Segment Financial Data (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Revised historical segment sales and operating profit

Recast segment sales and operating profit, reflecting the performance measurement changes described above, were as follows:

Total Net Sales	Quarter Ended											Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	6,438	$	6,444	$	6,495	$	6,576	$	6,513		$	26,028
Pratt & Whitney	5,353		5,645		5,285		5,154		4,818			$	20,902
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	11,791		12,089		11,780		11,730		11,331			$	46,930
Eliminations and other	(431)		(395)		(407)		(401)		(378)			(1,581)
Consolidated	$	11,360	$	11,694	$	11,373	$	11,329	$	10,953		$	45,349

Operating Profit	Quarter Ended											Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	1,246	$	1,009	$	1,259	$	1,276	$	964		$	4,508
Pratt & Whitney	475		354		520		449		478			1,801
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	1,721		1,363		1,779		1,725		1,442			6,309
Eliminations and other	(25)		(25)		(46)		(42)		(27)			(140)
Corporate expenses and other unallocated items	(130)		(151)		(83)		(87)		(46)			(367)
FAS/CAS operating adjustment	—		—		—		—		—			—
Acquisition accounting adjustments	(271)		(231)		(220)		(210)		(227)			$	(888)
Consolidated	$	1,295	$	956	$	1,430	$	1,386	$	1,142		$	4,914

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Results for the quarters ended June 30, 2020 and 2019 are as follows:

	Net Sales				Operating Profits				Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	4,202	$	6,576	$	(317)	$	1,276	(7.5)	%	19.4	%
Pratt & Whitney	3,487		5,154		(457)		449		(13.1)	%	8.7	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	14,593		11,730		(66)		1,725		(0.5)	%	14.7	%
Eliminations and other(1)	(532)		(401)		(28)		(42)
Corporate expenses and other unallocated items (2)	—		—		(277)		(87)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(3,745)		(210)
Consolidated	$	14,061	$	11,329	$	(3,760)	$	1,386	(26.7)	%	12.2	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

(2) The net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project of $35 million in the three months ended June 30, 2020 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 June 30, 2019.

Results for the six months ended June 30, 2020 and 2019 are as follows:

	Net Sales				Operating Profits				Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	10,640	$	13,089	$	929	$	2,240	8.7	%	17.1	%
Pratt & Whitney	8,840		9,972		18		927		0.2	%	9.3	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	26,384		23,061		1,655		3,167		6.3	%	13.7	%
Eliminations and other (1)	(963)		(779)		(53)		(69)
Corporate expenses and other unallocated items (2)	—		—		(407)		(133)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(4,016)		(437)
Consolidated	$	25,421	$	22,282	$	(2,465)	$	2,528	(9.7)	%	11.3	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

(2) The net expenses related to the U.S. Army’s LTAMDS project of $35 million in the six months ended June 30, 2020 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 six months ended June 30, 2019.

Reconciliation of Assets from Segment to Consolidated

Total assets by segment are as follows:

	Total Assets
(dollars in millions)	June 30, 2020		December 31, 2019
Collins Aerospace Systems(1)	$	70,791	$	74,049
Pratt & Whitney(1)	31,749		31,170
Raytheon Intelligence & Space(1)	20,137		—
Raytheon Missiles & Defense(1)	29,681		—
Total segment	152,358		105,219
Corporate and other	9,024		2,573
Assets related to discontinued operations	135		31,823
Consolidated	$	161,517	$	139,615

(1) Total assets include acquired intangible assets and property, plant and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments.

Disaggregation of Revenue

Segment sales disaggregated by geographic region for the quarters ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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	$	2,505	$	1,892	$	2,565	$	2,150	$	49	$	9,161	$	3,233	$	2,076	$	—	$	—	$	2	$	5,311
Asia Pacific	388		787		195		351		13		1,734		606		1,277		—		—		—		1,883
Middle East and North Africa	99		122		122		720		8		1,071		184		198		—		—		—		382
Europe	787		512		102		291		66		1,758		1,795		1,181		—		—		—		2,976
Canada and All Other	114		177		24		14		8		337		356		421		—		—		—		777
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by geographic region for the six months ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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	$	5,649	$	4,247	$	2,565	$	2,150	$	47	$	14,658	$	6,321	$	4,093	$	—	$	—	$	6	$	10,420
Asia Pacific	992		2,208		195		351		13		3,759		1,178		2,478		—		—		—		3,656
Middle East and North Africa	242		294		122		720		8		1,386		368		396		—		—		—		764
Europe	2,532		1,529		102		291		66		4,520		3,679		2,173		—		—				5,852
Canada and All Other	486		559		24		14		15		1,098		756		834		—		—		—		1,590
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

Segment sales disaggregated by customer for the quarters ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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)	$	1,353	$	1,283	$	2,497	$	2,141	$	54	$	7,328	$	1,286	$	1,148	$	—	$	—	$	—	$	2,434
Foreign military sales through the U.S. government	77		281		202		782		—		1,342		75		315		—		—		—		390
Foreign government direct commercial sales	204		122		209		569		—		1,104		248		134		—		—		—		382
Commercial aerospace and other commercial	2,259		1,804		100		34		90		4,287		4,565		3,556		—		—		2		8,123
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

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

Segment sales disaggregated by customer for the six months ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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)	$	2,642	$	2,522	$	2,497	$	2,141	$	54	$	9,856	$	2,312	$	2,152	$	—	$	—	$	—	$	4,464
Foreign military sales through the U.S. government	132		552		202		782		—		1,668		126		566		—		—		—		692
Foreign government direct commercial sales	429		260		209		569		—		1,467		483		284		—		—		—		767
Commercial aerospace and other commercial	6,698		5,503		100		34		95		12,430		9,381		6,972		—		—		6		16,359
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

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

Segment sales disaggregated by sales type for the quarters ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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	$	3,190	$	1,888	$	2,333	$	3,232	$	125	$	10,768	$	5,076	$	3,310	$	—	$	—	$	2	$	8,388
Service	703		1,602		675		294		19		3,293		1,098		1,843		—		—		—		2,941
Consolidated net sales	$	3,893	$	3,490	$	3,008	$	3,526	$	144	$	14,061	$	6,174	$	5,153	$	—	$	—	$	2	$	11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by sales type for the six months ended June 30, 2020 and 2019 are as follows:

	2020												2019
(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	$	8,094	$	5,143	$	2,333	$	3,232	$	130	$	18,932	$	10,132	$	6,286	$	—	$	—	$	6	$	16,424
Service	1,807		3,694		675		294		19		6,489		2,170		3,688		—		—		—		5,858
Consolidated net sales	$	9,901	$	8,837	$	3,008	$	3,526	$	149	$	25,421	$	12,302	$	9,974	$	—	$	—	$	6	$	22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

RIS and RMD segment sales disaggregated by contract type for the quarter and six months ended June 30, 2020 are as follows:

	Quarter Ended June 30, 2020						Six Months Ended June 30, 2020
(dollars in millions)	Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total
Fixed-price	$	1,203	$	2,178	$	3,381	$	1,203	$	2,178	$	3,381
Cost-type	1,805		1,348		3,153		1,805		1,348		3,153