Company: SGBAF
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001193125-25-120606
Chunk: 396

Company: SES S.A.
Filing Date: 2025-05-15
Form: 424B3
Chunk 396
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 as they occur. See Note
12—Share-Based and Other Compensation Plans for further details.

(o) Deferred Satellite Performance Incentives

The cost of satellite construction may include an element of deferred consideration that we are obligated to pay to satellite manufacturers
over the lives of the satellites, provided the satellites continue to operate in accordance with contractual specifications. Historically, the satellite manufacturers have earned substantially all of these payments. Therefore, we account for these
payments as deferred financing. We capitalize the present value of these payments as part of the cost of the satellites and record a corresponding liability due to the satellite manufacturers. Interest expense is recognized on the deferred financing
and the liability is reduced as the payments are made.

(p) Derivative Instruments

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign exchange and interest rates. We employ risk
management strategies, which may include the use of foreign currency swaps,

F-115

interest rate swaps and interest rate caps. We measure all derivatives at fair value and recognize them as either assets or liabilities on our consolidated balance sheets. Changes in the fair value of derivative instruments not qualifying as hedges are recognized in earnings in the current period. We do not have any derivative instruments that have been designated as accounting hedges. (q) Inventory Inventories consist primarily of telecommunications systems and parts associated with our Intelsat CA business and are recorded at the lower of cost or market. We evaluate the need for write-downs associated with obsolete, slow-moving and non-salableinventory by reviewing net realizable inventory values on a periodic basis. (r) Warranty We provide warranties on parts and labor related to our products for Intelsat CA. Our warranty terms range from one to five years. Warranty reserves are established for costs that are estimated to be incurred after the sale, delivery and installation of the products under warranty. The warranty reserves are determined based on known product failures, historical experience and other available evidence, and are included in “Other current liabilities” in our consolidated balance sheets. The following table provides a roll-forward of the warranty reserve reported within our consolidated balance sheets (in thousands):

|                                                  |     | Balance at 
 Beginning  
 of Period  |        |     | Accruals for 
 Warranties   
 Issued       |        |     | Settlements of 
 Warranties     |         |   |     | Fresh Start    
 Adjustments(1) |       |     | Balance at End 
 of Period      |        |
|:-------------------------------------------------|:----|: