XML 38 R25.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Financial Data
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Financial DataOur 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 RIS and 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 Collins Aerospace Systems and Pratt & Whitney segment results, or our consolidated balance sheets, statements of operations or statements of cash flows.
Revised financial results for the fiscal quarters and year ended 2020 were as follows:
2020
(dollars in millions)Q1Q2Q3Q4FY
Revised Net Sales
Collins Aerospace Systems$6,438 $4,202 $4,274 $4,374 $19,288 
Pratt & Whitney5,353 3,487 3,494 4,465 16,799 
Raytheon Intelligence & Space— 3,387 3,749 3,933 11,069 
Raytheon Missiles & Defense— 3,506 3,706 4,184 11,396 
Total segments11,791 14,582 15,223 16,956 58,552 
Eliminations and other(431)(521)(476)(537)(1,965)
Consolidated$11,360 $14,061 $14,747 $16,419 $56,587 
Revised Operating Profit (Loss)
Collins Aerospace Systems$1,246 $(317)$526 $11 $1,466 
Pratt & Whitney475 (457)(615)33 (564)
Raytheon Intelligence & Space— 309 350 361 1,020 
Raytheon Missiles & Defense— 398 449 33 880 
Total segments1,721 (67)710 438 2,802 
Eliminations and other(25)(27)(49)(6)(107)
Corporate expenses and other unallocated items(130)(277)(84)(99)(590)
FAS/CAS operating adjustment— 356 380 370 1,106 
Acquisition accounting adjustments(271)(3,745)(523)(561)(5,100)
Consolidated$1,295 $(3,760)$434 $142 $(1,889)
Revised Segment Operating Profit (Loss) Margin
Collins Aerospace Systems19.4 %(7.5)%12.3 %0.3 %7.6 %
Pratt & Whitney8.9 %(13.1)%(17.6)%0.7 %(3.4)%
Raytheon Intelligence & SpaceNM9.1 %9.3 %9.2 %9.2 %
Raytheon Missiles & DefenseNM11.4 %12.1 %0.8 %7.7 %
Total segment14.6 %(0.5)%4.7 %2.6 %4.8 %
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 June 30, 2021 and 2020 are as follows:
Net SalesOperating ProfitOperating Profit Margins
(dollars in millions)202120202021202020212020
Collins Aerospace Systems$4,545 $4,202 $506 $(317)11.1 %(7.5)%
Pratt & Whitney4,280 3,487 112 (457)2.6 %(13.1)%
Raytheon Intelligence & Space3,805 3,387 415 309 10.9 %9.1 %
Raytheon Missiles & Defense3,985 3,506 532 398 13.4 %11.4 %
Total segment16,615 14,582 1,565 (67)9.4 %(0.5)%
Eliminations and other(1)
(735)(521)(40)(27)
Corporate expenses and other unallocated items (2)
— — (149)(277)
FAS/CAS operating adjustment— — 425 356 
Acquisition accounting adjustments— — (519)(3,745)
Consolidated$15,880 $14,061 $1,282 $(3,760)8.1 %(26.7)%
(1)    Includes the operating results of certain smaller non-reportable business segments. 2020 amounts include Forcepoint, which was acquired as part of the Raytheon Merger and subsequently disposed of on January 8, 2021.
(2)    Corporate expenses and other unallocated items include the net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project.
Results for the six months ended June 30, 2021 and 2020 are as follows:
Net SalesOperating ProfitOperating Profit Margins
(dollars in millions)202120202021202020212020
Collins Aerospace Systems$8,915 $10,640 $820 $929 9.2 %8.7 %
Pratt & Whitney8,310 8,840 132 18 1.6 %0.2 %
Raytheon Intelligence & Space7,570 3,387 803 309 10.6 %9.1 %
Raytheon Missiles & Defense7,778 3,506 1,028 398 13.2 %11.4 %
Total segment32,573 26,373 2,783 1,654 8.5 %6.3 %
Eliminations and other (1)
(1,442)(952)(71)(52)
Corporate expenses and other unallocated items (2)
— — (230)(407)
FAS/CAS operating adjustment— — 848 356 
Acquisition accounting adjustments— — (1,035)(4,016)
Consolidated$31,131 $25,421 $2,295 $(2,465)7.4 %(9.7)%
(1)    Includes the operating results of certain smaller non-reportable business segments. 2020 amounts include Forcepoint, which was acquired as part of the Raytheon Merger and subsequently disposed of on January 8, 2021.
(2)    Corporate expenses and other unallocated items include the net expenses related to the U.S. Army’s LTAMDS project.
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 June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$2,323 $2,139 $3,020 $2,385 $4 $9,871 $2,505 $1,892 $2,628 $2,087 $49 $9,161 
Asia Pacific470 971 205 356 — 2,002 388 787 200 346 13 1,734 
Middle East and North Africa115 85 132 835 — 1,167 99 122 137 705 8 1,071 
Europe1,062 807 118 325 4 2,316 787 512 102 291 66 1,758 
Canada and All Other203 278 26 17 — 524 114 177 24 14 8 337 
Consolidated net sales4,173 4,280 3,501 3,918 8 15,880 3,893 3,490 3,091 3,443 144 14,061 
Inter-segment sales372 — 304 67 (743)— 309 (3)296 63 (665)— 
Business segment sales$4,545 $4,280 $3,805 $3,985 $(735)$15,880 $4,202 $3,487 $3,387 $3,506 $(521)$14,061 
Segment sales disaggregated by geographic region for the six months ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$4,565 $4,298 $5,985 $4,742 $11 $19,601 $5,649 $4,247 $2,628 $2,087 $47 $14,658 
Asia Pacific875 1,764 409 726 — 3,774 992 2,208 200 346 13 3,759 
Middle East and North Africa210 189 265 1,495 — 2,159 242 294 137 705 8 1,386 
Europe2,141 1,433 232 652 5 4,463 2,532 1,529 102 291 66 4,520 
Canada and All Other420 626 55 33 — 1,134 486 559 24 14 15 1,098 
Consolidated net sales8,211 8,310 6,946 7,648 16 31,131 9,901 8,837 3,091 3,443 149 25,421 
Inter-segment sales704 — 624 130 (1,458)— 739 3 296 63 (1,101)— 
Business segment sales$8,915 $8,310 $7,570 $7,778 $(1,442)$31,131 $10,640 $8,840 $3,387 $3,506 $(952)$25,421 
Segment sales disaggregated by customer for the quarters ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$1,147 $1,191 $2,944 $2,384 $4 $7,670 $1,353 $1,283 $2,560 $2,078 $54 $7,328 
Foreign military sales through the U.S. government25 397 209 866 — 1,497 77 281 218 766 — 1,342 
Foreign government direct commercial sales301 127 217 668 — 1,313 204 122 213 565 — 1,104 
Commercial aerospace and other commercial2,700 2,565 131 — 4 5,400 2,259 1,804 100 34 90 4,287 
Consolidated net sales4,173 4,280 3,501 3,918 8 15,880 3,893 3,490 3,091 3,443 144 14,061 
Inter-segment sales372 — 304 67 (743)— 309 (3)296 63 (665)— 
Business segment sales$4,545 $4,280 $3,805 $3,985 $(735)$15,880 $4,202 $3,487 $3,387 $3,506 $(521)$14,061 
(1)    Excludes foreign military sales through the U.S. government.
Segment sales disaggregated by customer for the six months ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$2,369 $2,453 $5,844 $4,741 $11 $15,418 $2,642 $2,522 $2,560 $2,078 $54 $9,856 
Foreign military sales through the U.S. government65 639 417 1,671 — 2,792 132 552 218 766 — 1,668 
Foreign government direct commercial sales546 266 446 1,235 — 2,493 429 260 213 565 — 1,467 
Commercial aerospace and other commercial5,231 4,952 239 1 5 10,428 6,698 5,503 100 34 95 12,430 
Consolidated net sales8,211 8,310 6,946 7,648 16 31,131 9,901 8,837 3,091 3,443 149 25,421 
Inter-segment sales704 — 624 130 (1,458)— 739 3 296 63 (1,101)— 
Business segment sales$8,915 $8,310 $7,570 $7,778 $(1,442)$31,131 $10,640 $8,840 $3,387 $3,506 $(952)$25,421 
(1)    Excludes foreign military sales through the U.S. government.
Segment sales disaggregated by sales type for the quarters ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Product $3,349 $2,582 $2,675 $3,565 $8 $12,179 $3,190 $1,888 $2,409 $3,156 $125 $10,768 
Service 824 1,698 826 353 — 3,701 703 1,602 682 287 19 3,293 
Consolidated net sales4,173 4,280 3,501 3,918 8 15,880 3,893 3,490 3,091 3,443 144 14,061 
Inter-segment sales372 — 304 67 (743)— 309 (3)296 63 (665)— 
Business segment sales$4,545 $4,280 $3,805 $3,985 $(735)$15,880 $4,202 $3,487 $3,387 $3,506 $(521)$14,061 
Segment sales disaggregated by sales type for the six months ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Product $6,531 $5,005 $5,351 $6,940 $16 $23,843 $8,094 $5,143 $2,409 $3,156 $130 $18,932 
Service 1,680 3,305 1,595 708 — 7,288 1,807 3,694 682 287 19 6,489 
Consolidated net sales8,211 8,310 6,946 7,648 16 31,131 9,901 8,837 3,091 3,443 149 25,421 
Inter-segment sales704 — 624 130 (1,458)— 739 3 296 63 (1,101)— 
Business segment sales$8,915 $8,310 $7,570 $7,778 $(1,442)$31,131 $10,640 $8,840 $3,387 $3,506 $(952)$25,421 
RIS and RMD segment sales disaggregated by contract type for the quarters ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$1,556 $2,402 $1,271 $2,110 
Cost-type1,945 1,516 1,820 1,333 
Consolidated net sales$3,501 $3,918 $3,091 $3,443 
RIS and RMD segment sales disaggregated by contract type for the six months ended June 30, 2021 and 2020 are as follows:
20212020
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$3,027 $4,653 $1,271 $2,110 
Cost-type3,919 2,995 1,820 1,333 
Consolidated net sales$6,946 $7,648 $3,091 $3,443