Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 14

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 14
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 also a need for increased capital expenditure investment to support these new initiatives. |

Therefore, Intelsat’s management deemed it appropriate to impair the orbital slots as a part of the intangible asset valuation. Note 4 - Revenue Recognition, page F-127

| 18. | Please clarify whether the services relating to your CA contracts are sold together with equipment and 
 installation services and how you determined that each of these represents a distinct good or service. |

In your response, tell us how you considered all the factors in ASC 606-10-25-19through 25-22,including whether you sell these goods and services separately. Revise your disclosures accordingly. Response: The Company acknowledges the Staff’s comment and has revised page F-127of Amendment No.1 accordingly. Further, the Company advises the Staff that while Intelsat commercial aviation (“ICA”) offers installation as a service, it is presented as an option within the contract, thus distinct within the context of the contract. Many contracts do not include installation services as the airline either elects to perform the installation themselves or engages its own third party to perform the install, similar to the process ICA would perform if the option is elected, as installation service is not performed by internal resources. Additionally, in the case where ICA has obtained line fit status with the Original Equipment Manufacturer (“OEM”), its equipment is installed by the aircraft OEM during the aircraft fabrication process, thus installation by ICA or the customer is not required. Based on these facts, installation service is distinct as it is both capable of being distinct and distinct in the context of the contract as required in ASC 606-10-25-19. Equipment is also distinct as it is sold separately and separately identified as a promise within the contract. For example, ICA sells equipment to aircrafts owned by leasing companies as well as direct to aircraft OEMs, both of which do not include any connectivity or other services. Additionally, equipment sold direct to airline customers provides economic benefit to the customer through the ability to provide inflight entertainment such as movies or television shows stored within the onboard system without a need for connectivity. Connectivity services are also sold separately and separately identified promises within the contract. Airlines always purchase these services after they have taken delivery of the equipment. For example, airline customers may purchase the equipment from OEMs as the equipment is installed through the construction of the aircraft, then procure services after taking delivery from the OEM. Similarly, airlines may take possession of aircraft that were previously equipped from prior customers that were