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Segment Financial Data | 3 Months Ended
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Mar. 31, 2021
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | Segment Financial Data Our operations, for the periods presented herein, are classified into four principal segments: Collins Aerospace, Pratt & Whitney, RIS and RMD. The segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. The results of RIS and RMD reflect the period subsequent to the completion of the Raytheon Merger on April 3, 2020. As previously announced, effective January 1, 2021, we reorganized certain product areas of our Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD) businesses to more efficiently leverage our capabilities. The amounts and presentation of our business segments, including intersegment activity, set forth in this Form 10-Q reflect this reorganization. The reorganization does not impact our previously reported consolidated balance sheets, statements of operations or statements of cash flows. As a result of the Raytheon Merger, we now present a FAS/CAS operating adjustment outside of segment results, which represents the difference between the service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. Generally Accepted Accounting Principles (GAAP) and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our RIS and RMD segments. While the ultimate liability for pension and PRB costs under FAS and CAS is similar, the pattern of cost recognition is different. We generally expect to recover the related RIS and RMD pension and PRB liabilities over time through the pricing of our products and services to the U.S. government. Because the Collins Aerospace and Pratt & Whitney segments generally record pension and PRB expense on a FAS basis, historical results were not impacted by this change in segment reporting. Total sales and operating profit by segment include inter-segment sales which are generally recorded at prices approximating those that the selling entity is able to obtain on external sales for our Collins Aerospace and Pratt & Whitney segments, and at cost-plus a specified fee, which may differ from what the selling entity would be able to obtain on sales to external customers, for our RIS and RMD segments. Results for the quarters ended March 31, 2021 and 2020 are as follows:
| Net Sales |  | Operating Profit |  | Operating Profit Margins
(dollars in millions) | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Collins Aerospace Systems | $ | 4,370 |  |  | $ | 6,438 |  |  | $ | 314 |  |  | $ | 1,246 |  |  | 7.2 | % |  | 19.4 | %
Pratt & Whitney | 4,030 |  |  | 5,353 |  |  | 20 |  |  | 475 |  |  | 0.5 | % |  | 8.9 | %
Raytheon Intelligence & Space | 3,765 |  |  | — |  |  | 388 |  |  | — |  |  | 10.3 | % |  | — | %
Raytheon Missiles & Defense | 3,793 |  |  | — |  |  | 496 |  |  | — |  |  | 13.1 | % |  | — | %
Total segment | 15,958 |  |  | 11,791 |  |  | 1,218 |  |  | 1,721 |  |  | 7.6 | % |  | 14.6 | %
Eliminations and other(1) | (707) |  |  | (431) |  |  | (31) |  |  | (25) |  |  |  |  |
Corporate expenses and other unallocated items (2) | — |  |  | — |  |  | (81) |  |  | (130) |  |  |  |  |
FAS/CAS operating adjustment | — |  |  | — |  |  | 423 |  |  | — |  |  |  |  |
Acquisition accounting adjustments | — |  |  | — |  |  | (516) |  |  | (271) |  |  |  |  |
Consolidated | $ | 15,251 |  |  | $ | 11,360 |  |  | $ | 1,013 |  |  | $ | 1,295 |  |  | 6.6 | % |  | 11.4 | %
(1) Includes the operating results of certain smaller non-reportable business segments. (2) The net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project of $58 million in the quarter ended March 31, 2021 are included in Corporate operating profit as they are not included in management’s evaluation of business segment results. No amounts were recorded in the quarter ended March 31, 2020. We disaggregate our contracts from customers by geographic location based on customer location, by customer and by sales type. Our geographic location based on customer location uses end user customer location where known or practical to determine, or in instances where the end user customer is not known or not practical to determine, we utilize “ship to” location as the customer location. In addition, for our RIS and RMD segments, we disaggregate our contracts from customers by contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Historical results have been recast to reflect the presentation of this disaggregation. Segment sales disaggregated by geographic region for the quarters ended March 31, 2021 and 2020 are as follows:
| 2021 |  | 2020
(dollars in millions) | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total |  | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total
United States | $ | 2,242 |  | $ | 2,159 |  | $ | 2,965 |  | $ | 2,357 |  | $ | 7 |  | $ | 9,730 |  |  | $ | 3,144 |  | $ | 2,355 |  | $ | — |  | $ | — |  | $ | 5 |  | $ | 5,504 |
Asia Pacific | 405 |  | 793 |  | 204 |  | 370 |  | — |  | 1,772 |  |  | 604 |  | 1,421 |  | — |  | — |  | — |  | 2,025 |
Middle East and North Africa | 95 |  | 104 |  | 133 |  | 660 |  | — |  | 992 |  |  | 143 |  | 172 |  | — |  | — |  | — |  | 315 |
Europe | 1,079 |  | 626 |  | 114 |  | 327 |  | 1 |  | 2,147 |  |  | 1,745 |  | 1,017 |  | — |  | — |  | — |  | 2,762 |
Canada and All Other | 217 |  | 348 |  | 29 |  | 16 |  | — |  | 610 |  |  | 372 |  | 382 |  | — |  | — |  | — |  | 754 |
Consolidated net sales | 4,038 |  | 4,030 |  | 3,445 |  | 3,730 |  | 8 |  | 15,251 |  |  | 6,008 |  | 5,347 |  | — |  | — |  | 5 |  | 11,360 |
Inter-segment sales | 332 |  | — |  | 320 |  | 63 |  | (715) |  | — |  |  | 430 |  | 6 |  | — |  | — |  | (436) |  | — |
Business segment sales | $ | 4,370 |  | $ | 4,030 |  | $ | 3,765 |  | $ | 3,793 |  | $ | (707) |  | $ | 15,251 |  |  | $ | 6,438 |  | $ | 5,353 |  | $ | — |  | $ | — |  | $ | (431) |  | $ | 11,360 |
Segment sales disaggregated by customer for the quarters ended March 31, 2021 and 2020 are as follows:
| 2021 |  | 2020
(dollars in millions) | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total |  | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total
U.S. government (1) | $ | 1,222 |  | $ | 1,262 |  | $ | 2,900 |  | $ | 2,357 |  | $ | 7 |  | $ | 7,748 |  |  | $ | 1,289 |  | $ | 1,239 |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,528 |
Foreign military sales through the U.S. government | 40 |  | 242 |  | 208 |  | 805 |  | — |  | 1,295 |  |  | 55 |  | 271 |  | — |  | — |  | — |  | 326 |
Foreign government direct commercial sales | 245 |  | 139 |  | 229 |  | 567 |  | — |  | 1,180 |  |  | 225 |  | 138 |  | — |  | — |  | — |  | 363 |
Commercial aerospace and other commercial | 2,531 |  | 2,387 |  | 108 |  | 1 |  | 1 |  | 5,028 |  |  | 4,439 |  | 3,699 |  | — |  | — |  | 5 |  | 8,143 |
Consolidated net sales | 4,038 |  | 4,030 |  | 3,445 |  | 3,730 |  | 8 |  | 15,251 |  |  | 6,008 |  | 5,347 |  | — |  | — |  | 5 |  | 11,360 |
Inter-segment sales | 332 |  | — |  | 320 |  | 63 |  | (715) |  | — |  |  | 430 |  | 6 |  | — |  | — |  | (436) |  | — |
Business segment sales | $ | 4,370 |  | $ | 4,030 |  | $ | 3,765 |  | $ | 3,793 |  | $ | (707) |  | $ | 15,251 |  |  | $ | 6,438 |  | $ | 5,353 |  | $ | — |  | $ | — |  | $ | (431) |  | $ | 11,360 |
(1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by sales type for the quarters ended March 31, 2021 and 2020 are as follows:
| 2021 |  | 2020
(dollars in millions) | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total |  | Collins Aerospace Systems | Pratt & Whitney | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Other | Total
Product | $ | 3,182 |  | $ | 2,423 |  | $ | 2,676 |  | $ | 3,375 |  | $ | 8 |  | $ | 11,664 |  |  | $ | 4,905 |  | $ | 3,255 |  | $ | — |  | $ | — |  | $ | 5 |  | $ | 8,165 |
Service | 856 |  | 1,607 |  | 769 |  | 355 |  | — |  | 3,587 |  |  | 1,103 |  | 2,092 |  | — |  | — |  | — |  | 3,195 |
Consolidated net sales | 4,038 |  | 4,030 |  | 3,445 |  | 3,730 |  | 8 |  | 15,251 |  |  | 6,008 |  | 5,347 |  | — |  | — |  | 5 |  | 11,360 |
Inter-segment sales | 332 |  | — |  | 320 |  | 63 |  | (715) |  | — |  |  | 430 |  | 6 |  | — |  | — |  | (436) |  | — |
Business segment sales | $ | 4,370 |  | $ | 4,030 |  | $ | 3,765 |  | $ | 3,793 |  | $ | (707) |  | $ | 15,251 |  |  | $ | 6,438 |  | $ | 5,353 |  | $ | — |  | $ | — |  | $ | (431) |  | $ | 11,360 |
RIS and RMD segment sales disaggregated by contract type for the quarter ended March 31, 2021 are as follows:
| 2021 |  |
(dollars in millions) | Raytheon Intelligence & Space | Raytheon Missiles & Defense |  |  |  |  |
Fixed-price | $ | 1,471 |  | $ | 2,251 |  |  |  |  |  |
Cost-type | 1,974 |  | 1,479 |  |  |  |  |  |
Consolidated net sales | $ | 3,445 |  | $ | 3,730 |  |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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