Segment Information

6 Months Ended

Oct. 03, 2014

Segment Reporting [Abstract]

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 services for its consumer, enterprise and mobile broadband customers primarily in the United States. 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 fixed and mobile secure government communications systems, network management 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 3, 2014 and October 4, 2013 were as follows:

	Three Months Ended						Six Months Ended
	October 3, 2014			October 4, 2013			October 3, 2014			October 4, 2013
	(In thousands)
Revenues:
Satellite Services
Product (1)	$	21,289		$	4		$	21,319		$	20
Service		114,647			100,347			224,332			186,178
Total		135,936			100,351			245,651			186,198
Commercial Networks
Product		83,109			105,146			171,701			196,970
Service		3,750			5,041			7,386			10,616
Total		86,859			110,187			179,087			207,586
Government Systems
Product		89,526			105,241			169,033			195,562
Service		46,437			38,102			84,458			85,637
Total		135,963			143,343			253,491			281,199
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	358,758		$	353,881		$	678,229		$	674,983
Operating profits (losses):
Satellite Services (2)	$	39,351		$	(14,638	)	$	37,402		$	(27,616	)
Commercial Networks		(7,253	)		(366	)		(13,243	)		2,970
Government Systems		19,016			18,290			29,815			34,857
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		51,114			3,286			53,974			10,211
Corporate		—			—			—			—
Amortization of acquired intangible assets		(4,658	)		(3,796	)		(8,687	)		(7,297	)
Income (loss) from operations	$	46,456		$	(510	)	$	45,287		$	2,914

(1) Of the amounts realized under the Settlement Agreement during the three and six months ended October 3, 2014, $21.0 million was recognized as product revenues in the Company’s satellite services segment. See Note 8.

(2) Operating profits for the satellite services segment for the three and six months ended October 3, 2014 include $39.7 million in earnings contributions relating to amounts realized under the Settlement Agreement. See Note 8.

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 3, 2014 and April 4, 2014 were as follows:

	As of October 3, 2014		As of April 4, 2014
	(In thousands)
Segment assets:
Satellite Services	$	76,906	$	73,382
Commercial Networks		242,278		229,455
Government Systems		255,968		206,848
Total segment assets		575,152		509,685
Corporate assets		1,439,612		1,450,430
Total assets	$	2,014,764	$	1,960,115

Other acquired intangible assets, net and goodwill included in segment assets as of October 3, 2014 and April 4, 2014 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of October 3, 2014		As of April 4, 2014		As of October 3, 2014		As of April 4, 2014
	(In thousands)
Satellite Services	$	23,401	$	28,931	$	9,809	$	9,809
Commercial Networks		2,179		2,583		44,009		44,148
Government Systems		25,690		3,883		63,799		29,670
Total	$	51,270	$	35,397	$	117,617	$	83,627

Amortization of acquired intangible assets by segment for the three and six months ended October 3, 2014 and October 4, 2013 was as follows:

	Three Months Ended				Six Months Ended
	October 3, 2014		October 4, 2013		October 3, 2014		October 4, 2013
	(In thousands)
Satellite Services	$	2,765	$	2,765	$	5,530	$	5,530
Commercial Networks		373		509		715		652
Government Systems		1,520		522		2,442		1,115
Total amortization of acquired intangible assets	$	4,658	$	3,796	$	8,687	$	7,297