v3.26.1
Segment Information
 12 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

Note 16 — Segment Information

The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies. 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.

The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines. The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements.

The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.

The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateways, modems and waveforms. The more regulated government environment for defense, encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment. The Company’s defense and advanced technologies segment revenues are primarily derived from products and services in the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other business lines, which are provided to government and commercial customers.

The Company's Chief Operating Decision Maker (CODM) is the Company's Chairman of the Board and Chief Executive Officer. Segment operating profits (losses) are the primary measure used by the Company's CODM to evaluate segment operating performance. The CODM regularly reviews budget-to-actual variances of segment operating profits (losses) when evaluating segment performance and allocating resources to each segment.

Segment revenues, expenses and operating profits (losses) for the fiscal years ended March 31, 2026, 2025 and 2024 were as follows:

 

 

 

Fiscal Years Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

March 31, 2024

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

 

 

Aviation services

 

$

1,191,426

 

 

$

1,048,225

 

 

$

864,834

 

Government satcom services

 

 

795,043

 

 

 

754,552

 

 

 

596,826

 

Maritime services

 

 

463,061

 

 

 

477,968

 

 

 

430,090

 

Fixed services and other services

 

 

607,693

 

 

 

741,601

 

 

 

906,762

 

Total services

 

 

3,057,223

 

 

 

3,022,346

 

 

 

2,798,512

 

Total products

 

 

242,428

 

 

 

276,139

 

 

 

343,028

 

Total communication services revenues

 

 

3,299,651

 

 

 

3,298,485

 

 

 

3,141,540

 

Defense and advanced technologies

 

 

 

 

 

 

 

 

 

Total services

 

 

217,200

 

 

 

203,430

 

 

 

206,082

 

Information security and cyber defense products

 

 

414,482

 

 

 

325,439

 

 

 

302,056

 

Space and mission systems products

 

 

330,867

 

 

 

304,870

 

 

 

309,253

 

Tactical networking products

 

 

329,417

 

 

 

319,577

 

 

 

202,094

 

Advanced technologies and other products

 

 

48,663

 

 

 

67,770

 

 

 

122,733

 

Total products

 

 

1,123,429

 

 

 

1,017,656

 

 

 

936,136

 

Total defense and advanced technologies revenues

 

 

1,340,629

 

 

 

1,221,086

 

 

 

1,142,218

 

Elimination of intersegment revenues

 

 

—

 

 

 

—

 

 

 

—

 

Total revenues

 

$

4,640,280

 

 

$

4,519,571

 

 

$

4,283,758

 

Expenses:

 

 

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

 

 

Depreciation

 

$

990,147

 

 

$

988,447

 

 

$

825,788

 

Stock-based compensation expense

 

 

48,685

 

 

 

48,760

 

 

 

52,662

 

Other than acquired intangible assets amortization (1)

 

 

37,321

 

 

 

41,373

 

 

 

50,718

 

Acquisition and transaction related expenses

 

 

19,691

 

 

 

50,807

 

 

 

114,113

 

Ground network (FY25), satellite (FY24) impairment
   and related charges, net

 

 

—

 

 

 

169,400

 

 

 

905,496

 

Other segment items (2)

 

 

2,051,254

 

 

 

2,049,920

 

 

 

2,009,817

 

Total communication services expenses (3)

 

 

3,147,098

 

 

 

3,348,707

 

 

 

3,958,594

 

Defense and advanced technologies

 

 

 

 

 

 

 

 

 

Depreciation

 

 

48,368

 

 

 

48,020

 

 

 

41,853

 

Stock-based compensation expense

 

 

32,385

 

 

 

31,625

 

 

 

30,969

 

Other than acquired intangible assets amortization (1)

 

 

22,611

 

 

 

19,034

 

 

 

12,000

 

Acquisition and transaction related expenses

 

 

4,701

 

 

 

13,660

 

 

 

43,466

 

Other segment items (2)

 

 

1,016,280

 

 

 

892,072

 

 

 

859,517

 

Total defense and advanced technologies expenses (3)

 

 

1,124,345

 

 

 

1,004,411

 

 

 

987,805

 

Total expenses

 

$

4,271,443

 

 

$

4,353,118

 

 

$

4,946,399

 

Operating profits (losses):

 

 

 

 

 

 

 

 

 

Communication services

 

$

152,553

 

 

$

(50,222

)

 

$

(817,054

)

Defense and advanced technologies

 

 

216,284

 

 

 

216,675

 

 

 

154,413

 

Elimination of intersegment operating profits (losses)

 

 

—

 

 

 

—

 

 

 

—

 

Segment operating profit (loss) before corporate
   and amortization of acquired intangible assets

 

 

368,837

 

 

 

166,453

 

 

 

(662,641

)

Corporate:

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(260,712

)

 

 

(263,933

)

 

 

(227,165

)

Interest income

 

 

205,849

 

 

 

83,920

 

 

 

96,258

 

Interest expense

 

 

(360,250

)

 

 

(421,944

)

 

 

(400,398

)

(Loss) gain on extinguishment of debt, net

 

 

(11,935

)

 

 

(99,814

)

 

 

—

 

Other income (expense), net

 

 

163,012

 

 

 

(9,976

)

 

 

—

 

Income (loss) from continuing operations before income taxes

 

$

104,801

 

 

$

(545,294

)

 

$

(1,193,946

)

 

 

(1)
Including amortization of capitalized cloud computing implementation costs.
(2)
Other segment items include operating expenses such as cost of service and product revenues, selling, general and administrative expenses, IR&D expenses and related activities excluding allocable portion of depreciation, other than acquired intangibles amortization, stock-based compensation, and certain significant items that are disclosed under each segment.
(3)
For fiscal years 2026, 2025, and 2024, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $93.1 million, $83.4 million and $105.0 million, respectively, for the communication services segment, and $71.8 million, $59.0 million and $45.7 million, respectively, for the defense and advanced technologies segment.

The CODM is not regularly provided assets on a segment basis, therefore, such information is not presented.

The Company distinguishes revenues from external customers by geographic area based on customer location. Revenues by geographic area for the fiscal years ended March 31, 2026, 2025 and 2024 were as follows:

 

 

 

Fiscal Years Ended

 

 

 

March 31,
 2026

 

 

March 31,
 2025

 

 

March 31,
 2024

 

 

 

(In thousands)

 

U.S. customers

 

$

3,161,146

 

 

$

3,117,233

 

 

$

3,029,303

 

Non U.S. customers (each country individually insignificant)

 

 

1,479,134

 

 

 

1,402,338

 

 

 

1,254,455

 

Total revenues

 

$

4,640,280

 

 

$

4,519,571

 

 

$

4,283,758

 

 

As of both March 31, 2026 and March 31, 2025, the net book value of long-lived assets located outside the United States was approximately $1.7 billion, including a net book value of long-lived assets located in the United Kingdom of $1.2 billion.