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Segment Information
3 Months Ended
Jun. 30, 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 and provides global mobile broadband service and product offerings. 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 months ended June 30, 2015 and July 4, 2014 were as follows:

 

     Three Months Ended  
     June 30, 2015      July 4, 2014  
     (In thousands)  

Revenues:

     

Satellite Services

     

Product (1)

   $ 6,276       $ 30   

Service

     126,140         109,685   
  

 

 

    

 

 

 

Total

     132,416         109,715   

Commercial Networks

     

Product

     61,511         88,592   

Service

     5,244         3,636   
  

 

 

    

 

 

 

Total

     66,755         92,228   

Government Systems

     

Product

     100,561         79,507   

Service

     44,646         38,021   
  

 

 

    

 

 

 

Total

     145,207         117,528   

Elimination of intersegment revenues

     —           —     
  

 

 

    

 

 

 

Total revenues

   $ 344,378       $ 319,471   
  

 

 

    

 

 

 

Operating profits (losses):

     

Satellite Services (2)

   $ 17,041       $ (1,949

Commercial Networks

     (18,733      (5,990

Government Systems

     15,916         10,799   

Elimination of intersegment operating profits

     —          —    
  

 

 

    

 

 

 

Segment operating profit before corporate and amortization of acquired intangible assets

     14,224         2,860   

Corporate

     —          —    

Amortization of acquired intangible assets

     (4,810      (4,029
  

 

 

    

 

 

 

Income (loss) from operations

   $ 9,414       $ (1,169
  

 

 

    

 

 

 

 

(1) Product revenues in the satellite services segment for the three months ended June 30, 2015 included $6.2 million relating to amounts realized under the Settlement Agreement. See Note 8.
(2) Operating profits for the satellite services segment for the three months ended June 30, 2015 included $6.2 million 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 June 30, 2015 and April 3, 2015 were as follows:

 

     As of
June 30,
2015
     As of
April 3,
2015
 
     (In thousands)  

Segment assets:

     

Satellite Services

   $ 65,695       $ 63,790   

Commercial Networks

     230,659         217,268   

Government Systems

     288,239         273,313   
  

 

 

    

 

 

 

Total segment assets

     584,593         554,371   

Corporate assets

     1,618,403         1,604,007   
  

 

 

    

 

 

 

Total assets

   $ 2,202,996       $ 2,158,378   
  

 

 

    

 

 

 

Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2015 and April 3, 2015 were as follows:

 

     Other Acquired Intangible
Assets, Net
     Goodwill  
     As of
June 30, 2015
     As of
April 3, 2015
     As of
June 30, 2015
     As of
April 3, 2015
 
     (In thousands)  

Satellite Services

   $ 15,108       $ 17,873       $ 9,805       $ 9,809   

Commercial Networks

     8,573         1,443         44,050         43,994   

Government Systems

     21,550         23,024         63,845         63,438   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 45,231       $ 42,340       $ 117,700       $ 117,241   
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization of acquired intangible assets by segment for the three months ended June 30, 2015 and July 4, 2014 was as follows:

 

     Three Months Ended  
     June 30, 2015      July 4, 2014  
     (In thousands)  

Satellite Services

   $ 2,765       $ 2,765   

Commercial Networks

     496         343   

Government Systems

     1,549         921   
  

 

 

    

 

 

 

Total amortization of acquired intangible assets

   $ 4,810       $ 4,029