Segment information

12 Months Ended

Dec. 31, 2019

Segment information

Segment information

17.  SEGMENT INFORMATION

During the fourth quarter of 2019, following a number of changes, the chief operating decision maker (“CODM”) changed the way in which he assesses performance and allocates resources. As a result, the Company has revised its reportable segments to reflect how the CODM currently reviews financial information and makes operating decisions. The Company’s operating and reportable segments are: Earth Intelligence, Space Infrastructure and MDA. With the Company’s announcement of the MDA Transaction on December 30, 2019 the MDA segment has been classified within Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations. All prior-period amounts have been adjusted to reflect the reportable segment change.

The Earth Intelligence reportable segment is a supplier of high resolution space-based optical and radar imagery products and analytics. The Space Infrastructure reportable segment is a provider of Space Infrastructure that designs, builds, integrates and tests solutions for space-based communication satellites, on-orbit servicing, robotic assembly and space exploration.

The Company’s CODM measures the performance of each segment based on revenue and Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization (“EBITDA”) adjusted for certain items affecting comparability as specified in the calculation. Certain items affecting comparability include restructuring, impairments, satellite insurance recovery, gain on sale of assets, CEO severance and transaction and integration related expense. Transaction and integration related expense includes costs associated with de-leveraging activities, acquisitions and dispositions and the integration of acquisitions. Other unallocated expenses include retention costs and foreign exchange gains and losses which are not included in segment Adjusted EBITDA. The reconciling item “corporate and other expenses” includes items such as corporate office costs, regulatory costs, executive and director compensation, foreign exchange gains and losses, and fees for audit, legal and consulting services.

Intersegment sales are generally recorded at cost-plus a specified margin, which may differ from what the segment may be able to obtain on sales to external customers.

The following table summarizes the operating performance of the Company’s segments:

	Year Ended December 31,
	2019		2018		2017
Revenues:
Earth Intelligence	$	1,085	$	1,059	$	331
Space Infrastructure		706		823		932
Intersegment eliminations		(125)		(78)		(6)
Total revenues	$	1,666	$	1,804	$	1,257

Adjusted EBITDA:
Earth Intelligence	$	548	$	516	$	152
Space Infrastructure		(17)		(75)		(59)
Intersegment eliminations		(29)		(9)		—
Corporate and other expenses		(86)		(49)		(8)
Restructuring		(18)		(13)		—
Transaction and integration related expense		(16)		(33)		(60)
Impairment losses, including inventory		(17)		(652)		—
Satellite insurance recovery		183		—		—
Gain on sale of assets		136		33		—
CEO severance		(3)		—		—
Depreciation and amortization		(376)		(439)		(152)
Interest expense, net		(219)		(200)		(97)
Interest income 1		2		—		—
Equity in (income) loss from joint ventures, net of tax		(11)		(2)		1
Income (loss) from continuing operations before taxes	$	77	$	(923)	$	(223)

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

The Company’s capital expenditures are as follows:

Year Ended December 31, 2019	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Property, plant and equipment	$	237	$	16	$	4	$	257
Intangible assets		56		3		(2)		57
	$	293	$	19	$	2	$	314
Year Ended December 31, 2018	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Property, plant and equipment	$	158	$	22	$	(30)	$	150
Intangible assets		55		1		—		56
	$	213	$	23	$	(30)	$	206
Year Ended December 31, 2017	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Property, plant and equipment	$	16	$	37	$	(10)	$	43
Intangible assets		12		4		—		16
	$	28	$	41	$	(10)	$	59

Substantially all of the Company’s long-lived tangible assets were in the United States as of December 31, 2019 and 2018, respectively.