Revenues

3 Months Ended

Mar. 31, 2023

Revenues

Revenues

10. REVENUES

As of March 31, 2023, the Company had $3,292 million of remaining performance obligations, which represents the transaction price of firm orders less inception-to-date revenues recognized. Remaining performance obligations generally exclude unexercised contract options and indefinite delivery/indefinite quantity contracts. The Company expects to recognize revenues relating to existing performance obligations of approximately $1,309 million, $851 million and $1,132 million for the remaining nine months ending December 31, 2023, the year ending December 31, 2024 and thereafter, respectively.

Contract liabilities by segment are as follows:

As of March 31, 2023	Earth Intelligence		Space Infrastructure		Total
Contract liabilities	$	99	$	288	$	387
As of December 31, 2022	Earth Intelligence		Space Infrastructure		Total
Contract liabilities	$	107	$	257	$	364

Contract liabilities increased to $387 million as of March 31, 2023 from $364 million as of December 31, 2022. The increase of $23 million in contract liabilities is primarily due to an increase in contract liabilities within the Space Infrastructure segment driven by recent contracts awarded to the Company. The Company had an immaterial balance of non-current contract liabilities as of March 31, 2023 and December 31, 2022. Non-current contract liabilities are included in Other non-current liabilities on the Unaudited Condensed Consolidated Balance Sheets.

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

Three Months Ended March 31, 2023	Earth Intelligence		Space Infrastructure		Eliminations		Total
Product revenues	$	—	$	176	$	—	$	176
Service revenues		243		—		—		243
Intersegment		—		19		(19)		—
	$	243	$	195	$	(19)	$	419
Three Months Ended March 31, 2022	Earth Intelligence		Space Infrastructure		Eliminations		Total
Product revenues	$	—	$	154	$	—	$	154
Service revenues		251		—		—		251
Intersegment		—		23		(23)		—
	$	251	$	177	$	(23)	$	405

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 to measure progress. Under the cost-to-cost method, revenue is recognized based on the proportion of total costs incurred to estimated total costs-at-completion ("EAC"). Revenue recognition is also contingent on estimated contractual consideration. 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 costs associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to EAC cost or estimated contractual consideration are recorded as a cumulative catch-up adjustment.

The Company has certain programs in the Space Infrastructure segment which contain significant development efforts that have experienced delays and cost growth primarily due to the complexity of the programs resulting in an overall loss position. The Company recorded EAC adjustments on loss contracts of $7 million and $9 million for the three months ended March 31, 2023 and 2022, respectively.

The Company recognized revenue from post-launch services within the Space Infrastructure segment of $6 million for both the three months ended March 31, 2023 and 2022.

Revenues based on the geographic location of customers are as follows:

	Three Months Ended
	March 31,
	2023		2022
United States	$	365	$	335
Asia		20		22
Middle East		12		15
Europe		8		17
Australia		6		7
Canada		3		6
Other		5		3
Total revenues	$	419	$	405

Revenues from significant customers are as follows:

Three Months Ended March 31, 2023	Earth Intelligence		Space Infrastructure		Eliminations		Total
U.S. federal government and agencies	$	168	$	75	$	—	$	243
Commercial and other		75		120		(19)		176
Total revenues	$	243	$	195	$	(19)	$	419
Three Months Ended March 31, 2022	Earth Intelligence		Space Infrastructure		Eliminations		Total
U.S. federal government and agencies	$	169	$	63	$	—	$	232
Commercial and other		82		114		(23)		173
Total revenues	$	251	$	177	$	(23)	$	405

The Company had revenues from commercial customer (“Customer A”) in the Space Infrastructure segment that represented 13% of total revenues for the three months ended March 31, 2023. The revenues from commercial Customer A were below 10% for the three months ended March 31, 2022. The Company had revenues from another commercial customer (“Customer B”) in the Space Infrastructure segment that were below 10% for the three months ended March 31, 2023. The revenues from commercial Customer B represented 11% of the Company’s total revenues for the three months ended March 31, 2022.