Significant Customers and Geographic Information

9 Months Ended

Sep. 30, 2013

Significant Customers and Geographic Information

Significant Customers and Geographic Information

NOTE 16. Significant Customers and Geographic Information

With the acquisition of GeoEye on January 31, 2013, the Company’s Chief Operating Decision Maker (“CODM”) has re-evaluated the information used to manage the business and has concluded that the Company operates in a single segment, in which it provides imagery and imagery information products and services to customers around the world. The Company uses common infrastructure and technology to collect, process and distribute its imagery products and services to all customers. The Company measures performance based on consolidated operating results and achievement of individual performance goals.

DigitalGlobe recognized net revenue related to contracts with the U.S. Government, its largest customer, of $100.8 million and $66.0 million for the three months ended September 30, 2013 and 2012, respectively, and $261.0 million and $184.2 million for the nine months ended September 30, 2013 and 2012, respectively. This represented 61.2% and 61.6% of the Company’s total net revenue for the three months ended September 30, 2013 and 2012, respectively, and 58.9% and 62.2% of the Company’s total net revenue for the nine months ended September 30, 2013 and 2012, respectively.

DigitalGlobe has organized its sales leadership and go-to market efforts around two customer groups (i) U.S. Government and (ii) Diversified Commercial. Revenue recognized for services provided to U.S. Government customers consist primarily of the EnhancedView SLA, amortization of pre-FOC payments related to the NextView agreement and other value added services. Diversified Commercial revenue consists of the Company’s DAP revenue, international defense and intelligence revenue and revenue from customers, including civil governments, providers of location-based services and other industry vertical markets. The following table summarizes net revenue for these two groups:

	For the three months ended September 30,				For the nine months ended September 30,
(dollars in millions)	2013		2012		2013		2012
U.S. Government	$	100.8	$	66.0	$	261.0	$	184.2
Diversified Commercial	64.0		41.2		182.0		111.8
Net revenue	$	164.8	$	107.2	$	443.0	$	296.0

Total U.S. and international net revenue was as follows:

	For the three months ended September 30,				For the nine months ended September 30,
(dollars in millions)	2013		2012		2013		2012
U.S.	$	116.7	$	76.4	$	307.0	$	209.0
International	48.1		30.8		136.0		87.0
Net revenue	$	164.8	$	107.2	$	443.0	$	296.0