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Segment information
12 Months Ended
Dec. 31, 2018
Segment information  
Segment information

16.  SEGMENT INFORMATION

The Company’s business is organized into market sectors based on its products and services and has three reportable segments: (i) Space Systems; (ii) Imagery; and (iii) Services. The Company organizes its reportable segments based on the nature of the products and services offered. The Space Systems reportable segment supplies space-based and ground-based infrastructure and information solutions including communication and imaging satellites, satellite payloads and antenna subsystems, space-based and airborne surveillance solutions, robotic systems and associated ground infrastructure and support services. The Imagery segment is a supplier of high resolution Earth imagery and radar data sourced from the Company owned satellite constellations and third-party providers. The Services segment combines imagery, analytic expertise and innovative technology to deliver integrated intelligence solutions to customers.

Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. The reconciling item “corporate expense” includes the portion of corporate costs not considered allocable to the segments, such as legal, management and administration, and other corporate unallocable costs.

The Company’s Chief Operating Decision Maker (“CODM”) measures the performance of each segment based on revenue and adjusted EBITDA. Adjusted EBITDA is defined as EBITDA adjusted for certain items affecting comparability as specified in the calculation. The following table summarizes the operating performance of the Company’s segments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2018

    

2017

 

2016

Revenues:

 

 

  

 

 

  

 

 

 

Space Systems

 

$

1,129

 

$

1,270

 

$

1,421

Imagery

 

 

845

 

 

230

 

 

42

Services

 

 

266

 

 

144

 

 

100

Intersegment eliminations

 

 

(99)

 

 

(13)

 

 

(5)

Total Revenue

 

$

2,141

 

$

1,631

 

$

1,558

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Space Systems

 

$

 5

 

$

151

 

$

160

Imagery

 

 

518

 

 

143

 

 

23

Services

 

 

25

 

 

23

 

 

19

Intersegment eliminations

 

 

(22)

 

 

(1)

 

 

 —

Depreciation and amortization

 

 

(449)

 

 

(161)

 

 

(72)

Corporate expense

 

 

(54)

 

 

(65)

 

 

(26)

Restructuring

 

 

(18)

 

 

(36)

 

 

(4)

Acquisition and integration related expense

 

 

(34)

 

 

(60)

 

 

 —

Impairment losses, including inventory

 

 

(1,096)

 

 

 —

 

 

 —

Interest expense, net

 

 

(202)

 

 

(99)

 

 

(33)

Interest Income 1

 

 

 1

 

 

 1

 

 

 —

Equity (income) loss from joint ventures, net of tax

 

 

(2)

 

 

 —

 

 

 —

Net (loss) earnings before income taxes

 

$

(1,328)

 

$

(104)

 

$

67

 

1Included in Other expense (income), net on the Consolidated Statements of Operations.

 

The Company’s capital expenditures are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space

 

 

 

 

 

 

 

Corporate and

 

 

 

Year ended December 31, 2018

 

Systems

    

Imagery

    

Services

    

eliminations

 

Total

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

28

 

$

156

 

$

 2

 

$

(30)

 

$

156

Intangible assets

 

 

 6

 

 

55

 

 

 1

 

 

 —

 

 

62

 

 

$

34

 

$

211

 

$

 3

 

$

(30)

 

$

218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space

 

 

 

 

 

 

 

Corporate and

 

 

 

Year ended December 31, 2017

 

Systems

    

Imagery

    

Services

    

eliminations

 

Total

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

43

 

$

14

 

$

 2

 

$

(10)

 

$

49

Intangible assets

 

 

11

 

 

12

 

 

 —

 

 

 —

 

 

23

 

 

$

54

 

$

26

 

$

 2

 

$

(10)

 

$

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space

 

 

 

 

 

 

 

Corporate and

 

 

 

Year ended December 31, 2016

 

Systems

    

Imagery

    

Services

    

eliminations

 

Total

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

38

 

$

 —

 

$

 1

 

$

 1

 

$

40

Intangible assets

 

 

14

 

 

 —

 

 

 1

 

 

 1

 

 

16

 

 

$

52

 

$

 —

 

$

 2

 

$

 2

 

$

56

 

Substantially all of the Company’s long-lived tangible assets were in the United States as of December 31, 2018 and 2017, respectively.