,672
Government Systems
Product		105,241			84,387			195,562			160,823
Service		38,102			44,591			85,637			74,464
Total		143,343			128,978			281,199			235,287
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	353,881		$	282,822		$	674,983		$	524,585
Operating profits (losses):
Satellite Services	$	(14,638	)	$	(19,373	)	$	(27,616	)	$	(41,889	)
Commercial Networks		(366	)		(1,836	)		2,970			(3,905	)
Government Systems		18,290			24,391			34,857			39,251
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		3,286			3,182			10,211			(6,543	)
Corporate		—			—			—			—
Amortization of acquired intangible assets		(3,796	)		(4,041	)		(7,297	)		(8,105	)
(Loss) income from operations	$	(510	)	$	(859	)	$	2,914		$	(14,648	)

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 October 4, 2013 and March 29, 2013 were as follows:

	As of October 4, 2013		As of March 29, 2013
	(In thousands)
Segment assets:
Satellite Services	$	82,928	$	89,945
Commercial Networks		236,538		175,230
Government Systems		206,740		238,057
Total segment assets		526,206		503,232
Corporate assets		1,373,347		1,290,840
Total assets	$	1,899,553	$	1,794,072

Other acquired intangible assets, net and goodwill included in segment assets as of October 4, 2013 and March 29, 2013 were as follows:

	Other Acquired  Intangible Assets, Net				Goodwill
	As of October 4, 2013		As of March 29, 2013		As of October 4, 2013		As of March 29, 2013
	(In thousands)
Satellite Services	$	34,459	$	39,989	$	9,809	$	9,809
Commercial Networks		3,268		1,520		43,754		43,648
Government Systems		4,881		5,661		29,576		29,543
Total	$	42,608	$	47,170	$	83,139	$	83,000

Amortization of acquired intangible assets by segment for the three and six months ended October 4, 2013 and September 28, 2012 was as follows:

	Three Months Ended				Six Months Ended
	October 4, 2013		September 28, 2012		October 4, 2013		September 28, 2012
	(In thousands)
Satellite Services	$	2,765	$	3,238	$	5,530	$	6,476
Commercial Networks		509		177		652		361
Government Systems		522		626		1,115		1,268
Total amortization of acquired intangible assets	$	3,796	$	4,041	$	7,297	$	8,105

Revenue information by geographic area for the three and six months ended October 4, 2013 and September 28, 2012 was as follows:

	Three Months Ended				Six Months Ended
	October 4, 2013		September 28, 2012		October 4, 2013		September 28, 2012
	(In thousands)
United States	$	257,898	$	206,490	$	496,697	$	385,224
Europe, Middle East and Africa		35,884		54,330		76,711		86,545
Asia, Pacific		49,953		12,461		82,818		20,892
North America other than United States		8,520		6,900		16,298		24,287
Central and Latin America		1,626		2,641		2,459		7,637
Total revenues	$	353,881	$	282,822	$	674,983	$	524,585

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 $18.7 million and $18.5 million at October 4, 2013 and March 29, 2013, respectively.