Company: SGBAF
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001193125-25-120606
Chunk: 418

Company: SES S.A.
Filing Date: 2025-05-15
Form: 424B3
Chunk 418
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, 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.

For the two months ended February 28, 2022, ten months ended December 31, 2022, year ended December 31, 2023, and year ended
December 31, 2024, we recognized revenues of $60.2 million, $170.1 million, and $236.3 million, and $249.1 million, respectively, that were included in the contract liability balances as of the beginning of each respective
year.

Assets Recognized from the Costs to Obtain a Customer Contract

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer
than one year. We have determined that our sales incentive program meets the requirements to be capitalized due to the incremental nature of the costs and the expectation that the Company will recover such costs. The assets recognized from the costs
to obtain a customer contract are amortized over a period that is consistent with the transfer to the customer of the services to which the asset relates. For the two months ended February 28, 2022, ten months ended December 31, 2022, year
ended December 31, 2023, and year ended December