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 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) | Q1 | Q2 | Q3 | Q4 | FY | Net Sales | | | | | | Collins Aerospace Systems | $ | 6,438 | | $ | 4,202 | | $ | 4,274 | | $ | 4,374 | | $ | 19,288 | | Pratt & Whitney | 5,353 | | 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 segments | 11,791 | | 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 | | | | | | | |
| | | | | | | | | | | | | | | | | | Operating Profit (Loss) | | | | | | Collins Aerospace Systems | $ | 1,246 | | $ | (317) | | $ | 526 | | $ | 11 | | $ | 1,466 | | Pratt & Whitney | 475 | | (457) | | (615) | | 33 | | (564) | | Raytheon Intelligence & Space | — | | 309 | | 350 | | 361 | | 1,020 | | Raytheon Missiles & Defense | — | | 398 | | 449 | | 33 | | 880 | | Total segments | 1,721 | | (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) | | | | | | | | Segment Operating Profit (Loss) Margin | | | | | | Collins Aerospace Systems | 19.4 | % | (7.5) | % | 12.3 | % | 0.3 | % | 7.6 | % | Pratt & Whitney | 8.9 | % | (13.1) | % | (17.6) | % | 0.7 | % | (3.4) | % | Raytheon Intelligence & Space | NM | 9.1 | % | 9.3 | % | 9.2 | % | 9.2 | % | Raytheon Missiles & Defense | NM | 11.4 | % | 12.1 | % | 0.8 | % | 7.7 | % | Total segment | 14.6 | % | (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 September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Sales | | Operating Profit (Loss) | | Operating Profit (Loss) Margins | (dollars in millions) | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Collins Aerospace Systems | $ | 4,592 | | | $ | 4,274 | | | $ | 478 | | | $ | 526 | | | 10.4 | % | | 12.3 | % | Pratt & Whitney | 4,725 | | | 3,494 | | | 187 | | | (615) | | | 4.0 | % | | (17.6) | % | Raytheon Intelligence & Space | 3,740 | | | 3,749 | | | 391 | | | 350 | | | 10.5 | % | | 9.3 | % | Raytheon Missiles & Defense | 3,902 | | | 3,706 | | | 490 | | | 449 | | | 12.6 | % | | 12.1 | % | Total segment | 16,959 | | | 15,223 | | | 1,546 | | | 710 | | | 9.1 | % | | 4.7 | % | Eliminations and other(1) | (746) | | | (476) | | | (27) | | | (49) | | | | | | Corporate expenses and other unallocated items (2) | — | | | — | | | (89) | | | (84) | | | | | | FAS/CAS operating adjustment | — | | | — | | | 499 | | | 380 | | | | | | Acquisition accounting adjustments | — | | | — | | | (586) | | | (523) | | | | | | Consolidated | $ | 16,213 | | | $ | 14,747 | | | $ | 1,343 | | | $ | 434 | | | 8.3 | % | | 2.9 | % |
(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 nine months ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Sales | | Operating Profit (Loss) | | Operating Profit (Loss) Margins | (dollars in millions) | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Collins Aerospace Systems | $ | 13,507 | | | $ | 14,914 | | | $ | 1,298 | | | $ | 1,455 | | | 9.6 | % | | 9.8 | % | Pratt & Whitney | 13,035 | | | 12,334 | | | 319 | | | (597) | | | 2.4 | % | | (4.8) | % | Raytheon Intelligence & Space | 11,310 | | | 7,136 | | | 1,194 | | | 659 | | | 10.6 | % | | 9.2 | % | Raytheon Missiles & Defense | 11,680 | | | 7,212 | | | 1,518 | | | 847 | | | 13.0 | % | | 11.7 | % | Total segment | 49,532 | | | 41,596 | | | 4,329 | | | 2,364 | | | 8.7 | % | | 5.7 | % | Eliminations and other (1) | (2,188) | | | (1,428) | | | (98) | | | (101) | | | | | | Corporate expenses and other unallocated items (2) | — | | | — | | | (319) | | | (491) | | | | | | FAS/CAS operating adjustment | — | | | — | | | 1,347 | | | 736 | | | | | | Acquisition accounting adjustments | — | | | — | | | (1,621) | | | (4,539) | | | | | | Consolidated | $ | 47,344 | | | $ | 40,168 | | | $ | 3,638 | | | $ | (2,031) | | | 7.7 | % | | (5.1) | % |
(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 September 30, 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 | $ | 2,334 | | $ | 2,367 | | $ | 2,977 | | $ | 2,414 | | $ | 4 | | $ | 10,096 | | | $ | 2,378 | | $ | 1,856 | | $ | 2,999 | | $ | 2,224 | | $ | 109 | | $ | 9,566 | | Asia Pacific | 465 | | 1,007 | | 199 | | 335 | | — | | 2,006 | | | 358 | | 772 | | 205 | | 355 | | 13 | | 1,703 | | Middle East and North Africa | 136 | | 127 | | 105 | | 772 | | — | | 1,140 | | | 97 | | 112 | | 133 | | 703 | | 10 | | 1,055 | | Europe | 1,066 | | 943 | | 107 | | 297 | | (5) | | 2,408 | | | 965 | | 572 | | 100 | | 337 | | 38 | | 2,012 | | Canada and All Other | 226 | | 281 | | 39 | | 17 | | — | | 563 | | | 165 | | 179 | | 29 | | 29 | | 9 | | 411 | | Consolidated net sales | 4,227 | | 4,725 | | 3,427 | | 3,835 | | (1) | | 16,213 | | | 3,963 | | 3,491 | | 3,466 | | 3,648 | | 179 | | 14,747 | | Inter-segment sales | 365 | | — | | 313 | | 67 | | (745) | | — | | | 311 | | 3 | | 283 | | 58 | | (655) | | — | | Business segment sales | $ | 4,592 | | $ | 4,725 | | $ | 3,740 | | $ | 3,902 | | $ | (746) | | $ | 16,213 | | | $ | 4,274 | | $ | 3,494 | | $ | 3,749 | | $ | 3,706 | | $ | (476) | | $ | 14,747 | |
Segment sales disaggregated by geographic region for the nine months ended September 30, 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 | $ | 6,899 | | $ | 6,665 | | $ | 8,962 | | $ | 7,156 | | $ | 15 | | $ | 29,697 | | | $ | 8,027 | | $ | 6,103 | | $ | 5,627 | | $ | 4,311 | | $ | 156 | | $ | 24,224 | | Asia Pacific | 1,340 | | 2,771 | | 608 | | 1,061 | | — | | 5,780 | | | 1,350 | | 2,980 | | 405 | | 701 | | 26 | | 5,462 | | Middle East and North Africa | 346 | | 316 | | 370 | | 2,267 | | — | | 3,299 | | | 339 | | 406 | | 270 | | 1,408 | | 18 | | 2,441 | | Europe | 3,207 | | 2,376 | | 339 | | 949 | | — | | 6,871 | | | 3,497 | | 2,101 | | 202 | | 628 | | 104 | | 6,532 | | Canada and All Other | 646 | | 907 | | 94 | | 50 | | — | | 1,697 | | | 651 | | 738 | | 53 | | 43 | | 24 | | 1,509 | | Consolidated net sales | 12,438 | | 13,035 | | 10,373 | | 11,483 | | 15 | | 47,344 | | | 13,864 | | 12,328 | | 6,557 | | 7,091 | | 328 | | 40,168 | | Inter-segment sales | 1,069 | | — | | 937 | | 197 | | (2,203) | | — | | | 1,050 | | 6 | | 579 | | 121 | | (1,756) | | — | | Business segment sales | $ | 13,507 | | $ | 13,035 | | $ | 11,310 | | $ | 11,680 | | $ | (2,188) | | $ | 47,344 | | | $ | 14,914 | | $ | 12,334 | | $ | 7,136 | | $ | 7,212 | | $ | (1,428) | | $ | 40,168 | |
Segment sales disaggregated by customer for the quarters ended September 30, 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) | $ | 1,101 | | $ | 1,295 | | $ | 2,923 | | $ | 2,414 | | $ | 4 | | $ | 7,737 | | | $ | 1,238 | | $ | 1,270 | | $ | 2,944 | | $ | 2,223 | | $ | 72 | | $ | 7,747 | | Foreign military sales through the U.S. government | 54 | | 322 | | 210 | | 778 | | — | | 1,364 | | | 34 | | 325 | | 201 | | 812 | | — | | 1,372 | | Foreign government direct commercial sales | 258 | | 126 | | 216 | | 642 | | — | | 1,242 | | | 230 | | 120 | | 245 | | 589 | | 2 | | 1,186 | | Commercial aerospace and other commercial | 2,814 | | 2,982 | | 78 | | 1 | | (5) | | 5,870 | | | 2,461 | | 1,776 | | 76 | | 24 | | 105 | | 4,442 | | Consolidated net sales | 4,227 | | 4,725 | | 3,427 | | 3,835 | | (1) | | 16,213 | | | 3,963 | | 3,491 | | 3,466 | | 3,648 | | 179 | | 14,747 | | Inter-segment sales | 365 | | — | | 313 | | 67 | | (745) | | — | | | 311 | | 3 | | 283 | | 58 | | (655) | | — | | Business segment sales | $ | 4,592 | | $ | 4,725 | | $ | 3,740 | | $ | 3,902 | | $ | (746) | | $ | 16,213 | | | $ | 4,274 | | $ | 3,494 | | $ | 3,749 | | $ | 3,706 | | $ | (476) | | $ | 14,747 | |
(1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by customer for the nine months ended September 30, 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) | $ | 3,470 | | $ | 3,748 | | $ | 8,767 | | $ | 7,155 | | $ | 15 | | $ | 23,155 | | | $ | 3,880 | | $ | 3,792 | | $ | 5,504 | | $ | 4,301 | | $ | 126 | | $ | 17,603 | | Foreign military sales through the U.S. government | 119 | | 961 | | 627 | | 2,449 | | — | | 4,156 | | | 166 | | 877 | | 419 | | 1,578 | | — | | 3,040 | | Foreign government direct commercial sales | 804 | | 392 | | 662 | | 1,877 | | — | | 3,735 | | | 659 | | 380 | | 458 | | 1,154 | | 2 | | 2,653 | | Commercial aerospace and other commercial | 8,045 | | 7,934 | | 317 | | 2 | | — | | 16,298 | | | 9,159 | | 7,279 | | 176 | | 58 | | 200 | | 16,872 | | Consolidated net sales | 12,438 | | 13,035 | | 10,373 | | 11,483 | | 15 | | 47,344 | | | 13,864 | | 12,328 | | 6,557 | | 7,091 | | 328 | | 40,168 | | Inter-segment sales | 1,069 | | — | | 937 | | 197 | | (2,203) | | — | | | 1,050 | | 6 | | 579 | | 121 | | (1,756) | | — | | Business segment sales | $ | 13,507 | | $ | 13,035 | | $ | 11,310 | | $ | 11,680 | | $ | (2,188) | | $ | 47,344 | | | $ | 14,914 | | $ | 12,334 | | $ | 7,136 | | $ | 7,212 | | $ | (1,428) | | $ | 40,168 | |
(1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by sales type for the quarters ended September 30, 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 | Products | $ | 3,336 | | $ | 2,877 | | $ | 2,613 | | $ | 3,506 | | $ | (1) | | $ | 12,331 | | | $ | 3,231 | | $ | 2,142 | | $ | 2,615 | | $ | 3,324 | | $ | 157 | | $ | 11,469 | | Services | 891 | | 1,848 | | 814 | | 329 | | — | | 3,882 | | | 732 | | 1,349 | | 851 | | 324 | | 22 | | 3,278 | | Consolidated net sales | 4,227 | | 4,725 | | 3,427 | | 3,835 | | (1) | | 16,213 | | | 3,963 | | 3,491 | | 3,466 | | 3,648 | | 179 | | 14,747 | | Inter-segment sales | 365 | | — | | 313 | | 67 | | (745) | | — | | | 311 | | 3 | | 283 | | 58 | | (655) | | — | | Business segment sales | $ | 4,592 | | $ | 4,725 | | $ | 3,740 | | $ | 3,902 | | $ | (746) | | $ | 16,213 | | | $ | 4,274 | | $ | 3,494 | | $ | 3,749 | | $ | 3,706 | | $ | (476) | | $ | 14,747 | |
Segment sales disaggregated by sales type for the nine months ended September 30, 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 | Products | $ | 9,867 | | $ | 7,882 | | $ | 7,964 | | $ | 10,446 | | $ | 15 | | $ | 36,174 | | | $ | 11,325 | | $ | 7,285 | | $ | 5,024 | | $ | 6,480 | | $ | 288 | | $ | 30,402 | | Services | 2,571 | | 5,153 | | 2,409 | | 1,037 | | — | | 11,170 | | | 2,539 | | 5,043 | | 1,533 | | 611 | | 40 | | 9,766 | | Consolidated net sales | 12,438 | | 13,035 | | 10,373 | | 11,483 | | 15 | | 47,344 | | | 13,864 | | 12,328 | | 6,557 | | 7,091 | | 328 | | 40,168 | | Inter-segment sales | 1,069 | | — | | 937 | | 197 | | (2,203) | | — | | | 1,050 | | 6 | | 579 | | 121 | | (1,756) | | — | | Business segment sales | $ | 13,507 | | $ | 13,035 | | $ | 11,310 | | $ | 11,680 | | $ | (2,188) | | $ | 47,344 | | | $ | 14,914 | | $ | 12,334 | | $ | 7,136 | | $ | 7,212 | | $ | (1,428) | | $ | 40,168 | |
RIS and RMD segment sales disaggregated by contract type for the quarters ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | 2021 | | 2020 | (dollars in millions) | Raytheon Intelligence & Space | Raytheon Missiles & Defense | | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Fixed-price | $ | 1,506 | | $ | 2,401 | | | $ | 1,510 | | $ | 2,337 | | Cost-type | 1,921 | | 1,434 | | | 1,956 | | 1,311 | | Consolidated net sales | 3,427 | | 3,835 | | | 3,466 | | 3,648 | | Inter-segments sales | 313 | | 67 | | | 283 | | 58 | | Business segment sales | $ | 3,740 | | $ | 3,902 | | | $ | 3,749 | | $ | 3,706 | |
RIS and RMD segment sales disaggregated by contract type for the nine months ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | 2021 | | 2020 | (dollars in millions) | Raytheon Intelligence & Space | Raytheon Missiles & Defense | | Raytheon Intelligence & Space | Raytheon Missiles & Defense | Fixed-price | $ | 4,533 | | $ | 7,054 | | | $ | 2,781 | | $ | 4,447 | | Cost-type | 5,840 | | 4,429 | | | 3,776 | | 2,644 | | Consolidated net sales | 10,373 | | 11,483 | | | 6,557 | | 7,091 | | Inter-segments sales | 937 | | 197 | | | 579 | | 121 | | Business segment sales | $ | 11,310 | | $ | 11,680 | | | $ | 7,136 | | $ | 7,212 | |
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