Company: SGBAF
Filing Date: 2025-04-01
Form Type: DRS/A
Source: 0000950123-25-003272
Chunk: 249

Company: SES S.A.
Filing Date: 2025-04-01
Form: DRS/A
Chunk 249
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 acquiring such a business as a going concern, the buyer would hypothetically
start with the right to operate satellites at orbital locations and build a new business with similar attributes from the beginning. Thus, the buyer

178

Confidential Treatment Requested by SES

Pursuant to 17 C.F.R. Section 200.83

is assumed to incur the start-up costs and losses typically associated with the going concern value and pay for all other tangible and intangible assets.

The key assumptions used in estimating the fair values of Intelsat’s rights to operate at its orbital locations included the
following: (i) market penetration leading to revenue growth, (ii) profit margin, (iii) duration and profile of the build-up period, (iv) estimated
start-up costs and losses incurred during the build-up period and (v) weighted average cost of capital. See additional discussion under “Goodwill”
above.

Trade Name. Intelsat has implemented the relief from royalty method to determine the estimated fair value of the
Intelsat trade name. The relief from royalty analysis is composed of two major steps: (i) a determination of the hypothetical royalty rate, and (ii) the subsequent application of the royalty rate to projected revenue. In determining the
hypothetical royalty rate utilized in the relief from royalty approach, Intelsat considered comparable license agreements, an excess earnings analysis to determine aggregate intangible asset earnings, and other qualitative factors, each of which is
considered a Level 3 input within the fair value hierarchy under ASC 820, Fair Value Measurement.

The key assumptions
used in Intelsat’s model to estimate the fair value of the Intelsat trade name included forecasted revenues, the royalty rate, the tax rate and the discount rate. See additional discussion under “Goodwill” above.

Long-Lived and Other Intangible Assets. Intelsat evaluated the assets for potential impairment using internal projections of
undiscounted cash flows expected to result from the use and eventual disposal of the assets. The key assumptions included in Intelsat’s model were projected growth rates, cost of capital, effective tax rates, and industry and economic trends. A
change in estimated future cash flows or other assumptions could change Intelsat’s estimated undiscounted cash flows and result in future impairments. See Note 5—Satellites and Other Property and Equipment of the Intelsat audited financial
statements for the year ended December 31, 2024 included elsewhere in this prospectus for discussion