Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 | ||
Trading Symbol | MAXR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 74,710,276 | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Denver, Colorado | ||
Entity Public Float | $ 1,936 | ||
Entity Central Index Key | 0001121142 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 1,605 | $ 1,770 | $ 1,723 |
Costs and expenses: | |||
Selling, general and administrative | 431 | 369 | 332 |
Depreciation and amortization | 239 | 290 | 348 |
(Gain) loss on orbital receivables allowance | (49) | 14 | |
Impairment loss | 33 | ||
Loss on sale of assets | 1 | ||
Operating income | 11 | 176 | 2 |
Interest expense, net | 158 | 151 | 175 |
Other expense (income), net | 1 | (8) | (104) |
(Loss) income before taxes | (148) | 33 | (69) |
Income tax expense (benefit) | 2 | (13) | (22) |
Equity in income from joint ventures, net of tax | (1) | ||
(Loss) income from continuing operations | (150) | 46 | (46) |
Income from operations of discontinued operations, net of tax | 32 | ||
Gain on disposal of discontinued operations, net of tax | 317 | ||
Income from discontinued operations, net of tax | 349 | ||
Net (loss) income | $ (150) | $ 46 | $ 303 |
Basic net (loss) income per common share: | |||
Basic (Loss) income from continuing operations (in dollars per share) | $ (2.03) | $ 0.65 | $ (0.76) |
Basic Income from discontinued operations, net of tax (in dollars per share) | 5.75 | ||
Basic net (loss) income per common share (in dollars per share) | (2.03) | 0.65 | 4.99 |
Diluted net (loss) income per common share: | |||
Diluted (Loss) income from continuing operations (in dollars per share) | (2.03) | 0.63 | (0.76) |
Diluted Income from discontinued operations, net of tax (in dollars per share) | 5.75 | ||
Diluted net (loss) income per common share (in dollars per share) | $ (2.03) | $ 0.63 | $ 4.99 |
Product | |||
Revenues: | |||
Total revenues | $ 527 | $ 678 | $ 633 |
Costs and expenses: | |||
Product and service costs, excluding depreciation and amortization | 531 | 601 | 615 |
Service | |||
Revenues: | |||
Total revenues | 1,078 | 1,092 | 1,090 |
Costs and expenses: | |||
Product and service costs, excluding depreciation and amortization | $ 393 | $ 383 | $ 378 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income | |||
Net (loss) income | $ (150) | $ 46 | $ 303 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (1) | (2) | (47) |
Reclassification of currency translation adjustment to gain on disposal of discontinued operations | (68) | ||
Unrealized gain (loss) on interest rate swaps | 22 | 19 | (3) |
Gain (loss) on pension and other postretirement benefit plans | 16 | 50 | (43) |
Other comprehensive income (loss), net of tax | 37 | 67 | (161) |
Comprehensive (loss) income, net of tax | $ (113) | $ 113 | $ 142 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Consolidated Statements of Comprehensive Income | |
Net gain on hedge of net investment in foreign operations | $ 47 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 52 | $ 47 |
Trade and other receivables, net | 380 | 355 |
Inventory, net | 46 | 39 |
Advances to suppliers | 25 | 31 |
Prepaid assets | 35 | 35 |
Other current assets | 70 | 22 |
Total current assets | 608 | 529 |
Non-current assets: | ||
Orbital receivables, net | 307 | 368 |
Property, plant and equipment, net | 1,094 | 940 |
Intangible assets, net | 718 | 787 |
Non-current operating lease assets | 133 | 145 |
Goodwill | 1,649 | 1,627 |
Other non-current assets | 97 | 102 |
Total assets | 4,606 | 4,498 |
Current liabilities: | ||
Accounts payable | 87 | 75 |
Accrued liabilities | 76 | 43 |
Accrued compensation and benefits | 77 | 111 |
Contract liabilities | 364 | 289 |
Current portion of long-term debt | 22 | 24 |
Current operating lease liabilities | 34 | 42 |
Other current liabilities | 76 | 38 |
Total current liabilities | 736 | 622 |
Non-current liabilities: | ||
Pension and other postretirement benefits | 106 | 134 |
Operating lease liabilities | 133 | 138 |
Long-term debt | 2,172 | 2,062 |
Other non-current liabilities | 71 | 79 |
Total liabilities | 3,218 | 3,035 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock ($0.0001 par value, 240 million common shares authorized; 74.7 million and 72.7 million issued and outstanding at December 31, 2022 and 2021, respectively) | ||
Additional paid-in capital | 2,276 | 2,235 |
Accumulated deficit | (873) | (720) |
Accumulated other comprehensive loss | (16) | (53) |
Total Maxar stockholders' equity | 1,387 | 1,462 |
Noncontrolling interest | 1 | 1 |
Total stockholders' equity | 1,388 | 1,463 |
Total liabilities and stockholders' equity | $ 4,606 | $ 4,498 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 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 | 74.7 | 72.7 |
Common stock, shares outstanding | 74.7 | 72.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows (used in) provided by: Operating activities: | |||
Net (loss) income | $ (150) | $ 46 | $ 303 |
Income from operations of discontinued operations, net of tax | (32) | ||
Gain on disposal of discontinued operations, net of tax | (317) | ||
(Loss) income from continuing operations | (150) | 46 | (46) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 239 | 290 | 348 |
Stock-based compensation expense | 48 | 45 | 43 |
Amortization of debt issuance costs and other non-cash interest expense | 16 | 15 | 16 |
Loss on remeasurement of equity interest | 1 | ||
(Gain) on remeasurement of equity interest | (85) | ||
Loss from early extinguishment of debt | 53 | 41 | 7 |
(Gain) loss on orbital receivables allowance | (49) | 14 | |
Cumulative JUPITER3 adjustment | 95 | ||
Cumulative adjustment to SXM-7 revenue | 30 | ||
Impairment losses | 33 | ||
Deferred income tax expense (benefit) | 1 | (17) | |
Other | 32 | 15 | 2 |
Changes in operating assets and liabilities: | |||
Trade and other receivables, net | (5) | (20) | 33 |
Accounts payable and liabilities | (8) | (95) | (84) |
Contract liabilities | 26 | 10 | 5 |
Other | (23) | (34) | (26) |
Cash provided by operating activities - continuing operations | 325 | 294 | 243 |
Cash used in operating activities - discontinued operations | (13) | (54) | |
Cash provided by operating activities | 325 | 281 | 189 |
Investing activities: | |||
Purchase of property, plant and equipment and development or purchase of software | (319) | (234) | (308) |
Acquisitions, net of cash acquired | (8) | (120) | |
Return of capital from discontinued operations | 20 | ||
Other | 2 | ||
Cash used in investing activities - continuing operations | (327) | (234) | (406) |
Cash provided by investing activities - discontinued operations | 723 | ||
Cash (used in) provided by investing activities | (327) | (234) | 317 |
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) | (169) |
Net proceeds from Revolving Credit Facility | 125 | ||
Debt issuance costs paid | (27) | ||
Settlement of securitization liability | (14) | (13) | (11) |
Repayments of long-term debt | (18) | (10) | (525) |
Net proceeds from issuance of common stock | 380 | ||
Other | (10) | (4) | 3 |
Cash provided by (used in) financing activities - continuing operations | 7 | (31) | (555) |
Cash used in financing activities - discontinued operations | (24) | ||
Cash provided by (used in) financing activities | 7 | (31) | (579) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 5 | 16 | (73) |
Effect of foreign exchange on cash, cash equivalents, and restricted cash | (5) | ||
Cash, cash equivalents, and restricted cash, beginning of year | 47 | 31 | 109 |
Cash, cash equivalents, and restricted cash, end of period | 52 | $ 47 | 31 |
7.75% 2027 Notes | |||
Financing activities: | |||
Proceeds from issuance of Notes | $ 500 | ||
7.54% 2027 Notes | |||
Financing activities: | |||
Proceeds from issuance of Notes | $ 147 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Reconciliation of cash flow information: | |||
Cash and cash equivalents | $ 52 | $ 47 | $ 27 |
Restricted cash included in prepaid and other current assets | 4 | ||
Total cash, cash equivalents, and restricted cash | $ 52 | $ 47 | $ 31 |
9.75% 2023 Notes | |||
Reconciliation of cash flow information: | |||
Interest rate (as a percent) | 9.75% | 9.75% | 9.75% |
7.75% 2027 Notes | |||
Reconciliation of cash flow information: | |||
Interest rate (as a percent) | 7.75% | ||
7.54% 2027 Notes | |||
Reconciliation of cash flow information: | |||
Interest rate (as a percent) | 7.54% | 7.54% |
Consolidated Statements of Chan
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, 2019 | $ 1,784 | $ (1,064) | $ 41 | $ 1 | $ 762 | |
Balance at the beginning of period (in shares) at Dec. 31, 2019 | 59.9 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Reclassification of stock-based compensation awards | 4 | 4 | ||||
Common stock issued under employee stock purchase plan | 6 | 6 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.6 | |||||
Common stock issued upon vesting or exercise of stock-based compensation awards (in shares) | 0.7 | |||||
Equity classified stock-based compensation expense | 24 | 24 | ||||
Dividends | (2) | (2) | ||||
Comprehensive income (loss) | 303 | (161) | 142 | |||
Balance at the end of period at Dec. 31, 2020 | 1,818 | (763) | (120) | 1 | 936 | |
Balance at the end 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 | 10 | ||||
Common stock issued under employee stock purchase plan | 8 | $ 8 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.3 | |||||
Equity classified stock-based compensation expense | 29 | 29 | ||||
Equity classified stock-based compensation expense (in shares) | 1.2 | |||||
Dividends | (3) | (3) | ||||
Comprehensive income (loss) | 46 | 67 | 113 | |||
Balance at the end of period at Dec. 31, 2021 | 2,235 | (720) | (53) | 1 | $ 1,463 | |
Balance at the end 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 | 9 | $ 9 | ||||
Common stock issued under employee stock purchase plan (in shares) | 0.5 | |||||
Equity classified stock-based compensation expense | 25 | 25 | ||||
Equity classified stock-based compensation expense (in shares) | 1.5 | |||||
Equity contingent consideration | 7 | 7 | ||||
Dividends | (3) | (3) | ||||
Comprehensive income (loss) | (150) | 37 | (113) | |||
Balance at the end of period at Dec. 31, 2022 | $ 2,276 | $ (873) | $ (16) | $ 1 | $ 1,388 | |
Balance at the end of period (in shares) at Dec. 31, 2022 | 74.7 | 74.7 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Change in Stockholders' Equity | |||
Dividends per common share (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.04 |
General business description
General business description | 12 Months Ended |
Dec. 31, 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. On January 1, 2019, the Company completed a reorganization of its corporate structure pursuant to which the Company directly acquired all of the issued and outstanding shares of Maxar Technologies Ltd. (“Maxar Canada”), and the Company replaced Maxar Canada as the publicly-held parent company of the Maxar group (“U.S. Domestication”). Agreement and Plan of Merger with Advent International Corporation On December 15, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Galileo Parent, Inc., a Delaware corporation (“Parent”), Galileo Bidco, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), and solely for the purposes set forth therein, Galileo Topco, Inc., a Delaware corporation and an indirect parent of Parent (“Preferred Equity Issuer”). Parent, Merger Sub and Preferred Equity Issuer are affiliates of funds advised by Advent International Corporation (“Advent”), a private equity firm headquartered in Boston, Massachusetts. British Columbia Investment Management Corporation (“BCI”) or one or more of its affiliates will also be a minority investor in Preferred Equity Issuer. The Merger Agreement provides that, on the terms and subject to the conditions of the Merger Agreement, at the closing of the transactions contemplated therein, Merger Sub will merge with and into Maxar (the “Merger”). Parent has obtained equity financing, preferred equity financing and debt financing commitments for the purpose of financing the transactions contemplated by the Merger Agreement and paying related fees and expenses. Under the terms of the Merger Agreement, the Company’s stockholders will receive $53.00 in cash for each share of our common stock they hold on the transaction closing date. Pursuant to the terms of the Merger Agreement, the closing of the Merger Agreement is subject to the satisfaction of customary closing conditions, including adoption of the Merger Agreement by the Company’s stockholders and receipt of regulatory approvals. Acquisitions On November 1, 2022, the Company completed the acquisition of Wovenware Inc., (“Wovenware”) a privately held artificial intelligence and software development technology consulting firm. On July 1, 2020, the Company closed the acquisition of Vricon, Inc. (“Vricon”) by purchasing the remaining 50% ownership interest in Vricon (“Vricon Acquisition”). See Completion of the sale of MDA On April 8, 2020, the Company completed the sale of its former Canadian subsidiary (“MDA Business”), to Neptune Acquisition Inc. (“MDA Purchaser”), a corporation existing under the laws of the Province of British Columbia and an affiliate of Northern Private Capital Ltd. (“MDA Transaction”). This divestiture represented a strategic shift in the Company’s business and, in accordance with U.S. GAAP, the MDA Business qualified as a discontinued operation. As a result, the operating results and cash flows related to the MDA Business have been reflected as discontinued operations in the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows. See Note 3 for additional details. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The Consolidated Financial Statements include the accounts of Maxar Technologies Inc., and all consolidated subsidiary entities. The Company’s 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. All intercompany balances and transactions are eliminated on consolidation. The Company's 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. Unless otherwise indicated, amounts provided in the Notes to the Consolidated Financial Statements pertain to continuing operations (See Note 3 for information on discontinued operations). Use of estimates, assumptions and judgments The preparation of the 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. Leases The Company has both operating and finance leases. The majority of the Company’s leases are operating leases related to buildings. The Company’s finance leases are primarily related to equipment. The Company determines if a contract is or contains a lease at inception based on whether it conveys the right to control the use of an identified asset. The Company recognizes lease liabilities and right-of-use assets based on the present value of the future minimum lease payments over the lease term at the commencement date. Right-of-use assets are adjusted for any prepayments, lease incentives received and initial direct costs incurred. If the rate implicit in the lease is not readily determinable, the Company’s incremental borrowing rate with a similar term to the lease term is used to determine the present value of future payments and appropriate lease classification. The lease term includes renewal options that are reasonably certain to be exercised. The Company elected the practical expedient not to separate lease and non-lease components. The Company also elected to include in minimum lease payments any executory costs that are part of the fixed lease payment. Some of the Company’s building lease agreements contain incentives for leasehold improvements. If the leasehold improvement has been determined to be owned by the lessee, the Company generally recognizes an incentive received at or before the commencement date as a reduction to the right-of-use asset. Incentives receivable at commencement that are probable of being received and within the Company’s control are included in the measurement of the lease liability and right-of-use asset. The Company uses the date of initial possession as the commencement date, which is generally when the Company has been given rights to access the space. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets and are recognized as lease expense on a straight-line basis in the Consolidated Statements of Operations. Certain leasing arrangements require variable payments, such as insurance and tax payments. Variable lease payments that do not depend on an index or rate are excluded from lease payments in the measurement of the right-of-use asset and lease liability and are recognized as expense in the period in which the payment occurs. The Company does not have any material restrictions or covenants in our lease agreements, sale leaseback transactions or residual value guarantees. The Company recognizes fixed lease expense for operating leases on a straight-line basis Business combinations and divestitures Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. The excess of the consideration over the fair value of the identifiable net assets acquired is recorded as goodwill. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale. The results of discontinued operations are reported in Income from discontinued operations, net of tax in the Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. Assets and liabilities of a discontinued operation are reported separately in the Consolidated Balance Sheets as held for sale and classified as either current or non-current in the prior periods. If it is probable that the sale will occur and proceeds will be collected within one year of meeting the held for sale criteria both assets and liabilities classified as held for sale are reported in the current period Consolidated Balance Sheet as current. Foreign currency Assets and liabilities of non-U.S. subsidiaries that operate in local currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments, net of tax, recorded in Accumulated other comprehensive income (loss) within the Stockholders’ equity section of the Consolidated Balance Sheets. Income and expense accounts are translated at average monthly exchange rates during the year. Revenue recognition Revenue is recognized in accordance with the five-step model set forth by Accounting Standards Codification (“ASC”) 606, which involves identification of the contract(s), identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations and recognition of revenue as the performance obligations are satisfied. Revenue is measured at the fair value of consideration received or receivable, net of discounts as of the date of the transaction. When consideration received from customers includes advance payments that contain a financing element, the Company imputes interest on such advance payments and recognizes such amounts as a component of revenue. Contract costs generally include direct costs such as materials, labor and subcontract costs. Costs are expensed as incurred except for incremental costs incurred to obtain or fulfill a contract, which are capitalized and amortized on a systematic basis consistent with the transfer of goods or services to the customer to which the capitalized costs relate. As of December 31, 2022 and 2021, current costs to obtain or fulfill a contract were $13 million and $8 million, respectively, and are included in Other current assets within the Consolidated Balance Sheets. As of December 31, 2022 and 2021, non-current costs to obtain or fulfill a contract were $42 million and $47 million, respectively, and are included in Other non-current assets within the Consolidated Balance Sheets. Space Infrastructure 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. Variable consideration is included in the Company’s estimates to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company estimates variable consideration as the most likely amount to which it expects to be entitled. 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 cost associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to EAC cost or estimated contractual consideration are recorded as a cumulative catch-up adjustment. Satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price is contingent upon in-orbit performance of the satellite. These performance incentives are structured in two forms. As a warranty payback, the customer pays the entire amount of the performance incentive during the period of the satellite construction and such incentives are subject to refund if satellite performance does not achieve certain predefined operating specifications. As an orbital receivable, the customer makes payment of performance incentives over the in-orbit life of the satellite. Performance incentives, whether warranty payback or orbital receivables, are included in revenue during the construction period to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. A portion of performance incentives may be allocated to services in the post-launch period if a separate performance obligation for such services has been determined to exist within the contract. In addition to the in-orbit performance incentives, satellite construction contracts may include liquidated damages clauses. Liquidated damages can be incurred 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 related to liquidated damages result in a reduction of revenue recognized and are recorded in the period in which, based on available facts and circumstances, management believes it is probable that liquidated damages will be incurred and enforced. Construction contracts have termination clauses. If a contract is terminated for convenience by a customer, the Company is typically entitled to costs incurred plus a reasonable profit. Earth Intelligence Revenue in the Earth Intelligence segment is generated from imagery and geospatial intelligence service contracts. Revenue from imagery service contracts is recognized based on satellite capacity made available to the customer in a particular period, when imagery is delivered to the customer, or ratably over the subscription period. Many of our imagery service contracts relate to the transfer of a series of distinct goods or services over time for which management has determined are a single performance obligation. Electro-Optical Commercial Layer Program – On May 25, 2022, the Company was awarded the Electro-Optical Commercial Layer contract (“EOCL Contract”) by the National Reconnaissance Office (“NRO”). The EOCL Contract transitioned the capacity requirements, previously addressed by the EnhancedView Contract and, with this award, replaces the scope of the EnhancedView Contract with respect to such requirements. The EOCL Contract includes one performance obligation to deliver a certain amount of capacity to the U.S. government over a 5-year base contractual term beginning on June 15, 2022 and up to five 1-year option periods. Revenue is recognized as capacity is provided to the customer. As a consistent amount of capacity is being made available, revenue is recognized on a ratable basis. The Company determined the option years do not provide a material right to the NRO, and therefore do not give rise to additional performance obligations. As each option year is exercised, the consideration payable by the NRO will be recognized as revenue as capacity is provided over that option period. While the imagery acquisition portion of the EnhancedView Follow-On contract (“EnhancedView Contract”) has moved to the EOCL Contract, the Company will continue to perform other awarded services on the EnhancedView Contract through 2025, concurrent with the new EOCL Contract. Direct Access Program – Direct Access Program arrangements generally include construction of the direct access facility, access to the satellites to task and download imagery and facility maintenance services. The facility is generally delivered at the beginning of the contractual period of performance with access and maintenance services delivered over the duration of the contractual term. The Company has determined that distinct performance obligations exist; the access and related non-distinct promised goods and services are included together as a combined performance obligation with maintenance services representing a standalone performance obligation. Where a direct access facility is to be constructed under a new Direct Access Program or upgraded to maintain an existing level of service, the access and the facility are considered a single combined performance obligation as the customer cannot benefit from the facility on its own or with other readily available resources. The transaction price allocated to the combined performance obligation is recognized as access minutes are consumed during the contractual period. The remaining transaction price allocated to the maintenance services is recognized ratably over the maintenance period. Other Imagery Arrangements – Revenue is recognized for imagery licenses when the imagery is delivered to the customer. Revenues related to online imagery subscriptions are generally recognized ratably over the subscription period. Other imagery arrangements transfer a series of distinct goods or services over time for which management has determined are a single performance obligation or include multiple performance obligations. Revenue from geospatial intelligence service contracts is recognized from the rendering of services that compensate the Company at a cost-plus-fixed-fee, firm fixed price, or on a time and materials basis. Revenue is typically recognized for these contracts over time based on the stage of services completed to date as a percentage of total services to be performed, or on the basis of time plus reimbursable costs incurred during the period. As the customer typically controls the related work-in-progress, an input measure is the most appropriate basis with which to measure progress. Finally, as cost of labor is the predominant measure by which these contracts are structured, the Company recognizes revenue using a cost-incurred approach. Contract liabilities Contract liabilities primarily consist of advance payments from customers and deferred revenue. Changes in contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances. Net (loss) income per common share Net (loss) income per common share is computed by dividing net (loss) income by the sum of the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by adjusting the basic income per common share calculation, as described above, for the effects of all potentially dilutive shares. The Company calculates the effects of all potentially dilutive shares using the treasury stock method unless they are anti-dilutive. Research and development Research and development costs are expensed in the period incurred. For the years ended December 31, 2022, 2021 and 2020, the Company expensed research and development costs of $40 million, $27 million, and $15 million, respectively, in Selling, general and administrative expense within the Consolidated Statements of Operations. Implementation costs incurred in cloud computing arrangements Deferred implementation costs for hosted cloud computing service arrangements are stated at historical cost and amortized on a straight-line basis over the term of the hosting arrangement to which the implementation costs relate to, including any probable renewals. Deferred implementation costs for these arrangements are included in Prepaid assets and Other non-current assets in the Consolidated Balance Sheets and amortized to the same line item as the related hosting fees in the Consolidated Statements of Operations. There was $2 million of amortization for the year ended December 31, 2022. There was no amortization for the years ended December 31, 2021 and 2020. The cash flows for deferred implementation costs and fees for the associated hosting arrangements are reporting in the same line within operating activities in the Consolidated Statements of Cash Flows. As of December 31, 2022 and 2021, unamortized deferred implementation costs for cloud computing arrangements were $30 million and $20 million, respectively. Interest expense, net Interest expense, net is comprised of borrowing cost on debt, interest expense on advance payments from customers and other liabilities, interest expense on the orbital securitization liability and losses incurred on the extinguishment of debt, net of capitalized interest. Debt issuance costs related to the Company’s revolving line of credit are recorded in Prepaid assets and in Other non-current assets in the Consolidated Balance Sheets. Debt issuance costs and debt discount related to the Company’s term loan and senior secured notes are recorded as a direct deduction from the carrying amount of the related debt. Derivative financial instruments and hedging activities Derivative financial instruments used by the Company consist of interest rate swap agreements. The Company uses interest rate swap agreements to manage interest rate risk associated with cash outflows from long-term debt. Derivative financial instruments are measured at fair value and are included as components of Other current assets and Other non-current assets or Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets. When derivative financial instruments are designated in a qualifying hedging relationship and hedge accounting is applied, the effectiveness of the hedges is measured at the end of each reporting period and the effective portion of changes in fair value are deferred in Accumulated other comprehensive income (loss). Amounts deferred in Accumulated other comprehensive income (loss) Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. At that time, if the forecasted transaction within a cash flow hedge remains probable, any cumulative gain or loss on the hedging instrument recognized in Other comprehensive income (loss) is retained in equity until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss previously recognized in other comprehensive income is transferred to income. As of January 1, 2019, the Company discontinued hedge accounting on foreign exchange forward contracts related to its manufacturing and service programs. The Company does not offset the fair value amounts recognized with derivative instruments against the change in fair value of assets, liabilities or firm commitments executed with the same counterparty under a master netting agreement. Cash, cash equivalents and restricted cash Cash and cash equivalents is comprised of cash on hand, cash balances with banks and similar institutions and term deposits redeemable within three months or less from date of acquisition with banks and similar institutions. Restricted cash is excluded from cash and cash equivalents and is included in Other current assets or Other non-current assets in the Consolidated Balance Sheets. Trade and other receivables, net Trade and other receivables include amounts billed to customers, unbilled receivables in which the Company’s right to consideration is unconditional and current portion of orbital receivables, net of allowance for expected credit losses. The Company bills customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries. The Company maintains an allowance for expected credit losses for estimated losses resulting from the inability of its customers to make required payments, which results in bad debt expense. The Company periodically determines the adequacy of this allowance by evaluating the comprehensive risk profiles of all individual customer receivable balances including, but not limited to, the customer’s financial condition, credit agency reports, financial statements, credit limit and overall current economic conditions. Orbital Receivables Orbital receivables relate to performance incentives due under certain satellite construction contracts that are paid over the in-orbit life of the satellite. Orbital receivables are recognized as revenue when measuring progress under the cost-to-cost method during the construction period. The interest portion of the in-orbit payments is recognized as orbital revenue. Current orbital receivables are included in Trade and other receivables, net and long-term orbital receivables are included in Non-current assets, net of allowances in the Consolidated Balance Sheets. The Company records an allowance on its orbital receivables when, based on current events and circumstances, it believes it is probable that the outstanding amounts will not be collected. The Company utilizes customer credit ratings, expected credit loss and other credit quality indicators, as well as contractual terms to evaluate the collectability of orbital receivables on a quarterly basis. When qualitative factors indicate that all or a portion of an outstanding orbital receivable is uncollectable, or that all or a portion of an outstanding orbital receivable previously deemed uncollectable is collectable, a fair value assessment is performed using a discounted cash flow model as an indicator to determine whether an increase or decrease in the allowance is necessary. Increases and decreases in the orbital receivables allowance are included in (Gain) loss on orbital receivables allowance in the Consolidated Statements of Operations. If the Company does not fulfill its performance obligation associated with its orbital receivables, a write-off of those orbital receivables will occur resulting in a reduction in the contractual value and revenue recognition associated with the performance obligation. The Company has a revolving securitization facility agreement with an international financial institution. Under the terms of the agreement, the Company may offer to sell eligible orbital receivables from time to time with terms of seven years or less, discounted to face value using prevailing market rates. The Company has sold certain orbital receivables in tranches that span multiple years and include longer-term maturities. The orbital receivables that have been securitized remain recognized on the Consolidated Balance Sheets as the Company does not meet the accounting criteria for surrendering control of the receivables. The net proceeds received on the orbital receivables have been recognized as securitization liabilities and are subsequently measured at amortized cost using the effective interest rate method. Securitization liabilities are presented in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. The securitized orbital receivables and the securitization liabilities are being drawn down as payments are received from the customers and passed on to the purchaser of the tranche. The Company continues to recognize orbital revenue on the orbital receivables that are subject to the securitization transactions and recognizes interest expense to accrete the securitization liability. Investments Short-term investments consist of mutual funds and financial instruments purchased with a term to maturity at inception between three months and one year. Short-term investments are measured at fair value through net income. Short-term investments are included within Other current assets in the Consolidated Balance Sheets. The Company has investments in joint ventures where it does not have a controlling financial interest but has the ability to exercise significant influence. These investments are accounted for under the equity method and are included within Other non-current assets in the Consolidated Balance Sheets. The Company’s share of the joint venture’s net income or loss is included within Equity in (income) loss from joint ventures, net of tax in the Consolidated Statements of Operations. The Company’s most significant joint venture was Vricon, a joint venture with Saab AB, specializing in the production of 3D models using high resolution imagery. On July 1, 2020, the Company closed the acquisition of Vricon by purchasing the remaining 50% ownership interest in Vricon. The operating results of Vricon are included in the Company’s Consolidated Statement of Operations beginning July 1, 2020. Equity method investments are insignificant for the years ended December 31, 2022 and 2021. Inventor y Inventories are measured at the lower of cost or net realizable value and consist primarily of parts and sub-assemblies used in the manufacturing of satellites. The cost of inventories is determined on a first-in-first-out basis or weighted average cost basis, depending on the nature of the inventory. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expense. Inventory is impaired when it is probable inventory values exceed their net realizable value. Property, plant and equipment Property, plant and equipment is measured at cost less accumulated depreciation. Cost for satellite assets includes amounts related to design, construction, launch and commissioning. Cost for ground system assets include amounts related to construction and testing. Interest expense is capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. When the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item and the components have different useful lives, they are accounted for and depreciated separately. Property, plant and equipment under construction are measured at cost less any impairment losses. Depreciation expense is recognized in income on a straight-line basis over the estimated useful life of the related asset to its residual value. Expected useful lives are reviewed at least annually. Land is not depreciated. The estimated useful lives are as follows: Estimated useful life Land improvements 20 years Buildings 7 - 45 years Leasehold improvements lesser of useful life or term of lease Equipment 2 - 40 years Satellites 1 11.5 - 17 years Furniture and fixtures 2 - 10 years Computer hardware 2 - 13 years 1 The estimated useful life over which the Company depreciates its satellites is determined once a satellite has been placed into orbit. The initial determination of a satellites useful life involves an analysis that considers design life, random part failure probabilities, expected component degradation and cycle life, predicted fuel consumption and experience with satellite parts, vendors and similar assets. Intangible assets Intangible assets consist of customer relationships, backlog, acquired technologies and software, image library, trade names, licenses and non-compete agreements. Intangible assets are generally amortized on a straight-line basis over their estimated useful lives and are recorded at fair value at the time of acquisition, or in the case of internally developed software, at cost. Image library intangibles assets are amortized using the double declining balance method. Intangible assets are currently amortized over the following estimated useful lives: Estimated useful life Customer relationships 9 - 21 years Backlog 2 - 5 years Technologies 5 - 13 years Software 2 - 10 years Image library 5 years Trade names and other 1 - 20 years Non-compete agreements 2 years Impairment Intangible assets and property, plant and equipment and other long-lived assets Finite-lived intangible assets, property, plant and equipment and other long-lived assets are tested for impairment at least annually on October 1, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Finite-lived intangible assets and property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value and recorded as a reduction in the carrying value of the related asset. If an owned satellite were to fail during launch or while in-orbit, the resulting loss would be charged to expense in the period it is determined the satellite is not recoverable. The amount of loss would be reduced to the extent of insurance proceeds received. The timing of the loss and the insurance recovery will likely differ, as an insurance recovery generally cannot be recognized until final settlement with the insurance company is reached. Goodwill Goodwill is tested for impairment at least annually on October 1, or whenever events or changes in circumstances indicate that its carrying amount may be less than its recoverable amount. Goodwill is tested for impairment at the reporting unit level. The Company may use either a qualitative or quantitative approach when testing a reporting unit’s goodwill for impairment. Where a qualitative approach is used, an evaluation of events and circumstances impacting the reporting unit is performed to determine the likelihood of goodwill impairment. Based on that qualitative evaluation if it is determined that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise, a quantitative impairment test is performed. Where a quantitative approach is used, management typically uses an income approach to estimate the fair value of a reporting unit, which requires the use of significant judgments and estimates, including future cash flows, terminal growth rates and discount rates. Any changes to these inputs could have a material impact on the impairment calculation. An impairment loss is recognized to the extent that the carrying value of a reporting unit exceeds its fair value. Management assesses the reasonableness of the results by reconciling the sum of the estimated fair values of the reporting units, including the Company’s Corporate balance sheet, to the Company’s market capitalization and market value of invested capital as of the date of our annual impairment test. The Company used a qualitative approach for its goodwill impairment assessment as of October 1, 2022 and 2021 and determined that no impairment existed. Warranty and after-sale service costs A liability for warranty and after-sale service costs is recognized when the underlying product is sold. Warranty and after-sale service provisions are based on management’s best |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued operations. | |
Discontinued operations | 3. DISCONTINUED OPERATIONS On April 8, 2020, the Company completed the sale of the MDA Business to MDA Purchaser for an aggregate purchase price of $729 million ($1.0 billion Canadian dollars). The Company recognized an after-tax gain on disposal of discontinued operations of $317 million, net of $12 million in taxes, on the MDA Transaction for the year ended December 31, 2020. The tax on the MDA Transaction was primarily due to the estimated U.S. federal Base Erosion and Anti-Abuse Tax and California legislation suspending the use of net operating loss (“NOL”) carryforwards. The gain on the MDA Transaction includes a reclassification primarily related to the foreign currency translation adjustment balance of $68 million from Accumulated other comprehensive (loss) income. See Note 11 for details on the use of proceeds from the MDA Transaction. In addition, the Company and the MDA Purchaser entered into a Transition Services Agreement pursuant to which the MDA Purchaser received certain services (“Services”). The Services were provided based on an agreed upon fee arrangement that ended on April 8, 2021. The Company determined that as of December 29, 2019, the MDA Business met the criteria to be classified as held for sale. The MDA Business was a separate reportable segment prior to the announcement of the MDA Transaction and constituted all the Company’s Canadian operations. As the MDA Transaction represented a strategic shift that had a major effect on the Company’s operations, the MDA Business results met the criteria to be reported as discontinued operations in accordance with ASC 205-20 – Discontinued Operations. The results of MDA are classified as discontinued operations in the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows for all periods presented. For the year ended December 31, 2020, the Company reported the operating results and cash flows related to the MDA Business through April 7, 2020. There was no activity within discontinued operations in the Consolidated Statements of Operations for the year ended December 31, 2022 and 2021. For the years ended December 31, 2022 and 2021, the Company made $0 million and $13 million in payments, respectively, on a previously recorded liability in relation to the Company’s dispute with a Ukrainian customer that is reflected within discontinued operations in the Consolidated Statements of Cash Flows. Income from discontinued operations, net of tax for the MDA Business in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2020 1 Revenues: Product $ 44 Service 42 Total revenues 86 Costs and expenses: Product costs, excluding depreciation and amortization 38 Service costs, excluding depreciation and amortization 24 Selling, general and administrative 13 Depreciation and amortization 4 Impairment loss 12 Operating (loss) income (5) Interest expense, net 1 Other (income) expense, net 2 (34) Income before taxes 28 Income tax benefit (4) Income from operations of discontinued operations, net of tax 32 Gain on disposal of discontinued operations, net of tax 317 Income from discontinued operations, net of tax $ 349 1 2 Other (income) expense, net includes the $39 million recovery of the previously recorded liability in relation to the Company’s dispute with the Ukrainian Customer. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2022 | |
Business combination | |
Business combination | 4. BUSINESS COMBINATION Acquisition of Wovenware On November 1, 2022, the Company completed the acquisition of Wovenware, a privately held artificial intelligence and software development technology consulting firm, for total fair value consideration of $24 million, a portion of which is contingent on certain operating metrics, that will be paid out over a period of five years . As part of the acquisition, the Company acquired $5 million in net identifiable assets which resulted in the recognition of $19 million in goodwill. The goodwill is attributable primarily to the synergies expected to be achieved from integrating Wovenware with the Company’s existing capabilities. As of November 1, 2022, Wovenware is included in the Company’s Consolidated Statements of Operations. Wovenware results are consolidated within the 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 for the acquisition are not presented. Acquisition of Vricon On July 1, 2020, the Company closed the acquisition of Vricon by purchasing the remaining 50% ownership interest in Vricon for $143 million or, excluding Vricon cash on hand of $23 million, for $120 million. Vricon is a global leader in satellite-derived 3D data for defense and intelligence markets, with software and products that enhance 3D mapping, Earth intelligence data, military simulation and training and precision-guided munitions. Vricon was formed as a joint venture between Maxar and Saab AB in 2015 to combine patented Saab AB intellectual property with the Company’s commercial satellite imagery to build highly accurate, immersive 3D products at scale. Prior to the closing of the Vricon Acquisition, Vricon was the Company’s most significant joint venture. To fund the Vricon Acquisition, the Company issued $150 million in aggregate principal amount of 7.54% senior secured notes due 2027 (“7.54% 2027 Notes”). See Note 11 for additional details on the issuance of the 7.54% 2027 Notes. As part of the Vricon Acquisition, Vricon’s stock-based awards vested upon the consummation of the Vricon Acquisition and were settled in cash for $26 million. The unvested awards were forfeited. The Vricon Acquisition was achieved in stages, which required the Company to remeasure its previously held equity interest in Vricon at its acquisition date fair value. As no material control premium was determined to exist, the call option purchase price of $117 million paid in the Vricon Acquisition was used to estimate the fair value of the previously held equity interest. The Company performed a business enterprise valuation to corroborate the resulting total implied purchase consideration. This remeasurement resulted in a gain of approximately $85 million which was recorded in Other (income) expense within the Company’s Consolidated Statements of Operations for the year ended December 31, 2020. The operating results of Vricon are included in the Company’s Consolidated Statements of Operations beginning July 1, 2020. Vricon results are consolidated within the Earth Intelligence Segment. See Note 2 for summarized financial information for Vricon for periods prior to the date of acquisition. The following table presents unaudited pro forma financial information as if Vricon had been included in the Company’s financial results for the year ended December 31, 2020: Year Ended December 31, 2020 Revenues $ 1,734 Net income $ 302 The Company did not close any transactions qualifying as a business combination during the year ended December 31, 2021. |
Trade and other receivables, ne
Trade and other receivables, net | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables, net | |
Trade and other receivables, net | 5. TRADE AND OTHER RECEIVABLES, NET December 31, December 31, 2022 2021 U.S. government receivables: Billed $ 67 $ 65 Unbilled 92 124 159 189 Other governments and commercial receivables: Billed 131 97 Unbilled 42 19 173 116 Total trade receivables 332 305 Orbital receivables, current portion 44 49 Other 4 2 Allowance for doubtful accounts — (1) Trade and other receivables, net $ 380 $ 355 During the year ended December 31, 2022, the Company reduced its outstanding receivables due to the amendment of its contract with EchoStar XXIV L.L.C., a subsidiary of EchoStar Corporation. (“EchoStar”) as a result of the expected shipment delay on the JUPITER 3 satellite (“JUPITER 3”) for the expected orbital payments by $42 million. During the year ended December 31, 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. As of December 31, 2022 and 2021, non-current orbital receivables, net of allowances were $307 million and $368 million, respectively. The Company has orbital receivables from 13 customers for which the largest customer’s value represents 33% and 30% of the stated current and non-current balance sheet values for the years ended December 31, 2022 and 2021, respectively. There were no changes in the allowance for expected credit losses related to non-current orbital receivables for the year ended December 31, 2022. For the year ended December 31, 2021, as a result of an increased certainty of collections of the outstanding orbital receivables from the Company’s largest customer, due to their emergence from bankruptcy, the Company reversed its $49 million allowance for expected credit losses. The expected timing of total contractual cash flows, including principal and interest payments for orbital receivables is as follows: 2023 2024 2025 2026 2027 Thereafter Total Contractual cash flows from orbital receivables $ 69 $ 70 $ 64 $ 59 $ 55 $ 270 $ 587 During the years ended December 31, 2022 and 2021, the Company did not sell any eligible orbital receivables or repurchase any orbital receivables. The net proceeds received on previously sold orbital receivables have been recognized as securitization liabilities. Securitization liabilities as of December 31, 2022 and 2021, are as follows: December 31, December 31, 2022 2021 Current portion $ 15 $ 16 Non-current portion 18 32 Total securitization liabilities $ 33 $ 48 |
Inventory, net
Inventory, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, net | |
Inventory, net | 6. INVENTORY, NET December 31, December 31, 2022 2021 Raw materials $ 44 $ 34 Work in process 4 6 Total $ 48 $ 40 Inventory reserve (2) (1) Inventory, net $ 46 $ 39 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | 7. PROPERTY, PLANT AND EQUIPMENT, NET December 31, December 31, 2022 2021 Satellites $ 398 $ 397 Equipment 209 221 Computer hardware 114 95 Leasehold improvements 95 83 Furniture and fixtures 17 16 Construction in process 1 855 668 Property, plant and equipment, at cost 1,688 1,480 Accumulated depreciation (594) (540) Property, plant and equipment, net $ 1,094 $ 940 1 Construction in process is primarily related to the construction of the Company’s WorldView Legion satellites. Depreciation expense for property, plant and equipment was $76 million, $86 million and $93 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill | |
Intangible assets and goodwill | 8. INTANGIBLE ASSETS AND GOODWILL December 31, 2022 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Customer relationships $ 615 $ (234) $ 381 $ 615 $ (190) $ 425 Software 461 (174) 287 379 (152) 227 Technologies 49 (14) 35 367 (278) 89 Trade names and other 28 (13) 15 37 (18) 19 Backlog — — — 107 (89) 18 Image library — — — 80 (71) 9 Intangible assets $ 1,153 $ (435) $ 718 $ 1,585 $ (798) $ 787 The gross carrying value and accumulated amortization balances for fully amortized backlog, image library, technologies and trade names and other were removed from the Consolidated Balance Sheets and excluded from the table above as of December 31, 2022. Amortization expense related to intangible assets was $163 million, $204 million and $255 million for the years ended December 31, 2022, 2021 and 2020, respectively. The estimated annual amortization expense related to finite-lived intangible assets as of December 31, 2022, is as follows: 2023 2024 2025 2026 2027 2028 and thereafter Amortization expense $ 109 $ 108 $ 105 $ 77 $ 66 $ 253 Goodwill balances for each reporting segment are as follows: Earth Intelligence Space Infrastructure Total Balance as of December 31, 2020 Goodwill $ 1,769 $ 17 $ 1,786 Accumulated impairment losses (142) (17) (159) 1,627 — 1,627 Balance as of December 31, 2021 Goodwill 1,769 17 1,786 Accumulated impairment losses (142) (17) (159) 1,627 — 1,627 Acquisition of Wovenware 19 — 19 Acquisition of other 3 — 3 Balance as of December 31, 2022 Goodwill 1,791 17 1,808 Accumulated impairment losses (142) (17) (159) $ 1,649 $ — $ 1,649 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 9. LEASES The Company’s leases have remaining lease terms which options Sale Leaseback On December 10, 2019, the Company completed the sale and subsequent leaseback of Company owned properties in Palo Alto, California. The Company determined the leaseback of both properties to be operating leases, as the criteria to be classified as financing leases were not met. The Company recorded operating lease assets and liabilities two The Company recorded the current portions of the operating lease liabilities and the deferred financing liability in Current lease liabilities and Current portion of long-term debt, respectively, in the Consolidated Balance Sheets. The non-current portions of the operating lease assets, the operating lease liabilities and the deferred financing liability have been recorded in Non-current operating lease assets, Non-current operating lease liabilities and Long-term debt, respectively, in the Consolidated Balance Sheets. Interest expense on the financial liability has been recorded in Interest expense, net in the Consolidated Statements of Operations. Finance lease expense, variable lease expense, short-term lease expense and sublease income are not material. The components of operating lease expense are as follows: Year Ended December 31, Classification 2022 2021 2020 Operating lease expense Selling, general, and administrative expense, Product costs, and Service costs 1 $ 45 $ 44 $ 47 1 Excluding depreciation and amortization Supplemental lease balance sheet information consists of the following: December 31, December 31, Classification 2022 2021 Assets: Operating Non-current operating lease assets $ 133 $ 145 Finance Property, plant, and equipment, net 7 5 Total lease assets $ 140 $ 150 Liabilities: Current Operating Current operating lease liabilities $ 34 $ 42 Finance Current portion long-term debt 4 3 Non-current Operating Operating lease liabilities 133 138 Finance Long-term debt 1 2 Total lease liabilities $ 172 $ 185 Supplemental lease cash flow information is as follows: December 31, December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 38 $ 44 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 16 $ 12 Other supplemental lease information consists of the following: December 31, December 31, 2022 2021 Weighted average remaining lease term (in years) Operating leases 7 7 Finance leases 2 2 Weighted average discount rate Operating leases 6.7% 6.4% Finance leases 4.0% 3.2% Maturities of lease liabilities are as follows: 2023 2024 2025 2026 2027 Thereafter Less: imputed interest Total minimum lease payments Operating leases $ 35 $ 31 $ 27 $ 25 $ 25 $ 71 $ (47) $ 167 Finance leases 4 1 — — — — — 5 |
Warranty and restructuring obli
Warranty and restructuring obligations | 12 Months Ended |
Dec. 31, 2022 | |
Warranty and restructuring obligations | |
Warranty and restructuring obligations | 10. WARRANTY AND RESTRUCTURING OBLIGATIONS Changes to warranty and restructuring obligations during the years ended December 31, 2022 and 2021, are as follows: Warranty and after-sale service Restructuring Balance as of December 31, 2020 $ 38 $ — Obligations incurred 2 2 Payments/uses (5) — Reversals (1) — Balance as of December 31, 2021 $ 34 $ 2 Obligations incurred 1 13 Payments/uses (5) (10) Reversals (3) — Balance as of December 31, 2022 $ 27 $ 5 The Company incurred restructuring costs of $18 million for the year ended December 31, 2022, which included $5 million in restructuring costs incurred from the disposal of fixed assets related to the write-off of certain assets related to the outsourcing of certain components of contract manufacturing within the Space Infrastructure segment. The restructuring costs for 2022 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 incurred restructuring costs of $2 million and $0 million for the years ended December 31, 2021 and 2020, respectively. |
Long-term debt and interest exp
Long-term debt and interest expense, net | 12 Months Ended |
Dec. 31, 2022 | |
Long-term debt and interest expense, net | |
Long-term debt and interest expense, net | 11. LONG-TERM DEBT AND INTEREST EXPENSE, NET December 31, December 31, 2022 2021 Syndicated Credit Facility: Revolving Credit Facility $ 125 $ — Term Loan B 1,493 1,444 9.75% 2023 Notes — 500 7.75% 2027 Notes 500 — 7.54% 2027 Notes 150 150 Deferred financing 19 26 Obligations under finance leases and other 5 5 Debt discount and issuance costs (98) (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 December 31, 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”). As of December 31, 2022, 2021 and 2020, the Company was in compliance with its debt covenants. On October 5, 2017, in connection with the acquisition of DigitalGlobe, the Company entered into the Syndicated Credit Facility in the aggregate principal amount of $3.75 billion, which was comprised of: (i) a four-year senior secured first lien revolving credit facility, (ii) a four-year senior secured first lien operating facility, (iii) a senior secured first lien term A facility and (iv) the Term Loan B. The net proceeds of the Syndicated Credit Facility were used, along with cash on hand, to consummate the acquisition of DigitalGlobe, to refinance all amounts outstanding under the Company’s existing syndicated credit facility and senior term loans, to repay DigitalGlobe’s outstanding indebtedness, to pay transaction fees and expenses, to fund working capital and for general corporate purposes. On December 21, 2018, the Company amended the Syndicated Credit Facility (“Second Amending Agreement”). The Second Amending Agreement provided that, so long as certain conditions were satisfied (the period during which such conditions are satisfied, the “Covenant Relief Period”) the maximum consolidated debt leverage ratios permitted under the Syndicated Credit Facility were increased and the interest rate incurred by the Company thereunder at certain consolidated debt leverage ratios were increased. The Second Amending Agreement also adjusted the definition of EBITDA for the purpose of calculating the financial ratios under U.S. GAAP. In addition to the above, during the Covenant Relief Period, the Second Amending Agreement restricted the use of certain asset sale proceeds, limited the type of new debt issuances and limited certain restricted payments and permitted acquisitions under the Syndicated Credit Facility. On November 4, 2019, the Company further amended the Syndicated Credit Facility (“Third Amending Agreement”), certain portions of which became effective immediately and certain portions of which became effective in December 2019 upon the issuance of the 2023 Notes. The Third Amending Agreement, during the Covenant Relief Period, (i) modified the priority of the application of certain voluntary prepayments resulting from certain asset sales (but which did not affect the prepayments owed to the Term Loan B), and (ii) restricted use of proceeds of future borrowings. In addition, the Third Amending Agreement increased the maximum consolidated debt leverage ratios permitted under the Syndicated Credit Facility to 7.25x at the end of the fiscal quarter ended December 31, 2019, 7.50x at the end of the fiscal quarter ending March 31, 2020, 7.75x at the end of each fiscal quarter thereafter until the fiscal quarter ending September 30, 2021, 7.50x at the end of each fiscal quarter thereafter until the quarter ending September 30, 2022, 6.50x at the end of each fiscal quarter thereafter until the fiscal quarter ending March 31, 2023, and 5.75x for each fiscal quarter thereafter (subject to a 0.25x reduction in each maximum level upon a disposition of a business line for greater than $500 million). The Third Amending Agreement also extended the maturity of the Revolving Credit Facility by two years to December 2023, updated the Interest Coverage Ratio to be less than 2.0x at the end of each fiscal quarter, restricted investment capacity in certain permitted investments, restricted future increases in quarterly dividend payment levels and modified certain margin and standby fee terms. In addition, the Company canceled the operating credit facility and reduced committed borrowing capacity under the Revolving Credit Facility from $1.25 billion to $500 million. On June 14, 2022, the Company further 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”). The Syndicated Credit Facility is guaranteed by the Company and certain designated subsidiaries (“Subsidiary Guarantors”) of the Company. The security for the Syndicated Credit Facility, subject to customary exceptions, includes substantially all the tangible and intangible assets of the Company and its Subsidiary Guarantors. The Company is required to make mandatory prepayments of the outstanding principal and accrued interest of the Syndicated Credit Facility (i) upon the occurrence of certain events and (ii) to the extent of a specified percentage of annual excess cash flow that is not reinvested or used for other specified purposes. The Syndicated Credit Facility is subject to customary affirmative and negative covenants, default provisions, representations and warranties and other terms and conditions. Term Loan B 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. During the year ended December 31, 2020, the Company repaid $511 million of borrowings under Term Loan B using proceeds from the MDA Transaction. The Company expensed $7 million of unamortized debt issuance costs attributed to the partial pay down, which is included in Interest expense, net in the Consolidated Statements of Operations. On June 14, 2022, in conjunction with the Amended and Restated Credit Facility, 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. Revolving Credit Facility The Revolving Credit Facility includes an aggregate $200 million sub limit under which letters of credit can be issued. As of December 31, 2022 and December 31, 2021, the Company had $24 million and $28 million of issued and undrawn letters of credit outstanding under the Revolving Credit Facility. 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. The Revolving Credit Facility may be repaid by the Company, in whole or in part, together with accrued interest, without premium or penalty. On June 14, 2022, in conjunction with the Amended and Restated Credit Facility, 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 loss on debt extinguishment in Interest expense, net in the Consolidated Statements of Operations. 9.75% Notes due 2023 On December 11, 2019, the Company issued $1.0 billion in aggregate principal amount of 9.75% 2023 Notes. The 9.75% 2023 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 of 1933, as amended. The 9.75% 2023 Notes were issued at a price of 98% and recorded as long-term debt in the Consolidated Financial Statements. The 9.75% 2023 Notes bore interest at the rate of 9.75% per year, payable semi-annually in cash in arrears, which interest payments commenced in June 2020. On June 25, 2020, the Company repurchased $150 million aggregate principal amount of its 9.75% 2023 Notes using proceeds from the MDA Transaction. The 9.75% 2023 Notes were repurchased (“2023 Notes Repurchase”) at a price of approximately 112.45% of the principal amount repurchased. On March 26, 2021, the Company redeemed $350 million aggregate principal amount of its 9.75% 2023 Notes using a portion of the net proceeds from an underwritten offering of 10 million shares of its common stock (“Offering”). The Company paid premiums of approximately $34 million related to the early redemption. This resulted in a loss on debt extinguishment of $41 million that was recorded in the first quarter of 2021, which is included as part of Interest expense, net within the Consolidated Statements of Operations for the year ended December 31, 2021. 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 Consolidated Statement of Operations for the year ended December 31, 2022. 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 guaranteed (“7.75% 2027 Guarantees”) on a senior secured basis by each of the Company’s subsidiaries that are guarantors (“7.75% 2027 Guarantors”) under the Syndicated Credit Facility and its 7.54% 2027 Notes (as defined below). The 7.75% 2027 Notes are secured on a first-priority basis by liens on the Company’s and the 7.75% 2027 Guarantors’ assets that also secure, equally and ratably, the Company’s indebtedness under the Syndicated Credit Facility and the 7.54% 2027 Notes pursuant to the terms of a first lien intercreditor agreement. The 7.75% 2027 Notes and 7.75% 2027 Guarantees will be the Company’s and the 7.75% 2027 Guarantors’ senior secured obligations. The 7.75% 2027 Notes and the 7.75% 2027 Guarantees rank senior in right of payment to any of the Company’s and the 7.75% 2027 Guarantors’ future subordinated indebtedness, will rank equally in right of payment with all of the Company’s and the 7.75% 2027 Guarantors’ existing and future senior indebtedness (including the Syndicated Credit Facility and the Existing Notes), rank equally to all of Company’s and the 7.75% 2027 Guarantors’ existing and future senior secured indebtedness to the extent of the value of the collateral securing such indebtedness be effectively senior to all of Company’s and the 7.75% 2027 Guarantors’ existing and future unsecured indebtedness and all of Company’s and the Guarantors’ existing and future indebtedness secured on a junior basis to the extent of the value of the collateral securing the 7.75% 2027 Notes and the related 7.75% 2027 Guarantees, and will be structurally subordinated to all existing and future liabilities of each of the Company’s existing and future subsidiaries that does not guarantee the 7.75% 2027 Notes. The 7.75% 2027 Notes may be redeemed, in whole or in part, at the Company’s option, at any time during the 12 months beginning on June 15, 2024, at a redemption price of 103.875%, during the 12 months beginning on June 15, 2025, at a redemption price of 101.938%, and at any time on or after June 15, 2026 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company may also redeem up to 40% of the aggregate principal amount of the 7.75% 2027 Notes at any time before June 15, 2024 with the net cash proceeds from certain equity offerings at a redemption price of 107.750% plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. If the Company experiences specific kinds of changes of control, it may be required to offer to purchase the Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding the date of the repurchase. The indenture governing the 7.75% 2027 Notes contains covenants limiting the Company’s and its restricted subsidiaries’ ability to, among other things incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase debt that is junior in right of payment to the 7.75% 2027 Notes; make loans and investments; grant or incur liens; pay dividends, make loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; enter into transactions with affiliates; and consolidate or merge with, or sell substantially all of their assets to, another person. 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. 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 in December 2020. The 7.54% 2027 Notes will mature on December 31, 2027, unless earlier redeemed or repurchased. The Company accounted for the issuance of the 7.54% 2027 Notes and 9.75% 2023 Notes Repurchase as debt modifications. As a result, the 12.45% premium paid on the repurchase of the $150 million aggregate principal amount of 9.75% 2023 Notes is accounted for as an incremental discount that is amortized over the life of the 7.54% 2027 Notes. Separately, the previously incurred unamortized debt discount and debt issuance costs are amortized over the remaining life of the outstanding 9.75% 2023 Notes. The 7.54% 2027 Notes are guaranteed (“7.54% 2027 Guarantees”) on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantees the 9.75% 2023 Notes and the Syndicated Credit Facility (“7.54% 2027 Guarantors”). The 7.54% 2027 Notes are secured, equally and ratably with the 9.75% 2023 Notes, the Syndicated Credit Facility and any future first lien debt, by liens on the same assets that secure the Revolving Credit Facility and Term Loan B. The 7.54% 2027 Notes and the 7.54% 2027 Guarantees are the Company’s general senior secured obligations and rank equally in right of payment with all of the Company’s and the 7.54% 2027 Guarantors’ existing and future unsubordinated debt (including the 9.75% 2023 Notes and the Syndicated Credit Facility). The 7.54% 2027 Notes and the 7.54% 2027 Guarantees are effectively senior to all of the Company’s and the 7.54% 2027 Guarantors’ existing and future unsecured debt as well as to all of any permitted junior lien debt that may be incurred in the future, in each case to the extent of the value of the assets securing the 7.54% 2027 Notes and the 7.54% 2027 Guarantees. The 7.54% 2027 Notes and the 7.54% 2027 Guarantees are effectively subordinated to any obligations that are secured by liens on assets that do not constitute a part of the collateral securing the 7.54% 2027 Notes or the 7.54% 2027 Guarantees, are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 7.54% 2027 Notes, and are senior in right of payment to all of the Company’s and the Guarantors’ existing and future subordinated indebtedness. The 7.54% 2027 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on June 25, 2024, at a redemption price of 105.655%, during the 12 months beginning on June 25, 2025, at a redemption price of 103.770%, and at any time on or after June 25, 2026, at a redemption price of 101.885%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. The Company may also redeem the 7.54% 2027 Notes, in whole or in part, at the Company’s option at any time prior to June 25, 2024, at a price equal to 100% of the principal amount of such 7.54% 2027 Notes plus a “make-whole” premium, together with accrued but unpaid interest, if any, to, but excluding, the date of redemption. In addition, the Company may redeem up to 40% of the aggregate principal amount of the 7.54% 2027 Notes at any time before June 25, 2024, with the net cash proceeds from certain equity offerings at a specified redemption price, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The indenture governing the 7.54% 2027 Notes limits, among other things, the Company’s and the Company’s restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of the Company’s assets to, another person. In the event a change of control occurs (as defined in the indenture governing the 7.54% 2027 Notes), each holder will have the right to require us to repurchase all or any part of such holder’s 7.54% 2027 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 7.54% 2027 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). Leaseback Deferred Financing On December 10, 2019, the Company completed the sale and subsequent leaseback of company owned properties in Palo Alto, California for proceeds of $291 million. The Company determined that the leaseback terms were off-market. In accordance with ASC 842 – Leases, the Company accounted for the excess of the leaseback payments over the present value of market rental payments as additional financing, separate from the lease liability. This resulted in recognition of a deferred financing liability of $33 million, which is repayable over the 10-year leaseback term. This liability was calculated using a weighted average discount rate of 4.62% . The deferred financing liability is recorded as part of Current portion of long-term debt and Long-term debt within the Consolidated Balance Sheets. Refer to Note 9 for additional information. Interest expense, net on long-term debt and other obligations is as follows: Year Ended December 31, 2022 2021 2020 Interest on long-term debt $ 156 $ 144 $ 191 Loss on debt extinguishment 53 41 7 Interest on orbital securitization liability 3 4 5 Imputed interest and other 1 2 2 Interest expense on advance payments from customers — — 3 Capitalized interest (55) (40) (33) Interest expense, net $ 158 $ 151 $ 175 Scheduled minimum debt repayments for the year ended December 31, 2022 are as follows: 2023 2024 2025 2026 2027 Thereafter Total Syndicated Credit Facility Revolving credit facility $ — $ — $ — $ — $ 125 $ — $ 125 Term Loan B 15 15 15 15 15 1,418 1,493 7.75% 2027 Notes — — — — 500 — 500 7.54% 2027 Notes — — — — 150 — 150 Deferred financing 2 2 2 3 3 7 19 Finance leases and other 4 1 — — — — 5 Total principal payments $ 21 $ 18 $ 17 $ 18 $ 793 $ 1,425 $ 2,292 Debt discount and issuance costs (98) Total long-term debt $ 2,194 |
Financial instruments and fair
Financial instruments and fair value disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments and fair value disclosures | |
Financial instruments and fair value disclosures | 12. 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 ASC 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 December 31, 2022 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 392 $ — $ 392 Interest rate swaps — 21 — 21 $ — $ 413 $ — $ 413 Liabilities Long-term debt 2 $ — $ 2,168 $ — $ 2,168 $ — $ 2,168 $ — $ 2,168 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 $351 million and $417 million at December 31, 2022 and December 31, 2021, respectively. See Note 5 regarding the gain on orbital receivables allowance for the year ended December 31, 2021. 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 $2,045 million and $2,055 million as of December 31, 2022 and 2021, respectively. The carrying value of borrowings under the Revolving Credit Facility approximates their fair value. 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 years ended December 31, 2022 or December 31, 2021. |
Derivatives and hedging
Derivatives and hedging | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives and Hedging | |
Derivatives and Hedging | 13. DERIVATIVES AND HEDGING Cash Flow Hedges The Company is exposed to fluctuations in interest rates under the Syndicated Credit Facility. The Company enters into interest rate swap agreements in order to fix the base interest rate to be paid over an aggregate amount of the Company’s variable rate long-term debt. 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 December 31, 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 had no foreign exchange forward contracts at December 31, 2022 or 2021. December 31, 2022 Notional amount Maximum Contract term Derivatives designated as hedging instruments Interest rate swaps $ 1,000 1.5 years December 31, 2021 Notional amount Maximum Contract term Derivatives designated as hedging instruments Interest rate swaps $ 1,000 1.5 years The effective portion of gains included in Other comprehensive income (loss), net of tax related to the Company’s interest rate swaps was $22 million and $19 million for the years ended December 31, 2022 and 2021, respectively. The effective portion of losses included in Other comprehensive income (loss), net of tax related to the Company’s interest rate swaps was $3 million for the year ended December 31, 2020. As of December 31, 2022, the estimated gain included in Accumulated other comprehensive income (loss) expected to be recognized in Net income (loss) in the next twelve months is $19 million. In implementing all its derivative financial instruments, the Company deals with counterparties and is therefore exposed to credit related losses in the event of non-performance by these counterparties. However, the Company deals with counterparties that are major financial institutions and does not expect any of the counterparties to fail to meet their obligations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | 14. 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 Pension and other postretirement plan adjustments Total accumulated other comprehensive income (loss) Balance as of December 31, 2019 $ 126 $ (12) $ (73) $ 41 Other comprehensive loss (47) (3) (43) (93) Reclassification to gain on disposal of discontinued operations 1 (78) (5) 15 (68) Tax benefit (expense) — — — — Balance as of December 31, 2020 $ 1 $ (20) $ (101) $ (120) Other comprehensive (loss) income (2) 19 50 67 Tax benefit (expense) — — — — Balance as of December 31, 2021 $ (1) $ (1) $ (51) $ (53) Other comprehensive (loss) income (1) 22 16 37 Tax benefit (expense) — — — — Balance as of December 31, 2022 $ (2) $ 21 $ (35) $ (16) 1 Relates to the reclassification of foreign currency translation from Accumulated other comprehensive (loss) income to the gain on disposal of discontinued operations due to the completion of the MDA Transaction. See Note 3 for details. On March 22, 2021, the Company completed the 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. As of December 31, 2020, the Company had 2.4 million shares authorized and no shares outstanding of the Series A Preferred Stock. On May 17, 2021, the Company filed a Certificate of Elimination of Series A Junior Participating Preferred Stock with the Delaware Secretary of State, thereby removing the Certificate of Designations of the Series A Preferred Stock from the Company’s Amended and Restated Certificate of Incorporation. Therefore, as of December 31, 2021 and 2022, the Company had no shares authorized and no shares outstanding of the Series A Preferred Stock. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Revenues | 15. REVENUES As of December 31, 2022, the Company had $3,194 million 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 $1,250 million million million Contract liabilities by segment are as follows: As of December 31, 2022 Earth Intelligence Space Infrastructure Total Contract liabilities $ 107 $ 257 $ 364 As of December 31, 2021 Earth Intelligence Space Infrastructure Total Contract liabilities $ 32 $ 257 $ 289 Contract liabilities increased to $364 million as of December 31, 2022 from $289 million as of December 31, 2021. The increase of $75 million in contract liabilities is primarily due to 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 both December 31, 2022 and December 31, 2021. Non-current contract liabilities are included in Other non-current liabilities on the Consolidated Balance Sheets. The Company’s primary sources of revenues are as follows: Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 527 $ — $ 527 Service revenues 1,078 — — 1,078 Intersegment — 99 (99) — $ 1,078 $ 626 $ (99) $ 1,605 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 678 $ — $ 678 Service revenues 1,092 — — 1,092 Intersegment 1 62 (63) — $ 1,093 $ 740 $ (63) $ 1,770 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 633 $ — $ 633 Service revenues 1,081 9 — 1,090 Intersegment — 79 (79) — $ 1,081 $ 721 $ (79) $ 1,723 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 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 cost associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to EAC cost or estimated contractual consideration are recorded as a cumulative catch-up adjustment. The Company recognized a cumulative adjustment to revenue of $92 million and a cumulative catch-up to EAC costs of $3 million for the year ended December 31, 2022, related to the JUPITER 3 amendment and commercial agreement with EchoStar. This resulted primarily from reducing the EAC transaction price for the amount of the remaining milestone and expected orbital payments from EchoStar due to the delay of the expected shipment of JUPITER 3. Additionally, as the Company has not yet identified the scope of goods and/or services to be purchased under the aforementioned commercial agreement, the total $95 million cumulative adjustment includes a $29 million adjustment to revenue and a corresponding cumulative catch-up to EAC costs of $1 million related to these goods and/or services. If at a later date the goods and/or services are identified the reduction to revenue will be adjusted. See Note 5 for additional details regarding the adjustment to trade and other receivables. The Company recognized a cumulative adjustment to revenue of $30 million for the year ended December 31, 2021, related to the Sirius XM contract with Sirius XM Holdings Inc. (“Sirius XM”). This 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. In addition to the cumulative adjustment recognized for the year ended December 31, 2021, incremental costs of $3 million were incurred related to the SXM-7 recovery efforts. See Note 5 for additional details regarding the adjustment to trade and other receivables. 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 $50 million in EAC cost adjustments on loss contracts, including $12 million related to the JUPITER 3 loss contract for the year ended December 31, 2022. The Company recorded $32 million in EAC cost adjustments on loss contracts for the year ended December 31, 2021. The Company recognized revenue from post-launch services within the Space Infrastructure segment of $24 million, $27 million and $30 million for the years ended December 31, 2022, 2021 and 2020, respectively, which is included in product revenues. The approximate revenue based on geographic location of customers is as follows: Year Ended December 31, 2022 2021 2020 United States $ 1,315 $ 1,431 $ 1,406 Asia 95 97 96 Europe 65 80 84 Middle East 57 54 54 Australia 43 70 37 Canada 16 10 10 South America 5 17 25 Other 9 11 11 Total revenues $ 1,605 $ 1,770 $ 1,723 Revenues from significant customers is as follows: Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 722 $ 230 $ — $ 952 Commercial and other 356 396 (99) 653 Total revenues $ 1,078 $ 626 $ (99) $ 1,605 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 701 $ 235 $ — $ 936 Commercial and other 392 505 (63) 834 Total revenues $ 1,093 $ 740 $ (63) $ 1,770 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 774 $ 288 $ — $ 1,062 Commercial and other 307 433 (79) 661 Total revenues $ 1,081 $ 721 $ (79) $ 1,723 The Company had revenues from a commercial customer in the Space Infrastructure segment that represented 12%, 19% and 11% of total revenues for the years ended December 31, 2022, 2021 and 2020, respectively. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2022 | |
Segment information | |
Segment information | 16. 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, amortization of deferred ERP implementation costs 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: Year Ended December 31, 2022 2021 2020 Revenues: Earth Intelligence $ 1,078 $ 1,093 $ 1,081 Space Infrastructure 626 740 721 Intersegment eliminations (99) (63) (79) Total revenues $ 1,605 $ 1,770 $ 1,723 Adjusted EBITDA: Earth Intelligence $ 445 $ 492 $ 513 Space Infrastructure (32) 46 (3) Intersegment eliminations (36) (25) (27) Corporate and other expenses (91) (89) (61) Restructuring (18) (2) — Offset obligation fulfillment (12) — — Transaction and integration related expense (6) (1) (7) Amortization of deferred ERP implementation costs (2) — — (Loss) gain on remeasurement of equity interest 1 (1) — 85 Gain (loss) on orbital receivables allowance — 49 (14) Impairment loss — — (33) Insurance recovery 2 — 1 — Loss on sale of assets — — (1) Depreciation and amortization (239) (290) (348) Interest expense, net (158) (151) (175) Interest income 3 2 3 3 Equity in income from joint ventures, net of tax — — (1) (Loss) income from continuing operations before taxes $ (148) $ 33 $ (69) 1 As a result of the Vricon Acquisition during the year ended December 31, 2020, the Company was required to remeasure its previously held equity interest in Vricon at its acquisition date fair value which resulted in a gain of $85 million. The (Loss) gain on remeasurement of equity interest is included in Other expense (income), net on the Consolidated Statements of Operations. 2 Insurance recovery is included in Other expense (income), net on the Consolidated Statement of Operations. 3 Interest income is included in Other expense (income), net on the Consolidated Statements of Operations. The Company’s capital expenditures are as follows: Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 148 $ 17 $ 61 $ 226 Intangible assets 88 — 5 93 $ 236 $ 17 $ 66 $ 319 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 79 $ 16 $ 40 $ 135 Intangible assets 87 — 12 99 $ 166 $ 16 $ 52 $ 234 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 147 $ 21 $ 53 $ 221 Intangible assets 79 1 7 87 $ 226 $ 22 $ 60 $ 308 Substantially all of the Company’s long-lived tangible assets were in the United States as of December 31, 2022, 2021 and 2020. |
Impairment losses
Impairment losses | 12 Months Ended |
Dec. 31, 2022 | |
Impairment Losses | |
Impairment Losses | 17. IMPAIRMENT LOSSES There were no impairment losses recognized for the year ended December 31, 2022 or 2021. For the year ended December 31, 2020, the Company recognized an impairment loss of $33 million within the Earth Intelligence segment related to the write-off of a prepaid asset with a commercial provider of ground station services under a contract which was above current market value. In December 2020, the Company executed a new multi-year contract with the provider for services at reduced cost. As a result of the prior contract being terminated and the new contract being at market value, the Company concluded the remaining prepaid asset from the prior contract with the provider had no continuing value. For the year ended December 31, 2020, the Company recognized an orbital receivable impairment loss of $14 million, within the Space Infrastructure segment primarily due to a decrease in customer credit ratings. See Note 5 for details related to the reversal of the orbital receivables allowance. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Employee benefit plans | 18. EMPLOYEE BENEFIT PLANS Defined contribution plan The Company maintains a defined contribution plan for some of its employees in the U.S., whereby the Company pays contributions based on a percentage of the employees’ annual salary. For the years ended December 31, 2022, 2021 and 2020, the Company recorded expense of $21 million, $19 million and $16 million, respectively, related to the plan. Pension and other postretirement benefit plans The Company maintains a defined benefit pension plan covering a portion of its employees within the Space Infrastructure segment. The pension and other postretirement plan benefits were frozen on December 31, 2013. The defined benefit plan provides pension benefits based on various factors including prior earnings and length of service. The defined benefit plan is funded and the Company’s funding requirements are based on the plans’ actuarial measurement framework as established by the plan agreements or applicable laws. The funded plans’ assets are legally separated from the Company and are held by an independent trustee. The trustee is responsible for ensuring that the funds are protected as per applicable laws. The Company also provides for other postretirement benefits, comprised of life insurance covering a portion of its employees within the Space Infrastructure segment. The cost of these benefits is primarily funded out of Operating income. The table below summarizes changes in the benefit obligation, the fair value of plan assets and funded status for the Company’s pension and other postretirement benefit plans, as well as the aggregate balance sheet impact. Pension Other Postretirement 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 585 $ 624 $ 13 $ 14 Service cost 3 3 — — Interest cost 14 14 — — Actuarial (gains) losses (125) (23) (2) (1) Benefits paid (33) (33) (1) — Benefit obligation at end of year $ 444 $ 585 $ 10 $ 13 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 462 $ 444 $ — $ — Actual return on assets (83) 51 — — Employer contributions 1 1 1 — Benefits paid (31) (31) (1) — Expenses paid (3) (3) — — Fair value of plan assets at end of year 346 462 — — Unfunded status at end of year $ (98) $ (123) $ (10) $ (13) Liabilities recognized in the Consolidated Balance Sheets: Accrued compensation and benefits $ (1) $ (1) $ (1) $ (1) Pension and other postretirement benefits (97) (122) (9) (12) $ (98) $ (123) $ (10) $ (13) The $141 million decrease in the pension benefit obligation from 2021 to 2022 was primarily due to the increase in the discount rate. The $116 million decrease in the fair value of plan assets from 2021 to 2022 was primarily due to the return on assets. The accumulated benefit obligation for the defined pension benefit plans was $444 million and $585 million at December 31, 2022 and 2021, respectively. The following table provides the net pension and other postretirement benefits recognized in Accumulated other comprehensive (loss) income at December 31: Pension Other Postretirement 2022 2021 2022 2021 Net (loss) gain $ (45) $ (60) $ 10 $ 9 The following table summarizes the weighted average assumptions used to determine the benefit obligations for the Company’s pension and other postretirement plans at December 31: Pension Other Postretirement 2022 2021 2022 2021 Discount rate 4.9 % 2.6 % 4.9 % 2.6 % The following table summarizes the components of net periodic benefit cost for the Company’s pension and other postretirement benefit plans for the years ended December 31: Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Interest cost $ 14 $ 14 $ 17 $ — $ 1 $ — Expected return on plan assets (29) (29) (24) — — — Amortization of net loss (gain) — 6 1 (1) (1) — Settlement gain — — — — — (4) Expenses paid 3 3 2 — — — Net periodic benefit $ (12) $ (6) $ (4) $ (1) $ — $ (4) The following table summarizes the components recognized in Other comprehensive (income) loss for the Company’s pension and other postretirement benefit plans for the years ended December 31: Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Net (gain) loss $ (14) $ (44) $ 40 $ (3) $ (1) $ 4 Amortization of net (loss) gain — (6) (1) 1 1 — Total recognized in other comprehensive (income) loss $ (14) $ (50) $ 39 $ (2) $ — $ 4 Total recognized in net periodic benefit credit and other comprehensive (income) loss $ (26) $ (56) $ 35 $ (3) $ — $ — The following table summarizes the weighted average assumptions used to determine the net periodic benefit cost for the Company’s pension and other postretirement benefit plans for the years ended December 31: Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Discount rate 2.6 % 2.2 % 3.0 % 2.6 % 2.2 % 3.0 % Expected long-term return on plan assets 6.5 % 6.5 % 6.5 % N/A N/A N/A The expected long-term return on plan assets assumption represents the average rate that the Company expects to earn over the long-term on the assets of the Company’s benefit plans, including those from dividends, interest income and capital appreciation. The Company utilizes a third-party consultant to assist in the development of the expected long-term return on plan assets, which is based on expectations regarding future long-term rates of return for the plans’ investment portfolio, with consideration given to the allocation of investments by asset class and historical rates of return for each individual asset class. Plan Assets. The Committee has established a target allocation that the plan assets may be invested in for each major asset category and has established guidelines regarding diversification within asset categories to limit risk and exposure to a single or limited number of securities. The investment manager is required to rebalance the portfolio within two percentage points for any individual asset or combination of assets defined within policy targets. Asset allocation targets are re-balanced quarterly and re-assessed annually for the upcoming year. The investments of the plan include a diversified portfolio of both equity and fixed income investments. Equity investments are further diversified across U.S. and international stocks, small to large capitalization stocks and growth and value stocks. Fixed income assets are diversified across U.S. and international issuers, corporate and governmental issuers and credit quality. The following table presents a summary of target asset allocations for each major category of the plan assets as well as the actual asset allocations at December 31, 2022: Asset Allocation Target Actual Cash and cash equivalents — % 1 % U.S. and global equity securities 71 % 71 % Fixed income 29 % 28 % 100 % 100 % Cash and cash equivalents consist of cash and short-term investments. U.S. and global equity securities, fixed income and other investment assets are primarily commingled fund investments. The pension plans’ commingled fund investments are managed by several fund managers and are valued at the net asset value per share for each fund. Although the majority of the underlying assets in the funds consist of actively traded equity securities and bonds, the unit of account is considered to be at the fund level . These funds are traded daily and settled the following day at the net asset value per share. The Committee regularly monitors the investment of plan assets to ensure that the actual asset allocation remains in proximity to the target. The Committee also regularly measures and monitors investment risk through ongoing performance reporting and investment manager reviews. The following table presents the fair value of the Company’s pension plan assets by asset category segregated by level within the fair value hierarchy, as described below: December 31, 2022 December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3 $ — $ — $ 3 $ 3 $ — $ — $ 3 Commingled funds 1 343 459 Total assets at fair value $ 3 $ — $ — $ 346 $ 3 $ — $ — $ 462 1 Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy table. The total fair value of these amounts are presented in this table to permit reconciliation of the fair value hierarchy to the amounts presented for total defined benefit pension plan assets. Contributions. The American Rescue Plan Act of 2021 (“ARPA Act”) was enacted on March 11, 2021 in the United States. The ARPA Act includes provisions for pension funding relief in future periods. The Company has elected to take advantage of these provisions and anticipates lower required contributions for the qualified pension plan in the upcoming fiscal years. Due to the Company’s election, are no required contributions for the Company’s qualified pension plan for the year ending December 31, 2023. Estimated Future Benefit Payments. 2023 2024 2025 2026 2027 2028 through 2032 Pension $ 32 $ 32 $ 32 $ 33 $ 33 $ 158 Other postretirement 1 1 1 1 1 4 $ 33 $ 33 $ 33 $ 34 $ 34 $ 162 |
Stock-based compensation plans
Stock-based compensation plans | 12 Months Ended |
Dec. 31, 2022 | |
Stock-based compensation plans | |
Stock-based compensation plans | 19. STOCK-BASED COMPENSATION PLANS The Company’s stock-based compensation plans were established to attract and retain key personnel by providing them the opportunity to acquire an equity interest in the Company or other incentive compensation measured by reference to the value of shares or other performance objectives and align the interests of key personnel with those of stockholders. Long-Term Incentive Plans Omnibus Equity Incentive Plan – directors. 1,100,000 shares were reserved for issuance under the Omnibus Plan. The Omnibus Plan has a term of ten years and shares may be issued by the Company from treasury. As of December 31, 2019, no further awards shall be granted under the Omnibus Plan. 2019 Incentive Award Plan – Deferred Stock Unit Plan – Maxar Technologies Inc. Employee Stock Purchase Plan – DigitalGlobe Equity Plan – Stock Appreciation Rights Certain awards issued under the 2017 Plan and Omnibus Plan remain outstanding as of December 31, 2022. The SARs issued 2017 one from SARs Accounted for as Liability and Equity Classified Awards A summary of the SARs accounted for as liability and equity classified awards for the year ended December 31, 2022 is presented below: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic awards price term (in years) value SARs outstanding at December 31, 2021 921,136 $ 51.13 Exercised (17,400) 48.91 Expired (38,717) 49.07 SARs outstanding at December 31, 2022 865,019 51.27 4.29 $ 2,204,569 SARs vested at December 31, 2022 865,019 51.27 4.29 $ 2,204,569 SARs exercisable at December 31, 2022 865,019 $ 51.27 4.29 $ 2,204,569 No SARs were granted during the years ended December 31, 2022, 2021 or 2020. There were 17,400 SARs exercised during the year ended December 31, 2022. There were 20,450 SARs exercised during the year ended December 31, 2021. There were no SARs exercised in during the year ended December 31, 2020. There were 39,070 liability and 825,949 equity classified awards outstanding as of December 31, 2022. As of December 31, 2022, there is no unrecognized compensation expense related to nonvested SARs as they have all vested. Restricted Share Units The Company issues RSUs to certain employees under the 2019 Plan. The RSUs vest over a period of either three years, in the amount of one RSUs Accounted for as Liability Classified Awards There were no RSU liability classified awards granted during the year ended December 31, 2022 or 2021. During the fourth quarter of 2020, the Company modified its outstanding 532,365 RSUs accounted for as liability classified awards to be equity settled on the vesting date. This modification resulted in an incremental share-based compensation expense of $3 million on the modification date and affected 37 employees. As a result of the modification, there were no remaining outstanding nonvested RSU liability classified awards as of December 31, 2020. For the year ended December 31, 2020, the Company paid $4 million for the vesting of RSUs accounted for as liability classified awards. RSUs Accounted for as Equity Classified Awards As part of the acquisition of DigitalGlobe, the Company provided replacement RSUs for a certain portion of the unvested RSUs previously granted to DigitalGlobe employees under the DigitalGlobe Equity Plan. The remaining replacement RSUs fully vested in 2021. A summary of the status of the Company’s nonvested RSU awards under the 2019 Plan and Omnibus Plan as of December 31, 2022 and changes for the year ended December 31, 2022 is presented below: Weighted Weighted average average Number of grant date Number of grant date awards 1 fair value 1 awards 2 fair value 2 Nonvested RSUs at December 31, 2021 2,299,133 $ 24.15 24,938 $ 3.99 Granted 1,160,014 28.06 — — Vested (1,302,113) 21.79 (24,938) 3.99 Cancelled (239,578) 27.00 — — Nonvested RSUs at December 31, 2022 1,917,456 $ 27.76 — $ — 1 RSUs under the 2019 Plan 2 RSUs under the Omnibus Plan During the years ended December 31, 2022, 2021, and 2020, the total fair value of RSUs that vested was $28 million, $20 million and $14 million, respectively. During the year ended December 31, 2022, there were 1,327,051 RSU awards that vested. As of December 31, 2022, total unrecognized compensation expense related to nonvested RSUs was $17 million and is expected to be recognized over a weighted average remaining period of 0.9 years. Performance Share Units The Company issues PSUs to certain employees under the Omnibus Plan and 2019 Plan. The PSUs vest over a period of three years from the beginning date of a pre-determined performance period to the extent the Company has met its adjusted cash leverage (“ACL”) and total shareholder return (“TSR”) performance criteria during the performance period. Each unit has the ability to earn up to two common shares and the total number of shares earned is based upon both the ACL and TSR, which compares the Company's relative TSR performance against the total shareholder return of the Russell 2000 index over the term of the award. Performance related to both the ACL and TSR can be 0-200%. The total payout is the average of the ACL and TSR and the maximum payout percentage for all PSUs granted by the Company is 200%. For PSUs granted in 2019, the payout for performance at 100% was settled in equity and the performance greater than 100% was paid in cash. The final tranche of the PSUs granted in 2019 vested in the first quarter of 2022. For PSUs granted in 2022, 2021 and 2020, the payout for performance has been or will be settled completely in equity. A summary of the PSU awards for the year ended December 31, 2022 is presented below: Weighted average Number of grant date awards fair value Nonvested PSUs at December 31, 2021 903,565 $ 20.42 Granted 266,294 31.84 Performance adjustment 125,274 31.84 Vested (700,526) 10.70 Cancelled or expired (13,567) 37.65 Nonvested PSUs at December 31, 2022 581,040 $ 37.13 The Company paid $16 million, $8 million and $3 million from the vesting of PSUs for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, total unrecognized compensation expense related to nonvested PSUs was $7 million and is expected to be recognized over a weighted average remaining period of 1.2 years. Deferred Share Units A summary of the DSU awards for the year ended December 31, 2022 is presented below: Weighted average Number of issuance awards price DSUs outstanding at December 31, 2021 32,895 C$ 56.01 Issued — — Redeemed — — DSUs outstanding at December 31, 2022 32,895 C$ 56.01 1 There were no DSUs redeemed for the years ended December 31, 2022 and 2021. The total intrinsic value of redeemed DSUs was not material during the year ended December 31, 2020. There were 32,715 DSUs redeemed for the year ended December 31, 2020. Expense related to DSUs is recognized based on the grant date fair value at the time they are issued and subsequently remeasured for incremental expense based on the closing price of the Company’s stock price. There were no DSUs issued for the years ended December 31, 2022 or 2021. Stock-based compensation expense The following table presents stock-based compensation expense included in the Company’s Consolidated Statements of Operations: Year Ended December 31, Classification 2022 2021 2020 Stock-based compensation expense Selling, general, and administrative expense, Product costs, and Service costs $ 48 $ 45 $ 43 Valuation of stock-based compensation awards Valuation of Liability Classified SARs The fair value of liability classified SARs were estimated at each reporting period using the Black-Scholes option pricing model. There were no liability classified SARs granted for the years ended December 31, 2022, 2021 and 2020. Valuation of Equity Classified SARs and DSUs The fair value of equity classified SARs and DSUs are estimated on the date of the grant or the date of accounting reclassification using the Black-Scholes option pricing model. There were no equity classified SARs or DSUs granted for the years ended December 31, 2022, 2021 and 2020. Valuation of PSUs and RSUs The fair value of PSUs not subject to a market condition (ACL) and equity classified RSUs is determined based on the closing price of the Company’s common stock on the grant date. PSUs that are subject to the market condition (TSR) are valued using a Monte Carlo simulation model, which requires certain assumptions, including the risk-free interest rate, expected volatility and the expected term of the award. The risk-free interest rate used in the Monte Carlo simulation model is based on zero-coupon yields implied by U.S. Treasury issues with remaining terms similar to the performance period on the PSUs. The performance period of the PSUs represents the period of time between the PSU grant date and the end of the performance period. Expected volatility is based on historical data of the Company and peer companies over the most recent time period equal to the performance period. For PSU grants during the years ended December 31, 2022, 2021 and 2020 the assumptions used in the Monte Carlo simulations are as follows: Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.7 - 3.8 % 0.3 % 0.9 % Dividend yield 0.1 - 0.2 % 0.1 % 0.3 % Volatility 71 - 86 % 98 - 104 % 79 % Expected lives (in years) 2.3 - 2.9 2.6 - 2.8 2.8 The risk-free interest rate for 2022, 2021 and 2020 is based on the U.S. Treasury yield with the remaining term equal to the expected life assumed at the date of the grant. The dividend yield is based on the expected annual dividend yield at date of grant. The expected lives are based on the Company’s actual historical exercise experience. Volatility is calculated using a rate based upon the historical volatility of the Company’s common stock. Forfeitures are estimated at the time of grant based upon historical information. Forfeitures will be revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Income taxes | 20. INCOME TAXES The amounts disclosed within the income tax footnote represent those attributable to continuing operations. The components of (loss) income before income taxes were: Year Ended December 31, 2022 2021 2020 U.S. $ (154) $ 25 $ (69) Non-U.S. 6 8 — (Loss) income before taxes $ (148) $ 33 $ (69) Income tax expense (benefit) is comprised of the following: Year Ended December 31, 2022 2021 2020 Current tax expense (benefit) Federal $ — $ (12) $ (5) State 1 (1) — Non-U.S. — 1 — 1 (12) (5) Deferred tax expense (benefit) Federal — (1) (17) State — — — Non-U.S. 1 — — 1 (1) (17) Income tax expense (benefit) $ 2 $ (13) $ (22) A reconciliation of the U.S. federal tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2022 2021 2020 U.S. statutory income tax rate 21 % 21 % 21 % Expected income tax (benefit) expense at statutory rate $ (31) $ 7 $ (14) State tax (net of federal benefit) 1 (1) — Non-deductible expenses 3 2 2 Change in valuation allowance 38 (10) 49 Base Erosion and Anti-Abuse Tax — (13) (5) Outside basis difference in assets held for sale — — (39) Tax credits (11) 1 (3) Stock-based compensation 2 1 6 Remeasurement of Vricon equity interest — — (18) Income tax expense (benefit) $ 2 $ (13) $ (22) Effective income tax rate (1) % (39) % 32 % Significant components of deferred tax assets and liabilities are as follows: Year Ended December 31, 2022 2021 2020 Tax benefit of losses carried forward $ 108 $ 153 $ 209 Interest expense carried forward 42 32 — Tax credits 96 81 84 Trade and other payables 29 41 35 Employee benefits 34 41 52 Unrealized gains and losses (3) 3 20 Leasing transactions 46 51 55 Capitalized research and experimental expenditures 36 — — Other — — 1 Deferred tax assets 388 402 456 Valuation allowance (256) (215) (228) Deferred tax assets, net of valuation allowance 132 187 228 Construction contract liabilities (7) (5) (10) Property, plant and equipment (26) (64) (72) Goodwill and intangibles (67) (81) (106) Leasing transactions (32) (35) (38) Deferred tax liabilities (132) (185) (226) Deferred tax assets, net $ — $ 2 $ 2 The Company assesses the deferred tax assets for recoverability and based upon all available evidence, establishes a valuation allowance to reduce the deferred tax assets to the amount that is more-likely-than-not realizable. The valuation allowance increased $41 million from December 31, 2021 to December 31, 2022. This increase was primarily due to the impact of current year operations. As of December 31, 2022, the Company has approximately $310 million, $875 million, and $4 million of federal, state and non-U.S. net operating loss (“NOL”) carryforwards. The following table summarizes the NOL carryforwards by jurisdiction: Expiration Period Year Ended December 31, 2022 Federal 2037 $ 63 None 247 State 2025 - 2040 737 None 138 Non-U.S. None 4 The Company also has U.S. federal and state research and development tax credits, net of unrecognized tax benefits, carried forward of $84 million and $12 million, respectively, as of December 31, 2022. These federal research and development credits are set to expire between 2022 and 2041 and the state research and development tax credits have no expiration. Additionally, the Company has U.S. foreign tax credits carried forward of $1 million set to expire between 2023 and 2026. The Company has evaluated its tax positions and has determined that it has certain unrecognized tax benefits. Accordingly, the Company has reduced certain tax attributes to the extent they would be utilized to offset an unrecognized tax benefit. The following table summarizes the changes in unrecognized tax benefits: Year Ended December 31, 2022 2021 2020 Balance, beginning of year $ 17 $ 9 $ 7 Gross increases related to prior period tax positions — 7 2 Gross increases related to current period tax positions 2 1 1 Gross decreases related to prior period tax positions — — (1) Balance, end of year $ 19 $ 17 $ 9 As of December 31, 2022, there were $19 million of unrecognized tax benefits that, if recognized, would be offset by changes in the deferred tax assets. It is not anticipated that a material increase or reduction of unrecognized tax benefits will occur within the next twelve months. The Company records interest and penalties accrued or recovered in relation to unrecognized tax benefits in income tax expense. The Company has not recognized any interest and penalties in the three-year comparative period due to available tax attributes. The Company and its subsidiaries file income tax returns in the United States and various foreign jurisdictions. The only examination we are involved with is the State of Pennsylvania for tax years ended December 31, 2019, 2020 and 2021. The Company is open to federal and state income tax examinations until the applicable statute of limitations expires, generally three years after tax return filing; however, the ability for the taxing authority to adjust tax attribute carryforwards will continue until generally three years after tax attribute utilization. |
Net (loss) income per common sh
Net (loss) income per common share | 12 Months Ended |
Dec. 31, 2022 | |
Net (loss) income per common share | |
Net (loss) income per common share | 21. NET (LOSS) INCOME PER COMMON SHARE The following table includes the calculation of basic and diluted net (loss) income per common share: Year Ended December 31, 2022 2021 2020 (Loss) income from continuing operations $ (150) $ 46 $ (46) Income from discontinued operations, net of tax — — 349 Net (loss) income $ (150) $ 46 $ 303 Weighted average number of common shares outstanding-basic 74.0 70.6 60.7 Weighted dilutive effect of equity awards — 2.6 — Weighted average number of common shares outstanding-diluted 74.0 73.2 60.7 Basic net (loss) income per common share: (Loss) income from continuing operations $ (2.03) $ 0.65 $ (0.76) Income from discontinued operations, net of tax — — 5.75 Basic net (loss) income per common share $ (2.03) $ 0.65 $ 4.99 Diluted net (loss) income per common share: (Loss) income from continuing operations $ (2.03) $ 0.63 $ (0.76) Income from discontinued operations, net of tax — — 5.75 Diluted net (loss) income per common share $ (2.03) $ 0.63 $ 4.99 The weighted average number of common shares outstanding for the year ended December 31, 2021 includes 10 million shares of the Company’s common stock issued in connection with the Offering completed on March 22, 2021. See Note 14 for further details. For the years ended December 31, 2022, 2021 and 2020 approximately 3 million, 1 million and 4 million 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 | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 22. 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 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 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 Consolidated Balance Sheets and a $12 million expense within Other expense (income), net on the Company’s Consolidated Statements of Operations. In the fourth quarter of 2022, the Company made its first payment towards the $12 million offset obligation in the amount of $4 million. As of December 31, 2022 the remaining offset obligation balance to be settled included a short-term liability of $4 million to be paid during 2023 and a long-term liability of $4 million to be paid in early 2024. 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. consolidated complaint alleges that the Company’s statements regarding the AMOS-8 contract, accounting for its GEO communications assets, and WorldView-4 were allegedly false and/or misleading during the class period. On September 11, 2020, the court granted in part, and denied in part, defendants’ motion to dismiss. On July 16, 2021, the court in the Colorado Action certified a class consisting of investors who purchased or acquired Maxar stock between May 9, 2018 and October 30, 2018, inclusive. The parties have reached an agreement to resolve the action on a class-wide basis for a one-time payment of $27 million, to be funded by insurance maintained by Maxar. The Company recorded a liability of $27 million within Other current liabilities and an asset within Other current assets on the Company’s Consolidated Balance Sheet. The agreement is contingent on Court approval. As part of the Court approval process, class members will have an opportunity to object to, or opt-out of, the settlement pursuant to procedures to be established by the Court. In January 2019, a Maxar stockholder resident in Canada issued a putative class action lawsuit captioned Charles O’Brien v. Maxar Technologies Inc. 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. In connection with the Merger Agreement, one complaint has been filed as an individual action in the United States District Court for the Southern District of New York and two complaints have been filed as individual actions in the United States District Court for the District of Colorado. The complaints are captioned as follows: (1) O’Dell v. Maxar Technologies Inc., et al., 23-cv-00929 (filed February 3, 2023); (2) Johnson v. Maxar Technologies Inc., et al., 23-cv-00383 (filed February 9, 2023); and (3) Zaczkiewicz v. Maxar Technologies Inc., et al., 23-cv-00401 (filed February 10, 2023) (collectively referred to as the “Complaints”). The Complaints generally allege that the preliminary proxy statement filed by Maxar on January 31, 2023 in connection with Merger Agreement (the “Preliminary Proxy”) misrepresents and/or omits certain purportedly material information. The Complaints assert violations of Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder against Maxar and the members of the Maxar Board of Directors. The Complaints seek, among other things: an injunction enjoining the consummation of the transactions; rescission or rescissory damages in the event the transactions are consummated; direction that the defendants comply with the Exchange Act and disseminate a revised Preliminary Proxy; direction that defendants account for all damages suffered as a result of any misconduct; costs of the action, including plaintiffs’ attorneys’ fees and experts’ fees; and other relief the court may deem just and proper. In addition to the Complaints, starting on February 6, 2023, purported stockholders of Maxar sent demand letters (the “Demands,” and together with the Complaints, the “Matters”) alleging similar deficiencies regarding the disclosures made in the Preliminary Proxy. One such letter additionally seeks corporate books and records in order to investigate alleged wrongdoing by Maxar’s Board of Directors, executive officers, and/or financial advisors in connection with the Merger Agreement. Maxar cannot predict the outcomes of the Matters. Maxar management believes that the Matters are without merit and intends to vigorously defend against the Matters and any subsequent demands or filed actions. If additional similar complaints are filed or demands sent, absent new or significantly different allegations, Maxar will not necessarily disclose such additional filings or demands. 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 | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental cash flow | |
Supplemental cash flow | 23. SUPPLEMENTAL CASH FLOW Selected cash payments and non-cash activities are as follows: Year Ended December 31, 2022 2021 2020 Supplemental cash flow information: Cash paid for interest $ 140 $ 133 $ 205 Income tax (refunds), net of payments (3) (14) 1 Supplemental non-cash investing and financing activities: Accrued capital expenditures 21 14 13 Portion of Term Loan B accounted for as a debt modification 103 — — |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Basis of preparation | Basis of preparation The Consolidated Financial Statements include the accounts of Maxar Technologies Inc., and all consolidated subsidiary entities. The Company’s 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. All intercompany balances and transactions are eliminated on consolidation. The Company's 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. Unless otherwise indicated, amounts provided in the Notes to the Consolidated Financial Statements pertain to continuing operations (See Note 3 for information on discontinued operations). |
Use of estimates, assumptions and judgments | Use of estimates, assumptions and judgments The preparation of the 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. |
Leases | Leases The Company has both operating and finance leases. The majority of the Company’s leases are operating leases related to buildings. The Company’s finance leases are primarily related to equipment. The Company determines if a contract is or contains a lease at inception based on whether it conveys the right to control the use of an identified asset. The Company recognizes lease liabilities and right-of-use assets based on the present value of the future minimum lease payments over the lease term at the commencement date. Right-of-use assets are adjusted for any prepayments, lease incentives received and initial direct costs incurred. If the rate implicit in the lease is not readily determinable, the Company’s incremental borrowing rate with a similar term to the lease term is used to determine the present value of future payments and appropriate lease classification. The lease term includes renewal options that are reasonably certain to be exercised. The Company elected the practical expedient not to separate lease and non-lease components. The Company also elected to include in minimum lease payments any executory costs that are part of the fixed lease payment. Some of the Company’s building lease agreements contain incentives for leasehold improvements. If the leasehold improvement has been determined to be owned by the lessee, the Company generally recognizes an incentive received at or before the commencement date as a reduction to the right-of-use asset. Incentives receivable at commencement that are probable of being received and within the Company’s control are included in the measurement of the lease liability and right-of-use asset. The Company uses the date of initial possession as the commencement date, which is generally when the Company has been given rights to access the space. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets and are recognized as lease expense on a straight-line basis in the Consolidated Statements of Operations. Certain leasing arrangements require variable payments, such as insurance and tax payments. Variable lease payments that do not depend on an index or rate are excluded from lease payments in the measurement of the right-of-use asset and lease liability and are recognized as expense in the period in which the payment occurs. The Company does not have any material restrictions or covenants in our lease agreements, sale leaseback transactions or residual value guarantees. The Company recognizes fixed lease expense for operating leases on a straight-line basis |
Business combinations and divestitures | Business combinations and divestitures Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. The excess of the consideration over the fair value of the identifiable net assets acquired is recorded as goodwill. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale. The results of discontinued operations are reported in Income from discontinued operations, net of tax in the Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. Assets and liabilities of a discontinued operation are reported separately in the Consolidated Balance Sheets as held for sale and classified as either current or non-current in the prior periods. If it is probable that the sale will occur and proceeds will be collected within one year of meeting the held for sale criteria both assets and liabilities classified as held for sale are reported in the current period Consolidated Balance Sheet as current. |
Foreign currency | Foreign currency Assets and liabilities of non-U.S. subsidiaries that operate in local currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments, net of tax, recorded in Accumulated other comprehensive income (loss) within the Stockholders’ equity section of the Consolidated Balance Sheets. Income and expense accounts are translated at average monthly exchange rates during the year. |
Revenue recognition | Revenue recognition Revenue is recognized in accordance with the five-step model set forth by Accounting Standards Codification (“ASC”) 606, which involves identification of the contract(s), identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations and recognition of revenue as the performance obligations are satisfied. Revenue is measured at the fair value of consideration received or receivable, net of discounts as of the date of the transaction. When consideration received from customers includes advance payments that contain a financing element, the Company imputes interest on such advance payments and recognizes such amounts as a component of revenue. Contract costs generally include direct costs such as materials, labor and subcontract costs. Costs are expensed as incurred except for incremental costs incurred to obtain or fulfill a contract, which are capitalized and amortized on a systematic basis consistent with the transfer of goods or services to the customer to which the capitalized costs relate. As of December 31, 2022 and 2021, current costs to obtain or fulfill a contract were $13 million and $8 million, respectively, and are included in Other current assets within the Consolidated Balance Sheets. As of December 31, 2022 and 2021, non-current costs to obtain or fulfill a contract were $42 million and $47 million, respectively, and are included in Other non-current assets within the Consolidated Balance Sheets. Space Infrastructure 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. Variable consideration is included in the Company’s estimates to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company estimates variable consideration as the most likely amount to which it expects to be entitled. 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 cost associated with the design, manufacture and delivery of products and services are used in determining the EAC. Changes to EAC cost or estimated contractual consideration are recorded as a cumulative catch-up adjustment. Satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price is contingent upon in-orbit performance of the satellite. These performance incentives are structured in two forms. As a warranty payback, the customer pays the entire amount of the performance incentive during the period of the satellite construction and such incentives are subject to refund if satellite performance does not achieve certain predefined operating specifications. As an orbital receivable, the customer makes payment of performance incentives over the in-orbit life of the satellite. Performance incentives, whether warranty payback or orbital receivables, are included in revenue during the construction period to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. A portion of performance incentives may be allocated to services in the post-launch period if a separate performance obligation for such services has been determined to exist within the contract. In addition to the in-orbit performance incentives, satellite construction contracts may include liquidated damages clauses. Liquidated damages can be incurred 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 related to liquidated damages result in a reduction of revenue recognized and are recorded in the period in which, based on available facts and circumstances, management believes it is probable that liquidated damages will be incurred and enforced. Construction contracts have termination clauses. If a contract is terminated for convenience by a customer, the Company is typically entitled to costs incurred plus a reasonable profit. Earth Intelligence Revenue in the Earth Intelligence segment is generated from imagery and geospatial intelligence service contracts. Revenue from imagery service contracts is recognized based on satellite capacity made available to the customer in a particular period, when imagery is delivered to the customer, or ratably over the subscription period. Many of our imagery service contracts relate to the transfer of a series of distinct goods or services over time for which management has determined are a single performance obligation. Electro-Optical Commercial Layer Program – On May 25, 2022, the Company was awarded the Electro-Optical Commercial Layer contract (“EOCL Contract”) by the National Reconnaissance Office (“NRO”). The EOCL Contract transitioned the capacity requirements, previously addressed by the EnhancedView Contract and, with this award, replaces the scope of the EnhancedView Contract with respect to such requirements. The EOCL Contract includes one performance obligation to deliver a certain amount of capacity to the U.S. government over a 5-year base contractual term beginning on June 15, 2022 and up to five 1-year option periods. Revenue is recognized as capacity is provided to the customer. As a consistent amount of capacity is being made available, revenue is recognized on a ratable basis. The Company determined the option years do not provide a material right to the NRO, and therefore do not give rise to additional performance obligations. As each option year is exercised, the consideration payable by the NRO will be recognized as revenue as capacity is provided over that option period. While the imagery acquisition portion of the EnhancedView Follow-On contract (“EnhancedView Contract”) has moved to the EOCL Contract, the Company will continue to perform other awarded services on the EnhancedView Contract through 2025, concurrent with the new EOCL Contract. Direct Access Program – Direct Access Program arrangements generally include construction of the direct access facility, access to the satellites to task and download imagery and facility maintenance services. The facility is generally delivered at the beginning of the contractual period of performance with access and maintenance services delivered over the duration of the contractual term. The Company has determined that distinct performance obligations exist; the access and related non-distinct promised goods and services are included together as a combined performance obligation with maintenance services representing a standalone performance obligation. Where a direct access facility is to be constructed under a new Direct Access Program or upgraded to maintain an existing level of service, the access and the facility are considered a single combined performance obligation as the customer cannot benefit from the facility on its own or with other readily available resources. The transaction price allocated to the combined performance obligation is recognized as access minutes are consumed during the contractual period. The remaining transaction price allocated to the maintenance services is recognized ratably over the maintenance period. Other Imagery Arrangements – Revenue is recognized for imagery licenses when the imagery is delivered to the customer. Revenues related to online imagery subscriptions are generally recognized ratably over the subscription period. Other imagery arrangements transfer a series of distinct goods or services over time for which management has determined are a single performance obligation or include multiple performance obligations. Revenue from geospatial intelligence service contracts is recognized from the rendering of services that compensate the Company at a cost-plus-fixed-fee, firm fixed price, or on a time and materials basis. Revenue is typically recognized for these contracts over time based on the stage of services completed to date as a percentage of total services to be performed, or on the basis of time plus reimbursable costs incurred during the period. As the customer typically controls the related work-in-progress, an input measure is the most appropriate basis with which to measure progress. Finally, as cost of labor is the predominant measure by which these contracts are structured, the Company recognizes revenue using a cost-incurred approach. Contract liabilities Contract liabilities primarily consist of advance payments from customers and deferred revenue. Changes in contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances. |
Net (loss) income per common share | Net (loss) income per common share Net (loss) income per common share is computed by dividing net (loss) income by the sum of the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by adjusting the basic income per common share calculation, as described above, for the effects of all potentially dilutive shares. The Company calculates the effects of all potentially dilutive shares using the treasury stock method unless they are anti-dilutive. |
Research and development | Research and development Research and development costs are expensed in the period incurred. For the years ended December 31, 2022, 2021 and 2020, the Company expensed research and development costs of $40 million, $27 million, and $15 million, respectively, in Selling, general and administrative expense within the Consolidated Statements of Operations. |
Implementation costs incurred in cloud computing arrangements | Implementation costs incurred in cloud computing arrangements Deferred implementation costs for hosted cloud computing service arrangements are stated at historical cost and amortized on a straight-line basis over the term of the hosting arrangement to which the implementation costs relate to, including any probable renewals. Deferred implementation costs for these arrangements are included in Prepaid assets and Other non-current assets in the Consolidated Balance Sheets and amortized to the same line item as the related hosting fees in the Consolidated Statements of Operations. There was $2 million of amortization for the year ended December 31, 2022. There was no amortization for the years ended December 31, 2021 and 2020. The cash flows for deferred implementation costs and fees for the associated hosting arrangements are reporting in the same line within operating activities in the Consolidated Statements of Cash Flows. As of December 31, 2022 and 2021, unamortized deferred implementation costs for cloud computing arrangements were $30 million and $20 million, respectively. |
Interest expense, net | Interest expense, net Interest expense, net is comprised of borrowing cost on debt, interest expense on advance payments from customers and other liabilities, interest expense on the orbital securitization liability and losses incurred on the extinguishment of debt, net of capitalized interest. Debt issuance costs related to the Company’s revolving line of credit are recorded in Prepaid assets and in Other non-current assets in the Consolidated Balance Sheets. Debt issuance costs and debt discount related to the Company’s term loan and senior secured notes are recorded as a direct deduction from the carrying amount of the related debt. |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities Derivative financial instruments used by the Company consist of interest rate swap agreements. The Company uses interest rate swap agreements to manage interest rate risk associated with cash outflows from long-term debt. Derivative financial instruments are measured at fair value and are included as components of Other current assets and Other non-current assets or Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets. When derivative financial instruments are designated in a qualifying hedging relationship and hedge accounting is applied, the effectiveness of the hedges is measured at the end of each reporting period and the effective portion of changes in fair value are deferred in Accumulated other comprehensive income (loss). Amounts deferred in Accumulated other comprehensive income (loss) Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. At that time, if the forecasted transaction within a cash flow hedge remains probable, any cumulative gain or loss on the hedging instrument recognized in Other comprehensive income (loss) is retained in equity until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss previously recognized in other comprehensive income is transferred to income. As of January 1, 2019, the Company discontinued hedge accounting on foreign exchange forward contracts related to its manufacturing and service programs. The Company does not offset the fair value amounts recognized with derivative instruments against the change in fair value of assets, liabilities or firm commitments executed with the same counterparty under a master netting agreement. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash Cash and cash equivalents is comprised of cash on hand, cash balances with banks and similar institutions and term deposits redeemable within three months or less from date of acquisition with banks and similar institutions. Restricted cash is excluded from cash and cash equivalents and is included in Other current assets or Other non-current assets in the Consolidated Balance Sheets. |
Trade and other receivables, net | Trade and other receivables, net Trade and other receivables include amounts billed to customers, unbilled receivables in which the Company’s right to consideration is unconditional and current portion of orbital receivables, net of allowance for expected credit losses. The Company bills customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries. The Company maintains an allowance for expected credit losses for estimated losses resulting from the inability of its customers to make required payments, which results in bad debt expense. The Company periodically determines the adequacy of this allowance by evaluating the comprehensive risk profiles of all individual customer receivable balances including, but not limited to, the customer’s financial condition, credit agency reports, financial statements, credit limit and overall current economic conditions. Orbital Receivables Orbital receivables relate to performance incentives due under certain satellite construction contracts that are paid over the in-orbit life of the satellite. Orbital receivables are recognized as revenue when measuring progress under the cost-to-cost method during the construction period. The interest portion of the in-orbit payments is recognized as orbital revenue. Current orbital receivables are included in Trade and other receivables, net and long-term orbital receivables are included in Non-current assets, net of allowances in the Consolidated Balance Sheets. The Company records an allowance on its orbital receivables when, based on current events and circumstances, it believes it is probable that the outstanding amounts will not be collected. The Company utilizes customer credit ratings, expected credit loss and other credit quality indicators, as well as contractual terms to evaluate the collectability of orbital receivables on a quarterly basis. When qualitative factors indicate that all or a portion of an outstanding orbital receivable is uncollectable, or that all or a portion of an outstanding orbital receivable previously deemed uncollectable is collectable, a fair value assessment is performed using a discounted cash flow model as an indicator to determine whether an increase or decrease in the allowance is necessary. Increases and decreases in the orbital receivables allowance are included in (Gain) loss on orbital receivables allowance in the Consolidated Statements of Operations. If the Company does not fulfill its performance obligation associated with its orbital receivables, a write-off of those orbital receivables will occur resulting in a reduction in the contractual value and revenue recognition associated with the performance obligation. The Company has a revolving securitization facility agreement with an international financial institution. Under the terms of the agreement, the Company may offer to sell eligible orbital receivables from time to time with terms of seven years or less, discounted to face value using prevailing market rates. The Company has sold certain orbital receivables in tranches that span multiple years and include longer-term maturities. The orbital receivables that have been securitized remain recognized on the Consolidated Balance Sheets as the Company does not meet the accounting criteria for surrendering control of the receivables. The net proceeds received on the orbital receivables have been recognized as securitization liabilities and are subsequently measured at amortized cost using the effective interest rate method. Securitization liabilities are presented in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. The securitized orbital receivables and the securitization liabilities are being drawn down as payments are received from the customers and passed on to the purchaser of the tranche. The Company continues to recognize orbital revenue on the orbital receivables that are subject to the securitization transactions and recognizes interest expense to accrete the securitization liability. |
Investments | Investments Short-term investments consist of mutual funds and financial instruments purchased with a term to maturity at inception between three months and one year. Short-term investments are measured at fair value through net income. Short-term investments are included within Other current assets in the Consolidated Balance Sheets. The Company has investments in joint ventures where it does not have a controlling financial interest but has the ability to exercise significant influence. These investments are accounted for under the equity method and are included within Other non-current assets in the Consolidated Balance Sheets. The Company’s share of the joint venture’s net income or loss is included within Equity in (income) loss from joint ventures, net of tax in the Consolidated Statements of Operations. The Company’s most significant joint venture was Vricon, a joint venture with Saab AB, specializing in the production of 3D models using high resolution imagery. On July 1, 2020, the Company closed the acquisition of Vricon by purchasing the remaining 50% ownership interest in Vricon. The operating results of Vricon are included in the Company’s Consolidated Statement of Operations beginning July 1, 2020. Equity method investments are insignificant for the years ended December 31, 2022 and 2021. |
Inventory | Inventor y Inventories are measured at the lower of cost or net realizable value and consist primarily of parts and sub-assemblies used in the manufacturing of satellites. The cost of inventories is determined on a first-in-first-out basis or weighted average cost basis, depending on the nature of the inventory. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expense. Inventory is impaired when it is probable inventory values exceed their net realizable value. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is measured at cost less accumulated depreciation. Cost for satellite assets includes amounts related to design, construction, launch and commissioning. Cost for ground system assets include amounts related to construction and testing. Interest expense is capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. When the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item and the components have different useful lives, they are accounted for and depreciated separately. Property, plant and equipment under construction are measured at cost less any impairment losses. Depreciation expense is recognized in income on a straight-line basis over the estimated useful life of the related asset to its residual value. Expected useful lives are reviewed at least annually. Land is not depreciated. The estimated useful lives are as follows: Estimated useful life Land improvements 20 years Buildings 7 - 45 years Leasehold improvements lesser of useful life or term of lease Equipment 2 - 40 years Satellites 1 11.5 - 17 years Furniture and fixtures 2 - 10 years Computer hardware 2 - 13 years 1 The estimated useful life over which the Company depreciates its satellites is determined once a satellite has been placed into orbit. The initial determination of a satellites useful life involves an analysis that considers design life, random part failure probabilities, expected component degradation and cycle life, predicted fuel consumption and experience with satellite parts, vendors and similar assets. |
Intangible assets | Intangible assets Intangible assets consist of customer relationships, backlog, acquired technologies and software, image library, trade names, licenses and non-compete agreements. Intangible assets are generally amortized on a straight-line basis over their estimated useful lives and are recorded at fair value at the time of acquisition, or in the case of internally developed software, at cost. Image library intangibles assets are amortized using the double declining balance method. Intangible assets are currently amortized over the following estimated useful lives: Estimated useful life Customer relationships 9 - 21 years Backlog 2 - 5 years Technologies 5 - 13 years Software 2 - 10 years Image library 5 years Trade names and other 1 - 20 years Non-compete agreements 2 years |
Impairment | Impairment Intangible assets and property, plant and equipment and other long-lived assets Finite-lived intangible assets, property, plant and equipment and other long-lived assets are tested for impairment at least annually on October 1, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Finite-lived intangible assets and property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value and recorded as a reduction in the carrying value of the related asset. If an owned satellite were to fail during launch or while in-orbit, the resulting loss would be charged to expense in the period it is determined the satellite is not recoverable. The amount of loss would be reduced to the extent of insurance proceeds received. The timing of the loss and the insurance recovery will likely differ, as an insurance recovery generally cannot be recognized until final settlement with the insurance company is reached. Goodwill Goodwill is tested for impairment at least annually on October 1, or whenever events or changes in circumstances indicate that its carrying amount may be less than its recoverable amount. Goodwill is tested for impairment at the reporting unit level. The Company may use either a qualitative or quantitative approach when testing a reporting unit’s goodwill for impairment. Where a qualitative approach is used, an evaluation of events and circumstances impacting the reporting unit is performed to determine the likelihood of goodwill impairment. Based on that qualitative evaluation if it is determined that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise, a quantitative impairment test is performed. Where a quantitative approach is used, management typically uses an income approach to estimate the fair value of a reporting unit, which requires the use of significant judgments and estimates, including future cash flows, terminal growth rates and discount rates. Any changes to these inputs could have a material impact on the impairment calculation. An impairment loss is recognized to the extent that the carrying value of a reporting unit exceeds its fair value. Management assesses the reasonableness of the results by reconciling the sum of the estimated fair values of the reporting units, including the Company’s Corporate balance sheet, to the Company’s market capitalization and market value of invested capital as of the date of our annual impairment test. The Company used a qualitative approach for its goodwill impairment assessment as of October 1, 2022 and 2021 and determined that no impairment existed. |
Warranty and after-sale service costs | Warranty and after-sale service costs A liability for warranty and after-sale service costs is recognized when the underlying product is sold. Warranty and after-sale service provisions are based on management’s best estimate of the expected obligation using historical warranty data and experience. Warranty and after-sale service liabilities related to products delivered under construction contracts are included in the EAC for revenue recognition. Warranty and after-sale service liabilities are presented in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. Warranty and after-sale service costs are recognized within Product costs, excluding depreciation and amortization in the Consolidated Statement of Operations. |
Restructuring costs | Restructuring costs A liability for restructuring costs is recognized when the Company has approved a detailed and formal restructuring plan and the restructuring either has commenced or has been announced publicly. |
Employee benefits | Employee benefits Defined benefit pension and other postretirement benefit plans The Company maintains defined benefit pension and other postretirement benefit plans for certain employees within its Space Infrastructure segment. The pension and other postretirement plan benefits were frozen on December 31, 2013. The Company recognizes the funded status of each pension and other postretirement benefit plan in the Consolidated Balance Sheets. The calculation of pension and other postretirement benefit obligations is performed annually by qualified actuaries using the projected unit credit actuarial cost method. The projected benefit obligation is the sum of the actuarial present value of all pension benefits attributed to benefit service completed to the determination date. Pension and other postretirement plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. The Company’s net obligation in respect of the pension and other postretirement benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the prior periods, discounting that amount and deducting the fair value of associated plan assets. The Company uses the net asset value (“NAV”) practical expedient to measure the fair value of the plan’s commingled fund investments. These commingled fund investments for which the fair value is measured using the NAV practical expedient are excluded from the fair value hierarchy. The Company recognizes the amortization of prior service costs as a component of Selling, general and administrative expense. All other costs are recognized outside of operating income within Other (income) expense, net. The Company recognizes administrative expenses related to frozen plans outside of Operating income (loss) within Other (income) expense, net. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in the net benefit liability that relates to past service or the gain or loss on curtailment is recognized immediately in Accumulated other comprehensive income (loss). The Company recognizes gains or losses on the settlement of a defined benefit plan when settlement occurs. For the Company’s pension and other postretirement benefit plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants or over the average life expectancy for plans with significant inactive participants. Defined contribution plans The Company also maintains defined contribution plans for some of its employees whereby the Company pays contributions based on a percentage of the employees’ annual salary. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in Operating income (loss) as the services are provided. |
Share-based compensation plans | Stock-based compensation plans The Company maintains a number of stock-based compensation plans for certain employees and directors that may be settled with cash and/or equity. For certain stock-based compensation plans, the Company has the ability to mandate equity settlement by issuing reserved shares. Stock-based compensation plans are measured at fair value using either the Black-Scholes option pricing model, the closing price of the Company’s common stock on the grant date or the Monte Carlo simulation model and the fair value is expensed on a graded vesting schedule over the vesting period. Management uses judgment to determine the inputs to the models including the expected plan lives, underlying stock price volatility and forfeiture rates. Volatility is estimated by considering the Company’s historic stock price volatility over similar periods to the expected life of the awards under consideration. Changes in these assumptions will impact the calculation of fair value and the amount of compensation expense recognized within Selling, general and administrative expense in the Consolidated Statements of Operations. The fair value of liability classified awards is recognized as a liability within Accrued compensation and benefits and Pension and other postretirement benefit liabilities in the Consolidated Balance Sheets. The Company classifies stock-based compensation awards as liability when the expectation is the awards will be settled in cash. The liability is re-measured and charged to income at each reporting date until the award is settled. The fair value of equity-settled plans is recognized in Additional paid-in capital in the Consolidated Balance Sheets. Equity-settled plans are measured based on the grant date fair value of the award including the impact of estimated forfeitures and are not re-measured. The Company classifies stock-based compensation awards as equity when the expectation is the awards will be settled in equity. |
Income taxes | Income taxes The Company is subject to income taxes in the United States, Sweden and other foreign jurisdictions. The Company computes its provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured at the currently enacted tax rates that are expected to apply in years in which they are expected to be paid for or realized. All deferred income taxes are classified as non-current in the Company's Consolidated Balance Sheets. Significant judgments are required in order to determine the realizability of deferred tax assets. In assessing the need for a valuation allowance, the Company's management evaluates all significant available positive and negative evidence, including historical operating results, estimates of future sources of taxable income, carry-forward periods available, the existence of prudent and feasible tax planning strategies and other relevant factors. The recognition of uncertain tax positions is evaluated based on whether it is considered more likely than not that the position taken, or expected to be taken, on a tax return will be sustained upon examination through litigation or appeal. For those positions that meet the recognition criteria, they are measured as the largest amount that is more than 50 percent likely to be realized upon ultimate settlement. The Company believes that the reserves for unrecognized tax benefits are adequate to cover all open tax years based on its assessment. If the expected outcome of the matter changes, the Company will adjust income tax expense (benefit) or the deferred tax asset accordingly in the period in which the expected outcome has changed. The Company classifies interest and penalties related to income taxes as income tax expense. |
Reclassifications | Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement s 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 elected to apply the amendments beginning in 2022. Recently Issued Accounting Pronouncements Accounting pronouncements issued, but not effective until after December 31, 2022, are not expected to have a material effect on the Company’s consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Schedule of estimated useful lives of property, plant and equipment | Estimated useful life Land improvements 20 years Buildings 7 - 45 years Leasehold improvements lesser of useful life or term of lease Equipment 2 - 40 years Satellites 1 11.5 - 17 years Furniture and fixtures 2 - 10 years Computer hardware 2 - 13 years 1 The estimated useful life over which the Company depreciates its satellites is determined once a satellite has been placed into orbit. The initial determination of a satellites useful life involves an analysis that considers design life, random part failure probabilities, expected component degradation and cycle life, predicted fuel consumption and experience with satellite parts, vendors and similar assets. |
Schedule of estimated useful lives of intangible assets with finite lives | Estimated useful life Customer relationships 9 - 21 years Backlog 2 - 5 years Technologies 5 - 13 years Software 2 - 10 years Image library 5 years Trade names and other 1 - 20 years Non-compete agreements 2 years |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued operations. | |
Schedule of results of discontinued operations | Income from discontinued operations, net of tax for the MDA Business in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2020 1 Revenues: Product $ 44 Service 42 Total revenues 86 Costs and expenses: Product costs, excluding depreciation and amortization 38 Service costs, excluding depreciation and amortization 24 Selling, general and administrative 13 Depreciation and amortization 4 Impairment loss 12 Operating (loss) income (5) Interest expense, net 1 Other (income) expense, net 2 (34) Income before taxes 28 Income tax benefit (4) Income from operations of discontinued operations, net of tax 32 Gain on disposal of discontinued operations, net of tax 317 Income from discontinued operations, net of tax $ 349 1 2 Other (income) expense, net includes the $39 million recovery of the previously recorded liability in relation to the Company’s dispute with the Ukrainian Customer. |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Vricon | |
Business combination | |
Schedule of unaudited pro forma financial information | Year Ended December 31, 2020 Revenues $ 1,734 Net income $ 302 |
Trade and other receivables, _2
Trade and other receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables, net | |
Schedule of trade and other receivables, net | December 31, December 31, 2022 2021 U.S. government receivables: Billed $ 67 $ 65 Unbilled 92 124 159 189 Other governments and commercial receivables: Billed 131 97 Unbilled 42 19 173 116 Total trade receivables 332 305 Orbital receivables, current portion 44 49 Other 4 2 Allowance for doubtful accounts — (1) Trade and other receivables, net $ 380 $ 355 |
Schedule of total contractual cash flows for all launched and unlaunched satellites including principal and interest payments | 2023 2024 2025 2026 2027 Thereafter Total Contractual cash flows from orbital receivables $ 69 $ 70 $ 64 $ 59 $ 55 $ 270 $ 587 |
Schedule of securitization liabilities | December 31, December 31, 2022 2021 Current portion $ 15 $ 16 Non-current portion 18 32 Total securitization liabilities $ 33 $ 48 |
Inventory, net (Tables)
Inventory, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, net | |
Schedule of inventory | December 31, December 31, 2022 2021 Raw materials $ 44 $ 34 Work in process 4 6 Total $ 48 $ 40 Inventory reserve (2) (1) Inventory, net $ 46 $ 39 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment, net | December 31, December 31, 2022 2021 Satellites $ 398 $ 397 Equipment 209 221 Computer hardware 114 95 Leasehold improvements 95 83 Furniture and fixtures 17 16 Construction in process 1 855 668 Property, plant and equipment, at cost 1,688 1,480 Accumulated depreciation (594) (540) Property, plant and equipment, net $ 1,094 $ 940 1 Construction in process is primarily related to the construction of the Company’s WorldView Legion satellites. |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill | |
Schedule of intangible assets | December 31, 2022 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Customer relationships $ 615 $ (234) $ 381 $ 615 $ (190) $ 425 Software 461 (174) 287 379 (152) 227 Technologies 49 (14) 35 367 (278) 89 Trade names and other 28 (13) 15 37 (18) 19 Backlog — — — 107 (89) 18 Image library — — — 80 (71) 9 Intangible assets $ 1,153 $ (435) $ 718 $ 1,585 $ (798) $ 787 |
Schedule of estimated annual amortization expense related to finite-lived intangible assets | 2023 2024 2025 2026 2027 2028 and thereafter Amortization expense $ 109 $ 108 $ 105 $ 77 $ 66 $ 253 |
Schedule of goodwill | Earth Intelligence Space Infrastructure Total Balance as of December 31, 2020 Goodwill $ 1,769 $ 17 $ 1,786 Accumulated impairment losses (142) (17) (159) 1,627 — 1,627 Balance as of December 31, 2021 Goodwill 1,769 17 1,786 Accumulated impairment losses (142) (17) (159) 1,627 — 1,627 Acquisition of Wovenware 19 — 19 Acquisition of other 3 — 3 Balance as of December 31, 2022 Goodwill 1,791 17 1,808 Accumulated impairment losses (142) (17) (159) $ 1,649 $ — $ 1,649 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of components of lease expense | Year Ended December 31, Classification 2022 2021 2020 Operating lease expense Selling, general, and administrative expense, Product costs, and Service costs 1 $ 45 $ 44 $ 47 1 Excluding depreciation and amortization |
Supplemental lease balance sheet information | December 31, December 31, Classification 2022 2021 Assets: Operating Non-current operating lease assets $ 133 $ 145 Finance Property, plant, and equipment, net 7 5 Total lease assets $ 140 $ 150 Liabilities: Current Operating Current operating lease liabilities $ 34 $ 42 Finance Current portion long-term debt 4 3 Non-current Operating Operating lease liabilities 133 138 Finance Long-term debt 1 2 Total lease liabilities $ 172 $ 185 |
Schedule of supplemental lease cash flow information | December 31, December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 38 $ 44 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 16 $ 12 |
Schedule of other supplemental lease information | December 31, December 31, 2022 2021 Weighted average remaining lease term (in years) Operating leases 7 7 Finance leases 2 2 Weighted average discount rate Operating leases 6.7% 6.4% Finance leases 4.0% 3.2% |
Schedule of maturities of finance lease liabilities | Maturities of lease liabilities are as follows: 2023 2024 2025 2026 2027 Thereafter Less: imputed interest Total minimum lease payments Operating leases $ 35 $ 31 $ 27 $ 25 $ 25 $ 71 $ (47) $ 167 Finance leases 4 1 — — — — — 5 |
Schedule of maturities of operating liabilities | 2023 2024 2025 2026 2027 Thereafter Less: imputed interest Total minimum lease payments Operating leases $ 35 $ 31 $ 27 $ 25 $ 25 $ 71 $ (47) $ 167 Finance leases 4 1 — — — — — 5 |
Warranty and restructuring ob_2
Warranty and restructuring obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Warranty and restructuring obligations | |
Schedule of changes to warranty obligations | Warranty and after-sale service Restructuring Balance as of December 31, 2020 $ 38 $ — Obligations incurred 2 2 Payments/uses (5) — Reversals (1) — Balance as of December 31, 2021 $ 34 $ 2 Obligations incurred 1 13 Payments/uses (5) (10) Reversals (3) — Balance as of December 31, 2022 $ 27 $ 5 |
Long-term debt and interest e_2
Long-term debt and interest expense, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term debt and interest expense, net | |
Summary of long term debt | December 31, December 31, 2022 2021 Syndicated Credit Facility: Revolving Credit Facility $ 125 $ — Term Loan B 1,493 1,444 9.75% 2023 Notes — 500 7.75% 2027 Notes 500 — 7.54% 2027 Notes 150 150 Deferred financing 19 26 Obligations under finance leases and other 5 5 Debt discount and issuance costs (98) (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 | Year Ended December 31, 2022 2021 2020 Interest on long-term debt $ 156 $ 144 $ 191 Loss on debt extinguishment 53 41 7 Interest on orbital securitization liability 3 4 5 Imputed interest and other 1 2 2 Interest expense on advance payments from customers — — 3 Capitalized interest (55) (40) (33) Interest expense, net $ 158 $ 151 $ 175 |
Summary of annual contractual principal repayments on long-term debt, net of financing fees | 2023 2024 2025 2026 2027 Thereafter Total Syndicated Credit Facility Revolving credit facility $ — $ — $ — $ — $ 125 $ — $ 125 Term Loan B 15 15 15 15 15 1,418 1,493 7.75% 2027 Notes — — — — 500 — 500 7.54% 2027 Notes — — — — 150 — 150 Deferred financing 2 2 2 3 3 7 19 Finance leases and other 4 1 — — — — 5 Total principal payments $ 21 $ 18 $ 17 $ 18 $ 793 $ 1,425 $ 2,292 Debt discount and issuance costs (98) Total long-term debt $ 2,194 |
Financial instruments and fai_2
Financial instruments and fair value disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments and fair value disclosures | |
Summary of financial instruments measured at fair value | Recurring Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Orbital receivables 1 $ — $ 392 $ — $ 392 Interest rate swaps — 21 — 21 $ — $ 413 $ — $ 413 Liabilities Long-term debt 2 $ — $ 2,168 $ — $ 2,168 $ — $ 2,168 $ — $ 2,168 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 $351 million and $417 million at December 31, 2022 and December 31, 2021, respectively. See Note 5 regarding the gain on orbital receivables allowance for the year ended December 31, 2021. 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 $2,045 million and $2,055 million as of December 31, 2022 and 2021, respectively. The carrying value of borrowings under the Revolving Credit Facility approximates their fair value. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives and Hedging | |
Schedule of foreign exchange forward contracts to hedge exposure arising from expected foreign currency denominated cash flows | December 31, 2022 Notional amount Maximum Contract term Derivatives designated as hedging instruments Interest rate swaps $ 1,000 1.5 years December 31, 2021 Notional amount Maximum Contract term Derivatives designated as hedging instruments Interest rate swaps $ 1,000 1.5 years |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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 Pension and other postretirement plan adjustments Total accumulated other comprehensive income (loss) Balance as of December 31, 2019 $ 126 $ (12) $ (73) $ 41 Other comprehensive loss (47) (3) (43) (93) Reclassification to gain on disposal of discontinued operations 1 (78) (5) 15 (68) Tax benefit (expense) — — — — Balance as of December 31, 2020 $ 1 $ (20) $ (101) $ (120) Other comprehensive (loss) income (2) 19 50 67 Tax benefit (expense) — — — — Balance as of December 31, 2021 $ (1) $ (1) $ (51) $ (53) Other comprehensive (loss) income (1) 22 16 37 Tax benefit (expense) — — — — Balance as of December 31, 2022 $ (2) $ 21 $ (35) $ (16) 1 Relates to the reclassification of foreign currency translation from Accumulated other comprehensive (loss) income to the gain on disposal of discontinued operations due to the completion of the MDA Transaction. See Note 3 for details. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Summary of contract assets and contract liabilities by segment | As of December 31, 2022 Earth Intelligence Space Infrastructure Total Contract liabilities $ 107 $ 257 $ 364 As of December 31, 2021 Earth Intelligence Space Infrastructure Total Contract liabilities $ 32 $ 257 $ 289 |
Summary of revenue by primary sources | Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 527 $ — $ 527 Service revenues 1,078 — — 1,078 Intersegment — 99 (99) — $ 1,078 $ 626 $ (99) $ 1,605 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 678 $ — $ 678 Service revenues 1,092 — — 1,092 Intersegment 1 62 (63) — $ 1,093 $ 740 $ (63) $ 1,770 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Eliminations Total Product revenues $ — $ 633 $ — $ 633 Service revenues 1,081 9 — 1,090 Intersegment — 79 (79) — $ 1,081 $ 721 $ (79) $ 1,723 |
Summary of revenue by geographic location of customers | Year Ended December 31, 2022 2021 2020 United States $ 1,315 $ 1,431 $ 1,406 Asia 95 97 96 Europe 65 80 84 Middle East 57 54 54 Australia 43 70 37 Canada 16 10 10 South America 5 17 25 Other 9 11 11 Total revenues $ 1,605 $ 1,770 $ 1,723 |
Schedule of revenue from significant customers | Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 722 $ 230 $ — $ 952 Commercial and other 356 396 (99) 653 Total revenues $ 1,078 $ 626 $ (99) $ 1,605 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 701 $ 235 $ — $ 936 Commercial and other 392 505 (63) 834 Total revenues $ 1,093 $ 740 $ (63) $ 1,770 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Eliminations Total U.S. federal government and agencies $ 774 $ 288 $ — $ 1,062 Commercial and other 307 433 (79) 661 Total revenues $ 1,081 $ 721 $ (79) $ 1,723 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment information | |
Summary of operating performance of the reporting segments | Year Ended December 31, 2022 2021 2020 Revenues: Earth Intelligence $ 1,078 $ 1,093 $ 1,081 Space Infrastructure 626 740 721 Intersegment eliminations (99) (63) (79) Total revenues $ 1,605 $ 1,770 $ 1,723 Adjusted EBITDA: Earth Intelligence $ 445 $ 492 $ 513 Space Infrastructure (32) 46 (3) Intersegment eliminations (36) (25) (27) Corporate and other expenses (91) (89) (61) Restructuring (18) (2) — Offset obligation fulfillment (12) — — Transaction and integration related expense (6) (1) (7) Amortization of deferred ERP implementation costs (2) — — (Loss) gain on remeasurement of equity interest 1 (1) — 85 Gain (loss) on orbital receivables allowance — 49 (14) Impairment loss — — (33) Insurance recovery 2 — 1 — Loss on sale of assets — — (1) Depreciation and amortization (239) (290) (348) Interest expense, net (158) (151) (175) Interest income 3 2 3 3 Equity in income from joint ventures, net of tax — — (1) (Loss) income from continuing operations before taxes $ (148) $ 33 $ (69) 1 As a result of the Vricon Acquisition during the year ended December 31, 2020, the Company was required to remeasure its previously held equity interest in Vricon at its acquisition date fair value which resulted in a gain of $85 million. The (Loss) gain on remeasurement of equity interest is included in Other expense (income), net on the Consolidated Statements of Operations. 2 Insurance recovery is included in Other expense (income), net on the Consolidated Statement of Operations. 3 Interest income is included in Other expense (income), net on the Consolidated Statements of Operations. |
Schedule of capital expenditures by segment | Year Ended December 31, 2022 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 148 $ 17 $ 61 $ 226 Intangible assets 88 — 5 93 $ 236 $ 17 $ 66 $ 319 Year Ended December 31, 2021 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 79 $ 16 $ 40 $ 135 Intangible assets 87 — 12 99 $ 166 $ 16 $ 52 $ 234 Year Ended December 31, 2020 Earth Intelligence Space Infrastructure Corporate and eliminations Total Capital expenditures: Property, plant and equipment $ 147 $ 21 $ 53 $ 221 Intangible assets 79 1 7 87 $ 226 $ 22 $ 60 $ 308 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Summary of changes in the benefit obligations, the plan assets and funded status | Pension Other Postretirement 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 585 $ 624 $ 13 $ 14 Service cost 3 3 — — Interest cost 14 14 — — Actuarial (gains) losses (125) (23) (2) (1) Benefits paid (33) (33) (1) — Benefit obligation at end of year $ 444 $ 585 $ 10 $ 13 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 462 $ 444 $ — $ — Actual return on assets (83) 51 — — Employer contributions 1 1 1 — Benefits paid (31) (31) (1) — Expenses paid (3) (3) — — Fair value of plan assets at end of year 346 462 — — Unfunded status at end of year $ (98) $ (123) $ (10) $ (13) Liabilities recognized in the Consolidated Balance Sheets: Accrued compensation and benefits $ (1) $ (1) $ (1) $ (1) Pension and other postretirement benefits (97) (122) (9) (12) $ (98) $ (123) $ (10) $ (13) |
Summary of the accumulated other comprehensive income | Pension Other Postretirement 2022 2021 2022 2021 Net (loss) gain $ (45) $ (60) $ 10 $ 9 |
Schedule of weighted average assumptions used to determine the benefit obligations | Pension Other Postretirement 2022 2021 2022 2021 Discount rate 4.9 % 2.6 % 4.9 % 2.6 % |
Summary of the components of net periodic benefit income | Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Interest cost $ 14 $ 14 $ 17 $ — $ 1 $ — Expected return on plan assets (29) (29) (24) — — — Amortization of net loss (gain) — 6 1 (1) (1) — Settlement gain — — — — — (4) Expenses paid 3 3 2 — — — Net periodic benefit $ (12) $ (6) $ (4) $ (1) $ — $ (4) |
Summary of other changes in plan assets and benefit obligations recognized in other comprehensive income | Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Net (gain) loss $ (14) $ (44) $ 40 $ (3) $ (1) $ 4 Amortization of net (loss) gain — (6) (1) 1 1 — Total recognized in other comprehensive (income) loss $ (14) $ (50) $ 39 $ (2) $ — $ 4 Total recognized in net periodic benefit credit and other comprehensive (income) loss $ (26) $ (56) $ 35 $ (3) $ — $ — |
Schedule of weighted average assumptions used to determine the net periodic benefit cost | Pension Other Postretirement 2022 2021 2020 2022 2021 2020 Discount rate 2.6 % 2.2 % 3.0 % 2.6 % 2.2 % 3.0 % Expected long-term return on plan assets 6.5 % 6.5 % 6.5 % N/A N/A N/A |
Schedule of pension plan asset allocation | Asset Allocation Target Actual Cash and cash equivalents — % 1 % U.S. and global equity securities 71 % 71 % Fixed income 29 % 28 % 100 % 100 % |
Schedule of fair value of pension plan assets by asset category segregated by level within the fair value hierarchy | December 31, 2022 December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3 $ — $ — $ 3 $ 3 $ — $ — $ 3 Commingled funds 1 343 459 Total assets at fair value $ 3 $ — $ — $ 346 $ 3 $ — $ — $ 462 1 Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy table. The total fair value of these amounts are presented in this table to permit reconciliation of the fair value hierarchy to the amounts presented for total defined benefit pension plan assets. |
Schedule of expected benefit payments to be paid | 2023 2024 2025 2026 2027 2028 through 2032 Pension $ 32 $ 32 $ 32 $ 33 $ 33 $ 158 Other postretirement 1 1 1 1 1 4 $ 33 $ 33 $ 33 $ 34 $ 34 $ 162 |
Stock-based compensation plans
Stock-based compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment plans | |
Summary of share-based compensation expense (benefit) | Year Ended December 31, Classification 2022 2021 2020 Stock-based compensation expense Selling, general, and administrative expense, Product costs, and Service costs $ 48 $ 45 $ 43 |
Share Appreciation Rights | |
Share-based payment plans | |
Summary of share based payment activity | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic awards price term (in years) value SARs outstanding at December 31, 2021 921,136 $ 51.13 Exercised (17,400) 48.91 Expired (38,717) 49.07 SARs outstanding at December 31, 2022 865,019 51.27 4.29 $ 2,204,569 SARs vested at December 31, 2022 865,019 51.27 4.29 $ 2,204,569 SARs exercisable at December 31, 2022 865,019 $ 51.27 4.29 $ 2,204,569 |
Restricted Share Units | Omnibus and DigitalGlobe Equity Incentive Plan | |
Share-based payment plans | |
Summary of share based payment activity | Weighted Weighted average average Number of grant date Number of grant date awards 1 fair value 1 awards 2 fair value 2 Nonvested RSUs at December 31, 2021 2,299,133 $ 24.15 24,938 $ 3.99 Granted 1,160,014 28.06 — — Vested (1,302,113) 21.79 (24,938) 3.99 Cancelled (239,578) 27.00 — — Nonvested RSUs at December 31, 2022 1,917,456 $ 27.76 — $ — 1 RSUs under the 2019 Plan 2 RSUs under the Omnibus Plan |
Performance Share Unit | |
Share-based payment plans | |
Summary of share based payment activity | Weighted average Number of grant date awards fair value Nonvested PSUs at December 31, 2021 903,565 $ 20.42 Granted 266,294 31.84 Performance adjustment 125,274 31.84 Vested (700,526) 10.70 Cancelled or expired (13,567) 37.65 Nonvested PSUs at December 31, 2022 581,040 $ 37.13 |
Summary of valuation share based compensation awards | Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.7 - 3.8 % 0.3 % 0.9 % Dividend yield 0.1 - 0.2 % 0.1 % 0.3 % Volatility 71 - 86 % 98 - 104 % 79 % Expected lives (in years) 2.3 - 2.9 2.6 - 2.8 2.8 |
Deferred Share Units (DSU) | |
Share-based payment plans | |
Summary of share based payment activity | Weighted average Number of issuance awards price DSUs outstanding at December 31, 2021 32,895 C$ 56.01 Issued — — Redeemed — — DSUs outstanding at December 31, 2022 32,895 C$ 56.01 1 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Schedule of components of earnings before income taxes | Year Ended December 31, 2022 2021 2020 U.S. $ (154) $ 25 $ (69) Non-U.S. 6 8 — (Loss) income before taxes $ (148) $ 33 $ (69) |
Schedule of Income tax expense / (benefit) | Year Ended December 31, 2022 2021 2020 Current tax expense (benefit) Federal $ — $ (12) $ (5) State 1 (1) — Non-U.S. — 1 — 1 (12) (5) Deferred tax expense (benefit) Federal — (1) (17) State — — — Non-U.S. 1 — — 1 (1) (17) Income tax expense (benefit) $ 2 $ (13) $ (22) |
Schedule of reconciliation of the US statutory income tax rate to our effective income tax rate | Year Ended December 31, 2022 2021 2020 U.S. statutory income tax rate 21 % 21 % 21 % Expected income tax (benefit) expense at statutory rate $ (31) $ 7 $ (14) State tax (net of federal benefit) 1 (1) — Non-deductible expenses 3 2 2 Change in valuation allowance 38 (10) 49 Base Erosion and Anti-Abuse Tax — (13) (5) Outside basis difference in assets held for sale — — (39) Tax credits (11) 1 (3) Stock-based compensation 2 1 6 Remeasurement of Vricon equity interest — — (18) Income tax expense (benefit) $ 2 $ (13) $ (22) Effective income tax rate (1) % (39) % 32 % |
Schedule of significant components of deferred tax assets and liabilities | Year Ended December 31, 2022 2021 2020 Tax benefit of losses carried forward $ 108 $ 153 $ 209 Interest expense carried forward 42 32 — Tax credits 96 81 84 Trade and other payables 29 41 35 Employee benefits 34 41 52 Unrealized gains and losses (3) 3 20 Leasing transactions 46 51 55 Capitalized research and experimental expenditures 36 — — Other — — 1 Deferred tax assets 388 402 456 Valuation allowance (256) (215) (228) Deferred tax assets, net of valuation allowance 132 187 228 Construction contract liabilities (7) (5) (10) Property, plant and equipment (26) (64) (72) Goodwill and intangibles (67) (81) (106) Leasing transactions (32) (35) (38) Deferred tax liabilities (132) (185) (226) Deferred tax assets, net $ — $ 2 $ 2 |
NOL carryforwards by jurisdiction | Expiration Period Year Ended December 31, 2022 Federal 2037 $ 63 None 247 State 2025 - 2040 737 None 138 Non-U.S. None 4 |
Schedule of changes in unrecognized tax benefits | Year Ended December 31, 2022 2021 2020 Balance, beginning of year $ 17 $ 9 $ 7 Gross increases related to prior period tax positions — 7 2 Gross increases related to current period tax positions 2 1 1 Gross decreases related to prior period tax positions — — (1) Balance, end of year $ 19 $ 17 $ 9 |
Net (loss) income per common _2
Net (loss) income per common share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net (loss) income per common share | |
Summary of calculation of basic and diluted EPS | Year Ended December 31, 2022 2021 2020 (Loss) income from continuing operations $ (150) $ 46 $ (46) Income from discontinued operations, net of tax — — 349 Net (loss) income $ (150) $ 46 $ 303 Weighted average number of common shares outstanding-basic 74.0 70.6 60.7 Weighted dilutive effect of equity awards — 2.6 — Weighted average number of common shares outstanding-diluted 74.0 73.2 60.7 Basic net (loss) income per common share: (Loss) income from continuing operations $ (2.03) $ 0.65 $ (0.76) Income from discontinued operations, net of tax — — 5.75 Basic net (loss) income per common share $ (2.03) $ 0.65 $ 4.99 Diluted net (loss) income per common share: (Loss) income from continuing operations $ (2.03) $ 0.63 $ (0.76) Income from discontinued operations, net of tax — — 5.75 Diluted net (loss) income per common share $ (2.03) $ 0.63 $ 4.99 |
Supplemental cash flow (Tables)
Supplemental cash flow (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental cash flow | |
Schedule of supplemental cash flow | Year Ended December 31, 2022 2021 2020 Supplemental cash flow information: Cash paid for interest $ 140 $ 133 $ 205 Income tax (refunds), net of payments (3) (14) 1 Supplemental non-cash investing and financing activities: Accrued capital expenditures 21 14 13 Portion of Term Loan B accounted for as a debt modification 103 — — |
General business description (D
General business description (Details) - $ / shares | Dec. 15, 2022 | Jul. 01, 2020 |
Merger agreement with Gailelo Parent Inc | ||
General Business Description | ||
Cash consideration per share | $ 53 | |
Vricon | ||
General Business Description | ||
Remaining ownership interest acquired | 50% |
Summary of significant accoun_4
Summary of significant accounting policies - Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Research and development | |||
Amortization of deferred charges | $ 2 | $ 0 | $ 0 |
Deferred implementation costs for cloud computing arrangements | $ 30 | 20 | |
Orbital Receivables | |||
Term of facility | 7 years | ||
Selling, general and administrative | |||
Research and development | |||
Research and development costs | $ 40 | 27 | $ 15 |
Prepaid and other current assets | |||
Significant accounting policies | |||
Current deferred contract costs | 13 | 8 | |
Other non-current assets | |||
Significant accounting policies | |||
Non-current deferred contract costs | $ 42 | $ 47 | |
EOCL Contract | |||
Significant accounting policies | |||
Number of performance obligations | item | 1 |
Summary of significant accoun_5
Summary of significant accounting policies - Investments (Details) | Jul. 01, 2020 |
Vricon | |
Equity method investments | |
Remaining ownership interest acquired | 50% |
Summary of significant accoun_6
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Land improvements | |
Significant accounting policies | |
Estimated useful life | 20 years |
Buildings | Minimum | |
Significant accounting policies | |
Estimated useful life | 7 years |
Buildings | Maximum | |
Significant accounting policies | |
Estimated useful life | 45 years |
Equipment | Minimum | |
Significant accounting policies | |
Estimated useful life | 2 years |
Equipment | Maximum | |
Significant accounting policies | |
Estimated useful life | 40 years |
Satellites | Minimum | |
Significant accounting policies | |
Estimated useful life | 11 years 6 months |
Satellites | Maximum | |
Significant accounting policies | |
Estimated useful life | 17 years |
Furniture and fixtures | Minimum | |
Significant accounting policies | |
Estimated useful life | 2 years |
Furniture and fixtures | Maximum | |
Significant accounting policies | |
Estimated useful life | 10 years |
Computer hardware | Minimum | |
Significant accounting policies | |
Estimated useful life | 2 years |
Computer hardware | Maximum | |
Significant accounting policies | |
Estimated useful life | 13 years |
Summary of significant accoun_7
Summary of significant accounting policies - Intangible assets and goodwill (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Customer relationships | Minimum | |
Significant accounting policies | |
Estimated useful life | 9 years |
Customer relationships | Maximum | |
Significant accounting policies | |
Estimated useful life | 21 years |
Backlog | Minimum | |
Significant accounting policies | |
Estimated useful life | 2 years |
Backlog | Maximum | |
Significant accounting policies | |
Estimated useful life | 5 years |
Technologies | Minimum | |
Significant accounting policies | |
Estimated useful life | 5 years |
Technologies | Maximum | |
Significant accounting policies | |
Estimated useful life | 13 years |
Software | Minimum | |
Significant accounting policies | |
Estimated useful life | 2 years |
Software | Maximum | |
Significant accounting policies | |
Estimated useful life | 10 years |
Image library | |
Significant accounting policies | |
Estimated useful life | 5 years |
Trade name and other | Minimum | |
Significant accounting policies | |
Estimated useful life | 1 year |
Trade name and other | Maximum | |
Significant accounting policies | |
Estimated useful life | 20 years |
Non-compete agreements | |
Significant accounting policies | |
Estimated useful life | 2 years |
Discontinued operations - Narra
Discontinued operations - Narratives (Details) $ in Millions, $ in Billions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 08, 2020 USD ($) | Apr. 08, 2020 CAD ($) | |
Discontinued Operations | |||||
Gain on disposal of discontinued operations, net of tax | $ 317 | ||||
Reclassification of currency translation adjustment to gain on disposal of discontinued operations | (68) | ||||
Payments on a previously recorded liability | $ 0 | $ 13 | |||
MDA business | Discontinued operations | |||||
Discontinued Operations | |||||
Aggregate purchase price | $ 729 | $ 1 | |||
Gain on disposal of discontinued operations, net of tax | 317 | ||||
Tax on gain on disposal of discontinued operations | 12 | ||||
Reclassification of currency translation adjustment to gain on disposal of discontinued operations | $ 68 |
Discontinued operations - Finan
Discontinued operations - Financial information Operations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Revenues: | |
Total revenues | $ 86 |
Costs and expenses: | |
Selling, general and administrative | 13 |
Depreciation and amortization | 4 |
Impairment loss | 12 |
Operating (loss) income | (5) |
Interest expense, net | 1 |
Other (income) expense, net | (34) |
Income before taxes | 28 |
Income tax benefit | (4) |
Income from operations of discontinued operations, net of tax | 32 |
Gain on disposal of discontinued operations, net of tax | 317 |
Income from discontinued operations, net of tax | 349 |
Product | |
Revenues: | |
Total revenues | 44 |
Costs and expenses: | |
Costs, excluding depreciation and amortization | 38 |
Service | |
Revenues: | |
Total revenues | 42 |
Costs and expenses: | |
Costs, excluding depreciation and amortization | 24 |
MDA business | Discontinued operations | |
Costs and expenses: | |
Gain on disposal of discontinued operations, net of tax | 317 |
MDA business | Discontinued operations | Accrued Liabilities | |
Costs and expenses: | |
Recovery of previously recorded liability from dispute | $ 39 |
Business combination - Narrativ
Business combination - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Nov. 01, 2022 | Jul. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | Jun. 14, 2022 | Dec. 31, 2021 | Jun. 25, 2020 | |
Business combination | |||||||
Goodwill | $ 1,649 | $ 1,627 | $ 1,627 | ||||
Purchase consideration net of estimated cash at closing | 8 | 120 | |||||
Remeasurement gain on acquisition | $ 85 | ||||||
7.54% 2027 Notes | |||||||
Business combination | |||||||
Long-term debt | $ 150 | $ 150 | |||||
Interest rate (as a percent) | 7.54% | 7.54% | 7.54% | 7.54% | |||
Wovenware | |||||||
Business combination | |||||||
Purchase consideration | $ 24 | ||||||
Term of contingent payouts based on certain operating metrics | 5 years | ||||||
Fair value of net identifiable assets acquired | $ 5 | ||||||
Goodwill | $ 19 | ||||||
Vricon | |||||||
Business combination | |||||||
Remaining ownership interest acquired | 50% | ||||||
Purchase consideration | $ 143 | ||||||
Cash on hand | 23 | ||||||
Purchase consideration net of estimated cash at closing | 120 | ||||||
Cash settlement of equity awards | 26 | ||||||
Call option purchase price | 117 | ||||||
Vricon | Other (income) expense | |||||||
Business combination | |||||||
Remeasurement gain on acquisition | $ 85 | ||||||
Vricon | 7.54% 2027 Notes | |||||||
Business combination | |||||||
Long-term debt | $ 150 | ||||||
Interest rate (as a percent) | 7.54% |
Business combination - Purchase
Business combination - Purchase Price Allocation (Details) - USD ($) $ in Millions | Nov. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liabilities | ||||
Goodwill | $ 1,649 | $ 1,627 | $ 1,627 | |
Wovenware | ||||
Purchase price allocation | ||||
Purchase consideration | $ 24 | |||
Liabilities | ||||
Fair value of net identifiable assets acquired | 5 | |||
Goodwill | $ 19 |
Business combination - Unaudite
Business combination - Unaudited pro forma financial information (Details) - Vricon $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Proforma information | |
Revenue | $ 1,734 |
Net income | $ 302 |
Trade and other receivables, _3
Trade and other receivables, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other receivables | ||
Total trade receivables | $ 332 | $ 305 |
Orbital receivables, current portion | 44 | 49 |
Other | 4 | 2 |
Allowance for doubtful accounts | (1) | |
Trade and other receivables, net | 380 | 355 |
U.S government receivables | ||
Trade and other receivables | ||
Billed | 67 | 65 |
Unbilled | 92 | 124 |
Total trade receivables | 159 | 189 |
Other governments and commercial receivables | ||
Trade and other receivables | ||
Billed | 131 | 97 |
Unbilled | 42 | 19 |
Total trade receivables | $ 173 | $ 116 |
Trade and other receivables, _4
Trade and other receivables, net - Orbital receivables (Details) $ in Millions | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) customer | |
Trade and other receivables | |||
Orbital receivables, net | $ 307 | $ 368 | $ 307 |
Allowance for expected credit losses | |||
Change in allowance for expected credit losses related to non-current orbital receivables | $ 0 | ||
Reversals | $ 49 | ||
Accounts Receivable | Credit Concentration Risk | |||
Trade and other receivables | |||
Number of customers | customer | 13 | ||
Accounts Receivable | Credit Concentration Risk | Largest Customer | |||
Trade and other receivables | |||
Concentration risk, percentage | 33% | 30% | |
Jupiter 3 Satellite | |||
Trade and other receivables | |||
Reduction in outstanding receivables, expected orbital payments | $ 42 | ||
SXM 7 Satellite | |||
Trade and other receivables | |||
Reduction in outstanding receivables, final milestone | $ 15 | ||
Reduction in outstanding receivables, expected orbital payments | $ 14 |
Trade and other receivables - E
Trade and other receivables - Expected timing of total contractual cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract receivable | ||
2023 | $ 69 | |
2024 | 70 | |
2025 | 64 | |
2026 | 59 | |
2027 | 55 | |
Thereafter | 270 | |
Total | 587 | |
Orbital receivables | ||
Proceeds from sale of orbital receivables | 0 | $ 0 |
Orbital receivables repurchased | $ 0 | $ 0 |
Trade and other receivables, _5
Trade and other receivables, net - Securitization liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other receivables, net | ||
Current portion | $ 15 | $ 16 |
Non-current portion | 18 | 32 |
Total securitization liabilities | $ 33 | $ 48 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, net | ||
Raw materials | $ 44 | $ 34 |
Work in process | 4 | 6 |
Total | 48 | 40 |
Inventory reserve | (2) | (1) |
Inventory, net | $ 46 | $ 39 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | |||
Property, plant and equipment, at cost | $ 1,688 | $ 1,480 | |
Accumulated depreciation | (594) | (540) | |
Property, plant and equipment, net | 1,094 | 940 | |
Depreciation | 76 | 86 | $ 93 |
Satellites | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 398 | 397 | |
Equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 209 | 221 | |
Computer hardware | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 114 | 95 | |
Leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 95 | 83 | |
Furniture and fixtures | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 17 | 16 | |
Construction in process | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | $ 855 | $ 668 |
Intangible assets and goodwil_2
Intangible assets and goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-lived intangible assets: | |||
Gross carrying value | $ 1,153 | $ 1,585 | |
Accumulated amortization | (435) | (798) | |
Net carrying value | 718 | 787 | |
Amortization of intangible assets | 163 | 204 | $ 255 |
Customer relationships | |||
Finite-lived intangible assets: | |||
Gross carrying value | 615 | 615 | |
Accumulated amortization | (234) | (190) | |
Net carrying value | 381 | 425 | |
Software | |||
Finite-lived intangible assets: | |||
Gross carrying value | 461 | 379 | |
Accumulated amortization | (174) | (152) | |
Net carrying value | 287 | 227 | |
Technologies | |||
Finite-lived intangible assets: | |||
Gross carrying value | 49 | 367 | |
Accumulated amortization | (14) | (278) | |
Net carrying value | 35 | 89 | |
Trade names and other. | |||
Finite-lived intangible assets: | |||
Gross carrying value | 28 | 37 | |
Accumulated amortization | (13) | (18) | |
Net carrying value | $ 15 | 19 | |
Backlog | |||
Finite-lived intangible assets: | |||
Gross carrying value | 107 | ||
Accumulated amortization | (89) | ||
Net carrying value | 18 | ||
Image library | |||
Finite-lived intangible assets: | |||
Gross carrying value | 80 | ||
Accumulated amortization | (71) | ||
Net carrying value | $ 9 |
Intangible assets and goodwil_3
Intangible assets and goodwill - Estimated annual amortization expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Amortization expense | |
2023 | $ 109 |
2024 | 108 |
2025 | 105 |
2026 | 77 |
2027 | 66 |
2028 and thereafter | $ 253 |
Intangible assets and goodwil_4
Intangible assets and goodwill - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Nov. 01, 2022 | Dec. 31, 2020 | |
Goodwill | ||||
Goodwill | $ 1,786 | $ 1,808 | $ 1,786 | |
Accumulated impairment losses | (159) | (159) | (159) | |
Goodwill, net | 1,627 | 1,649 | 1,627 | |
Wovenware | ||||
Goodwill | ||||
Goodwill, net | $ 19 | |||
Acquisition of goodwill | 19 | |||
Other | ||||
Goodwill | ||||
Acquisition of goodwill | 3 | |||
Earth intelligence | ||||
Goodwill | ||||
Goodwill | 1,769 | 1,791 | 1,769 | |
Accumulated impairment losses | (142) | (142) | (142) | |
Goodwill, net | 1,627 | 1,649 | 1,627 | |
Earth intelligence | Wovenware | ||||
Goodwill | ||||
Acquisition of goodwill | 19 | |||
Earth intelligence | Other | ||||
Goodwill | ||||
Acquisition of goodwill | 3 | |||
Space Infrastructure | ||||
Goodwill | ||||
Goodwill | 17 | 17 | 17 | |
Accumulated impairment losses | $ (17) | $ (17) | $ (17) |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 10, 2019 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Leases | ||||
Operating lease liabilities | $ 167 | |||
Non-current operating lease assets | $ 133 | $ 145 | ||
Minimum | ||||
Leases | ||||
Option to extend - Operating | 6 months | |||
Option to extend - Finance | 6 months | |||
Maximum | ||||
Leases | ||||
Remaining lease term - Operating | 12 years | |||
Remaining lease term - Finance | 12 years | |||
Option to extend - Operating | 10 years | |||
Option to extend - Finance | 10 years | |||
Properties in Palo Alto, California | ||||
Leases | ||||
Operating lease liabilities | $ 63 | |||
Reduction in gain due to extension of lease term | $ 4 | |||
Non-current operating lease assets | $ 63 | |||
Properties in Palo Alto, California | Minimum | ||||
Leases | ||||
Lease term | 2 years | |||
Properties in Palo Alto, California | Maximum | ||||
Leases | ||||
Lease term | 10 years |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selling, general, and administrative expense, Product costs, and Service costs | |||
Leases | |||
Operating lease expense | $ 45 | $ 44 | $ 47 |
Leases - Supplemental lease bal
Leases - Supplemental lease balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Non-current operating lease assets | $ 133 | $ 145 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Non-current operating lease assets | Non-current operating lease assets |
Finance | $ 7 | $ 5 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net. | Property, Plant and Equipment, Net. |
Total leased assets | $ 140 | $ 150 |
Current operating lease liabilities | $ 34 | $ 42 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current operating lease liabilities | Current operating lease liabilities |
Finance lease liability, current | $ 4 | $ 3 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term Debt, Current Maturities | Long-term Debt, Current Maturities |
Operating lease liability, non current | $ 133 | $ 138 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liability, non current | Operating lease liability, non current |
Finance lease liability, non current | $ 1 | $ 2 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities |
Total leased Liabilities | $ 172 | $ 185 |
Leases - Supplemental lease cas
Leases - Supplemental lease cash flow information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 38 | $ 44 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 16 | $ 12 |
Leases - Other Supplemental lea
Leases - Other Supplemental lease information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating leases - Weighted average remaining lease term | 7 years | 7 years |
Finance leases - Weighted average remaining lease term | 2 years | 2 years |
Operating leases - Weighted average discount rate | 6.70% | 6.40% |
Finance leases - Weighted average discount rate | 4% | 3.20% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating leases | |
2023 | $ 35 |
2024 | 31 |
2025 | 27 |
2026 | 25 |
2027 | 25 |
Thereafter | 71 |
Less: imputed interest | (47) |
Total minimum lease payments | 167 |
Finance leases | |
2023 | 4 |
2024 | 1 |
Total minimum lease payments | $ 5 |
Warranty and restructuring ob_3
Warranty and restructuring obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Warranty and after-sale service | |||
Balance at beginning of period | $ 34 | $ 38 | |
Obligations incurred | 1 | 2 | |
Payments/uses | (5) | (5) | |
Reversals | (3) | (1) | |
Balance at end of period | 27 | 34 | $ 38 |
Restructuring reserve | |||
Balance at beginning of period | 2 | ||
Obligations incurred | 13 | 2 | |
Payments/uses | (10) | ||
Balance at end of period | 5 | 2 | |
Restructuring costs | 18 | $ 2 | $ 0 |
Restructuring costs incurred from the disposal of fixed assets | $ 5 |
Long-term debt and interest e_3
Long-term debt and interest expense, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jun. 14, 2022 | Dec. 31, 2021 | Mar. 26, 2021 | Dec. 31, 2020 | Jun. 25, 2020 | Dec. 11, 2019 |
Long-term debt and interest expense, net | |||||||
Obligations under finance leases and other | $ 5 | $ 5 | |||||
Debt discount and issuance costs | (98) | (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 | $ 1,493 | $ 1,500 | 1,444 | ||||
9.75% 2023 Notes | |||||||
Long-term debt and interest expense, net | |||||||
Long-term debt | $ 500 | ||||||
Interest rate (as a percent) | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% |
7.75% 2027 Notes | |||||||
Long-term debt and interest expense, net | |||||||
Long-term debt | $ 500 | ||||||
Interest rate (as a percent) | 7.75% | 7.75% | |||||
7.54% 2027 Notes | |||||||
Long-term debt and interest expense, net | |||||||
Long-term debt | $ 150 | $ 150 | |||||
Interest rate (as a percent) | 7.54% | 7.54% | 7.54% | 7.54% | |||
Deferred financing | |||||||
Long-term debt and interest expense, net | |||||||
Long-term debt | $ 19 | $ 26 |
Long-term debt and interest e_4
Long-term debt and interest expense, net - Syndicated credit facility (Details) $ in Millions | 12 Months Ended | |||||||||
Jun. 14, 2022 USD ($) | Mar. 26, 2021 USD ($) | Jun. 25, 2020 USD ($) | Dec. 11, 2019 USD ($) | Nov. 04, 2019 USD ($) | Oct. 05, 2017 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2019 USD ($) | |
Long-term debt and interest expense, net | ||||||||||
Debt modification | $ 103 | |||||||||
Loss on debt extinguishment | 53 | $ 41 | $ 7 | |||||||
Unamortized debt issuance cost | 16 | 15 | 16 | |||||||
At the end of each fiscal quarter | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Interest coverage ratio | 2 | |||||||||
Syndicated Credit Facility | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument interest coverage ratio | 2.50 | |||||||||
Syndicated Credit Facility | At the end of the previous fiscal year | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 7.25 | |||||||||
Syndicated Credit Facility | At the end of the current fiscal quarter | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 7.50 | |||||||||
Syndicated Credit Facility | At the end of each fiscal quarter for the next six months | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 6.50 | |||||||||
Syndicated Credit Facility | At the end of each fiscal quarter for the next twelve months | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 7.50 | |||||||||
Syndicated Credit Facility | At the end of each fiscal quarter for the next 18 months | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 7.75 | |||||||||
Syndicated Credit Facility | For each fiscal quarter thereafter | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Maximum debt to EBITDA | 5.75 | |||||||||
Syndicated Credit Facility | Upon a disposition of a business line for greater than $500 million | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Reduction in each maximum level of Debt to EBITDA | 0.25 | |||||||||
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 | ||||||||||
Maximum borrowing capacity | $ 500 | $ 1,250 | ||||||||
Long-term debt | 125 | |||||||||
Letter of credit outstanding | 24 | 28 | ||||||||
Loss on debt extinguishment | $ 1 | |||||||||
Extended term of debt | 2 years | |||||||||
Revolving Credit Facility | Upon a disposition of a business line for greater than $500 million | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Minimum amount of disposition of business line to trigger a reduction in each maximum level of consolidated debt to EBITDA | $ 500 | |||||||||
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 | |||||||||
Senior secured first lien revolving credit facility | Maturing in December 2023 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Aggregate principal amount | 500 | |||||||||
Senior Secured First Lien Operating Facility | Maturing in October 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Aggregate principal amount | 1,500 | |||||||||
Term Loan B | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument periodic payment percentage | 1% | |||||||||
Long-term debt | $ 1,500 | $ 1,493 | 1,444 | |||||||
Debt extinguishment | 1,300 | |||||||||
Debt modification | 103 | |||||||||
Loss on debt extinguishment | $ 10 | |||||||||
Debt Repaid | 511 | |||||||||
Unamortized debt issuance cost | $ 7 | |||||||||
Term Loan B | Maturing in June 2029 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
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 | ||||||||||
Aggregate principal amount | $ 150 | $ 1,000 | ||||||||
Unamortized deferred financing costs | $ 1 | |||||||||
Debt instrument unamortized discount | $ 5 | |||||||||
Long-term debt | $ 500 | |||||||||
Interest rate (as a percent) | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | |||
Notes issue price percentage | 98% | |||||||||
Percentage of principal amount of repurchased debt | 112.45% | |||||||||
Principal amount of redeemed | $ 500 | $ 350 | ||||||||
Premium paid for debt redemption | 34 | |||||||||
Loss on debt extinguishment | $ 42 | $ 41 | ||||||||
Percentage of premium paid on repurchase of notes | 7.313% | 12.45% | ||||||||
Debt instrument redemption price percentage | 107.313% | |||||||||
7.75% 2027 Notes | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Aggregate principal amount | $ 500 | |||||||||
Long-term debt | $ 500 | |||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||||
Issue Price (as a percent) | 100% | |||||||||
7.75% 2027 Notes | Redemption in period of 12 months beginning on June 25, 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 103.875% | |||||||||
7.75% 2027 Notes | Redemption in period of 12 months beginning on June 25, 2025 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 101.938% | |||||||||
7.75% 2027 Notes | Redemption at On or After June 15, 2026 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 100% | |||||||||
7.75% 2027 Notes | Redemption before June 15, 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 107.75% | |||||||||
7.75% 2027 Notes | Redemption when changes in Control | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 101% | |||||||||
7.75% 2027 Notes | Maximum | Redemption before June 15, 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Percentage of principle amount of debt redeemed | 40% | |||||||||
7.54% 2027 Notes | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Aggregate principal amount | $ 150 | |||||||||
Long-term debt | $ 150 | $ 150 | ||||||||
Interest rate (as a percent) | 7.54% | 7.54% | 7.54% | 7.54% | ||||||
Aggregate principal amount repurchased | $ 150 | |||||||||
Issue Price (as a percent) | 98.25% | |||||||||
7.54% 2027 Notes | Redemption in period of 12 months beginning on June 25, 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 105.655% | |||||||||
7.54% 2027 Notes | Redemption in period of 12 months beginning on June 25, 2025 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 103.77% | |||||||||
7.54% 2027 Notes | Redemption after June 25, 2026 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 101.885% | |||||||||
7.54% 2027 Notes | Redemption before June 25, 2024 | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 100% | |||||||||
Percentage of principle amount of debt redeemed | 40% | |||||||||
7.54% 2027 Notes | Change of control occurs | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Debt instrument redemption price percentage | 101% | |||||||||
DigitalGlobe | Syndicated Credit Facility | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Aggregate principal amount | $ 3,750 | |||||||||
DigitalGlobe | Senior secured first lien revolving credit facility | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Term of debt | 4 years | |||||||||
DigitalGlobe | Senior Secured First Lien Operating Facility | ||||||||||
Long-term debt and interest expense, net | ||||||||||
Term of debt | 4 years |
Long term debt and interest exp
Long term debt and interest expense, net - Deferred Financing (Details) - Deferred financing - USD ($) $ in Millions | Dec. 10, 2019 | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term debt and interest expense, net | |||
Long-term debt | $ 19 | $ 26 | |
Properties in Palo Alto, California | |||
Long-term debt and interest expense, net | |||
Net proceeds | $ 291 | ||
Long-term debt | $ 33 | ||
Lease term | 10 years | ||
Weighted average discount rate | 4.62% |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expenses | |||
Interest on long-term debt | $ 156 | $ 144 | $ 191 |
Loss on debt extinguishment | 53 | 41 | 7 |
Interest on orbital securitization liability | 3 | 4 | 5 |
Imputed interest and other | 1 | 2 | 2 |
Interest expense on advance payments from customers | 3 | ||
Capitalized interest | (55) | (40) | (33) |
Interest expense, net | $ 158 | $ 151 | $ 175 |
Long term debt and interest e_2
Long term debt and interest expense, net - Annual contractual principal repayments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finance leases | ||
2023 | $ 4 | |
2024 | 1 | |
Total minimum lease payments | 5 | |
Debt discount and issuance costs | ||
Total | (98) | $ (39) |
Total | ||
2023 | 21 | |
2024 | 18 | |
2025 | 17 | |
2026 | 18 | |
2027 | 793 | |
Thereafter | 1,425 | |
Total principal payments | 2,292 | |
Debt discount and issuance costs | (98) | (39) |
Total long-term debt | 2,194 | $ 2,086 |
Revolving credit facility | ||
Long-term debt | ||
2027 | 125 | |
Total | 125 | |
Term Loan B | ||
Long-term debt | ||
2023 | 15 | |
2024 | 15 | |
2025 | 15 | |
2026 | 15 | |
2027 | 15 | |
Thereafter | 1,418 | |
Total | 1,493 | |
7.75% 2027 Notes | ||
Long-term debt | ||
2027 | 500 | |
Total | 500 | |
7.54% 2027 Notes | ||
Long-term debt | ||
2027 | 150 | |
Total | 150 | |
Deferred financing | ||
Long-term debt | ||
2023 | 2 | |
2024 | 2 | |
2025 | 2 | |
2026 | 3 | |
2027 | 3 | |
Thereafter | 7 | |
Total | $ 19 |
Financial instruments and fai_3
Financial instruments and fair value disclosures - Financial instruments measured at fair value (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Orbital receivables | $ 392 | $ 481 |
Assets fair value | 413 | 484 |
Liabilities | ||
Long-term debt | 2,168 | 2,132 |
Liabilities fair value | 2,168 | 2,136 |
Interest rate swaps | ||
Assets | ||
Derivative financial instruments | 21 | 3 |
Liabilities | ||
Derivative financial instruments | 4 | |
Level 2 | ||
Assets | ||
Orbital receivables | 392 | 481 |
Assets fair value | 413 | 484 |
Liabilities | ||
Long-term debt | 2,168 | 2,132 |
Liabilities fair value | 2,168 | 2,136 |
Level 2 | Interest rate swaps | ||
Assets | ||
Derivative financial instruments | $ 21 | 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 | 1 Months Ended | 12 Months Ended | ||||
Apr. 29, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 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 | 351 | 417 | ||||
Long-term debt excluding finance leases, deferred financing and other | 2,045 | $ 2,055 | ||||
Interest rate swaps | Syndicated Credit Facility | ||||||
Financial instruments and fair value disclosures | ||||||
Long-term debt at variable rate | $ 1,000 | |||||
Interest rate swaps | Cash flow hedges | Syndicated Credit Facility | ||||||
Financial instruments and fair value disclosures | ||||||
Maturities of interest rate swaps | $ 500 | |||||
Notional amount | $ 500 | |||||
Derivative, Average Fixed Interest Rate | 1.71% | |||||
Interest rate swaps | Cash flow hedges | Syndicated Credit Facility | Forecast | ||||||
Financial instruments and fair value disclosures | ||||||
Maturities of interest rate swaps | $ 500 | $ 500 |
Derivatives and Hedging - Cash
Derivatives and Hedging - Cash flow hedges (Details) - Interest rate swaps - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 29, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 22, 2022 | |
Syndicated Credit Facility | ||||||
Derivatives and Hedging | ||||||
Long-term debt at variable rate | $ 1,000 | |||||
Syndicated Credit Facility | Cash flow hedges | ||||||
Derivatives and Hedging | ||||||
Average interest rate | 1.71% | |||||
Notional amount | $ 500 | |||||
Maturities of interest rate swaps | $ 500 | |||||
Syndicated Credit Facility | Cash flow hedges | Forecast | ||||||
Derivatives and Hedging | ||||||
Maturities of interest rate swaps | $ 500 | $ 500 | ||||
Derivatives designated as hedging instruments | ||||||
Derivatives and Hedging | ||||||
Notional amount | $ 1,000 | $ 1,000 | ||||
Derivatives designated as hedging instruments | Maximum | ||||||
Derivatives and Hedging | ||||||
Contract term | 1 year 6 months | 1 year 6 months |
Derivatives and Hedging - Earni
Derivatives and Hedging - Earnings and other comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instruments | |||
Effective portion of gains and losses included in other comprehensive income | $ 22 | $ 19 | $ (3) |
Estimated loss expected to be recognized in Net income (loss) | (19) | ||
Derivatives designated as hedging instruments | Interest rate swaps | |||
Derivative instruments | |||
Effective portion of gains and losses included in other comprehensive income | $ 22 | $ 19 | $ (3) |
Stockholders' Equity - Componen
Stockholders' Equity - Components of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | $ 1,462 | ||
Balance at the end of period | 1,387 | $ 1,462 | |
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (53) | (120) | $ 41 |
Other comprehensive income | 37 | 67 | (93) |
Tax benefit (expense) | (68) | ||
Balance at the end of period | (16) | (53) | (120) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (1) | 1 | 126 |
Other comprehensive income | (1) | (2) | (47) |
Tax benefit (expense) | (78) | ||
Balance at the end of period | (2) | (1) | 1 |
Unrecognized (loss) gain on on interest rate swaps | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (1) | (20) | (12) |
Other comprehensive income | 22 | 19 | (3) |
Tax benefit (expense) | (5) | ||
Balance at the end of period | 21 | (1) | (20) |
Pension and other postretirement plan adjustments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of period | (51) | (101) | (73) |
Other comprehensive income | 16 | 50 | (43) |
Tax benefit (expense) | 15 | ||
Balance at the end of period | $ (35) | $ (51) | $ (101) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 26, 2021 | Mar. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Stockholders' equity | |||||
Common stock issuance, net of transaction fees (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||
Public offering price | $ 40 | ||||
Proceeds from common stock | $ 380 | $ 380 | |||
Transaction fees | $ 20 | ||||
Series A Preferred Stock | |||||
Stockholders' equity | |||||
Preferred stock, authorized shares | 0 | 0 | 2,400,000 | ||
Preferred stock, shares outstanding | 0 | 0 | 0 |
Revenues - Remaining performanc
Revenues - Remaining performance obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue | |
Remaining performance obligation | $ 3,194 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue | |
Remaining performance obligation | $ 1,250 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue | |
Remaining performance obligation | $ 757 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue | |
Remaining performance obligation | $ 1,187 |
Expected timing of satisfaction | 1 year |
Revenues - Contract liabilities
Revenues - Contract liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract liabilities | ||
Contract liabilities | $ 364 | $ 289 |
Increase in contract liability due to consideration received in advance | 75 | |
Earth intelligence | ||
Contract liabilities | ||
Contract liabilities | 107 | 32 |
Space Infrastructure | ||
Contract liabilities | ||
Contract liabilities | $ 257 | $ 257 |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenues by source (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Revenues | $ 1,605 | $ 1,770 | $ 1,723 |
Cumulative adjustment to revenue including EAC costs | (95) | ||
Product | |||
Revenue | |||
Revenues | 527 | 678 | 633 |
Service | |||
Revenue | |||
Revenues | 1,078 | 1,092 | 1,090 |
Jupiter 3 Satellite | |||
Revenue | |||
Cumulative adjustment to revenue | 92 | ||
Cumulative catch-up to EAC costs | 3 | ||
Cumulative adjustment to revenue including EAC costs | 95 | ||
Earth intelligence | |||
Revenue | |||
Revenues | 1,078 | 1,093 | 1,081 |
Space Infrastructure | |||
Revenue | |||
Revenues | 626 | 740 | 721 |
Cumulative adjustment to revenue | 30 | ||
Cumulative adjustment, incremental costs | 3 | ||
Space Infrastructure | Commercial Satellite Contract | |||
Revenue | |||
EAC adjustments on loss contracts | 50 | 32 | |
Space Infrastructure | Jupiter 3 Satellite | Commercial Satellite Contract | |||
Revenue | |||
EAC adjustments on loss contracts | 12 | ||
Space Systems | |||
Revenue | |||
Orbital interest revenue | 24 | 27 | 30 |
Services | Jupiter 3 Satellite | |||
Revenue | |||
Cumulative adjustment to revenue | 29 | ||
Cumulative catch-up to EAC costs | 1 | ||
Operating Segments | Product | |||
Revenue | |||
Revenues | 527 | 678 | 633 |
Operating Segments | Service | |||
Revenue | |||
Revenues | 1,078 | 1,092 | 1,090 |
Operating Segments | Earth intelligence | |||
Revenue | |||
Revenues | 1,078 | 1,093 | 1,081 |
Operating Segments | Earth intelligence | Service | |||
Revenue | |||
Revenues | 1,078 | 1,092 | 1,081 |
Operating Segments | Space Infrastructure | |||
Revenue | |||
Revenues | 626 | 740 | 721 |
Operating Segments | Space Infrastructure | Product | |||
Revenue | |||
Revenues | 527 | 678 | 633 |
Operating Segments | Space Infrastructure | Service | |||
Revenue | |||
Revenues | 9 | ||
Intersegment eliminations | |||
Revenue | |||
Revenues | (99) | (63) | (79) |
Intersegment eliminations | Earth intelligence | |||
Revenue | |||
Revenues | 1 | ||
Intersegment eliminations | Space Infrastructure | |||
Revenue | |||
Revenues | $ 99 | $ 62 | $ 79 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of revenues on geographic location of customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Revenues | $ 1,605 | $ 1,770 | $ 1,723 |
U.S. | |||
Revenue | |||
Revenues | 1,315 | 1,431 | 1,406 |
Australia | |||
Revenue | |||
Revenues | 43 | 70 | 37 |
Asia | |||
Revenue | |||
Revenues | 95 | 97 | 96 |
Middle East | |||
Revenue | |||
Revenues | 57 | 54 | 54 |
Europe | |||
Revenue | |||
Revenues | 65 | 80 | 84 |
Canada | |||
Revenue | |||
Revenues | 16 | 10 | 10 |
Other. | |||
Revenue | |||
Revenues | 9 | 11 | 11 |
South America | |||
Revenue | |||
Revenues | $ 5 | $ 17 | $ 25 |
Revenues - Disaggregation of _3
Revenues - Disaggregation of revenues from significant customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Revenues | $ 1,605 | $ 1,770 | $ 1,723 |
U.S. Federal Government and agencies | |||
Revenue | |||
Revenues | 952 | 936 | 1,062 |
Commercial and other | |||
Revenue | |||
Revenues | 653 | 834 | 661 |
Earth intelligence | |||
Revenue | |||
Revenues | 1,078 | 1,093 | 1,081 |
Space Infrastructure | |||
Revenue | |||
Revenues | $ 626 | $ 740 | $ 721 |
Space Infrastructure | Revenue | Customer concentration risk | Commercial customer | |||
Revenue | |||
Concentration risk, percentage | 12% | 19% | 11% |
Operating Segments | Earth intelligence | |||
Revenue | |||
Revenues | $ 1,078 | $ 1,093 | $ 1,081 |
Operating Segments | Earth intelligence | U.S. Federal Government and agencies | |||
Revenue | |||
Revenues | 722 | 701 | 774 |
Operating Segments | Earth intelligence | Commercial and other | |||
Revenue | |||
Revenues | 356 | 392 | 307 |
Operating Segments | Space Infrastructure | |||
Revenue | |||
Revenues | 626 | 740 | 721 |
Operating Segments | Space Infrastructure | U.S. Federal Government and agencies | |||
Revenue | |||
Revenues | 230 | 235 | 288 |
Operating Segments | Space Infrastructure | Commercial and other | |||
Revenue | |||
Revenues | 396 | 505 | 433 |
Intersegment eliminations | |||
Revenue | |||
Revenues | (99) | (63) | (79) |
Intersegment eliminations | Commercial and other | |||
Revenue | |||
Revenues | (99) | (63) | (79) |
Intersegment eliminations | Earth intelligence | |||
Revenue | |||
Revenues | 1 | ||
Intersegment eliminations | Space Infrastructure | |||
Revenue | |||
Revenues | $ 99 | $ 62 | $ 79 |
Segment information - Operating
Segment information - Operating performance (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment information | |||
Number of reportable segments | segment | 2 | ||
Total revenues | $ 1,605 | $ 1,770 | $ 1,723 |
Corporate and other expenses | (91) | (89) | (61) |
Restructuring | (18) | (2) | 0 |
Offset obligation fulfillment | (12) | ||
Transaction and integration related expense | (6) | (1) | (7) |
Amortization of deferred ERP implementation costs | (2) | ||
(Loss) on remeasurement of equity interest | (1) | ||
Gain on remeasurement of equity interest | 85 | ||
(Gain) loss on orbital receivables allowance | 49 | (14) | |
Impairment losses, including inventory | (33) | ||
Insurance recoveries | 1 | ||
Loss (gain) on sale of assets | (1) | ||
Depreciation and amortization | (239) | (290) | (348) |
Interest expense, net | (158) | (151) | (175) |
Interest income | 2 | 3 | 3 |
Equity in income from joint ventures, net of tax | (1) | ||
(Loss) income before taxes | (148) | 33 | (69) |
Other (income) expense | Vricon | |||
Segment information | |||
Gain on remeasurement of equity interest | 85 | ||
Operating Segments | Earth Intelligence | |||
Segment information | |||
Total revenues | 1,078 | 1,093 | 1,081 |
Adjusted EBITDA | 445 | 492 | 513 |
Operating Segments | Space Infrastructure. | |||
Segment information | |||
Total revenues | 626 | 740 | 721 |
Adjusted EBITDA | (32) | 46 | (3) |
Intersegment eliminations | |||
Segment information | |||
Total revenues | (99) | (63) | (79) |
Adjusted EBITDA | $ (36) | $ (25) | $ (27) |
Segment information - Capital e
Segment information - Capital expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment information | |||
Capital expenditures, property, plant and equipment | $ 226 | $ 135 | $ 221 |
Capital expenditures, intangible assets | 93 | 99 | 87 |
Capital expenditures | 319 | 234 | 308 |
Operating Segments | Earth Intelligence | |||
Segment information | |||
Capital expenditures, property, plant and equipment | 148 | 79 | 147 |
Capital expenditures, intangible assets | 88 | 87 | 79 |
Capital expenditures | 236 | 166 | 226 |
Operating Segments | Space Infrastructure. | |||
Segment information | |||
Capital expenditures, property, plant and equipment | 17 | 16 | 21 |
Capital expenditures, intangible assets | 1 | ||
Capital expenditures | 17 | 16 | 22 |
Intersegment eliminations | |||
Segment information | |||
Capital expenditures, property, plant and equipment | 61 | 40 | 53 |
Capital expenditures, intangible assets | 5 | 12 | 7 |
Capital expenditures | $ 66 | $ 52 | $ 60 |
Impairment Losses (Details)
Impairment Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earth Intelligence | prepaid assets | |||
Property, plant and equipment | |||
Property, plant and equipment impairment losses | $ 0 | $ 0 | $ 33 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | Asset Impairment Charges | Asset Impairment Charges |
Space Infrastructure. | |||
Property, plant and equipment | |||
Orbital receivables impairment | $ 14 |
Employee benefit plans - Narrat
Employee benefit plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit plans | |||
Expense recorded | $ 21 | $ 19 | $ 16 |
Pension | |||
Employee benefit plans | |||
Aggregate accumulated benefit obligation | 444 | 585 | |
Employer contributions | 1 | $ 1 | |
Other Postretirement | |||
Employee benefit plans | |||
Employer contributions | $ 1 |
Employee benefit plans - Change
Employee benefit plans - Changes in benefit obligations, plan assets and funded status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liabilities recognized in the Consolidated Balance Sheets: | |||
Pension and other postretirement benefits | $ (106) | $ (134) | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 585 | 624 | |
Service cost | 3 | 3 | |
Interest cost | 14 | 14 | $ 17 |
Actuarial losses (gains) | (125) | (23) | |
Benefits paid | (33) | (33) | |
Benefit obligation at end of year | 444 | 585 | 624 |
Change in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 462 | 444 | |
Actual return on assets | (83) | 51 | |
Employer contributions | 1 | 1 | |
Benefits paid | (31) | (31) | |
Expenses paid | (3) | (3) | (2) |
Expenses paid | (3) | (3) | |
Fair value of plan assets at end of year | 346 | 462 | 444 |
Unfunded status at end of year | (98) | (123) | |
Liabilities recognized in the Consolidated Balance Sheets: | |||
Accrued compensation and benefits | (1) | (1) | |
Pension and other postretirement benefits | (97) | (122) | |
Total | (98) | (123) | |
Decrease in pension benefit obligation | 141 | ||
Decrease in fair value of plan assets | 116 | ||
Aggregate accumulated benefit obligation | 444 | 585 | |
Other Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 13 | 14 | |
Interest cost | 1 | ||
Actuarial losses (gains) | (2) | (1) | |
Benefits paid | (1) | ||
Benefit obligation at end of year | 10 | 13 | $ 14 |
Change in fair value of plan assets: | |||
Employer contributions | 1 | ||
Benefits paid | (1) | ||
Unfunded status at end of year | (10) | (13) | |
Liabilities recognized in the Consolidated Balance Sheets: | |||
Accrued compensation and benefits | (1) | (1) | |
Pension and other postretirement benefits | (9) | (12) | |
Total | $ (10) | $ (13) |
Employee benefit plans - Net lo
Employee benefit plans - Net loss and prior service credit balances (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension | ||
Employee benefit plans | ||
Net (loss) gain | $ (45) | $ (60) |
Other Postretirement | ||
Employee benefit plans | ||
Net (loss) gain | $ 10 | $ 9 |
Employee benefit plans - Weight
Employee benefit plans - Weighted average assumptions to determine benefit obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Pension | ||
Employee benefit plans | ||
Discount rate | 4.90% | 2.60% |
Other Postretirement | ||
Employee benefit plans | ||
Discount rate | 4.90% | 2.60% |
Employee benefit plans - Compon
Employee benefit plans - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Employee benefit plans | |||
Interest cost | $ 14 | $ 14 | $ 17 |
Expected return on plan assets | (29) | (29) | (24) |
Actual return on plan assets | (83) | 51 | |
Amortization of net loss | 6 | 1 | |
Expenses paid | 3 | 3 | 2 |
Net periodic benefit credit | (12) | (6) | (4) |
Other Postretirement | |||
Employee benefit plans | |||
Interest cost | 1 | ||
Amortization of net loss | (1) | $ (1) | |
Settlement gain (loss) | (4) | ||
Net periodic benefit credit | $ (1) | $ (4) |
Employee benefit plans - Summar
Employee benefit plans - Summarizes the other changes in plan assets and benefit obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Employee benefit plans | |||
Net (gain) loss | $ (14) | $ (44) | $ 40 |
Amortization of net (loss) gain | (6) | (1) | |
Total recognized in other comprehensive (income) loss | (14) | (50) | 39 |
Total recognized in net periodic benefit credit and other comprehensive (income) loss | (26) | (56) | 35 |
Other Postretirement | |||
Employee benefit plans | |||
Net (gain) loss | (3) | (1) | 4 |
Amortization of net (loss) gain | 1 | $ 1 | |
Total recognized in other comprehensive (income) loss | (2) | $ 4 | |
Total recognized in net periodic benefit credit and other comprehensive (income) loss | $ (3) |
Employee benefit plans - Weig_2
Employee benefit plans - Weighted average assumptions used to determine net periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Employee benefit plans | |||
Discount rate | 2.60% | 2.20% | 3% |
Expected long-term return on plan assets | 6.50% | 6.50% | 6.50% |
Other Postretirement | |||
Employee benefit plans | |||
Discount rate | 2.60% | 2.20% | 3% |
Employee benefit plans - Target
Employee benefit plans - Target Asset Allocations (Details) | Dec. 31, 2022 |
Target asset allocations for each major category of the plan assets | |
Target | 100% |
Actual | 100% |
Percentage points to rebalance the portfolio within | 2% |
Cash and cash equivalents | |
Target asset allocations for each major category of the plan assets | |
Actual | 1% |
U.S. equity securities | |
Target asset allocations for each major category of the plan assets | |
Target | 71% |
Actual | 71% |
Fixed income | |
Target asset allocations for each major category of the plan assets | |
Target | 29% |
Actual | 28% |
Employee benefit plans - Plan a
Employee benefit plans - Plan assets by asset category segregated by level (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Employee benefit plans | |||
Total assets at fair value | $ 346 | $ 462 | $ 444 |
Level 1 | |||
Employee benefit plans | |||
Total assets at fair value | 3 | 3 | |
Cash and cash equivalents | |||
Employee benefit plans | |||
Total assets at fair value | 3 | 3 | |
Cash and cash equivalents | Level 1 | |||
Employee benefit plans | |||
Total assets at fair value | 3 | 3 | |
Other | |||
Employee benefit plans | |||
Total assets at fair value | $ 343 | $ 459 |
Employee benefit plans - Estima
Employee benefit plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Estimated Future Benefit Payments | |
2023 | $ 33 |
2024 | 33 |
2025 | 33 |
2026 | 34 |
2027 | 34 |
Years 2028 - 2032 | 162 |
Pension | |
Estimated Future Benefit Payments | |
2023 | 32 |
2024 | 32 |
2025 | 32 |
2026 | 33 |
2027 | 33 |
Years 2028 - 2032 | 158 |
Other Postretirement | |
Estimated Future Benefit Payments | |
2023 | 1 |
2024 | 1 |
2025 | 1 |
2026 | 1 |
2027 | 1 |
Years 2028 - 2032 | $ 4 |
Stock-based compensation plan_2
Stock-based compensation plans (Details) | 1 Months Ended | 12 Months Ended | |||||||
Mar. 27, 2019 CAD ($) shares | May 31, 2021 shares | May 31, 2020 shares | Jul. 31, 2017 shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 $ / shares shares | Dec. 31, 2019 shares | Dec. 31, 2017 shares | |
Share-based payment plans | |||||||||
Stockholders approved and reserved for issuance | 2,000,000 | 2,550,000 | |||||||
Share Appreciation Rights | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 | 0 | 0 | ||||||
Share Appreciation Rights | Non-employee Director | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 | ||||||||
LTIP Plans | Share Appreciation Rights | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 | ||||||||
Pre 2017 LTIP | Share Appreciation Rights | |||||||||
Share-based payment plans | |||||||||
Shares authorized | 6,820,000 | ||||||||
2017 LTIP | Share Appreciation Rights | |||||||||
Share-based payment plans | |||||||||
Shares authorized | 1,900,000 | ||||||||
Term of award | 10 years | ||||||||
Omnibus Plan | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 | ||||||||
Shares reserved for issuance | 1,100,000 | ||||||||
Term of award | 10 years | ||||||||
Omnibus Plan | Non-employee Director | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 | ||||||||
Omnibus Plan | Share Appreciation Rights | |||||||||
Share-based payment plans | |||||||||
Term of award | 10 years | ||||||||
2019 Incentive Award Plan | |||||||||
Share-based payment plans | |||||||||
Shares reserved for issuance | 2,525,000 | ||||||||
2019 Incentive Award Plan | Restricted Share Units | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 1,160,014 | ||||||||
Granted (per share) | $ / shares | $ 28.06 | ||||||||
Deferred Share Unit Plan | |||||||||
Share-based payment plans | |||||||||
Shares reserved for issuance | 100,000 | ||||||||
Employee Share Purchase Plan | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 5,000,000 | 464,833 | 308,554 | 543,184 | |||||
Percentage of market value of shares that employees can purchase | 85% | ||||||||
Maximum employee contribution of base salary | 10% | ||||||||
Maximum employee contribution of base salary per annum | $ | $ 25,000 | ||||||||
Granted (per share) | $ / shares | $ 22.10 | $ 27.71 | $ 9.75 | ||||||
DigitalGlobe Equity Plan | Restricted Share Units | |||||||||
Share-based payment plans | |||||||||
Granted (in shares) | 0 |
Stock-based compensation plan_3
Stock-based compensation plans - Share Appreciation Rights (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 USD ($) employee shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 shares | Dec. 31, 2017 shares | |
Additional disclosures | ||||||
Incremental Expense | $ | $ 3 | |||||
Number of employees affected due to modification of settlement | employee | 37 | |||||
Omnibus Plan | ||||||
Number of Awards | ||||||
Granted (in shares) | 0 | |||||
Share Appreciation Rights | ||||||
Number of Awards | ||||||
Outstanding at the beginning of the period (in shares) | 921,136 | |||||
Granted (in shares) | 0 | 0 | 0 | |||
Exercised (in shares) | (17,400) | 20,450 | 0 | |||
Cancelled or expired (in shares) | (38,717) | |||||
Outstanding at the end of the period (in shares) | 865,019 | 921,136 | ||||
Unrecognized compensation expense | $ | $ 0 | |||||
Vested and expected to vest at the end of the period | 865,019 | |||||
Exercisable at the end of the period | 865,019 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the period (per share) | $ / shares | $ 51.13 | |||||
Vested (per share) | $ / shares | 48.91 | |||||
Cancelled or expired (per share) | $ / shares | 49.07 | |||||
Outstanding at the end of the period (per share) | $ / shares | 51.27 | $ 51.13 | ||||
Vested and expected to vest at the end of the period | $ / shares | 51.27 | |||||
Exercisable at the end of the period | $ / shares | $ 51.27 | |||||
Contractual Term (in years) | ||||||
Outstanding at the end of the period | 4 years 3 months 14 days | |||||
Vested and expected to vest at the end of the period | 4 years 3 months 14 days | |||||
Exercisable at the end of the period | 4 years 3 months 14 days | |||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the period | $ | $ 2,204,569 | |||||
Vested and expected to vest at the end of the period | $ | 2,204,569 | |||||
Exercisable at the end of the period | $ | 2,204,569 | |||||
Additional disclosures | ||||||
Unrecognized compensation expense | $ | $ 0 | |||||
Share Appreciation Rights | 2017 LTIP | ||||||
Additional disclosures | ||||||
Vesting period | 4 years | |||||
Vesting percentage | 25% | |||||
Share Appreciation Rights | Omnibus Plan | ||||||
Additional disclosures | ||||||
Vesting period | 4 years | |||||
Vesting percentage | 25% | |||||
SARs Liability Classified Awards | ||||||
Number of Awards | ||||||
Granted (in shares) | 0 | 0 | 0 | |||
Outstanding at the end of the period (in shares) | 39,070 | |||||
SARs Accounted for as Equity Classified Awards | ||||||
Number of Awards | ||||||
Outstanding at the end of the period (in shares) | 825,949 | |||||
Restricted Share Units | 2019 Plan | ||||||
Number of Awards | ||||||
Outstanding at the beginning of the period (in shares) | 2,299,133 | |||||
Granted (in shares) | 1,160,014 | |||||
Vested (in shares) | (1,302,113) | |||||
Cancelled or expired (in shares) | (239,578) | |||||
Outstanding at the end of the period (in shares) | 1,917,456 | 2,299,133 | ||||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at the beginning of the period (per share) | $ / shares | $ 24.15 | |||||
Granted (per share) | $ / shares | 28.06 | |||||
Vested (per share) | $ / shares | 21.79 | |||||
Cancelled or expired (per share) | $ / shares | 27 | |||||
Outstanding at the end of the period (per share) | $ / shares | $ 27.76 | $ 24.15 | ||||
Additional disclosures | ||||||
Vesting period | 3 years | |||||
Vesting percentage | 33.33% | |||||
Restricted Share Units | Omnibus Plan | ||||||
Number of Awards | ||||||
Outstanding at the beginning of the period (in shares) | 24,938 | |||||
Vested (in shares) | (24,938) | |||||
Outstanding at the end of the period (in shares) | 24,938 | |||||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at the beginning of the period (per share) | $ / shares | $ 3.99 | |||||
Vested (per share) | $ / shares | $ 3.99 | |||||
Outstanding at the end of the period (per share) | $ / shares | $ 3.99 | |||||
Restricted Share Units | DigitalGlobe Equity Plan | ||||||
Number of Awards | ||||||
Granted (in shares) | 0 | |||||
Restricted Share Units | Omnibus And 2019 Equity Incentive Plan | ||||||
Number of Awards | ||||||
Outstanding at the end of the period (in shares) | 1,327,051 | |||||
Unrecognized compensation expense | $ | $ 17 | |||||
Weighted Average Grant Date Fair Value | ||||||
Total fair value of vested awards | $ | 28 | $ 20 | $ 14 | |||
Additional disclosures | ||||||
Unrecognized compensation expense | $ | $ 17 | |||||
Weighted average remaining period (in years) | 10 months 24 days | |||||
RSUs Liability Classified Awards | ||||||
Number of Awards | ||||||
Outstanding at the beginning of the period (in shares) | 0 | 0 | ||||
Modified (in shares) | (532,365) | |||||
Outstanding at the end of the period (in shares) | 0 | 0 | 0 | 0 | ||
Additional disclosures | ||||||
Cash paid to settle liability classified awards | $ | $ 4 |
Stock-based compensation plan_4
Stock-based compensation plans - Performance Shares Units (Details) - Performance Share Unit $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 | |
Share-based payment plans | ||||
Vesting period | 3 years | |||
Number of common stock | 2 | |||
Payout percentage | 200% | |||
Payout percentage in equity | 100% | |||
Payout percentage in cash | 100% | |||
Summary of awards | ||||
Outstanding at the beginning of the period (in shares) | shares | 903,565 | |||
Granted (in shares) | shares | 266,294 | |||
Performance adjustment (in shares) | shares | 125,274 | |||
Vested (in shares) | shares | (700,526) | |||
Cancelled or expired (in shares) | shares | (13,567) | |||
Outstanding at the end of the period (in shares) | shares | 581,040 | 903,565 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding at the beginning of the period (per share) | $ / shares | $ 20.42 | |||
Granted (per share) | $ / shares | 31.84 | |||
Performance adjustment (per share) | $ / shares | 31.84 | |||
Vested (per share) | $ / shares | 10.70 | |||
Cancelled or expired (per share) | $ / shares | 37.65 | |||
Outstanding at the end of the period (per share) | $ / shares | $ 37.13 | $ 20.42 | ||
Additional disclosures | ||||
Cash used to settle awards | $ | $ 16 | $ 8 | $ 3 | |
Unrecognized compensation expense | $ | $ 7 | |||
Weighted average remaining period (in years) | 1 year 2 months 12 days | |||
Valuation of Share-Based Compensation Awards | ||||
Risk-free interest rate | 0.30% | 0.90% | ||
Risk-free interest rate, minimum | 1.70% | 0.90% | ||
Risk-free interest rate, maximum | 3.80% | |||
Dividend yield | 0.10% | 0.30% | ||
Expected lives (in years) | 2 years 9 months 18 days | |||
Volatility | 79% | |||
Volatility, minimum | 71% | 98% | 79% | |
Volatility, maximum | 86% | 104% | ||
Minimum | ||||
Share-based payment plans | ||||
Performance percentage | 0% | |||
Valuation of Share-Based Compensation Awards | ||||
Dividend yield | 0.10% | |||
Expected lives (in years) | 2 years 3 months 18 days | 2 years 7 months 6 days | ||
Maximum | ||||
Share-based payment plans | ||||
Performance percentage | 200% | |||
Valuation of Share-Based Compensation Awards | ||||
Dividend yield | 0.20% | |||
Expected lives (in years) | 2 years 10 months 24 days | 2 years 9 months 18 days |
Stock-based compensation plan_5
Stock-based compensation plans - Deferred Share Units (Details) - Deferred Share Units (DSU) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Awards | |||
Outstanding at the beginning of the period (in shares) | 32,895 | ||
Issued (in shares) | 0 | 0 | |
Redeemed (in shares) | 0 | 0 | 32,715 |
Outstanding at the end of the period (in shares) | 32,895 | 32,895 | |
Weighted Average Issuance Price | |||
Outstanding at the beginning of the period (per share) | $ 56.01 | ||
Outstanding at the end of the period (per share) | $ 56.01 | $ 56.01 |
Stock-based compensation plan_6
Stock-based compensation plans - Share-based compensation expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selling, general, and administrative expense, Product costs, and Service costs | |||
Share-based payment plans | |||
Share-based compensation expense before taxes | $ 48 | $ 45 | $ 43 |
Stock-based compensation plan_7
Stock-based compensation plans - Valuation of Share-Based Compensation Awards (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SARs Liability Classified Awards | |||
Valuation of Share-Based Compensation Awards | |||
Granted (in shares) | 0 | 0 | 0 |
Equity-settled SARs, RSUs and DSUs | |||
Valuation of Share-Based Compensation Awards | |||
Granted (in shares) | 0 | 0 | 0 |
Performance Share Unit | |||
Valuation of Share-Based Compensation Awards | |||
Risk-free interest rate | 0.30% | 0.90% | |
Risk-free interest rate, minimum | 1.70% | 0.90% | |
Risk-free interest rate, maximum | 3.80% | ||
Dividend yield | 0.10% | 0.30% | |
Expected lives (in years) | 2 years 9 months 18 days | ||
Volatility | 79% | ||
Volatility, minimum | 71% | 98% | 79% |
Volatility, maximum | 86% | 104% | |
Granted (in shares) | 266,294 | ||
Performance Share Unit | Minimum | |||
Valuation of Share-Based Compensation Awards | |||
Dividend yield | 0.10% | ||
Expected lives (in years) | 2 years 3 months 18 days | 2 years 7 months 6 days | |
Performance Share Unit | Maximum | |||
Valuation of Share-Based Compensation Awards | |||
Dividend yield | 0.20% | ||
Expected lives (in years) | 2 years 10 months 24 days | 2 years 9 months 18 days |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes | |||
U.S. | $ (154) | $ 25 | $ (69) |
Non-U.S | 6 | 8 | |
(Loss) income before taxes | (148) | 33 | (69) |
Current tax expense (benefit) | |||
Federal | (12) | (5) | |
State | 1 | (1) | |
Non-U.S | 1 | ||
Total | 1 | (12) | (5) |
Deferred tax expense (benefit) | |||
Federal | (1) | (17) | |
Non-U.S. | 1 | ||
Total | 1 | (1) | (17) |
Income tax expense (benefit) | $ 2 | $ (13) | $ (22) |
Income taxes - Income tax rate
Income taxes - Income tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes | |||
U.S. statutory income tax rate | 21% | 21% | 21% |
Expected income tax (benefit) expense at statutory rate | $ (31) | $ 7 | $ (14) |
State tax (net of federal benefit) | 1 | (1) | |
Non-deductible expenses | 3 | 2 | 2 |
Change in valuation allowance | 38 | (10) | 49 |
Base Erosion and Anti-Abuse Tax | (13) | (5) | |
Outside basis difference in assets held for sale | (39) | ||
Tax credits | (11) | 1 | (3) |
Stock-based compensation | 2 | 1 | 6 |
Remeasurement of Vricon equity interest | (18) | ||
Income tax expense (benefit) | $ 2 | $ (13) | $ (22) |
Effective income tax rate | (1.00%) | (39.00%) | 32% |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of deferred tax assets and liabilities: | |||
Tax benefit of losses carried forward | $ 108 | $ 153 | $ 209 |
Interest expense carried forward | 42 | 32 | |
Tax credits | 96 | 81 | 84 |
Trade and other payables | 29 | 41 | 35 |
Employee benefits | 34 | 41 | 52 |
Unrealized gains and losses | (3) | 3 | 20 |
Leasing transactions | 46 | 51 | 55 |
Capitalized research and experimental expenditures | 36 | ||
Other | 1 | ||
Deferred tax assets | 388 | 402 | 456 |
Valuation allowance | (256) | (215) | (228) |
Deferred tax assets, net of valuation allowance | 132 | 187 | 228 |
Property, plant and equipment | (26) | (64) | (72) |
Construction contract liabilities | (7) | (5) | (10) |
Goodwill and intangibles | (67) | (81) | (106) |
Leasing transactions | (32) | (35) | (38) |
Deferred tax liabilities | (132) | (185) | (226) |
Deferred tax assets, net | $ 2 | $ 2 | |
Increase in valuation allowance | $ 41 |
Income taxes - Tax credit carry
Income taxes - Tax credit carryforward (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Federal | |
Income taxes | |
Operating losses carried forward | $ 310 |
Net operating losses carried forward subject to expiration | 63 |
Net operating losses carried forward not subject to expiration | 247 |
Tax credits carried forward research and development | 84 |
Foreign | |
Income taxes | |
Operating losses carried forward | 4 |
Net operating losses carried forward not subject to expiration | 4 |
US | |
Income taxes | |
Tax credits carried forward research and development | 1 |
State | |
Income taxes | |
Operating losses carried forward | 875 |
Net operating losses carried forward subject to expiration | 737 |
Net operating losses carried forward not subject to expiration | 138 |
Tax credits carried forward research and development | $ 12 |
Income taxes - Changes in unrec
Income taxes - Changes in unrecognized tax benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in unrecognized tax benefits | |||
Balance, beginning of the year | $ 17 | $ 9 | $ 7 |
Gross increases related to prior period tax positions | 7 | 2 | |
Gross increases related to current period tax positions | 2 | 1 | 1 |
Gross decreases related to prior period tax positions | (1) | ||
Balance, end of year | 19 | 17 | 9 |
Unrecognized tax benefits | $ 19 | $ 17 | $ 9 |
Net (loss) income per common _3
Net (loss) income per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income per common share | |||
(Loss) income from continuing operations | $ (150) | $ 46 | $ (46) |
Income from discontinued operations, net of tax | 349 | ||
Net (loss) income | $ (150) | $ 46 | $ 303 |
Weighted average number of common shares outstanding - basic (in shares) | 74 | 70.6 | 60.7 |
Weighted dilutive effect of equity awards (in shares) | 2.6 | ||
Weighted average number of common shares outstanding - diluted (in shares) | 74 | 73.2 | 60.7 |
Basic net (loss) income per common share | |||
Basic (Loss) income from continuing operations (in dollars per share) | $ (2.03) | $ 0.65 | $ (0.76) |
Basic Income from discontinued operations, net of tax (in dollars per share) | 5.75 | ||
Basic net (loss) income per common share (in dollars per share) | (2.03) | 0.65 | 4.99 |
Diluted net (loss) income per common share | |||
Diluted (Loss) income from continuing operations (in dollars per share) | (2.03) | 0.63 | (0.76) |
Diluted Income from discontinued operations, net of tax (in dollars per share) | 5.75 | ||
Diluted net (loss) income per common share (in dollars per share) | $ (2.03) | $ 0.63 | $ 4.99 |
Net (loss) income per common _4
Net (loss) income per common share - Anti-dilutive securities (Details) - shares | 12 Months Ended | ||||
Mar. 26, 2021 | Mar. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income per common share | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,000,000 | 1,000,000 | 4,000,000 | ||
Common stock issuance, net of transaction fees (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2019 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||||||
Other Commitment | $ 12 | $ 12 | $ 12 | |||
Payment related to offset obligation | 4 | |||||
Commitments to be paid in year one | 4 | 4 | ||||
Commitment to be paid in year two | 4 | 4 | ||||
Other Nonoperating Income (Expense) | $ 12 | (1) | $ 8 | $ 104 | ||
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 | $ 27 | ||||
Settled Litigation | Stockholder class action | ||||||
Commitments and Contingencies | ||||||
Recovery amount sought | $ 700 |
Supplemental cash flow (Details
Supplemental cash flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental operating cash flow information | |||
Cash paid for interest | $ 140 | $ 133 | $ 205 |
Income tax (refunds), net of payments | (3) | (14) | 1 |
Supplemental non-cash investing and financing activities: | |||
Accrued capital expenditures | 21 | $ 14 | $ 13 |
Portion of Term Loan B accounted for as a debt modification | $ 103 |