Revenue

12 Months Ended

Dec. 31, 2020

Revenue

Revenue

16. REVENUE

As of December 31, 2020, the Company had $1.9 billion of remaining performance obligations, which represents the transaction price of firm orders less inception to date revenue recognized. Remaining performance obligations generally exclude unexercised contract options and indefinite delivery/indefinite quantity contracts. The Company expects to recognize revenue relating to existing performance obligations of approximately $1.1 billion, $0.5 billion, and $0.3 billion in the fiscal years 2021, 2022 and thereafter, respectively.

Contract liabilities by segment are as follows:

As of December 31, 2020	Earth Intelligence 1		Space Infrastructure		Total
Contract liabilities	$	45	$	234	$	279
As of December 31, 2019	Earth Intelligence 1		Space Infrastructure		Total
Contract liabilities	$	130	$	145	$	275

¹ There was no remaining contract liability balance associated with the Company’s EnhancedView Contract as of December 31, 2020 as the remaining revenue was fully recognized as of August 31, 2020. The contract liability associated with the Company’s EnhancedView Contract was $78 million as of December 31, 2019. During the year ended December 31, 2020, imputed interest on advanced payments increased the contract liability balance by $3 million, and $81 million in revenue was recognized, decreasing the contract liability balance.

The increase in contract liabilities is primarily due to cash received on a commercial contract in the Space Infrastructure segment in advance of services performed. The increase is partially offset by revenues recognized based upon the satisfaction of performance obligations within the Earth Intelligence segment.

The Company’s primary sources of revenue are as follows:

Year Ended December 31, 2020	Earth Intelligence		Space Infrastructure		Eliminations		Total
Product revenues	$	—	$	633	$	—	$	633
Service revenues		1,081		9		—		1,090
Intersegment		—		79		(79)		—
	$	1,081	$	721	$	(79)	$	1,723
Year Ended December 31, 2019	Earth Intelligence		Space Infrastructure		Eliminations		Total
Product revenues	$	—	$	560	$	—	$	560
Service revenues		1,085		21		—		1,106
Intersegment		—		125		(125)		—
	$	1,085	$	706	$	(125)	$	1,666
Year Ended December 31, 2018	Earth Intelligence		Space Infrastructure		Eliminations		Total
Product revenues	$	—	$	697	$	—	$	697
Service revenues		1,058		49		—		1,107
Intersegment		1		77		(78)		—
	$	1,059	$	823	$	(78)	$	1,804

Certain of the Company’s contracts with customers in the Space Infrastructure segment include a significant financing component as payments are received from the customer more than one year after delivery of the promised goods or services. The Company recognized orbital revenue related to these contracts of $30 million, $31 million and $32 million for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in product revenues.

Revenue in the Space Infrastructure segment is primarily generated from long-term construction contracts. Due to the long-term nature of these contracts, the Company generally recognizes revenue over time using the cost-to-cost method of accounting to measure progress. Under the cost-to-cost method of accounting, revenue is recognized based on the proportion of total costs incurred to estimated total costs-at-completion ("EAC"). An EAC includes all direct costs and indirect costs directly attributable to a program or allocable based on program cost pooling arrangements. Estimates regarding the Company’s cost associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to an EAC are recorded as a cumulative adjustment to revenue.

The Company incurred estimated COVID-19 related EAC growth of $27 million for the year ended December 31, 2020. The changes in the EACs are due to increases in estimated program costs associated with the COVID-19 operating posture and the estimated impact of certain items such as supplier delays and increased labor hours. These costs are considered incremental and separable from normal operations. The Company’s current estimates at completion on the Company’s satellite manufacturing contracts assume, among other things, that the Company remains in a COVID-19 operating posture in the factories through the spring of 2021.

During the year ended December 31, 2020, the Company recorded an additional $42 million estimated loss on a commercial satellite program which includes significant development efforts further delayed by COVID-19. The estimated COVID-19 impact on this program was $16 million for the year ended December 31, 2020 and is included in our total COVID-19 impact discussed above.

The approximate revenue based on geographic location of customers is as follows:

	Year Ended December 31,
		2020		2019		2018
United States	$	1,406	$	1,240	$	1,238
Asia		96		161		213
Europe		84		69		54
Middle East		54		57		90
Australia		37		22		17
South America		25		97		133
Canada		10		10		49
Other		11		10		10
Total revenues	$	1,723	$	1,666	$	1,804

Revenues from significant customers is as follows:

Year Ended December 31, 2020	Earth Intelligence		Space Infrastructure		Eliminations		Total
U.S. federal government and agencies	$	774	$	288	$	—	$	1,062
Commercial and other		307		433		(79)		661
Total revenues	$	1,081	$	721	$	(79)	$	1,723
Year Ended December 31, 2019	Earth Intelligence		Space Infrastructure		Eliminations		Total
U.S. federal government and agencies	$	790	$	151	$	(1)	$	940
Commercial and other		295		555		(124)		726
Total revenues	$	1,085	$	706	$	(125)	$	1,666
Year Ended December 31, 2018	Earth Intelligence		Space Infrastructure		Eliminations		Total
U.S. federal government and agencies	$	712	$	105	$	(1)	$	816
Commercial and other		347		718		(77)		988
Total revenues	$	1,059	$	823	$	(78)	$	1,804

The Company had revenues from a commercial customer in the Space Infrastructure segment that represented 11% of total revenues for the year ended December 31, 2020. The revenues from this commercial customer in the Space Infrastructure segment were less than 10%of the Company’s total revenues for the years ended December 31, 2019 and 2018, respectively.