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Segment Information
 12 Months Ended
Dec. 31, 2023
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, deal-related transaction costs, other non-operating expenses such as foreign exchange, COVID-19 response costs, non-service pension expenditures, legal liability accrual reversals, and other one-time non-operational events as well as gains (losses) on business disposals. 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, 2023, 2022 and 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 December 31, 2023 and 2022, 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, 2023, 2022 and 2021, consists of the following:
(Dollars in millions)202320222021
ASC$1,831 $1,733 $1,940 
IMS1,021 983 959 
Corporate & Eliminations(26)(23)(20)
Total revenues
$2,826 $2,693 $2,879 
(Dollars in millions)202320222021
ASC$25 $21 $19 
IMS1 2 1 
Total intersegment revenues
$26 $23 $20 
Depreciation by segment for the years ended December 31, 2023, 2022 and 2021, consists of the following:
(Dollars in millions)202320222021
ASC$44 $36 $33 
IMS19 19 16 
Total depreciation
$63 $55 $49 
Total assets by segment as of December 31, 2023 and 2022, consist of the following:
(Dollars in millions)20232022
ASC$2,244 $2,167 
IMS1,146 1,152 
Corporate & Eliminations531 358 
Total assets
$3,921 $3,677 
Reconciliation of reportable segment adjusted EBITDA to net earnings for the years ended December 31, 2023, 2022 and 2021, consists of the following:
(Dollars in millions)202320222021
Adjusted EBITDA
ASC$215 $199 $220 
IMS109 119 90 
Corporate & Eliminations— — — 
Total adjusted EBITDA
$324 $318 $310 
Amortization of intangibles(22)(10)(9)
Depreciation(63)(55)(49)
Restructuring costs(11)(3)(5)
Interest expense(36)(34)(35)
Deal-related transaction costs (7)(43)(5)
Other one-time non-operational events7 (2)(7)
Gain on sale of dispositions— 354 — 
Income tax provision(24)(120)(46)
Net earnings
$168 $405 $154