Operating Segment and Related Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Operating Segment and Related Information

17. Operating Segment and Related Information

The Company currently has one primary reportable geographic segment - United States. The Company has three reportable operating segments, plus our Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, and Other. We also have included a Non-operating Corporate segment. All inter-segment revenues are eliminated. The Company's revenue concentration of 10% and greater are as follows:

		Three Months Ended September 30,		Nine Months Ended September 30,
	Segment	2021	2020	2021	2020
Customer A	Infrastructure	18.9%	*	12.2%	*
Customer B	Infrastructure	13.0%	*	*	*

*Less than 10% revenue concentration

As a result of the sale of GMSL, ICS, and Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of these entities and related subsidiaries as separate segments. Formerly part of the Marine Services, Telecommunications, and Clean Energy segments, these entities and the investment in HMN have been reclassified to the Other segment. In addition, as GMSL, ICS, Beyond6, and CIG are discontinued operations, all operating results of these entities have been reclassified to discontinued operations. This has been reflected in the tables below for both the current and historical periods presented.

Summary information with respect to the Company’s operating segments is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
Infrastructure	$	383.0	$	160.8	$	776.3	$	509.6
Life Sciences	1.6		—		2.8		—
Spectrum	10.2		9.7		31.3		29.3
Total revenue	$	394.8	$	170.5	$	810.4	$	538.9

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Income (loss) from operations
Infrastructure	$	12.6	$	6.0	$	17.0	$	13.1
Life Sciences	(4.9)		(4.7)		(14.2)		(11.4)
Spectrum	(1.2)		(11.7)		(1.0)		(15.8)
Other	(1.0)		(0.4)		(1.6)		(2.1)
Non-operating Corporate	(4.4)		(5.3)		(17.7)		(22.4)
Total income (loss) from operations	$	1.1	$	(16.1)	$	(17.5)	$	(38.6)

A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Income (loss) from operations	$	1.1	$	(16.1)	$	(17.5)	$	(38.6)
Interest expense	(12.8)		(17.9)		(46.6)		(56.2)
Loss on early extinguishment or restructuring of debt	(0.1)		—		(12.5)		(9.2)
Loss from equity investees	(2.9)		(1.3)		(4.8)		(4.0)
Other income	0.6		6.9		4.4		73.0
Loss from continuing operations before income taxes	(14.1)		(28.4)		(77.0)		(35.0)
Income tax expense	(0.1)		(1.4)		(3.8)		(3.7)
Loss from continuing operations	(14.2)		(29.8)		(80.8)		(38.7)
(Loss) income from discontinued operations (including loss on sale of $200.3 million for the three months ended September 30, 2021 and loss on sale, net of $159.9 million and $39.3 million for the nine months ended September 30, 2021 and 2020, respectively)	(200.3)		8.2		(149.9)		(55.4)
Net loss	(214.5)		(21.6)		(230.7)		(94.1)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2.6		4.3		7.9		6.8
Net loss attributable to INNOVATE Corp.	(211.9)		(17.3)		(222.8)		(87.3)
Less: Preferred dividends and deemed dividends from conversions	1.1		0.4		1.7		1.2
Net loss attributable to common stock and participating preferred stockholders	$	(213.0)	$	(17.7)	$	(224.5)	$	(88.5)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Depreciation and Amortization
Infrastructure	$	7.4	$	2.7	$	13.1	$	8.0
Infrastructure recognized within cost of revenue	3.4		2.3		8.4		6.9
Total Infrastructure	10.8		5.0		21.5		14.9
Life Sciences	—		—		0.1		0.1
Spectrum	1.4		1.7		4.3		5.1
Non-operating Corporate	0.1		0.1		0.1		0.1
Total depreciation and amortization	$	12.3	$	6.8	$	26.0	$	20.2

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Capital Expenditures (*)
Infrastructure	$	6.1	$	1.4	$	11.6	$	4.8
Life Sciences	—		—		0.5		0.1
Spectrum	0.9		3.2		2.9		9.6
Non-operating Corporate	—		—		—		0.1
Total	$	7.0	$	4.6	$	15.0	$	14.6

(*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.

	September 30, 2021		December 31, 2020
Investments
Infrastructure	$	0.9	$	0.9
Life Sciences	13.0		18.4
Other	36.0		36.1
Total	$	49.9	$	55.4

	September 30, 2021		December 31, 2020
Total Assets
Infrastructure	$	917.7	$	494.8
Life Sciences	29.3		21.4
Spectrum	199.8		213.6
Other	38.9		6,021.3
Non-operating Corporate	35.8		30.1
Eliminations	—		(38.4)
Total	$	1,221.5	$	6,742.8