Segment Information

9 Months Ended

Jan. 02, 2015

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 nine months ended January 2, 2015 and January 3, 2014 were as follows:

	Three Months Ended						Nine Months Ended
	January 2, 2015			January 3, 2014			January 2, 2015			January 3, 2014
	(In thousands)
Revenues:
Satellite Services
Product (1)	$	6,149		$	11		$	27,468		$	31
Service		117,683			98,637			342,015			284,815
Total		123,832			98,648			369,483			284,846
Commercial Networks
Product		79,832			87,845			251,533			284,815
Service		4,178			4,014			11,564			14,630
Total		84,010			91,859			263,097			299,445
Government Systems
Product		88,318			105,990			257,351			301,552
Service		43,393			36,058			127,851			121,695
Total		131,711			142,048			385,202			423,247
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	339,553		$	332,555		$	1,017,782		$	1,007,538
Operating profits (losses):
Satellite Services (2)	$	10,421		$	(9,761	)	$	47,823		$	(37,377	)
Commercial Networks		(7,558	)		(6,528	)		(20,801	)		(3,558	)
Government Systems		19,966			21,465			49,781			56,322
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		22,829			5,176			76,803			15,387
Corporate		—			—			—			—
Amortization of acquired intangible assets		(4,651	)		(3,652	)		(13,338	)		(10,949	)
Income from operations	$	18,178		$	1,524		$	63,465		$	4,438

(1) Of the amounts realized under the Settlement Agreement during the three and nine months ended January 2, 2015, $6.0 million and $27.0 million, respectively, 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 nine months ended January 2, 2015 include $6.0 million and $45.7 million, respectively, 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 January 2, 2015 and April 4, 2014 were as follows:

	As of January 2, 2015		As of April 4, 2014
	(In thousands)
Segment assets:
Satellite Services	$	73,059	$	73,382
Commercial Networks		222,885		229,455
Government Systems		264,838		206,848
Total segment assets		560,782		509,685
Corporate assets		1,592,542		1,450,430
Total assets	$	2,153,324	$	1,960,115

Other acquired intangible assets, net and goodwill included in segment assets as of January 2, 2015 and April 4, 2014 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of January 2, 2015		As of April 4, 2014		As of January 2, 2015		As of April 4, 2014
	(In thousands)
Satellite Services	$	20,636	$	28,931	$	9,809	$	9,809
Commercial Networks		1,811		2,583		43,936		44,148
Government Systems		24,082		3,883		63,531		29,670
Total	$	46,529	$	35,397	$	117,276	$	83,627

Amortization of acquired intangible assets by segment for the three and nine months ended January 2, 2015 and January 3, 2014 was as follows:

	Three Months Ended				Nine Months Ended
	January 2, 2015		January 3, 2014		January 2, 2015		January 3, 2014
	(In thousands)
Satellite Services	$	2,765	$	2,765	$	8,295	$	8,295
Commercial Networks		369		343		1,084		994
Government Systems		1,517		544		3,959		1,660
Total amortization of acquired intangible assets	$	4,651	$	3,652	$	13,338	$	10,949