Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 9

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 9
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izations that take the necessary steps to clear the lower 300 MHz by earlier target dates may receive additional accelerated relocation payments (“ARPs”). In assessing ASC 610-20,Intelsat considered whether the arrangement under the FCC Final Order would fall within the scope exceptions and noted the following: 1) the clearing of the C-bandspectrum does not represent a sale to a customer in Intelsat’s ordinary course of business, and thus the arrangement is not subject to ASC 606, 2) the arrangement does not qualify as a business or a nonprofit activity, and 3) the C-bandspectrum in question is not a financial asset. As a result of these considerations, Intelsat determined that the arrangement under the FCC Final Order is within the scope of, and should be accounted for under, ASC 610-20as it represents the derecognition of a portion of Intelsat’s spectrum rights. This is consistent with Intelsat’s understanding of the Staff’s views as summarized in Intelsat’s confidential pre-clearanceconfirmation dated February 2021, which Intelsat endeavors to supplementally provide to the Staff upon request. To be eligible for the ARPs per the FCC Final Order, operators must have cleared 120 MHz of spectrum (specifically, 3.7-3.8GHz) in 46 Partial Economic Areas (“PEA”s) by December 5, 2021 and the remaining 180 MHz of spectrum (i.e., 3.8-3.98GHz)in these 46 PEAs and the full 300 MHz in the other PEAs located in the continental United States by December 5, 2023. From an accounting perspective, Intelsat’s spectrum rights are not separated from its orbital slot licenses and are included in its overall orbital slot license balance. Intelsat’s orbital slot licenses are accounted for as non-amortizableintangible assets in accordance with ASC 350. As highlighted by ASC 610-20-15-2,intangible assets meet the definition of nonfinancial assets. Thus, the orbital slot licenses covering the first 120 MHz of C-bandspectrum and the orbital slot licenses covering the second 180 MHz of C-bandspectrum represent the two distinct non-financialassets under this arrangement.

Laura Veator

Stephen
Krikorian

January 17, 2025

Page
8

As described in ASC 610-20-05-2, the term transfer is a broad term that also captures