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Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment informationThe Company reports segment information based on the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. During the three months ended March 31, 2022, the Company revised the reporting that the Chief Operating Decision Maker (CODM) reviews in order to assess Company performance. The CODM manages the business with a focus on two reportable segments: 1) a products segment (Products) consisting of the Government - MCM and Commercial business lines and 2) the services segment focused on CDMO (Services). The Company evaluates the performance of these reportable segments based on revenue and adjusted gross margin. Segment revenue includes external customer sales, but it does not include inter-segment services. Adjusted gross margin for each segment is segment revenue less segment cost of sales reduced for significant one-time events. We do not allocate research and development, selling, general and administrative costs, amortization of intangibles assets, interest and other income (expense), or taxes to operating segments in the management reporting reviewed by the CODM. The accounting policies for segment reporting are the same as for the Company as a whole. The Company has recast the related historical information for consistency.
The following table include segment revenues and a reconciliation of the Company's segment adjusted gross margin to the condensed consolidated statement of operations for each of the Company's reporting segments as follows:
March 31, 2022March 31, 2021
ProductsServicesOtherConsolidatedProductsServicesOtherConsolidated
Revenue (1)$237.1 $60.8 $9.6 $307.5 $137.9 $183.8 $21.3 $343.0 
Contracts and grants revenue— — (9.6)(9.6)— — (21.3)(21.3)
Cost of product sales(80.3)— — (80.3)(52.6)— — (52.6)
Cost of contract development and manufacturing— (75.6)— (75.6)— (46.7)— (46.7)
Gross margin156.8 (14.8)— 142.0 85.3 137.1 — 222.4 
Changes in fair value of contingent consideration0.5 — — 0.5 1.1 — — 1.1 
Adjusted gross margin$157.3 $(14.8)$— $142.5 $86.4 $137.1 $— $223.5 
(1) Services revenue and Services adjusted gross margin for the three months ended March 31, 2021 includes the impact of $97.5 million of CDMO leases revenues related to the BARDA COVID-19 Development Public Private Partnership which ended in November 2021.
The following table includes depreciation for each segment as follows:
March 31, 2022March 31, 2021
Depreciation:
Products$7.4 $7.2 
Services7.8 5.3
Other1.4 1.1
Total $16.6 $13.6 
We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our CODM does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment.