Segment Information

3 Months Ended

Jun. 30, 2016

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 satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops and offers advanced end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and offers network-centric, internet protocol (IP)-based fixed and mobile secure government communications 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, 2016 and 2015 were as follows:

	Three Months Ended
	June 30, 2016			June 30, 2015
	(in thousands)
Revenues:
Satellite services
Product (1)	$	6,685		$	6,276
Service		145,708			126,140
Total		152,393			132,416
Commercial networks
Product		58,596			61,511
Service		6,957			5,244
Total		65,553			66,755
Government systems
Product		95,395			100,561
Service		49,789			44,646
Total		145,184			145,207
Elimination of intersegment revenues		—			—
Total revenues	$	363,130		$	344,378
Operating profits (losses):
Satellite services (1)	$	30,867		$	17,041
Commercial networks		(38,531	)		(18,733	)
Government systems		17,955			15,916
Elimination of intersegment operating profits		—			—
Segment operating profit before corporate and amortization of acquired intangible assets		10,291			14,224
Corporate		—			—
Amortization of acquired intangible assets		(2,513	)		(4,810	)
Income from operations	$	7,778		$	9,414

(1) Product revenues and operating profits in the satellite services segment for the three months ended June 30, 2016 and 2015 included $6.6 million and $6.2 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space System Loral, Inc. and its former parent company Loral Space & Communications, Inc.

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, earth stations 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, 2016 and March 31, 2016 were as follows:

	As of June 30, 2016		As of March 31, 2016
	(In thousands)
Segment assets:
Satellite services	$	60,687	$	57,529
Commercial networks		184,190		212,943
Government systems		320,645		311,927
Total segment assets		565,522		582,399
Corporate assets		1,925,727		1,814,913
Total assets	$	2,491,249	$	2,397,312

Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2016 and March 31, 2016 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of June 30, 2016		As of March 31, 2016		As of June 30, 2016		As of March 31, 2016
	(In thousands)
Satellite services	$	7,646	$	8,751	$	9,809	$	9,809
Commercial networks		6,137		6,581		43,956		43,990
Government systems		17,256		18,272		62,795		63,241
Total	$	31,039	$	33,604	$	116,560	$	117,040

Amortization of acquired intangible assets by segment for the three months ended June 30, 2016 and 2015 was as follows:

	Three Months Ended
	June 30, 2016		June 30, 2015
Satellite services	$	1,104	$	2,765
Commercial networks		445		496
Government systems		964		1,549
Total amortization of acquired intangible assets	$	2,513	$	4,810