0000000.25P1YP1Y0.3333P4Y0.25P1YP10Y00000000http://fasb.org/us-gaap/2022#OperatingLeaseRightOfUseAssethttp://fasb.org/us-gaap/2022#OperatingLeaseRightOfUseAssethttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityCurrenthttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtCurrenthttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityNoncurrenthttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityNoncurrenthttp://fasb.org/us-gaap/2022#LongTermDebtNoncurrenthttp://fasb.org/us-gaap/2022#LongTermDebtNoncurrent0001121142--12-312022FYfalseP6MP10YP2Y00P10YP12Y630000007270000074700000http://fasb.org/us-gaap/2022#AssetImpairmentChargeshttp://fasb.org/us-gaap/2022#AssetImpairmentChargeshttp://fasb.org/us-gaap/2022#AssetImpairmentCharges00011211422021-03-262021-03-260001121142us-gaap:CommonStockMember2020-01-012020-12-310001121142us-gaap:RetainedEarningsMember2022-12-310001121142us-gaap:NoncontrollingInterestMember2022-12-310001121142us-gaap:AdditionalPaidInCapitalMember2022-12-310001121142us-gaap:RetainedEarningsMember2021-12-310001121142us-gaap:NoncontrollingInterestMember2021-12-310001121142us-gaap:AdditionalPaidInCapitalMember2021-12-310001121142us-gaap:RetainedEarningsMember2020-12-310001121142us-gaap:NoncontrollingInterestMember2020-12-310001121142us-gaap:AdditionalPaidInCapitalMember2020-12-310001121142us-gaap:RetainedEarningsMember2019-12-310001121142us-gaap:NoncontrollingInterestMember2019-12-310001121142us-gaap:AdditionalPaidInCapitalMember2019-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2022-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2021-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2020-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2019-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-3100011211422021-03-220001121142us-gaap:StockAppreciationRightsSARSMembermaxr:Pre2017LongTermIncentivePlanMember2017-12-310001121142us-gaap:StockAppreciationRightsSARSMembermaxr:LongTermIncentivePlan2017Member2017-12-3100011211422021-05-012021-05-3100011211422020-05-012020-05-310001121142srt:MinimumMemberus-gaap:PerformanceSharesMember2021-01-012021-12-310001121142srt:MaximumMemberus-gaap:PerformanceSharesMember2021-01-012021-12-310001121142maxr:OmnibusEquityIncentivePlanMember2017-07-012017-07-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusAnd2019EquityIncentivePlanMember2021-01-012021-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusAnd2019EquityIncentivePlanMember2020-01-012020-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusEquityIncentivePlanMember2022-01-012022-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:LongTermIncentivePlan2019Member2022-12-310001121142maxr:EquitySettledStockAppreciationRightsMember2022-12-310001121142maxr:DeferredShareUnitsMember2022-12-310001121142maxr:CashSettledStockAppreciationRightsMember2022-12-310001121142maxr:CashSettledRestrictedSharesUnitsMember2022-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusEquityIncentivePlanMember2021-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:LongTermIncentivePlan2019Member2021-12-310001121142us-gaap:PerformanceSharesMember2021-12-310001121142maxr:DeferredShareUnitsMember2021-12-310001121142maxr:CashSettledRestrictedSharesUnitsMember2021-12-310001121142maxr:CashSettledRestrictedSharesUnitsMember2020-12-310001121142us-gaap:StockAppreciationRightsSARSMembermaxr:LongTermIncentivePlansMember2022-01-012022-12-310001121142maxr:EquitySettledStockAppreciationRightsRestrictedStockUnitsAndDeferredShareUnitsMember2022-01-012022-12-310001121142maxr:EmployeeSharePurchasePlanMember2022-01-012022-12-310001121142maxr:CashSettledStockAppreciationRightsMember2022-01-012022-12-310001121142maxr:EquitySettledStockAppreciationRightsRestrictedStockUnitsAndDeferredShareUnitsMember2021-01-012021-12-310001121142maxr:EmployeeSharePurchasePlanMember2021-01-012021-12-310001121142maxr:CashSettledStockAppreciationRightsMember2021-01-012021-12-310001121142maxr:EquitySettledStockAppreciationRightsRestrictedStockUnitsAndDeferredShareUnitsMember2020-01-012020-12-310001121142maxr:EmployeeSharePurchasePlanMember2020-01-012020-12-310001121142maxr:CashSettledStockAppreciationRightsMember2020-01-012020-12-310001121142maxr:OmnibusEquityIncentivePlanMember2019-01-012019-12-310001121142maxr:NonemployeeDirectorMembermaxr:OmnibusEquityIncentivePlanMember2017-07-012017-07-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:DigitalglobeEquityPlanMember2017-01-012017-12-310001121142maxr:NonemployeeDirectorMemberus-gaap:StockAppreciationRightsSARSMember2017-01-012017-12-310001121142us-gaap:StockAppreciationRightsSARSMembermaxr:OmnibusEquityIncentivePlanMember2022-01-012022-12-310001121142us-gaap:StockAppreciationRightsSARSMembermaxr:LongTermIncentivePlan2017Member2022-01-012022-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusAndDigitalglobeEquityIncentivePlanMember2022-01-012022-12-3100011211422025-01-012022-12-3100011211422024-01-012022-12-3100011211422023-01-012022-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembermaxr:EarthIntelligenceMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:EarthIntelligenceMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:EarthIntelligenceMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceMember2022-01-012022-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:CommercialAndOtherMember2022-01-012022-12-310001121142us-gaap:MiddleEastMember2022-01-012022-12-310001121142srt:SouthAmericaMember2022-01-012022-12-310001121142srt:EuropeMember2022-01-012022-12-310001121142srt:AsiaMember2022-01-012022-12-310001121142maxr:U.s.FederalGovernmentAndAgenciesMember2022-01-012022-12-310001121142maxr:SpaceInfrastructureMember2022-01-012022-12-310001121142maxr:OtherGeographicalLocationThanUnitedStatesAndAsiaAndCanadaAndEuropeAndAustraliaAndSouthAmericaMember2022-01-012022-12-310001121142maxr:EarthIntelligenceMember2022-01-012022-12-310001121142maxr:CommercialAndOtherMember2022-01-012022-12-310001121142country:US2022-01-012022-12-310001121142country:CA2022-01-012022-12-310001121142country:AU2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:CommercialAndOtherMember2021-01-012021-12-310001121142us-gaap:MiddleEastMember2021-01-012021-12-310001121142srt:SouthAmericaMember2021-01-012021-12-310001121142srt:EuropeMember2021-01-012021-12-310001121142srt:AsiaMember2021-01-012021-12-310001121142maxr:U.s.FederalGovernmentAndAgenciesMember2021-01-012021-12-310001121142maxr:OtherGeographicalLocationThanUnitedStatesAndAsiaAndCanadaAndEuropeAndAustraliaAndSouthAmericaMember2021-01-012021-12-310001121142maxr:EarthIntelligenceMember2021-01-012021-12-310001121142maxr:CommercialAndOtherMember2021-01-012021-12-310001121142country:US2021-01-012021-12-310001121142country:CA2021-01-012021-12-310001121142country:AU2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembermaxr:EarthIntelligenceMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:U.s.FederalGovernmentAndAgenciesMembermaxr:EarthIntelligenceMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:CommercialAndOtherMembermaxr:EarthIntelligenceMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ServiceMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMemberus-gaap:ProductMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceMember2020-01-012020-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:IntersegmentEliminationMembermaxr:CommercialAndOtherMember2020-01-012020-12-310001121142us-gaap:MiddleEastMember2020-01-012020-12-310001121142srt:SouthAmericaMember2020-01-012020-12-310001121142srt:EuropeMember2020-01-012020-12-310001121142srt:AsiaMember2020-01-012020-12-310001121142maxr:U.s.FederalGovernmentAndAgenciesMember2020-01-012020-12-310001121142maxr:SpaceInfrastructureMember2020-01-012020-12-310001121142maxr:OtherGeographicalLocationThanUnitedStatesAndAsiaAndCanadaAndEuropeAndAustraliaAndSouthAmericaMember2020-01-012020-12-310001121142maxr:EarthIntelligenceMember2020-01-012020-12-310001121142maxr:CommercialAndOtherMember2020-01-012020-12-310001121142country:US2020-01-012020-12-310001121142country:CA2020-01-012020-12-310001121142country:AU2020-01-012020-12-310001121142us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-12-310001121142us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-12-310001121142us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-12-310001121142srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2022-01-012022-12-310001121142srt:MinimumMemberus-gaap:EquipmentMember2022-01-012022-12-310001121142srt:MinimumMemberus-gaap:ComputerEquipmentMember2022-01-012022-12-310001121142srt:MinimumMemberus-gaap:BuildingMember2022-01-012022-12-310001121142srt:MinimumMembermaxr:SatellitesMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:EquipmentMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:ComputerEquipmentMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:BuildingMember2022-01-012022-12-310001121142srt:MaximumMembermaxr:SatellitesMember2022-01-012022-12-310001121142us-gaap:LandImprovementsMember2022-01-012022-12-310001121142us-gaap:LeaseholdImprovementsMember2022-12-310001121142us-gaap:FurnitureAndFixturesMember2022-12-310001121142us-gaap:EquipmentMember2022-12-310001121142us-gaap:ConstructionInProgressMember2022-12-310001121142us-gaap:ComputerEquipmentMember2022-12-310001121142maxr:SatellitesMember2022-12-310001121142us-gaap:LeaseholdImprovementsMember2021-12-310001121142us-gaap:FurnitureAndFixturesMember2021-12-310001121142us-gaap:EquipmentMember2021-12-310001121142us-gaap:ConstructionInProgressMember2021-12-310001121142us-gaap:ComputerEquipmentMember2021-12-310001121142maxr:SatellitesMember2021-12-310001121142maxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-01-012022-12-310001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-01-012020-12-310001121142us-gaap:SeriesAPreferredStockMember2022-12-310001121142us-gaap:SeriesAPreferredStockMember2021-12-310001121142us-gaap:SeriesAPreferredStockMember2020-12-3100011211422021-03-222021-03-2200011211422022-07-012022-09-300001121142us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-12-3100011211422022-09-300001121142maxr:PropertiesInPaloAltoCaliforniaMember2019-12-100001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2022-01-012022-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2021-01-012021-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-12-310001121142us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2020-01-012020-12-310001121142us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-12-310001121142us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-12-310001121142maxr:StockholderClassActionMemberus-gaap:SettledLitigationMember2019-11-302019-11-300001121142maxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMember2022-12-310001121142maxr:RevolvingLoanPayableMember2022-12-310001121142maxr:ColoradoActionMemberus-gaap:PendingLitigationMember2022-01-012022-12-310001121142us-gaap:LetterOfCreditMember2022-12-310001121142us-gaap:RevolvingCreditFacilityMember2019-11-040001121142us-gaap:RevolvingCreditFacilityMember2019-10-310001121142us-gaap:RevolvingCreditFacilityMember2021-12-310001121142srt:MinimumMember2022-12-310001121142srt:MaximumMember2022-12-310001121142maxr:PrepaidAssetsCommercialProviderGroundStationServicesMembermaxr:EarthIntelligenceSegmentMember2022-01-012022-12-310001121142maxr:PrepaidAssetsCommercialProviderGroundStationServicesMembermaxr:EarthIntelligenceSegmentMember2021-01-012021-12-310001121142maxr:PrepaidAssetsCommercialProviderGroundStationServicesMembermaxr:EarthIntelligenceSegmentMember2020-01-012020-12-310001121142maxr:SpaceInfrastructureMember2020-12-310001121142maxr:WovenwareIncMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142maxr:OtherMembermaxr:EarthIntelligenceMember2021-01-012021-12-310001121142maxr:WovenwareIncMember2021-01-012021-12-310001121142maxr:OtherMember2021-01-012021-12-310001121142maxr:EarthIntelligenceMember2020-12-310001121142us-gaap:RevolvingCreditFacilityMember2022-06-142022-06-140001121142srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2022-01-012022-12-310001121142srt:MinimumMemberus-gaap:CustomerRelationshipsMember2022-01-012022-12-310001121142srt:MinimumMemberus-gaap:ComputerSoftwareIntangibleAssetMember2022-01-012022-12-310001121142srt:MinimumMembermaxr:TradeNamesAndOtherMember2022-01-012022-12-310001121142srt:MinimumMembermaxr:BacklogMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:CustomerRelationshipsMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:ComputerSoftwareIntangibleAssetMember2022-01-012022-12-310001121142srt:MaximumMembermaxr:TradeNamesAndOtherMember2022-01-012022-12-310001121142srt:MaximumMembermaxr:BacklogMember2022-01-012022-12-310001121142us-gaap:NoncompeteAgreementsMember2022-01-012022-12-310001121142maxr:ImageLibraryMember2022-01-012022-12-310001121142us-gaap:TrademarksAndTradeNamesMember2022-12-310001121142us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310001121142us-gaap:CustomerRelationshipsMember2022-12-310001121142us-gaap:ComputerSoftwareIntangibleAssetMember2022-12-310001121142us-gaap:TrademarksAndTradeNamesMember2021-12-310001121142us-gaap:TechnologyBasedIntangibleAssetsMember2021-12-310001121142us-gaap:CustomerRelationshipsMember2021-12-310001121142us-gaap:ComputerSoftwareIntangibleAssetMember2021-12-310001121142maxr:ImageLibraryMember2021-12-310001121142maxr:BacklogMember2021-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusAnd2019EquityIncentivePlanMember2022-12-310001121142us-gaap:PerformanceSharesMember2022-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:OmnibusAnd2019EquityIncentivePlanMember2022-01-012022-12-310001121142us-gaap:PerformanceSharesMember2021-01-012021-12-310001121142us-gaap:PerformanceSharesMember2020-01-012020-12-310001121142us-gaap:DiscontinuedOperationsHeldforsaleMembermaxr:MdaBusinessMember2020-04-080001121142srt:MaximumMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001121142maxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-06-220001121142us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001121142maxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001121142us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001121142us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2022-12-310001121142us-gaap:FixedIncomeFundsMember2022-12-310001121142us-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2022-12-310001121142us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001121142us-gaap:OtherDebtSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001121142us-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001121142us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001121142us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2021-12-310001121142us-gaap:OtherDebtSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-310001121142us-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2021-12-310001121142us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2020-12-310001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-12-310001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-12-310001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-12-310001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2022-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2021-12-310001121142maxr:UnitedStatesTaxAuthorityMember2022-12-310001121142us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-12-310001121142us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-12-310001121142us-gaap:OtherNoncurrentAssetsMember2022-12-310001121142us-gaap:OtherNoncurrentAssetsMember2021-12-310001121142maxr:DigitalglobeInc.Membermaxr:SeniorSecuredFirstLienRevolvingCreditFacilityMember2017-10-052017-10-050001121142maxr:DigitalglobeInc.Membermaxr:SeniorSecuredFirstLienOperatingFacilityMember2017-10-052017-10-050001121142srt:MaximumMembermaxr:RedemptionBeforeJune152024Membermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionWhenChangesInControlMembermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionInPeriodOfTwelveMonthsBeginningOnJune252025Membermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionInPeriodOfTwelveMonthsBeginningOnJune252024Membermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionBeforeJune152024Membermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionAtOnOrAfterJune152026Membermaxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:RedemptionInPeriodOfTwelveMonthsBeginningOnJune252025Membermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142maxr:RedemptionInPeriodOfTwelveMonthsBeginningOnJune252024Membermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142maxr:RedemptionBeforeJune252024Membermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142maxr:RedemptionAfterJune252026Membermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142maxr:EventOfChangeOfControlMembermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2022-12-310001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2022-06-140001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2022-06-140001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2021-03-260001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2020-12-310001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-12-310001121142maxr:MaturingInOctober2024Membermaxr:SeniorSecuredFirstLienOperatingFacilityMember2022-12-310001121142maxr:MaturingInDecember2023Membermaxr:SeniorSecuredFirstLienRevolvingCreditFacilityMember2022-12-310001121142maxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-140001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2020-06-250001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-250001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2019-12-110001121142maxr:DigitalglobeInc.Membermaxr:SyndicatedCreditFacilityMember2017-10-050001121142us-gaap:RevolvingCreditFacilityMember2022-12-310001121142maxr:TermLoanBMember2022-12-310001121142maxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-12-310001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2022-12-310001121142maxr:DeferredFinancingFromSaleAndLeasebackMember2022-12-310001121142maxr:TermLoanBMember2022-06-140001121142maxr:TermLoanBMember2021-12-310001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2021-12-310001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2021-12-310001121142maxr:DeferredFinancingFromSaleAndLeasebackMember2021-12-310001121142maxr:VriconIncMembermaxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-07-010001121142srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-06-142022-06-140001121142srt:MinimumMemberus-gaap:RevolvingCreditFacilityMembermaxr:AdjustedBaseRateMember2022-06-142022-06-140001121142srt:MinimumMembermaxr:TermLoanBMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-06-142022-06-140001121142srt:MinimumMembermaxr:TermLoanBMembermaxr:AdjustedBaseRateMember2022-06-142022-06-140001121142srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-06-142022-06-140001121142srt:MaximumMemberus-gaap:RevolvingCreditFacilityMembermaxr:AdjustedBaseRateMember2022-06-142022-06-140001121142srt:MaximumMembermaxr:TermLoanBMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-06-142022-06-140001121142srt:MaximumMembermaxr:TermLoanBMembermaxr:AdjustedBaseRateMember2022-06-142022-06-140001121142us-gaap:ServiceMember2022-01-012022-12-310001121142us-gaap:ProductMember2022-01-012022-12-310001121142us-gaap:ServiceMember2021-01-012021-12-310001121142us-gaap:ProductMember2021-01-012021-12-310001121142us-gaap:ServiceMember2020-01-012020-12-310001121142us-gaap:ProductMember2020-01-012020-12-310001121142maxr:SpaceInfrastructureMember2022-12-310001121142maxr:EarthIntelligenceMember2022-12-310001121142maxr:SpaceInfrastructureMember2021-12-310001121142maxr:EarthIntelligenceMember2021-12-310001121142maxr:Jupiter3SatelliteMembermaxr:SpaceInfrastructureMembermaxr:CommercialSatelliteContractMember2022-01-012022-12-310001121142maxr:SpaceInfrastructureMembermaxr:CommercialSatelliteContractMember2022-01-012022-12-310001121142maxr:SpaceInfrastructureMembermaxr:CommercialSatelliteContractMember2021-01-012021-12-310001121142maxr:CommercialCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembermaxr:SpaceInfrastructureMember2022-01-012022-12-310001121142maxr:LargestCustomerMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMember2022-01-012022-12-310001121142maxr:CommercialCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembermaxr:SpaceInfrastructureMember2021-01-012021-12-310001121142maxr:LargestCustomerMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMember2021-01-012021-12-310001121142maxr:CommercialCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembermaxr:SpaceInfrastructureMember2020-01-012020-12-310001121142us-gaap:RetainedEarningsMember2022-01-012022-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310001121142us-gaap:RetainedEarningsMember2021-01-012021-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310001121142us-gaap:RetainedEarningsMember2020-01-012020-12-310001121142us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-12-310001121142us-gaap:CommonStockMember2022-12-310001121142us-gaap:CommonStockMember2021-12-310001121142us-gaap:CommonStockMember2020-12-310001121142us-gaap:CommonStockMember2019-12-310001121142maxr:DeferredShareUnitPlanMember2022-12-310001121142maxr:LongTermIncentivePlan2019Member2019-12-310001121142maxr:OmnibusEquityIncentivePlanMember2017-07-3100011211422019-12-310001121142maxr:VriconIncMemberus-gaap:OtherNonoperatingIncomeExpenseMember2020-01-012020-12-310001121142maxr:WovenwareIncMember2022-11-010001121142maxr:VriconIncMember2020-01-012020-12-310001121142maxr:VriconIncMember2022-01-012022-12-310001121142maxr:VriconIncMember2020-07-010001121142us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-12-310001121142maxr:TermLoanBMember2020-01-012020-12-310001121142maxr:SellingGeneralAndAdministrativeExpenseProductCostsAndServiceCostsMember2022-01-012022-12-310001121142maxr:SellingGeneralAndAdministrativeExpenseProductCostsAndServiceCostsMember2021-01-012021-12-310001121142maxr:SellingGeneralAndAdministrativeExpenseProductCostsAndServiceCostsMember2020-01-012020-12-310001121142us-gaap:AdditionalPaidInCapitalMember2021-01-012021-12-310001121142maxr:UsGovernmentReceivableMember2022-12-310001121142maxr:OtherGovernmentsAndCommercialReceivableMember2022-12-310001121142maxr:UsGovernmentReceivableMember2021-12-310001121142maxr:OtherGovernmentsAndCommercialReceivableMember2021-12-310001121142maxr:WovenwareIncMember2022-11-012022-11-010001121142maxr:CashSettledRestrictedSharesUnitsMember2020-01-012020-12-310001121142maxr:EmployeeSharePurchasePlanMember2019-03-272019-03-270001121142maxr:DeferredShareUnitsMember2022-01-012022-12-310001121142maxr:DeferredShareUnitsMember2021-01-012021-12-310001121142maxr:DeferredShareUnitsMember2020-01-012020-12-310001121142us-gaap:StockAppreciationRightsSARSMember2021-12-310001121142maxr:CashSettledRestrictedSharesUnitsMember2020-10-012020-12-310001121142us-gaap:StockAppreciationRightsSARSMember2021-01-012021-12-310001121142us-gaap:StockAppreciationRightsSARSMember2020-01-012020-12-310001121142us-gaap:RestrictedStockUnitsRSUMembermaxr:LongTermIncentivePlan2019Member2022-01-012022-12-310001121142us-gaap:StockAppreciationRightsSARSMember2022-01-012022-12-310001121142us-gaap:StockAppreciationRightsSARSMember2022-12-310001121142maxr:DeferredFinancingFromSaleAndLeasebackMembermaxr:PropertiesInPaloAltoCaliforniaMember2019-12-100001121142srt:MinimumMembermaxr:PropertiesInPaloAltoCaliforniaMember2019-12-102019-12-100001121142srt:MaximumMembermaxr:PropertiesInPaloAltoCaliforniaMember2019-12-102019-12-100001121142maxr:DeferredFinancingFromSaleAndLeasebackMembermaxr:PropertiesInPaloAltoCaliforniaMember2019-12-102019-12-100001121142maxr:PropertiesInPaloAltoCaliforniaMember2020-01-012020-12-310001121142maxr:ElectroOpticalCommercialLayerProgramMember2022-01-012022-12-310001121142us-gaap:DiscontinuedOperationsHeldforsaleMembermaxr:MdaBusinessMember2020-01-012020-12-310001121142us-gaap:AdditionalPaidInCapitalMember2020-01-012020-12-310001121142srt:MinimumMemberus-gaap:PerformanceSharesMember2022-01-012022-12-310001121142srt:MaximumMemberus-gaap:PerformanceSharesMember2022-01-012022-12-310001121142maxr:FinancialCovenantLevelsUponDispositionOfBusinessForGreaterThan500MillionMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:SeniorSecuredNotes7.75PercentageDue2027Member2022-06-142022-06-140001121142maxr:SeniorSecuredNotes7.54PercentageDue2027Member2020-06-252020-06-250001121142us-gaap:PerformanceSharesMember2019-01-012019-12-3100011211422022-10-012022-12-310001121142us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001121142us-gaap:FairValueMeasurementsRecurringMember2022-12-310001121142us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001121142us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001121142us-gaap:FairValueMeasurementsRecurringMember2021-12-310001121142us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001121142maxr:SpaceSystemsSegmentMember2022-01-012022-12-310001121142maxr:SpaceSystemsSegmentMember2021-01-012021-12-310001121142maxr:SpaceSystemsSegmentMember2020-01-012020-12-310001121142us-gaap:StateAndLocalJurisdictionMember2022-12-310001121142us-gaap:ForeignCountryMember2022-12-310001121142us-gaap:DomesticCountryMember2022-12-310001121142us-gaap:PerformanceSharesMember2022-01-012022-12-310001121142us-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMember2021-01-012022-12-310001121142maxr:FinancialCovenantLevelsUponDispositionOfBusinessForGreaterThan500MillionMemberus-gaap:RevolvingCreditFacilityMember2019-11-042019-11-040001121142maxr:MergerAgreementWithGaileloParentIncMember2022-12-150001121142srt:ScenarioForecastMembermaxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-06-012024-06-300001121142srt:ScenarioForecastMembermaxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-06-012023-06-300001121142maxr:SyndicatedCreditFacilityMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-04-292022-04-290001121142maxr:ColoradoActionMemberus-gaap:OtherCurrentAssetsMemberus-gaap:PendingLitigationMember2022-12-310001121142us-gaap:AccruedLiabilitiesMemberus-gaap:DiscontinuedOperationsHeldforsaleMembermaxr:MdaBusinessMember2020-01-012020-12-310001121142srt:MaximumMember2022-01-012022-12-3100011211422020-10-012020-12-310001121142maxr:Sxm7SatelliteMember2021-01-012021-12-310001121142maxr:SpaceInfrastructureSegmentMember2020-01-012020-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310001121142us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-12-3100011211422021-12-3100011211422020-12-310001121142maxr:DebtInstrumentCovenantFiscalQuarterEndingOnOrPriorToDecember312022Membermaxr:SyndicatedCreditFacilityMember2022-06-142022-06-140001121142maxr:DebtInstrumentCovenantFiscalQuarterEndingOnOrAfterMarch312024Membermaxr:SyndicatedCreditFacilityMember2022-06-142022-06-140001121142maxr:DebtInstrumentCovenantFiscalQuarterEndingOnAndAfterMarch312023ThroughAndIncludingDecember312023Membermaxr:SyndicatedCreditFacilityMember2022-06-142022-06-140001121142us-gaap:RevolvingCreditFacilityMember2019-11-042019-11-040001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2021-03-262021-03-260001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2022-06-142022-06-140001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2020-06-252020-06-250001121142maxr:TermLoanBMember2022-06-142022-06-140001121142maxr:Seniorsecurednotes9.75percentagedue2023Member2019-12-112019-12-110001121142maxr:MaturingInJune2029Membermaxr:TermLoanBMember2022-01-012022-12-310001121142maxr:FinancialCovenantLevelsForEachFiscalQuarterThereafterMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:FinancialCovenantLevelsAtEndOfPreviousFiscalYearMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:FinancialCovenantLevelsAtEndOfEachFiscalQuarterForNextTwelveMonthsMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:FinancialCovenantLevelsAtEndOfEachFiscalQuarterForNextSixMonthsMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:FinancialCovenantLevelsAtEndOfEachFiscalQuarterForNext18MonthsMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:FinancialCovenantLevelsAtEndOfCurrentFiscalQuarterMembermaxr:SyndicatedCreditFacilityMember2019-11-042019-11-040001121142maxr:SyndicatedCreditFacilityMember2022-06-142022-06-140001121142maxr:FinancialCovenantLevelsAtEndOfEachFiscalQuarterMember2019-11-042019-11-040001121142maxr:SpaceInfrastructureMember2021-01-012021-12-310001121142maxr:Jupiter3SatelliteMembermaxr:ServicesSegmentMember2022-01-012022-12-310001121142maxr:Jupiter3SatelliteMember2022-01-012022-12-3100011211422021-01-012021-12-3100011211422022-12-310001121142maxr:VriconIncMember2020-07-012020-07-0100011211422020-01-012020-12-310001121142us-gaap:CommonStockMember2022-01-012022-12-310001121142us-gaap:CommonStockMember2021-01-012021-12-310001121142us-gaap:AdditionalPaidInCapitalMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureSegmentMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceSegmentMember2022-01-012022-12-310001121142us-gaap:IntersegmentEliminationMember2022-01-012022-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureSegmentMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceSegmentMember2021-01-012021-12-310001121142us-gaap:IntersegmentEliminationMember2021-01-012021-12-310001121142us-gaap:OperatingSegmentsMembermaxr:SpaceInfrastructureSegmentMember2020-01-012020-12-310001121142us-gaap:OperatingSegmentsMembermaxr:EarthIntelligenceSegmentMember2020-01-012020-12-310001121142us-gaap:IntersegmentEliminationMember2020-01-012020-12-3100011211422022-06-3000011211422023-02-1600011211422022-01-012022-12-31iso4217:CADxbrli:sharesxbrli:sharesiso4217:USDxbrli:pureiso4217:USDxbrli:sharesmaxr:customermaxr:itemmaxr:employeeiso4217:CADmaxr:segment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K


(Mark One)
☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2022
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission file number: 001-38228

Maxar Technologies Inc.


Delaware				83-2809420
(State or Incorporation)				(IRS Employer Identification Number)


1300 W. 120^th Avenue, Westminster, Colorado		80234
(Address of principal executive offices)		(Zip Code)

303-684-7660

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbols

Name of Each Exchange on Which Registered

Common Stock par value of $0.0001 per share

MAXR

New York Stock Exchange

Toronto Stock Exchange

Securities registered pursuant to section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and emerging growth company in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to (§240.10D-1(b)). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

At June 30, 2022, the aggregate market value of the registrant’s common stock, par value of $0.0001 per share, held by non-affiliates of the registrant was approximately $1,936 million (based upon the closing sale price of the common stock on June 30, 2022 on The New York Stock Exchange).

As of February 16, 2023, there were 74,710,276 shares of the registrant’s common stock, par value of $0.0001 per share, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

Table of Contents

Maxar Technologies Inc.

Annual Report on Form 10-K

For the Fiscal Year Ended December 31, 2022


Item Number	Table of Contents
	PART I
1.	Business	3
1A.	Risk Factors	18
1B.	Unresolved Staff Comments	46
2.	Properties	46
3.	Legal Proceedings	46
4.	Mine Safety Disclosures	46
	PART II
5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	46
6.	[Reserved]	47
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
7A.	Quantitative and Qualitative Disclosures about Market Risk	68
8.	Financial Statements and Supplementary Data	69
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	130
9A.	Controls and Procedures	130
9B.	Other Information	130
9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	130
	PART III
10.	Directors, Executive Officers and Corporate Governance	131
11.	Executive Compensation	131
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	131
13.	Certain Relationships and Related Transactions and Director Independence	131
14.	Principal Accountant Fees and Services	131
	PART IV
15.	Exhibits and Financial Statement Schedules	132
16.	Form 10-K Summary	136

	Signatures	137

Table of Contents

Cautionary Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.

All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in the forward-looking statements include those set forth in Part I, Item 1A, “Risk Factors” and elsewhere in this Annual Report on Form 10-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

*****

Unless stated otherwise or the context otherwise requires, references to the terms “Company,” “Maxar,” “we,” “us,” and “our” to refer collectively to Maxar Technologies Inc. and its consolidated subsidiaries.

Table of Contents

PART I

ITEM 1. BUSINESS

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. Our 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. Maxar’s stock trades on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) under the symbol “MAXR.”

Agreement and Plan of Merger with Advent International Corporation

On December 15, 2022, we 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, our 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 is subject to customary closing conditions, including, among others, adoption of the Merger Agreement by our stockholders, the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), clearance by the Committee on Foreign Investment in the United States and the receipt of other regulatory approvals. The waiting period under the HSR Act expired at 11:59 p.m. Eastern Time on January 30, 2023. In addition, the closing is subject to the fulfillment or waiver of certain customary mutual closing conditions, including, the absence of any temporary restraining order, preliminary or permanent injunction or other order having been issued by any court of competent jurisdiction or other governmental authority preventing the consummation of the Merger, and the absence of any statute, rule, regulation or order that makes consummation of the Merger illegal. The obligation of each party to consummate the Merger is also conditioned upon certain unilateral closing conditions, including the other party’s representations and warranties being accurate (subject to certain customary materiality exceptions) and the other party having performed in all material respects its obligations under the Merger Agreement, and the obligation of Parent to consummate the Merger is additionally conditioned upon the absence of a material adverse effect on us that is continuing. The closing of the Merger is not subject to any financing condition.

For additional information regarding the Merger, please refer to our Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on December 16, 2022.

Segments

We serve our customers and organize our businesses through the following two operating and reportable segments:

●

Earth Intelligence—a global leader in high-resolution, high-accuracy Earth imagery and other geospatial data sourced from our own advanced satellite constellation and third-party providers to our Public Sector and Enterprise customers, as well as a provider of advanced geospatial information, applications and analytic services for national security and commercial solutions.

Table of Contents

●

Space Infrastructure—a supplier of space-based infrastructure, robotics, subsystems and information solutions to satellite operators and government agencies.

The following is a description of our reportable segments.

Earth Intelligence

Overview

In the Earth Intelligence segment, we are a global leader in high-resolution, space-based Earth observation imagery products and analytics. We launched the world’s first high-resolution commercial imaging satellite in 1999 and currently operate a four satellite Earth observation constellation, providing us with over two decades and approximately 150 petabytes of imagery over our history (referred to as our “Image Library”) of the highest resolution, commercially available imagery. Our imagery solutions provide customers with timely, accurate and mission critical information about our changing planet and support a wide variety of government and enterprise applications, including mission planning, mapping and analysis, environmental monitoring, disaster management, crop management, oil and gas exploration and infrastructure management. We continue to innovate as demands for new satellite technology and advanced analytic tools increase. In addition to our Earth observation capabilities, we offer Radio Frequency (“RF”) and Synthetic Aperture Radar (“SAR”) data, which provides more comprehensive and accurate geospatial insights for our customers. Through our updated National Oceanic and Atmospheric Administration (“NOAA”) remote sensing license, we are also able to collect non-Earth imaging (“NEI”) for our current constellation and our next generation WorldView Legion satellites. Through this new license authority, we can collect and distribute images of space objects across the Low Earth Orbit (“LEO”) – the area ranging from 200 kilometers up to 1,000 kilometers in altitude – to both government and commercial customers. In the commercial satellite Earth observation industry, we are a leader across U.S. government agencies, international government agencies and enterprise customer verticals. The U.S. government is the largest customer of our Earth Intelligence segment through the Electro-Optical Commercial Layer Program (“EOCL Contract”), Global Enhanced GEOINT Delivery (“G-EGD”) and One World Terrain (“OWT”) programs and various classified and unclassified contract vehicles.

We also provide geospatial services that combine imagery, analytic expertise and innovative technology to deliver intelligence solutions to customers. Our approximately 1,500 cleared personnel support analytic solutions that accurately document change and enable geospatial modeling and analysis that help predict where events will occur. Our primary customer of geospatial services is the U.S. government, but we also support intelligence requirements for other U.S. allied governments, global development organizations and enterprise customers. We are also 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.

Our Offerings

Customers can license our imagery and data archives or place custom orders to task our satellites for a specific area of interest. We process our imagery to varying levels according to our customers’ specifications and deliver our products using the distribution methods and subscription services that are designed to best suit our customers’ needs. We offer a number of Earth Intelligence solutions, including:

●

Satellite access—direct collection and access to our satellite constellation anywhere in the world. The Direct Access Program (“DAP”) enables customers to directly task our satellites using the customer’s own ground station for secure, real-time imagery acquisition and downlink. The Rapid Access Program (“RAP”) allows customers to virtually control our constellation through priority tasking, predictable access and imaging operations with a web interface, while we own and manage the ground infrastructure. Additionally, we support the U.S. government with direct tasking utilizing our integrated imagery production, distribution and operations with U.S. government systems. This offering is currently contracted under our EOCL Contract, which was awarded to us by the National Reconnaissance Office (“NRO”) in May 2022 as a five-year base contract and with up to five 1-year option periods. The EOCL Contract transitioned the imagery acquisition requirements previously addressed by the EnhancedView Follow-On

Table of Contents

contract (“EnhancedView Contract”) and replaces the scope of the EnhancedView Contract with respect to such requirements.

●

Geospatial foundation—highest quality foundational satellite imagery, basemaps and 3D data over any location on Earth. This foundation allows our customers to fully understand, immerse and strategically plan outcomes before setting foot in a specific location or to immediately use our robust imagery for their artificial intelligence (“AI”) / machine learning (“ML”) models, real-world metaverse applications and/or training purposes. Our Vivid imagery basemaps stitch high-resolution satellite imagery together into a single cloudless global view that provides an accurate, consistent and actionable foundation to support the leading mapping apps, global-scale environmental governance analytics and risk management decisions. High-definition (“HD”) imagery leverages our proprietary HD technology to improve visual clarity of our native 30cm imagery to 15cm, giving analysts and ML models cleaner and more accurate data to analyze and deliver results. This technology allows us to provide best-in-class accuracy of the world’s terrain in GPS-denied environments or when ground conditions are not ideal for human assessment or navigation. Analysis-Ready Data (“ARD”) is preprocessed time-series stacks of imagery that are aligned and produced at a set standard to provide templated imagery and associated meta data for change detection, mapping and monitoring use cases. Our Precision3D offerings leverage our over two decades high-resolution Image Library to construct accurate, consistent and fully immersive 3D visualizations at global scale, including 3D surface models, 3D vectors, digital surface models and digital terrain models.

●

Precision mapping—GIS-ready datasets for expedited analysis. These offerings include Persistent-Change Monitoring (“PCM”), BaseVue and Human Landscape. PCM leverages our Image Library and ML models running on our approximately 3.8 million square kilometer daily take to identify change indicators, historical patterns of development and infrastructure changes and provide actionable insights to our customers. BaseVue is the global standard for land classification, including for natural resource management and environmental impact monitoring. Human Landscape utilizes key human geography features to enable analysts to better understand and develop responses that reduce operating costs and enable timely decision-making.

●

On-demand intelligence—industry-leading technology, data and expertise to help solve the most complex geospatial challenges. We offer a variety of subscription-based services that maximize the value of our imagery, information products and analytic outputs for a diverse set of customer needs. Our flexible subscription options include cloud-based access to our global image archive, in-house tools to search, exploit and share imagery and simplified integration for a customer’s existing workflows. These offerings include SecureWatch, Spatial on Demand, Crow’s Nest Maritime Monitoring and Security, WeatherDesk, SeaStar Information Service and our analytic reports. SecureWatch is a subscription software as a service offering that provides customers a cloud-based source of near real-time global imagery basemaps, optical and radar imagery and analytics on features (e.g. roads, railways) and objects (e.g. cars, planes). This includes supporting the U.S. government with G-EGD.

●

Geospatial services—We provide advanced geospatial information and analytic services to national security and enterprise customers that combine Maxar imagery and other sources of geospatial data, such as low-resolution satellite imagery, radar, weather and oceanographic data, elevation and social media, to reveal insights that help our customers make better decisions. We also develop applications to support global Intelligence, Surveillance and Reconnaissance (“ISR”) missions with constellation modeling, simulation and mission management, secure ground systems, data analytics to automate object detection, feature extraction, mission planning and predictive analytics. We deploy these services through various cloud and on-premise computing platforms. Our intellectual property portfolio, including U.S. and foreign patents, and Small Business Innovation Research (“SBIR”) Phase III data rights, supports the unique technology we provide to our customers.

Additionally, we support people, organizations and initiatives dedicated to improving the health and sustainability of our planet. Through our Purpose Partners, we contribute geospatial data and expertise to nonprofits that significantly benefit from using our data to achieve their missions. These Purpose Partners include Amazon Conservation Team, Jane

Table of Contents

Goodall Institute, International Justice Mission, Team Rubicon and Humanitarian OpenStreetMap Team. With our Open Data Program, when crises occur, we support humanitarian organizations and communities with critical information to assist response efforts. The Maxar News Bureau is a partnership program with trusted media organizations around the world. We provide satellite imagery as visual evidence of ground truth to promote global transparency and expose injustice. Access to our high-resolution satellite imagery has enabled journalists to accurately report on areas that are too remote or dangerous to visit or are otherwise inaccessible.

Our Earth Observation Constellation

As of December 31, 2022, we operated a constellation of four in-orbit and fully commissioned Earth observation satellites: GeoEye-1, WorldView-1, WorldView-2 and WorldView-3. Our annual collection capacity is approximately 1.4 billion square kilometers. We have collected, and have available for use, approximately 150 petabytes in our Image Library.

We re-evaluate the depreciable lives of our satellites annually based on established methodologies used for accounting purposes. The lives we assign for depreciation purposes are typically shorter than the lives we use for planning purposes and our history shows that in most cases the estimated useful lives of our satellites have increased from the initial lives determined upon launch.

The following table summarizes the primary characteristics of the in-orbit and fully-commissioned Earth observation satellites in our constellation as of December 31, 2022:


Satellite	Launch Date	Expected End of Depreciable Life	Best Ground Resolution	Orbital Altitude (kilometers)
WorldView-3	August 2014	Q1 2026	31-centimeters black and white, or color 1.24-meter multi-spectral	618
WorldView-2	October 2009	Q4 2024	46-centimeters black and white, or color 1.84-meter multi-spectral	770
WorldView-1	September 2007	Q3 2024	50-centimeters panchromatic	496
GeoEye-1	September 2008	Q3 2024	41-centimeters black and white, or color 1.64-meter multi-spectral	681

WorldView Legion will be a fleet of six high performing satellites for which our Space Infrastructure segment is acting as prime contractor. We expect that WorldView Legion, in addition to our current constellation, will revisit rapidly changing areas up to 15 times per day, an increase from four times per day currently, which will more than triple both our capacity to collect 30 cm-class imagery and our overall capacity in high demand areas.

Our Earth observation satellites have advanced technical capabilities, such as maneuverability, size of collection area, collection speed, revisit time, resolution, accuracy and spectral diversity. Additionally, our satellites are designed, manufactured and operated in the U.S. for assurance of U.S. national security missions and data protection.

Table of Contents

We procure insurance to protect us from the risks associated with our satellite operations, including the partial or total loss of the functional capacity of the satellite. We insure satellites in our constellation to the extent that insurance is available at acceptable premiums. As of December 31, 2022, we maintained the following insurance coverage on our in-orbit and fully-commissioned Earth observation satellite constellation:


Satellite	Policy Period	Coverage (in millions)
WorldView-3	10/2022-10/2023	$	255
WorldView-2	10/2022-10/2023		220
WorldView-1	10/2022-10/2023		220
GeoEye-1	10/2022-10/2023		38

Additionally, as of December 31, 2022, we have procured insurance for our WorldView Legion satellite launches of $620 million. These policies cover the launches plus the first year in orbit. Following the first year in orbit, we will seek to obtain in-orbit coverage similar to the coverage we currently have on our in-orbit and fully-commissioned satellite constellation noted in the table above.

Competitive Conditions and Trends in Industry Demands

Our Earth Intelligence business operates in a highly competitive and rapidly growing industry. Our major existing and potential competitors for our Earth Intelligence business include commercial satellite imagery companies, state-owned imagery providers, aerial imagery companies, free sources of imagery, unmanned aerial vehicles and companies that provide geospatial analytic information and services to the U.S. government, including defense prime contractors. We face competition from companies that provide geospatial analytic information and services to the U.S. government, including defense prime contractors such as L3Harris and Booz Allen Hamilton.

We compete on the basis of several factors, including: the technical capabilities of our satellites, such as size of collection area, collection speed, revisit time, resolution, accuracy and spectral diversity; satellite availability for tasked orders; the size, comprehensiveness and relevance of our Image Library; on-demand platforms and tools that enable customers to easily access and integrate imagery; value-added services, including harnessing advancements in ML by applying computer vision and pattern analysis technology to geospatial problems; and derivative products such as 3D models and map vector data.

The Earth observation market includes the collection and processing of optical and non-optical imagery data of the Earth. Specifically, the market is segmented into Data, Value-Added Services (“VAS”), Information Products and Big Data Analytics. The Data segment consists of raw imagery transmitted from the satellite to the ground station and products, such as stereo imaging and basic corrections (radiometric and geometric). VAS includes processing through layering or data fusion (such as with traffic information and street names). Big Data Analytics includes statistical analysis, change detection and predictive modeling using large quantities of imagery and meta data overlays to provide insights over a given period of time.

Our Earth Intelligence business provides Earth observation services to customers in a variety of sectors, including defense and intelligence, energy and natural resources, industrials, social media, mapping, managed living resources (such as agriculture and forestry), public authorities, services (such as finance, insurance, news and media) and weather. Providers of imagery and data in this market generally compete on resolution, accuracy, revisit frequency, delivery (cloud versus traditional) and pricing.

Euroconsult reports that the commercial market for Earth observation data was $1.7 billion in 2021 and is forecasted to top $2.7 billion by 2031, a compound annual growth rate of 5%. According to Euroconsult, defense represents approximately 69% of the Earth observation data market, and sales to non-U.S. defense markets are forecasted to be the most significant driver of revenue growth, driven by higher revisit constellations with higher resolutions. Euroconsult reports the commercial market for Earth observation VAS was $2.8 billion in 2021 and is forecasted to top $5.2 billion by 2031, a compound annual growth rate of 6%.

Table of Contents

In addition to the demands for commercial Earth observation data and VAS, we believe our Earth Intelligence offerings address a number of multi-billion dollar military use-cases and sectors, including 3D mapping, precision guided munitions and military simulation and virtual training. Additionally, as we further develop our 3D offerings, we see additional commercial market opportunities for our data and services, particularly within the immersive 3D environments of the augmented reality (“AR”)/virtual reality (“VR”) accessed metaverse, media and entertainment. As businesses increasingly use 3D simulations for decision support and consumers spend more time in AR /VR environments for education, gaming, entertainment, news, networking, shopping and more, our global 3D models can help bridge the physical and digital worlds with increased accuracy and realism.

Space Infrastructure

Overview

In the Space Infrastructure segment, we provide solutions for communications, Earth observation, remote sensing, on-orbit servicing, robotic assembly and space exploration. We address a broad spectrum of needs for our customers, including mission systems engineering, product design, spacecraft manufacturing, assembly, integration and testing. Our principal customers in the Space Infrastructure segment are commercial satellite operators and government agencies worldwide. Our approach combines proven success gained over six decades in the industry with the nimbleness and agility of a smaller space company.

Our Offerings

Our products, which are designed and manufactured in the U.S., include:

●

Communications and imaging satellites and payloads;

●

Platforms for space exploration and hosting instruments for Earth science;

●

Space subsystems for power, propulsion and communication;

●

Satellite ground systems and support services;

●

Space-based remote sensing-solutions;

●

Space robotics; and

●

Defense systems.

Spacecraft

Today, 155 custom Maxar-built spacecrafts for Geosynchronous Equatorial Orbit (“GEO”) satellites have launched with a combined 2,022 years of service. 72 GEO satellites have completed their missions and provided Maxar customers with an additional 386 years of operation beyond mission requirements. In addition, Maxar has manufactured and placed into service 81 low Earth orbit (“LEO”) satellites.

Maxar continues as a world leader in commercial GEO communication satellites and a global leader in commercial satellite manufacturing. With three decades of on-orbit heritage, our 1300-class spacecraft platform is the world’s most popular GEO satellite; 94 spacecraft are currently in service, providing 99.9972% uptime availability for our customers. We continue to provide a high level of value and partnership to communications customers around the globe. Key platform features include a scalable, lightweight and high-strength structure, fuel-efficient attitude and station-keeping subsystems, high-efficiency and reliable solar arrays and batteries, and advanced command and control subsystems. A growing application for commercial geostationary communication satellites is the delivery of data-centric applications (such as consumer broadband, in-flight communication, maritime and 4G/5G cellular backhaul) via high-capacity spot beam satellites commonly referred to as high-throughput satellites (or “HTS”). We introduced the first HTS satellite in 2005, which used the 1300-class bus, and believe it offers the highest capability for the cost. Maxar is building JUPITER 3, a transformational Ultra High Density Satellite, for Hughes Network Systems (“Hughes”) to be designated EchoStar

Table of Contents

XXIV. This satellite is expected to be the world’s largest commercial communications satellite when it launches, and will power future generations of Hughes consumer, enterprise and aeronautical services across the Americas.

In addition to continued leadership in the commercial communications sector, we collaborate closely with customers to design and deliver smaller satellites to address growing demand for LEO and medium Earth orbit (“MEO”) constellations. We believe Maxar’s LEO capabilities will be effective for applications that require a multiple satellite constellation of identical satellites produced in a cost-efficient manner. Designed, engineered and built in-house, these modular satellite platforms illustrate Maxar’s ability to adapt and extend its deep experience to provide agile, affordable solutions in proliferated, LEO constellations. In 2022 Maxar was selected by L3Harris and the U.S. Space Development Agency to design and build the platform for 14 spacecraft platforms for the Tranche 1 Tracking Layer supporting missile warning and tracking.

The 1300-class platform is key to our continued and growing partnership with NASA as well. The Psyche mission is a journey to a unique metal asteroid, named 16 Psyche, that appears to be the exposed metal core of an early planet–a building block of a solar system. The spacecraft leverages Maxar’s 1300-class platform and solar electric propulsion system, the highly efficient SPT-140. In addition, Maxar is hosting NASA’s Tropospheric Emissions: Monitoring of Pollution (“TEMPO”)—a commercially hosted pollution monitoring payload on a commercial communications satellite Maxar is building for satellite operator Intelsat. By hosting payloads on its commercial satellites, Maxar can help government agencies obtain access to space for instruments, sensors and other small missions without the cost of building a dedicated spacecraft. Similarly, the hosted payload helps commercial customers share the cost of the satellite bus, launch and operations.

Competitive Conditions and Trends in Industry Demands

Our principal customers in the Space Infrastructure segment are commercial satellite operators and government agencies worldwide.

We sell our products and technologies in a highly competitive industry and we compete on the basis of cost, reliability, design life, technological capabilities and efficiencies. Our primary competitors for satellite manufacturing contracts are: The Boeing Company, Lockheed Martin Corporation and Northrop Grumman Corporation in the United States; Thales S.A. and Airbus Defence and Space, a subsidiary of the Airbus Group, in Europe; and Mitsubishi Electric Corporation in Japan. Additionally, we face competition from newer entrants. In addition, many of our competitors are larger and have greater resources than we do. We may also face competition in the future from emerging low-cost competitors in India, Russia and China.

GEO satellites track with the rotation of the Earth and remain over a fixed point over the Earth’s surface. GEO satellites cover more area from a higher vantage point and tend to carry more advanced sensor or communication suites, as used in broad area communications and global-scale weather payloads. Due to this unique property of their orbit, GEO slots are limited, which motivates operators to maximize the use of their slot, leading to generally larger satellites to support the required power and bandwidth, as well as a longer design life to maximize return on investment. Due to their greater distance from Earth, however, there is increased latency.

The satellite industry has undergone a significant change with the proliferation of LEO satellites, which have been primarily used for both Earth observation and communications payloads. Typically, LEO constellation satellites are cheaper to launch as they are significantly smaller and require less fuel to reach orbit. Additionally, due to the lower orbital altitude, LEO observation satellites enable higher resolution imagery. This factor also enables LEO communication satellites to reduce latency but require a much larger constellation to ensure coverage over a given area as, unlike GEO satellites, LEO satellites move in and out of view of ground locations as they complete their orbit. In addition to altitude class, satellites are classified by functions, such as communications or Earth observation.

Euroconsult projects satellite demand will experience a five-fold increase over the next ten years. While LEO is expected to account for the majority of the demand, Euroconsult expects an average of 13 GEO commercial satellite orders per year over the next ten years, representing one-third of the total market value. According to Euroconsult, the

Table of Contents

total market for manufacturing and launch services is expected to reach $400 billion over the next decade, a 46% increase from the previous decade of $273 billion in revenue.

LEO proliferation is expected to greatly increase access to space, thus enabling new commercial customers across diversified industries including oil and gas, insurance, agriculture and asset management firms, as well as nonprofit organizations, to benefit from satellite imagery.

Discontinued Operations

On April 8, 2020, we completed the sale of our former Canadian subsidiary (“MDA Business”) to Neptune Acquisition Inc., a corporation existing under the laws of the Province of British Columbia and an affiliate of Northern Private Capital Ltd. See Note 3, “Discontinued Operations”, to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for additional information regarding our sale of the MDA Business.

Industry Overview

Large and Growing Addressable Market

We believe that there is potential for growth among three key components of our addressable market: the U.S. government, other governments and commercial customers. For both the U.S. and other governments, drivers of growth include persistent global security threats, defense budgets, demand for high-quality imagery and value-added services and a focus on space as an investment. We believe that the U.S. government is interested in expanding the use of commercial alternatives to owned assets and that other governments present an opportunity for growth. We seek to align our products and services with the U.S. Department of Defense (“DOD”)’s National Defense Strategy needs, as well as growing international defense and intelligence demand. For civil customers, in particular NASA, growth is being driven by space exploration programs such as Artemis and Earth science projects. For commercial customers, drivers of growth include strong demand for 3D imagery and more frequent imagery refreshes, as well as insights driven by AI and ML, space-based remote sensing, GEO replacement demand and LEO communications programs.

Diverse Solutions for Diverse End Market Users

While traditionally spending in space has been dominated by military defense programs and the communications industry, the proliferation of technology and cheaper access to space has led to a diversification in end market users. AI, ML and cloud computing have given rise to multiple use cases across industries, such as mobility and logistics, insurance, finance, environmental, social and governance (“ESG”) matters, non-governmental organizations and emerging technologies in simulation, gaming, AR/VR and the metaverse. Concurrently, geopolitical competition in space as a contested domain is leading to further investment by global militaries. We have evolved with this changing environment to serve a multitude of customers.

Government Investment in Space Programs

With more than half of our revenues coming from U.S. government customers, we expect that our Space Infrastructure and Earth Intelligence segments will benefit from growing defense and space infrastructure budgets. We expect the proliferation of space-based ISR and communications to drive increased government investments in the sector through the mid-2020s.

Global

Euroconsult reports that government space budgets reached $103 billion in 2022, a 9% increase over 2021 figures. Additionally, Euroconsult reports the gap between civil and defense space budgets continues to decrease, with civil budgets totaling $55 billion and defense space programs totaling $48 billion in 2022. Looking forward, Euroconsult expects that the rapid growth of defense budgets will continue in the short-term but will eventually lessen later in the decade as current growth trajectories do not appear sustainable in the long-term.

Table of Contents

United States

In the U.S., there is a concerted effort by the government to accelerate space investment. Congress appropriated $26.3 billion for the fiscal year (“FY”) 2023 for the National Security Space (“NSS”) programs, representing growth of 45% from FY 2022 of $18.1 billion. The request is now inclusive of the budgets for Space Force and the Space Development Agency.

The NSS budget generally excludes funding for the NRO and NGA. Specific funding levels for these organizations, which are long-term historical customers of our Earth Intelligence segment, are generally classified. However, the NRO and NGA are included in the funding for the National Intelligence Program (“NIP”). The requested funding for the NIP for FY 2023 was $67.1 billion, a 2% increase from the FY 2022 enacted budget of $65.7 billion. Additionally, the requested funding for the Military Intelligence Program (“MIP”) was $26.6 billion for FY 2023, a 10% increase from the FY 2022 enacted budget of $24.1 billion.

Furthermore, NASA received $25.4 billion in FY 2023, an increase of 5% from FY 2022. The NASA budget further highlights an effort by the government to invest in space exploration and development, with $8.7 billion of the total allocated for deep space exploration systems and space technology. These include the key components of On-Orbit Servicing, Assembly and Manufacturing (“OSAM-1”) and the Artemis program that will send astronauts to the Moon and beyond, including the lunar Gateway.

Growth Strategy

Our vision is to hold leading positions in each of the sectors we serve. We aim to achieve this by applying innovative technologies and capabilities that provide value to our customers across their entire value chain, including components, subsystems, systems, data and services. Specific elements of our strategy across our two segments include:

Earth Intelligence

Driving revenue growth through improvements in our products—We seek to improve and develop new Earth Intelligence products with WorldView Legion by productizing technologies and derivative content developed in support of individual customer contracts, such as using more AI/ML to extract features, detect objects and detect change in our satellite imagery and complementary content. We believe we provide imagery with better than three times the accuracy of the nearest small-sat competitor and we believe that our accuracy advantage is even greater in areas where we have leveraged our 3D and elevation capabilities. We believe we will be able to provide even greater quality imagery and with higher revisit rates upon deployment of our WorldView Legion satellites. The revisit rate and increase in capacity enables a clearer understanding of on-ground conditions, allowing for more real-time, actionable analysis to deliver insights on rapidly changing environments and populations, while providing for more frequent monitoring for defense and intelligence applications, enhanced emergency responsiveness and maritime surveillance, among other applications. We have developed technology used to enhance the quality and usability of imagery (e.g. eliminate atmospheric distortions, increase positional accuracy, improved interpretability, etc.), create information derivatives (e.g. road vectors, material types, land classification, etc.), fuse multiple types of content (e.g. Internet of Things, optical imagery, synthetic aperture radar imagery, radio frequency information, vectors, social media, etc.), to detect change, understand patterns of life and gain early warning of trending events. We believe this type of high-resolution, highly accurate collection capacity will power wide-area, AI/ML modeling, sensor-to-decision applications and a reference globe for AR/VR metaverse applications. Additionally, we believe our resolution and accuracy are key enablers for deriving highly accurate and life-like 3D models, which will allow customers to transition from 2D to 3D capabilities that address critical missions such as GPS-denied navigation, digital twin simulations, synthetic and real-world training environments, autonomous vehicle routing and telecommunications network planning. We believe that creating standard products using this technology will grow our product-based revenue with customers in the technology, defense and intelligence, civil government and global development organization sectors.

Expanding our relationship with the U.S. government—The U.S. government is the largest customer of our Earth Intelligence segment through the EOCL Contract, G-EGD and OWT programs and various classified and unclassified contract vehicles. Demand for geospatial intelligence and services continues to grow given the geopolitical environment

Table of Contents

and the confluence of high-performance computing and ML algorithms that allow for insights to be extracted from ever greater levels of data being produced by Earth observation sensors and national and commercial satellite assets. The U.S. government has expressed interest in increasingly relying on commercial partners to harness the rapid pace of commercial innovation more effectively, including the continued use of geospatial data given cost affordability and advances in technology that provide high-quality imagery. We seek to grow our business with the U.S. government by leveraging the investments we have made across our capability set, including in AI and ML and our strong record of historic performance.

Growing our installed base and penetration of international defense and intelligence customers—We currently provide service to U.S.-allied nations through our DAP, RAP, SecureWatch and Precision-3D products. These customers use our imagery in their civil and intelligence related missions. Our imagery and services are either complementary to national assets owned by these countries, or in some cases defer the need for a country to invest in owned and operated national assets. We believe there are many prospective customers that have both the mission need and budget for our services which we seek to add to our installed base. We also seek to further penetrate existing customers through the provision of additional data and services. Lastly, we believe there are opportunities to provide our services to U.S. allied nations who might seek a complement to national capabilities in geospatial analytics. Our strategy focuses on those countries that currently have deep and longstanding relationships with our Earth Intelligence segment and other close U.S. allies.

Growing with and expanding our installed base among enterprise customers—We have over 500 enterprise customers that use our data in their products and applications across a variety of industries including technology, telecommunications, transportation, mining, mapping, social media and oil and gas. The confluence of high-performance computing and ML algorithms are allowing for insights to be extracted from ever greater quantities of imagery and meta data, which in turn is driving innovation across our customer base. We expect this trend to continue, and we seek to grow with our existing customers as well as to grow our installed base in new industry verticals by leveraging our sector leading imagery capabilities. Furthermore, we believe our capabilities in AI and ML, 3D and Big Data Analytics products will position us to sell additional solutions and services to our commercial customers.

Providing products that leverage artificial intelligence and machine learning—AI and ML enable us to extract greater insight from our geospatial data to deliver actionable intelligence to our customers. We have continued to refine and improve our approach to AI and ML, which benefit from our large volumes of historical training data and high-quality imagery. Our recent acquisition of Wovenware Inc. exemplifies this approach. Productization of our AI/ML capability will enable delivery of higher value, enriched geospatial data that we expect will facilitate deeper penetration of the U.S. government, international governments and commercial markets.

Delivering 3D products to global defense, intelligence and commercial customers—We are expanding the demand for global-scale 3D products. 3D products allow decision-makers to understand their operational environment in 3D – developing new insights that enable them to make better, faster decisions. We see a growing opportunity to sell 3D data and software products to the military and intelligence community to support virtual training environments and provide better information to the warfighter. U.S. and allied defense and intelligence customers are seeking solutions to support intelligence fusion, maneuver and other mission requirements. We also see significant opportunity with our commercial customers as they look for more accurate 3D geodata to deliver their products through new mediums like AR and VR. Additionally, we have entered into license arrangements related to certain consumer applications. The current investment in 5G networks and Internet of Things provides a unique opportunity to deliver network operators a better data solution to improve their future networks. Additional use cases continue to grow as 3D products and precision data-sets become better understood.

Space Infrastructure

Driving revenue through improvement in our products and manufacturing and program capabilities—We are developing differentiated capabilities that are designed for future space exploration, including propulsion, power and robotics. We believe these elements will be critical to helping our customers operate in an increasingly contested space environment and in achieving successful space exploration missions. We are also developing our satellite architectures and manufacturing capabilities as we strive to assure that we can successfully fulfill both government and commercial

Table of Contents

customer requirements on future programs, including high volume / low mix and variable volume / high mix programs. We plan to team with providers of digital payload technology to enhance our offering if our customers express interest in it. We are also developing relationships across the supply chain to assure that we can seamlessly provide a broad breadth of mission sets to our customers. Finally, we are working to transform our operations (e.g., location strategy, workforce shaping, technology and systems investment and Cost Accounting Standard / Federal Acquisition Regulation (“FAR”) compliance) so that we can address a larger set of opportunities across our government and commercial customers.

Growing our U.S. and international civil exposure—We have a long history with civil space programs dating back to the Apollo missions. Current NASA programs include the Power and Propulsion Element for the Lunar Gateway, OSAM-1, Psyche and TEMPO. We have also built robotic arms on six of NASA’s Mars rovers and landers. We seek to leverage our investments and expertise in propulsion, power and robotics, as well as our strong legacy of performance, when pursuing further civil work in the U.S. and abroad.

Deepening our penetration of U.S. national programs—To date, we have won several classified and unclassified study contracts with U.S. defense and intelligence customers. We seek to further penetrate these markets by utilizing our flexible satellite architectures, design and engineering capabilities and commercial business practices—all of which we believe can create compelling value propositions.

Providing flexible platforms to our commercial customers—We currently provide components, subsystems and system architectures to our customers for communications and Earth observation satellites in LEO, MEO and GEO. In communications, we offer flexible platforms across various architecture platforms and mission payloads from standard analog to high throughput, and we are investing in digital systems. In Earth observation, we also offer flexible solutions across various architecture platforms and mission payloads, including electro-optical. Our goal is to be positioned well to compete for future single satellite or full constellation build orders from our customers, across a wide range of the architectures, payloads or Earth orbit chosen to fulfill mission requirements.

Government Contracts and Compliance with Government Regulations

Our operations are heavily regulated under various federal, state, local and international laws. Our operations in the U.S. government market are subject to significant government regulation. We contract with numerous U.S. government agencies and entities, including branches of the U.S. military and NASA. We must comply with, and are affected by, laws and regulations relating to the formation, administration and performance of U.S. government and other governments’ contracts, including foreign governments. Compliance with legislation or regulations promulgated by these authorities could result in material adverse effects on our capital expenditures, earnings and competitive position. In addition, noncompliance with legislation or regulations promulgated by these authorities could result in limitations on, or the suspension or revocation of, our licenses or registrations, the termination or loss of contracts or the imposition of contractual damages, civil fines or criminal penalties, any of which could have a material adverse effect on our business, financial condition and results of operations. Furthermore, any government policy changes, which may be substantial, could increase regulatory uncertainty. The adoption or modification of laws or regulations relating to our business could limit or otherwise adversely affect the manner in which we currently conduct our business. In addition, the manner in which regulations or legislation in these areas may be interpreted and enforced cannot be precisely determined, which in turn could have an adverse effect on our business, financial condition and results of operations. Additional information about the government regulations affecting our business and the risks relating to government contracts and regulations appears in "Risk Factors" in Item 1A of this Annual Report on Form 10-K.

U.S. Government Contracts

All of our reportable segments have contracts with various governmental entities, which are concentrated in a small number of primary contracts. The U.S. government may terminate or suspend our contracts, including the EOCL Contract with the U.S. government in our Earth Intelligence segment, at any time with or without cause. In May 2022, the NRO awarded us a 10-year contract, inclusive of a 5-year base contract as part of the EOCL Contract. The EOCL Contract transitioned the imagery acquisition requirements previously addressed by the EnhancedView Contract and replaces the scope of the EnhancedView Contract with respect to such requirements. While the imagery acquisition portion of the EnhancedView Contract has moved to EOCL, we will continue to perform other awarded services on the

Table of Contents

EnhancedView Contract through 2025, concurrent with the new EOCL Contract. The opportunity to increase services beyond the awarded amount is also built into the EOCL Contract. Any changes in the size, scope or term of the EOCL Contract could impact our satellite replenishment strategy and our ability to repay or refinance our long-term debt. Although our U.S. government contracts generally involve fixed annual minimum commitments, such commitments, along with all other contracts with the U.S. government, are subject to annual Congressional appropriations and the federal budget process and as a result, the U.S. government may not continue to fund these contracts at current or anticipated levels. The loss or reduction in scope of any one of our primary U.S. government contracts would materially reduce our revenue and adversely impact our operating results and competitive position.

Foreign Operations

Our international contracts may include industrial cooperation agreements requiring specific in-country purchases, investments, manufacturing agreements or other financial obligations, known as offset obligations, and provide for penalties in the event we fail to meet such requirements.

Environmental Regulations

Our operations are regulated under various federal, state, local and international laws governing the environment, including laws governing the discharge of pollutants into the soil, air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites. We have infrastructure in place to ensure that our operations are in compliance with all applicable environmental regulations. We do not believe that the costs of compliance with these laws and regulations will have a material adverse effect on our capital expenditures, operating results or competitive position. The imposition of more stringent standards or requirements under environmental laws or regulations or a determination that we are responsible for the release of hazardous substances at our sites could result in expenditures in excess of amounts currently estimated to be required for such matters. We have been designated, along with numerous other companies, as a potentially responsible party for the clean-up of several hazardous waste sites. Based on available information, we do not believe that any costs incurred in connection with such sites will have a material adverse effect on our financial condition, results of operations, capital expenditures or competitive position. There can be no assurance that additional environmental matters will not arise in the future, or that costs will not be incurred with respect to sites at which no problem is currently known.

Resources

Intellectual Property

We own a substantial intellectual property portfolio that includes many U.S. and foreign patents, as well as many U.S. and international trademarks, service marks, domain names and copyrights. We actively pursue internal development of intellectual property. In addition to our patent portfolio, we own other intellectual property such as unpatented trade secrets, know-how, data and software. Additionally, we rely on licenses of certain intellectual property to conduct our business operations, including certain proprietary rights to and from third parties. While our intellectual property rights in the aggregate are important to our operations, we do not believe that any particular trade secret, patent, trademark, copyright, license or other intellectual property right is of such importance that its loss, expiration or termination would have a material effect on our business.

Raw Materials

Our businesses are generally engaged in limited manufacturing activities and have minimal near-term exposure to fluctuations in the supply of raw materials. For those businesses that manufacture and sell products and systems, most of the value that we provide is labor oriented, such as design, engineering, assembly and test activities. In manufacturing our products, we use our own production capabilities as well as third-party suppliers and subcontractors. Certain aspects of our manufacturing activities require relatively scarce raw materials or specialty component parts; occasionally, we have experienced difficulty in our ability to procure raw materials, components, sub-assemblies and other supplies

Table of Contents

required in our manufacturing processes. As we have several firm fixed price contracts, we bear some risk to supply chain delivery issues and price increases.

Research and Development

We have a history of investing in development of technological advancements in our field of aerospace. We have both internally and externally funded research and development projects. Our current and future business is dependent on developing new enhancements and technology that go into our existing and future products and services. Our annual research and development expenses from continuing operations were $40 million in 2022, $27 million in 2021 and $15 million in 2020. We intend to continue our focus on research and development and product and service enhancements as a key strategy for innovation and growth. One of our current areas of focus is our development of the WorldView Legion program, a capital project, and other new offerings within our Earth Intelligence segment, including 3D technology. In our Space Infrastructure segment, we are also focused on the further development of components to be used in a variety of our products. Our efforts will continue to be directed into fields that we believe offer the greatest opportunities for long-term growth and profitability.

Human Capital

We endeavor to cultivate a positive employee experience as we deliver on Maxar and customer missions by attracting, engaging and growing current and future Maxar team members; creating strong partnerships across the business; championing culture and fostering an inclusive and diverse environment; and impacting the broader community. We take great pride in our values:

Behind the words are leaders, managers and team members who believe in our values and live by them. As of December 31, 2022, we employed 4,600 team members globally of which 95.3% are U.S. based and 4.7% are international. Within the U.S., no team members are unionized, while in Europe a small number of team members are represented by a trade union. Additionally, Maxar employs a highly technical workforce, with 64.2% of our U.S. employees working in technical roles as defined by technical occupations in engineering and information technology. All of these roles require deep technical specialization and knowledge, as well as managers, directors and executives who oversee technical employees and the development and delivery of technical products.

Attracting Talent

The success of Maxar’s business depends largely on our ability to attract, engage and grow a diverse population of talented technical and skilled team members at all levels. To succeed in highly competitive labor markets and for skill sets that are scarce in the market, we have developed talent acquisition, total rewards and team member engagement strategies, to achieve and maintain a competitive position.

Total Rewards

Our employee rewards programs are designed to provide an innovative, equitable, competitive, sustainable and scalable package that allows us to compete for and retain top talent in our industry and markets, aligned with Maxar’s business and strategic objectives.

Table of Contents

We strive to offer comprehensive benefits at a highly competitive cost-share to U.S. team members, including health insurance, direct round-the-clock access to doctors virtually and on-site, an array of targeted wellbeing programs, paid and unpaid leave, parental leave for all new parents for birth or adoption, retirement, life and disability programs, voluntary benefit options flexible to individual team member and family needs, tuition reimbursement, student loan forgiveness, adoption reimbursement, pet insurance and enhanced mental and emotional health support.

In order to encourage our value “We Act Like Owners”, we offer an Employee Stock Purchase Plan with a discount for team members in countries where it is practical to offer the program. We also offer short- and long-term incentive programs to eligible team members.

Outside of the U.S., we provide benefits, retirement and time-off in countries where we have a meaningful population of team members, designed based upon, among other things, market-specific practices and culture alignment.

Engaging Talent

Our culture at Maxar is designed to enable our team members to do their most meaningful work through innovative, adaptable, and unmatched experiences. We focus on attracting and retaining the right talent for Maxar to drive future business outcomes and enrich the experience by enabling our people grow to and develop as individuals. We regularly seek to engage team members in an ongoing dialogue through town-halls, surveys, quarterly check-ins and listening sessions. We focus on topics including Maxar strategy and business updates, understanding leadership effectiveness, communications clarity, and other areas for improvements. All employees are encouraged to recognize each other and celebrate successes through our STAR recognition program.

In 2022, we implemented a new learning management system, through Workday Learning, which provides a centralized, streamlined platform for employees to access learning content and offerings provided by Maxar. This platform, with over 8,500 pieces of learning content makes learning more accessible to the whole of the organization.

Maxar equips our managers to engage their teams more effectively by offering live, in-person training as well as self-direct on demand training. Catalyst and Ignite, our cohort-based leadership development programs, provide people managers with curriculum topics that include a focus on competencies tied to personal grit, team engagement and accountability and results. Spark, a new addition to Maxar’s leadership development offerings, is a self-paced, self-directed leadership development preparation tool. Based in the Maxar Leadership Framework, Spark is a 10-hour program for individual contributors.

With a focus on retention and filling critical positions, we have dedicated efforts towards awareness across Maxar of our open positions. We promote internal mobility, growth through career opportunities and developmental roles. We also encourage employee referrals for critical roles knowing referrals are the number one source of hires.

Diversity, Inclusion and Belonging

As a purpose-driven organization built on our values, our Diversity, Inclusion and Belonging (“DIB”) strategy is to foster a culture of inclusion and belonging. We know that our greatest strength comes from our team members. When our team members feel like they belong and their opinions are respected, everyone can perform to their greatest potential.

The DIB strategy is a three-pronged approach that informs and guides us in this journey to:

●

Build a diverse, high-performing workforce by focusing on increasing diverse candidates in early career roles and in technical positions.

●

Foster a culture of inclusion and belonging by growing inclusive leaders and increasing cultural awareness.

●

Make an impact in the community and marketplace through together the efforts of the Maxar Better World Foundation.

Table of Contents

In 2022, to focus on attracting and retaining female and nonbinary technical talent, we became partners with AnitaB.org and attended the Grace Hopper Celebration. Through the partnership, we provided AnitaB.org memberships to our team members focusing on mentorship. Additionally, we invited female and nonbinary technologists to attend the Grace Hopper Celebration which provided networking and professional development opportunities.

We also continue to focus on increasing the number of diverse candidates in director-level and above leadership roles. For director-level and above roles, we are striving to ensure that a diverse slate of candidates, including at least one female and one ethnically diverse, disabled or veteran candidate, is presented. We have a goal to ensure a diverse slate for 50% or more of our director-level and above leadership roles. In 2022, 75% of open requisitions met the diverse slate requirement and 50% of the positions were filled by diverse candidates.

To foster a culture of inclusion and belonging, we launched a new Global Inclusion Course to all team members to raise awareness of implicit bias and teach the foundations of what it takes to be inclusive within a complex, diverse global working environment.

Maxar continues to be committed to making progress on this journey and will stay curious and focused on cultivating an inclusive environment that promotes and values diversity, inclusion and belonging. Maxar, as a values-based company, makes this a priority, not just because it’s the right thing to do, but because it makes Maxar stronger.

Our 2022 data of our U.S. workforce is below:

Table of Contents

Available Information

Our website can be accessed at http://www.maxar.com. The website contains information about us and our operations. Through a link on the Investor Relations section of our website, copies of our filings with the U.S. Securities and Exchange Commission (“SEC”), including any Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements and Forms 3, 4 and 5 filed on behalf of directors and executive officers and amendments to each of those reports and statements can be viewed and downloaded free of charge as soon as reasonably practicable after the reports have been filed or furnished with the SEC. The information on our website is not incorporated by reference and is not a part of this Annual Report on Form 10-K. Additionally, our reports, proxy and information statements and other information filed with the SEC are available on the SEC’s website at http://www.sec.gov. Our reports, proxy and information statements and other information filed can also be found under our SEDAR profile at www.sedar.com.

ITEM 1A. RISK FACTORS

We operate in a changing global environment that involves numerous known and unknown risks and uncertainties that could materially adversely affect our business, financial condition and results of operations. The occurrence of any of the following risks could materially and adversely affect our business, financial condition, prospects, results of operations and cash flows. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, prospects, financial condition, results of operations and cash flows.

Risk Factors Summary

Below is a summary of the principal risk factors that could adversely affect our business. This summary does not address all the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks, can be found after this summary in Item 1A of this Annual Report on Form 10-K.

●

There are material uncertainties and risks associated with the proposed Merger, including the timing of the consummation of the Merger, which may adversely affect our business and ongoing operations, financial condition and results of operations, employees, customers, shareholders, other parties and business prospects and a failure to complete the Merger on the terms reflected in the Merger Agreement or at all could have a material and adverse effect on our business, financial condition, results of operations, financial condition, cash flows, and stock price.

Table of Contents

●

Our business, financial condition and results of operations could be materially adversely affected by impacts resulting from the conflict in Ukraine or related geopolitical tensions.

●

The future revenue and operating results of the Space Infrastructure segment are dependent on our ability to generate a sustainable order rate for the satellite and space manufacturing operations and develop new technologies to meet the needs of our customers or potential new customers.

●

Our business with various governmental entities is subject to the policies, priorities, regulations, mandates and funding levels of such governmental entities and may be negatively or positively impacted by any change thereto.

●

Our revenue, results of operations and reputation may be negatively impacted if our programs fail to meet contractual requirements or our products contain defects or fail to operate in the expected manner.

●

Any significant disruption in or unauthorized access to our computer systems or those of third parties that we utilize in our operations, including those relating to cybersecurity or arising from cyber-attacks, and security threats could result in a loss or degradation of service, unauthorized disclosure of data, or theft or tampering of intellectual property, any of which could materially adversely impact our business.

●

Satellites are subject to construction and launch delays, launch failures, damage or destruction during launch, the occurrence of which can materially and adversely affect our operations.

●

If our satellites fail to operate as intended, it could have a material adverse effect on our business, financial condition and results of operations.

●

Loss of, or damage to, a satellite and the failure to obtain data or alternate sources of data for our products may have an adverse impact on our results of operations and financial condition.

●

Interruption or failure of our infrastructure or national infrastructure could hurt our ability to effectively perform our daily operations and provide and produce our products and services, which could damage our reputation and harm our operating results.

●

Our business with various governmental entities is concentrated in a small number of primary contracts. The loss or reduction in scope of any one of our primary contracts would materially reduce our revenue.

●

We operate in highly competitive industries and in various jurisdictions across the world, which may cause us to have to reduce our prices or to lose market share.

●

Uncertain global macro-economic and political conditions could materially adversely affect our results of operations and financial condition.

●

We are a party to legal proceedings, investigations and other claims or disputes, which are costly to defend and, if determined adversely to us, could require us to pay fines or damages, undertake remedial measures or prevent us from taking certain actions, any of which could adversely affect our business.

●

We are dependent on our ability to attract, train and retain employees. Our inability to do so, or the loss of key personnel, would cause serious harm to our business.

●

Disruptions in U.S. government operations and funding could have a material adverse effect on our revenues, earnings and cash flows and otherwise adversely affect our financial condition.

●

Changes in U.S. government policy regarding use of commercial data or space infrastructure providers, or material delay or cancellation of certain U.S. government programs, may have a material adverse effect on our revenue and our ability to achieve our growth objectives.

●

Our business involves significant risks and uncertainties that may not be covered by insurance.

●

We often rely on a single vendor or a limited number of vendors to provide certain key products or services and the inability of these key vendors to meet our needs could have a material adverse effect on our business.

●

Disruptions in the supply of key raw materials or components and difficulties in the supplier qualification process, as well as increases in prices of raw materials, could adversely impact us.

Table of Contents

●

Changes in our accounting estimates and assumptions could negatively affect our financial position and results of operations.

●

We may be required to recognize impairment charges.

●

Our business is capital intensive, and we may not be able to raise adequate capital to finance our business strategies, including funding future satellites, or to refinance or renew our debt financing arrangements, or we may be able to do so only on terms that significantly restrict our ability to operate our business.

●

Our ability to obtain additional debt or equity financing or government grants to finance operating working capital requirements and growth initiatives may be limited or difficult to obtain, which could adversely affect our operations and financial condition.

●

Our indebtedness and other contractual obligations could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts and could divert our cash flow from operations for debt payments.

●

Our current financing arrangements contain certain restrictive covenants that impact our future operating and financial flexibility.

●

Our actual operating results may differ significantly from our guidance.

●

We could be adversely impacted by actions of activist stockholders, and such activism could impact the value of our securities.

●

The price of our common stock has been volatile and may fluctuate substantially.

●

Our operations in the U.S. government market are subject to significant regulatory risk.

●

Failure to comply with the requirements of the National Industrial Security Program Operating Manual could result in interruption, delay or suspension of our ability to provide our products and services, and could result in loss of current and future business with the U.S. government.

●

Our business is subject to various regulatory risks that could adversely affect our operations.

●

Changes in tax law, in our tax rates or in exposure to additional income tax liabilities or assessments may materially and adversely affect our financial condition, results of operations and cash flows.

●

Our ability to use our U.S. federal and state net operating loss carryforwards and certain other tax attributes may be limited.

●

Our operations are subject to governmental law and regulations relating to environmental matters, which may expose us to significant costs and liabilities that could negatively impact our financial condition.

Risks Related to Our Proposed Merger

●	The announcement and pendency of the proposed Merger may adversely affect our business, financial condition and results of operations.

On December 15, 2022, we entered into the Merger Agreement with affiliates of funds advised by Advent, and BCI. Uncertainty about the effect of the proposed Merger on our employees, customers, shareholders and other parties may have an adverse effect on our business, financial condition and results of operation regardless of

Table of Contents

whether the proposed Merger is completed. These risks to our business include the following, all of which could be exacerbated by a delay in the completion of the proposed Merger:

•

the impairment of our ability to attract, retain, and motivate our employees, including key personnel;

•

the diversion of significant management time and resources towards the completion of the proposed Merger;

•

difficulties maintaining relationships with customers, suppliers, and other business partners;

•

delays or deferments of certain business decisions by our customers, suppliers, and other business partners;

•

the inability to pursue alternative business opportunities or make appropriate changes to our business because the Merger Agreement requires us to use reasonable best efforts to conduct our business in the ordinary course of business and not engage in certain kinds of transactions prior to the completion of the proposed Merger;

•

litigation relating to the proposed Merger and the costs related thereto;

•

the incurrence of significant costs, expenses, and fees for professional services and other transaction costs in connection with the proposed Merger; and

•

the limitation on our ability to utilize our existing deferred tax assets related to the U.S. federal and state net operating loss (“NOL”) carryforwards and our U.S. tax credit carryforwards

Additionally, in approving the Merger Agreement, our Board of Directors considered a number of factors and potential benefits, including the fact that the Merger consideration to be received by holders of our common stock represented an approximately 129% premium over Maxar’s closing stock price of $23.10 on December 15, 2022, the last full trading day prior to the announcement of the proposed Merger. If the Merger is not completed, neither we nor the holders of our common stock will realize this benefit of the Merger. Moreover, we would have incurred substantial transaction-related fees and costs and the loss of management time and resources.

●	Failure to consummate the proposed Merger within the expected timeframe or at all could have a material adverse impact on our business, financial condition and results of operations.

There can be no assurance that the proposed Merger will be consummated. The consummation of the proposed Merger is subject to certain regulatory approvals and customary closing conditions. The obligation of each party to consummate the Merger is also conditioned upon the other party’s representations and warranties being true and correct to the extent specified in the Merger Agreement and the other party having performed in all material respects its obligations under the Merger Agreement. There can be no assurance that these and other conditions to closing will be satisfied in a timely manner or at all.

The Merger Agreement also includes customary termination provisions for both the Company and Parent, and we may be required to pay Parent a termination fee equal to $124.5 million in certain specified circumstances, including, among other circumstances, if Parent terminates the Merger Agreement pursuant to its Triggering Event Termination Right (as defined in the Merger Agreement) or if the Company terminates the Merger Agreement pursuant to its Superior Proposal Termination Right (as defined in the Merger Agreement). If we are required to make this payment, doing so may materially adversely affect our business, financial condition and results of operations.

There can be no assurance that a remedy will be available to us in the event of a breach of the Merger Agreement by Parent or its affiliates or that we will wholly or partially recover for any damages incurred by us in connection with the proposed Merger. A failed transaction may result in negative publicity and a negative impression of us among our customers or in the investment community or business community generally. Further, any disruptions to our business resulting from the announcement and pendency of the proposed Merger, including any adverse changes in our relationships with our customers, partners, suppliers and employees, could continue or accelerate in the event of a failed transaction. In addition, if the proposed Merger is not completed, and there are no other parties willing and able to acquire the Company at a price of $53.00 per share or higher, on terms acceptable to us, the share price of our common stock will likely decline to the extent

Table of Contents

that the current market price of our common stock reflects an assumption that the proposed Merger will be completed. Also, we have incurred, and will continue to incur, significant costs, expenses and fees for professional services and other transaction costs in connection with the proposed Merger, for which we will have received little or no benefit if the proposed Merger is not completed. Many of these fees and costs will be payable by us even if the proposed Merger is not completed and may relate to activities that we would not have undertaken other than to complete the proposed Merger.

●	Prior to the completion of the Merger or the termination of the Merger Agreement in accordance with its terms, we are prohibited from entering into certain transactions and taking certain actions that might otherwise be beneficial to us and our stockholders.

After the date of the Merger Agreement and prior to the effective time, the Merger Agreement restricts us from taking specified actions without the consent of Parent (which consent may not be unreasonably withheld, conditioned or delayed) and requires that our business be conducted in all material respects in the ordinary course of business. These restrictions may prevent us from making appropriate changes to our businesses or organizational structures or from pursuing attractive business opportunities that may arise prior to the completion of the Merger and could have the effect of delaying or preventing other strategic transactions. Adverse effects arising from the pendency of the Merger could be exacerbated by any delays in consummation of the Merger or termination of the Merger Agreement.

●	The Merger, including uncertainty regarding the Merger, may cause customers, suppliers, distributors or strategic partners to delay or defer decisions, which could negatively affect our business and adversely affect our ability to effectively manage our business.

The Merger will happen only if certain conditions are met. Many of the conditions are outside our control, and both we and Parent also have the right to terminate the Merger Agreement in certain circumstances. Accordingly, there may be uncertainty regarding the completion of the Merger. This uncertainty may cause customers, suppliers, distributors, strategic partners or others that deal with us to delay or defer entering into contracts with us or making other decisions concerning us or seek to change or cancel existing business relationships, which could negatively affect our business. Any delay or deferral of those decisions or changes in existing agreements could have a material adverse effect on our business, regardless of whether the Merger is ultimately completed.

●	The Merger may cause difficulty in attracting, motivating and retaining employees.

Our current and prospective employees may experience uncertainty about their future role with the Company until strategies with regard to these employees are announced or executed, which may impair our ability to attract, retain and motivate key management, technical, business development, operational and customer-facing employees and other personnel prior to the Merger. If we are unable to retain and replace personnel, we could face disruptions in our operations, loss of existing customers, loss of key information, expertise or know-how, and unanticipated additional recruitment and training costs.

●	The Merger Agreement limits our ability to pursue alternatives to the Merger and may discourage other companies from trying to acquire us for greater consideration than what Parent has agreed to pay.

The Merger Agreement contains provisions that make it more difficult for us to sell our business to a company other than Parent. These provisions include a general prohibition on us soliciting any acquisition proposal or offer for a competing transaction following the conclusion of the “go-shop” period provided for in the Merger Agreement, which concluded at 11:59 p.m. New York City time on February 14, 2023. To date, no party has made an acquisition proposal following the execution of the Merger Agreement. If we terminate the Merger Agreement in connection with our Board of Directors’ authorization for us to enter into a definitive agreement to consummate an alternative transaction contemplated by a superior proposal, we will be required to pay a termination fee of $124.5 million. We may also be required to pay the $124.5 million termination fee if we or Parent terminate the Merger Agreement under certain other circumstances specified in the Merger Agreement.

Table of Contents

These provisions might discourage a third party that has an interest in acquiring all or a significant part of the Company from considering or proposing an acquisition, even if the party were prepared to pay consideration with a higher per share cash or market value than the cash value proposed to be received in the Merger, or might result in a potential competing acquirer proposing to pay a lower price than it might otherwise have proposed to pay because of the added expense of the termination fee that may become payable in certain circumstances.

●	Stockholder litigation could result in substantial costs and may delay or prevent the Merger from being completed.

In connection with the announcement of the Merger, as is common in the context of mergers and acquisitions of publicly-traded companies, we (along with our directors and officers) have been named in lawsuits and may attract additional lawsuits seeking to enjoin us from proceeding with or consummating the Merger, or seeking to have the Merger rescinded after its consummation. Defending against such claims, even those without merit, could result in substantial costs and divert management’s time and resources, which may negatively impact our financial condition and adversely affect our business and results of operations. Such claims could prevent or delay the consummation of the Merger, including through an injunction, and result in additional costs to us. The ultimate resolution of any such lawsuit cannot be predicted, and an adverse ruling in any such lawsuit may cause the Merger to be delayed or not to be completed, which could cause us not to realize some or all of the anticipated benefits of the Merger. For a discussion of the lawsuits that are currently pending, see Note 22 “Commitments and Contingencies” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplemental Data” in this Annual Report on Form 10-K, which is hereby incorporated by reference.

Risks Related to Our Business

Our business, financial condition and results of operations could be materially adversely affected by impacts resulting from the conflict in Ukraine or related geopolitical tensions.

U.S. and global businesses and markets are experiencing volatility and disruption following the escalation of geopolitical tensions and military conflict between Russia and Ukraine. The recent military conflict in Ukraine has also led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia. Additional potential sanctions and penalties have also been proposed and/or threatened. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine has led to and could lead to further regional instability, market disruptions, geopolitical shifts and adverse effects on macroeconomic conditions, security conditions, currency exchange rates, and the supply chain, which could create or exacerbate risks facing our business.

For example, market disruptions caused by Russian military actions and the resulting sanctions have adversely affected and could continue to adversely affect the global economy and financial markets, leading to significant volatility and instability in credit and capital markets and a lack of liquidity in capital markets, potentially making it more difficult for us to raise capital.

Further, because of our recent prominence in the media and continued support of the U.S. government and other governments and various media outlets throughout the world, we (and/or partners we use) may be susceptible to attacks by advanced, persistent and highly organized adversaries, including nation states and hostile foreign governments such as Russia and its allies. These attacks could come in the form of, among others, anti-satellite devices, electromagnetic or radio interference with our satellites, cyber and other security attacks, and other similar types of attacks, any or all of which are potentially capable of destroying our satellites or ground systems architecture or rendering them permanently impaired or inoperable. In the event of one or more of these attacks on us and/or our partners, there can be no assurance that any insurance proceeds will be available for any partial or total loss of a satellite or a satellite’s performance or any resulting business interruption, and our business, financial condition and results of operations could be materially adversely affected. See also “Our business involves significant risks and uncertainties that may not be covered by insurance” below.

Table of Contents

Additionally, although we believe there are alternative sources available to us for products, materials, components and services, if these conditions continue for a prolonged period, we may also experience supply chain disruptions, logistics restrictions, shortages in the availability of key materials and components and our reputation and relationships with our customers may become impaired if we are unable to meet a customer’s expectations or contractual requirements. The occurrence of any of the foregoing, especially over a prolonged period, could have a material adverse effect on our financial condition and results of operations.

We are actively monitoring the situation in Ukraine and globally and assessing its potential impact on our business. The recent military conflict in Ukraine has positively impacted our revenues and earnings. This may not reoccur in the future in the event of any future resolution of conflict or ease of tensions in Ukraine and it is possible that the conflict may adversely affect our operations in the future. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial, and it is impossible to predict the extent to which our operations, or those of our suppliers, vendors and customers, will be impacted in the short and long term, or the ways in which the conflict may impact or disrupt our business. Any such impacts or disruptions may also magnify the impact of other risks described in this Annual Report on Form 10-K.

The Space Infrastructure segment’s financial performance is dependent on its ability to generate a sustainable order rate for its satellite and space manufacturing operations. This can be challenging and may fluctuate on an annual basis as the number of satellite construction contracts awarded varies and in 2018 there was a substantial step down in the total number and dollar value of geostationary communication satellite contracts awarded compared to such historical averages prior to 2015. The industry now expects an average of 13 GEO commercial satellite orders per year over the next ten years; however, the actual number of awards may fluctuate. Many satellite operators in the communications industry have continued to defer new satellite construction awards to evaluate geostationary and other competing satellite system architectures and other market factors. If we are unable to win new awards or execute existing contracts as expected, our business, results of operations and financial position could be further adversely affected.

The cyclical nature of the commercial satellite market could negatively impact our ability to accurately forecast customer demand. The markets that we serve may not grow in the future and we may not be able to maintain adequate gross margins or profits in these markets. Specifically, sales of the 1300-class bus have historically been important to our results and there is no assurance that this market will continue to grow or demand levels will increase, nor is there assurance that the market for the smaller bus, which spans a range from 500kg to 1300kg, will offset any decreases in the market for the 1300-class bus or provide future growth. Our growth is dependent on the growth in the sales of services provided by our customers, our customers’ ability to anticipate market trends and our ability to anticipate changes in the businesses of our customers and to successfully identify and enter new markets. If we fail to anticipate such changes in demand, our business, results of operations and financial position could be adversely affected.

The satellite manufacturing industry is driven by continued investment in technologies to meet changing customer demand for complex and reliable services. Our satellite systems embody complex technologies and may not always be compatible with current and evolving technical standards and systems developed by others. Other satellite manufacturers have developed or are developing digital payloads which increase flexibility for geostationary satellites in circumstances with unpredictable demand. We plan to team with providers of this technology to enhance our offering if our customers express interest in it.

Failure or delays to develop technologies or team with providers to obtain technologies to meet the requisite and evolving industry or user standards could have a material adverse effect on our business, results of operations and financial condition. Failure of suppliers to deliver against end customer requirements could lead to a material adverse effect on our financial results within the Space Infrastructure segment.

Table of Contents

Changes in government policies, priorities, regulations, use of commercial data providers to meet U.S. government imagery needs, government agency mandates, funding levels through agency budget reductions, the imposition of budgetary constraints or a decline in government support or deferment of funding for programs in which we or our customers participate could result in contract terminations, delays in contract awards, reduction in contract scope, performance penalties or breaches of our contracts, the failure to exercise contract options, the cancellation of planned procurements and fewer new business opportunities, all of which could negatively impact our business, financial condition, results of operations and cash flows.

We are subject to the procurement policies and procedures set forth in the FAR. FAR governs all aspects of government contracting, including contractor qualifications and acquisition procedures. The FAR provisions in U.S. government contracts must be complied with in order for the contract to be awarded and provides for audits and reviews of contract procurement, performance and administration. Failure to comply with the provisions of the FAR could result in contract termination.

In addition, contracts with any government, including the U.S. government, may be terminated or suspended by the government at any time and could result in significant liability obligations for us. We seek to have in place as standard provisions, termination for convenience language which reimburses us for reasonable costs incurred, subcontractor and employee termination and wind-down costs plus a reasonable amount of profit thereon. However, reparations for termination may fall short of the financial benefit associated with full completion and operation of a contract. In addition, we may not be able to procure new contracts to offset the revenue or backlog lost as a result of any termination of government contracts. The loss of one or more large contracts could have a material adverse impact on our business, financial condition, results of operations and cash flows. See also “Our business with various governmental entities is concentrated in a small number of primary contracts. The loss or reduction in scope of any one of our primary contracts would materially reduce our revenue” below.

We sell complex and technologically advanced systems, including satellites, products, hardware and software. Sophisticated software, including software developed by us, may contain defects that can unexpectedly interfere with the software’s intended operation. Defects may also occur in components and products that we manufacture or purchase from third parties. Most of the satellites and systems we have developed must function under demanding and unpredictable operating conditions and in harsh and potentially destructive environments. In addition, we may agree to the in-orbit delivery of a satellite, adding further risks to our ability to perform under a contract. Failure to achieve successful in-orbit delivery could result in significant penalties and other obligations on us.

We employ sophisticated design and testing processes and practices, which include a range of stringent factory and on-site acceptance tests with criteria and requirements that are jointly developed with customers. Our systems may not be successfully implemented, pass required acceptance criteria, or operate or give the desired output, or we may not be able to detect and fix all defects in the satellites, products, hardware and software we sell or resolve any delays or availability issues in the launch services we procure. Failure to do so could result in increased costs, lost revenue and damage to our reputation and may adversely affect our ability to win new contract awards. We manufacture satellites with the intention of receiving full contractual value for builds; however, due to the inherent complexity, a number of adverse variables could negatively impact our ability to collect on the full amount of contractual consideration including circumstances where we may work in advance of customer funding. Such variables include, among others, schedule delays, including those caused by suppliers or major subcontractors, contractual disputes, failure to meet technological requirements and customer solvency concerns. These variables could lead to termination for convenience or default on our contracts which could have a material adverse effect on our financial results. Historically, we have experienced significant delays in the building of certain satellites. For example, on November 22, 2022, we publicly disclosed material financial impacts of an amendment of the JUPITER 3 contract with a subsidiary of EchoStar Corporation, which was related to certain delays in the JUPITER 3 program. The schedule delays we from time to time experience in our satellite builds, some of which are

Table of Contents

significant, are due to a number of factors, inclusive of COVID-19 delays, supply chain disruptions, subcontractor issues and technological requirements and we work closely with our customers to address these delays. We have, where appropriate, asserted force majeure provisions in our contracts but these can be subject to dispute.

Our operations, products, solutions, analysis and intellectual property are inherently at risk of loss, unauthorized access, tampering by both insider threats and external bad actors, or disruption due to inadvertent misconfiguration of our computers and networks. In particular, our operations face various cyber and other security threats, including those caused by physical or electronic break-ins, computer viruses, malware, worms, attacks by hackers or foreign governments, disruptions from unauthorized access and tampering, including through social engineering such as phishing attacks, coordinated denial-of-service attacks and similar incidents. These cyber and other security threats could result in attempts to gain unauthorized access to sensitive information, intellectual property, mission operations and networks. Our systems (internal, customer and partner systems) and assets may also be subject to damage or interruption from natural and other disaster events or disruptions including tsunamis, floods, earthquakes, fires, water shortages, other extreme weather conditions, epidemics or pandemics, acts of domestic or foreign terrorism, workplace violence, power shortages and blackouts, aging infrastructures and telecommunications failures. In addition, threats to the safety of our directors and employees, threats to the security of our facilities, infrastructure and supply chain, or the release of misleading or deceptive information by criminal, terrorist, or other bad actors, could have a material adverse impact on our business.

Our products, solutions and analysis that we develop or deliver to our customers are also at risk of disruption, loss, or tampering. The integrity of the data (e.g., pixels), information, and analysis in our products and services is at risk of being manipulated either before or after delivery to a customer. Our products with derived information characteristics are also at risk of being incorrect due to errors of deceptive practices by others.

Our customers and partners (including our supply chain and joint ventures) face similar threats. Customer or partner proprietary, classified, or sensitive information stored on our networks is at risk. Assets and intellectual property and products in customer or partner environments are also inherently at risk. We also have risk where we have access to customer and partner networks and face risks of breach, disruption or loss as well. Our supply chain for products and services also is becoming more diverse and therefore the risk is growing.

We have implemented certain systems and processes to help thwart bad actors and protect our data and our systems and assets. The techniques used to gain unauthorized access are constantly evolving, however, and we may be unable to prevent or mitigate all unauthorized access, disruption, loss, or harm. Because of our highly desired intellectual property and our support of the U.S. government and other governments, we (and/or partners we use) may be a particularly attractive target for such attacks by advanced, persistent and highly organized adversaries, including nation states and hostile foreign governments, such as Russia and its allies. The risk of these attacks could be exacerbated by the conflict between Russian and Ukraine discussed above. From time to time, we have experienced attacks on our systems from bad actors that, to date, have not had a material adverse effect on our business. We cannot offer assurances, however, that future attacks will not materially adversely affect our business.

A security event or other significant disruption of our systems, assets, products or solutions could:

•

disrupt the proper functioning of our networks, applications and systems and therefore our operations and/or those of certain of our customers, or partners;

•

result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, our or our customers’ proprietary, confidential, sensitive or otherwise valuable information, including trade secrets, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes;

•

destroy or degrade assets including space, ground and intellectual property assets;

Table of Contents

•

manipulate or tamper with our products, solutions, analysis, or other systems delivered to our customers or partners;

•

compromise other sensitive government functions; and

•

damage our reputation with our customers (particularly agencies of various governments) and the public generally.

A security event that involves classified or other sensitive government information or certain controlled technical information, could subject us to civil or criminal penalties and could result in loss of our secure facility clearance and other accreditations, loss of our government contracts, loss of access to classified information, loss of export privileges or debarment as a government contractor. The risk that these types of events could seriously harm our business is likely to increase as we expand the number of web-based products and services we offer as well as increase the number of countries within which we do business.

Satellites are subject to construction and launch delays, launch failures, damage or destruction during launch, the occurrence of which can materially and adversely affect our operations.

Delays in the construction of satellites and the procurement of requisite components and launch vehicles, limited availability of appropriate launch windows, possible delays in obtaining regulatory approvals, satellite damage or destruction during launch, launch failures, or incorrect orbital placement could have a material adverse effect on our business, financial condition and results of operations. The loss of, or damage to, a satellite due to a launch failure could result in significant delays in anticipated revenue to be generated by that satellite. Any significant delay in the commencement of service of a satellite would delay or potentially permanently reduce the revenue anticipated to be generated by that satellite. In addition, if the loss of a satellite were to occur, such as with our loss of WorldView-4, we may not be able to accommodate affected customers with our other satellites or data from another source until a replacement satellite is available, and we may not have on hand, or be able to obtain in a timely manner, the necessary funds to cover the cost of any necessary satellite replacement. We may also dispute with customers the extent and consequences of any loss or delay. Any launch delay, launch failure, underperformance, delay or perceived delay could have a material adverse effect on our results of operations, business prospects and financial condition.

If our satellites fail to operate as intended, it could have a material adverse effect on our business, financial condition and results of operations.

The manufacturing, testing, launching and operation of satellites involves complex processes and technology. Our satellites employ advanced technologies and sensors that are exposed to severe environmental stresses in space that have and could affect the performance of our satellites. Hardware component problems in space could lead to deterioration in performance or loss of functionality of a satellite. In addition, human operators may execute improper implementation commands that may negatively impact a satellite’s performance. Exposure of our satellites to an unanticipated catastrophic event, such as a meteor shower or a collision with space debris, could reduce the performance of, or completely destroy, the affected satellite. In December 2018, our WorldView-4 satellite experienced a failure in its control moment gyros, preventing the satellite from collecting imagery.

We cannot provide assurances that our satellites will continue to operate successfully in space throughout their expected operational lives. Even if a satellite is operated properly, technical flaws in that satellite’s sensors or other technical deficiencies or anomalies could significantly hinder its performance, which could materially affect our ability to collect imagery and market our products and services successfully. While some anomalies are covered by insurance policies, others are not or may not be covered, or may be subject to large deductibles.

If we suffer a partial or total loss of a deployed satellite, such as the failure of WorldView-4, we would need a significant amount of time and would incur substantial expense to replace that satellite. We may experience other problems with our satellites that may reduce their performance. During any period of time in which a satellite is not fully operational, we may lose most or all of the revenue that otherwise would have been derived from that satellite. Our inability to repair or replace a defective satellite or correct any other technical problem in a timely manner could result in a significant loss of revenue. If a satellite experiences a significant anomaly such that it becomes impaired or is no longer functional, it

Table of Contents

would significantly impact our business, prospects and profitability. Additionally, our review of satellite lives could extend or shorten the depreciable lives of our satellites, which would have an impact on the depreciation we recognize.

Loss of, or damage to, a satellite, adversarial actions impacting the function of our satellites and the failure to obtain data or alternate sources of data for our products may have an adverse impact on our results of operations and financial condition.

In the Earth Intelligence segment, we rely on data collected from a number of sources including data obtained from satellites. We may become unable or limited in our ability to collect such data. For example, satellites can temporarily go out of service and be recovered, or cease to function for reasons beyond our control, including the quality of design and construction, the supply of fuel, the expected gradual environmental degradation of solar panels, the durability of various satellite components and the orbits and space environments in which the satellites are placed and operated. Electrostatic storms, collisions with other objects or actions by malicious actors, including cyber related, could also damage the satellites. Our satellites may be subject to an increased risk of collision with other space objects due to growth in the number of commercial and government satellites. In addition, the functioning of our satellites could be adversely impacted by potential adversarial actions that may create more space debris or through anti-satellite devices, electromagnetic or radio interference with our satellites, cyber and other security attacks, and other similar types of attacks, any or all of which are potentially capable of destroying our satellites or ground systems architecture or rendering them permanently impaired or inoperable. The risk of these malicious and adversarial actions could be exacerbated by the conflict between Russia and Ukraine discussed above. Additionally, in certain instances, governments may discontinue for periods of time the access to or operation of a satellite for any particular area on the Earth and for various reasons may not permit transmission of certain data, whether from a satellite owned by the government or not.

We cannot offer assurances that each of our satellites will remain in operation. Our satellites have certain redundant systems which can fail partially or in their entirety and accordingly satellites may operate for extended periods without all redundant systems in operation, but with single points of failure. The failure of satellite components could cause damage to or loss of the use of a satellite before the end of its expected operational life. Certain of our satellites are nearing the end of their expected operational lives and we can offer no assurance that our satellites will maintain their prescribed orbits or remain operational and we may not have replacement satellites that are immediately available.

We are vulnerable to natural disasters and significant disruptions including tsunamis, floods, earthquakes, fires, water shortages, other extreme weather conditions, epidemics or pandemics, acts of domestic or foreign terrorism, workplace violence, power shortages and blackouts, aging infrastructures and telecommunications failures. Furthermore, climate change has increased, and may continue to increase, the rate, size and scope of these natural disasters. In the event of such a natural disaster or other disruption, we could experience: disruptions to our operations or the operations of suppliers, subcontractors, distributors or customers; destruction of facilities; and/or loss of life.

The availability of many of our products and services depends on the continuing operation of our satellite operations infrastructure, satellite manufacturing operations, information technology, communications systems and national infrastructure. Any downtime, damage to or failure of our systems could result in interruptions in our service, which could reduce our revenue and profits. Our systems are vulnerable to damage or interruption from floods, fires, power loss, aging infrastructure, telecommunications failures, computer viruses, computer denial of service attacks or other attempts to harm our systems. We do not currently maintain a fully comprehensive back-up production facility from which we can continue to collect, process and deliver imagery in the event of the loss of our primary facility. In the event we are unable to collect, process and deliver imagery from our facility, our daily operations and operating results would be materially and adversely affected. In addition, our ground terminal centers are vulnerable to damage or interruption from human error, intentional bad acts, earthquakes, hurricanes, floods, fires, war, terrorist attacks, power losses, hardware failures, systems failures, aging infrastructure, telecommunications failures and similar events. Our satellite manufacturing operations are located in California in proximity to the San Andreas fault line, one of the longest

Table of Contents

and most heavily populated earthquake-prone rifts in the world. Our satellite manufacturing facilities are also subject to risks associated with an aging infrastructure. An infrastructure failure could result in the destruction of satellites under construction or inventory, manufacturing delays or additional costs incurred. We do not maintain back-up manufacturing facilities or operations. The occurrence of any of the foregoing could result in lengthy interruptions in our services and/or damage our reputation, which could have a material adverse effect on our financial condition and results of operations.

Our business with various governmental entities is concentrated in a small number of primary contracts. We recognize significant revenue from U.S. government agencies and a significant amount of our U.S. government revenue is currently generated from a single contract, the EOCL Contract. On May 25, 2022, we were awarded the EOCL Contract by the National Reconnaissance Office (“NRO”), which is a 10-year contract worth up to $3.24 billion, inclusive of a firm 5-year base contract commitment worth $1.5 billion and $1.74 billion in exercisable options. The EOCL Contract has transitioned the imagery acquisition requirements previously addressed by the EnhancedView Contract. The EOCL Contract is a service level agreement to provide image-tasking capacity on our satellites, and other imagery-derived products and services to the U.S. government. Our ability to service other customers could be negatively impacted if we are unable to maintain our current collection capacity. In addition, any inability on our part to meet the performance requirements of the EOCL Contract could result in a performance penalty or breach of that contract. A breach of our contract with government customers or reduction in service to our other customers could have a material adverse effect on our business, financial condition and results of operations. The U.S. government may also terminate or suspend our contracts, including the EOCL Contract, at any time with or without cause. Any changes in the size, scope or term of the EOCL Contract, could impact our satellite replenishment strategy and our ability to repay or refinance our long-term debt. Although our contracts generally involve fixed annual minimum commitments, such commitments, along with all other contracts with the U.S. government, are subject to annual Congressional appropriations and the federal budget process, and as a result, the U.S. government may not continue to fund these contracts at current or anticipated levels. Similarly, our contracts in other jurisdictions are also subject to government procurement policies and procedures.

We face competition that may cause us to have to either reduce our prices for imagery and related services or to lose market share.

Our services compete with satellite and aerial imagery and related services offered by a range of private and government providers. Our current or future competitors may have superior technologies or greater financial, personnel and other resources than we have. The value of our imagery may also be diluted by Earth imagery that is available free of charge.

The U.S. government and foreign governments may develop, construct, launch and operate their own imagery satellites, which could reduce their need to rely on us and other commercial suppliers. In addition, such governments could sell or provide free of charge Earth imagery from their satellites and thereby compete with our imagery and related services. Also, governments may at times make our imagery freely available for humanitarian purposes, which could impair our revenue growth with non-governmental organizations. These governments could also subsidize the development, launch and operation of imagery satellites by our current or future competitors.

Our competitors or potential competitors could, in the future, offer satellite-based imagery or other services with more attractive features than our services. The emergence of new remote imaging technologies or the continued growth of low-cost imaging satellites, could negatively affect our marketing efforts. More importantly, if competitors develop and launch satellites or other imagery-content sources with more advanced capabilities and technologies than ours, or offer services at lower prices than ours, our business and results of operations could be harmed. Due to competitive pricing pressures, such as new product introductions by us or our competitors or other factors, the selling price of our services may further decrease. If we are unable to offset decreases in our average selling prices by increasing our sales volumes or by adjusting our service mix, our revenue and operating margins may decline and our financial position may be harmed.

Table of Contents

We operate in highly competitive industries and in various jurisdictions across the world, which may cause us to have to reduce our prices.

We operate in highly competitive industries and many of our competitors are larger and have substantially greater resources than we have. Our primary competitors for satellite manufacturing contracts include the Boeing Company, Lockheed Martin Corporation and Northrop Grumman Corporation in the United States and Thales S.A. and Airbus Defence and Space, a subsidiary of the Airbus Group, in Europe. We may also face competition in the future from more emerging low-cost competitors, some of which could be subsidized or well-funded. Competition in our Earth Intelligence segment is highly diverse, and while our competitors offer different products, there is often competition for contracts that are part of governmental budgets. Our major existing and potential competitors for our Earth Intelligence segment include commercial satellite imagery companies, state-owned imagery providers, aerial imagery companies, free sources of imagery and unmanned aerial vehicles. Our Earth Intelligence segment faces competition from companies that provide geospatial analytic information and services to the U.S. government, including defense prime contractors such as L3Harris and Booz Allen Hamilton.

In addition, some of our foreign competitors currently benefit from, and others may benefit in the future from, protective measures by their home countries where governments are providing financial support, including significant investments in the development of new technologies. Government support of this nature greatly reduces the commercial risks associated with satellite development activities for these competitors. This market environment may result in increased pressures on our pricing and other competitive factors.

Uncertain global macro-economic and political conditions could materially adversely affect our results of operations and financial condition.

Our results of operations are materially affected by economic and political conditions in the United States and internationally, including inflation, rising interest rates, availability of capital, labor shortages, supply chain disruptions, energy and commodity prices, trade laws, the spread of infectious diseases and governmental responses thereto, the effects of governmental initiatives to manage economic conditions, geopolitical tensions and military conflicts, such as the current situation in Ukraine. Current or potential customers may delay or decrease spending on our products and services as their business and/or budgets are impacted by economic conditions. The inability of current and potential customers to pay us for our products and services may adversely affect our earnings and cash flows.

We are, and in the future may be, a party to legal proceedings, investigations and other claims or disputes, which may relate to subjects including commercial transactions, intellectual property, securities, employee relations, or compliance with applicable laws and regulations.

For instance, in January 2019, a Maxar stockholder filed a putative class action lawsuit in the Federal District Court of Colorado, naming Maxar and members of management as defendants alleging, among other things, that our public disclosures were false or misleading in violation of the Securities Exchange Act of 1934 and seeking monetary damages. An amended consolidated complaint was filed in that case in October 2019. In September 2020, the court granted in part, and denied in part, Maxar’s motion to dismiss. In July 2021, the Federal District Court of Colorado 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 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 established by the Court. Also, in January 2019, a Maxar stockholder resident in Canada issued a putative class action lawsuit in the Ontario Superior Court of Justice against Maxar and members of management claiming misrepresentations in our public disclosures and seeking monetary damages under Canadian securities laws. In November 2019, a second putative class action lawsuit was issued by the same Maxar stockholder resident in Canada, adding a second representative plaintiff and three additional defendants. In February 2020, the January 2019 Canadian

Table of Contents

lawsuit was discontinued. And, in March 2022, the November 2019 Canadian lawsuit was dismissed against all of the Maxar defendants. The plaintiffs have not appealed the dismissal and the time period for such appeal expired in April 2022. In October 2019, a Maxar stockholder filed a putative class action lawsuit in California state court, naming Maxar and certain members of management and the Board of Directors as defendants. The lawsuit is based upon many of the same underlying factual allegations as the federal class action but asserts claims under the Securities Act of 1933. An amended complaint was filed in April 2020. In November 2020, defendants filed a demurrer to the operative complaint, and in January 2021, the court largely overruled the demurrer. On August 20, 2021, the court certified a class consisting of investors who acquired Maxar stock in exchange for DigitalGlobe stock pursuant to the Company’s June 2, 2017 Registration Statement and Prospectus issued in connection with Maxar’s October 2017 acquisition of DigitalGlobe. In November 2019, a purported derivative complaint was filed against Maxar, certain current and former members of management and the Board of Directors in the Federal District Court of Delaware, also based on the same factual allegations as the federal putative class action. In September 2020, a second purported derivative case was filed in the Federal District Court of Delaware, based on the same allegations as the earlier derivative case. The two derivative cases pending in the Federal District Court of Delaware have been consolidated and are stayed. In September 2021, a third purported derivative complaint was filed against Maxar, certain current and former members of management and the Board of Directors in the Court of Chancery of the State of Delaware, also based on the same factual allegations as the federal class action. In November 2021, the parties stipulated to a stay of this action.

These legal proceedings could result in substantial costs and diversion of management’s attention and resources and could harm our stock price, business, prospects, results of operations and financial condition. These and other legal proceedings and investigations are inherently uncertain and we cannot predict their duration, scope, outcome or consequences. There can be no assurance that these or any such matters that have been or may in the future be brought against us will be resolved favorably. In connection with any government investigations, in the event the government takes action against us or the parties resolve or settle the matter, we may be required to pay substantial fines or civil and criminal penalties and/or be subject to equitable remedies, including disgorgement or injunctive relief. Other legal or regulatory proceedings, including lawsuits filed by private litigants, may also follow as a consequence. These matters are likely to be expensive and time-consuming to defend, settle and/or resolve and may require us to implement certain remedial measures that could prove costly or disruptive to our business and operations. They may also cause damage to our business reputation. The unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows.

We are dependent on our ability to attract, train and retain employees. Our inability to do so, or the loss of key personnel, would cause serious harm to our business.

Our success is largely dependent on the abilities and experience of our executive officers and other key personnel to oversee all aspects of our operations and to deliver on our corporate strategies. Competition for highly skilled management, technical, research and development and other personnel is intense in our industry. In order to maintain our ability to compete, we must continuously retain the services of a core group of specialists in a wide variety of disciplines. To the extent that the demand for qualified personnel exceeds supply, we have and could in the future experience higher labor, recruiting or training costs in order to attract and retain such employees, or could experience difficulties in performing under contracts if our need for such employees is unmet. We may not be able to retain our current executive officers or key personnel or attract and retain additional executive officers or key personnel as needed to deliver on our corporate strategy. Furthermore, the recent volatility in our stock price may undermine the use of our equity as a retention tool and may make it more difficult to retain key personnel.

Acquisitions or divestitures could result in adverse impacts on our operations.

In order to grow our business, we may acquire additional assets or companies, including for example, our Vricon Acquisition completed on July 1, 2020. In connection with the Vricon Acquisition or any future acquisitions, there can be no assurance that we will be able to identify, acquire, or obtain the required regulatory approvals, or profitably manage the additional businesses or successfully integrate any acquired businesses, products or technologies without substantial expenses, delays or other operational, regulatory, or financial problems. In addition, any acquired businesses, products or technologies may not achieve anticipated revenues and income growth.

Table of Contents

Further, acquisitions may involve a number of additional risks, including diversion of management’s attention, failure to retain key personnel, or failure to attract the necessary talent to manage organizational growth. We may become responsible for unexpected liabilities that were not discovered or disclosed in the course of due diligence in connection with historical acquisitions and any future acquisitions. Additionally, acquisitions with international operations such as the Vricon Acquisition with operations in Sweden, expose us to greater international business risks. If we do not realize the expected benefits or synergies of an acquisition, such as revenue gains or cost reductions, there could be a material adverse effect on our business, results of operations and financial condition.

We may also seek to divest portions of our businesses which may no longer be aligned with our strategic initiatives and long-term objectives. Various factors could materially affect our ability to successfully do so, including the availability of buyers willing to purchase the assets on terms acceptable to us, difficulties in the separation of operations, the diversion of management's attention from other business concerns, the disruption of our business, the potential loss of key employees and the retention of uncertain contingent liabilities related to the divested business. We cannot assure that we will be successful in managing these or any other significant risks that we encounter in divesting a business or product line, and any divestiture we undertake could materially and adversely affect our business, financial condition, results of operations and cash flows.

Disruptions in U.S. government operations and funding could have a material adverse effect on our revenues, earnings and cash flows and otherwise adversely affect our financial condition.

Any disruptions in federal government operations could have a material adverse effect on our revenues, earnings and cash flows. A prolonged failure to maintain significant U.S. government operations, particularly those pertaining to our business, could have a material adverse effect on our revenues, earnings and cash flows. Continued uncertainty related to recent and future U.S. federal government shutdowns, the U.S. budget including the federal debt ceiling and/or failure of the U.S. government to enact annual appropriations, such as long-term funding under a continuing resolution, could have a material adverse effect on our revenues, earnings and cash flows. Further, if the federal debt ceiling is not raised, the U.S. could default on its debt which could have a material adverse effect on our revenues, earnings and cash flows which are difficult to predict. The current split control of the U.S. government increases these risks. Additionally, disruptions in federal government operations may negatively impact regulatory approvals and guidance that are important to our operations.

Current U.S. government policy encourages the U.S. government’s use of commercial data and Space Infrastructure providers to support U.S. national security objectives. Under the EOCL Contract, our contractual counterparty acquires imagery and imagery-derived products on behalf of our customers within the U.S. government. We are considered by the U.S. government to be a commercial data provider. U.S. government policy is subject to change and any change in policy away from supporting the use of commercial data and Space Infrastructure providers to meet U.S. government imagery and Space Infrastructure needs, or any material delay or cancellation of planned U.S. government programs, including the EOCL Contract, could materially adversely affect our revenue and our ability to achieve our growth objectives.

Our business involves significant risks and uncertainties that may not be covered by insurance.

A significant portion of our business relates to designing, developing and manufacturing advanced space technology products and systems. New technologies may be untested or unproven. Failure of some of these products and services could result in extensive property damage. Accordingly, we may incur liabilities that are unique to our products and services.

We endeavor to obtain insurance coverage from established insurance carriers to cover these risks and liabilities. However, the amount of insurance coverage that we maintain may not be adequate to cover all claims or liabilities.

Table of Contents

Existing coverage may be canceled while we remain exposed to the risk and it is not possible to obtain insurance to protect against all operational risks, natural hazards and liabilities.

We have historically insured satellites in our constellation to the extent that insurance was available on acceptable premiums and other terms. The insurance proceeds received in connection with a partial or total loss of the functional capacity of any of our satellites would not be sufficient to cover the replacement cost, if we choose to do so, of an equivalent high-resolution satellite. In addition, this insurance will not protect us against all losses to our satellites due to specified exclusions, deductibles and material change limitations customary in the industry. Exclusions generally include, for example, acts of war or other hostile actions for which exclusions are customary in the industry at the time the policy is written. In the event we experience potential adversarial actions that destroy or impair the operability or functioning of any of our satellites, whether through actions creating more space debris or through anti-satellite devices, electromagnetic or radio interference with our satellites, cyber and other security attacks affecting our satellites or ground systems architecture, or other similar types of attacks, there can be no assurance that any insurance proceeds will be available for any partial or total loss of a satellite or a satellite’s performance. In addition, it may be difficult or impossible to insure against certain risks, including a partial deterioration in satellite performance and satellite re-entry.

The price and availability of insurance fluctuate significantly. Although we have historically been able to obtain insurance coverage for in-orbit satellites, we cannot guarantee that we will be able to do so in the future. We intend to maintain insurance for our operating satellites, but any determination we make as to whether to obtain insurance coverage will depend on a variety of factors, including the availability of insurance in the market, the cost of available insurance and the redundancy of our operating satellites. Insurance market conditions or factors outside our control at the time we are in the market for the required insurance, such as failure of a satellite using similar components, could cause premiums to be significantly higher than current estimates and could reduce amounts of available coverage. The cost of our insurance has been increasing and may continue to increase. Higher premiums on insurance policies will reduce our operating income by the amount of such increased premiums. If the terms of in-orbit insurance policies become less favorable than those currently available, there may be limits on the amount of coverage that we can obtain, or we may not be able to obtain insurance at all.

In addition, even though we carry business interruption insurance policies, any business interruption losses could exceed the coverage available or be excluded from our insurance policies, which include customary exclusions such as acts of war, among others. Any disruption of our ability to operate our business could result in a material decrease in our revenues or significant additional costs to replace, repair or insure our assets, which could have a material adverse impact on our financial condition and results of operations.

Historically, we have contracted with a single vendor or a limited number of vendors to provide certain key products or services, such as construction of satellites and launch vehicles and management of certain remote ground terminals and direct access facilities. In addition, our manufacturing operations depend on specific technologies and companies for which there may be a limited number of vendors. We are increasingly dependent upon subcontractors and suppliers which subjects our business and results of operations to risks of supplier interruption. If these vendors are unable to meet our needs because they fail to perform adequately, are unable to match new technological requirements or opportunities, or are unable to dedicate engineering and other resources necessary to provide the services contracted for, our business, financial position and results of operations may be adversely affected. While alternative sources for these products, services and technologies may exist, we may not be able to develop these alternative sources quickly and cost-effectively, which could materially impair our ability to operate our business. Furthermore, these vendors may request changes in pricing, payment terms or other contractual obligations, which could cause us to make substantial additional investments.

Additionally, some of our suppliers’ employees are represented by labor unions. Labor union actions at suppliers can also affect us. Work stoppages and instability in our relationships with labor unions could delay the production and/or development of our products, which could strain relationships with customers, cause a loss of revenues and adversely affect our operations.

Table of Contents

Disruptions in the supply of key raw materials or components and difficulties in the supplier qualification process, as well as increases in prices of raw materials, could adversely impact us.

Many raw materials, major components and product equipment items, particularly in our Space Infrastructure segment, are procured or subcontracted on a single or sole-source basis. Although we maintain a qualification and performance surveillance process and we believe that near-term sources of supply for raw materials and components are generally adequate, it is difficult to predict what effects shortages or price increases may have in the future. Supply shortages related to electronic chips is an example of some of the challenges we may face with materials. Our ability to manage inventory and meet delivery requirements may be constrained by our suppliers’ inability to scale production and adjust delivery of long-lead time products during times of volatile demand. Our inability to fill our supply needs would jeopardize our ability to fulfill obligations under commercial and government contracts, which could, in turn, result in reduced sales and profits, contract penalties or terminations and damage to customer relationships and could have a material adverse effect on our operating results, financial condition, or cash flows.

Key raw materials used in our operations include metals such as aluminum and titanium, which are usually procured by our suppliers who manufacture parts in accordance with our drawings. We also purchase materials such as chemicals; composites; electronic, electro-mechanical and mechanical components; subassemblies; and subsystems that are integrated with the manufactured parts for final assembly into finished products and systems. We are impacted by increases in the prices of raw materials used in production on fixed-price business.

We monitor sources of supply to attempt to assure that adequate raw materials and other supplies needed in manufacturing processes are available.

We have experienced and may continue to experience significant difficulty in our ability to procure certain raw materials, components, sub-assemblies and other supplies required in our manufacturing processes. Prolonged disruptions in the supply of any of our key raw materials or components, difficulty completing qualification of new sources of supply, implementing use of replacement materials, components or new sources of supply, or a continuing increase in the prices of raw materials, energy or components could have a material adverse effect on our operating results, financial condition, or cash flows.

We are dependent on resellers of our services for a portion of our revenue. If these resellers fail to market or sell our services successfully, our business could be harmed.

The Earth Intelligence segment has historically generated a portion of its revenue from foreign and domestic resellers. In the Earth Intelligence segment, we rely on foreign resellers and partners to market and sell the majority of our services in the international market. Our foreign resellers and partners may not have the skill or experience to develop regional commercial markets for our services, or may have competing interests that negatively affect their sales of our services. If we fail to enter into reseller agreements on a timely basis or if our resellers and partners fail to market and sell our services successfully, these failures could negatively impact our business, financial condition and results of operations.

We may not be successful in developing new technology and the technology we are successful in developing may not meet the needs of our customers or potential new customers.

The markets in which we operate are characterized by changing technology and evolving industry standards. Despite years of experience in meeting customer systems requirements with the latest in technological solutions, we may not be successful in identifying, developing and marketing products or systems that respond to rapid technological change, evolving technical standards and systems developed by others. Our competitors may develop technology that better meets the needs of our customers. If we do not continue to develop, manufacture and market innovative technologies or applications that meet customers’ requirements, sales may suffer and our business may not continue to grow in line with historical rates or at all. If we are unable to achieve sustained growth, we may be unable to execute our business strategy, expand our business or fund other liquidity needs and our business prospects, financial condition and results of operations could be materially and adversely affected.

Table of Contents

Our technology may violate the proprietary rights of third parties and our intellectual property may be misappropriated or infringed upon by third parties, each of which could have a negative impact on our operations.

If any of our technology violates proprietary rights, including copyrights and patents, third parties may assert infringement claims against us. Certain software modules and other intellectual property used by us or in our satellites, systems and products make use of or incorporate licensed software components and other licensed technology. These components are developed by third parties over whom we have no control. Any claims brought against us may result in limitations on our ability to use the intellectual property subject to these claims. We may be required to redesign our satellites, systems or products or to obtain licenses from third parties to continue offering our satellites, systems or products without substantially re-engineering such products or systems.

Our intellectual property rights may be invalidated, circumvented, challenged, infringed or required to be licensed to others. An infringement or misappropriation could harm any competitive advantage we currently derive or may derive from our proprietary rights.

To protect our proprietary rights, we rely on a combination of patent protections, copyrights, trade secrets, trademark laws, confidentiality agreements with employees and third parties and protective contractual provisions such as those contained in license agreements with consultants, subcontractors, vendors and customers. Although we apply rigorous standards, documents and processes to protect our intellectual property, there is no absolute assurance that the steps taken to protect our technology will prevent misappropriation or infringement. Litigation may be necessary to enforce or protect our intellectual property rights, our trade secrets or determine the validity and scope of the proprietary rights of others. Such litigation may be time-consuming and expensive to prosecute or defend and could result in the diversion of our time and resources. In addition, competitors may design around our technology or develop competing technologies.

The acceptance of our imagery services may not continue and our historic growth rates should not be relied upon as an indicator of future growth.

We cannot accurately predict the extent of the market acceptance of our services or whether there will continue to be a market for our services on terms we find acceptable. Market acceptance of our commercial high-resolution Earth imagery and related services depends on a number of factors, including the quality, scope, timeliness, sophistication, price and the availability of substitute services. Changes in the market acceptance of our offerings, or other services that utilize our imagery, failure of new markets to develop, the impact of competitive conditions, or our need to make significant investments to achieve acceptance by the market would negatively affect our business, financial condition and results of operations. We may not continue to grow in line with historical rates or at all. If we are unable to achieve sustained growth, we may be unable to execute our business strategy, expand our business or fund other liquidity needs and our business prospects, financial condition and results of operations could be materially and adversely affected.

We are unable to predict the extent to which the global COVID-19 pandemic or other pandemics, epidemics or infectious disease outbreaks may adversely impact our business operations, financial performance, results of operations and stock price.

Our business and operations have been and may continue to be adversely affected by the ongoing COVID-19 pandemic, which has also caused significant disruption in the operations of third parties upon whom we rely. Our supply chain is under stress inside and outside of the U.S., and we continue to monitor and assess the actual and potential COVID-19 or related force majeure impacts on the supply chain, our operations and customer commitments. There is a risk that these schedule delays could result in obligations for material liquidated damages owed to our customers. We have received some force majeure claims from suppliers related to COVID-19; however, at this time we do not expect the claims to result in a material financial impact. Future outbreaks of COVID-19 or other pandemics, epidemics or infectious diseases may further disrupt our supply chain.

From time to time, we have experienced, and could in the future experience, a variation in the consumption of access minutes by our customers as a result of COVID-19, or other pandemics, epidemics or infectious outbreaks and the preventative measures instituted by governments and businesses to mitigate their spread, which resulted, and may in the future result, in periods of business slowdown. This impact could be more significant in the future, which could

Table of Contents

negatively impact revenue. In many instances, COVID-19 represents a force majeure event and as such, we have notified certain customers that we will be exercising our contractual legal rights, and in some instances we have made claims exercising such rights, given the uncertain nature of the current pandemic and its near and long-term impacts on the cost and schedule of the numerous programs in our existing backlog. Additionally, our customers may slow down their development of new projects or may experience financial difficulties impacting their ability to fund projects already in backlog as a result of COVID-19, or other pandemics, epidemics or infectious disease outbreaks.

We cannot predict the degree to which, or the time period that, global economic conditions, the global supply chain and our sales and operations will be affected by COVID-19 or other pandemics, epidemics or infectious diseases and preventative measures imposed from time to time by governments and businesses to prevent their spread. The degree to which COVID-19 or other pandemics, epidemics or infectious disease outbreaks could impact us will depend on numerous factors and future developments that are difficult to predict. The effects of the COVID-19 pandemic or another pandemic, epidemic or infectious disease outbreak on our business, sales, financial condition, liquidity and results of operations could be material.

Changes in our accounting estimates and assumptions could negatively affect our financial position and results of operations.

We prepare our consolidated financial statements in accordance with U.S. GAAP. These accounting principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of our financial statements. We are also required to make certain judgments that affect the reported amounts of revenues and expenses during each reporting period. We periodically evaluate our estimates and assumptions including, but not limited to, those relating to our critical accounting policies of revenue recognition, including our long-term contracts accounted for utilizing the cost-to-cost method and income taxes in addition to other estimates related to restructuring costs, recoverability of assets including customer receivables, valuation of goodwill and intangibles, contingencies and stock-based compensation. We base our estimates on historical experience and various assumptions that we believe to be reasonable based on specific circumstances. These assumptions and estimates involve the exercise of judgment and discretion, which may evolve over time in light of operational experience, regulatory direction, developments in accounting principles and other factors. Actual results could differ from these estimates as a result of changes in circumstances, assumptions, policies or developments in the business, which could materially affect our consolidated financial statements.

We may be required to recognize impairment charges.

Long-lived assets, including goodwill and intangible assets, are tested annually for impairment in the fourth quarter or whenever there is an indication that an asset may be impaired. In the past, we have recognized significant impairment losses related to goodwill, intangible assets, property, plant and equipment, inventory and orbital receivables.

Disruptions to our business, unexpected significant declines in our operating results, adverse technological events or changes in the regulatory markets in which we operate, and significant declines in our stock price have resulted and may result in further impairment charges to our tangible and intangible assets. Any future impairment charges could substantially affect our reported results.

Pension and other postretirement benefit obligations may materially impact our earnings, stockholders’ equity and cash flows from operations, and could have significant adverse impacts in future periods.

We maintain defined benefit pension and other postretirement benefits plans for some of our employees. Potential pension contributions include discretionary contributions to improve the plans’ funded status. The extent of future contributions depends heavily on market factors such as the discount rate and the actual return on plan assets. We estimate future contributions to these plans using assumptions with respect to these and other items. Changes to those assumptions could have a significant effect on future contributions, annual pension and other postretirement costs, the value of plan assets and our benefit obligations.

Table of Contents

Significant changes in actual return on pension assets, discount rates and other factors could adversely affect our results of operations and require cash pension contributions in future periods. Changes in discount rates and actual asset returns different than our expected asset returns can result in significant non-cash actuarial gains or losses which we record in the fourth quarter of each fiscal year and, if applicable, in any quarter in which an interim re-measurement is triggered. With regard to cash pension contributions, funding requirements for our pension plans are largely dependent upon interest rates, actual investment returns on pension assets and the impact of legislative or regulatory changes related to pension funding obligations.

We also provide other postretirement benefits to certain of our employees, consisting principally of health care, dental and life insurance for eligible retirees and qualifying dependents. Our estimates of future costs associated with these benefits are also subject to assumptions, including estimates of the level of medical cost increases and discount rates.

Fluctuations in foreign exchange rates could have a negative impact on our business.

Our revenues, expenses, assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars for the purposes of compiling our Consolidated Financial Statements. We have in the past and may in the future, use hedging strategies to manage and minimize the impact of exchange rate fluctuations on our cash flow and economic profits. There are complexities inherent in determining whether and when foreign exchange exposures will materialize, in particular given the possibility of unpredictable revenue variations arising from schedule delays and contract postponements. Furthermore, if we use hedging strategies in the future, we could be exposed to the risk of non-performance of our hedging counterparties. We may also have difficulty with our hedging strategy in the future depending on the willingness of hedging counterparties to extend credit. Accordingly, no assurances may be given that our exchange rate hedging strategy would protect us from significant changes or fluctuations in revenues and expenses denominated in U.S. dollars.

Our restructuring activities and cost saving initiatives may not achieve the results we anticipate.

We have previously and may in the future undertake cost reduction initiatives and organizational restructurings to improve operating efficiencies, optimize our asset base and generate cost savings. We cannot be certain that these initiatives have been or will be completed as planned or without business interruption, that these initiatives will not generate additional costs, such as severance or other charges, or that the estimated operating efficiencies or cost savings from such activities will be fully realized or maintained over time.

Risks Related to Our Indebtedness and Our Common Stock

The implementation of our business strategies, such as expanding our satellite constellation and our products and services offerings, requires a substantial outlay of capital. As we pursue our business strategies and seek to respond to opportunities and trends in our industry, our actual capital expenditures may differ from our expected capital expenditures, and there can be no assurance that we will be able to satisfy our capital requirements in the future. We are highly leveraged, but we currently expect that our ongoing liquidity requirements for sustaining our operations will be satisfied by cash on hand and cash generated from our existing and future operations supplemented, where necessary, by available credit. However, we cannot provide assurances that our businesses will generate sufficient cash flow from operations in the future or that additional capital will be available in amounts sufficient to enable us to execute our business strategies or refinance our indebtedness. Our ability to refinance or increase our debt financing and/or renew existing credit facilities may be limited by our existing financial and non-financial covenants, credit objectives, or the conditions of the debt capital market generally. Furthermore, our current financing arrangements contain certain restrictive financial and non-financial covenants (e.g., the achievement or maintenance of stated financial ratios) that may impact our access to those facilities and significantly limit future operating and financial flexibility.

Table of Contents

Finally, the recent Russian military actions and the resulting sanctions have adversely affected and could continue to adversely affect the global economy and financial markets leading to significant volatility and instability and lack of liquidity in capital markets, potentially making it more difficult for us to raise adequate capital to finance our business strategies, refinance or increase our debt financing, and/or renew existing credit facilities. See also “Our business, financial condition and results of operations could be materially adversely affected by impacts resulting from the conflict in Ukraine or any other geopolitical tensions” above.

We need capital to finance operating working capital requirements and growth initiatives and to pay our outstanding debt obligations as they become due for payment. If the cash generated from our businesses, together with the credit available under existing bank facilities, is not sufficient to fund future capital requirements, we will require additional debt or equity financing. Our ability to access capital markets on terms that are acceptable to us will be dependent on prevailing market conditions, as well as our future financial condition. Further, our ability to refinance or increase our debt financing and/or renew existing facilities may be limited by our existing leverage, financial and non-financial covenants, credit objectives and debt capital market conditions.

We have in the past, and may continue in the future to, receive government grants for research and development activities and other business initiatives. Any agreement or grant of this nature with government may be accompanied by contractual obligations applicable to us, which may result in the grant money becoming repayable if certain requirements are not met. A failure to meet contractual obligations under such agreements and grants and a consequent requirement to repay money received could negatively impact our results of operations and financial condition.

We have a significant amount of indebtedness and leverage. Our level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on, or other amounts due with respect to our indebtedness. Our long-term debt under our Syndicated Credit Facility bears interest at floating rates related to the Secured Overnight Financing Rate (“SOFR”) (for U.S. dollar borrowings), plus a margin. As a result, our interest payment obligations on such indebtedness will increase if such interest rates increase to the extent these changes are not mitigated by our interest rate swaps. Our leverage and debt service obligations could adversely impact our business, including by:

•

impairing our ability to meet one or more of the financial ratios contained in our credit facilities or to generate cash sufficient to pay interest or principal, including periodic principal payments;

•

increasing our vulnerability to general adverse economic and industry conditions;

•

limiting our ability to obtain additional debt or equity financing on favorable terms, if at all;

•

requiring the dedication of a portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures, dividends to stockholders or to pursue future business opportunities;

•

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

•

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

•

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

Any of the forgoing factors could have negative consequences on our financial condition and results of operation.

Table of Contents

Our current financing arrangements contain certain restrictive covenants that impact our future operating and financial flexibility.

Our current financing arrangements contain certain restrictive covenants that may impact our future operating and financial flexibility. Our debt funding is provided under our financing agreements, which contains a series of positive and negative covenants with which we must comply, including financial and non-financial covenants. If we fail to comply with any covenants and are unable to obtain a waiver or other cure thereof, the lenders under the Syndicated Credit Facility or the holders of the 7.75% 2027 Notes or 7.54% 2027 Notes (as such terms are defined below) may be able to take certain actions with respect to the amounts owing under such agreements or notes, as applicable, including requiring early payment thereof. Any such actions could have a material adverse effect on our financial condition. These covenants could also have the effect of limiting our flexibility in planning for or reacting to changes in our business and the markets in which we compete.

Our actual operating results may differ significantly from our guidance.

From time to time, we release guidance regarding our future performance that represents our management’s estimates as of the date of release. This guidance, which consists of forward-looking statements, is prepared by our management and is qualified by, and subject to, the assumptions and the other information contained or referred to in the release. Our guidance is not prepared with a view toward compliance with published guidelines of the American Institute of Certified Public Accountants, and neither any independent registered public accounting firm nor any other independent expert or outside party compiles, examines or reviews the guidance and, accordingly, no such person expresses any opinion or any other form of assurance with respect thereto.

Guidance is based upon a number of assumptions and estimates that, while presented with numerical specificity, is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and are based upon specific assumptions with respect to future business decisions, some of which will change. We generally state possible outcomes as high and low ranges which are intended to provide a sensitivity analysis as variables are changed but are not intended to represent that actual results could not fall outside of these ranges. The principal reason that we release this data is to provide a basis for our management to discuss our business outlook with analysts and investors. We do not accept any responsibility for any projections or reports published by any such persons.

Guidance is necessarily speculative in nature, and it can be expected that some or all of the assumptions of the guidance furnished by us will not materialize or will vary significantly from actual results, particularly any guidance relating to the results of operations of acquired businesses or companies as our management will be less familiar with their business, procedures and operations. Accordingly, our guidance is only an estimate of what management believes is realizable as of the date of release. Actual results will vary from the guidance and the variations may be material. Investors should also recognize that the reliability of any forecasted financial data will diminish the farther in the future that the data are forecast. In light of the foregoing, investors are urged to put the guidance in context and not to place undue reliance on it.

Any failure to successfully implement our operating strategy or the occurrence of any of the events or circumstances set forth in this Annual Report on Form 10-K could result in the actual operating results being different than the guidance, and such differences may be adverse and material.

We could be adversely impacted by actions of activist stockholders, and such activism could impact the value of our securities.

We value constructive input from our stockholders and the investment community. However, there is no assurance that the actions taken by our Board of Directors and management in seeking to maintain constructive engagement with our stockholders will be successful. Certain of our stockholders have expressed views with respect to the operation of our business, our business strategy, corporate governance considerations or other matters. Responding to actions by activist stockholders can be costly and time-consuming, disrupting our operations and diverting the attention of management and our employees. The perceived uncertainties as to our future direction due to activist actions could affect the market price

Table of Contents

of our stock, result in the loss of potential business opportunities and make it more difficult to attract and retain qualified personnel, board members and business partners.

The price of our common stock has been volatile and may fluctuate substantially.

Our common stock is listed on the NYSE and the TSX and the price for our common stock has historically been volatile. The market price of our common stock may continue to be highly volatile and may fluctuate substantially due to the following factors (in addition to the other risk factors described in this section):

•

general economic conditions;

•

fluctuations in our operating results;

•

variance in our financial performance from the expectations of equity and/or debt research analysts;

•

techniques employed by short sellers to drive down the market price of our common stock;

•

conditions and trends in the markets we serve;

•

additions of or changes to key employees;

•

changes in market valuations or earnings of our competitors;

•

trading volumes of our common stock;

•

future sales of our equity securities and/or future issuances of indebtedness;

•

changes in the estimation of the future sizes and growth rates of our markets; and

•

legislation or regulatory policies, practices or actions.

In addition, the stock markets in general have experienced extreme price and volume fluctuations that have at times been unrelated or disproportionate to the operating performance of the particular companies affected. Technical factors in the public trading market for our common stock may produce price movements that may or may not comport with macro, industry or company-specific fundamentals, including, without limitation, the sentiment of retail investors (including as may be expressed on financial trading and other social media sites), the amount and status of short interest in our common stock, access to margin debt and trading in options and other derivatives on our common stock. These market and industry factors may materially harm the market price of our common stock irrespective of our operating performance.

A significant or prolonged decrease in our market capitalization, including a decline in stock price, or a negative long-term performance outlook, could result in an impairment of our assets which results when the carrying value of our assets exceed their fair value.

In the past several years, our securities have been the subject of short selling. Reports and information have been published about us that we believe are mischaracterized or incorrect, and which have in the past been followed by a decline in our stock price. If there are short seller allegations in the future, we may have to expend a significant amount of resources to investigate such allegations and/or defend ourselves.

In addition, in 2019, we became subject to certain securities class action litigation as a result of volatility in the price of our common stock, which could result in substantial costs and diversion of management’s attention and resources and could harm our stock price, business, prospects, results of operations and financial condition. See Part I, Item 3, “Legal Proceedings” in this Annual Report on Form 10-K for additional information.

If securities or industry analysts discontinue publishing research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline.

The trading market for our common stock depends in part on the research and reports that securities or industry analysts publish about us, our business, our market and our competitors. We do not have any control over these analysts. If one or more of the analysts who cover us downgrade our stock or change their opinion of our stock, our stock price would likely decline. If one or more of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline.

Table of Contents

Our amended and restated certificate of incorporation and our amended and restated bylaws may impede or discourage a takeover, changes in management or changes in the Board of Directors, which could reduce the market price of our common stock.

Certain provisions in our amended and restated certificate of incorporation and our amended and restated bylaws may delay or prevent a third-party from acquiring control of us, even if a change in control would be beneficial to our existing stockholders. These provisions include:

•

no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

•

the exclusive right of the Board of Directors to elect a director to fill a vacancy created by the expansion of the Board of Directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on the Board of Directors;

•

the ability of the Board of Directors to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;

•

a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of stockholders;

•

the requirement that a special meeting of stockholders may be called only by the chairman of the Board of Directors or two or more stockholders who hold, in the aggregate, at least ten percent (10%) of the voting power of our outstanding shares, which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors;

•

a supermajority vote of our stockholders to amend our amended and restated bylaws and certain provisions of our amended and restated certificate of incorporation; and

•

advance notice procedures that stockholders must comply with in order to nominate candidates to the Board of Directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our business.

These provisions could impede a merger, takeover or other business combination involving us or discourage a potential acquirer from making a tender offer for our common stock, which, under certain circumstances, could reduce the market price of our common stock.

In addition, our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against our directors, officers and employees for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware (“Delaware Exclusive Forum Provision”). Our amended and restated bylaws further provide that the federal district courts of the United States of America will, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action under the Securities Act of 1933, as amended (“Federal Forum Provision”).

The Delaware Exclusive Forum Provision is intended to apply to claims arising under Delaware state law and would not apply to claims brought pursuant to the Exchange Act or the Securities Act or any other claim for which the federal courts have exclusive jurisdiction. In addition, the Federal Forum Provision is intended to apply to claims arising under the Securities Act and would not apply to claims brought pursuant to the Exchange Act. These exclusive forum provisions will not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder and, accordingly, actions by our stockholders to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder must be brought in federal courts.

These exclusive forum provisions may limit a stockholders’ ability to bring a claim in a judicial forum of its choosing for disputes with the company or its directors, officers or other employees, which may discourage lawsuits against the Company and its directors, officers and other employees. In addition, stockholders who do bring a claim in the Court of Chancery of the State of Delaware pursuant to the Delaware Exclusive Forum Provision could face additional litigation costs in pursuing any such claim, particularly if they do not reside in or near Delaware. The court in the designated forum under our exclusive forum provisions may also reach different judgments on results than would other courts,

Table of Contents

including courts where a stockholder would otherwise choose to bring the action, and such judgments or results may be more favorable to the Company than to our stockholders. Further, the enforceability of similar exclusive forum provisions in other companies’ organizational documents has been challenged in legal proceedings, and it is possible that a court could find any of our exclusive forum provisions to be inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings. If a court were to find all or any part of our exclusive forum provisions to be inapplicable or unenforceable in an action, we might incur additional costs associated with resolving such action in other jurisdictions.

There can be no assurance that we will continue to pay dividends on our common stock.

Our Board of Directors significantly reduced our dividends in the first quarter of 2019. Although our Board of Directors has historically declared a quarterly cash dividend which we have paid, the payment of future dividends is subject to a number of risks and uncertainties, and we may not pay quarterly dividends in the same amounts or at all in the future. The declaration, amount and timing of cash dividends are subject to capital availability and determinations by our Board of Directors that such dividends are in the best interest of our stockholders and are in compliance with all respective laws and applicable agreements. Our ability to pay dividends will depend upon, among other factors, our cash balances and potential future capital requirements for strategic transactions, including acquisitions, debt service requirements, results of operations, financial condition and other factors that our Board of Directors may deem relevant. The elimination of our dividend payments and/or our dividend program could have a negative effect on our stock price.

Risks Related to Legal and Regulatory Matters

Our operations in the U.S. government market are subject to significant regulatory risk.

Our operations in the U.S. government market are subject to significant government regulation. A failure by us to maintain the relevant clearances and approvals could limit our ability to operate in the U.S. market. Further, there can be no assurance that we will continue to be awarded contracts by the U.S. government. In addition, a failure by us to keep current and compliant with relevant U.S. regulations could result in fines, penalties, repayments, or suspension or debarment from U.S. government contracting or subcontracting for a period of time and could have an adverse effect on our standing and eligibility for future U.S. government contracts.

We and our subsidiaries are parties to certain contracts with various departments and agencies of the U.S. government, including the U.S. Department of Defense, which require that certain of our legal entities be issued facility security clearances under the National Industrial Security Program. The National Industrial Security Program requires that a corporation maintaining a facility security clearance be effectively insulated from foreign ownership, control or influence (“FOCI”). We have entered into a Board Resolution to mitigate remaining FOCI risks as seen by the U.S. government. Failure to maintain an agreement with the U.S. Department of Defense regarding the appropriate FOCI mitigation arrangement could result in invalidation or termination of the facility security clearances, which in turn would mean that our U.S. subsidiaries would not be able to enter into future contracts with the U.S. government requiring facility security clearances, and may result in the loss of the ability of those subsidiaries to complete existing contracts with the U.S. government.

Our business is subject to various regulatory risks that could adversely affect our operations.

The environment in which we operate is highly regulated due to the sensitive nature of our complex and technologically advanced systems, including satellites, products, hardware and software, in addition to those regulations broadly

Table of Contents

applicable to publicly listed corporations. There are numerous regulatory risks that could adversely affect operations, including but not limited to:

•

Changes in laws and regulations. It is possible that the laws and regulations governing our business and operations will change in the future. A substantial portion of our revenue is generated from customers outside of the U.S. There may be a material adverse effect on our financial condition and results of operations if we are required to alter our business to comply with changes in both domestic and foreign regulations, telecommunications standards, foreign policy, tariffs or taxes and other trade barriers that reduce or restrict our ability to sell our products and services on a global basis, or by political and economic instability in the countries in which we conduct business. Any failure to comply with such regulatory requirements could also subject us to various fines, penalties or sanctions.

•

Export Restrictions. Certain of our businesses and satellites, systems, products, services or technologies we have developed require the implementation or acquisition of products or technologies from third parties, including those in other jurisdictions. In addition, certain of our satellites, systems, products or technologies may be required to be forwarded or exported to other jurisdictions. In certain cases, if the use of the technologies can be viewed by the jurisdiction in which that supplier or subcontractor resides as being subject to export constraints or restrictions relating to national security, we may not be able to obtain the technologies and products that we require from suppliers or subcontractors who would otherwise be our preferred choice or may not be able to obtain the export permits necessary to transfer or export our technology. To the extent that we are able, we obtain pre-authorization for re-export prior to signing contracts which oblige us to export subject technologies, including specific foreign government approval as needed. In the event of export restrictions, we may have the ability through contract force majeure provisions to be excused from our obligations. Notwithstanding these provisions, the inability to obtain export approvals, export restrictions or changes during contract execution or non-compliance by our customers could have an adverse effect on our revenues and margins.

•

U.S. Government Approval Requirements. For certain aspects of our business operations, we are required to obtain U.S. government licenses and approvals to enter into agreements or engage in commercial transactions with various end users (including government bodies) in order to export satellites and related equipment, disclose technical data or provide defense services to foreign persons. The delayed receipt of or the failure to obtain the necessary U.S. government licenses, approvals and agreements may prohibit entry into or interrupt the completion of contracts which could lead to a customer’s termination of a contract for default, monetary penalties and/or the loss of incentive payments.

•

Competitive Impact of U.S. Regulations on Satellite Sales. Some of our customers and potential customers, along with insurance underwriters and brokers, have asserted that U.S. export control laws and regulations governing disclosures to foreign persons excessively restrict their access to information about the satellite during construction and on-orbit. Office of Foreign Assets Control (“OFAC”) sanctions and requirements may also limit certain business opportunities or delay or restrict our ability to contract with potential foreign customers or operators. To the extent that our non-U.S. competitors are not subject to OFAC or similar export control or economic sanctions laws and regulations, they may enjoy a competitive advantage with foreign customers, and it could become increasingly difficult for the U.S. satellite manufacturing industry, including us, to recapture this lost market share. Customers concerned over the possibility that the U.S. government may deny the export license necessary for us to deliver their purchased satellite to them, or the restrictions or delays imposed by the U.S. government licensing requirements, even where an export license is granted, may elect to choose a satellite that is purportedly free of International Traffic in Arms Regulations (“ITAR”) offered by a non-U.S. supplier. We are further disadvantaged by the fact that a purportedly “ITAR-free” satellite may be launched less expensively in China on the Chinese Long March rocket, a launch vehicle that, because of ITAR restrictions, is not available to us.

•

Anti-Corruption Laws. As part of the regulatory and legal environments in which we operate, we are subject to global anti-corruption laws that prohibit improper payments directly or indirectly to government officials, authorities or persons defined in those anti-corruption laws in order to obtain or retain business or other

Table of Contents

improper advantages in the conduct of business. Our policies mandate compliance with anti-corruption laws. Failure by our employees, agents, subcontractors, suppliers and/or partners to comply with anti-corruption laws could impact us in various ways that include, but are not limited to, criminal, civil and administrative fines and/or legal sanctions and the inability to bid for or enter into contracts with certain entities, all of which could have a significant adverse effect on our reputation, operations and financial results.

Changes in law and policy relating to taxes, including those with retroactive effect, may materially and adversely affect our financial condition, results of operations and cash flows. These changes may alter existing tax law, such as increasing the corporate tax rate and enacting a minimum tax on worldwide book income. We continue to monitor tax law developments and assess the impact on the Company.

For example, on August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA 2022”) which, among other things, creates a 15% corporate alternative minimum tax on profits of corporations whose average annual adjusted financial statement income over a three-year period exceeds $1 billion and creates an excise tax of 1% on stock repurchases by publicly traded U.S. corporations. These provisions of the IRA 2022 are generally effective for tax years beginning after December 31, 2022. We continue to evaluate the future impacts of these provisions, if we become subject to additional taxes it could adversely affect our financial conditions, results of operations and cash flows.

The U.S. enacted the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”) on December 22, 2017, which significantly changed the U.S. federal income taxation of U.S. corporations. The 2017 Tax Act remains unclear in many respects and has been, and may continue to be, the subject of amendments and technical corrections, as well as interpretations and implementing regulations by the Treasury and IRS, which have mitigated or increased certain adverse impacts of the 2017 Tax Act and may continue to do so in the future.

Our ability to use our U.S. federal and state net operating loss carryforwards and certain other tax attributes may be limited.

As of December 31, 2022, we had approximately $310 million, $875 million and $4 million of federal, state and foreign net operating loss (“NOL”) carryforwards and $85 million of U.S. tax credit carryforwards primarily related to research and development expenditures, net of unrecognized tax benefits.

Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (“Code”), if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change U.S. federal NOL carryforwards and other tax attributes (such as research tax credits) to offset its post-change income and taxes may be limited. In general, an “ownership change” occurs if there is a greater than 50 percentage point change (by value) in a corporation’s equity ownership by certain stockholders over a rolling three-year period. Similar provisions of state tax law may also apply to limit our use of accumulated state tax attributes. While we do not believe that we have experienced ownership changes in the past that would materially limit our ability to utilize our NOL carryforwards, the Section 382 rules are complex and there is no assurance our view is correct. In the event that we experience ownership changes in the future, our ability to use pre-change NOL carryforwards and other tax attributes to offset post-change taxable income will be subject to limitations. As a result, we may be unable to use a material portion of our NOL carryforwards and other tax attributes, which could adversely affect our future cash flows.

We are subject to various federal, state, provincial and local environmental laws and regulations relating to the operation of our businesses, including those governing pollution, the handling, storage, disposal and transportation of hazardous substances and the ownership and operation of real property. In addition, we could be affected by future regulations imposed in response to concerns over climate change, other aspects of the environment or natural resources. We have been designated, along with other companies, as a named discharger potentially responsible for the cleanup of

Table of Contents

groundwater contamination at certain sites in California where we operate and there can be no assurance that the previous owners of those properties strictly complied with such environmental laws and regulations. Such laws and regulations may result in significant liabilities and costs to us due to the actions or inactions of the previous owners. In addition, new laws and regulations, more stringent enforcement of existing laws and regulations or the discovery of previously unknown contamination could result in additional costs.

We have incurred and will continue to incur increased costs and demands in order to comply with laws and regulations applicable to public companies.

In January 2019, we became a “domestic issuer” for SEC reporting purposes and a reporting issuer in each of the jurisdictions in Canada in which Maxar Canada was a reporting issuer. The obligations of being a public company in the U.S. and Canada require significant expenditures and will place significant demands on our management and other personnel, including costs resulting from public company reporting obligations under the U.S. Securities Exchange Act of 1934, as amended, applicable Canadian securities laws, and the rules and regulations regarding corporate governance practices, including those under the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the listing requirements of the NYSE and the TSX. These rules require that we maintain effective disclosure and financial controls and procedures, internal control over financial reporting and changes in corporate governance practices, among many other complex rules that are often difficult to monitor and maintain compliance with. Additionally, new standards, as well as investor expectations are developing around ESG and other emerging socioeconomic trends and matters, which require continual monitoring and compliance. Our management and other personnel will continue to devote a substantial amount of time to ensure compliance with all of these requirements and to keep pace with new regulations, otherwise we may fall out of compliance and risk becoming subject to reputational damage, litigation or being delisted, among other potential problems.

Our international business exposes us to risks relating to regulation, currency fluctuations and political or economic instability in foreign markets, which could adversely affect our revenue, earnings, cash flows and our financial condition.

A significant portion of our revenue is derived from non-U.S. sales, and we intend to continue to pursue international contracts. International operations are subject to certain risks, such as: changes in domestic and foreign governmental regulations and licensing requirements; deterioration of relations between the U.S. and/or a particular foreign country; increases in tariffs and taxes and other trade barriers; foreign currency fluctuations; changes in political and economic stability both in the U.S. and internationally; effects of austerity programs or similar significant budget reduction programs; potential preferences by prospective customers to purchase from local (non-U.S.) sources; difficulties in obtaining or enforcing judgments in foreign jurisdictions; and unforeseen developments and conditions, including war, epidemics and pandemics and international tensions and conflicts.

In addition, our international contracts may include industrial cooperation agreements requiring specific in-country purchases, investments, manufacturing agreements or other financial obligations, known as offset obligations, and provide for penalties if we fail to meet such requirements. The impact of these factors is difficult to predict, but one or more of them could adversely affect our financial position, results of operations, or cash flows.

Exposure to United Kingdom political developments, including the effect of its withdrawal from the European Union, could be costly and difficult to comply with and could harm our business.

Our United Kingdom operations service customers in the United Kingdom as well as in other countries in the European Union, and these operations continue to face risks and potential disruptions related to the withdrawal of the United Kingdom from the European Union, commonly referred to as “Brexit.” Although the United Kingdom and the European Union have entered into a trade and cooperation agreement, the long-term nature of the United Kingdom’s relationship with the European Union remains unclear. For example, Brexit could lead to potentially divergent laws and regulations, such as with respect to data protection and data transfer laws, that could lead to uncertainty surrounding how data transfers will be regulated and could also be costly and difficult to comply with. While we continue to monitor these

Table of Contents

developments, the full effect of Brexit on our operations is uncertain and our business could be harmed by trade disputes or political differences between the United Kingdom and the European Union in the future.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2.PROPERTIES

Our corporate headquarters are located at a leased facility in Westminster, Colorado. As of December 31, 2022, we had approximately two million square feet of total leased floor space at multiple locations in the United States, Europe, the Middle East and Asia, used for manufacturing, warehousing, research and testing, administrative and various other uses.

As of December 31, 2022, we had major operations in the following locations:

Space Infrastructure

Our Space Infrastructure segment primarily operates out of multiple locations in California. We lease approximately one million square feet of manufacturing and office space.

Earth Intelligence

Our Earth Intelligence segment primarily operates out of our U.S. locations in Colorado, Virginia, Michigan, Florida, and Missouri and the U.S. territory of Puerto Rico, our Sweden location and small sales offices located internationally. We lease approximately one million square feet of office and operations space.

We maintain our properties in good operating condition and believe that the productive capacity of our properties is adequate to meet our current requirements and those for the foreseeable future. See Note 9, “Leases”, to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for additional information regarding our lease commitments.

ITEM 3.LEGAL PROCEEDINGS

Currently, we are involved in a number of legal proceedings. For a discussion of material legal proceedings, see Note 22, “Commitments and Contingencies” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K, which is hereby incorporated by reference.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Maxar’s common stock trades on the NYSE and TSX under the ticker “MAXR”. As of February 16, 2023, there were approximately 105 stockholders of record of our common stock. This stockholder figure does not include a substantially greater number of "street name" holders or beneficial holders of our common stock whose shares are held of record by banks, brokers and other financial institutions.

Table of Contents

Dividends

Dividends are declared at the discretion of our Board of Directors and will depend on our financial position, results of operations, cash flows, capital requirements, credit facility and other indebtedness covenants (which include limits on distributions by us), applicable law and other factors as our Board of Directors deems relevant. Holders of our common stock receive dividends when and as declared by our Board of Directors. We may modify, suspend, or cancel our cash dividends in any manner and at any time. We declared and paid dividends of $0.04 per share of common stock during 2022 and 2021.

ITEM 6.[RESERVED]

ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

We are a provider of comprehensive space solutions and secure, precise, geospatial intelligence. We help government and commercial customers monitor, understand and navigate our changing planet; deliver global broadband communications; and explore and advance the use of space. Our 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. Our businesses are organized and managed in two reportable segments: Earth Intelligence and Space Infrastructure, as described below under “Segment Results”.

RECENT DEVELOPMENTS

Agreement and Plan of Merger with Advent International Corporation

Table of Contents

For additional information regarding the Merger, please refer to our Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on December 16, 2022.

WorldView Legion satellites update

Due to our pending Merger Agreement, we are no longer providing forward-looking updates on the timing of the launches of our WorldView Legion satellites. We are continuing integration testing for the WorldView Legion satellites, and launch of the satellites will occur following completion of that process. As previously disclosed in our public filings, and as more completely described in the Merger Agreement, no effect relating to or arising from the Company’s WorldView Legion satellite program can constitute or contribute to a material adverse effect, and the Closing is not conditioned on the absence of any such effect or the success of the WorldView Legion program.

JUPITER 3 satellite update

On November 9, 2022, we notified EchoStar Corporation (“EchoStar”), that the expected shipment of the JUPITER 3 satellite (“JUPITER 3”) had been delayed one month. Prior to the November 9, 2022 notification of the schedule change, the prior schedule communicated to EchoStar was an expected shipment date of March 26, 2023. JUPITER 3 was originally scheduled for shipment to EchoStar on January 19, 2021, under the terms of a $445 million contract between Maxar Space LLC and EchoStar, dated April 19, 2017 and amended October 1, 2018 (the “Contract”). JUPITER 3 is an Ultra High-Density Satellite expected to be the world’s largest commercial communications satellite when it launches, which contains significant technical innovations.

As a result of the additional delay of approximately one month, EchoStar stated its intent to immediately terminate the Contract for default and claim a return of all monies paid to Maxar. To avoid this outcome, the two companies entered into an amendment to the Contract on November 16, 2022. Under the terms of the amendment, we have agreed to a $65 million reduction in the contract value which consists of (i) the forgiveness of all remaining milestone amounts owed by EchoStar to us related to JUPITER 3 of $14 million, (ii) the forgiveness of all orbital incentive payments of $43 million, which were payable by EchoStar with 6% interest over 15 years following launch and in-orbit service of JUPITER 3 and (iii) further reductions of $8 million. The orbital incentive payments were conditioned on the in-orbit performance of the satellite.

In addition, we have agreed to enter into a commercial agreement whereby we will purchase certain goods and/or services from EchoStar in 2023 with the scope of such goods and/or services to be determined, but with a minimum value of $30 million. As we have not yet identified the scope of goods and/or services to be purchased under this agreement, we have reduced the contract value by $30 million. If at a later date the goods and/or services are identified the reduction to the contract value will be adjusted.

We have also agreed to the payment of contingent additional liquidated damages if the delivery of JUPITER 3 extends beyond June 2023. The contingent additional liquidated damages are $8 million per month beginning in July 2023 and grow to $10 million per month beginning in October 2023 and thereafter. In return, EchoStar has agreed to eliminate its right to terminate the Contract for default for late delivery until January 1, 2024. We expect to deliver JUPITER 3 without incurring significant liquidated damages under the November 16, 2022, Contract amendment.

We recognized a cumulative adjustment to revenue of $92 million and an increase in products 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 we have 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 $1 million adjustment to product costs related to these goods and/or services.

Table of Contents

Acquisition of Wovenware

On November 1, 2022, we completed the acquisition of Wovenware Inc., (“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 of November 1, 2022, Wovenware’s results are consolidated and reported within the results of the Earth Intelligence segment.

Electro-Optical Commercial Layer (“EOCL”) contract

On May 25, 2022, the National Reconnaissance Office (“NRO”) awarded us a 10-year contract worth up to $3.24 billion, inclusive of a firm 5-year base contract commitment worth $1.5 billion and $1.74 billion in exercisable options, as part of the Electro-Optical Commercial Layer Program (“EOCL Contract”). The EOCL Contract transitioned the imagery acquisition requirements previously addressed by the EnhancedView Follow-On contract (“EnhancedView Contract”) and replaces the scope of the EnhancedView Contract with respect to such requirements.

Under the EOCL Contract, we continue to provide high-resolution commercial satellite imagery services to the NRO for use across the U.S. defense and intelligence community. The EOCL Contract has an initial contract value of $1.5 billion with a 5-year base period of performance with the imagery acquisition portion beginning on June 15, 2022. This reflects a contractual commitment of just over $300 million for each of the first five years of the EOCL Contract to continue at a level comparable to services previously provided by us under the EnhancedView Contract. The $300 million base period commitment provides NRO access to the current constellation, then access, at an equivalent level, to the WorldView Legion satellites and the related imagery archive after satellites in our current constellation are no longer operational. The EOCL Contract, however, is flexible and allows for growth to consider additional capacity from the WorldView Legion satellites when they are operational. Accordingly, we retain growth capacity from our WorldView Legion satellites for the NRO and other customers.

While the imagery acquisition portion of the EnhancedView Contract has moved to EOCL, we will continue to perform other awarded services on the EnhancedView Contract through 2025, concurrent with the new EOCL Contract. The opportunity to increase services beyond the awarded amount is also built into the EOCL Contract.

The EOCL Contract differs significantly from the EnhancedView Contract in that it is a 5-year commitment with option years, instead of a one-year commitment with option years, and in addition, the EOCL Contract has built-in flexibility to increase services.

For year five, the NRO has awarded an option for increased capabilities at a value of $40 million, bringing the potential value for year five to $340 million. For years six through ten, the NRO has awarded additional options with a potential annual value of up to $340 million.

Sale of senior secured notes and repurchase of debt

On June 14, 2022, we issued $500 million aggregate principal amount of 7.75% Senior Secured Notes due 2027 (“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 (the “Securities Act”) and outside the U.S. pursuant to Regulation S under the Securities Act. The 7.75% 2027 Notes have an interest rate of 7.75% per annum and were issued at a price equal to 100% of their face value. The 7.75% 2027 Notes will mature on June 15, 2027, unless earlier redeemed or repurchased. The 7.75% 2027 Notes are secured on a first-priority basis by liens on our and the guarantor’s assets that also secure, equally and ratably, our indebtedness under the Syndicated Credit Facility and the 7.54% 2027 Notes (as such terms are defined below) pursuant to the terms of a first lien intercreditor agreement. The 7.75% 2027 Notes are also guaranteed on a senior secured basis by each of our subsidiaries that are guarantors under our Syndicated Credit Facility and our 7.54% 2027 Notes.

On June 14, 2022, we used proceeds from the 7.75% 2027 Notes, along with cash on hand, to redeem the remaining $500 million aggregate principal amount of our 9.75% Senior Secured Notes due 2023 (“9.75% 2023 Notes”). The

Table of Contents

9.75% 2023 Notes were redeemed at a price of 107.313% of the principal amount thereof, plus accrued but unpaid interest.

Concurrent amendment and restatement of Syndicated Credit Facility

On June 14, 2022, we amended the terms of our senior secured Syndicated Credit Facility (“Syndicated Credit Facility”) pursuant to an amended and restated credit agreement (“Amended and Restated Credit Agreement”). The Syndicated Credit Facility is composed of the Revolving Credit Facility and Term Loan B (as such terms are each defined below). 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 the senior secured first lien term B facility (“Term Loan B”) outstanding to $1.5 billion and (iv) permitted the issuance of the 7.75% 2027 Notes and the redemption of the 9.75% 2023 Notes. The Amended and Restated Credit Agreement also extended the maturity date of the senior secured first lien revolving credit facility (“Revolving Credit Facility”) to June 14, 2027; 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 Revolving Credit Facility will be the Springing Maturity Date, and extended the maturity date of Term Loan B to June 14, 2029; provided that if the 7.75% 2027 Notes are not repaid in full by the Springing Maturity Date, the maturity date for the Term Loan B will be the maturity date of the 7.75% 2027 Notes.

SEGMENT RESULTS

Our Chief Operating Decision Maker measures performance of our reportable segments based on revenue and Adjusted EBITDA. Our operating and reportable segments are: Earth Intelligence and Space Infrastructure.

Earth Intelligence

In the Earth Intelligence segment, we are a global leader in high-resolution, space-based Earth observation imagery products and analytics. We launched the world’s first high-resolution commercial imaging satellite in 1999 and currently operate a four satellite Earth observation constellation, providing us with over two decades and approximately 150 petabytes of imagery over our history (referred to as our “Image Library”) of the highest resolution, commercially available imagery. Our imagery solutions provide customers with timely, accurate and mission critical information about our changing planet and support a wide variety of government and enterprise applications, including mission planning, mapping and analysis, environmental monitoring, disaster management, crop management, oil and gas exploration and infrastructure management. We continue to innovate as demands for new satellite technology and advanced analytic tools increase. In addition to our Earth observation capabilities, we offer RF and SAR data, which provides more comprehensive and accurate geospatial insights for our customers. Through our updated NOAA remote sensing license, we are also able to collect NEI for our current constellation and our next generation WorldView Legion satellites. Through this new license authority, we can collect and distribute images of space objects across the LEO – the area ranging from 200 kilometers up to 1,000 kilometers in altitude – to both government and commercial customers. In the commercial satellite Earth observation industry, we are a leader across U.S. government agencies, international government agencies and enterprise customer verticals. The U.S. government is the largest customer of our Earth Intelligence segment through the EOCL Contract, G-EGD and OWT programs and various classified and unclassified contract vehicles.

Table of Contents

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.

Space Infrastructure

RESULTS OF OPERATIONS

The following table provides selected annual financial information for the years ended December 31, 2022, 2021 and 2020.


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Revenues:
Product	$	527	$	678	$	633	$	(151)	(22)	%	$	45	7	%
Service		1,078		1,092		1,090		(14)	(1)			2	0
Total revenues	$	1,605	$	1,770	$	1,723	$	(165)	(9)	%	$	47	3	%
Costs and expenses:
Product costs, excluding depreciation and amortization		531		601		615		(70)	(12)			(14)	(2)
Service costs, excluding depreciation and amortization		393		383		378		10	3			5	1
Selling, general and administrative		431		369		332		62	17			37	11
Depreciation and amortization		239		290		348		(51)	(18)			(58)	(17)
(Gain) loss on orbital receivables allowance		—		(49)		14		49	(100)			(63)	*
Impairment loss		—		—		33		—	*			(33)	(100)
Loss on sale of assets		—		—		1		—	*			(1)	(100)
Operating income	$	11	$	176	$	2	$	(165)	(94)	%	$	174	*	%
Interest expense, net		158		151		175		7	5			(24)	(14)
Other expense (income), net		1		(8)		(104)		9	(113)			96	(92)
(Loss) income before taxes	$	(148)	$	33	$	(69)	$	(181)	*	%	$	102	(148)	%
Income tax expense (benefit)		2		(13)		(22)		15	(115)			9	(41)
Equity in income from joint ventures, net of tax		—		—		(1)		—	*			1	(100)
(Loss) income from continuing operations	$	(150)	$	46	$	(46)	$	(196)	*	%	$	92	(200)	%
Discontinued operations:
Income from operations of discontinued operations, net of tax		—		—		32		—	*			(32)	(100)
Gain on disposal of discontinued operations, net of tax		—		—		317		—	*			(317)	(100)
Income from discontinued operations, net of tax		—		—		349		—	*			(349)	(100)
Net (loss) income	$	(150)	$	46	$	303	$	(196)	*	%	$	(257)	(85)	%

*Not meaningful.

Table of Contents

Product and service revenues


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Product revenues	$	527	$	678	$	633	$	(151)	(22)	%	$	45	7	%
Service revenues		1,078		1,092		1,090		(14)	(1)			2	0
Total revenues	$	1,605	$	1,770	$	1,723	$	(165)	(9)	%	$	47	3	%

Total revenues decreased to $1,605 million from $1,770 million, or by $165 million, for the year ended December 31, 2022 compared to 2021. The decrease was primarily due to a decrease in product revenues in our Space Infrastructure segment driven by a $92 million cumulative adjustment to revenue for the year ended December 31, 2022 related to the JUPITER 3 amendment and commercial agreement with EchoStar that were entered into by the two companies in order to avoid EchoStar terminating the Contract for default.

Total revenues increased to $1,770 million from $1,723 million, or by $47 million, for the year ended December 31, 2021 compared to 2020. The increase was primarily driven by an increase in revenues in our Space Infrastructure and Earth Intelligence segments.

Further discussion of the drivers behind the change in revenues is included within the “Results by Segment” section below.

See Note 15, “Revenues” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for product and service revenues by segment.

Product and service costs


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Product costs, excluding depreciation and amortization	$	531	$	601	$	615	$	(70)	(12)	%	$	(14)	(2)	%
Service costs, excluding depreciation and amortization		393		383		378		10	3			5	1
Total costs	$	924	$	984	$	993	$	(60)	(6)	%	$	(9)	(1)	%

Total cost of product and services decreased to $924 million from $984 million, or by $60 million, for the year ended December 31, 2022 compared to 2021. The decrease in costs was primarily due to a decrease in product costs within our Space Infrastructure segment due to charges taken as a result of the non-performance of the SXM-7 satellite in the first quarter of 2021, which did not reoccur for the year ended December 31, 2022. The decrease in product costs was also driven by the impact of reduced volumes as programs near the end of completion for the year ended December 31, 2022, compared to the same period of 2021.

Total cost of product and services decreased to $984 million from $993 million, or by $9 million, for the year ended December 31, 2021 compared to 2020. The decrease in costs was driven by a decrease in product costs within our Space Infrastructure segment partially offset by an increase in service costs within our Earth Intelligence segment.

Table of Contents

Selling, general and administrative


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Selling, general and administrative	$	431	$	369	$	332	$	62	17	%	$	37	11	%

Selling, general and administrative costs increased to $431 million from $369 million, or by $62 million, for the year ended December 31, 2022, compared to the same period of 2021. The increase was primarily due to a $13 million increase in research and developments costs, an $11 million increase in expenses related to our enterprise resource planning (“ERP”) project, an $8 million increase in professional services expense, a $7 million increase in travel and facilities costs due to more employees working from our onsite location offices, a $6 million increase in information technology (“IT”) costs, a $6 million increase in transaction and integration related expenses and a $5 million increase in restructuring expenses. There was also a $10 million increase in labor related expenses and marketing and sales costs driven by increases in or reassignment of personnel, annual merit increases, increases in headcount and increases in fringe benefits for the year ended December 31, 2022, compared to the same period of 2021.

Selling, general and administrative costs increased to $369 million from $332 million, or by $37 million, for the year ended December 31, 2021 compared to 2020. The increase was primarily due to an increase in labor related expenses of $28 million, an increase in research and development expenses within the Space Infrastructure segment of $11 million and an increase in other expenses of $4 million. The increase in labor related expenses was primarily driven by an increase in headcount, employee compensation and fringe benefits. These increases were partially offset by a $6 million decrease in transaction and integration related expenses.

Depreciation and amortization


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Property, plant and equipment	$	76	$	86	$	93	$	(10)	(12)	%	$	(7)	(8)	%
Intangible assets		163		204		255		(41)	(20)			(51)	(20)
Depreciation and amortization expense	$	239	$	290	$	348	$	(51)	(18)	%	$	(58)	(17)	%

Depreciation and amortization expense decreased to $239 million from $290 million, or by $51 million, for the year ended December 31, 2022, compared to the same period of 2021. The decrease was primarily driven by a decrease in amortization expense related to intangible assets that were fully amortized in 2021 and 2022. There was also a decrease in depreciation expense of $9 million related to the extension of the useful lives of three satellites in the fourth quarter of 2021 and a decrease in depreciation expense of $2 million related to the extension of the useful lives of three satellites in the fourth quarter 2022.

Depreciation and amortization expense decreased to $290 million from $348 million, or by $58 million, for the year ended December 31, 2021 compared to 2020. The decrease was primarily driven by a decrease in amortization expense for backlog acquired as part of the acquisition of DigitalGlobe, Inc. on October 5, 2017. We recognized ten months of amortization expense for the year ended December 31, 2020, compared to none for the year ended December 31, 2021, as all of the U.S. government acquired backlog was fully amortized as of October 2020. The decrease was also driven by a decrease in depreciation expense related to the extension of the useful lives of two satellites in the fourth quarter of 2020 and three satellites in the fourth quarter of 2021. These decreases were partially offset by the inclusion of a full year of depreciation and amortization expense from property, plant and equipment and intangible assets acquired as part of the acquisition of Vricon on July 1, 2020, compared to two quarters of expense in 2020.

Table of Contents

(Gain) loss on orbital receivables allowance


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
(Gain) loss on orbital receivables allowance	$	—	$	(49)	$	14	$	49	(100)	%	$	(63)	*	%

*Not meaningful.

During the year ended December 31, 2021, as a result of an increased certainty of collections of the outstanding orbital receivables from our largest customer following their emergence from bankruptcy, we recognized a $49 million reversal of our orbital receivables allowance. During the year ended December 31, 2020, we recognized a $14 million loss on our orbital receivables allowance within the Space Infrastructure segment. The loss was primarily due to a decrease in the credit rating associated with our largest orbital receivables customer. There were no changes in the allowance for expected credit losses related to our orbital receivables allowance for the year ended December 31, 2022.

Impairment loss


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Impairment loss	$	—	$	—	$	33	$	—	*	%	$	(33)	(100)	%

*Not meaningful.

During the year ended December 31, 2020, we recognized an impairment loss of $33 million related to the write-off of a $33 million prepaid asset with a commercial provider of ground station services under a contract which was above current market value. In December 2020, we 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, we concluded the remaining prepaid asset from the prior contract with the provider had no continuing value. There were no impairment losses recorded for the year ended December 31, 2022 or 2021.

Interest expense, net


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Interest expense:
Interest on long-term debt	$	156	$	144	$	191	$	12	8	%	$	(47)	(25)	%
Loss on debt extinguishment		53		41		7		12	29			34	*
Interest on orbital securitization liability		3		4		5		(1)	(25)			(1)	(20)
Imputed interest and other		1		2		2		(1)	(50)			—	—
Interest expense on advance payments from customers		—		—		3		—	*			(3)	(100)
Capitalized interest		(55)		(40)		(33)		(15)	38			(7)	21
Interest expense, net	$	158	$	151	$	175	$	7	5	%	$	(24)	(14)	%

*Not meaningful.

Interest expense, net increased to $158 million from $151 million, or by $7 million, for the year ended December 31, 2022 compared to the same period in 2021. The increase was primarily due to a $12 million increase in loss on debt extinguishment during the year ended December 31, 2022 compared to the same period of 2021 driven by a $53 million loss on debt extinguishment incurred in connection with the redemption of our 9.75% 2023 Notes (as defined below) and the amendment of our Term Loan B (as defined below) and Revolving Credit Facility in the second quarter of 2022, compared to a $41 million loss on debt extinguishment recognized from the partial redemption of our 9.75% 2023 Notes in the first quarter of 2021. The increase was also due to an increase in interest on long-term debt of $12 million driven by an increase in interest rates on our Term Loan B (as defined below) which was amended in the second quarter of

Table of Contents

2022. These increases were partially offset by a $15 million increase in capitalized interest related to the building of our WorldView Legion satellites.

Interest expense, net decreased to $151 million from $175 million, or by $24 million, for the year ended December 31, 2021 compared to 2020. The decrease was primarily due to a $47 million decrease in interest on long-term debt primarily driven by lower principal balances on the 2023 Notes and Term Loan B (as defined below) due to a repurchase of a portion of the 2023 Notes in the second quarter of 2020, a partial redemption of the 2023 Notes in the first quarter of 2021 and a repayment made on Term Loan B in the second quarter of 2020. These decreases in interest on long-term debt were partially offset by an increase in interest expense following our issuance of the 2027 Notes (as defined below). There was also an increase in capitalized interest of $7 million related to the building of our WorldView Legion satellites. These decreases were partially offset by a $41 million loss on debt extinguishment from the partial redemption of our 2023 Notes using proceeds from the Offering for the year ended December 31, 2021, compared to a $7 million loss on debt extinguishment for 2020.

Other expense (income), net


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Other expense (income), net	$	1	$	(8)	$	(104)	$	9	(113)	%	$	96	(92)	%

Other expense (income), net changed to an expense of $1 million from income of $8 million, or by $9 million, for the year ended December 31, 2022, compared to the same period in 2021. The change was primarily due to a $12 million expense related to the satisfaction of an offset obligation incurred as a result of conducting business in a foreign country, which was recorded for the year ended December 31, 2022, compared to no expense in 2021. The increase in expense was partially offset by a decrease in amortization expense of the net loss on our pension plans for the year ended December 31, 2022, compared to the same period of 2021.

Other income, net decreased to $8 million from $104 million, or by $96 million, for the year ended December 31, 2021 compared to 2020. The decrease was primarily driven by a gain of $85 million recorded as a result of the remeasurement of our previously held equity interest in Vricon due to the acquisition of Vricon for the year ended December 31, 2020 which did not recur in 2021. In addition, the decrease was driven by a $3 million foreign exchange loss for the year ended December 31, 2021 compared to a $5 million foreign exchange gain for the year ended December 31, 2020.

See Note 22, “Commitments and Contingencies” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for further details on the offset obligation.

Income tax expense (benefit)


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Income tax expense (benefit)	$	2	$	(13)	$	(22)	$	15	(115)	%	$	9	(41)	%

Income tax expense (benefit) changed to an expense of $2 million from a benefit of $13 million, or by $15 million, for the year ended December 31, 2022, compared to the same period in 2021, primarily due to the absence of a Base Erosion and Anti-Abuse Tax (“BEAT”) benefit from the prior year.

Table of Contents

Income tax benefit decreased to $13 million from $22 million, or by $9 million, for the year ended December 31, 2021, compared to 2020. This change was primarily due to a $13 million reduction in the December 31, 2020 estimated federal BEAT driven by a change in tax strategy enabled by a reduction in forecasted interest expense.

Income from discontinued operations, net of tax


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Discontinued operations:
Income from operations of discontinued operations, net of tax	$	—	$	—	$	32	$	—	*	%	$	(32)	(100)	%
Gain on disposal of discontinued operations, net of tax		—		—		317		—	*			(317)	(100)
Income from discontinued operations, net of tax	$	—	$	—	$	349	$	—	*	%	$	(349)	(100)	%

*Not meaningful.

There was no income from discontinued operations, net of tax for the years ended December 31, 2022 and 2021, as the sale of our former Canadian subsidiary (“MDA Business”) to Neptune Acquisition, Inc. was completed in the second quarter of 2020.

Income from discontinued operations, net of tax was $349 million for the year ended December 31, 2020 driven by the after-tax gain on disposal of the MDA Business of $317 million and a $39 million recovery of a previously recorded liability in relation to the Company’s dispute with a Ukrainian customer.

RESULTS BY SEGMENT

We analyze financial performance by segments, which group related activities within our business. We report our financial performance based on two reportable segments: Earth Intelligence and Space Infrastructure. Intrasegment transactions have been eliminated from the segmented financial information discussed below.


	Year Ended December 31,						$ Change		% Change		$ Change		% Change

	2022		2021		2020		2021 to 2022				2020 to 2021
($ millions)
Revenues:
Earth Intelligence	$	1,078	$	1,093	$	1,081	$	(15)	(1)	%	$	12	1	%
Space Infrastructure		626		740		721		(114)	(15)			19	3
Intersegment eliminations		(99)		(63)		(79)		(36)	57			16	(20)
Total revenues	$	1,605	$	1,770	$	1,723	$	(165)	(9)	%	$	47	3	%

Adjusted EBITDA:
Earth Intelligence	$	445	$	492	$	513	$	(47)	(10)	%	$	(21)	(4)	%
Space Infrastructure		(32)		46		(3)		(78)	(170)			49	*
Intersegment eliminations		(36)		(25)		(27)		(11)	44			2	(7)
Corporate and other expenses		(91)		(89)		(61)		(2)	2			(28)	46
Total Adjusted EBITDA	$	286	$	424	$	422	$	(138)	(33)	%	$	2	0	%

*Not meaningful.

Adjusted EBITDA disclosures throughout this section, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are non-GAAP measures. See “Non-GAAP Financial Measures” below for further discussion of Adjusted EBITDA disclosures.

Table of Contents

Earth Intelligence

The following table provides selected financial information for the Earth Intelligence segment.


	Year Ended December 31,									$ Change		% Change		$ Change		% Change

	2022			2021			2020			2021 to 2022				2020 to 2021
($ millions)
Total revenues	$	1,078		$	1,093		$	1,081		$	(15)	(1)	%	$	12	1	%

Adjusted EBITDA	$	445		$	492		$	513		$	(47)	(10)	%	$	(21)	(4)	%
Adjusted EBITDA margin (as a % of total revenues)		41.3	%		45.0	%		47.5	%

Revenues from the Earth Intelligence segment decreased to $1,078 million from $1,093 million, or by $15 million, for the year ended December 31, 2022, compared to the same period in 2021. The decrease was primarily due to a $19 million decrease in revenues from commercial programs driven by a one-time license uplift on a commercial contract in 2021. The decrease was also driven by a $17 million decrease in revenues from international defense and intelligence customers primarily due to less orders on archive and 3D imagery. Additionally, certain transactions that were expected to be completed in the fourth quarter of 2022 did not occur in the period. These decreases were partially offset by a $21 million increase in revenues from the U.S. government. The increase in revenues from the U.S. government was primarily due to a $56 million increase in imagery solutions revenues, including revenues from crisis support services, partially offset by a $35 million decrease in geospatial service revenues from U.S. government customers.

Revenues from the Earth Intelligence segment increased to $1,093 million from $1,081 million, or by $12 million, for the year ended December 31, 2021, compared to 2020. The increase was primarily driven by a $48 million increase in revenue from international defense and intelligence customers, a $36 million increase in new and expanded commercial programs and a $7 million increase in revenue from new contracts with the U.S. government. These increases were partially offset by an $80 million decrease in the recognition of deferred revenue related to the EnhancedView Contract. We recognized $80 million of deferred revenue from the EnhancedView Contract for the year ended December 31, 2020, compared to none for the year ended December 31, 2021, as it was fully recognized as of August 31, 2020.

Adjusted EBITDA decreased to $445 million from $492 million, or by $47 million, for the year ended December 31, 2022, compared to the same period of 2021. The decrease was primarily related to the above-mentioned decrease in revenues and a $23 million increase in selling, general and administrative costs, compared to the same period of 2021. The increase in selling, general and administrative costs was primarily driven by increased spending, including professional services expense of $7 million, an increase in travel costs and facilities costs of $6 million due to more employees working from our onsite location offices, IT costs of $5 million and our ERP project of $4 million. The decrease in Adjusted EBITDA was also due to an increase in service costs driven by increases in headcount, annual merit increases and increases in fringe benefits for the year ended December 31, 2022, compared to the same period of 2021.

Adjusted EBITDA decreased to $492 million from $513 million, or by $21 million, for the year ended December 31, 2021, compared to 2020. The decrease was primarily driven by a decrease in the recognition of deferred revenue related to the EnhancedView Contract as mentioned above. The decrease was also driven by an increase in selling, general and administrative costs due to an increase in labor related expenses driven by an increase in headcount, employee compensation and fringe benefits for the year ended December 31, 2021, compared to 2020. These decreases were partially offset by the expansion of contracts with existing commercial and international defense and intelligence customers contributing to positive program margin growth.

Table of Contents

Space Infrastructure

The following table provides selected financial information for the Space Infrastructure segment.


	Year Ended December 31,										$ Change	% Change			$ Change	% Change

	2022			2021			2020			2021 to 2022				2020 to 2021
($ millions)
Total revenues	$	626		$	740		$	721		$	(114)	(15)	%	$	19	3	%

Adjusted EBITDA	$	(32)		$	46		$	(3)		$	(78)	(170)		$	49	*	%
Adjusted EBITDA margin (as a % of total revenues)		(5.1)	%		6.2	%		(0.4)	%

*Not meaningful.

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 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 total costs at completion (“EAC”) as our risks are retired and as our EACs are increased or decreased based on contract performance. Adjusted EBITDA margins are also impacted by estimated contractual consideration.

Revenues from the Space Infrastructure segment decreased to $626 million from $740 million, or by $114 million, for the year ended December 31, 2022, compared to the same period of 2021. Revenues decreased primarily due to a $92 million cumulative adjustment to revenue for the year ended December 31, 2022 related to the JUPITER 3 amendment and commercial agreement with EchoStar. This resulted primarily from adjusting 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 and an adjustment related to the commercial agreement as we have not yet identified the scope of goods and/or services to be purchased. There was also a decrease in revenues from commercial programs of $50 million driven by the impact of reduced volumes as programs near the end of completion, including C-Band contracts, for the year-ended December 31, 2022, compared to the same period of 2021. The decrease in revenues was also driven by a $5 million decrease in revenues from U.S. government contracts during the year ended December 31, 2022, compared to the same period of 2021. These decreases were partially offset by a $33 million aggregate impact due to the non-performance of the SXM-7 satellite that was recorded during 2021, which did not reoccur for the year ended December 31, 2022.

Revenues from the Space Infrastructure segment increased to $740 million from $721 million, or by $19 million, for the year ended December 31, 2021, compared to 2020. Revenues increased primarily as a result of an increase in revenues from commercial programs of $87 million due to higher volumes and lower EAC growth primarily due to no COVID-19 program impacts for the year ended December 31, 2021. Revenues were negatively impacted by a $19 million decrease year over year related to our contract with Sirius XM Holdings Inc. (“Sirius XM”). The year ended December 31, 2021, included a $30 million cumulative adjustment to revenue primarily related to the loss of final milestone and expected orbital payments from Sirius XM due to the non-performance of the SXM-7 satellite and other adjustments that were recorded in 2021. After exhausting efforts to fully recover the SXM-7 satellite and further discussions with Sirius XM, in April 2021, we made the determination to record the cumulative adjustment to revenue. In addition, there were $3 million of costs incurred in the first quarter of 2021 related to attempts to repair and fully recover the SXM-7 satellite. The aggregate impact for the year ended December 31, 2021, was $33 million. The $33 million decrease was partially offset by the non-reoccurrence of a $14 million adjustment to revenue due to the identification of a design anomaly on the commercial satellite program, which was recorded for the year ended December 31, 2020. In addition, the total increase in revenues from the Space Infrastructure segment was partially offset by a $49 million decrease in revenues from U.S. government contracts.

Adjusted EBITDA decreased to a loss of $32 million from $46 million, or by $78 million, for the year ended December 31, 2022, compared to 2021. The decrease was primarily driven by the $95 million reduction in revenue and increase in

Table of Contents

product costs related to the above-mentioned JUPITER 3 impacts. The decrease was also driven by an increase in selling, general and administrative expenses of $26 million including marketing expenses and labor related expenses of $11 million from increases in headcount and annual merit increases, research and development expense of $8 million, our ERP project of $5 million and a $2 million increase in other expense. There was also a decrease in product margins driven by the impact of the above-mentioned reduced volumes on commercial programs for the year ended December 31, 2022, compared to the same period of 2021. These decreases in Adjusted EBITDA were partially offset by the above-mentioned SXM-7 satellite impacts which did not reoccur in the same period in 2022.

Adjusted EBITDA increased to $46 million from a loss of $3 million, or by $49 million, for the year ended December 31, 2021, compared to 2020. The increase in the Space Infrastructure segment was primarily related to a $92 million increase driven by increased volumes on commercial programs which resulted in increased margins and fewer negative EAC impacts during the year as compared to the year ended December 31, 2020, which included negative EAC impacts due to COVID-19. The increase in commercial program margins has been driven by a change in program mix related to the completion of less profitable programs offset by new, more profitable programs. These increases were partially offset by the $19 million reduction in revenue related to the above-mentioned SXM-7 satellite impacts and a $19 million increase in indirect costs and selling, general and administrative costs which was primarily driven by an $11 million increase in research and development 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 for the year ended December 31, 2022 remained relatively unchanged year over year as they increased to $91 million from $89 million, or by $2 million, compared to 2021.

Corporate and other expenses for the year ended December 31, 2021 increased to $89 million from $61 million, or by $28 million, compared to 2020. The increase was primarily driven by a $14 million increase in selling, general and administrative costs primarily due to an increase in labor related expenses driven by an increase in employee compensation and fringe benefits. There was also an increase in stock-based compensation expense of $5 million primarily due to a higher fair market value of equity awards granted. The increase was also driven by a $3 million foreign exchange loss for the year ended December 31, 2021, compared to a $5 million foreign exchange gain for the year ended December 31, 2020.

Intersegment eliminations

Intersegment eliminations are related to projects between our segments, including the construction of our WorldView Legion satellites. Intersegment eliminations increased to $36 million from $25 million for the year ended December 31, 2022 compared to 2021, primarily related to an increase in satellite construction activity.

Intersegment eliminations decreased to $25 million from $27 million for the year ended December 31, 2021 compared to 2020, primarily related to a decrease in satellite construction activity.

Table of Contents

BACKLOG

Our backlog by segment is as follows:


	December 31,		December 31,
	2022		2021
($ millions)
Earth Intelligence	$	2,048	$	1,028
Space Infrastructure		1,146		865
Total backlog		3,194		1,893
Unfunded contract options		2,089		650
Total	$	5,283	$	2,543

Order backlog, representing the estimated dollar value of firm contracts for which work has not yet been performed (also known as the remaining performance obligations on a contract), was $3,194 million as of December 31, 2022 compared to $1,893 million as of December 31, 2021. The increase in backlog was driven by an increase in the Earth Intelligence segment due to the EOCL contract and an increase in the Space Infrastructure segment primarily due to new contracts with commercial customers. Order backlog generally does not include unexercised contract options and potential orders under indefinite delivery/indefinite quantity contracts. Approximately 39% of the total $3,194 million backlog as of December 31, 2022 is expected to be converted into revenue in 2023.

Backlog in the Space Infrastructure segment is primarily comprised of multi-year awards, such as satellite builds. Fluctuations in backlog are driven primarily by the timing of large program wins. Backlog in the Earth Intelligence segment consists of both multi-year and annual contracts, which renew at various times throughout the year. As a result, the timing of when contracts are awarded and when option years are exercised may cause backlog to fluctuate significantly from period to period. Although backlog reflects business that is considered to be firm, terminations, amendments or cancellations may occur, which could result in a reduction in our total backlog.

Our unfunded contract options totaled $2,089 million and $650 million as of December 31, 2022 and 2021, respectively. Unfunded contract options represent estimated amounts of revenue to be earned in the future from negotiated contracts with unexercised contract options and indefinite delivery/indefinite quantity contracts. Unfunded contract options as of December 31, 2022 were primarily comprised of option years in the EOCL Contract (for the periods June 15, 2027 through June 14, 2032) and other U.S. government contracts. Unfunded contract options as of December 31, 2021 were primarily comprised of the option year in the EnhancedView Contract (September 1, 2022 through July 12, 2023) and other U.S. government contracts. On May 25, 2022, we were awarded the EOCL Contract by the NRO, which is a 10-year contract worth up to $3.24 billion, inclusive of a firm 5-year base contract commitment worth $1.5 billion and $1.74 billion in exercisable options. The EOCL Contract transitioned the imagery acquisition requirement previously addressed by the EnhancedView Contract and, with this award, replaces the scope of the EnhancedView, with respect to such requirements.

LIQUIDITY & CAPITAL RESOURCES

Our sources of liquidity include cash provided by operations, access to existing credit facilities, collection or securitization of orbital receivables and, when available and efficient, access to the capital markets. We generally maintain limited cash on hand and use available cash to pay down borrowings on our Syndicated Credit Facility (as defined below). Our primary short-term cash requirements are to fund working capital, including requirements on long-term construction contracts (including our geostationary satellite contracts), fixed overhead costs and to fund the construction and launch of our WorldView Legion satellites and other capital expenditures. Working capital requirements can vary significantly from period to period, particularly as a result of the timing of receipts and disbursements related to long-term construction contracts.

Our medium-term to long-term cash requirements are to service and repay debt and make investments, including in facilities, equipment, technologies and research and development for growth initiatives. These capital investments include investments to replace the capability or capacity of satellites which have or will go out of service in the future.

Table of Contents

Over the near-term to medium-term, it is also possible that our customers may fully or partially fund the construction of additional Legion satellites. Cash is also used to pay dividends and finance other long-term strategic business initiatives.

In June 2022, we issued $500 million aggregate principal amount of our 7.75% 2027 Notes and used the proceeds, along with cash on hand, to redeem in full the remaining $500 million aggregate principal amount of our 9.75% 2023 Notes. Also in June 2022, we amended our Syndicated Credit Facility to increase the total amount of Term Loan B outstanding to $1.5 billion and extended the maturity date of our Revolving Credit Facility to June 14, 2027. See “Recent Developments” above for additional information. As a result, our first maturity of long-term debt is in June of 2027 and relates to our Revolving Credit Facility and 7.75% 2027 Notes. Our 7.54% 2027 Notes (as defined below) will mature in December of 2027.

We have significant purchase obligations in the normal course of business for goods and services, under agreements with defined terms as to quantity, price and timing of delivery. Purchase obligations represent open purchase orders and other commitments for the purchase or construction of property, plant and equipment or intangible assets, operational commitments related to remote ground terminals, or with subcontractors on long-term construction contracts that we have with customers in the normal course of business. As of the year ended December 31, 2022, we had total short-term purchase obligations of $491 million and total long-term purchase obligations of $223 million. These amounts are based on volumes consistent with anticipated requirements to fulfill purchase orders or contracts for product deliveries received, or expected to be received, from customers.

We also have short and long-term requirements to fund our pension plans within the Space Infrastructure segment. Funding requirements under applicable laws and regulations are a major consideration in making contributions to our pension plans. Failure to satisfy the minimum funding thresholds with respect to appropriate laws and regulations could result in restrictions on our ability to amend the plans or make benefit payments. With respect to our qualified pension plan, we intend to contribute annually not less than the required minimum funding thresholds. The American Rescue Plan Act of 2021 includes provisions for pension funding relief in future periods. We have elected to take advantage of these provisions and anticipate lower required contributions for our qualified pension plan in the upcoming years. We had no further required contributions on our qualified pension plan for the year ended December 31, 2022. There are no required contributions for our qualified pension plan for the year ending December 31, 2023.

Our ability to fund our cash needs will depend, in part, on our ability to generate cash in the future, which depends on our future financial results. Our future results are subject to general economic factors, including inflation and rising interest rate costs, and financial, competitive, legislative and regulatory factors that may be outside of our control. Our future access to, and the availability of credit on acceptable terms and conditions is impacted by many factors, including capital market liquidity and overall economic conditions.

We believe that our cash from operating activities generated from continuing operations, together with available borrowings under our Revolving Credit Facility, will be adequate for the next twelve months and the foreseeable future to meet our anticipated uses of cash flow, including working capital, capital expenditure, debt service costs, dividend and other commitments. While we intend to reduce debt over time using cash provided by operations, we may also seek to meet long-term debt obligations, if necessary, and fund future capital investments by obtaining capital from a variety of additional sources or by refinancing existing obligations. These sources include public or private capital markets, bank financings, proceeds from dispositions or other third-party sources.

Table of Contents

Summary of cash flows


	Year Ended December 31,
	2022		2021		2020
($ millions)
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
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
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)
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

Operating activities

Cash flows from operating activities can vary significantly from period to period as a result of our working capital requirements, given our portfolio of large construction programs and the timing of milestone receipts and payments with customers and suppliers in the ordinary course of business. Investment in working capital is also necessary to build our business and manage lead times in construction activities. We expect working capital account balances to continue to vary from period to period. We efficiently fund our working capital requirements with the Revolving Credit Facility.

Cash provided by operating activities from continuing operations increased to $325 million from $294 million, or by $31 million, for the year ended December 31, 2022 compared to 2021. This change was primarily driven by favorable changes in working capital for the year ended December 31, 2022, compared to 2021.

Cash provided by operating activities from continuing operations increased to $294 million from $243 million, or by $51 million, for the year ended December 31, 2021 compared to 2020. This change was primarily driven by favorable changes in working capital for the year ended December 31, 2021, compared to 2020.

Investing activities

Cash used in investing activities from continuing operations increased to $327 million from $234 million, or by $93 million, in the year ended December 31, 2022 compared to 2021. Our primary investing activities included expenditures on property, plant and equipment of $226 million and $135 million, for the years ended December 31, 2022 and 2021, respectively, and investments in intangible assets primarily related to internally developed software of $93 million and $99 million, for the years ended December 31, 2022 and 2021, respectively. Property, plant and equipment expenditures for the years ended December 31, 2022 and 2021 primarily related to the build of our WorldView Legion satellites.

Cash used in investing activities from continuing operations decreased to $234 million from $406 million, or by $172 million, in the year ended December 31, 2021 compared to 2020. Our primary investing activities included expenditures on property, plant and equipment of $135 million and $221 million, for the years ended December 31, 2021 and 2020, respectively, and investments in intangible assets primarily related to internally developed software of $99 million and $87 million, for the years ended December 31, 2021 and 2020, respectively. Property, plant and equipment expenditures in 2021 and 2020 primarily related to the build of our WorldView Legion satellites. During the year ended December 31, 2020, we also used cash of $120 million, net of cash received, to acquire the remaining interest in Vricon.

Table of Contents

Financing activities

Cash provided by financing activities from continuing operations increased to $7 million compared to cash used by financing activities of $31 million, or by $38 million, for the year ended December 31, 2022, compared to the same period of 2021. During the year ended December 31, 2022, Term Loan B was refinanced, which resulted in net proceeds of $1,329 million offset by the cash paid to extinguish the prior Term Loan B of $1,341 million, which excluded amounts accounted for as a debt modification. Additionally, during the year ended December 31, 2022, cash used in financing activities included $537 million used to redeem our 9.75% 2023 Notes, including approximately $37 million in premiums paid to redeem such 9.75% 2023 Notes, debt issuance costs of $27 million, repayments of long-term debt of $18 million and settlement of the securitization liability of $14 million. These items were offset by $500 million in proceeds from the issuance of our 7.75% 2027 Notes and $125 million from the net proceeds of the Revolving Credit Facility. During the year ended December 31, 2021, cash used in financing activities from continuing operations included a repurchase of the 2023 Notes of $384 million, settlement of a securitization liability of $13 million and debt repayments of $10 million, partially offset by proceeds from issuance of common stock of $380 million.

Cash used in financing activities from continuing operations decreased to $31 million from $555 million, or by $524 million, for the year ended December 31, 2021 compared to 2020. During the year ended December 31, 2021, cash used in financing activities from continuing operations included a repurchase of the 2023 Notes of $384 million, settlement of a securitization liability of $13 million and debt repayments of $10 million, partially offset by proceeds from issuance of common stock of $380 million. During the year ended December 31, 2020, cash used in financing activities from continuing operations included debt repayments of $525 million, a repurchase of the 2023 Notes of $169 million and settlement of securitization liability of $11 million, partially offset by net proceeds from bank borrowings of $147 million.

Long-term debt

The following table summarizes our long-term debt:


	December 31,		December 31,
	2022		2021
($ millions)
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

Syndicated Credit Facility

As of December 31, 2022, the Syndicated Credit Facility is composed of: (i) the Revolving Credit Facility in an aggregate capacity of up to $500 million maturing in June 2027 and (ii) Term Loan B in an aggregate principal amount of $1.5 billion maturing in June 2029, which was issued with an original issue discount of 4.50%. 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, we had $24 million and $28 million, respectively, of issued and undrawn letters of credit outstanding under the Revolving Credit Facility.

Table of Contents

9.75% Notes due 2023

On December 11, 2019, we issued $1.0 billion in aggregate principal amount of 9.75% 2023 Notes in a private placement to institutional buyers. The 9.75% 2023 Notes were issued at a price of 98% and are recorded as long-term debt in our 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, for which interest payments commenced in June 2020.

On June 14, 2022, we 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 our 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.

7.75% Notes due 2027

On June 14, 2022, we issued $500 million in aggregate principal amount of 7.75% 2027 Notes in a private placement to qualified institutional buyers. 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 on a senior secured basis by each of our subsidiaries that are guarantors under the Syndicated Credit Facility and its 7.54% 2027 Notes (as defined below).

7.54% Notes due 2027

On June 25, 2020, we issued $150 million in aggregate principal amount of 7.54% Senior Secured Notes due 2027 (“7.54% 2027 Notes”) in a private placement to institutional buyers. The 7.54% 2027 Notes were issued at a price of 98.25% and are recorded as long-term debt in our 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 are guaranteed on a senior secured basis by each of our existing and future subsidiaries that guarantee the Syndicated Credit Facility and the 9.75% 2023 Notes.

Leaseback Deferred Financing

On December 10, 2019, we completed the sale and subsequent leaseback of our owned properties in Palo Alto, California for proceeds of $291 million. We determined that the leaseback terms were off-market. In accordance with Accounting Standards Codification 842 – Leases, we 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.

See Note 11, “Long-term debt and interest expense, net” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for further details on our long-term debt.

Securitization liability

We have in place a revolving securitization facility agreement with an international financial institution. Under the terms of the Syndicated Credit Facility, we 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. During the years ended December 31, 2022, 2021 and 2020, we did not sell or repurchase any orbital receivables.

The orbital receivables that were securitized remain on our balance sheet as the accounting criteria for surrendering control of the orbital receivables were not met. The net proceeds received have been recognized as a securitization liability that has been subsequently measured at amortized cost using the effective interest rate method. The securitized orbital receivables and the securitization liabilities are being drawn down as payments are received from customers and passed on to the international financial institution. We continue to recognize orbital revenue on the orbital receivables that are subject to the securitization transactions and recognize interest expense to accrete the securitization liability.

Table of Contents

Off-balance sheet arrangements

As of December 31, 2022, we had no outstanding foreign exchange sales contracts. As of December 31, 2022, we had $24 million in letters of credit issued under the Revolving Credit Facility. Such arrangements are not expected to have a material effect on our liquidity or capital resources, financial position or results of operations.

We use, from time to time, derivative financial instruments to manage existing foreign currency exposures. We consider the management of financial risks to be an important part of our overall corporate risk management policy. Foreign exchange forward contracts are used to hedge our exposure to currency risk on sales, purchases, cash, net investments and loans denominated in a currency other than the functional currency of our domestic and foreign operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses our Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make judgments, assumptions and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. For a summary of our significant accounting policies, see Note 2, “Summary of significant accounting policies” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data”.

We consider the following accounting policies to be critical to an understanding of our financial condition and results of operations because these policies require the most difficult, subjective or complex judgments on the part of management in their application. Actual results could differ from our estimates and assumptions, and any such differences could be material to our Consolidated Financial Statements.

Revenue recognition

The recognition and measurement of revenue requires the use of judgments and estimates. Specifically, judgment is used in interpreting complex arrangements with nonstandard terms and conditions and determining when all criteria for revenue recognition have been met.

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, we generally recognize 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.

Our cost estimation process is based on the professional knowledge of our engineering, program management and financial professionals and draws on their significant experience and judgment. We prepare EACs for our contracts and calculate estimated revenues and costs over the life of our contracts. Variable consideration is included in our 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. We estimate variable consideration as the most likely amount to which we expect to be entitled. Since our contracts typically span a period of several years, estimation of revenue, cost and progress toward completion requires the use of judgment. Judgments and estimates are re-assessed at least quarterly with most estimates being updated on a monthly basis. Adjustments in estimates could have a material impact on revenue recognition based on the significance of the adjustments. Factors considered in these estimates include our historical performance, the availability, productivity and cost of labor, the nature and complexity of work to be performed, availability and cost of materials, components and subcontracts, the risk and impact of delayed performance and the level of indirect cost allocations.

Table of Contents

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. Revenue from our geospatial intelligence service contracts is recognized from the rendering of services that compensate us at a cost-plus-fixed-fee, firm fixed price, or on a time and materials basis.

Some of our contracts contain multiple performance obligations, which requires us to estimate the standalone selling price of each performance obligation in order to allocate consideration transferred from the customer. We have not historically been able to use third-party evidence for determining standalone selling price due to the unique nature of our products and services and lack of visibility into competitor pricing. Standalone selling prices are determined based on management estimates that involve significant judgment. Multiple factors are considered based on the nature of the deliverables included within the contract, which include market conditions, competitive landscape, geographic or regional specific factors, internal costs, profit margin objectives and pricing practices used by us.

Income Taxes

We are subject to income taxes in the United States, Sweden and other foreign jurisdictions. We compute the 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 on our Consolidated Balance Sheets. Significant judgments are required in order to determine the realizability of tax assets. In assessing the need for a valuation allowance, we evaluate 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.

For further information regarding our deferred tax assets and liabilities see Note 2, “Summary of significant accounting policies” and Note 20, “Income taxes” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data.”

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 2, “Summary of Significant Accounting Policies” to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” for a discussion of recent accounting pronouncements.

NON-GAAP FINANCIAL MEASURES

In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of our financial and operating performance. These non-GAAP financial measures include EBITDA, Adjusted EBITDA and Adjusted EBITDA margin.

We define EBITDA as earnings before interest, taxes, depreciation and amortization, Adjusted EBITDA as EBITDA adjusted for certain items affecting the comparability of our ongoing operating results as specified in the calculation and Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. 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. Management believes that exclusion of these items assists in providing a more complete understanding of our underlying

Table of Contents

results and trends, and management uses these measures along with the corresponding U.S. GAAP financial measures to manage our business, evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is a measure being used as a key element of our incentive compensation plan. The Syndicated Credit Facility also uses Adjusted EBITDA in the determination of our debt leverage covenant ratio. The definition of Adjusted EBITDA in the Syndicated Credit Facility includes a more comprehensive set of adjustments that may result in a different calculation therein.

We believe that these non-GAAP measures, when read in conjunction with our U.S. GAAP results, provide useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business, and the comparison of our operating results against analyst financial models and operating results of other public companies.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA and Adjusted EBITDA should not be considered alternatives to net income as indications of financial performance or as alternate to cash flows from operations as measures of liquidity. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for our results reported under U.S. GAAP.

The table below reconciles our net (loss) income to EBITDA and Adjusted EBITDA for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
	2022		2021	2020
($ millions)
Net (loss) income	$	(150)

Maxar Technologies Inc. 10-K