Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 397

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 397
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 the equity method of accounting. The investment balance, which is equivalent to our maximum exposure to loss, was $110.5 million and $108.5 million as of December 31, 2022 and 2023, respectively.
The investment balance exceeded our equity in the net assets of Horizons 3 by $16.4 million and $13.9 million as of December 31, 2022 and 2023, respectively. We recognize this basis difference as a reduction of our equity in earnings
of Horizons 3 on a straight-line basis over the life of the satellite. We recognized a nominal amount of equity in earnings of Horizons 3 for each of the year ended December 31, 2021, two months ended February 28, 2022, ten months ended
December 31, 2022 and year ended December 31, 2023, which was recognized in “Other income (expense), net” in our consolidated statements of operations.

(c) Horizons 4

On
October 12, 2020, we entered into a master agreement with JSAT relating to developing, launching, managing, operating and owning a Ku-band payload portion on the Galaxy 37 satellite, for which the costs
incurred are included in “Satellites and other property and equipment, net” on our consolidated balance sheets. The Galaxy 37 satellite, which includes the Horizons 4 Ku-band payload, was
successfully launched on August 3, 2023, and the H-4 Ku-band payload entered into service on October 12, 2023. See Note 6(d)—Satellites and Other Property
and Equipment—Satellite Launches. Following the completion of certain milestones under the master agreement, including the completion of in-orbit testing of the Galaxy 37 satellite, on October 12,
2023, Horizons 4 became 50% owned by each of Intelsat and JSAT, and as of that date the members share management authority and equal rights to profits and revenues from the joint venture. We have determined that this joint venture meets the criteria
of a VIE under ASC 810; however, we have concluded that we are not the primary beneficiary because we and JSAT equally share control over the operations of the joint venture and also equally share exposure to risk of losses or gains, and therefore
we do not consolidate Horizons 4 within our consolidated financial statements.

We have a revenue sharing agreement with JSAT related to
services