Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 27, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-38228 | |
Entity Registrant Name | Maxar Technologies Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2809420 | |
Entity Address, Address Line One | 1300 W. 120th Avenue, | |
Entity Address, City or Town | Westminster | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80234 | |
City Area Code | 303 | |
Local Phone Number | 684-7660 | |
Security 12b Title | Common stock par value of $0.0001 per share | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | MAXR | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 74,561,562 | |
Entity Central Index Key | 0001121142 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 436 | $ 437 | $ 1,279 | $ 1,302 |
Costs and expenses: | ||||
Selling, general and administrative | 110 | 89 | 320 | 261 |
Depreciation and amortization | 64 | 74 | 199 | 221 |
Gain on sale of assets | (1) | (1) | ||
Operating income | 43 | 37 | 101 | 86 |
Interest expense, net | 30 | 25 | 129 | 127 |
Other expense (income), net | 12 | (2) | 7 | (6) |
Income (loss) before taxes | 1 | 14 | (35) | (35) |
Income tax expense (benefit) | 5 | 6 | (10) | |
Net (loss) income | $ (4) | $ 14 | $ (41) | $ (25) |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.05) | $ 0.19 | $ (0.56) | $ (0.36) |
Diluted (in dollars per share) | $ (0.05) | $ 0.19 | $ (0.56) | $ (0.36) |
Product | ||||
Revenues: | ||||
Total revenues | $ 161 | $ 166 | $ 469 | $ 498 |
Costs and expenses: | ||||
Product and service costs, excluding depreciation and amortization | 125 | 144 | 380 | 448 |
Service | ||||
Revenues: | ||||
Total revenues | 275 | 271 | 810 | 804 |
Costs and expenses: | ||||
Product and service costs, excluding depreciation and amortization | $ 95 | $ 93 | $ 280 | $ 286 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
Net (loss) income | $ (4) | $ 14 | $ (41) | $ (25) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain on interest rate swaps | 11 | 3 | 23 | 13 |
Foreign currency translation adjustments | (1) | (2) | (1) | |
Gain on pension and other postretirement benefit plans | 1 | 3 | ||
Other comprehensive income, net of tax | 10 | 4 | 21 | 15 |
Comprehensive (loss) income, net of tax | $ 6 | $ 18 | $ (20) | $ (10) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 28 | $ 47 |
Trade and other receivables, net | 399 | 355 |
Inventory, net | 39 | 39 |
Advances to suppliers | 27 | 31 |
Prepaid assets | 32 | 35 |
Other current assets | 64 | 22 |
Total current assets | 589 | 529 |
Non-current assets: | ||
Orbital receivables, net | 348 | 368 |
Property, plant and equipment, net | 1,036 | 940 |
Intangible assets, net | 712 | 787 |
Non-current operating lease assets | 136 | 145 |
Goodwill | 1,627 | 1,627 |
Other non-current assets | 109 | 102 |
Total assets | 4,557 | 4,498 |
Current liabilities: | ||
Accounts payable | 91 | 75 |
Accrued liabilities | 73 | 43 |
Accrued compensation and benefits | 65 | 111 |
Contract liabilities | 245 | 289 |
Current portion of long-term debt | 22 | 24 |
Current operating lease liabilities | 33 | 42 |
Other current liabilities | 70 | 38 |
Total current liabilities | 599 | 622 |
Non-current liabilities: | ||
Pension and other postretirement benefits | 125 | 134 |
Operating lease liabilities | 136 | 138 |
Long-term debt | 2,172 | 2,062 |
Other non-current liabilities | 64 | 79 |
Total liabilities | 3,096 | 3,035 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock ($0.0001 par value, 240 million common shares authorized; 74.3 million and 72.7 million issued and outstanding at September 30, 2022 and December 31, 2021, respectively) | ||
Additional paid-in capital | 2,256 | 2,235 |
Accumulated deficit | (763) | (720) |
Accumulated other comprehensive loss | (32) | (53) |
Total Maxar stockholders' equity | 1,461 | 1,462 |
Noncontrolling interest | 1 | |
Total stockholders' equity | 1,461 | 1,463 |
Total liabilities and stockholders' equity | $ 4,557 | $ 4,498 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 240 | 240 |
Common stock, shares issued | 74.3 | 72.7 |
Common stock, shares outstanding | 74.3 | 72.7 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows provided by (used in): Operating activities: | ||
Net loss | $ (41) | $ (25) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 199 | 221 |
Stock-based compensation expense | 35 | 31 |
Amortization of debt issuance costs and other non-cash interest expense | 12 | 11 |
Loss from early extinguishment of debt | 53 | 41 |
Cumulative adjustment to SXM-7 revenue | 30 | |
Deferred income tax expense | 1 | 2 |
Other | 11 | (3) |
Changes in operating assets and liabilities: | ||
Trade and other receivables, net | (31) | (33) |
Accounts payable and liabilities | 5 | (57) |
Contract liabilities | (44) | (20) |
Other | (9) | (12) |
Cash provided by operating activities - continuing operations | 191 | 186 |
Cash used in operating activities - discontinued operations | (1) | |
Cash provided by operating activities | 191 | 185 |
Investing activities: | ||
Purchase of property, plant and equipment and development or purchase of software | (226) | (156) |
Acquisition of investment | (2) | |
Cash used in investing activities - continuing operations | (228) | (156) |
Financing activities: | ||
Cash paid to extinguish existing Term Loan B | (1,341) | |
Proceeds from amendment of Term Loan B, net of discount | 1,329 | |
Repurchase of 9.75% 2023 Notes, including premium | (537) | (384) |
Proceeds from issuance of 7.75% 2027 Notes | 500 | |
Net proceeds from Revolving Credit Facility | 125 | |
Debt issuance costs paid | (27) | |
Settlement of securitization liability | (10) | (9) |
Repayments of long-term debt | (12) | (7) |
Net proceeds from issuance of common stock | 380 | |
Other | (10) | (4) |
Cash provided by (used in) financing activities - continuing operations | 17 | (24) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (20) | 5 |
Cash, cash equivalents, and restricted cash, beginning of year | 48 | 31 |
Cash, cash equivalents, and restricted cash, end of period | $ 28 | $ 36 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Reconciliation of cash flow information: | ||
Cash and cash equivalents | $ 28 | $ 36 |
Total cash, cash equivalents, and restricted cash | $ 28 | $ 36 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Common Stock | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling interest | Total |
Balance at the beginning of period at Dec. 31, 2020 | $ 1,818 | $ (763) | $ (120) | $ 1 | $ 936 | |
Balance at the beginning of period (in shares) at Dec. 31, 2020 | 61.2 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Common stock issuance, net of transaction fees | 380 | 380 | ||||
Common stock issuance, net of transaction fees (in shares) | 10 | |||||
Common stock issued under employee stock purchase plan | 2 | 2 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.1 | |||||
Equity classified stock-based compensation expense | 7 | 7 | ||||
Equity classified stock-based compensation expense (in shares) | 0.4 | |||||
Comprehensive income (loss) | (84) | 6 | (78) | |||
Balance at the end of period at Mar. 31, 2021 | 2,207 | (847) | (114) | 1 | 1,247 | |
Balance at the end of period (in shares) at Mar. 31, 2021 | 71.7 | |||||
Balance at the beginning of period at Dec. 31, 2020 | 1,818 | (763) | (120) | 1 | 936 | |
Balance at the beginning of period (in shares) at Dec. 31, 2020 | 61.2 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Comprehensive income (loss) | (10) | |||||
Balance at the end of period at Sep. 30, 2021 | 2,224 | (790) | (105) | 1 | 1,330 | |
Balance at the end of period (in shares) at Sep. 30, 2021 | 72.6 | |||||
Balance at the beginning of period at Mar. 31, 2021 | 2,207 | (847) | (114) | 1 | 1,247 | |
Balance at the beginning of period (in shares) at Mar. 31, 2021 | 71.7 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Common stock issued under employee stock purchase plan | 2 | 2 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.1 | |||||
Equity classified stock-based compensation expense | 2 | 2 | ||||
Equity classified stock-based compensation expense (in shares) | 0.6 | |||||
Dividends | (1) | (1) | ||||
Comprehensive income (loss) | 45 | 5 | 50 | |||
Balance at the end of period at Jun. 30, 2021 | 2,211 | (803) | (109) | 1 | 1,300 | |
Balance at the end of period (in shares) at Jun. 30, 2021 | 72.4 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Common stock issued under employee stock purchase plan | 2 | 2 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.1 | |||||
Equity classified stock-based compensation expense | 11 | 11 | ||||
Equity classified stock-based compensation expense (in shares) | 0.1 | |||||
Dividends | (1) | (1) | ||||
Comprehensive income (loss) | 14 | 4 | 18 | |||
Balance at the end of period at Sep. 30, 2021 | 2,224 | (790) | (105) | 1 | 1,330 | |
Balance at the end of period (in shares) at Sep. 30, 2021 | 72.6 | |||||
Balance at the beginning of period at Dec. 31, 2021 | 2,235 | (720) | (53) | 1 | $ 1,463 | |
Balance at the beginning of period (in shares) at Dec. 31, 2021 | 72.7 | 72.7 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Common stock issued under employee stock purchase plan | 2 | $ 2 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.1 | |||||
Equity classified stock-based compensation expense | 6 | 6 | ||||
Equity classified stock-based compensation expense (in shares) | 0.6 | |||||
Comprehensive income (loss) | (7) | 11 | 4 | |||
Balance at the end of period at Mar. 31, 2022 | 2,243 | (727) | (42) | 1 | 1,475 | |
Balance at the end of period (in shares) at Mar. 31, 2022 | 73.4 | |||||
Balance at the beginning of period at Dec. 31, 2021 | 2,235 | (720) | (53) | 1 | $ 1,463 | |
Balance at the beginning of period (in shares) at Dec. 31, 2021 | 72.7 | 72.7 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Comprehensive income (loss) | $ (20) | |||||
Balance at the end of period at Sep. 30, 2022 | 2,256 | (763) | (32) | $ 1,461 | ||
Balance at the end of period (in shares) at Sep. 30, 2022 | 74.3 | 74.3 | ||||
Balance at the beginning of period at Mar. 31, 2022 | 2,243 | (727) | (42) | 1 | $ 1,475 | |
Balance at the beginning of period (in shares) at Mar. 31, 2022 | 73.4 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Common stock issued under employee stock purchase plan | 2 | 2 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.1 | |||||
Equity classified stock-based compensation expense | 1 | 1 | ||||
Equity classified stock-based compensation expense (in shares) | 0.7 | |||||
Dividends | (1) | (1) | ||||
Comprehensive income (loss) | (30) | (30) | ||||
Other | $ (1) | (1) | ||||
Balance at the end of period at Jun. 30, 2022 | 2,246 | (758) | (42) | 1,446 | ||
Balance at the end of period (in shares) at Jun. 30, 2022 | 74.2 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Equity classified stock-based compensation expense | 10 | 10 | ||||
Equity classified stock-based compensation expense (in shares) | 0.1 | |||||
Dividends | (1) | (1) | ||||
Comprehensive income (loss) | (4) | 10 | 6 | |||
Balance at the end of period at Sep. 30, 2022 | $ 2,256 | $ (763) | $ (32) | $ 1,461 | ||
Balance at the end of period (in shares) at Sep. 30, 2022 | 74.3 | 74.3 |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Consolidated Statements of Change in Stockholders' Equity | ||||||
Dividends per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
General business description
General business description | 9 Months Ended |
Sep. 30, 2022 | |
General business description | |
General business description | 1. GENERAL BUSINESS DESCRIPTION Maxar Technologies Inc. (the “Company” or “Maxar”) is a provider of comprehensive space solutions and secure, precise, geospatial intelligence. Maxar helps government and commercial customers monitor, understand and navigate our changing planet; deliver global broadband communications; and explore and advance the use of space. The Company’s approach combines decades of deep mission understanding and a proven commercial and defense foundation to deploy solutions and deliver insights with speed, scale and cost effectiveness. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Unaudited Condensed Consolidated Financial Statements include the accounts of Maxar Technologies Inc., and all consolidated subsidiary entities. The Company’s Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany balances and transactions are eliminated on consolidation. The Company’s Unaudited Condensed Consolidated Financial Statements are presented in U.S. dollars and have been prepared on a historical cost basis, except for certain financial assets and liabilities including derivative financial instruments which are stated at fair value. The Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K filed with the SEC. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. In management’s opinion, all adjustments of a normal recurring nature that are necessary for a fair statement of the accompanying Unaudited Condensed Consolidated Financial Statements have been included. Use of estimates, assumptions and judgments The preparation of the Unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the reporting date, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates. Recent Accounting Guidance Adopted Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which together with subsequent amendments, is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance was effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. Overnight Financing Rate (“SOFR”) in connection with the Company's amendment and restatement of its Syndicated Credit Facility (as defined below) and elected to apply the contract modification optional expedient to the amendments and consider the amendments as a continuation of the existing contracts without performing an assessment that would otherwise be required under U.S. GAAP. See Note 8 for additional details regarding the amendments to the existing interest swaps. |
Trade and other receivables, ne
Trade and other receivables, net | 9 Months Ended |
Sep. 30, 2022 | |
Trade and other receivables, net | |
Trade and other receivables, net | 3. TRADE AND OTHER RECEIVABLES, NET September 30, December 31, 2022 2021 Billed $ 195 $ 162 Unbilled 157 143 Total trade receivables 352 305 Orbital receivables, current portion 44 49 Other 4 2 Allowance for doubtful accounts (1) (1) Trade and other receivables, net $ 399 $ 355 The Company had orbital receivables from 13 customers for which the largest customer’s value represented 30% of the stated current and non-current balance sheet values as of both September 30, 2022 and December 31, 2021. During the first quarter of 2021, the Company reduced its outstanding receivables related to the SXM-7 satellite for the final milestone and expected orbital payments by $15 million and $14 million, respectively. There have been no changes in the allowance for expected credit losses related to non-current orbital receivables for the nine months ended September 30, 2022. Securitization liabilities are as follows: September 30, December 31, 2022 2021 Current portion $ 17 $ 16 Non-current portion 21 32 Total securitization liabilities $ 38 $ 48 |
Inventory, net
Inventory, net | 9 Months Ended |
Sep. 30, 2022 | |
Inventory, net | |
Inventory, net | 4 . INVENTORY, NET September 30, December 31, 2022 2021 Raw materials $ 36 $ 34 Work in process 5 6 Total $ 41 $ 40 Inventory reserve (2) (1) Inventory, net $ 39 $ 39 |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 2022 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | 5 . September 30, December 31, 2022 2021 Satellites $ 397 $ 397 Equipment 209 221 Computer hardware 115 95 Leasehold improvements 85 83 Furniture and fixtures 16 16 Construction in process 1 796 668 Property, plant and equipment, at cost 1,618 1,480 Accumulated depreciation (582) (540) Property, plant and equipment, net $ 1,036 $ 940 1 Depreciation expense for property, plant and equipment was $20 million and $23 million for the three months ended September 30, 2022 and 2021, respectively, and $58 million and $67 million for the nine months ended September 30, 2022 and 2021, respectively. |
Intangible assets
Intangible assets | 9 Months Ended |
Sep. 30, 2022 | |
Intangible assets | |
Intangible assets | 6. INTANGIBLE ASSETS September 30, 2022 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Customer relationships $ 615 $ (223) $ 392 $ 615 $ (190) $ 425 Software 446 (179) 267 379 (152) 227 Technologies 367 (329) 38 367 (278) 89 Backlog 86 (86) — 107 (89) 18 Image library 80 (80) — 80 (71) 9 Trade names and other 37 (22) 15 37 (18) 19 Intangible assets $ 1,631 $ (919) $ 712 $ 1,585 $ (798) $ 787 The gross carrying value and accumulated amortization balances for fully amortized backlog were removed from the Unaudited Condensed Consolidated Balance Sheets and excluded from the table above as of September 30, 2022. Amortization expense related to intangible assets was $44 million and $51 million, for the three months ended September 30, 2022 and 2021, respectively, and $141 million and $154 million for the nine months ended September 30, 2022 and 2021, respectively. |
Long-term debt and interest exp
Long-term debt and interest expense, net | 9 Months Ended |
Sep. 30, 2022 | |
Long-term debt and interest expense, net | |
Long-term debt and interest expense, net | 7 . LONG-TERM DEBT AND INTEREST EXPENSE , NET September 30, December 31, 2022 2021 Syndicated Credit Facility: Revolving Credit Facility $ 125 $ — Term Loan B 1,496 1,444 9.75% 2023 Notes — 500 7.75% 2027 Notes 500 — 7.54% 2027 Notes 150 150 Deferred financing 20 26 Obligations under finance leases and other 5 5 Debt discount and issuance costs (102) (39) Total long-term debt 2,194 2,086 Current portion of long-term debt (22) (24) Non-current portion of long-term debt $ 2,172 $ 2,062 Syndicated Credit Facility As of September 30, 2022, the Company’s senior secured syndicated credit facility (“Syndicated Credit Facility”) is composed of: (i) a senior secured first lien revolving credit facility in an aggregate capacity of up to $500 million maturing in June 2027 (“Revolving Credit Facility”) and (ii) a senior secured first lien term B facility in an aggregate principal amount of $1.5 billion maturing in June 2029, which was issued with an original issue discount of 4.50% (“Term Loan B”). On June 14, 2022, the Company amended the terms of the Syndicated Credit Facility pursuant to an amended and restated credit agreement (“Amended and Restated Credit Agreement”). The Amended and Restated Credit Agreement (i) replaced the Consolidated Leverage Ratio financial maintenance covenant with the Consolidated Net Debt Leverage Ratio (as defined in the Amended and Restated Credit Agreement) financial maintenance covenant not to exceed (1) 5.50:1.00 for each fiscal quarter ending on or prior to December 31, 2022, (2) 5.00:1.00 for each fiscal quarter ending on or after March 31, 2023 through and including December 31, 2023 and (3) 4.50:1.00 for each fiscal quarter ending on or after March 31, 2024, (ii) changed the required level of the Interest Coverage Ratio maintenance covenant to 2.50:1.00 as of the last day of each fiscal quarter, (iii) increased the total amount of Term Loan B outstanding to $1.5 billion and (iv) permitted the issuance of the 7.75% Senior Secured Notes due 2027 (“7.75% 2027 Notes”) and the redemption of the 9.75% Senior Secured 2023 Notes (“9.75% 2023 Notes”). Borrowings under Term Loan B bear interest at a rate equal to, at the Company’s option, either Adjusted Term SOFR plus an applicable margin ranging from 4.00% to 4.25% or adjusted base rate (“ABR”) plus an applicable margin ranging from 3.00% to 3.25%, in each case depending on the total Consolidated Net Debt Leverage Ratio. Starting September 30, 2022, the Company must make equal quarterly installment payments in aggregate annual amounts equal to 1% of the original principal amount of Term Loan B, with the final balance payable at maturity on June 14, 2029; provided that if the 7.75% 2027 Notes are not repaid in full by the date that is 91 days prior to the maturity date of the 7.75% 2027 Notes (“Springing Maturity Date”), the maturity date for the Term Loan B will be the maturity date of the 7.75% 2027 Notes. Borrowings under Term Loan B may be repaid by the Company, in whole or in part, together with accrued interest, without premium or penalty. Borrowings under the Revolving Credit Facility bear interest at a rate equal to, at the Company’s option, if such borrowings are in U.S. dollars, either Adjusted Term SOFR plus an applicable margin ranging from 2.75% to 3.50% or ABR plus an applicable margin ranging from 1.75% to 2.50%, in each case depending on the total Consolidated Net Debt Leverage Ratio. The Company may also, at its option, borrow in Canadian dollars, Euros or British Pounds Sterling using the same applicable margins as noted for U.S. dollars. The Revolving Credit Facility is payable at maturity on June 14, 2027; provided that if the 7.75% 2027 Notes are not repaid in full by the Springing Maturity Date, the maturity date for the Revolving Credit Facility will be the Springing Maturity Date. The Revolving Credit Facility may be repaid by the Company, in whole or in part, together with accrued interest, without premium or penalty. The Company evaluated the amendment of Term Loan B on a lender-by-lender basis and accounted for $1.3 billion as a debt extinguishment and $103 million as a debt modification. The portion accounted for as a debt modification is excluded from the presentation of cash flows from financing activities in the Consolidated Statement of Cash Flows as it represents a non-cash transaction. The Company recognized a loss on debt extinguishment of $10 million equal to the write-off of unamortized debt issuance costs. The modification of the Revolving Credit Facility resulted in the recognition of a loss on debt extinguishment of $1 million equal to the write-off of unamortized debt issuance costs. The Company recognized the losses on debt extinguishment in Interest expense, net in the Unaudited Condensed Consolidated Statements of Operations. The Revolving Credit Facility includes an aggregate $200 million sub limit under which letters of credit can be issued. The Company had $24 million and $28 million of issued and undrawn letters of credit outstanding under the Revolving Credit Facility as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022 and December 31, 2021, the Company was in compliance with its debt covenants. 9.75% Notes due 2023 On June 14, 2022, the Company used the proceeds from the issuance of the 7.75% 2027 Notes, along with cash on hand, to redeem the remaining $500 million aggregate principal amount of its 9.75% 2023 Notes. The 9.75% 2023 Notes were redeemed at a price of 107.313% of the principal amount thereof, plus accrued but unpaid interest. The Company accounted for the issuance of the 7.75% 2027 Notes and the redemption of the 9.75% 2023 Notes as a debt extinguishment. As a result, the 7.313% premium paid on the redemption of the 9.75% 2023 Notes is accounted for as a loss on debt extinguishment. Additionally, at the time of the extinguishment there were $1 million of unamortized debt issuance costs and an unamortized debt discount of $5 million associated with the 9.75% 2023 Notes, which were written off as a loss on debt extinguishment. The Company recognized a total loss on extinguishment of the 9.75% 2023 Notes of $42 million, which is included in Interest expense, net in the Unaudited Condensed Consolidated Statement of Operations. 7.75% Notes due 2027 On June 14, 2022, the Company issued $500 million in aggregate principal amount of 7.75% 2027 Notes in a private placement to qualified institutional buyers in the U.S. pursuant to Rule 144A under the Securities Act of 1933, as amended (“Securities Act”) and outside the U.S. pursuant to Regulation S under the Securities Act. The 7.75% 2027 Notes were issued at a price equal to 100% of their face value and are recorded as long-term debt in the consolidated financial statements. The 7.75% 2027 Notes bear interest at the rate of 7.75% per year, payable semi-annually in cash in arrears on June 15 and December 15 of each year, beginning on December 15, 2022. The 7.75% 2027 Notes will mature on June 15, 2027, unless earlier redeemed or repurchased. The 7.75% 2027 Notes are secured on a first-priority basis by liens on the Company’s and the guarantors’ assets that also secure, equally and ratably, the Company’s indebtedness under the Syndicated Credit Facility and the 7.54% 2027 Notes (as defined below) pursuant to the terms of a first lien intercreditor agreement. The 7.75% 2027 Notes are also guaranteed on a senior secured basis by each of the Company’s subsidiaries that are guarantors under the Syndicated Credit Facility and its 7.54% 2027 Notes (as defined below). 7.54% Notes due 2027 On June 25, 2020, the Company issued $150 million in aggregate principal amount of 7.54% Senior Secured Notes due 2027 (“7.54% 2027 Notes”). The 7.54% 2027 Notes were offered and sold to qualified institutional buyers in the U.S. pursuant to Rule 144A and outside the U.S. pursuant to Regulation S under the Securities Act. The 7.54% 2027 Notes were issued at a price of 98.25% and are recorded as long-term debt in the consolidated financial statements. The 7.54% 2027 Notes bear interest at the rate of 7.54% per year, payable semi-annually in cash in arrears, for which interest payments commenced December 2020. The 7.54% 2027 Notes will mature on December 31, 2027, unless earlier redeemed or repurchased. The 7.54% 2027 Notes are guaranteed on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantee the Syndicated Credit Facility. Interest expense, net on long-term debt and other obligations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest on long-term debt $ 43 $ 33 $ 110 $ 110 Loss on debt extinguishment — — 53 41 Interest on orbital securitization liability — 1 2 3 Imputed interest and other 2 1 2 2 Capitalized interest (15) (10) (38) (29) Interest expense, net $ 30 $ 25 $ 129 $ 127 |
Financial instruments and fair
Financial instruments and fair value disclosures | 9 Months Ended |
Sep. 30, 2022 | |
Financial instruments and fair value disclosures | |
Financial instruments and fair value disclosures | 8. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES Factors used in determining the fair value of financial assets and liabilities are summarized into three categories in accordance with Accounting Standards Codification 820 - Fair Value Measurements: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: Inputs for the asset or liability that are based on unobservable inputs The following tables present assets and liabilities that are measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements as of September 30, 2022 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 394 $ — $ 394 Interest rate swaps — 22 — 22 $ — $ 416 $ — $ 416 Liabilities Long-term debt 2 $ — $ 2,032 $ — $ 2,032 $ — $ 2,032 $ — $ 2,032 Recurring Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 481 $ — $ 481 Interest rate swaps — 3 — 3 $ — $ 484 $ — $ 484 Liabilities Interest rate swaps $ — $ 4 $ — $ 4 Long-term debt 2 — 2,132 — 2,132 $ — $ 2,136 $ — $ 2,136 1 The carrying value of orbital receivables was $392 million and $417 million as of September 30, 2022 and December 31, 2021, respectively. 2 Long-term debt excludes borrowings under the Revolving Credit Facility, deferred financing and obligations under finance leases and other, and is carried at amortized cost. The outstanding carrying value was $2,044 million and $2,055 million as of September 30, 2022 and December 31, 2021, respectively. The carrying value of borrowings under the Revolving Credit Facility approximates their fair value. On April 29, 2022, $500 million of the Company’s interest rate swaps matured. On June 22, 2022, the Company entered into SOFR interest rate swaps having a notional value of $500 million. In June 2022, the Company amended its existing interest rate swaps that mature in June 2023 to modify the designated hedged interest rate risk from LIBOR to SOFR in connection with the Company’s Amended and Restated Credit Agreement. In total, as of September 30, 2022, an aggregate of $1 billion of the Company’s variable rate long-term debt is fixed at an average one-month SOFR rate of 1.71% (excluding the margin specified in the Syndicated Credit Facility) pursuant to the Company’s outstanding interest rate swaps. In each of June 2023 and June 2024, the Company will have interest rate swap maturities of $500 million. The Company determines fair value of its derivative financial instruments and orbital receivables based on internal valuation models, such as a discounted cash flow analysis, using management estimates and observable market-based inputs, as applicable. Management estimates include assumptions concerning the amount and timing of estimated future cash flows and application of appropriate discount rates. Observable market-based inputs are sourced from third parties and include interest rates and yield curves, currency spot and forward rates and credit spreads, as applicable. The Company determines fair value of long-term debt that is actively traded in the secondary market using external pricing data, including any available quoted market prices and other observable inputs from available market information. For debt that is not actively traded in the secondary market, the fair value is based on the Company’s indicative borrowing cost derived from dealer quotes or discounted cash flows. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are all short-term in nature; therefore, the carrying value of these items approximates their fair value. There were no transfers into or out of each of the levels of the fair value hierarchy during the periods ended September 30, 2022 and December 31, 2021. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' equity | |
Stockholders' Equity | 9. STOCKHOLDERS’ EQUITY Changes in the components of Accumulated other comprehensive income (loss) are as follows: Foreign currency translation adjustments Unrealized (loss) gain on interest rate swaps Loss on pension and other postretirement plans Total accumulated other comprehensive (loss) income Balance as of December 31, 2021 $ (1) $ (1) $ (51) $ (53) Other comprehensive income — 11 — 11 Tax benefit (expense) — — — — Balance as of March 31, 2022 $ (1) $ 10 $ (51) $ (42) Other comprehensive (loss) income (1) 1 — — Tax benefit (expense) — — — — Balance as of June 30, 2022 $ (2) $ 11 $ (51) $ (42) Other comprehensive (loss) income (1) 11 — 10 Tax benefit (expense) — — — — Balance as of September 30, 2022 $ (3) $ 22 $ (51) $ (32) On March 22, 2021, the Company completed the underwritten public offering of 10 million shares of common stock at a public offering price of $40 per share. The Company received proceeds of $380 million, net of $20 million of transaction fees. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2022 | |
Revenues | |
Revenues | 10. REVENUES As of September 30, 2022, the Company had $3 billion of remaining performance obligations, which represents the transaction price of firm orders less inception-to-date revenues recognized. Remaining performance obligations generally exclude unexercised contract options and indefinite delivery/indefinite quantity contracts. The Company expects to recognize revenues relating to existing performance obligations of approximately $0.4 billion $1.1 billion billion Contract liabilities by segment are as follows: As of September 30, 2022 Earth Intelligence Space Infrastructure Total Contract liabilities $ 114 $ 131 $ 245 As of December 31, 2021 Earth Intelligence Space Infrastructure Total Contract liabilities $ 32 $ 257 $ 289 Contract liabilities decreased to $245 million as of September 30, 2022 from $289 million as of December 31, 2021. The decrease of $44 million in contract liabilities is primarily due to revenues recognized based upon the satisfaction of performance obligations within the Space Infrastructure segment, partially offset by an increase in contract liabilities within the Earth Intelligence segment driven by the Electro-Optical Commercial Layer contract awarded to the Company in May 2022. The Company had an immaterial balance of non-current contract liabilities as of September 30, 2022 and December 31, 2021. Non-current contract liabilities are included in Other non-current liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company’s primary sources of revenues are as follows: Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 161 $ — $ 161 Service revenues 275 — — 275 Intersegment — 25 (25) — $ 275 $ 186 $ (25) $ 436 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 166 $ — $ 166 Service revenues 271 — — 271 Intersegment — 14 (14) — $ 271 $ 180 $ (14) $ 437 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 469 $ — $ 469 Service revenues 810 — — 810 Intersegment — 80 (80) — $ 810 $ 549 $ (80) $ 1,279 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 498 $ — $ 498 Service revenues 804 — — 804 Intersegment — 43 (43) — $ 804 $ 541 $ (43) $ 1,302 Certain of the Company’s contracts with customers in the Space Infrastructure segment include a significant financing component since payments are received from the customer more than one year after delivery of the promised goods or services. The Company recognized orbital interest revenue of $6 million for both the three months ended September 30, 2022 and 2021 and $20 million for both the nine months ended September 30, 2022 and 2021 related to these contracts, which is included in product revenues in the Unaudited Condensed Consolidated Statements of Operations. Revenue in the Space Infrastructure segment is primarily generated from long-term construction contracts. Due to the long-term nature of these contracts, the Company generally recognizes revenue over time using the cost-to-cost method to measure progress. Under the cost-to-cost method, revenue is recognized based on the proportion of total costs incurred to estimated total costs-at-completion ("EAC"). Revenue recognition is also contingent on estimated contractual consideration. An EAC includes all direct costs and indirect costs directly attributable to a program or allocable based on program cost pooling arrangements. Estimates regarding the Company’s costs associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to an EAC or estimated contractual consideration are recorded as a cumulative adjustment to revenue. The Company recognized a cumulative adjustment to revenue of $5 million and $30 million for the three and nine months ended September 30, 2021, respectively relate to the Sirius XM contract with Sirius XM Holdings Inc. (“Sirius XM”). This adjustment resulted primarily from adjusting the EAC transaction price for the amount of the final milestone and expected orbital payments from Sirius XM due to the non-performance of the SXM-7 satellite and other adjustments. The Company has certain programs in the Space Infrastructure segment which contain significant development efforts that have experienced delays and cost growth primarily due to the complexity of the programs resulting in an overall loss position. The Company recorded EAC adjustments on loss contracts of $18 million and $3 million for the three months ended September 30, 2022 and 2021, respectively, and $33 million and $26 million for the nine months ended September 30, 2022 and 2021, respectively. Revenues based on the geographic location of customers are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 United States $ 372 $ 363 $ 1,062 $ 1,058 Asia 24 25 71 67 Middle East 15 13 45 40 Europe 14 18 41 54 Australia 5 9 38 57 Canada 3 3 12 8 Other 3 6 10 18 Total revenues $ 436 $ 437 $ 1,279 $ 1,302 Revenues from significant customers are as follows: Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 188 $ 55 $ — $ 243 Commercial and other 87 131 (25) 193 Total revenues $ 275 $ 186 $ (25) $ 436 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 174 $ 51 $ — $ 225 Commercial and other 97 129 (14) 212 Total revenues $ 271 $ 180 $ (14) $ 437 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 540 $ 176 $ — $ 716 Commercial and other 270 373 (80) 563 Total revenues $ 810 $ 549 $ (80) $ 1,279 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 525 $ 178 $ — $ 703 Commercial and other 279 363 (43) 599 Total revenues $ 804 $ 541 $ (43) $ 1,302 The Company had revenues from a commercial customer in the Space Infrastructure segment that represented 12% and 18% of total revenues for the three months ended September 30, 2022 and 2021, respectively, and 11% and 19% of total revenues for the nine months ended September 30, 2022 and 2021, respectively. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2022 | |
Segment information | |
Segment information | 11. SEGMENT INFORMATION The Company’s business is organized into two reportable segments: Earth Intelligence and Space Infrastructure. The Earth Intelligence reportable segment is a supplier of high-resolution, high accuracy Earth imagery and other geospatial data sourced from the Company’s advanced satellite constellation and third-party providers, as well as a provider of advanced geospatial information applications and analytic services for national security and commercial solutions. The Space Infrastructure reportable segment is a supplier of space-based infrastructure, robotics, subsystems and information solutions to satellite operators and government agencies. The Company’s Chief Operating Decision Maker measures the performance of each segment based on revenue and Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization (“EBITDA”) adjusted for certain items affecting comparability of the Company’s ongoing operating results as specified in the calculation. Certain items affecting the comparability of our ongoing operating results between periods include restructuring, impairments, insurance recoveries, gain (loss) on sale of assets, (gain) loss on orbital receivables allowance, offset obligation fulfillment and transaction and integration related expense. Transaction and integration related expense includes costs associated with de-leveraging activities, acquisitions and dispositions and the integration of acquisitions. Corporate and other expenses include items such as corporate office costs, regulatory costs, executive and director compensation, foreign exchange gains and losses and fees for audit, legal and consulting services. Intersegment sales are generally recorded at cost plus a specified margin, which may differ from what the segment may be able to obtain on sales to external customers. The following table summarizes the operating performance of the Company’s segments: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues: Earth Intelligence $ 275 $ 271 $ 810 $ 804 Space Infrastructure 186 180 549 541 Intersegment eliminations (25) (14) (80) (43) Total revenues $ 436 $ 437 $ 1,279 $ 1,302 Adjusted EBITDA: Earth Intelligence $ 115 $ 124 $ 343 $ 362 Space Infrastructure 33 14 71 29 Intersegment eliminations (10) (5) (28) (17) Corporate and other expenses (28) (20) (73) (62) Offset obligation fulfillment (12) — (12) — Restructuring (5) — (10) — Transaction and integration related expense — (1) (1) (1) Gain on sale of asset 1 — 1 — Depreciation and amortization (64) (74) (199) (221) Interest expense, net (30) (25) (129) (127) Interest income 1 1 1 2 2 Income (loss) before taxes $ 1 $ 14 $ (35) $ (35) 1 Included in Other income, net on the Unaudited Condensed Consolidated Statements of Operations. The Company incurred restructuring costs of $5 million and $10 million for the three and nine months ended September 30, 2022, respectively. The restructuring costs are primarily related to retention costs, severance costs and the write-off of certain assets related to the outsourcing of certain components of contract manufacturing within the Space Infrastructure segment. The Company’s capital expenditures are as follows: Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 32 $ 3 $ 16 $ 51 Intangible assets 23 — 1 24 $ 55 $ 3 $ 17 $ 75 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 19 $ 3 $ 5 $ 27 Intangible assets 22 — 2 24 $ 41 $ 3 $ 7 $ 51 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 100 $ 9 $ 50 $ 159 Intangible assets 63 — 4 67 $ 163 $ 9 $ 54 $ 226 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 47 $ 11 $ 26 $ 84 Intangible assets 64 — 8 72 $ 111 $ 11 $ 34 $ 156 Substantially all of the Company’s long-lived tangible assets were in the United States as of September 30, 2022 and December 31, 2021. |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2022 | |
Employee benefit plans | |
Employee benefit plans | 12. EMPLOYEE BENEFIT PLANS The following table summarizes the components of net periodic benefit (credit) cost for the Company’s pension plans: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest cost $ 4 $ 3 $ 11 $ 10 Expected return on plan assets (7) (7) (22) (21) Amortization of net loss — 1 — 4 Expenses paid 1 1 2 2 Net periodic benefit credit $ (2) $ (2) $ (9) $ (5) Contributions The funding policy for the Company’s pension plans is to contribute at least the minimum required by applicable laws and regulations or to directly make benefit payments where appropriate. In 2021, the Company elected to take advantage of certain provisions of the American Rescue Plan Act of 2021 and due to the Company’s election, there are no required contributions for the Company’s qualified pension plan for the year ending December 31, 2022. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income taxes | |
Income taxes | 13. INCOME TAXES For the three months ended September 30, 2022 and 2021, the effective tax rate on Income before taxes was 500.0% and 0%, respectively. For the nine months ended September 30, 2022 and 2021, the effective tax rate on (Loss) before taxes was (17.1)% and 28.6%, respectively. The effective tax rates for the three and nine months ended September 30, 2022 differ from the statutory U.S. federal income tax rate of 21.0% primarily due to estimated permanent differences, changes in valuation allowance and estimated Base Erosion and Anti-Abuse Tax (“BEAT”). The effective tax rates for the three and nine months ended September 30, 2021 differ from the statutory U.S. federal income tax rate of 21.0% primarily due to a change in the estimated BEAT driven by a change in tax strategy enabled by a reduction in forecasted interest expense, estimated permanent differences, tax on foreign earnings and changes in valuation allowance. The Company does not anticipate a significant change to the Company’s gross unrecognized tax benefits within the next 12 months. The Company assesses the deferred tax assets for recoverability on a quarterly basis. Based upon all available positive and negative evidence, the Company maintains a valuation allowance to reduce the net U.S. deferred tax asset to the amount that is more-likely-than-not realizable. The Company computes an estimated annual effective tax rate (“AETR”) each quarter based on the current and forecasted continuing operating results. The income tax expense or benefit associated with the interim period is computed using the most recent estimated AETR applied to the year-to-date ordinary income or loss, plus the tax effect of any significant or infrequently occurring items recorded during the interim period. The computation of the estimated AETR at each interim period requires certain estimates and significant judgments including, but not limited to, the expected operating income (loss) for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent differences and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur and additional information becomes known or as the tax environment changes. |
Net (loss) income per common sh
Net (loss) income per common share | 9 Months Ended |
Sep. 30, 2022 | |
Net (loss) income per common share | |
Net (loss) income per common share | 14. NET (LOSS) INCOME PER COMMON SHARE The following table includes the calculation of basic and diluted net (loss) income per common share: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net (loss) income $ (4) $ 14 $ (41) $ (25) Weighted average number of common shares outstanding-basic 74.3 72.6 73.8 69.9 Weighted dilutive effect of equity awards — 2.1 — — Weighted average number of common shares outstanding-diluted 74.3 74.7 73.8 69.9 Net (loss) income per common share: Basic $ (0.05) $ 0.19 $ (0.56) $ (0.36) Diluted $ (0.05) $ 0.19 $ (0.56) $ (0.36) For both the three months ended September 30, 2022 and 2021, approximately 2 million shares subject to awards and for the nine months ended September 30, 2022 and 2021, approximately 3 million and 4 million shares subject to awards, respectively, were excluded from the diluted weighted average number of ordinary common shares outstanding calculation because their effect would have been anti-dilutive. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 15. COMMITMENTS AND CONTINGENCIES Contingencies in the Normal Course of Business Satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price of the satellite is contingent upon in-orbit performance of the satellite. The Company’s ultimate receipt of orbital performance incentives is subject to the continued performance of its satellites generally over the contractually stipulated life of the satellites. A complete or partial loss of a satellite’s functionality can result in loss of orbital receivable payments or repayment of amounts received by the Company under a warranty payback arrangement. The Company generally receives the present value of the orbital receivables if there is a launch failure or a failure caused by a customer error, but will forfeit some or all of the orbital receivables if the loss is caused by satellite failure or as a result of Company error. The Company recognizes orbital performance incentives in the financial statements based on the amounts that are expected to be received and believes that it will not incur a material loss relating to the incentives recognized. With respect to the Company’s securitized liability for the orbital receivables, upon the occurrence of an event of default under the securitization facility agreement or upon the occurrence of limited events, the Company may be required to repurchase on demand any effected receivables at their then net present value. The Company may incur liquidated damages on programs as a result of delays due to slippage, or for programs which fail to meet all milestone requirements as outlined within the contractual arrangements with customers. Losses on programs related to liquidated damages result in a reduction of revenue. Changes in estimates related to contracts accounted for using the cost-to-cost method are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Unrecoverable costs on contracts that are expected to be incurred in future periods are recorded in program cost in the current period. Additionally, construction contracts may have termination for default clauses, which if triggered, could result in potential losses and legal disputes. The Company enters into agreements in the ordinary course of business with resellers and others. Most of these agreements require the Company to indemnify the other party against third-party claims alleging that one of its products infringes or misappropriates a patent, copyright, trademark, trade secret or other intellectual property right. Certain of these agreements require the Company to indemnify the other party against claims relating to property damage, personal injury or acts or omissions by the Company, its employees, agents or representatives. From time to time, the Company has made guarantees regarding the performance of its systems to its customers. Some of these agreements do not limit the maximum potential future payments the Company could be obligated to make. The Company evaluates and estimates potential losses from such indemnification based on the likelihood that the future event will occur. The Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such indemnification and guarantees in the Unaudited Condensed Consolidated Financial Statements. The Company has entered into industrial cooperation agreements, sometimes referred to as offset agreements, as a condition to entering into contracts for its products and services from certain customers in foreign countries. These agreements are designed to return economic value to the foreign country and may be satisfied through activities that do not require a direct cash payment, including transferring technology and providing manufacturing, training and other consulting support to in-country projects. These agreements may provide for penalties in the event the Company fails to perform in accordance with offset requirements. The Company has historically not been required to pay any such penalties. In the third quarter of 2022, the Company recorded a $12 million liability related to the satisfaction of an offset obligation incurred by the Company as a result of conducting business in a foreign country. The Company had expected to satisfy the offset obligation through other operational means that did not require cash payments or the transfer of other assets. In the third quarter of 2022 an agreement was reached to satisfy the Company’s offset obligation in the foreign country by making a total of $12 million in cash payments from November 2022 to January 2024. The Company has recorded the current portion of the liability within Accrued liabilities and the non-current portion of the liability within Other non-current liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheet and a $12 million expense within Other expense (income), net on the Company’s Unaudited Condensed Consolidated Statements of Operations. Legal proceedings On January 14, 2019, a Maxar stockholder filed a putative class action lawsuit captioned Oregon Laborers Employers Pension Trust Fund, et al. v. Maxar Technologies Inc. In January 2019, a Maxar stockholder resident in Canada issued a putative class action lawsuit captioned Charles O’Brien v. Maxar Technologies Inc. against Maxar and members of management claiming misrepresentations in Maxar’s public disclosures and seeking monetary damages. On November 15, 2019, Mr. O’Brien and another Maxar stockholder resident in Canada issued a new putative class action lawsuit captioned Charles O’Brien v. Maxar Technologies Inc. On October 21, 2019, a Maxar stockholder filed a putative class action lawsuit captioned McCurdy v. Maxar Technologies Inc., et al. On November 14, 2019, a derivative action was filed against Maxar and certain current and former members of management and the board of directors in the United States District Court for the District of Delaware, captioned as Dorling, Derivatively on Behalf of Nominal Defendant Maxar Technologies Inc. v. Lance, et al. Golub, Derivatively on Behalf of Maxar Technologies Inc. v. Lance, et al. On September 15, 2021, a derivative action was filed against Maxar and certain current and former members of management and the board of directors in the Court of Chancery of the State of Delaware, captioned as Egan, on behalf of Maxar Technologies Inc., v. Lance, et al. The Company is a party to various other legal proceedings and claims that arise in the ordinary course of business as either a plaintiff or defendant. As a matter of course, the Company is prepared both to litigate these matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities. The Company establishes accrued liabilities for these matters where losses are deemed probable and reasonably estimable. The outcome of any of these other proceedings, either individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. The Company expenses legal fees related to contingencies as incurred. The Company maintains insurance policies for settlements and judgments, as well as legal defense costs, for lawsuits such as those described in the preceding paragraphs, although the amount of insurance coverage that the Company maintains may not be adequate to cover all claims or liabilities. In addition, provisions of the Company’s Certificate of Incorporation, Bylaws and indemnification agreements entered into with current and former directors and officers require the Company, among other things, to indemnify these directors and officers against certain liabilities that may arise by reason of their status or service as directors or officers and to advance expenses to such directors or officers in connection therewith. |
Supplemental cash flow
Supplemental cash flow | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental cash flow | |
Supplemental cash flow | 16. SUPPLEMENTAL CASH FLOW Selected cash payments and non-cash activities are as follows Nine Months Ended September 30, 2022 2021 Supplemental operating cash flow information: Cash paid for interest $ 87 $ 88 Income tax payments, net of (refunds) (8) (12) Supplemental non-cash investing and financing activities: Accrued capital expenditures 21 13 Portion of Term Loan B accounted for as a debt modification 103 — |
Subsequent event
Subsequent event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent event. | |
Subsequent event | 17. SUBSEQUENT EVENT Acquisition of Wovenware Inc. On November 1, 2022, the Company completed the acquisition of Wovenware Inc., (“Wovenware”) a privately held artificial intelligence and software development technology consulting firm, for total consideration of $33 million, a portion of which is contingent on certain operating metrics, that will be paid out over a period of five years . The fair value of the acquisition is estimated to be approximately $21 million due to the deferred consideration structure of the payments for the acquisition. Beginning in the fourth quarter of 2022, Wovenware’s results will be consolidated and reported within the results of the Company’s Earth Intelligence segment. The Wovenware acquisition is not material to the Company’s financial position or results of operations, and therefore, pro forma operating results and other disclosures for the acquisition are not presented. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of significant accounting policies | |
Basis of presentation | Basis of presentation The Unaudited Condensed Consolidated Financial Statements include the accounts of Maxar Technologies Inc., and all consolidated subsidiary entities. The Company’s Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany balances and transactions are eliminated on consolidation. The Company’s Unaudited Condensed Consolidated Financial Statements are presented in U.S. dollars and have been prepared on a historical cost basis, except for certain financial assets and liabilities including derivative financial instruments which are stated at fair value. The Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K filed with the SEC. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. In management’s opinion, all adjustments of a normal recurring nature that are necessary for a fair statement of the accompanying Unaudited Condensed Consolidated Financial Statements have been included. |
Use of estimates, assumptions and judgments | Use of estimates, assumptions and judgments The preparation of the Unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the reporting date, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates. |
Recent Accounting Guidance Adopted | Recent Accounting Guidance Adopted Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which together with subsequent amendments, is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance was effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. Overnight Financing Rate (“SOFR”) in connection with the Company's amendment and restatement of its Syndicated Credit Facility (as defined below) and elected to apply the contract modification optional expedient to the amendments and consider the amendments as a continuation of the existing contracts without performing an assessment that would otherwise be required under U.S. GAAP. See Note 8 for additional details regarding the amendments to the existing interest swaps. |
Trade and other receivables, _2
Trade and other receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Trade and other receivables, net | |
Schedule of trade and other receivables, net | September 30, December 31, 2022 2021 Billed $ 195 $ 162 Unbilled 157 143 Total trade receivables 352 305 Orbital receivables, current portion 44 49 Other 4 2 Allowance for doubtful accounts (1) (1) Trade and other receivables, net $ 399 $ 355 |
Schedule of securitization liabilities | September 30, December 31, 2022 2021 Current portion $ 17 $ 16 Non-current portion 21 32 Total securitization liabilities $ 38 $ 48 |
Inventory, net (Tables)
Inventory, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory, net | |
Schedule of inventory | September 30, December 31, 2022 2021 Raw materials $ 36 $ 34 Work in process 5 6 Total $ 41 $ 40 Inventory reserve (2) (1) Inventory, net $ 39 $ 39 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment, net | September 30, December 31, 2022 2021 Satellites $ 397 $ 397 Equipment 209 221 Computer hardware 115 95 Leasehold improvements 85 83 Furniture and fixtures 16 16 Construction in process 1 796 668 Property, plant and equipment, at cost 1,618 1,480 Accumulated depreciation (582) (540) Property, plant and equipment, net $ 1,036 $ 940 1 |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Intangible assets | |
Schedule of intangible assets | September 30, 2022 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Customer relationships $ 615 $ (223) $ 392 $ 615 $ (190) $ 425 Software 446 (179) 267 379 (152) 227 Technologies 367 (329) 38 367 (278) 89 Backlog 86 (86) — 107 (89) 18 Image library 80 (80) — 80 (71) 9 Trade names and other 37 (22) 15 37 (18) 19 Intangible assets $ 1,631 $ (919) $ 712 $ 1,585 $ (798) $ 787 |
Long-term debt and interest e_2
Long-term debt and interest expense, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-term debt and interest expense, net | |
Summary of long term debt | September 30, December 31, 2022 2021 Syndicated Credit Facility: Revolving Credit Facility $ 125 $ — Term Loan B 1,496 1,444 9.75% 2023 Notes — 500 7.75% 2027 Notes 500 — 7.54% 2027 Notes 150 150 Deferred financing 20 26 Obligations under finance leases and other 5 5 Debt discount and issuance costs (102) (39) Total long-term debt 2,194 2,086 Current portion of long-term debt (22) (24) Non-current portion of long-term debt $ 2,172 $ 2,062 |
Schedule of interest expense, net on long term debt and other obligations | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest on long-term debt $ 43 $ 33 $ 110 $ 110 Loss on debt extinguishment — — 53 41 Interest on orbital securitization liability — 1 2 3 Imputed interest and other 2 1 2 2 Capitalized interest (15) (10) (38) (29) Interest expense, net $ 30 $ 25 $ 129 $ 127 |
Financial instruments and fai_2
Financial instruments and fair value disclosures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Financial instruments and fair value disclosures | |
Summary of financial instruments measured at fair value | Recurring Fair Value Measurements as of September 30, 2022 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 394 $ — $ 394 Interest rate swaps — 22 — 22 $ — $ 416 $ — $ 416 Liabilities Long-term debt 2 $ — $ 2,032 $ — $ 2,032 $ — $ 2,032 $ — $ 2,032 Recurring Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 481 $ — $ 481 Interest rate swaps — 3 — 3 $ — $ 484 $ — $ 484 Liabilities Interest rate swaps $ — $ 4 $ — $ 4 Long-term debt 2 — 2,132 — 2,132 $ — $ 2,136 $ — $ 2,136 1 The carrying value of orbital receivables was $392 million and $417 million as of September 30, 2022 and December 31, 2021, respectively. 2 Long-term debt excludes borrowings under the Revolving Credit Facility, deferred financing and obligations under finance leases and other, and is carried at amortized cost. The outstanding carrying value was $2,044 million and $2,055 million as of September 30, 2022 and December 31, 2021, respectively. The carrying value of borrowings under the Revolving Credit Facility approximates their fair value. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' equity | |
Schedule of changes in the components of accumulated other comprehensive income (loss) | Foreign currency translation adjustments Unrealized (loss) gain on interest rate swaps Loss on pension and other postretirement plans Total accumulated other comprehensive (loss) income Balance as of December 31, 2021 $ (1) $ (1) $ (51) $ (53) Other comprehensive income — 11 — 11 Tax benefit (expense) — — — — Balance as of March 31, 2022 $ (1) $ 10 $ (51) $ (42) Other comprehensive (loss) income (1) 1 — — Tax benefit (expense) — — — — Balance as of June 30, 2022 $ (2) $ 11 $ (51) $ (42) Other comprehensive (loss) income (1) 11 — 10 Tax benefit (expense) — — — — Balance as of September 30, 2022 $ (3) $ 22 $ (51) $ (32) |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenues | |
Summary of contract assets and contract liabilities by segment | Contract liabilities by segment are as follows: As of September 30, 2022 Earth Intelligence Space Infrastructure Total Contract liabilities $ 114 $ 131 $ 245 As of December 31, 2021 Earth Intelligence Space Infrastructure Total Contract liabilities $ 32 $ 257 $ 289 |
Summary of revenue by primary sources | Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 161 $ — $ 161 Service revenues 275 — — 275 Intersegment — 25 (25) — $ 275 $ 186 $ (25) $ 436 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 166 $ — $ 166 Service revenues 271 — — 271 Intersegment — 14 (14) — $ 271 $ 180 $ (14) $ 437 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 469 $ — $ 469 Service revenues 810 — — 810 Intersegment — 80 (80) — $ 810 $ 549 $ (80) $ 1,279 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 498 $ — $ 498 Service revenues 804 — — 804 Intersegment — 43 (43) — $ 804 $ 541 $ (43) $ 1,302 |
Summary of revenue by geographic location of customers | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 United States $ 372 $ 363 $ 1,062 $ 1,058 Asia 24 25 71 67 Middle East 15 13 45 40 Europe 14 18 41 54 Australia 5 9 38 57 Canada 3 3 12 8 Other 3 6 10 18 Total revenues $ 436 $ 437 $ 1,279 $ 1,302 |
Schedule of revenue from significant customers | Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 188 $ 55 $ — $ 243 Commercial and other 87 131 (25) 193 Total revenues $ 275 $ 186 $ (25) $ 436 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 174 $ 51 $ — $ 225 Commercial and other 97 129 (14) 212 Total revenues $ 271 $ 180 $ (14) $ 437 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 540 $ 176 $ — $ 716 Commercial and other 270 373 (80) 563 Total revenues $ 810 $ 549 $ (80) $ 1,279 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 525 $ 178 $ — $ 703 Commercial and other 279 363 (43) 599 Total revenues $ 804 $ 541 $ (43) $ 1,302 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment information | |
Summary of operating performance of the reporting segments | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues: Earth Intelligence $ 275 $ 271 $ 810 $ 804 Space Infrastructure 186 180 549 541 Intersegment eliminations (25) (14) (80) (43) Total revenues $ 436 $ 437 $ 1,279 $ 1,302 Adjusted EBITDA: Earth Intelligence $ 115 $ 124 $ 343 $ 362 Space Infrastructure 33 14 71 29 Intersegment eliminations (10) (5) (28) (17) Corporate and other expenses (28) (20) (73) (62) Offset obligation fulfillment (12) — (12) — Restructuring (5) — (10) — Transaction and integration related expense — (1) (1) (1) Gain on sale of asset 1 — 1 — Depreciation and amortization (64) (74) (199) (221) Interest expense, net (30) (25) (129) (127) Interest income 1 1 1 2 2 Income (loss) before taxes $ 1 $ 14 $ (35) $ (35) 1 Included in Other income, net on the Unaudited Condensed Consolidated Statements of Operations. |
Schedule of capital expenditures by segment | Three Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 32 $ 3 $ 16 $ 51 Intangible assets 23 — 1 24 $ 55 $ 3 $ 17 $ 75 Three Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 19 $ 3 $ 5 $ 27 Intangible assets 22 — 2 24 $ 41 $ 3 $ 7 $ 51 Nine Months Ended September 30, 2022 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 100 $ 9 $ 50 $ 159 Intangible assets 63 — 4 67 $ 163 $ 9 $ 54 $ 226 Nine Months Ended September 30, 2021 Earth Intelligence Space Infrastructure Corporate and Eliminations Total Capital expenditures: Property, plant and equipment $ 47 $ 11 $ 26 $ 84 Intangible assets 64 — 8 72 $ 111 $ 11 $ 34 $ 156 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Employee benefit plans | |
Summary of the components of net periodic benefit income | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest cost $ 4 $ 3 $ 11 $ 10 Expected return on plan assets (7) (7) (22) (21) Amortization of net loss — 1 — 4 Expenses paid 1 1 2 2 Net periodic benefit credit $ (2) $ (2) $ (9) $ (5) |
Net (loss) income per common _2
Net (loss) income per common share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Net (loss) income per common share | |
Summary of calculation of basic and diluted EPS | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net (loss) income $ (4) $ 14 $ (41) $ (25) Weighted average number of common shares outstanding-basic 74.3 72.6 73.8 69.9 Weighted dilutive effect of equity awards — 2.1 — — Weighted average number of common shares outstanding-diluted 74.3 74.7 73.8 69.9 Net (loss) income per common share: Basic $ (0.05) $ 0.19 $ (0.56) $ (0.36) Diluted $ (0.05) $ 0.19 $ (0.56) $ (0.36) |
Supplemental cash flow (Tables)
Supplemental cash flow (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental cash flow | |
Schedule of supplemental cash flow | Nine Months Ended September 30, 2022 2021 Supplemental operating cash flow information: Cash paid for interest $ 87 $ 88 Income tax payments, net of (refunds) (8) (12) Supplemental non-cash investing and financing activities: Accrued capital expenditures 21 13 Portion of Term Loan B accounted for as a debt modification 103 — |
Trade and other receivables, _3
Trade and other receivables, net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Trade and other receivables, net | ||
Billed | $ 195 | $ 162 |
Unbilled | 157 | 143 |
Total trade receivables | 352 | 305 |
Orbital receivables, current portion | 44 | 49 |
Other | 4 | 2 |
Allowance for doubtful accounts | (1) | (1) |
Trade and other receivables, net | $ 399 | $ 355 |
Trade and other receivables, _4
Trade and other receivables, net - Orbital receivables (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) customer | Dec. 31, 2021 customer | |
Trade and other receivables | |||
Reduction in outstanding receivables, final milestone | $ 15 | ||
Reduction in outstanding receivables, expected orbital payments | $ 14 | ||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 0 | ||
Accounts Receivable | Credit Concentration Risk | |||
Trade and other receivables | |||
Number of customers | customer | 13 | 13 | |
Accounts Receivable | Credit Concentration Risk | Largest Customer | |||
Trade and other receivables | |||
Concentration risk, percentage | 30% |
Trade and other receivables, _5
Trade and other receivables, net - Securitization liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Trade and other receivables, net | ||
Current portion | $ 17 | $ 16 |
Non-current portion | 21 | 32 |
Total securitization liabilities | $ 38 | $ 48 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory, net | ||
Raw materials | $ 36 | $ 34 |
Work in process | 5 | 6 |
Total | 41 | 40 |
Inventory reserve | (2) | (1) |
Inventory, net | $ 39 | $ 39 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, plant and equipment | |||||
Property, plant and equipment, at cost | $ 1,618 | $ 1,618 | $ 1,480 | ||
Accumulated depreciation | (582) | (582) | (540) | ||
Property, plant and equipment, net | 1,036 | 1,036 | 940 | ||
Depreciation | 20 | $ 23 | 58 | $ 67 | |
Satellites | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | 397 | 397 | 397 | ||
Equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | 209 | 209 | 221 | ||
Computer hardware | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | 115 | 115 | 95 | ||
Leasehold improvements | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | 85 | 85 | 83 | ||
Furniture and fixtures | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | 16 | 16 | 16 | ||
Construction in process | |||||
Property, plant and equipment | |||||
Property, plant and equipment, at cost | $ 796 | $ 796 | $ 668 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-lived intangible assets: | |||||
Gross carrying value | $ 1,631 | $ 1,631 | $ 1,585 | ||
Accumulated amortization | (919) | (919) | (798) | ||
Net carrying value | 712 | 712 | 787 | ||
Amortization of intangible assets | 44 | $ 51 | 141 | $ 154 | |
Customer relationships | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 615 | 615 | 615 | ||
Accumulated amortization | (223) | (223) | (190) | ||
Net carrying value | 392 | 392 | 425 | ||
Software | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 446 | 446 | 379 | ||
Accumulated amortization | (179) | (179) | (152) | ||
Net carrying value | 267 | 267 | 227 | ||
Technologies | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 367 | 367 | 367 | ||
Accumulated amortization | (329) | (329) | (278) | ||
Net carrying value | 38 | 38 | 89 | ||
Backlog | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 86 | 86 | 107 | ||
Accumulated amortization | (86) | (86) | (89) | ||
Net carrying value | 18 | ||||
Image library | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 80 | 80 | 80 | ||
Accumulated amortization | (80) | (80) | (71) | ||
Net carrying value | 9 | ||||
Trade names and other. | |||||
Finite-lived intangible assets: | |||||
Gross carrying value | 37 | 37 | 37 | ||
Accumulated amortization | (22) | (22) | (18) | ||
Net carrying value | $ 15 | $ 15 | $ 19 |
Long-term debt and interest e_3
Long-term debt and interest expense, net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 14, 2022 | Dec. 31, 2021 |
Long-term debt and interest expense, net | |||
Obligations under finance leases and other | $ 5 | $ 5 | |
Debt discount and issuance costs | (102) | (39) | |
Total long-term debt | 2,194 | 2,086 | |
Current portion of long-term debt | (22) | (24) | |
Non-current portion of long-term debt | 2,172 | 2,062 | |
Revolving Credit Facility | |||
Long-term debt and interest expense, net | |||
Long-term debt | 125 | ||
Term Loan B | |||
Long-term debt and interest expense, net | |||
Long-term debt | 1,496 | $ 1,500 | 1,444 |
9.75% 2023 Notes | |||
Long-term debt and interest expense, net | |||
Long-term debt | 500 | ||
7.75% 2027 Notes | |||
Long-term debt and interest expense, net | |||
Long-term debt | 500 | ||
7.54% 2027 Notes | |||
Long-term debt and interest expense, net | |||
Long-term debt | 150 | 150 | |
Deferred financing | |||
Long-term debt and interest expense, net | |||
Long-term debt | $ 20 | $ 26 |
Long-term debt and interest e_4
Long-term debt and interest expense, net - Syndicated credit facility (Details) $ in Thousands | 9 Months Ended | ||||
Jun. 14, 2022 USD ($) | Jun. 25, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Long-term debt and interest expense, net | |||||
Debt modification | $ 103 | ||||
Loss on debt extinguishment | 53,000 | $ 41,000 | |||
Syndicated Credit Facility | |||||
Long-term debt and interest expense, net | |||||
Debt instrument interest coverage ratio | 2.50 | ||||
Syndicated Credit Facility | Fiscal Quarter Ending On Or Prior To December 31, 2022 | |||||
Long-term debt and interest expense, net | |||||
Debt instrument threshold leverage ratio | 5.50 | ||||
Syndicated Credit Facility | Fiscal Quarter Ending On And After March 31, 2023 Through And Including December 31, 2023 | |||||
Long-term debt and interest expense, net | |||||
Debt instrument threshold leverage ratio | 5 | ||||
Syndicated Credit Facility | Fiscal Quarter Ending On Or After March 31, 2024 | |||||
Long-term debt and interest expense, net | |||||
Debt instrument threshold leverage ratio | 4.50 | ||||
Revolving Credit Facility | |||||
Long-term debt and interest expense, net | |||||
Long-term debt | 125,000 | ||||
Loss on debt extinguishment | $ 1,000 | ||||
Revolving Credit Facility | Maturing in June 2027 | |||||
Long-term debt and interest expense, net | |||||
Maximum borrowing capacity | 500,000 | ||||
Revolving Credit Facility | Adjusted Base Rate | Minimum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 1.75% | ||||
Revolving Credit Facility | Adjusted Base Rate | Maximum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 2.50% | ||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 2.75% | ||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 3.50% | ||||
Letter of credit | |||||
Long-term debt and interest expense, net | |||||
Maximum borrowing capacity | 200,000 | ||||
Letter of credit outstanding | 24,000 | $ 28,000 | |||
Term Loan B | |||||
Long-term debt and interest expense, net | |||||
Debt instrument periodic payment percentage | 1% | ||||
Long-term debt | $ 1,500,000 | 1,496,000 | 1,444,000 | ||
Debt extinguishment | 1,300,000 | ||||
Debt modification | 103,000 | ||||
Loss on debt extinguishment | $ 10,000 | ||||
Term Loan B | Maturing in June 2029 | |||||
Long-term debt and interest expense, net | |||||
Aggregate principal amount | $ 1,500,000 | ||||
Debt instrument original issue discount percent | 4.50% | ||||
Term Loan B | Adjusted Base Rate | Minimum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 3% | ||||
Term Loan B | Adjusted Base Rate | Maximum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 3.25% | ||||
Term Loan B | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 4% | ||||
Term Loan B | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||
Long-term debt and interest expense, net | |||||
Spread on variable rate | 4.25% | ||||
9.75% 2023 Notes | |||||
Long-term debt and interest expense, net | |||||
Unamortized deferred financing costs | $ 1,000 | ||||
Debt instrument unamortized discount | $ 5,000 | ||||
Long-term debt | 500,000 | ||||
Interest rate (as a percent) | 9.75% | 9.75% | |||
Principal amount of redeemed | $ 500,000 | ||||
Loss on debt extinguishment | $ 42,000 | ||||
Percentage of premium paid on repurchase of notes | 7.313% | ||||
Debt instrument redemption price percentage | 107.313% | ||||
7.75% 2027 Notes | |||||
Long-term debt and interest expense, net | |||||
Aggregate principal amount | $ 500,000 | ||||
Long-term debt | $ 500,000 | ||||
Interest rate (as a percent) | 7.75% | 7.75% | |||
Issue Price (as a percent) | 100% | ||||
7.54% 2027 Notes | |||||
Long-term debt and interest expense, net | |||||
Aggregate principal amount | $ 150,000 | ||||
Long-term debt | $ 150,000 | $ 150,000 | |||
Interest rate (as a percent) | 7.54% | 7.54% | 7.54% | ||
Issue Price (as a percent) | 98.25% |
Long-term debt and interest e_5
Long-term debt and interest expense, net - Interest expense on long term debts and other obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest expenses | ||||
Interest on long-term debt | $ 43 | $ 33 | $ 110 | $ 110 |
Loss on debt extinguishment | 53 | 41 | ||
Interest on orbital securitization liability | 1 | 2 | 3 | |
Imputed interest and other | 2 | 1 | 2 | 2 |
Capitalized interest | (15) | (10) | (38) | (29) |
Interest expense, net | $ 30 | $ 25 | $ 129 | $ 127 |
Financial instruments and fai_3
Financial instruments and fair value disclosures - Financial instruments measured at fair value (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Orbital receivables | $ 394 | $ 481 |
Assets fair value | 416 | 484 |
Liabilities | ||
Long-term debt | 2,032 | 2,132 |
Liabilities fair value | 2,032 | 2,136 |
Interest rate swaps | ||
Assets | ||
Derivative financial instruments | 22 | 3 |
Liabilities | ||
Derivative financial instruments | 4 | |
Level 2 | ||
Assets | ||
Orbital receivables | 394 | 481 |
Assets fair value | 416 | 484 |
Liabilities | ||
Long-term debt | 2,032 | 2,132 |
Liabilities fair value | 2,032 | 2,136 |
Level 2 | Interest rate swaps | ||
Assets | ||
Derivative financial instruments | $ 22 | 3 |
Liabilities | ||
Derivative financial instruments | $ 4 |
Financial instruments and fai_4
Financial instruments and fair value disclosures - Financial instruments recorded at carrying value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Apr. 29, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 22, 2022 | |
Financial instruments and fair value disclosures | ||||||
Fair value assets level 1 to level 2 transfers | $ 0 | $ 0 | ||||
Fair value assets level 2 to level 1 transfers | 0 | 0 | ||||
Fair value assets transfers into level 3 | 0 | 0 | ||||
Fair value assets transfers out of level 3 | 0 | 0 | ||||
Fair value liabilities level 1 to level 2 transfers | 0 | 0 | ||||
Fair value liabilities level 2 to level 1 transfers | 0 | 0 | ||||
Fair value liabilities transfers into level 3 | 0 | 0 | ||||
Fair value liabilities transfers out of level 3 | 0 | 0 | ||||
Carrying value | ||||||
Financial instruments and fair value disclosures | ||||||
Orbital receivables | 392 | 417 | ||||
Long-term debt excluding finance leases, deferred financing and other | 2,044 | $ 2,055 | ||||
Interest rate swaps | ||||||
Financial instruments and fair value disclosures | ||||||
Maturities of interest rate swaps | $ 500 | |||||
Notional amount | $ 500 | |||||
Interest rate swaps | Forecast | ||||||
Financial instruments and fair value disclosures | ||||||
Maturities of interest rate swaps | $ 500 | $ 500 | ||||
Interest rate swaps | Cash flow hedges | Syndicated Credit Facility | ||||||
Financial instruments and fair value disclosures | ||||||
Long-term debt at variable rate | $ 1,000 | |||||
Derivative, Average Fixed Interest Rate | 1.71% |
Stockholders' Equity - Componen
Stockholders' Equity - Components of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | $ 1,462 | ||
Balance at the end of period | $ 1,461 | ||
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (42) | $ (42) | (53) |
Other comprehensive income | 10 | 11 | |
Balance at the end of period | (32) | (42) | (42) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (2) | (1) | (1) |
Other comprehensive income | (1) | (1) | |
Balance at the end of period | (3) | (2) | (1) |
Unrecognized (loss) gain on on interest rate swaps | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | 11 | 10 | (1) |
Other comprehensive income | 11 | 1 | 11 |
Balance at the end of period | 22 | 11 | 10 |
Loss on pension and other postretirement plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (51) | (51) | (51) |
Balance at the end of period | $ (51) | $ (51) | $ (51) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Mar. 22, 2021 | Sep. 30, 2021 | |
Stockholders' equity | ||
Common stock issuance, net of transaction fees (in shares) | 10 | |
Public offering price | $ 40 | |
Proceeds from common stock | $ 380 | $ 380 |
Transaction fees | $ 20 |
Revenues - Remaining performanc
Revenues - Remaining performance obligations (Details) $ in Billions | Sep. 30, 2022 USD ($) |
Revenue | |
Remaining performance obligation | $ 3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue | |
Remaining performance obligation | $ 0.4 |
Expected timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue | |
Remaining performance obligation | $ 1.1 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue | |
Remaining performance obligation | $ 1.5 |
Expected timing of satisfaction | 1 year |
Revenues - Contract liabilities
Revenues - Contract liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Contract liabilities | ||
Contract liabilities | $ 245 | $ 289 |
Decrease in contract liability due to consideration received in advance | 44 | |
Earth intelligence | ||
Contract liabilities | ||
Contract liabilities | 114 | 32 |
Space Infrastructure | ||
Contract liabilities | ||
Contract liabilities | $ 131 | $ 257 |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenues by source (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Revenues | $ 436 | $ 437 | $ 1,279 | $ 1,302 |
Product | ||||
Revenue | ||||
Revenues | 161 | 166 | 469 | 498 |
Service | ||||
Revenue | ||||
Revenues | 275 | 271 | 810 | 804 |
Space Infrastructure | ||||
Revenue | ||||
Orbital interest revenue | 6 | 20 | ||
Cumulative adjustment to revenue | 5 | 30 | ||
Space Infrastructure | Commercial Satellite Contract | ||||
Revenue | ||||
EAC adjustments on loss contracts | 18 | 3 | 33 | 26 |
Operating Segments | Earth intelligence | ||||
Revenue | ||||
Revenues | 275 | 271 | 810 | 804 |
Operating Segments | Earth intelligence | Service | ||||
Revenue | ||||
Revenues | 275 | 271 | 810 | 804 |
Operating Segments | Space Infrastructure | ||||
Revenue | ||||
Revenues | 186 | 180 | 549 | 541 |
Operating Segments | Space Infrastructure | Product | ||||
Revenue | ||||
Revenues | 161 | 166 | 469 | 498 |
Intersegment eliminations | ||||
Revenue | ||||
Revenues | (25) | (14) | (80) | (43) |
Intersegment eliminations | Space Infrastructure | ||||
Revenue | ||||
Revenues | $ 25 | $ 14 | $ 80 | $ 43 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of revenues on geographic location of customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Revenues | $ 436 | $ 437 | $ 1,279 | $ 1,302 |
U.S. | ||||
Revenue | ||||
Revenues | 372 | 363 | 1,062 | 1,058 |
Australia | ||||
Revenue | ||||
Revenues | 5 | 9 | 38 | 57 |
Asia | ||||
Revenue | ||||
Revenues | 24 | 25 | 71 | 67 |
Middle East | ||||
Revenue | ||||
Revenues | 15 | 13 | 45 | 40 |
Europe | ||||
Revenue | ||||
Revenues | 14 | 18 | 41 | 54 |
Canada | ||||
Revenue | ||||
Revenues | 3 | 3 | 12 | 8 |
Other. | ||||
Revenue | ||||
Revenues | $ 3 | $ 6 | $ 10 | $ 18 |
Revenues - Disaggregation of _3
Revenues - Disaggregation of revenues from significant customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Revenues | $ 436 | $ 437 | $ 1,279 | $ 1,302 |
U.S. Federal Government and agencies | ||||
Revenue | ||||
Revenues | 243 | 225 | 716 | 703 |
Commercial and other | ||||
Revenue | ||||
Revenues | $ 193 | $ 212 | $ 563 | $ 599 |
Space Infrastructure | Revenue | Customer concentration risk | Commercial customer | ||||
Revenue | ||||
Concentration risk, percentage | 12% | 18% | 11% | 19% |
Operating Segments | Earth intelligence | ||||
Revenue | ||||
Revenues | $ 275 | $ 271 | $ 810 | $ 804 |
Operating Segments | Earth intelligence | U.S. Federal Government and agencies | ||||
Revenue | ||||
Revenues | 188 | 174 | 540 | 525 |
Operating Segments | Earth intelligence | Commercial and other | ||||
Revenue | ||||
Revenues | 87 | 97 | 270 | 279 |
Operating Segments | Space Infrastructure | ||||
Revenue | ||||
Revenues | 186 | 180 | 549 | 541 |
Operating Segments | Space Infrastructure | U.S. Federal Government and agencies | ||||
Revenue | ||||
Revenues | 55 | 51 | 176 | 178 |
Operating Segments | Space Infrastructure | Commercial and other | ||||
Revenue | ||||
Revenues | 131 | 129 | 373 | 363 |
Intersegment eliminations | ||||
Revenue | ||||
Revenues | (25) | (14) | (80) | (43) |
Intersegment eliminations | Commercial and other | ||||
Revenue | ||||
Revenues | (25) | (14) | (80) | (43) |
Intersegment eliminations | Space Infrastructure | ||||
Revenue | ||||
Revenues | $ 25 | $ 14 | $ 80 | $ 43 |
Segment information - Operating
Segment information - Operating performance (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment information | ||||
Number of reportable segments | segment | 2 | |||
Total revenues | $ 436 | $ 437 | $ 1,279 | $ 1,302 |
Corporate and other expenses | (28) | (20) | (73) | (62) |
Offset obligation fulfillment | (12) | (12) | ||
Restructuring | (5) | (10) | ||
Transaction and integration related expense | (1) | (1) | (1) | |
Loss (gain) on sale of assets | 1 | 1 | ||
Depreciation and amortization | (64) | (74) | (199) | (221) |
Interest expense, net | (30) | (25) | (129) | (127) |
Interest income | 1 | 1 | 2 | 2 |
Income (loss) before taxes | 1 | 14 | (35) | (35) |
Operating Segments | Earth Intelligence | ||||
Segment information | ||||
Total revenues | 275 | 271 | 810 | 804 |
Adjusted EBITDA | 115 | 124 | 343 | 362 |
Operating Segments | Space Infrastructure. | ||||
Segment information | ||||
Total revenues | 186 | 180 | 549 | 541 |
Adjusted EBITDA | 33 | 14 | 71 | 29 |
Intersegment eliminations | ||||
Segment information | ||||
Total revenues | (25) | (14) | (80) | (43) |
Adjusted EBITDA | $ (10) | $ (5) | $ (28) | $ (17) |
Segment information - Capital e
Segment information - Capital expenditures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment information | ||||
Capital expenditures, property, plant and equipment | $ 51 | $ 27 | $ 159 | $ 84 |
Capital expenditures, intangible assets | 24 | 24 | 67 | 72 |
Capital expenditures | 75 | 51 | 226 | 156 |
Operating Segments | Earth Intelligence | ||||
Segment information | ||||
Capital expenditures, property, plant and equipment | 32 | 19 | 100 | 47 |
Capital expenditures, intangible assets | 23 | 22 | 63 | 64 |
Capital expenditures | 55 | 41 | 163 | 111 |
Operating Segments | Space Infrastructure. | ||||
Segment information | ||||
Capital expenditures, property, plant and equipment | 3 | 3 | 9 | 11 |
Capital expenditures | 3 | 3 | 9 | 11 |
Intersegment eliminations | ||||
Segment information | ||||
Capital expenditures, property, plant and equipment | 16 | 5 | 50 | 26 |
Capital expenditures, intangible assets | 1 | 2 | 4 | 8 |
Capital expenditures | $ 17 | $ 7 | $ 54 | $ 34 |
Employee benefit plans - Compon
Employee benefit plans - Components of net periodic benefit cost (Details) - Pension - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee benefit plans | ||||
Interest cost | $ 4 | $ 3 | $ 11 | $ 10 |
Expected return on plan assets | (7) | (7) | (22) | (21) |
Amortization of net loss | 1 | 4 | ||
Expenses paid | 1 | 1 | 2 | 2 |
Net periodic benefit credit | $ (2) | $ (2) | $ (9) | $ (5) |
Employee benefit plans - Narrat
Employee benefit plans - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension | Forecast | |
Employee benefit plans | |
Expected future contribution by the employer | $ 0 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income taxes | ||||
Effective income tax rate | 500% | 0% | (17.10%) | 28.60% |
U.S. federal income tax rate | 21% | 21% | 21% | 21% |
Net (loss) income per common _3
Net (loss) income per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net (loss) income per common share | ||||
Net (loss) income | $ (4) | $ 14 | $ (41) | $ (25) |
Weighted average number of common shares outstanding - basic (in shares) | 74.3 | 72.6 | 73.8 | 69.9 |
Weighted dilutive effect of equity awards (in shares) | 2.1 | |||
Weighted average number of common shares outstanding - diluted (in shares) | 74.3 | 74.7 | 73.8 | 69.9 |
Basic net (loss) income per common share | ||||
Basic net (loss) income per common share (in dollars per share) | $ (0.05) | $ 0.19 | $ (0.56) | $ (0.36) |
Diluted net (loss) income per common share | ||||
Diluted net (loss) income per common share (in dollars per share) | $ (0.05) | $ 0.19 | $ (0.56) | $ (0.36) |
Net (loss) income per common _4
Net (loss) income per common share - Anti-dilutive securities (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity awards | ||||
Earnings per common share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2 | 2 | 3 | 4 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 30, 2019 | Sep. 30, 2022 | |
Commitments and Contingencies | ||
Other Commitment | $ 12 | |
Pending Litigation | Colorado Action | ||
Commitments and Contingencies | ||
Litigation settlement amount | 27 | |
Pending Litigation | Colorado Action | Other current assets | ||
Commitments and Contingencies | ||
Loss contingency insurance receivable | $ 27 | |
Settled Litigation | Stockholder class action | ||
Commitments and Contingencies | ||
Recovery amount sought | $ 700 |
Supplemental cash flow (Details
Supplemental cash flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental operating cash flow information | ||
Cash paid for interest | $ 87 | $ 88 |
Income tax payments, net of (refunds) | (8) | (12) |
Supplemental non-cash investing and financing activities: | ||
Accrued capital expenditures | 21 | $ 13 |
Portion of Term Loan B accounted for as a debt modification | $ 103 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event - Wovenware $ in Millions | Nov. 01, 2022 USD ($) |
Subsequent event | |
Total consideration | $ 33 |
Term of contingent payouts based on certain operating metrics | 5 years |
Fair value of acquisition | $ 21 |