Segment information

12 Months Ended

Dec. 31, 2020

Segment information

Segment information

17.  SEGMENT INFORMATION

The Company’s business is organized into two reportable segments: Earth Intelligence and Space Infrastructure. With the Company’s closing of the MDA Transaction on April 8, 2020, MDA is no longer considered a reportable segment and 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 (loss) 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. Corporate and other expenses include 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,
	2020		2019		2018
Revenues:
Earth Intelligence	$	1,081	$	1,085	$	1,059
Space Infrastructure		721		706		823
Intersegment eliminations		(79)		(125)		(78)
Total revenues	$	1,723	$	1,666	$	1,804

Adjusted EBITDA:
Earth Intelligence	$	513	$	548	$	516
Space Infrastructure		(3)		(17)		(75)
Intersegment eliminations		(27)		(29)		(9)
Corporate and other expenses		(61)		(86)		(49)
Restructuring		—		(18)		(13)
Transaction and integration related expense		(7)		(16)		(33)
Impairment losses, including inventory		(47)		(17)		(652)
Satellite insurance recovery		—		183		—
(Loss) gain on sale of assets		(1)		136		33
CEO severance		—		(3)		—
Gain on remeasurement of Vricon equity interest 1		85		—		—
Depreciation and amortization		(348)		(376)		(439)
Interest expense, net		(175)		(219)		(200)
Interest income 2		3		2		—
Equity in income from joint ventures, net of tax		(1)		(11)		(2)
(Loss) income from continuing operations before taxes	$	(69)	$	77	$	(923)

¹ As a result of the Vricon Acquisition, the Company was required to remeasure its previously held equity interest in Vricon at its acquisition date fair value which resulted in a gain of $85 million. The gain is included in Other (income) expense, net on the Consolidated Statements of Operations.

²Included in Other (income) expense, net on the Consolidated Statements of Operations.

The Company’s capital expenditures are as follows:

Year Ended December 31, 2020	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Capital expenditures:
Property, plant and equipment	$	147	$	21	$	53	$	221
Intangible assets		79		1		7		87
	$	226	$	22	$	60	$	308
Year Ended December 31, 2019	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Capital expenditures:
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
Capital expenditures:
Property, plant and equipment	$	158	$	22	$	(30)	$	150
Intangible assets		55		1		—		56
	$	213	$	23	$	(30)	$	206

Substantially all of the Company’s long-lived tangible assets were in the United States as of December 31, 2020, 2019 and 2018, respectively.