Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

3.  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):

	Years Ended December 31,
	2011			2010			2009
Launch Vehicles:
Revenues	$	483,177		$	434,511		$	440,172
Operating income		14,147			21,188			14,166
Identifiable assets		210,642			212,360			151,249
Capital expenditures		27,999			50,001			10,115
Depreciation and amortization		14,293			9,412			5,954
Satellites and Space Systems:
Revenues	$	553,797		$	497,015		$	352,252
Operating income		37,623			33,775			27,329
Identifiable assets		282,344			268,804			178,233
Capital expenditures		12,433			10,675			9,931
Depreciation and amortization (2)		6,841			5,917			4,780
Advanced Space Programs:
Revenues	$	434,036		$	423,614		$	344,787
Operating income		28,024			20,999			10,798
Identifiable assets		254,769			188,184			91,981
Capital expenditures		13,515			19,586			21,739
Depreciation and amortization (2)		5,033			4,522			3,983
Corporate and Other:
Revenues (1)	$	(125,087	)	$	(60,563	)	$	(11,916	)
Operating loss (3)		—			(2,948	)		—
Identifiable assets		383,045			393,188			508,018
Capital expenditures		5,868			3,440			3,558
Depreciation and amortization		6,572			6,335			4,491
Consolidated:
Revenues	$	1,345,923		$	1,294,577		$	1,125,295
Operating income		79,794			73,014			52,293
Identifiable assets		1,130,800			1,062,536			929,481
Capital expenditures		59,815			83,702			45,343
Depreciation and amortization		32,739			26,186			19,208

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

	Years Ended December 31,
	2011		2010		2009
Launch Vehicles	$	118.3	$	53.4	$	8.0
Satellites and Space Systems		5.6		5.9		3.7
Advanced Space Programs		1.2		1.3		0.2
Total intersegment revenues	$	125.1	$	60.6	$	11.9

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

(3) 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 (see Note 2).