Industry Segment Information

9 Months Ended

Sep. 30, 2012

Industry Segment Information [Abstract]

Industry Segment Information

(2)  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,
	2012				2011				2012				2011
Launch Vehicles:
Revenues	$	140,673			$	116,538			$	393,135			$	353,178
Operating income		9,252				5,242				26,240				7,063
Identifiable assets		215,158				210,642		(2)		215,158				210,642		(2)
Capital expenditures		2,990				2,516				22,509				23,212
Depreciation and amortization		4,137				3,497				11,768				10,769
Satellites and Space Systems:
Revenues	$	129,490			$	141,130			$	370,887			$	431,963
Operating income		12,178				11,460				30,127				30,244
Identifiable assets		263,460				282,344		(2)		263,460				282,344		(2)
Capital expenditures		4,092				3,531				10,981				7,376
Depreciation and amortization		2,231				1,651				6,360				5,102
Advanced Space Programs:
Revenues	$	120,193			$	112,214			$	368,103			$	308,112
Operating income		9,883				7,966				26,976				20,285
Identifiable assets		390,892				254,769		(2)		390,892				254,769		(2)
Capital expenditures		1,142				3,098				4,558				10,294
Depreciation and amortization		1,677				1,276				5,130				3,576
Corporate and Other:
Revenues	$	(17,474	)	(1)	$	(27,712	)	(1)	$	(49,945	)	(1)	$	(82,781	)	(1)
Operating loss		—				—				(2,091	)	(3)		—
Identifiable assets		334,541				383,045		(2)		334,541				383,045		(2)
Capital expenditures		837				1,199				2,753				2,236
Depreciation and amortization		1,594				1,564				4,737				5,017
Consolidated:
Revenues	$	372,882			$	342,170			$	1,082,180			$	1,010,472
Operating income		31,313				24,668				81,252				57,592
Identifiable assets		1,204,051				1,130,800		(2)		1,204,051				1,130,800		(2)
Capital expenditures		9,061				10,344				40,801				43,118
Depreciation and amortization		9,639				7,988				27,995				24,464

(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,
	2012		2011		2012		2011
Launch Vehicles	$	15.9	$	26.1	$	44.9	$	77.8
Satellites and Space Systems		1.4		1.5		4.4		3.9
Advanced Space Programs		0.2		0.1		0.6		1.1
Total intersegment revenues	$	17.5	$	27.7	$	49.9	$	82.8

      (2)    As of December 31, 2011.

(3)      The corporate and other operating loss in 2012 is comprised solely of professional fees and other costs related to a potential acquisition that was not consummated.