Segment Information

6 Months Ended

Sep. 30, 2019

Note 12 — 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 and related services to residential customers, customers accessing our services via our Community and Urban Wi-Fi hotspot distribution channels, enterprises, commercial airlines and mobile broadband customers. The Company’s commercial networks segment develops and offers advanced satellite and wireless broadband platforms, ground networking equipment, radio frequency and advanced microwave solutions, Application-Specific Integrated Circuit chip design, satellite payload development 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 provides global mobile broadband services to military and government users and develops and offers network-centric, internet protocol-based fixed and mobile secure communications products 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 September 30, 2019 and 2018 were as follows:

	Three Months Ended						Six Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(In thousands)
Revenues:
Satellite services
Product	$	—		$	—		$	—		$	—
Service		205,717			162,962			402,532			316,523
Total		205,717			162,962			402,532			316,523
Commercial networks
Product		74,143			104,190			139,044			189,323
Service		13,865			10,330			27,976			20,263
Total		88,008			114,520			167,020			209,586
Government systems
Product		232,687			176,245			431,401			309,241
Service		65,844			63,747			128,340			120,993
Total		298,531			239,992			559,741			430,234
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	592,256		$	517,474		$	1,129,293		$	956,343

Operating profits (losses):
Satellite services	$	5,118		$	(24,839	)	$	3,048		$	(54,775	)
Commercial networks		(46,781	)		(39,197	)		(96,642	)		(86,205	)
Government systems		62,115			44,900			108,018			69,818
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit (loss) before corporate and amortization of acquired intangible assets		20,452			(19,136	)		14,424			(71,162	)
Corporate		—			—			—			—
Amortization of acquired intangible assets		(2,027	)		(2,435	)		(4,064	)		(4,888	)
Income (loss) from operations	$	18,425		$	(21,571	)	$	10,360		$	(76,050	)

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 September 30, 2019 and March 31, 2019 were as follows:

	As of September 30, 2019		As of March 31, 2019
	(In thousands)
Segment assets:
Satellite services	$	80,715	$	85,907
Commercial networks		179,938		183,200
Government systems		440,154		408,422
Total segment assets		700,807		677,529
Corporate assets		3,666,244		3,237,758
Total assets	$	4,367,051	$	3,915,287

Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2019 and March 31, 2019 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of September 30, 2019		As of March 31, 2019		As of September 30, 2019		As of March 31, 2019
	(In thousands)
Satellite services	$	8,550	$	10,453	$	13,535	$	13,617
Commercial networks		1,028		1,798		43,945		43,933
Government systems		8,389		10,050		63,743		64,169
Total	$	17,967	$	22,301	$	121,223	$	121,719

Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2019 and 2018 was as follows:

	Three Months Ended				Six Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
	(In thousands)
Satellite services	$	850	$	1,289	$	1,705	$	2,593
Commercial networks		386		385		772		771
Government systems		791		761		1,587		1,524
Total amortization of acquired intangible assets	$	2,027	$	2,435	$	4,064	$	4,888