Changes in revenues from year to year are influenced by the size, timing and number of satellite contracts awarded in the current and preceding years and the length of the construction period for satellite contracts awarded. Revenues on satellite contracts are recognized using the cost-to-cost method of accounting to determine the percentage of completion over the construction period, which typically ranges between 20 to 36 months and up to 48 months in certain situations. Adjusted EBITDA margins can vary from quarter to quarter due to the mix of our revenues and changes in our estimated costs to complete as our risks are retired and as our estimated costs to complete are increased or decreased based on contract performance.

Revenues from the Space Infrastructure segment increased to $224 million from $153 million, or by $71 million, for the three months ended December 31, 2020, compared to the same period in 2019. Revenues increased primarily as a result of the impact of increased volumes on commercial programs of $47 million during the three months ended December 31, 2020, compared to the same period in 2019. The increase was also driven by an increase in volume related to U.S. government contracts of $24 million, compared to the same period in 2019.

Revenues increased to $721 million from $706 million, or by $15 million, for the year ended December 31, 2020, compared to the same period in 2019. Revenues increased primarily as a result of an increase in volume related to U.S. government contracts of $137 million during the year ended December 31, 2020, compared to the same period in 2019. This increase in revenue was partially offset by the impact of reduced volumes on commercial programs of $122 million including a $9 million impact due to increases in estimated costs and an associated change in the EAC profit margin of a commercial satellite program due to the identification of a design anomaly in the final stage of a testing process. Revenues were also negatively impacted by $27 million of estimated COVID-19 related EAC growth during the period and are included in the above-mentioned results. The increases in the EACs are due to increases in estimated program costs associated with the COVID-19 operating posture and the estimated impact of certain items such as supplier delays and increased labor hours. These costs are considered incremental and separable from normal operations.

Adjusted EBITDA for the Space Infrastructure segment increased to $13 million of income from a loss of $19 million, or by $32 million, for the three months ended December 31, 2020, compared to the same period in 2019. The increase in the Space Infrastructure segment is primarily related to higher margins on commercial programs of $36 million driven by a change in program mix related to the completion of less profitable programs offset by new, more profitable programs. The increase was partially offset by an increase in labor of $4 million and a $2 million increase in stock compensation.

Adjusted EBITDA changed to a loss of $3 million from a loss of $17 million, or by $14 million, for the year ended December 31, 2020, compared to the same period in 2019. The increase in the Space Infrastructure segment is primarily related to higher margins and favorable EACs outside of the estimated COVID-19 impacts discussed below, on commercial programs of $68 million. This has been driven by a change in program mix related to the completion of less profitable programs offset by new, more profitable programs along with $8 million less of program losses on a developmental program for the year ended December 31, 2020, compared to the same period in 2019. The increase in commercial programs are partially offset by an estimated $27 million negative impact related to our COVID-19 operating posture. The increase is also partially offset by a $16 million increase in costs due to a change in the compensation structure from retention payments to bonuses which were not included in segment Adjusted EBITDA in 2019, a $9 million negative impact on the above-mentioned commercial satellite program with a design anomaly and a recovery of a previously reserved amount of $7 million in 2019 which did not reoccur in 2020. The remainder of the change was related to a decrease in cost of product and services and selling, general, and administrative expenses.

Corporate and other expenses

Corporate and other expenses include items such as corporate office costs, regulatory costs, executive and director compensation, foreign exchange gains and losses, retention costs, and fees for legal and consulting services.

Corporate and other expenses decreased to $18 million from $26 million, or by $8 million, for the three months ended December 31, 2020, compared to the same period in 2019. The decrease was primarily driven by a $6 million decrease in retention costs related to a 2019 program within the Space Infrastructure segment and a decrease in selling, general and administrative costs of $2 million for the three months ended December 31, 2020, compared to the same period in 2019.

Corporate and other expenses decreased to $61 million from $86 million, or by $25 million, for the year ended December 31, 2020, compared to the same period in 2019. The decrease was primarily driven by a $24 million decrease in retention costs related to a 2019 program within the Space Infrastructure segment. The decrease was also driven by a $5 million foreign exchange gain for the year ended December 31, 2020, compared to a $2 million foreign exchange loss for the year ended December 31, 2019. These decreases were partially offset by a $13 million increase in stock-based compensation expense primarily driven by a higher stock price.

Intersegment eliminations

Intersegment eliminations are related to projects between our segments, including WorldView Legion. Intersegment eliminations have decreased to $6 million from $9 million, or by $3 million, for the three months ended December 31, 2020 compared to the same period in 2019, primarily related to a decrease in intersegment satellite construction activity.

Intersegment eliminations have decreased to $27 million from $29 million, or by $2 million, for the year ended December 31, 2020 compared to the same period in 2019, primarily related to a decrease in intersegment satellite construction activity

MAXAR TECHNOLOGIES INC. Consolidated Statements of Operations (In millions, except per share amounts)
		Year Ended
		December 31,
		2020				2019					2018
Revenues:
Product		$	633			$	560			$	697
Service			1,090				1,106				1,107
Total revenues			1,723				1,666				1,804
Costs and expenses:
Product costs, excluding depreciation and amortization			615				593				775
Service costs, excluding depreciation and amortization			378				382				313
Selling, general and administrative			332				325				446
Depreciation and amortization			348				376				439
Impairment losses			47				14				586
Satellite insurance recovery			—				(183	)			—
Loss (gain) on sale of assets			1				(136	)			(33	)
Operating income (loss)			2				295				(722	)
Interest expense, net			175				219				200
Other (income) expense, net			(104	)			(1	)			1
(Loss) income before taxes			(69	)			77				(923	)
Income tax (benefit) expense			(22	)			5				(48	)
Equity in income from joint ventures, net of tax			(1	)			(11	)			(2	)
(Loss) income from continuing operations			(46	)			83				(873	)
Discontinued operations:
Income (loss) from operations of discontinued operations, net of tax			32				26				(377	)
Gain on disposal of discontinued operations, net of tax			317				—				—
Income (loss) from discontinued operations, net of tax			349				26				(377	)
Net income (loss)		$	303			$	109			$	(1,250	)
Basic net income (loss) per common share:
(Loss) income from continuing operations		$	(0.76	)		$	1.39			$	(15.03	)
Income (loss) from discontinued operations, net of tax			5.75				0.44				(6.49	)
Basic net income (loss) per common share		$	4.99			$	1.83			$	(21.52	)
Diluted net income (loss) per common share:
(Loss) income from continuing operations		$	(0.76	)		$	1.38			$	(15.03	)
Income (loss) from discontinued operations, net of tax			5.75				0.43				(6.49	)
Diluted net income (loss) per common share		$	4.99			$	1.81			$	(21.52	)

MAXAR TECHNOLOGIES INC. Consolidated Balance Sheets (In millions, except per share amounts)
		December 31,				December 31,
		2020				2019
Assets
Current assets:
Cash and cash equivalents		$	27			$	59
Trade and other receivables, net			327				357
Inventory			31				20
Advances to suppliers			24				42
Prepaid and other current assets			59				32
Current assets held for sale			—				751
Total current assets			468				1,261
Non-current assets:
Orbital receivables, net			361				382
Property, plant and equipment, net			883				758
Intangible assets, net			895				991
Non-current operating lease assets			163				176
Goodwill			1,627				1,455
Other non-current assets			86				134
Total assets		$	4,483			$	5,157
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	115			$	153
Accrued liabilities			65				130
Accrued compensation and benefits			105				93
Contract liabilities			278				271
Current portion of long-term debt			8				30
Current operating lease liabilities			41				40
Other current liabilities			51				49
Current liabilities held for sale			—				230
Total current liabilities			663				996
Non-current liabilities:
Pension and other postretirement benefits			192				191
Contract liabilities			1				4
Operating lease liabilities			158				173
Long-term debt			2,414				2,915
Other non-current liabilities			119				116
Total liabilities			3,547				4,395
Commitments and contingencies
Stockholders’ equity:
Common stock ($0.0001 par value, 240 million common shares authorized; 61.2 million and 59.9 million outstanding at December 31, 2020 and 2019, respectively)			—				—
Additional paid-in capital			1,818				1,784
Accumulated deficit			(763	)			(1,064	)
Accumulated other comprehensive (loss) income			(120	)			41
Total Maxar stockholders' equity			935				761
Noncontrolling interest			1				1
Total stockholders' equity			936				762
Total liabilities and stockholders' equity		$	4,483			$	5,157

MAXAR TECHNOLOGIES INC. Consolidated Statements of Cash Flows (In millions)
		Year Ended
		December 31,
		2020				2019				2018
Cash flows (used in) provided by:
Operating activities:
Net income (loss)		$	303			$	109			$	(1,250	)
(Income) loss from operations of discontinued operations, net of tax			(32	)			(26	)			377
Gain on disposal of discontinued operations, net of tax			(317	)			—				—
(Loss) income from continuing operations			(46	)			83				(873	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Impairment losses including inventory			47				17				651
Depreciation and amortization			348				376				439
Gain from remeasurement of equity interest in acquiree			(85	)			—				—
Amortization of debt issuance costs and other non-cash interest expense			16				11				9
Stock-based compensation expense			43				20				20
Loss from early extinguishment of debt			7				22				—
Loss (gain) on sale of assets			1				(136	)			(33	)
Deferred income tax benefit			(17	)			—				(48	)
Equity in income from joint ventures, net of tax			(1	)			(11	)			(2	)
Other			2				7				28
Changes in operating assets and liabilities:
Trade and other receivables			33				(20	)			(19	)
Accounts payables and liabilities			(84	)			17				86
Contract liabilities			5				(117	)			(158	)
Other			(26	)			(11	)			14
Cash provided by operating activities - continuing operations			243				258				114
Cash (used in) provided operating activities - discontinued operations			(54	)			59				25
Cash provided by operating activities			189				317				139
Investing activities:
Purchase of property, plant and equipment and development or purchase of software			(308	)			(314	)			(206	)
Acquisition, net of cash acquired			(120	)			—				—
Sale of assets			—				280				68
Return of capital from discontinued operations			20				28				—
Other			2				—				9
Cash used in investing activities - continuing operations			(406	)			(6	)			(129	)
Cash provided by (used in) investing activities - discontinued operations			723				(7	)			(21	)
Cash provided by (used in) investing activities			317				(13	)			(150	)
Financing activities:
Net payment of revolving credit facility			—				(595	)			—
Net proceeds from issuance of 2023 Notes, 2027 Notes, and other long-term debt			147				980				104
Repurchase of 2023 Notes, including premium			(169	)			—				—
Repayments of long-term debt			(525	)			(523	)			(24	)
Refinancing fees paid to creditors			—				(20	)			—
Repurchase of orbital receivables			—				(24	)			—
Settlement of securitization liability			(11	)			(20	)			(15	)
Proceeds from securitization of orbital receivables			—				—				18
Other			3				(6	)			(68	)
Cash (used in) provided by financing activities - continuing operations			(555	)			(208	)			15
Cash used in financing activities - discontinued operations			(24	)			(30	)			(2	)
Cash (used in) provided by financing activities			(579	)			(238	)			13
(Decrease) increase in cash, cash equivalents, and restricted cash			(73	)			66				2
Effect of foreign exchange on cash, cash equivalents, and restricted cash			(5	)			—				(1	)
Cash, cash equivalents, and restricted cash, beginning of year			109				43				42
Cash, cash equivalents, and restricted cash, end of year		$	31			$	109			$	43
Reconciliation of cash flow information:
Cash and cash equivalents		$	27			$	105			$	35
Restricted cash included in prepaid and other current assets			4				1				7
Restricted cash included in other non-current assets			—				3				1
Total cash, cash equivalents, and restricted cash		$	31			$	109			$	43

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9  Next Page »