Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 376

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 376
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 amount billed to the customer.

Contract Liabilities

Contract liabilities consist of advance payments and collections in excess of revenue recognized and deferred revenue. A limited number of our
contracts contain prepayment terms that range from one month to seventeen years in advance of providing the service. If we expect at contract inception that the period of time between when the Company transfers a promised good or service to a
customer and when the customer pays for that good or service will be one year or less, as a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component. For the small subset of
contracts with advance payments that contain prepayment terms greater than one year, we assess whether a significant financing component exists by considering the difference between the amount of promised consideration and the cash selling price of
the promised services. The prepayment amount is generally based on a standard methodology that discounts the total of the standard monthly charges over the service term to determine the prepayment amount, resulting in a difference between the amount
of promised consideration and the cash selling price of the promised services. The Company considers the timing difference between payment and the promised transfer of services, combined with the Company’s incremental borrowing rates, to
determine whether a significant financing component exists. When a significant financing component exists, the amount of revenue recognized exceeds the amount of cash received from the customer. After receiving cash from the customer but prior to
the Company providing services, the Company records additional contract liabilities as well as offsetting interest expense to reflect the upfront financing the Company is effectively receiving from the customer. Once the Company begins providing
services, additional interest expense is recorded each period using the effective interest method, as well as corresponding additional revenue, which is recognized ratably over the service period.

As of December 31, 2022, $583.8 million related to reimbursable costs associated with the FCC Final Order was included within
“Contract liabilities, net of current portion” in our consolidated balance sheets. As a result of Phase II Validation, we recognized reimbursement income of $720.9 million for the year ended December 31, 2023, which is included
within “Other operating expense (income), net—C-band” on our consolidated statements of operations. As of December 31, 2023, all income related to reimbursable costs associated with the FCC
Final Order included within “Contract liabilities, net of current portion” and “Contract liabilities” in our consolidated balance sheets has been recognized.

For the year ended