Company: SGBAF
Filing Date: 2025-04-23
Form Type: DRS/A
Source: 0000950123-25-003652
Chunk: 273

Company: SES S.A.
Filing Date: 2025-04-23
Form: DRS/A
Chunk 273
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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 of the historical impairment charges recognized.

Income Taxes

Intelsat accounts
for income taxes in accordance with ASC 740. Intelsat is subject to income taxes in Luxembourg, as well as the United States and a number of other foreign jurisdictions. Significant judgment is required in the calculation of Intelsat’s tax
provision and the resulting tax liabilities and in the recoverability of its deferred tax assets that arise from temporary differences between the tax and financial statement recognition of revenue