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Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment InformationOperating 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, deal related transaction costs, 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 years ended December 31, 2022, 2021 and 2020, 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 December 31, 2022 and 2021 has been included in Note 1: Summary of Significant Accounting Policies. Intersegment sales are generally transferred at cost to the buying segment, and the sourcing segment does not recognize a profit. Such intercompany operating income is eliminated in consolidation, so that the Company’s total revenues and operating earnings reflect only those transactions with external customers.
Total revenues and intersegment revenues by segment for the years ended December 31, 2022, 2021 and 2020 consists of the following:
(Dollars in millions)202220212020
ASC$1,733 $1,940 $1,958 
IMS983 959 834 
Corporate & Eliminations(23)(20)(14)
Total revenue
$2,693 $2,879 $2,778 
(Dollars in millions)202220212020
ASC$21 $19 $13 
IMS2 1 1 
Total intersegment revenue
$23 $20 $14 
Depreciation by segment as of December 31, 2022, 2021 and 2020 consists of the following:
(Dollars in millions)202220212020
ASC$36 $33 $30 
IMS19 1614 
Total depreciation
$55 $49 $44 
Total assets by segment as of December 31, 2022 and 2021 consist of the following:
(Dollars in millions)20222021
ASC$2,167 $1,545 
IMS1,152 1,145 
Corporate & Eliminations358 379 
Total assets
$3,677 $3,069 
Reconciliation of reportable segment Adjusted EBITDA to Net Earnings (loss) consists of the following:
(Dollars in millions)202220212020
Adjusted EBITDA
ASC$199 $220 $213 
IMS119 90 55 
Corporate & Eliminations— — — 
Total Adjusted EBITDA
$318 $310 $268 
Amortization of intangibles(10)(9)(9)
Depreciation(55)(49)(44)
Restructuring costs(3)(5)(12)
Interest expense(34)(35)(64)
Deal related transaction costs (43)(5)(9)
Other non-operating expense(2)(7)(18)
Gain on sale of dispositions354 — — 
Income tax provision(120)(46)(27)
Net earnings
$405 $154 $85