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Segment Financial Data
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Financial Data
Note 18: Segment Financial Data
Our operations, for the periods presented herein, are classified into three principal segments: Collins, Pratt & Whitney, and Raytheon. Our 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.
We 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 Raytheon segment. While the ultimate liability for pension and PRB costs under FAS and CAS is similar, the pattern of cost recognition is different. Over time, we generally expect to recover the related Raytheon
pension and PRB liabilities through the pricing of our products and services to the U.S. government. Collins and Pratt & Whitney generally record pension and PRB expense on a FAS basis.
Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant, and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable. These adjustments are not considered part of management’s evaluation of segment results.
Total sales and operating profit (loss) by segment include inter-segment sales which are generally recorded at cost-plus a specified fee or at a negotiated fixed price. These pricing arrangements may result in margins different than what the purchasing segment realizes on the ultimate third-party sale. Results for the quarters ended September 30, 2024 and 2023 are as follows:
Net SalesOperating Profit (Loss)Operating Profit (Loss) Margins
(dollars in millions)202420232024202320242023
Collins Aerospace$7,075 $6,629 $1,062 $903 15.0 %13.6 %
Pratt & Whitney (2)
7,239 926 557 (2,482)7.7 %(268.0)%
Raytheon6,386 6,472 647 560 10.1 %8.7 %
Total segment20,700 14,027 2,266 (1,019)10.9 %(7.3)%
Eliminations and other (1)
(611)(563)(14)(69)
Corporate expenses and other unallocated items— — 100 (63)
FAS/CAS operating adjustment— — 210 272 
Acquisition accounting adjustments— — (534)(517)
Consolidated$20,089 $13,464 $2,028 $(1,396)10.1 %(10.4)%
(1)    Includes the operating results of certain smaller operations.
(2)    2023 includes the impacts of the Powder Metal Matter.
Results for the nine months ended September 30, 2024 and 2023 are as follows:
Net SalesOperating Profit (Loss)Operating Profit (Loss) Margins
(dollars in millions)202420232024202320242023
Collins Aerospace $20,747 $19,133 $3,029 $2,699 14.6 %14.1 %
Pratt & Whitney (2)
20,497 11,857 1,511 (1,837)7.4 %(15.5)%
Raytheon (3)
19,556 19,464 1,770 1,775 9.1 %9.1 %
Total segment60,800 50,454 6,310 2,637 10.4 %5.2 %
Eliminations and other (1)
(1,685)(1,461)(55)(34)
Corporate expenses and other unallocated items (4)
— — (926)(165)
FAS/CAS operating adjustment— — 636 845 
Acquisition accounting adjustments— — (1,538)(1,499)
Consolidated$59,115 $48,993 $4,427 $1,784 7.5 %3.6 %
(1)    Includes the operating results of certain smaller operations.
(2)    2023 includes the impacts of the Powder Metal Matter.
(3)    Operating Profit and Margins include a $0.6 billion charge in the second quarter of 2024 related to the anticipated Raytheon Contract Termination and a $0.4 billion gain, net of transaction and other related costs, in the first quarter of 2024 related to the sale of our CIS business. See “Note 5: Changes in Contract Estimates at Completion” and “Note 2: Acquisitions and Dispositions,” respectively, for additional information.
(4)    Includes a $0.9 billion charge in the second quarter of 2024 related to the Resolution of Certain Legal Matters. See “Note 1: Basis of Presentation” for additional information.
We disaggregate our contracts from customers by geographic region based on customer location, by type of customer, and by sales type. Our geographic region 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, uses “ship to” location as the customer location. In addition, for our Raytheon segment, 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.
Segment sales disaggregated by geographic region based on customer location for the quarters ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins AerospacePratt & WhitneyRaytheonOtherTotal
United States$3,401 $3,346 $4,615 $49 $11,411 $3,323 $2,849 $4,987 $(4)$11,155 
Europe1,611 1,535 973 1 4,120 1,580 1,533 400 1 3,514 
Asia Pacific825 1,449 515 — 2,789 674 1,191 549 — 2,414 
Middle East and North Africa236 179 213 — 628 187 168 469 — 824 
Other regions380 730 31 — 1,141 335 586 37 — 958 
Powder Metal Matter— — — — — — (5,401)— — (5,401)
Consolidated net sales6,453 7,239 6,347 50 20,089 6,099 926 6,442 (3)13,464 
Inter-segment sales622 — 39 (661)— 530 — 30 (560)— 
Business segment sales$7,075 $7,239 $6,386 $(611)$20,089 $6,629 $926 $6,472 $(563)$13,464 
Segment sales disaggregated by geographic region for the nine months ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins AerospacePratt & WhitneyRaytheonOtherTotal
United States$10,128 $9,629 $14,511 $129 $34,397 $9,657 $8,327 $14,865 $81 $32,930 
Europe4,871 4,612 2,056 3 11,542 4,580 3,998 1,209 3 9,790 
Asia Pacific2,296 3,977 1,603 1 7,877 1,864 3,068 1,640 1 6,573 
Middle East and North Africa612 489 1,167 — 2,268 531 382 1,525 — 2,438 
Other regions1,131 1,789 111 — 3,031 1,050 1,482 131 — 2,663 
Powder Metal Matter— — — — — — (5,401)— — (5,401)
Consolidated net sales19,038 20,496 19,448 133 59,115 17,682 11,856 19,370 85 48,993 
Inter-segment sales1,709 1 108 (1,818)— 1,451 1 94 (1,546)— 
Business segment sales$20,747 $20,497 $19,556 $(1,685)$59,115 $19,133 $11,857 $19,464 $(1,461)$48,993 
Segment sales disaggregated by type of customer for the quarters ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins Aerospace
Pratt & Whitney (2)
RaytheonOtherTotal
Sales to the U.S. government (1)
$1,757 $1,595 $4,595 $49 $7,996 $1,502 $1,239 $4,943 $(6)$7,678 
Foreign military sales through the U.S. government85 433 984 — 1,502 76 474 767 — 1,317 
Foreign government direct commercial sales319 196 702 1 1,218 257 127 636 — 1,020 
Commercial aerospace and other commercial sales4,292 5,015 66 — 9,373 4,264 (914)96 3 3,449 
Consolidated net sales6,453 7,239 6,347 50 20,089 6,099 926 6,442 (3)13,464 
Inter-segment sales622 — 39 (661)— 530 — 30 (560)— 
Business segment sales$7,075 $7,239 $6,386 $(611)$20,089 $6,629 $926 $6,472 $(563)$13,464 
(1)    Excludes foreign military sales through the U.S. government.
(2)    Includes the reduction in sales from the Powder Metal Matter.
Segment sales disaggregated by customer for the nine months ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins Aerospace
Pratt & Whitney (2)
RaytheonOtherTotal
Sales to the U.S. government (1)
$4,951 $4,664 $14,432 $128 $24,175 $4,670 $3,774 $14,670 $79 $23,193 
Foreign military sales through the U.S. government248 1,129 2,643 — 4,020 226 1,158 2,436 — 3,820 
Foreign government direct commercial sales945 514 2,136 2 3,597 793 347 1,970 3 3,113 
Commercial aerospace and other commercial sales12,894 14,189 237 3 27,323 11,993 6,577 294 3 18,867 
Consolidated net sales19,038 20,496 19,448 133 59,115 17,682 11,856 19,370 85 48,993 
Inter-segment sales1,709 1 108 (1,818)— 1,451 1 94 (1,546)— 
Business segment sales$20,747 $20,497 $19,556 $(1,685)$59,115 $19,133 $11,857 $19,464 $(1,461)$48,993 
(1)    Excludes foreign military sales through the U.S. government.
(2)    Includes the reduction in sales from the Powder Metal Matter.
Segment sales disaggregated by sales type for the quarters ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins Aerospace
Pratt & Whitney (1)
RaytheonOtherTotal
Products$5,024 $4,119 $5,524 $41 $14,708 $4,761 $(1,486)$5,339 $1 $8,615 
Services1,429 3,120 823 9 5,381 1,338 2,412 1,103 (4)4,849 
Consolidated net sales6,453 7,239 6,347 50 20,089 6,099 926 6,442 (3)13,464 
Inter-segment sales622 — 39 (661)— 530 — 30 (560)— 
Business segment sales$7,075 $7,239 $6,386 $(611)$20,089 $6,629 $926 $6,472 $(563)$13,464 
(1)    Includes the reduction in sales from the Powder Metal Matter.
Segment sales disaggregated by sales type for the nine months ended September 30, 2024 and 2023 are as follows:
20242023
(dollars in millions)Collins AerospacePratt & WhitneyRaytheonOtherTotalCollins Aerospace
Pratt & Whitney (1)
RaytheonOtherTotal
Products $14,884 $11,925 $16,648 $116 $43,573 $13,813 $4,765 $16,149 $86 $34,813 
Services 4,154 8,571 2,800 17 15,542 3,869 7,091 3,221 (1)14,180 
Consolidated net sales$19,038 $20,496 $19,448 $133 $59,115 $17,682 $11,856 $19,370 $85 $48,993 
Inter-segment sales1,709 1 108 (1,818)— 1,451 1 94 (1,546)— 
Business segment sales$20,747 $20,497 $19,556 $(1,685)$59,115 $19,133 $11,857 $19,464 $(1,461)$48,993 
(1)    Includes the reduction in sales from the Powder Metal Matter.
Raytheon segment sales disaggregated by contract type for the quarters ended September 30, 2024 and 2023 are as follows:
(dollars in millions)20242023
Fixed-price$3,409 $2,997 
Cost-type2,938 3,445 
Consolidated net sales6,347 6,442 
Inter-segment sales39 30 
Business segment sales$6,386 $6,472 
Raytheon segment sales disaggregated by contract type for the nine months ended September 30, 2024 and 2023 are as follows:
(dollars in millions)20242023
Fixed-price$10,020 $9,639 
Cost-type9,428 9,731 
Consolidated net sales19,448 19,370 
Inter-segment sales108 94 
Business segment sales$19,556 $19,464