Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 10

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 10
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 circumstances in which an entity may lose control of a non-financial asset because of
termination of a contract or a government action. In Intelsat’s case, its existing orbital licenses within the lower portion of the C-band spectrum are modified once the overlay license conditions vest or
the deadline passes. The C-band spectrum was being auctioned in 20 MHz units or “sub-blocks” and winners of each unit received an overlay license to that
individual unit upon meeting the conditions as established in the FCC Final Order (one of which is making acceleration payments).

Derecognition of each distinct nonfinancial asset occurred at the point at which the Wireless Telecommunications Bureau validated the
Certifications of Accelerated Relocation as this was the point at which Intelsat no longer had rights to the spectrum and transfer of control had occurred. Thus, the derecognition of the orbital slot licenses covering the first 120 MHz of C-band spectrum was recorded in December 2021 and the derecognition of the orbital slot licenses covering the second 180 MHz of C-band spectrum was recorded in August 2023. No
amounts were removed from the carrying values of Intelsat’s non-amortizable intangible assets on the date of transfer relating to the derecognition as Intelsat’s spectrum rights are not separated
from Intelsat’s orbital slot licenses and are included in its overall orbital slot license balance.

The total transaction price under
the FCC Final Order consisted of the following two components as stated in Intelsat’s Transition Plan and the FCC’s Order: estimated reimbursement payments which were originally estimated to be approximately $1.7 billion, and ARPs
which were originally estimated to be approximately $4.9 billion. The reimbursable relocation costs were directly related to, and were being incurred in support of, the overall clearing process and to achieve the accelerated relocation
milestones. These costs did not represent separate or distinct non-financial assets and represent incremental transaction price that Intelsat expected to be entitled to, related to the underlying distinct non-financial assets, when considering the overarching principles of ASC 610-20.

Both the reimbursement payments and ARPs received upon transfer of the nonfinancial assets were considered to be variable consideration in
accordance with ASC 606-10-32-6. The reimbursement payments were variable in the sense that the amounts were not ultimately final
until they were submitted to the Relocation Payment Clearinghouse and approved for payment and the ultimate amount of relocation costs to be incurred