Orbiting object flares, separate flash appears, then object disappears.

A co-worker and I were outside having a smoke and looking for Perseid meteors, when I spotted what I thought was a satellite.  The "satellite" was heading in a north to south direction and traveling at a typical speed for a satellite.  It looked yellow/orange-ish, like most satellites do.  
A few seconds into viewing the object, it flared, increasing greatly in brightness and then dimming.  I am aware of what satellite flares are, so I was not surprised at this point.  
The object continued to dim and then a bright white/green flash appeared below (?) the object, about the diameter of a quarter if held at arm's distance.  About a second or two later the object dimmed out of view completely.  
If it wasn't for the anomalous flash in the vicinity of the object, just before it disappeared, I would assume what I saw was just a flaring satellite.  I'm pretty sure whatever it was was outside of the atmosphere.