Damage represents the amount of structural damage a ship can take. Damage is tracked by damage cards. A ship is destroyed when the number of damage cards it has is equal to or greater than its hull value.
There are two types of damage: (regular) damage and (critical) damage. When a ship suffers damage, that damage is suffered one at a time. For each damage a ship suffers, it loses a shield by flipping the shield to its inactive side. If it does not have an active shield remaining, it is dealt a damage card instead. For damage, the card is dealt facedown; for damage, the card is dealt faceup and its text is resolved. All damage is suffered before damage.
A ship is DAMAGED while it has at least one damage card. A ship is CRITICALLY DAMAGED while it has at least one faceup damage card.