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Segment Financial Data
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Financial Data 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.
Collins Aerospace Systems is a leading global provider of technologically advanced aerospace and defense products and aftermarket service solutions for aircraft manufacturers, airlines, and regional, business and general aviation, as well as for defense and commercial space operations. Collins Aerospace’s product lines include integrated avionics systems, communications systems, navigation systems, electric power generation, management and distribution systems, environmental control systems, flight control systems, air data and aircraft sensing systems, engine control systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, landing systems, including landing gear, wheels and braking systems, hoists and winches, fire and ice detection and protection systems, actuation systems, engine components, and propeller systems. Collins Aerospace also designs, produces and supports cabin interior, communications and aviation systems, oxygen systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Collins Aerospace solutions support human space exploration with environmental control and power systems and extravehicular activity suits and support government and defense customer missions by providing airborne intelligence, surveillance and reconnaissance systems, test and training range systems, crew escape systems, and simulation and training solutions. Collins Aerospace also provides information management services through worldwide voice and data communication networks and solutions. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services.
Pratt & Whitney is among the world’s leading suppliers of aircraft engines for commercial, military, business jet and general aviation customers. Pratt & Whitney’s Commercial Engines and Military Engines businesses design, develop, produce and maintain families of large engines for wide- and narrow-body and large regional aircraft for commercial customers and for fighter, bomber, tanker and transport aircraft for military customers. Pratt & Whitney’s small engine business, Pratt & Whitney Canada (P&WC), is among the world’s leading suppliers of engines powering regional airlines, general and business aviation, as well as helicopters. Pratt & Whitney also produces, sells and services military and commercial auxiliary power units. Pratt & Whitney provides fleet management services and aftermarket maintenance, repair and overhaul services in all of these segments.
Raytheon Intelligence & Space is a global leading developer and provider of integrated sensor and communication systems for advanced missions, advanced training, and cyber and software solutions to intelligence, defense, federal and commercial customers. RIS capabilities include space-based sensors and data processing systems; multi-domain intelligence solutions; electronic warfare solutions, including high-energy laser weapons systems; command and control systems; modernization, training and mission support services; and advanced cyber analytics, systems defense and services.
Raytheon Missiles & Defense is a leading designer, developer, integrator producer and sustainer of integrated air and missile defense systems; defensive and combat solutions; large land- and sea-based radars; command, control, communications and intelligence solutions; and naval and undersea sensor solutions for the U.S. and foreign government customers. RMD’s integrated air and missile defense systems include the proven Patriot missile defense system and next-generation radar systems to defeat advanced threats. Its defensive solutions include counter-unmanned aircraft systems and ship defense systems. Its combat solutions include precision munitions, missiles, hypersonics, high power microwave and other weapons. Its command, control, communications and intelligence solutions include integrated, networked, actionable combat solutions for air and land combat commanders. RMD’s naval and undersea solutions include combat and ship electronic and sensing systems, as well as undersea sensing and effects solutions. Its sustainment solutions include maintenance, depot support, training and predictive analytics services.
Segment Information. 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.
In conjunction with the Raytheon Merger, we revised our measurement of segment performance to reflect how management now reviews and evaluates operating performance. Under the new segment performance measurement, certain acquisition
accounting adjustments are now excluded from segments’ results in order to better represent the ongoing operational performance of those segments. In addition, the majority of Corporate expenses are now allocated to the segments, excluding certain items that remain at Corporate because they are not included in management’s review of the segments’ results. Historical results, discussion and presentation of our business segments reflect the impact of these adjustments for all periods presented.
Also 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. 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. Over time we generally expect to recover the related RIS and RMD pension and PRB liabilities 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.
Segment information for the years ended December 31 is as follows:
 Net SalesOperating Profit (Loss)Operating Profit (Loss) Margins
(dollars in millions)202020192018202020192018202020192018
Collins Aerospace Systems$19,288 $26,028 $16,634 $1,466 $4,508 $2,397 7.6 %17.3 %14.4 %
Pratt & Whitney16,799 20,902 19,402 (564)1,801 1,402 (3.4)%8.6 %7.2 %
Raytheon Intelligence & Space10,841 — — 1,014 — — 9.4 %— %— %
Raytheon Missiles & Defense11,660 — — 890 — — 7.6 %— %— %
Total segment58,588 46,930 36,036 2,806 6,309 3,799 4.8 %13.4 %10.5 %
Eliminations and other (1)
(2,001)(1,581)(1,335)(111)(140)(69)
Corporate expenses and other unallocated items (2)
— — — (590)(367)(340)
FAS/CAS operating adjustment— — — 1,106 — — 
Acquisition accounting adjustments(3)
— — — (5,100)(888)(513)
Consolidated$56,587 $45,349 $34,701 $(1,889)$4,914 $2,877 (3.3)%10.8 %8.3 %
(1)    Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger, and subsequently disposed of in January 2021.
(2)    The net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project of $130 million in 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 2019 or 2018.
(3)    Operating profit (loss) in 2020 includes the $3.2 billion goodwill impairment charge in the second quarter of 2020 related to two Collins Aerospace reporting units. Refer to “Note 2: Acquisitions, Dispositions, Goodwill and Intangible Assets” for additional information.
 Total AssetsCapital ExpendituresDepreciation & Amortization
(dollars in millions)20202019202020192018202020192018
Collins Aerospace Systems (1)
$68,701 $74,049 $638 $959 $515 $736 $695 $396 
Pratt & Whitney (1)
32,780 31,170 565 822 866 729 614 574 
Raytheon Intelligence & Space (1)
20,911 — 214 — — 152 — — 
Raytheon Missiles & Defense (1)
29,999 — 284 — — 230 — — 
Total segment152,391 105,219 1,701 1,781 1,381 1,847 1,309 970 
Corporate, eliminations and other9,698 2,573 94 87 86 155 165 161 
Acquisition accounting adjustments2,154 1,234 765 
Assets related to discontinued operations64 31,823 
Consolidated$162,153 $139,615 $1,795 $1,868 $1,467 $4,156 $2,708 $1,896 
(1)    Total assets include acquired intangible assets and property, plant and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments.
Geographic External Sales by Origin and Long-Lived Assets. Geographic external sales are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. 
 External Net SalesLong-Lived Assets
(dollars in millions)20202019201820202019
United States Operations$48,560 $35,125 $26,646 $11,560 $7,048 
International Operations
Europe3,696 4,419 3,092 1,371 1,268 
Asia Pacific1,574 1,989 1,645 893 917 
Middle East and North Africa103 203 226 137 132 
Other2,654 3,613 3,092 1,001 957 
Consolidated$56,587 $45,349 $34,701 $14,962 $10,322 
Disaggregation of Revenue. We also 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 years ended December 31, 2020, 2019 and 2018 are as follows:
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$10,132 $8,534 $8,500 $7,110 $284 $34,560 
Asia Pacific1,810 4,024 613 1,156 41 7,644 
Middle East and North Africa421 505 376 2,111 30 3,443 
Europe4,643 2,726 307 1,031 149 8,856 
Canada and All Other904 1,001 83 73 23 2,084 
Consolidated net sales17,910 16,790 9,879 11,481 527 56,587 
Inter-segment sales1,378 9 962 179 (2,528)— 
Business segment sales$19,288 $16,799 $10,841 $11,660 $(2,001)$56,587 

2019
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$12,762 $8,622 $— $— $13 $21,397 
Asia Pacific2,473 5,462 — — — 7,935 
Middle East and North Africa693 837 — — — 1,530 
Europe7,051 4,327 — — — 11,378 
Canada and All Other1,452 1,657 — — — 3,109 
Consolidated net sales24,431 20,905 — — 13 45,349 
Inter-segment sales1,597 (3)— — (1,594)— 
Business segment sales$26,028 $20,902 $— $— $(1,581)$45,349 
2018
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$7,079 $8,575 $— $— $12 $15,666 
Asia Pacific1,525 5,112 — — — 6,637 
Middle East and North Africa425 457 — — — 882 
Europe5,508 4,023 — — — 9,531 
Canada and All Other748 1,237 — — — 1,985 
Consolidated net sales15,285 19,404 — — 12 34,701 
Inter-segment sales1,349 (2)— — (1,347)— 
Business segment sales$16,634 $19,402 $— $— $(1,335)$34,701 
Segment sales disaggregated by customer for the years ended December 31, 2020, 2019 and 2018 are as follows:
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$5,159 $5,193 $8,309 $7,099 $202 $25,962 
Foreign military sales through the U.S. government218 1,229 593 2,545 — 4,585 
Foreign government direct commercial sales923 583 729 1,736 3 3,974 
Commercial aerospace and other commercial11,610 9,785 248 101 322 22,066 
Consolidated net sales17,910 16,790 9,879 11,481 527 56,587 
Inter-segment sales1,378 9 962 179 (2,528)— 
Business segment sales$19,288 $16,799 $10,841 $11,660 $(2,001)$56,587 
(1)    Excludes foreign military sales through the U.S. government.
2019
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$4,781 $4,313 $— $— $— $9,094 
Foreign military sales through the U.S. government255 1,316 — — — 1,571 
Foreign government direct commercial sales937 561 — — — 1,498 
Commercial aerospace and other commercial18,458 14,715 — — 13 33,186 
Consolidated net sales24,431 20,905 — — 13 45,349 
Inter-segment sales1,597 (3)— — (1,594)— 
Business segment sales$26,028 $20,902 $— $— $(1,581)$45,349 
(1)    Excludes foreign military sales through the U.S. government.
2018
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$2,643 $3,917 $— $— $— $6,560 
Foreign military sales through the U.S. government195 707 — — — 902 
Foreign government direct commercial sales737 538 — — — 1,275 
Commercial aerospace and other commercial11,710 14,242 — — 12 25,964 
Consolidated net sales15,285 19,404 — — 12 34,701 
Inter-segment sales1,349 (2)— — (1,347)— 
Business segment sales$16,634 $19,402 $— $— $(1,335)$34,701 
(1)    Excludes foreign military sales through the U.S. government.
Sales to Airbus primarily relate to Pratt & Whitney and Collins Aerospace products, and prior to discounts and incentives were approximately $7,299 million, $9,879 million and $10,025 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Segment sales disaggregated by sales type for the years ended December 31, 2020, 2019 and 2018 are as follows:
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Product $14,664 $10,186 $7,531 $10,476 $462 $43,319 
Service 3,246 6,604 2,348 1,005 65 13,268 
Consolidated net sales17,910 16,790 9,879 11,481 527 56,587 
Inter-segment sales1,378 9 962 179 (2,528)— 
Business segment sales$19,288 $16,799 $10,841 $11,660 $(2,001)$56,587 

2019
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Product $19,991 $12,994 $— $— $13 $32,998 
Service 4,440 7,911 — — — 12,351 
Consolidated net sales24,431 20,905 — — 13 45,349 
Inter-segment sales1,597 (3)— — (1,594)— 
Business segment sales$26,028 $20,902 $— $— $(1,581)$45,349 

2018
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Product $12,708 $11,421 $— $— $12 $24,141 
Service 2,577 7,983 — — — 10,560 
Consolidated net sales15,285 19,404 — — 12 34,701 
Inter-segment sales1,349 (2)— — (1,347)— 
Business segment sales$16,634 $19,402 $— $— $(1,335)$34,701 
RIS and RMD segment sales disaggregated by contract type for the year ended December 31, 2020 are as follows:
2020
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$4,319 $7,287 
Cost-type5,560 4,194 
Consolidated net sales$9,879 $11,481