Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 11

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 11
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 was not known at inception of the clearing effort. Although there were published and estimated
ranges of costs expected to be incurred by incumbent satellite operators, and Intelsat had estimated its compensable relocation costs in its Transition Plan, the reimbursement payments were ultimately contingent on the occurrence or nonoccurrence of
a future event (i.e. actually incurring the cost). The ARPs were also variable as they were contingent on the occurrence or nonoccurrence of a future event (i.e. clearing of the C-band spectrum on an
accelerated schedule by the stated milestone dates).

While Intelsat believes the most appropriate accounting view relating to reimbursable
costs incurred is that these were ultimately associated with the transfer of C-band spectrum rights under ASC 610-20, Intelsat considered an alternative view that
reimbursement payments should offset the specific costs to which they relate, similar to government grant accounting under IAS 20. Intelsat rejected that view because these costs were incurred to enable the reciprocal transfer of a valuable asset (C-band spectrum rights) for proceeds (cash). As such, Intelsat concluded that the ASC 360 and ASC 610-20 model is more appropriate. Additionally, Intelsat concluded that the C-Band expenses would be recorded as operating expenses in the statement of operations, and that the proceeds would be recorded in the same line in the statement of operations for the reimbursement payments. The
gain on disposition of ARP rights is non-operating income since it is not a part of our ongoing operations and is not expected to recur.

These positions are consistent with Intelsat’s understanding of the Staff’s views as summarized in Intelsat’s confidential pre-clearance confirmation dated February 2021, which Intelsat endeavors to supplementally provide to the Staff upon request.

Laura Veator Stephen Krikorian January 17, 2025 Page 9 Note 3 - Fresh Start Accounting (d) Consolidated Balance Sheet, page F-119

| 17. | Your disclosures indicate that your fresh start accounting adjustments resulted in write downs of goodwill                                                                                                                                      
 of $1,293 million and intangible assets of $1,245 million. Please tell us how you considered whether there were any impairment indicators present during the period you filed for bankruptcy and through the date the bankruptcy court approved 
 the final plan.                                                                                                                                                                                                                                 |

Describe the results of any quantitative tests performed and explain any differences between valuations used for these impairment tests and the amount determined for your reorganization value. Response