Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information [Abstract]

Segment Information

(2) 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, and advanced flight systems for atmospheric and space missions.

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,
	2013			2012			2013			2012
Launch Vehicles:
Revenues	$	127,870		$	140,673		$	396,189		$	393,135
Operating income		11,267			9,252			33,822			26,240
Identifiable assets		199,129			206,194	(2)		199,129			206,194	(2)
Capital expenditures		2,311			2,990			6,984			22,509
Depreciation and amortization		4,745			4,137			13,622			11,768
Satellites and Space Systems:
Revenues	$	88,125		$	129,490		$	282,736		$	370,887
Operating income		8,141			12,178			29,615			30,127
Identifiable assets		270,826			278,008	(2)		270,826			278,008	(2)
Capital expenditures		4,175			4,092			14,548			10,981
Depreciation and amortization		2,067			2,231			6,299			6,360
Advanced Space Programs:
Revenues	$	121,259		$	120,193		$	351,138		$	368,103
Operating income		6,198			9,883			19,582			26,976
Identifiable assets		436,913			390,059	(2)		436,913			390,059	(2)
Capital expenditures		836			1,142			3,598			4,558
Depreciation and amortization		2,403			1,677			6,438			5,130
Corporate and Other:
Revenues(1)	$	(15,278	)	$	(17,474	)	$	(40,193	)	$	(49,945	)
Operating loss		-			-			-			(2,091	)(3)
Identifiable assets		338,112			337,193	(2)		338,112			337,193	(2)
Capital expenditures		374			837			2,399			2,753
Depreciation and amortization		1,551			1,594			4,665			4,737
Consolidated:
Revenues	$	321,976		$	372,882		$	989,870		$	1,082,180
Operating income		25,606			31,313			83,019			81,252
Identifiable assets		1,244,980			1,211,454	(2)		1,244,980			1,211,454	(2)
Capital expenditures		7,696			9,061			27,529			40,801
Depreciation and amortization		10,766			9,639			31,024			27,995

⁽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,
	2013		2012		2013		2012
Launch Vehicles	$	14.1	$	15.9	$	36.1	$	44.9
Satellites and Space Systems		1.0		1.4		3.3		4.4
Advanced Space Programs		0.2		0.2		0.8		0.6
Total intersegment revenues	$	15.3	$	17.5	$	40.2	$	49.9

⁽²⁾ As of December 31, 2012.

⁽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.