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Segment Information
 12 Months Ended
Dec. 31, 2024
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.
Effective for the fourth quarter of 2024, operating earnings is the segment profit measure the CODM primarily uses to manage the Company and allocate resources. Operating earnings 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. Prior year information was revised to reflect operating earnings as the segment profit measure.
Certain information related to our segments for the years ended December 31, 2024, 2023 and 2022, 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, 2024 and 2023, 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.
Revenues, expenses, and operating earnings by segment and the reconciliation to earnings before taxes for the years ended December 31, 2024, 2023 and 2022, consists of the following:
(Dollars in millions)202420232022
Revenues
ASC$2,118 $1,831 $1,733 
IMS1,138 1,021 983 
Corporate & Eliminations(22)(26)(23)
Total revenues
$3,234 $2,826 $2,693 
Cost of revenues
ASC
$1,598 $1,370 $1,335 
IMS
922 834 806 
Corporate & Eliminations
(22)(26)(23)
Total cost of revenues
$2,498 $2,178 $2,118 
General and administrative
ASC
$234 $226 $194 
IMS
81 79 62 
Corporate & Eliminations
7 (3)43 
Total general and administrative
$322 $302 $299 
Company-funded research and development
ASC
$74 $66 $44 
IMS
18 16 14 
Corporate & Eliminations
— — — 
Total company-funded research and development
$92 $82 $58 
Amortization of intangibles
ASC
$22 $22 $10 
IMS
— — — 
Corporate & Eliminations
— — — 
Total amortization of intangibles
$22 $22 $10 
Other segment items
ASC
$7 $11 $(353)
IMS
— — — 
Corporate & Eliminations
— — — 
Total other segment items(1)
$7 $11 $(353)
Operating earnings
ASC
$183 $136 $503 
IMS
117 92 101 
Corporate & Eliminations
(7)3 (43)
Total operating earnings
$293 $231 $561 
Interest expense
(21)(36)(34)
Other, net
(8)(3)(2)
Earnings before taxes
$264 $192 $525 
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(1)Includes ASC restructuring costs for 2024, 2023 and 2022 and ASC gain on divestitures for 2022.
Total intersegment revenues by segment for the years ended December 31, 2024, 2023 and 2022, consists of the following:
(Dollars in millions)202420232022
ASC$21 $25 $21 
IMS1 1 2 
Total intersegment revenues
$22 $26 $23 
Depreciation by segment for the years ended December 31, 2024, 2023 and 2022, consists of the following:
(Dollars in millions)202420232022
ASC$48 $44 $36 
IMS21 19 19 
Total depreciation
$69 $63 $55 
Total assets by segment as of December 31, 2024 and 2023, consists of the following:
(Dollars in millions)20242023
ASC$2,249 $2,244 
IMS1,225 1,146 
Corporate & Eliminations710 531 
Total assets
$4,184 $3,921