Industry Segment Information

9 Months Ended

Sep. 30, 2011

Industry Segment Information [Abstract]

Industry Segment Information

(3)  Industry Segment Information

Orbital’s products and services are grouped into three reportable business segments:  launch vehicles, satellites and space systems and advanced space programs.  Reportable segments are generally organized based upon product lines.  Corporate office transactions that have not been attributed to a particular segment, as well as consolidating eliminations and adjustments, are reported in corporate and other.  The primary products and services from which the company’s reportable segments derive revenues are:

• Launch Vehicles - Rockets that are used as small- and medium-class space launch vehicles that place satellites into Earth orbit and escape trajectories, interceptor and target vehicles for missile defense systems and suborbital launch vehicles that place payloads into a variety of high-altitude trajectories.

• Satellites and Space Systems - Small- and medium-class satellites that are used to enable global and regional communications and broadcasting, conduct space-related scientific research, collect imagery and other remotely-sensed data about the Earth, carry out interplanetary and other deep-space exploration missions and demonstrate new space technologies.

• Advanced Space Programs - Human-rated space systems for Earth-orbit and deep-space exploration, and small- and medium-class satellites primarily used for national security space programs and to demonstrate new space technologies.

Intersegment sales are generally negotiated and accounted for under terms and conditions that are similar to other commercial and government contracts.  Substantially all of the company’s assets and operations are located within the United States.

The following table presents operating information and identifiable assets by reportable segment (in thousands):

	Quarters Ended September 30,			Nine Months Ended September 30,
	2011	2010		2011	2010
Launch Vehicles:
Revenues(1)	$116,538	$105,828		$353,178	$301,872
Operating income	5,242	4,988		7,063	12,988
Identifiable assets	209,216	212,360	(2)	209,216	212,360	(2)
Capital expenditures	2,516	15,472		23,212	37,897
Depreciation and amortization	3,497	1,865		10,769	5,479
Satellites and Space Systems:
Revenues(1)	$141,130	$121,844		$431,963	$361,788
Operating income	11,460	7,441		30,244	22,660
Identifiable assets	293,394	268,804	(2)	293,394	268,804	(2)
Capital expenditures	3,531	4,210		7,376	7,537
Depreciation and amortization	1,651	1,670	(3)	5,102	4,226	(3)
Advanced Space Programs:
Revenues(1)	$112,214	$103,204		$308,112	$331,673
Operating income	7,966	7,835		20,285	15,829
Identifiable assets	259,345	188,184	(2)	259,345	188,184	(2)
Capital expenditures	3,098	4,867		10,294	11,049
Depreciation and amortization	1,276	1,088	(3)	3,576	3,431	(3)
Corporate and Other:
Revenues(1)	$(27,712)	$(16,357)		$(82,781)	$(46,898)
Operating loss	—	(908)	(4)	—	(2,528)	(4)
Identifiable assets	435,229	393,188	(2)	435,229	393,188	(2)
Capital expenditures	1,199	542		2,236	2,199
Depreciation and amortization	1,564	1,711		5,017	4,591
Consolidated:
Revenues	$342,170	$314,519		$1,010,472	$948,435
Operating income	24,668	19,356		57,592	48,949
Identifiable assets	1,197,184	1,062,536	(2)	1,197,184	1,062,536	(2)
Capital expenditures	10,344	25,091		43,118	58,682
Depreciation and amortization	7,988	6,334		24,464	17,727

(1)   Corporate and other revenues are comprised solely of the elimination of intersegment revenues summarized as follows (in millions):  

	Quarters Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Launch Vehicles	$	26.1	$	14.4	$	77.8	$	41.4
Satellites and Space Systems		1.5		1.7		3.9		4.5
Advanced Space Programs		0.1		0.3		1.1		1.0
Total intersegment revenues	$	27.7	$	16.4	$	82.8	$	46.9

(2)     As of December 31, 2010.

(3)     Prior period amounts have been reclassified to conform to the current period presentation.

(4) The corporate and other operating loss in 2010 is comprised of unallocated corporate-level costs and includes $1.6 million of transaction expenses incurred in connection with a business acquisition.