Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information [Abstract]

Segment Information

(3) Segment Information

Orbital's products and services are grouped into three reportable business segments:  launch vehicles, satellites and space systems and advanced space programs.  Reportable segments are generally organized based upon product lines.  Corporate office transactions that have not been attributed to a particular segment, as well as consolidating eliminations and adjustments, are reported in corporate and other.  The primary products and services from which the company's reportable segments derive revenues are:

• Launch Vehicles - Rockets that are used as small- and medium-class space launch vehicles that place satellites into Earth orbit and escape trajectories, interceptor and target vehicles for missile defense systems and suborbital launch vehicles that place payloads into a variety of high-altitude trajectories.

• Satellites and Space Systems - Small- and medium-class satellites that are used to enable global and regional communications and broadcasting, conduct space-related scientific research, collect imagery and other remotely-sensed data about the Earth, carry out interplanetary and other deep-space exploration missions and demonstrate new space technologies.

• Advanced Space Programs - Human-rated space systems for Earth-orbit and deep-space exploration, and small- and medium-class satellites used for national security space programs and to demonstrate new space technologies, and advanced flight systems for atmospheric and space missions.

Intersegment sales are generally negotiated and accounted for under terms and conditions that are similar to other commercial and government contracts.  Substantially all of the company's assets and operations are located within the United States.

The following table presents operating information and identifiable assets by reportable segment (in thousands):

	Quarters Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Launch Vehicles:
Revenues	$	125,840		$	134,027		$	263,081		$	268,319
Operating income		11,040			10,521			22,779			22,554
Identifiable assets		190,374			195,294	(2)		190,374			195,294	(2)
Capital expenditures		1,835			2,976			4,970			4,673
Depreciation and amortization		4,401			4,618			8,790			8,877
Satellites and Space Systems:
Revenues	$	87,244		$	93,828		$	170,034		$	194,611
Operating income		2,713			10,637			6,010			21,475
Identifiable assets		306,407			288,343	(2)		306,407			288,343	(2)
Capital expenditures		3,522			5,337			7,592			10,373
Depreciation and amortization		2,088			2,074			4,119			4,232
Advanced Space Programs:
Revenues	$	110,178		$	116,620		$	217,491		$	229,879
Operating income		8,120			5,148			16,066			13,384
Identifiable assets		354,188			448,015	(2)		354,188			448,015	(2)
Capital expenditures		2,012			1,311			2,590			2,762
Depreciation and amortization		2,557			2,179			5,018			4,035
Corporate and Other:
Revenues(1)	$	(5,138	)	$	(11,394	)	$	(9,197	)	$	(24,915	)
Operating loss		(6,613	)(3)		-			(6,613	)(3)		-
Identifiable assets		456,210			353,109	(2)		456,210			353,109	(2)
Capital expenditures		351			1,812			1,011			2,025
Depreciation and amortization		1,589			1,563			3,179			3,114
Consolidated:
Revenues	$	318,124		$	333,081		$	641,409		$	667,894
Operating income		15,260			26,306			38,242			57,413
Identifiable assets		1,307,179			1,284,761	(2)		1,307,179			1,284,761	(2)
Capital expenditures		7,720			11,436			16,163			19,833
Depreciation and amortization		10,635			10,434			21,106			20,258

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

	Quarters Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Launch Vehicles	$	3.9	$	10.3	$	6.9	$	22.0
Satellites and Space Systems		1.0		0.9		1.9		2.3
Advanced Space Programs		0.2		0.2		0.4		0.6
Total intersegment revenues	$	5.1	$	11.4	$	9.2	$	24.9

(2) As of December 31, 2013.

(3) The corporate and other loss in 2014 is comprised solely of professional fees and other costs pertaining to the proposed merger (see Note 2).