RAYTHEON CO/ - 10-K filing on 2019-02-13

Business Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2018

Segment financial results were as follows:



Total Net Sales (in millions)	2018			2017			2016
Integrated Defense Systems	$	6,180		$	5,804		$	5,529
Intelligence, Information and Services	6,722			6,177			6,169
Missile Systems	8,298			7,787			7,096
Space and Airborne Systems	6,748			6,430			6,182
Forcepoint	634			608			586
Eliminations	(1,514		)	(1,423		)	(1,361		)
Total business segment sales	27,068			25,383			24,201
Acquisition Accounting Adjustments	(10		)	(35		)	(77		)
Total	$	27,058		$	25,348		$	24,124



Intersegment Sales (in millions)	2018		2017		2016
Integrated Defense Systems	$	65	$	64	$	69
Intelligence, Information and Services	666		666		657
Missile Systems	161		132		122
Space and Airborne Systems	596		540		493
Forcepoint	26		21		20
Total	$	1,514	$	1,423	$	1,361



Operating Income (in millions)	2018			2017			2016
Integrated Defense Systems	$	1,023		$	935		$	971
Intelligence, Information and Services	538			455			467
Missile Systems	973			1,010			921
Space and Airborne Systems	884			862			808
Forcepoint	5			33			90
Eliminations	(170		)	(148		)	(142		)
Total business segment operating income	3,253			3,147			3,115
Acquisition Accounting Adjustments	(126		)	(160		)	(198		)
FAS/CAS Operating Adjustment	1,428			1,303			1,036
Corporate	(17		)	(59		)	(57		)
Total	$	4,538		$	4,231		$	3,896



Intersegment Operating Income (in millions)	2018		2017		2016
Integrated Defense Systems	$	6	$	5	$	4
Intelligence, Information and Services	68		64		65
Missile Systems	15		13		12
Space and Airborne Systems	60		51		46
Forcepoint	21		15		15
Total	$	170	$	148	$	142

Components of FAS/CAS Operating Adjustment

The pension and PRB components of the FAS/CAS Operating Adjustment were as follows:



(In millions)	2018		2017		2016
FAS/CAS Pension Operating Adjustment	$	1,415	$	1,291	$	1,026
FAS/CAS PRB Operating Adjustment	13		12		10
FAS/CAS Operating Adjustment	$	1,428	$	1,303	$	1,036

Schedules of Capital Expenditures and Depreciation and Amortization



Capital Expenditures (in millions)	2018		2017		2016
Integrated Defense Systems	$	242	$	200	$	135
Intelligence, Information and Services	46		22		59
Missile Systems	337		221		135
Space and Airborne Systems	136		158		149
Forcepoint	13		14		19
Corporate	24		19		29
Total⁽¹⁾	$	798	$	634	$	526


(1)	Total capital expenditures may not agree to our consolidated statements of cash flows due to non-cash transactions.



Depreciation and Amortization (in millions)	2018		2017		2016
Integrated Defense Systems	$	98	$	98	$	88
Intelligence, Information and Services	51		50		65
Missile Systems	98		84		69
Space and Airborne Systems	140		132		122
Forcepoint	17		17		15
Acquisition Accounting Adjustments	116		125		121
Corporate	48		44		35
Total	$	568	$	550	$	515

Components of Identifiable Assets



Total Assets (in millions)	2018		2017
Integrated Defense Systems⁽¹⁾	$	4,829	$	4,679
Intelligence, Information and Services⁽¹⁾	4,242		4,230
Missile Systems⁽¹⁾	8,229		7,338
Space and Airborne Systems⁽¹⁾	6,750		6,696
Forcepoint⁽¹⁾	2,531		2,543
Corporate	5,283		5,374
Total	$	31,864	$	30,860

(1)

Total assets includes intangible assets. Related amortization expense is included in Acquisition Accounting Adjustments.

Schedule of Property Plant and Equipment, Net, by Geographic Areas



Property, Plant and Equipment, Net, by Geographic Area (in millions)	2018		2017
United States	$	2,751	$	2,362
All other (principally Europe)	89		77
Total	$	2,840	$	2,439

Disaggregation of Revenue

We disaggregate our revenue from contracts with customers by geographic location, customer-type and contract-type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. See details in the tables below.



	2018
Disaggregation of Total Net Sales (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Other			Total
United States
Sales to the U.S. government⁽¹⁾
Fixed-price contracts	$	818	$	1,008	$	2,953	$	2,480	$	118	$	—		$	7,377
Cost-type contracts	1,706		4,110		2,675		2,565		14		—			11,070
Direct commercial sales and other U.S. sales
Fixed-price contracts	5		118		41		111		209		—			484
Cost-type contracts	1		18		—		3		—		—			22
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts	189		243		450		152		—		—			1,034
Cost-type contracts	79		45		61		22		—		—			207
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	711		198		173		211		70		—			1,363
Cost-type contracts	117		—		1		1		—		—			119
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts	849		20		452		237		—		—			1,558
Cost-type contracts	170		5		23		69		—		—			267
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	1,137		15		785		95		33		—			2,065
Cost-type contracts	—		—		96		—		—		—			96
All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts	151		2		124		56		—		—			333
Cost-type contracts	27		—		70		6		—		—			103
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	145		230		231		144		154		—			904
Cost-type contracts	10		44		2		—		—		—			56
Total net sales	6,115		6,056		8,137		6,152		598		—			27,058
Intersegment sales	65		666		161		596		26		(1,514		)	—
Acquisition Accounting Adjustments	—		—		—		—		10		(10		)	—
Reconciliation to business segment sales	$	6,180	$	6,722	$	8,298	$	6,748	$	634	$	(1,524	)	$	27,058


(1)	Excludes foreign military sales through the U.S. government.



	2018
Total Net Sales by Geographic Area (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
United States	$	2,530	$	5,254	$	5,669	$	5,159	$	341	$	18,953
Asia/Pacific	1,096		486		685		386		70		2,723
Middle East and North Africa	2,156		40		1,356		401		33		3,986
All other (principally Europe)	333		276		427		206		154		1,396
Total net sales	$	6,115	$	6,056	$	8,137	$	6,152	$	598	$	27,058



	2018
Total Net Sales by Major Customer (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Sales to the U.S. government⁽¹⁾	$	2,524	$	5,118	$	5,628	$	5,045	$	132	$	18,447
U.S. direct commercial sales and other U.S. sales	6		136		41		114		209		506
Foreign military sales through the U.S. government	1,465		315		1,180		542		—		3,502
Foreign direct commercial sales and other foreign sales⁽¹⁾	2,120		487		1,288		451		257		4,603
Total net sales	$	6,115	$	6,056	$	8,137	$	6,152	$	598	$	27,058


(1)	Excludes foreign military sales through the U.S. government.



	2018
Total Net Sales by Contract Type (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Fixed-price contracts	$	4,005	$	1,834	$	5,209	$	3,486	$	584	$	15,118
Cost-type contracts	2,110		4,222		2,928		2,666		14		11,940
Total net sales	$	6,115	$	6,056	$	8,137	$	6,152	$	598	$	27,058



	2017
Disaggregation of Total Net Sales (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Other			Total
United States
Sales to the U.S. government⁽¹⁾
Fixed-price contracts	$	812	$	1,090	$	2,914	$	2,233	$	111	$	—		$	7,160
Cost-type contracts	1,507		3,576		1,991		2,614		12		—			9,700
Direct commercial sales and other U.S. sales
Fixed-price contracts	6		130		1		51		202		—			390
Cost-type contracts	1		9		—		2		1		—			13
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts	167		181		410		113		—		—			871
Cost-type contracts	138		51		64		9		—		—			262
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	596		193		309		284		59		—			1,441
Cost-type contracts	145		—		1		1		—		—			147
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts	1,066		18		371		191		—		—			1,646
Cost-type contracts	154		1		22		30		—		—			207
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	979		18		1,013		175		25		—			2,210
Cost-type contracts	—		—		—		—		—		—			—
All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts	7		3		157		51		—		—			218
Cost-type contracts	22		2		78		5		—		—			107
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	128		209		320		131		142		—			930
Cost-type contracts	12		30		4		—		—		—			46
Total net sales	5,740		5,511		7,655		5,890		552		—			25,348
Intersegment sales	64		666		132		540		21		(1,423		)	—
Acquisition Accounting Adjustments	—		—		—		—		35		(35		)	—
Reconciliation to business segment sales	$	5,804	$	6,177	$	7,787	$	6,430	$	608	$	(1,458	)	$	25,348


(1)	Excludes foreign military sales through the U.S. government.



	2017
Total Net Sales by Geographic Area (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
United States	$	2,326	$	4,805	$	4,906	$	4,900	$	326	$	17,263
Asia/Pacific	1,046		425		784		407		59		2,721
Middle East and North Africa	2,199		37		1,406		396		25		4,063
All other (principally Europe)	169		244		559		187		142		1,301
Total net sales	$	5,740	$	5,511	$	7,655	$	5,890	$	552	$	25,348



	2017
Total Net Sales by Major Customer (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Sales to the U.S. government⁽¹⁾	$	2,319	$	4,666	$	4,905	$	4,847	$	123	$	16,860
U.S. direct commercial sales and other U.S. sales	7		139		1		53		203		403
Foreign military sales through the U.S. government	1,554		256		1,102		399		—		3,311
Foreign direct commercial sales and other foreign sales⁽¹⁾	1,860		450		1,647		591		226		4,774
Total net sales	$	5,740	$	5,511	$	7,655	$	5,890	$	552	$	25,348


(1)	Excludes foreign military sales through the U.S. government.



	2017
Total Net Sales by Contract Type (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Fixed-price contracts	$	3,761	$	1,842	$	5,495	$	3,229	$	539	$	14,866
Cost-type contracts	1,979		3,669		2,160		2,661		13		10,482
Total net sales	$	5,740	$	5,511	$	7,655	$	5,890	$	552	$	25,348



	2016
Disaggregation of Total Net Sales (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Other			Total
United States
Sales to the U.S. government⁽¹⁾
Fixed-price contracts	$	766	$	1,170	$	2,647	$	2,321	$	86	$	—		$	6,990
Cost-type contracts	1,473		3,357		1,902		2,345		16		—			9,093
Direct commercial sales and other U.S. sales
Fixed-price contracts	13		167		2		20		193		—			395
Cost-type contracts	5		22		—		3		—		—			30
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts	136		180		328		107		—		—			751
Cost-type contracts	119		77		70		6		—		—			272
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	502		166		249		288		49		—			1,254
Cost-type contracts	175		—		1		—		—		—			176
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts	816		60		387		148		—		—			1,411
Cost-type contracts	153		3		25		1		—		—			182
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	1,086		72		829		272		18		—			2,277
Cost-type contracts	1		—		—		—		—		—			1
All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts	18		2		108		34		—		—			162
Cost-type contracts	23		—		90		8		—		—			121
Direct commercial sales and other foreign sales⁽¹⁾
Fixed-price contracts	162		206		333		136		127		—			964
Cost-type contracts	12		30		3		—		—		—			45
Total net sales	5,460		5,512		6,974		5,689		489		—			24,124
Intersegment sales	69		657		122		493		20		(1,361		)	—
Acquisition Accounting Adjustments	—		—		—		—		77		(77		)	—
Reconciliation to business segment sales	$	5,529	$	6,169	$	7,096	$	6,182	$	586	$	(1,438	)	$	24,124


(1)	Excludes foreign military sales through the U.S. government.



	2016
Total Net Sales by Geographic Area (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
United States	$	2,257	$	4,716	$	4,551	$	4,689	$	295	$	16,508
Asia/Pacific	932		423		648		401		49		2,453
Middle East and North Africa	2,056		135		1,241		421		18		3,871
All other (principally Europe)	215		238		534		178		127		1,292
Total net sales	$	5,460	$	5,512	$	6,974	$	5,689	$	489	$	24,124



	2016
Total Net Sales by Major Customer (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Sales to the U.S. government⁽¹⁾	$	2,239	$	4,527	$	4,549	$	4,666	$	102	$	16,083
U.S. direct commercial sales and other U.S. sales	18		189		2		23		193		425
Foreign military sales through the U.S. government	1,265		322		1,008		304		—		2,899
Foreign direct commercial sales and other foreign sales⁽¹⁾	1,938		474		1,415		696		194		4,717
Total net sales	$	5,460	$	5,512	$	6,974	$	5,689	$	489	$	24,124


(1)	Excludes foreign military sales through the U.S. government.



	2016
Total Net Sales by Contract Type (in millions)	Integrated Defense Systems		Intelligence, Information and Services		Missile Systems		Space and Airborne Systems		Forcepoint		Total
Fixed-price contracts	$	3,499	$	2,023	$	4,883	$	3,326	$	473	$	14,204
Cost-type contracts	1,961		3,489		2,091		2,363		16		9,920
Total net sales	$	5,460	$	5,512	$	6,974	$	5,689	$	489	$	24,124