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Segment Financial Data
 12 Months Ended
Dec. 31, 2021
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, aviation 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 components, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, evacuation systems, landing systems, including landing gear, wheels and braking systems, hoists and winches, fire and ice detection and protection systems, actuation systems, and propeller systems. Collins Aerospace also designs, manufactures, and supports cabin interior, 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 connected aviation solutions and 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, asset management services 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 space, communication and sensor systems for advanced missions in all domains, and cyber and software solutions to intelligence, defense, federal and commercial customers. These systems and solutions include end-to-end space solutions, data processing systems, multi-domain intelligence solutions, electronic warfare solutions, including high-energy laser weapons systems, secure sensor solutions, command and control systems, modernization 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; ballistic and hypersonic missile defense systems; 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 air and missile defense system and its Lower Tier Air and Missile Defense
Sensor (LTAMDS), the first in a family of radars known as GhostEye™, as well as 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. RMD’s naval and undersea solutions include combat and ship electronic and sensing systems, as well as undersea sensing and effects solutions. Ballistic and hypersonic missile defense systems include portable radar systems and a portfolio of effectors. 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 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 sales.
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. 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. Collins Aerospace and Pratt & Whitney segments 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 and the amortization of customer contractual obligations related to loss making or below market contracts acquired. These adjustments are not considered part of management’s evaluation of segment results.
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-K 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.
Segment information for the years ended December 31 are as follows:
 Net SalesOperating Profit (Loss)Operating Profit (Loss) Margins
(dollars in millions)202120202019202120202019202120202019
Collins Aerospace Systems$18,449 $19,288 $26,028 $1,759 $1,466 $4,508 9.5 %7.6 %17.3 %
Pratt & Whitney18,150 16,799 20,902 454 (564)1,801 2.5 %(3.4)%8.6 %
Raytheon Intelligence & Space15,180 11,069 — 1,833 1,020 — 12.1 %9.2 %— %
Raytheon Missiles & Defense15,539 11,396 — 2,004 880 — 12.9 %7.7 %— %
Total segment67,318 58,552 46,930 6,050 2,802 6,309 9.0 %4.8 %13.4 %
Eliminations and other (1)
(2,930)(1,965)(1,581)(133)(107)(140)
Corporate expenses and other unallocated items (2)
— — — (552)(590)(367)
FAS/CAS operating adjustment— — — 1,796 1,106 — 
Acquisition accounting adjustments(3)
— — — (2,203)(5,100)(888)
Consolidated$64,388 $56,587 $45,349 $4,958 $(1,889)$4,914 7.7 %(3.3)%10.8 %
(1)    Includes the operating results of certain smaller non-reportable business segments. 2020 amounts include Forcepoint, LLC, which was acquired as part of the Raytheon Merger, and subsequently disposed of on January 8, 2021.
(2)    Corporate expenses and other unallocated items in 2021 and 2020 include the net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project. No amounts were recorded in 2019.
(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: Business Acquisitions, Dispositions, Goodwill and Intangible Assets” for additional information.
 Total AssetsCapital ExpendituresDepreciation & Amortization
(dollars in millions)20212020202120202019202120202019
Collins Aerospace Systems (1)
$67,564 $68,701 $665 $638 $959 $728 $736 $695 
Pratt & Whitney (1)
33,414 32,780 700 565 822 642 729 614 
Raytheon Intelligence & Space (1)
21,545 21,573 305 218 — 187 154 — 
Raytheon Missiles & Defense (1)
28,766 29,337 287 280 — 333 228 — 
Total segment151,289 152,391 1,957 1,701 1,781 1,890 1,847 1,309 
Corporate, eliminations and other10,115 9,762 177 94 87 152 155 165 
Acquisition accounting adjustments2,515 2,154 1,234 
Consolidated$161,404 $162,153 $2,134 $1,795 $1,868 $4,557 $4,156 $2,708 
(1)    Total assets include acquired intangible assets and the 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 Fixed assets, net attributed to the specific geographic regions.
 External Net SalesLong-Lived Assets
(dollars in millions)20212020201920212020
United States$55,837 $48,560 $35,125 $11,731 $11,560 
International
Europe3,630 3,696 4,419 1,255 1,371 
Asia Pacific1,748 1,574 1,989 854 893 
Middle East and North Africa136 103 203 129 137 
Other3,037 2,654 3,613 1,003 1,001 
Consolidated$64,388 $56,587 $45,349 $14,972 $14,962 
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.
Segment sales disaggregated by geographic region for the years ended December 31 are as follows:
2021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$9,341 $9,034 $12,126 $9,495 $15 $40,011 
Europe4,421 3,488 434 1,255 — 9,598 
Asia Pacific1,851 3,885 771 1,462 — 7,969 
Middle East and North Africa462 441 469 3,007 — 4,379 
Canada and All Other915 1,302 144 70 — 2,431 
Consolidated net sales16,990 18,150 13,944 15,289 15 64,388 
Inter-segment sales1,459 — 1,236 250 (2,945)— 
Business segment sales$18,449 $18,150 $15,180 $15,539 $(2,930)$64,388 
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$10,132 $8,534 $8,704 $6,906 $284 $34,560 
Europe4,643 2,726 307 1,031 149 8,856 
Asia Pacific1,810 4,024 637 1,132 41 7,644 
Middle East and North Africa421 505 410 2,077 30 3,443 
Canada and All Other904 1,001 83 73 23 2,084 
Consolidated net sales17,910 16,790 10,141 11,219 527 56,587 
Inter-segment sales1,378 9 928 177 (2,492)— 
Business segment sales$19,288 $16,799 $11,069 $11,396 $(1,965)$56,587 
2019
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$12,762 $8,622 $— $— $13 $21,397 
Europe7,051 4,327 — — — 11,378 
Asia Pacific2,473 5,462 — — — 7,935 
Middle East and North Africa693 837 — — — 1,530 
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 
Segment sales disaggregated by customer for the years ended December 31 are as follows:
2021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$4,685 $5,140 $11,844 $9,493 $15 $31,177 
Foreign military sales through the U.S. government168 1,273 825 3,280 — 5,546 
Foreign government direct commercial sales1,095 541 844 2,513 — 4,993 
Commercial aerospace and other commercial11,042 11,196 431 3 — 22,672 
Consolidated net sales16,990 18,150 13,944 15,289 15 64,388 
Inter-segment sales1,459 — 1,236 250 (2,945)— 
Business segment sales$18,449 $18,150 $15,180 $15,539 $(2,930)$64,388 
(1)    Excludes foreign military sales through the U.S. government.
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$5,159 $5,193 $8,512 $6,896 $202 $25,962 
Foreign military sales through the U.S. government218 1,229 640 2,498 — 4,585 
Foreign government direct commercial sales923 583 740 1,725 3 3,974 
Commercial aerospace and other commercial11,610 9,785 249 100 322 22,066 
Consolidated net sales17,910 16,790 10,141 11,219 527 56,587 
Inter-segment sales1,378 9 928 177 (2,492)— 
Business segment sales$19,288 $16,799 $11,069 $11,396 $(1,965)$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.
Sales to Airbus primarily relate to Pratt & Whitney and Collins Aerospace products, and prior to discounts and incentives were approximately 12%, 13% and 22% of total net sales in 2021, 2020 and 2019, respectively.
Segment sales disaggregated by sales type for the years ended December 31 are as follows:
2021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$13,404 $11,189 $10,735 $13,927 $15 $49,270 
Services3,586 6,961 3,209 1,362 — 15,118 
Consolidated net sales16,990 18,150 13,944 15,289 15 64,388 
Inter-segment sales1,459 — 1,236 250 (2,945)— 
Business segment sales$18,449 $18,150 $15,180 $15,539 $(2,930)$64,388 
2020
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$14,664 $10,186 $7,775 $10,232 $462 $43,319 
Services3,246 6,604 2,366 987 65 13,268 
Consolidated net sales17,910 16,790 10,141 11,219 527 56,587 
Inter-segment sales1,378 9 928 177 (2,492)— 
Business segment sales$19,288 $16,799 $11,069 $11,396 $(1,965)$56,587 
2019
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$19,991 $12,994 $— $— $13 $32,998 
Services4,440 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 
RIS and RMD segment sales disaggregated by contract type for the year ended December 31 are as follows:
20212020
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$6,338 $9,406 $4,526 $7,080 
Cost-type7,606 5,883 5,615 4,139 
Consolidated net sales13,944 15,289 10,141 11,219 
Inter-segment sales1,236 250 928 177 
Business segment sales$15,180 $15,539 $11,069 $11,396