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Segment Financial Data
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Financial Data
NOTE 21: SEGMENT FINANCIAL DATA
Our operations, for the periods presented herein, are classified into four principal segments: Collins, 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. The Company recently announced its intention to streamline the structure of its core businesses into three principal business segments: Collins Aerospace, Pratt & Whitney and Raytheon. The Company plans to determine the exact composition of each segment and implement the reorganization in the second half of 2023, at which time management will begin to manage its operations under its new segment structure. The changes will require the Company to revise its segment reporting. All segment information included in this Form 10-K is reflective of the existing four segments of Collins, Pratt & Whitney, RIS and RMD in accordance with the management structure in place as of December 31, 2022.
Collins Aerospace 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’ 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 also designs, manufactures, and supports cabin interior, oxygen systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Collins’ 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 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 leading provider of integrated space, communication and sensor systems, and cyber and software solutions to intelligence, defense, federal and commercial customers. RIS’s Sensing and Effects business provides intelligence, surveillance and reconnaissance, precision targeting radars, and electronic warfare solutions across all domains, as well as end-to-end space solutions, including missile warning and intelligence, weather, and navigation. RIS Sensing and Effects products include the Multi-Spectral Targeting System (MTS) product family of sensors, Electro Optical Distributed
Aperture System (EODAS), AN/APG-79 AESA Radar, AN/APG-82(V)1 AESA Radar, Next Generation Jammer Mid-Band (NGJ-MB), Global Positioning System (GPS) Next-Generation Operational Control System (GPS-OCX), Next Generation Overhead Persistent Infrared (OPIR), and Future Operationally Resilient Ground Evolution (FORGE). RIS’s Command, Control and Communications business provides automated battle management and secure, resilient communications systems, including terminals providing satellite communications connecting submarines, ships, aircraft and ground stations for the U.S. Department of Defense (DoD), identification friend or foe interrogators and transponders, and automation, surveillance, navigation, and landing solutions including the Joint Precision Approach Landing System (JPALS). RIS’s Cyber, Training and Services provides full-spectrum cyber and service solutions in every domain, including offensive and defensive cyber services for certain classified and department of defense customers, cyber protection solutions which secure and monitor information technology (IT) systems and networks across the federal and commercial domains, and high consequence missions which provide classified special mission support and IT intelligence services to certain classified customers.
Raytheon Missiles & Defense is a leading provider of end-to-end solutions for U.S. and foreign government customers designed to detect, track and engage threats. RMD’s systems span air, land, sea and space, and are designed to defend against the most sophisticated threats. RMD’s Air Power business provides air-to-air and air-to-ground weapons that deliver power and precision to fourth- and fifth-generation fighters including the Advanced Medium Range Air-to-Air Missile (AMRAAM) and StormBreaker smart weapon, and ground-based sensors for persistent wide-area defense and space surveillance including Early Warning Radar. RMD’s Land Warfare and Air Defense business provides capabilities ranging from precision weapons including Excalibur, Javelin, Stinger and TOW to integrated air and missile defense, including the proven Patriot air and missile defense system, the Guidance Enhanced Missile (GEM-T), the National Advanced Surface-to-Air Missile System (NASAMS) and the GhostEye family of radars, including the Lower Tier Air and Missile Defense Sensor (LTAMDS). RMD’s Naval Power business provides advanced sensors, command and control and weapons to protect ships and sailors around the world, including AIM-9X Sidewinder, Tomahawk, Standard Missile 2 (SM-2) and Standard Missile 6 (SM-6) missiles, and the SPY-6 family of radars. RMD’s Strategic Missile Defense business provides technologically advanced sensors, satellites and interceptors including the AN/TPY-2 radar, Standard Missile 3 (SM-3) Block IA/IB/IIA missiles and development of future integrated missile defense solutions. RMD’s Advanced Technology business focuses on the development and early introduction of next-generation technologies and systems, including hypersonics, counter-hypersonics, directed energy, advanced weapons and next-generation radars.
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 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. These adjustments are not considered part of management’s evaluation of segment results.
Segment information for the years ended December 31 are as follows:
 Net SalesOperating Profit (Loss)Operating Profit (Loss) Margins
(dollars in millions)202220212020202220212020202220212020
Collins Aerospace$20,597 $18,449 $19,288 $2,343 $1,759 $1,466 11.4 %9.5 %7.6 %
Pratt & Whitney20,530 18,150 16,799 1,075 454 (564)5.2 %2.5 %(3.4)%
Raytheon Intelligence & Space14,312 15,180 11,069 1,342 1,833 1,020 9.4 %12.1 %9.2 %
Raytheon Missiles & Defense14,863 15,539 11,396 1,519 2,004 880 10.2 %12.9 %7.7 %
Total segment70,302 67,318 58,552 6,279 6,050 2,802 8.9 %9.0 %4.8 %
Eliminations and other (1)
(3,228)(2,930)(1,965)(174)(133)(107)
Corporate expenses and other unallocated items (2)
— — — (318)(552)(590)
FAS/CAS operating adjustment— — — 1,520 1,796 1,106 
Acquisition accounting adjustments(3)
— — — (1,893)(2,203)(5,100)
Consolidated$67,074 $64,388 $56,587 $5,414 $4,958 $(1,889)8.1 %7.7 %(3.3)%
(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)    Includes the net expenses related to the U.S. Army’s LTAMDS project.
(3)    Operating profit (loss) in 2020 includes the $3.2 billion goodwill impairment charge in the second quarter of 2020 related to two Collins reporting units. Refer to “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets” for additional information.
 Total AssetsCapital ExpendituresDepreciation & Amortization
(dollars in millions)20222021202220212020202220212020
Collins Aerospace (1)
$67,030 $67,564 $655 $665 $638 $742 $728 $736 
Pratt & Whitney (1)
36,205 33,414 949 700 565 724 642 729 
Raytheon Intelligence & Space (1)
21,174 21,545 320 305 218 209 187 154 
Raytheon Missiles & Defense (1)
27,852 28,766 260 287 280 333 333 228 
Total segment152,261 151,289 2,184 1,957 1,701 2,008 1,890 1,847 
Corporate, eliminations and other6,603 10,115 104 177 94 99 152 155 
Acquisition accounting adjustments2,001 2,515 2,154 
Consolidated$158,864 $161,404 $2,288 $2,134 $1,795 $4,108 $4,557 $4,156 
(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)20222021202020222021
United States$57,869 $55,837 $48,560 $12,162 $11,731 
International
Europe3,874 3,630 3,696 1,132 1,255 
Asia Pacific1,778 1,748 1,574 801 854 
Middle East and North Africa173 136 103 113 129 
Other3,380 3,037 2,654 962 1,003 
Consolidated$67,074 $64,388 $56,587 $15,170 $14,972 
Disaggregation of Revenue. We also disaggregate our contracts from customers by geographic region based on customer location, by 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, 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:
2022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$9,847 $10,433 $11,418 $9,482 $10 $41,190 
Europe5,374 4,211 418 1,108 — 11,111 
Asia Pacific2,021 3,775 747 1,514 — 8,057 
Middle East and North Africa474 450 231 2,444 — 3,599 
Other1,240 1,658 141 78 — 3,117 
Consolidated net sales18,956 20,527 12,955 14,626 10 67,074 
Inter-segment sales1,641 3 1,357 237 (3,238)— 
Business segment sales$20,597 $20,530 $14,312 $14,863 $(3,228)$67,074 
2021
(dollars in millions)Collins AerospacePratt & 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 
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 AerospacePratt & 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 
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 
Segment sales disaggregated by type of customer for the years ended December 31 are as follows:
2022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$4,337 $5,272 $11,221 $9,477 $10 $30,317 
Foreign military sales through the U.S. government238 1,115 604 3,085 — 5,042 
Foreign government direct commercial sales978 474 827 2,048 — 4,327 
Commercial aerospace and other commercial13,403 13,666 303 16 — 27,388 
Consolidated net sales18,956 20,527 12,955 14,626 10 67,074 
Inter-segment sales1,641 3 1,357 237 (3,238)— 
Business segment sales$20,597 $20,530 $14,312 $14,863 $(3,228)$67,074 
(1)    Excludes foreign military sales through the U.S. government.
2021
(dollars in millions)Collins AerospacePratt & 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 AerospacePratt & 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.
Sales to Airbus primarily relate to Pratt & Whitney and Collins products, and prior to discounts and incentives were approximately 14%, 12% and 13% of total net sales in 2022, 2021 and 2020, respectively.
Segment sales disaggregated by sales type for the years ended December 31 are as follows:
2022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$14,857 $12,411 $10,261 $13,234 $10 $50,773 
Services4,099 8,116 2,694 1,392 — 16,301 
Consolidated net sales18,956 20,527 12,955 14,626 10 67,074 
Inter-segment sales1,641 3 1,357 237 (3,238)— 
Business segment sales$20,597 $20,530 $14,312 $14,863 $(3,228)$67,074 
2021
(dollars in millions)Collins AerospacePratt & 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 AerospacePratt & 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 
RIS and RMD segment sales disaggregated by contract type for the years ended December 31 are as follows:
202220212020
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$5,357 $8,763 $6,338 $9,406 $4,526 $7,080 
Cost-type7,598 5,863 7,606 5,883 5,615 4,139 
Consolidated net sales12,955 14,626 13,944 15,289 10,141 11,219 
Inter-segment sales1,357 237 1,236 250 928 177 
Business segment sales$14,312 $14,863 $15,180 $15,539 $11,069 $11,396