Segment information

9 Months Ended

Sep. 30, 2021

Segment information

Segment information

13. SEGMENT INFORMATION

The Company’s business is organized into two reportable segments: Earth Intelligence and Space Infrastructure. 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 Chief Operating Decision Maker (“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:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Earth Intelligence	$	271	$	274	$	804	$	823
Space Infrastructure		180		181		541		497
Intersegment eliminations		(14)		(19)		(43)		(64)
Total revenues	$	437	$	436	$	1,302	$	1,256

Adjusted EBITDA:
Earth Intelligence	$	124	$	128	$	362	$	407
Space Infrastructure		14		12		29		(16)
Intersegment eliminations		(5)		(7)		(17)		(21)
Corporate and other expenses		(20)		(21)		(62)		(43)
Transaction and integration related expense		(1)		(2)		(1)		(6)
Impairment loss		—		—		—		(14)
Reduction of gain on sale leaseback		—		(4)		—		(4)
Gain on remeasurement of Vricon equity interest 1		—		85		—		85
Depreciation and amortization		(74)		(95)		(221)		(274)
Interest expense, net		(25)		(36)		(127)		(133)
Interest income 2		1		2		2		3
Equity in income from joint ventures, net of tax		—		—		—		(1)
Income (loss) from continuing operations before taxes	$	14	$	62	$	(35)	$	(17)

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 for the three and nine months ended September 30, 2020. The gain is included in Other (income) expense, net on the Unaudited Condensed Consolidated Statements of Operations.

² Included in Other income, net on the Unaudited Condensed Consolidated Statements of Operations.

The Company’s capital expenditures are as follows:

Three Months Ended September 30, 2021	Earth Intelligence		Space Infrastructure		Corporate and Eliminations		Total
Capital expenditures:
Property, plant and equipment	$	19	$	3	$	5	$	27
Intangible assets		22		—		2		24
	$	41	$	3	$	7	$	51
Three Months Ended September 30, 2020	Earth Intelligence		Space Infrastructure		Corporate and Eliminations		Total
Capital expenditures:
Property, plant and equipment	$	53	$	6	$	11	$	70
Intangible assets		23		—		3		26
	$	76	$	6	$	14	$	96
Nine Months Ended September 30, 2021	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Capital expenditures:
Property, plant and equipment	$	47	$	11	$	26	$	84
Intangible assets		64		—		8		72
	$	111	$	11	$	34	$	156
Nine Months Ended September 30, 2020	Earth Intelligence		Space Infrastructure		Corporate and eliminations		Total
Capital expenditures:
Property, plant and equipment	$	115	$	14	$	29	$	158
Intangible assets		59		—		7		66
	$	174	$	14	$	36	$	224

Substantially all of the Company’s long-lived tangible assets were in the United States as of September 30, 2021 and December 31, 2020.