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Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments represent components of an enterprise for which separate financial information is available that is regularly reviewed by the CODM in determining how to allocate resources and assess performance. Our Chief Executive Officer is our CODM and he uses a variety of measures to assess the performance of the Company as a whole, depending on the nature of the activity. Beginning in the first quarter of 2022, the Company’s operating and reportable segments were revised into two reportable segments, ASC and IMS, to align our market strategy and capital allocation decision making with our operating structure. Prior year information was revised to reflect the new segment structure. All other operations, which consists primarily of DRS Corporate Headquarters and certain non-operating subsidiaries of the Company, are grouped in Corporate & Eliminations.
We primarily use Adjusted EBITDA to manage the Company and allocate resources. Adjusted EBITDA of our business segments includes our net earnings before income taxes, amortization of acquired intangible assets, depreciation, restructuring costs, interest, transaction costs related to an anticipated offering of securities, acquisition and divestiture related expenses, foreign exchange, COVID-19 response costs, non-service pension expenditures and other one-time non-operational events. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of our operations on a consistent basis from period to period and provide an additional understanding of factors and trends affecting our business segments. This measure assists the CODM in assessing segment operating performance consistently over time without the impact of our capital structure, asset base and items outside the control of the management team and expenses that do not relate to our core operations.
Certain information related to our segments for the periods ended March 31, 2022 and March 31, 2021 is presented in the following tables. Consistent accounting policies have been applied by all segments within the Company, within all reporting periods. A description of our reportable segments as of March 31, 2022 and March 31, 2021 has been included in Note 1: Summary of Significant Accounting Policies. Transactions between segments generally are negotiated and accounted for under terms and conditions that are similar to other government and commercial contracts; however, these intercompany transactions are eliminated in consolidation.
Total revenues and intersegment revenues by segment for the periods ended March 31, 2022 and, March 31, 2021 consists of the following:
Three Months Ended March 31,
(Dollars in millions)20222021
ASC$396 $483 
IMS218 201 
Corporate & Eliminations(2)(3)
Total revenue$612 $681 
(Dollars in millions)20222021
ASC$2 $3 
IMS— — 
Total intersegment revenue$2 $3 
Depreciation by segment as of March 31, 2022 and March 31, 2021 consists of the following:
Three Months Ended March 31,
(Dollars in millions)20222021
ASC$9 $8 
IMS4 4
Total depreciation$13 $12 
Total assets by segment as of March 31, 2022 and December 31, 2021 consist of the following:
(Dollars in millions)March 31, 2022December 31, 2021
ASC$1,456 $1,545 
IMS1,143 1,145 
Corporate & Eliminations257 379 
Held for Sale$177 $— 
Total assets$3,033 $3,069 
Reconciliation of reportable segment Adjusted EBITDA to Net Earnings (loss) consists of the following:
(Dollars in millions)March 31, 2022March 31, 2021
Adjusted EBITDA
ASC$32 $54 
IMS41 18 
Corporate & Eliminations— (1)
Total Adjusted EBITDA73 71 
Amortization of intangibles(2)(2)
Depreciation(13)(12)
Restructuring costs— — 
Interest expense(8)(9)
Deal related transaction costs(2)(4)
Acquisition and divestiture related expenses— — 
Foreign exchange— — 
COVID-19 response costs— (3)
Non-service pension expense— — 
Other one-time non-operational events— — 
Income tax (provision) benefit(12)(12)
Net earnings$36 $29