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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
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95-1778500
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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Title of Each Class
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Trading Symbol
|
Name of Each Exchange on Which Registered
|
||
Common Stock, $0.01 par value
|
RTN
|
New York Stock Exchange
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Large Accelerated Filer
|
|
☒
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Accelerated Filer
|
|
☐
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Non-accelerated Filer
|
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☐
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Smaller Reporting Company
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☐
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Emerging Growth Company
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☐
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Page
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PART I
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Item 1.
|
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 1.
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||
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Item 1A.
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||
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Item 2.
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Item 6.
|
||
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|
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(In millions, except per share amounts)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,173
|
|
|
$
|
3,608
|
|
Receivables, net
|
|
1,607
|
|
|
1,648
|
|
||
Contract assets
|
|
6,130
|
|
|
5,594
|
|
||
Inventories
|
|
932
|
|
|
758
|
|
||
Prepaid expenses and other current assets
|
|
684
|
|
|
529
|
|
||
Total current assets
|
|
11,526
|
|
|
12,137
|
|
||
Property, plant and equipment, net
|
|
2,982
|
|
|
2,840
|
|
||
Operating lease right-of-use assets
|
|
888
|
|
|
805
|
|
||
Goodwill
|
|
14,882
|
|
|
14,864
|
|
||
Other assets, net
|
|
1,908
|
|
|
2,024
|
|
||
Total assets
|
|
$
|
32,186
|
|
|
$
|
32,670
|
|
|
|
|
|
|
||||
Liabilities, Redeemable Noncontrolling Interests and Equity
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Commercial paper and current portion of long-term debt
|
|
$
|
800
|
|
|
$
|
300
|
|
Contract liabilities
|
|
2,944
|
|
|
3,309
|
|
||
Accounts payable
|
|
1,368
|
|
|
1,964
|
|
||
Accrued employee compensation
|
|
1,361
|
|
|
1,509
|
|
||
Other current liabilities
|
|
1,398
|
|
|
1,381
|
|
||
Total current liabilities
|
|
7,871
|
|
|
8,463
|
|
||
Accrued retiree benefits and other long-term liabilities
|
|
6,699
|
|
|
6,922
|
|
||
Long-term debt
|
|
4,257
|
|
|
4,755
|
|
||
Operating lease liabilities
|
|
720
|
|
|
647
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Redeemable noncontrolling interests
|
|
435
|
|
|
411
|
|
||
|
|
|
|
|
||||
Equity
|
|
|
|
|
|
|
||
Raytheon Company stockholders’ equity
|
|
|
|
|
|
|
||
Common stock, par value, $0.01 per share, 1,450 shares authorized, 278 and 282 shares outstanding at June 30, 2019 and December 31, 2018, respectively
|
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
|
—
|
|
|
—
|
|
||
Accumulated other comprehensive loss
|
|
(8,182
|
)
|
|
(8,618
|
)
|
||
Retained earnings
|
|
20,383
|
|
|
20,087
|
|
||
Total Raytheon Company stockholders’ equity
|
|
12,204
|
|
|
11,472
|
|
||
Noncontrolling interests in subsidiaries
|
|
—
|
|
|
—
|
|
||
Total equity
|
|
12,204
|
|
|
11,472
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
|
$
|
32,186
|
|
|
$
|
32,670
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except per share amounts)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Net sales
|
|
|
|
|
|
|
|
|
||||||||
Products
|
|
$
|
5,994
|
|
|
$
|
5,507
|
|
|
$
|
11,556
|
|
|
$
|
10,761
|
|
Services
|
|
1,165
|
|
|
1,118
|
|
|
2,332
|
|
|
2,131
|
|
||||
Total net sales
|
|
7,159
|
|
|
6,625
|
|
|
13,888
|
|
|
12,892
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales—products
|
|
4,302
|
|
|
3,903
|
|
|
8,304
|
|
|
7,640
|
|
||||
Cost of sales—services
|
|
903
|
|
|
874
|
|
|
1,778
|
|
|
1,669
|
|
||||
General and administrative expenses
|
|
778
|
|
|
748
|
|
|
1,517
|
|
|
1,442
|
|
||||
Total operating expenses
|
|
5,983
|
|
|
5,525
|
|
|
11,599
|
|
|
10,751
|
|
||||
Operating income
|
|
1,176
|
|
|
1,100
|
|
|
2,289
|
|
|
2,141
|
|
||||
Non-operating (income) expense, net
|
|
|
|
|
|
|
|
|
||||||||
Retirement benefits non-service expense
|
|
181
|
|
|
238
|
|
|
362
|
|
|
477
|
|
||||
Interest expense
|
|
45
|
|
|
46
|
|
|
89
|
|
|
93
|
|
||||
Interest income
|
|
(7
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|
(15
|
)
|
||||
Other (income) expense, net
|
|
(8
|
)
|
|
(3
|
)
|
|
(28
|
)
|
|
2
|
|
||||
Total non-operating (income) expense, net
|
|
211
|
|
|
273
|
|
|
403
|
|
|
557
|
|
||||
Income from continuing operations before taxes
|
|
965
|
|
|
827
|
|
|
1,886
|
|
|
1,584
|
|
||||
Federal and foreign income taxes
|
|
152
|
|
|
37
|
|
|
298
|
|
|
170
|
|
||||
Income from continuing operations
|
|
813
|
|
|
790
|
|
|
1,588
|
|
|
1,414
|
|
||||
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
|
813
|
|
|
791
|
|
|
1,588
|
|
|
1,414
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries
|
|
(4
|
)
|
|
(9
|
)
|
|
(10
|
)
|
|
(19
|
)
|
||||
Net income attributable to Raytheon Company
|
|
$
|
817
|
|
|
$
|
800
|
|
|
$
|
1,598
|
|
|
$
|
1,433
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
|
$
|
2.92
|
|
|
$
|
2.78
|
|
|
$
|
5.69
|
|
|
$
|
4.98
|
|
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
|
2.92
|
|
|
2.78
|
|
|
5.69
|
|
|
4.98
|
|
||||
Diluted earnings per share attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
|
$
|
2.92
|
|
|
$
|
2.78
|
|
|
$
|
5.69
|
|
|
$
|
4.98
|
|
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
|
2.92
|
|
|
2.78
|
|
|
5.69
|
|
|
4.97
|
|
||||
Amounts attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
|
$
|
817
|
|
|
$
|
799
|
|
|
$
|
1,598
|
|
|
$
|
1,433
|
|
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
|
$
|
817
|
|
|
$
|
800
|
|
|
$
|
1,598
|
|
|
$
|
1,433
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
Jun 30, 2019
|
|
|
Jul 1, 2018
|
|
|
Jun 30, 2019
|
|
|
Jul 1, 2018
|
|
||||
Net income
|
$
|
813
|
|
|
$
|
791
|
|
|
$
|
1,588
|
|
|
$
|
1,414
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
||||||||
Pension and other postretirement benefit plans, net:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Amortization of net actuarial loss
|
274
|
|
|
346
|
|
|
550
|
|
|
693
|
|
||||
Pension and other postretirement benefit plans, net
|
276
|
|
|
348
|
|
|
553
|
|
|
696
|
|
||||
Foreign exchange translation
|
(6
|
)
|
|
(43
|
)
|
|
2
|
|
|
(19
|
)
|
||||
Cash flow hedges
|
8
|
|
|
—
|
|
|
(2
|
)
|
|
(10
|
)
|
||||
Unrealized gains (losses) on investments and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income (loss), before tax
|
278
|
|
|
305
|
|
|
553
|
|
|
667
|
|
||||
Income tax benefit (expense) related to items of other comprehensive income (loss)
|
(61
|
)
|
|
(73
|
)
|
|
(117
|
)
|
|
(144
|
)
|
||||
Other comprehensive income (loss), net of tax
|
217
|
|
|
232
|
|
|
436
|
|
|
523
|
|
||||
Reclassification of stranded tax effects
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,451
|
)
|
||||
Total comprehensive income (loss)
|
1,030
|
|
|
1,023
|
|
|
2,024
|
|
|
486
|
|
||||
Less: Comprehensive income (loss) attributable to noncontrolling interests in subsidiaries
|
(4
|
)
|
|
(9
|
)
|
|
(10
|
)
|
|
(19
|
)
|
||||
Comprehensive income attributable to Raytheon Company
|
$
|
1,034
|
|
|
$
|
1,032
|
|
|
$
|
2,034
|
|
|
$
|
505
|
|
(In millions)
|
|
Common stock
|
|
|
Additional paid-in capital
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
Retained earnings
|
|
|
Total Raytheon Company stockholders’ equity
|
|
|
Noncontrolling interests in subsidiaries(1)
|
|
|
Total equity
|
|
|||||||
Balance at March 31, 2019
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,399
|
)
|
|
$
|
20,104
|
|
|
$
|
11,708
|
|
|
$
|
—
|
|
|
$
|
11,708
|
|
Net income (loss)
|
|
|
|
|
|
|
|
817
|
|
|
817
|
|
|
—
|
|
|
817
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
217
|
|
|
|
|
217
|
|
|
|
|
217
|
|
|||||||||||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
|
|
|
|
|
|
(7
|
)
|
|
(7
|
)
|
|
|
|
(7
|
)
|
|||||||||||
Dividends declared
|
|
|
|
—
|
|
|
|
|
(264
|
)
|
|
(264
|
)
|
|
|
|
(264
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
33
|
|
|
|
|
|
|
33
|
|
|
|
|
33
|
|
|||||||||||
Share repurchases
|
|
|
|
(33
|
)
|
|
|
|
(267
|
)
|
|
(300
|
)
|
|
|
|
(300
|
)
|
||||||||||
Balance at June 30, 2019
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,182
|
)
|
|
$
|
20,383
|
|
|
$
|
12,204
|
|
|
$
|
—
|
|
|
$
|
12,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2018
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,618
|
)
|
|
$
|
20,087
|
|
|
$
|
11,472
|
|
|
$
|
—
|
|
|
$
|
11,472
|
|
Net income (loss)
|
|
|
|
|
|
|
|
1,598
|
|
|
1,598
|
|
|
—
|
|
|
1,598
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
436
|
|
|
|
|
436
|
|
|
|
|
436
|
|
|||||||||||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|||||||||||
Dividends declared
|
|
|
|
1
|
|
|
|
|
(529
|
)
|
|
(528
|
)
|
|
|
|
(528
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
94
|
|
|
|
|
|
|
94
|
|
|
|
|
94
|
|
|||||||||||
Share repurchases
|
|
|
|
(95
|
)
|
|
|
|
(771
|
)
|
|
(866
|
)
|
|
|
|
(866
|
)
|
||||||||||
Balance at June 30, 2019
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,182
|
)
|
|
$
|
20,383
|
|
|
$
|
12,204
|
|
|
$
|
—
|
|
|
$
|
12,204
|
|
(1)
|
Excludes redeemable noncontrolling interests which are not considered equity. See “Note 14: Redeemable Noncontrolling Interests” for additional information.
|
(In millions)
|
|
Common stock
|
|
|
Additional paid-in capital
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
Retained earnings
|
|
|
Total Raytheon Company stockholders’ equity
|
|
|
Noncontrolling interests in subsidiaries(1)
|
|
|
Total equity
|
|
|||||||
Balance at April 1, 2018
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(9,095
|
)
|
|
$
|
19,329
|
|
|
$
|
10,237
|
|
|
$
|
—
|
|
|
$
|
10,237
|
|
Net income (loss)
|
|
|
|
|
|
|
|
800
|
|
|
800
|
|
|
—
|
|
|
800
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
232
|
|
|
|
|
232
|
|
|
|
|
232
|
|
|||||||||||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
|
|
|
|
|
|
(30
|
)
|
|
(30
|
)
|
|
|
|
(30
|
)
|
|||||||||||
Dividends declared
|
|
|
|
—
|
|
|
|
|
(248
|
)
|
|
(248
|
)
|
|
|
|
(248
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
35
|
|
|
|
|
|
|
35
|
|
|
|
|
35
|
|
|||||||||||
Share repurchases
|
|
|
|
(35
|
)
|
|
|
|
(384
|
)
|
|
(419
|
)
|
|
|
|
(419
|
)
|
||||||||||
Balance at July 1, 2018
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,863
|
)
|
|
$
|
19,467
|
|
|
$
|
10,607
|
|
|
$
|
—
|
|
|
$
|
10,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2017
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(7,935
|
)
|
|
$
|
17,895
|
|
|
$
|
9,963
|
|
|
$
|
—
|
|
|
$
|
9,963
|
|
Net income (loss)
|
|
|
|
|
|
|
|
1,433
|
|
|
1,433
|
|
|
—
|
|
|
1,433
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
523
|
|
|
|
|
523
|
|
|
|
|
523
|
|
|||||||||||
Reclassification of stranded tax effects
|
|
|
|
|
|
(1,451
|
)
|
|
1,451
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
|
|
|
|
|
|
(19
|
)
|
|
(19
|
)
|
|
|
|
(19
|
)
|
|||||||||||
Dividends declared
|
|
|
|
1
|
|
|
|
|
(500
|
)
|
|
(499
|
)
|
|
|
|
(499
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
97
|
|
|
|
|
|
|
97
|
|
|
|
|
97
|
|
|||||||||||
Share repurchases
|
|
|
|
(98
|
)
|
|
|
|
(793
|
)
|
|
(891
|
)
|
|
|
|
(891
|
)
|
||||||||||
Balance at July 1, 2018
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(8,863
|
)
|
|
$
|
19,467
|
|
|
$
|
10,607
|
|
|
$
|
—
|
|
|
$
|
10,607
|
|
(1)
|
Excludes redeemable noncontrolling interests which are not considered equity. See “Note 14: Redeemable Noncontrolling Interests” for additional information.
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
1,588
|
|
|
$
|
1,414
|
|
(Income) loss from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
||
Income from continuing operations
|
|
1,588
|
|
|
1,414
|
|
||
Adjustments to reconcile to net cash provided by (used in) operating activities from continuing operations, net of the effect of acquisitions and divestitures
|
|
|
|
|
||||
Depreciation and amortization
|
|
291
|
|
|
274
|
|
||
Stock-based compensation
|
|
91
|
|
|
101
|
|
||
Deferred income taxes
|
|
3
|
|
|
8
|
|
||
Changes in assets and liabilities
|
|
|
|
|
||||
Receivables, net
|
|
53
|
|
|
7
|
|
||
Contract assets and contract liabilities
|
|
(865
|
)
|
|
(442
|
)
|
||
Inventories
|
|
(174
|
)
|
|
(133
|
)
|
||
Prepaid expenses and other current assets
|
|
(17
|
)
|
|
62
|
|
||
Income taxes receivable/payable
|
|
(203
|
)
|
|
168
|
|
||
Accounts payable
|
|
(502
|
)
|
|
(73
|
)
|
||
Accrued employee compensation
|
|
(157
|
)
|
|
(98
|
)
|
||
Other current liabilities
|
|
17
|
|
|
(70
|
)
|
||
Accrued retiree benefits
|
|
365
|
|
|
239
|
|
||
Other, net
|
|
(78
|
)
|
|
(18
|
)
|
||
Net cash provided by (used in) operating activities from continuing operations
|
|
412
|
|
|
1,439
|
|
||
Net cash provided by (used in) operating activities from discontinued operations
|
|
—
|
|
|
1
|
|
||
Net cash provided by (used in) operating activities
|
|
412
|
|
|
1,440
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Additions to property, plant and equipment
|
|
(438
|
)
|
|
(366
|
)
|
||
Additions to capitalized internal-use software
|
|
(25
|
)
|
|
(28
|
)
|
||
Maturities of short-term investments
|
|
—
|
|
|
309
|
|
||
Payments for purchases of acquired companies, net of cash received
|
|
(8
|
)
|
|
—
|
|
||
Proceeds from sale of business, net of transaction costs
|
|
—
|
|
|
11
|
|
||
Other
|
|
2
|
|
|
(3
|
)
|
||
Net cash provided by (used in) investing activities
|
|
(469
|
)
|
|
(77
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Dividends paid
|
|
(510
|
)
|
|
(480
|
)
|
||
Net borrowings (payments) on commercial paper
|
|
—
|
|
|
—
|
|
||
Repurchases of common stock under share repurchase programs
|
|
(800
|
)
|
|
(800
|
)
|
||
Repurchases of common stock to satisfy tax withholding obligations
|
|
(66
|
)
|
|
(91
|
)
|
||
Other
|
|
(5
|
)
|
|
(5
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(1,381
|
)
|
|
(1,376
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
(1,438
|
)
|
|
(13
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of the year
|
|
3,624
|
|
|
3,115
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
2,186
|
|
|
$
|
3,102
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except per share amounts)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Operating income
|
$
|
123
|
|
|
$
|
129
|
|
|
$
|
246
|
|
|
$
|
244
|
|
Income from continuing operations attributable to Raytheon Company
|
97
|
|
|
102
|
|
|
194
|
|
|
193
|
|
||||
Diluted earnings per share (EPS) from continuing operations attributable to Raytheon Company
|
$
|
0.35
|
|
|
$
|
0.35
|
|
|
$
|
0.69
|
|
|
$
|
0.67
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Basic EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
|
$
|
0.94
|
|
|
$
|
0.86
|
|
|
$
|
1.88
|
|
|
$
|
1.73
|
|
Undistributed earnings
|
|
1.98
|
|
|
1.92
|
|
|
3.81
|
|
|
3.25
|
|
||||
Total
|
|
$
|
2.92
|
|
|
$
|
2.78
|
|
|
$
|
5.69
|
|
|
$
|
4.98
|
|
Diluted EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
|
$
|
0.94
|
|
|
$
|
0.86
|
|
|
$
|
1.88
|
|
|
$
|
1.73
|
|
Undistributed earnings
|
|
1.98
|
|
|
1.92
|
|
|
3.81
|
|
|
3.25
|
|
||||
Total
|
|
$
|
2.92
|
|
|
$
|
2.78
|
|
|
$
|
5.69
|
|
|
$
|
4.98
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Income from continuing operations attributable to participating securities
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
16
|
|
|
$
|
15
|
|
Income (loss) from discontinued operations, net of tax attributable to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income attributable to participating securities
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
16
|
|
|
$
|
15
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Shares for basic EPS(1)
|
279.7
|
|
|
287.3
|
|
|
280.8
|
|
|
287.9
|
|
Effect of dilutive securities
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
Shares for diluted EPS
|
279.9
|
|
|
287.6
|
|
|
281.0
|
|
|
288.2
|
|
(1)
|
Includes 2.7 million and 2.9 million participating securities in the second quarters of 2019 and 2018, respectively, and 2.7 million and 3.0 million participating securities in the first six months of 2019 and 2018, respectively.
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Materials and purchased parts
|
|
$
|
76
|
|
|
$
|
75
|
|
Work in process
|
|
834
|
|
|
662
|
|
||
Finished goods
|
|
22
|
|
|
21
|
|
||
Total
|
|
$
|
932
|
|
|
$
|
758
|
|
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Contract assets
|
|
$
|
6,130
|
|
|
$
|
5,594
|
|
|
$
|
536
|
|
|
10
|
%
|
Contract liabilities—current
|
|
(2,944
|
)
|
|
(3,309
|
)
|
|
365
|
|
|
11
|
%
|
|||
Contract liabilities—noncurrent
|
|
(139
|
)
|
|
(150
|
)
|
|
11
|
|
|
7
|
%
|
|||
Net contract assets (liabilities)
|
|
$
|
3,047
|
|
|
$
|
2,135
|
|
|
$
|
912
|
|
|
43
|
%
|
(In millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint(1)
|
|
|
Total
|
|
||||||
Balance at December 31, 2018
|
|
$
|
1,704
|
|
|
$
|
2,965
|
|
|
$
|
4,154
|
|
|
$
|
4,103
|
|
|
$
|
1,938
|
|
|
$
|
14,864
|
|
Acquisitions
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Effect of foreign exchange rates and other
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Balance at June 30, 2019
|
|
$
|
1,703
|
|
|
$
|
2,984
|
|
|
$
|
4,154
|
|
|
$
|
4,103
|
|
|
$
|
1,938
|
|
|
$
|
14,882
|
|
(1)
|
At June 30, 2019, Forcepoint’s fair value was estimated to exceed its net book value by approximately $900 million. As discussed in “Note 14: Redeemable Noncontrolling Interests,” we are required to determine Forcepoint’s fair value on a quarterly basis due to the accounting related to the redeemable noncontrolling interest.
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Asset derivatives related to foreign currency forward contracts
|
|
$
|
26
|
|
|
$
|
26
|
|
Liability derivatives related to foreign currency forward contracts
|
|
30
|
|
|
34
|
|
||
Liability derivatives related to treasury rate lock contracts
|
|
7
|
|
|
—
|
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Carrying value of long-term debt(1)
|
|
$
|
4,757
|
|
|
$
|
4,755
|
|
Fair value of long-term debt(2)
|
|
5,256
|
|
|
5,063
|
|
(1)
|
Carrying value of long-term debt at June 30, 2019 includes current portion of long-term debt carrying value of $500 million.
|
(2)
|
Fair value of long-term debt at June 30, 2019 includes current portion of long-term debt fair value of $507 million.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Operating lease cost
|
|
$
|
60
|
|
|
$
|
58
|
|
|
$
|
113
|
|
|
$
|
116
|
|
Variable lease cost(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sublease income
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Total lease cost
|
|
$
|
59
|
|
|
$
|
56
|
|
|
$
|
112
|
|
|
$
|
114
|
|
(1)
|
Variable lease cost was expense of less than $1 million in the second quarters and first six months of 2019 and 2018.
|
(1)
|
Total future lease payments excluded $20 million of future lease payments related to leases that were signed but had not yet commenced as of June 30, 2019.
|
(In millions)
|
|
|
||
Operating lease liabilities—current
|
|
$
|
207
|
|
Operating lease liabilities—noncurrent
|
|
720
|
|
|
Total lease liabilities
|
|
$
|
927
|
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Cash paid for amounts included in the measurement of operating lease liabilities
|
|
$
|
122
|
|
|
$
|
124
|
|
Right-of-use assets obtained in exchange for new operating lease obligations
|
|
173
|
|
|
106
|
|
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Total remediation costs—undiscounted
|
|
$
|
193
|
|
|
$
|
193
|
|
Weighted-average discount rate
|
|
5.1
|
%
|
|
5.1
|
%
|
||
Total remediation costs—discounted
|
|
$
|
131
|
|
|
$
|
128
|
|
Recoverable portion
|
|
86
|
|
|
82
|
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Guarantees
|
|
$
|
222
|
|
|
$
|
201
|
|
Letters of credit
|
|
2,260
|
|
|
2,503
|
|
||
Surety bonds
|
|
74
|
|
|
166
|
|
(In millions)
|
|
Forcepoint
|
|
|
RGNext
|
|
|
Total
|
|
|||
Balance at March 31, 2019
|
|
$
|
399
|
|
|
$
|
33
|
|
|
$
|
432
|
|
Net income (loss)
|
|
(5
|
)
|
|
1
|
|
|
(4
|
)
|
|||
Other comprehensive income (loss), net of tax(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjustment of noncontrolling interests to redemption value
|
|
7
|
|
|
—
|
|
|
7
|
|
|||
Balance at June 30, 2019
|
|
$
|
401
|
|
|
$
|
34
|
|
|
$
|
435
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
|
$
|
411
|
|
|
$
|
—
|
|
|
$
|
411
|
|
RGNext initial recognition
|
|
—
|
|
|
32
|
|
|
32
|
|
|||
Net income (loss)
|
|
(12
|
)
|
|
2
|
|
|
(10
|
)
|
|||
Other comprehensive income (loss), net of tax(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjustment of noncontrolling interests to redemption value
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Balance at June 30, 2019
|
|
$
|
401
|
|
|
$
|
34
|
|
|
$
|
435
|
|
|
|
|
|
|
|
|
||||||
Balance at April 1, 2018
|
|
$
|
492
|
|
|
$
|
—
|
|
|
$
|
492
|
|
Net income (loss)
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||
Other comprehensive income (loss), net of tax
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Adjustment of noncontrolling interests to redemption value
|
|
30
|
|
|
—
|
|
|
30
|
|
|||
Balance at July 1, 2018
|
|
$
|
512
|
|
|
$
|
—
|
|
|
$
|
512
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2017
|
|
$
|
512
|
|
|
$
|
—
|
|
|
$
|
512
|
|
Net income (loss)
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||
Other comprehensive income (loss), net of tax(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjustment of noncontrolling interests to redemption value
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
Balance at July 1, 2018
|
|
$
|
512
|
|
|
$
|
—
|
|
|
$
|
512
|
|
(1)
|
Other comprehensive income (loss), net of tax, related to Forcepoint was a loss of less than $1 million and income of less than $1 million for the second quarter and first six months of 2019, respectively, and a loss of less than $1 million for the first six months of 2018.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Beginning balance
|
|
280.1
|
|
|
287.2
|
|
|
282.1
|
|
|
288.4
|
|
Stock plans activity
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.0
|
|
Share repurchases
|
|
(1.7
|
)
|
|
(2.0
|
)
|
|
(4.8
|
)
|
|
(4.2
|
)
|
Ending balance
|
|
278.4
|
|
|
285.2
|
|
|
278.4
|
|
|
285.2
|
|
|
|
Three Months Ended
|
||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
|
|
$
|
Shares
|
|
|
$
|
Shares
|
|
||||
Shares repurchased under our share repurchase programs
|
|
$
|
300
|
|
1.7
|
|
|
$
|
400
|
|
1.9
|
|
Shares repurchased to satisfy tax withholding obligations
|
|
—
|
|
—
|
|
|
19
|
|
0.1
|
|
||
Total share repurchases
|
|
$
|
300
|
|
1.7
|
|
|
$
|
419
|
|
2.0
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended
|
||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
|
|
$
|
Shares
|
|
|
$
|
Shares
|
|
||||
Shares repurchased under our share repurchase programs
|
|
$
|
800
|
|
4.4
|
|
|
$
|
800
|
|
3.8
|
|
Shares repurchased to satisfy tax withholding obligations
|
|
66
|
|
0.4
|
|
|
91
|
|
0.4
|
|
||
Total share repurchases
|
|
$
|
866
|
|
4.8
|
|
|
$
|
891
|
|
4.2
|
|
|
Pension and PRB plans, net(1)
|
|
|
Foreign exchange translation
|
|
|
Cash flow hedges(2)
|
|
|
Unrealized gains (losses) on investments and other, net(3)
|
|
|
Total
|
|
|||||
|
|
|
|
|
|||||||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2018
|
$
|
(8,483
|
)
|
|
$
|
(131
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(8,618
|
)
|
Before tax amount
|
553
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
553
|
|
|||||
Tax (expense) or benefit
|
(116
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(117
|
)
|
|||||
Net of tax amount
|
437
|
|
|
2
|
|
|
(3
|
)
|
|
—
|
|
|
436
|
|
|||||
Balance at June 30, 2019
|
$
|
(8,046
|
)
|
|
$
|
(129
|
)
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
$
|
(8,182
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
$
|
(7,843
|
)
|
|
$
|
(95
|
)
|
|
$
|
6
|
|
|
$
|
(3
|
)
|
|
$
|
(7,935
|
)
|
Before tax amount
|
696
|
|
|
(19
|
)
|
|
(10
|
)
|
|
—
|
|
|
667
|
|
|||||
Tax (expense) or benefit
|
(146
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(144
|
)
|
|||||
Net of tax amount
|
550
|
|
|
(19
|
)
|
|
(8
|
)
|
|
—
|
|
|
523
|
|
|||||
Reclassification of stranded tax effects
|
(1,452
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1,451
|
)
|
|||||
Balance at July 1, 2018
|
$
|
(8,745
|
)
|
|
$
|
(114
|
)
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
(8,863
|
)
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Marketable securities held in trust
|
|
$
|
686
|
|
|
$
|
642
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Operating expense
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
104
|
|
|
$
|
128
|
|
|
$
|
209
|
|
|
$
|
255
|
|
Non-operating expense
|
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
|
261
|
|
|
252
|
|
|
522
|
|
|
505
|
|
||||
Expected return on plan assets
|
|
(360
|
)
|
|
(363
|
)
|
|
(719
|
)
|
|
(726
|
)
|
||||
Amortization of prior service cost
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Amortization of net actuarial loss
|
|
273
|
|
|
344
|
|
|
546
|
|
|
688
|
|
||||
Total pension non-service expense
|
|
176
|
|
|
235
|
|
|
352
|
|
|
470
|
|
||||
Net periodic pension expense (income)
|
|
$
|
280
|
|
|
$
|
363
|
|
|
$
|
561
|
|
|
$
|
725
|
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Long-term pension liabilities
|
|
$
|
5,922
|
|
|
$
|
6,111
|
|
Long-term PRB liabilities
|
|
352
|
|
|
354
|
|
||
Total long-term pension and PRB liabilities
|
|
$
|
6,274
|
|
|
$
|
6,465
|
|
|
Six Months Ended
|
||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Required pension contributions
|
$
|
196
|
|
|
$
|
488
|
|
PRB contributions
|
11
|
|
|
9
|
|
||
Total
|
$
|
207
|
|
|
$
|
497
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Total Net Sales (in millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
$
|
1,641
|
|
|
$
|
1,514
|
|
|
$
|
3,191
|
|
|
$
|
3,003
|
|
Intelligence, Information and Services
|
1,777
|
|
|
1,687
|
|
|
3,554
|
|
|
3,269
|
|
||||
Missile Systems
|
2,210
|
|
|
2,051
|
|
|
4,216
|
|
|
3,899
|
|
||||
Space and Airborne Systems
|
1,817
|
|
|
1,605
|
|
|
3,470
|
|
|
3,173
|
|
||||
Forcepoint
|
156
|
|
|
148
|
|
|
314
|
|
|
289
|
|
||||
Eliminations
|
(442
|
)
|
|
(376
|
)
|
|
(856
|
)
|
|
(733
|
)
|
||||
Total business segment sales
|
7,159
|
|
|
6,629
|
|
|
13,889
|
|
|
12,900
|
|
||||
Acquisition Accounting Adjustments
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
Total
|
$
|
7,159
|
|
|
$
|
6,625
|
|
|
$
|
13,888
|
|
|
$
|
12,892
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Intersegment Sales (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
22
|
|
|
$
|
15
|
|
|
$
|
43
|
|
|
$
|
30
|
|
Intelligence, Information and Services
|
|
183
|
|
|
167
|
|
|
351
|
|
|
329
|
|
||||
Missile Systems
|
|
58
|
|
|
42
|
|
|
101
|
|
|
77
|
|
||||
Space and Airborne Systems
|
|
173
|
|
|
148
|
|
|
346
|
|
|
287
|
|
||||
Forcepoint
|
|
6
|
|
|
4
|
|
|
15
|
|
|
10
|
|
||||
Total
|
|
$
|
442
|
|
|
$
|
376
|
|
|
$
|
856
|
|
|
$
|
733
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Operating Income (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
264
|
|
|
$
|
262
|
|
|
$
|
522
|
|
|
$
|
535
|
|
Intelligence, Information and Services
|
|
161
|
|
|
128
|
|
|
348
|
|
|
245
|
|
||||
Missile Systems
|
|
253
|
|
|
231
|
|
|
443
|
|
|
443
|
|
||||
Space and Airborne Systems
|
|
229
|
|
|
206
|
|
|
441
|
|
|
399
|
|
||||
Forcepoint
|
|
(3
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|
(15
|
)
|
||||
Eliminations
|
|
(46
|
)
|
|
(41
|
)
|
|
(93
|
)
|
|
(81
|
)
|
||||
Total business segment operating income
|
|
858
|
|
|
778
|
|
|
1,649
|
|
|
1,526
|
|
||||
Acquisition Accounting Adjustments
|
|
(27
|
)
|
|
(34
|
)
|
|
(55
|
)
|
|
(67
|
)
|
||||
FAS/CAS Operating Adjustment
|
|
363
|
|
|
353
|
|
|
729
|
|
|
707
|
|
||||
Corporate
|
|
(18
|
)
|
|
3
|
|
|
(34
|
)
|
|
(25
|
)
|
||||
Total
|
|
$
|
1,176
|
|
|
$
|
1,100
|
|
|
$
|
2,289
|
|
|
$
|
2,141
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Intersegment Operating Income (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
3
|
|
Intelligence, Information and Services
|
|
18
|
|
|
17
|
|
|
35
|
|
|
34
|
|
||||
Missile Systems
|
|
5
|
|
|
4
|
|
|
9
|
|
|
7
|
|
||||
Space and Airborne Systems
|
|
17
|
|
|
15
|
|
|
34
|
|
|
29
|
|
||||
Forcepoint
|
|
4
|
|
|
4
|
|
|
11
|
|
|
8
|
|
||||
Total
|
|
$
|
46
|
|
|
$
|
41
|
|
|
$
|
93
|
|
|
$
|
81
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
FAS/CAS Pension Operating Adjustment
|
|
$
|
361
|
|
|
$
|
350
|
|
|
$
|
723
|
|
|
$
|
701
|
|
FAS/CAS PRB Operating Adjustment
|
|
2
|
|
|
3
|
|
|
6
|
|
|
6
|
|
||||
FAS/CAS Operating Adjustment
|
|
$
|
363
|
|
|
$
|
353
|
|
|
$
|
729
|
|
|
$
|
707
|
|
Total Assets (in millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018(2)
|
||||
Integrated Defense Systems(1)
|
|
$
|
4,965
|
|
|
$
|
4,826
|
|
Intelligence, Information and Services(1)
|
|
4,372
|
|
|
4,238
|
|
||
Missile Systems(1)
|
|
8,769
|
|
|
8,229
|
|
||
Space and Airborne Systems(1)
|
|
6,897
|
|
|
6,740
|
|
||
Forcepoint(1)
|
|
2,422
|
|
|
2,529
|
|
||
Corporate
|
|
4,761
|
|
|
6,108
|
|
||
Total
|
|
$
|
32,186
|
|
|
$
|
32,670
|
|
(1)
|
Total assets includes intangible assets. Related amortization expense is included in Acquisition Accounting Adjustments.
|
(2)
|
Amounts have been recast to reflect the adoption of ASU 2016-02, Leases (Topic 842). Operating lease right-of-use assets are all recorded at Corporate.
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
206
|
|
|
$
|
224
|
|
|
$
|
715
|
|
|
$
|
632
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
1,817
|
|
Cost-type contracts
|
|
466
|
|
|
1,132
|
|
|
794
|
|
|
713
|
|
|
4
|
|
|
—
|
|
|
3,109
|
|
|||||||
Direct commercial sales and other U.S. sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
1
|
|
|
31
|
|
|
8
|
|
|
32
|
|
|
45
|
|
|
—
|
|
|
117
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
45
|
|
|
61
|
|
|
128
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|||||||
Cost-type contracts
|
|
16
|
|
|
9
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
187
|
|
|
48
|
|
|
49
|
|
|
58
|
|
|
16
|
|
|
—
|
|
|
358
|
|
|||||||
Cost-type contracts
|
|
19
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
171
|
|
|
6
|
|
|
191
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
451
|
|
|||||||
Cost-type contracts
|
|
52
|
|
|
5
|
|
|
4
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
262
|
|
|
9
|
|
|
150
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
430
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
132
|
|
|
—
|
|
|
37
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|||||||
Cost-type contracts
|
|
12
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
47
|
|
|
53
|
|
|
40
|
|
|
37
|
|
|
37
|
|
|
—
|
|
|
214
|
|
|||||||
Cost-type contracts
|
|
3
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||||
Total net sales
|
|
1,619
|
|
|
1,594
|
|
|
2,152
|
|
|
1,644
|
|
|
150
|
|
|
—
|
|
|
7,159
|
|
|||||||
Intersegment sales
|
|
22
|
|
|
183
|
|
|
58
|
|
|
173
|
|
|
6
|
|
|
(442
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
1,641
|
|
|
$
|
1,777
|
|
|
$
|
2,210
|
|
|
$
|
1,817
|
|
|
$
|
156
|
|
|
$
|
(442
|
)
|
|
$
|
7,159
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Geographic Area (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
673
|
|
|
$
|
1,392
|
|
|
$
|
1,517
|
|
|
$
|
1,377
|
|
|
$
|
89
|
|
|
$
|
5,048
|
|
Asia/Pacific
|
|
267
|
|
|
118
|
|
|
185
|
|
|
102
|
|
|
16
|
|
|
688
|
|
||||||
Middle East and North Africa
|
|
485
|
|
|
20
|
|
|
363
|
|
|
106
|
|
|
8
|
|
|
982
|
|
||||||
All other (principally Europe)
|
|
194
|
|
|
64
|
|
|
87
|
|
|
59
|
|
|
37
|
|
|
441
|
|
||||||
Total net sales
|
|
$
|
1,619
|
|
|
$
|
1,594
|
|
|
$
|
2,152
|
|
|
$
|
1,644
|
|
|
$
|
150
|
|
|
$
|
7,159
|
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Major Customer (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government(1)
|
|
$
|
672
|
|
|
$
|
1,356
|
|
|
$
|
1,509
|
|
|
$
|
1,345
|
|
|
$
|
44
|
|
|
$
|
4,926
|
|
U.S. direct commercial sales and other U.S. sales
|
|
1
|
|
|
36
|
|
|
8
|
|
|
32
|
|
|
45
|
|
|
122
|
|
||||||
Foreign military sales through the U.S. government
|
|
428
|
|
|
81
|
|
|
377
|
|
|
171
|
|
|
—
|
|
|
1,057
|
|
||||||
Foreign direct commercial sales and other foreign sales(1)
|
|
518
|
|
|
121
|
|
|
258
|
|
|
96
|
|
|
61
|
|
|
1,054
|
|
||||||
Total net sales
|
|
$
|
1,619
|
|
|
$
|
1,594
|
|
|
$
|
2,152
|
|
|
$
|
1,644
|
|
|
$
|
150
|
|
|
$
|
7,159
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Contract-Type (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
1,051
|
|
|
$
|
432
|
|
|
$
|
1,318
|
|
|
$
|
899
|
|
|
$
|
146
|
|
|
$
|
3,846
|
|
Cost-type contracts
|
|
568
|
|
|
1,162
|
|
|
834
|
|
|
745
|
|
|
4
|
|
|
3,313
|
|
||||||
Total net sales
|
|
$
|
1,619
|
|
|
$
|
1,594
|
|
|
$
|
2,152
|
|
|
$
|
1,644
|
|
|
$
|
150
|
|
|
$
|
7,159
|
|
|
|
Three Months Ended July 1, 2018
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
198
|
|
|
$
|
250
|
|
|
$
|
651
|
|
|
$
|
525
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
1,645
|
|
Cost-type contracts
|
|
411
|
|
|
1,043
|
|
|
685
|
|
|
642
|
|
|
4
|
|
|
—
|
|
|
2,785
|
|
|||||||
Direct commercial sales and other U.S. sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
2
|
|
|
29
|
|
|
10
|
|
|
31
|
|
|
51
|
|
|
—
|
|
|
123
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
6
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
50
|
|
|
51
|
|
|
113
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
251
|
|
|||||||
Cost-type contracts
|
|
22
|
|
|
11
|
|
|
21
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
191
|
|
|
53
|
|
|
44
|
|
|
51
|
|
|
17
|
|
|
—
|
|
|
356
|
|
|||||||
Cost-type contracts
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
243
|
|
|
6
|
|
|
126
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
439
|
|
|||||||
Cost-type contracts
|
|
38
|
|
|
1
|
|
|
7
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
227
|
|
|
4
|
|
|
240
|
|
|
35
|
|
|
8
|
|
|
—
|
|
|
514
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
28
|
|
|
—
|
|
|
32
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|||||||
Cost-type contracts
|
|
7
|
|
|
—
|
|
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
37
|
|
|
58
|
|
|
58
|
|
|
36
|
|
|
39
|
|
|
—
|
|
|
228
|
|
|||||||
Cost-type contracts
|
|
3
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||||
Total net sales
|
|
1,499
|
|
|
1,520
|
|
|
2,009
|
|
|
1,457
|
|
|
140
|
|
|
—
|
|
|
6,625
|
|
|||||||
Intersegment sales
|
|
15
|
|
|
167
|
|
|
42
|
|
|
148
|
|
|
4
|
|
|
(376
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
1,514
|
|
|
$
|
1,687
|
|
|
$
|
2,051
|
|
|
$
|
1,605
|
|
|
$
|
148
|
|
|
$
|
(380
|
)
|
|
$
|
6,625
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Three Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Geographic Area (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
611
|
|
|
$
|
1,328
|
|
|
$
|
1,347
|
|
|
$
|
1,199
|
|
|
$
|
76
|
|
|
$
|
4,561
|
|
Asia/Pacific
|
|
305
|
|
|
115
|
|
|
178
|
|
|
93
|
|
|
17
|
|
|
708
|
|
||||||
Middle East and North Africa
|
|
508
|
|
|
11
|
|
|
373
|
|
|
116
|
|
|
8
|
|
|
1,016
|
|
||||||
All other (principally Europe)
|
|
75
|
|
|
66
|
|
|
111
|
|
|
49
|
|
|
39
|
|
|
340
|
|
||||||
Total net sales
|
|
$
|
1,499
|
|
|
$
|
1,520
|
|
|
$
|
2,009
|
|
|
$
|
1,457
|
|
|
$
|
140
|
|
|
$
|
6,625
|
|
|
|
Three Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Major Customer (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government(1)
|
|
$
|
609
|
|
|
$
|
1,293
|
|
|
$
|
1,336
|
|
|
$
|
1,167
|
|
|
$
|
25
|
|
|
$
|
4,430
|
|
U.S. direct commercial sales and other U.S. sales
|
|
2
|
|
|
35
|
|
|
11
|
|
|
32
|
|
|
51
|
|
|
131
|
|
||||||
Foreign military sales through the U.S. government
|
|
388
|
|
|
69
|
|
|
319
|
|
|
136
|
|
|
—
|
|
|
912
|
|
||||||
Foreign direct commercial sales and other foreign sales(1)
|
|
500
|
|
|
123
|
|
|
343
|
|
|
122
|
|
|
64
|
|
|
1,152
|
|
||||||
Total net sales
|
|
$
|
1,499
|
|
|
$
|
1,520
|
|
|
$
|
2,009
|
|
|
$
|
1,457
|
|
|
$
|
140
|
|
|
$
|
6,625
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Three Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Contract-Type (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
976
|
|
|
$
|
451
|
|
|
$
|
1,274
|
|
|
$
|
791
|
|
|
$
|
136
|
|
|
$
|
3,628
|
|
Cost-type contracts
|
|
523
|
|
|
1,069
|
|
|
735
|
|
|
666
|
|
|
4
|
|
|
2,997
|
|
||||||
Total net sales
|
|
$
|
1,499
|
|
|
$
|
1,520
|
|
|
$
|
2,009
|
|
|
$
|
1,457
|
|
|
$
|
140
|
|
|
$
|
6,625
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
427
|
|
|
$
|
449
|
|
|
$
|
1,423
|
|
|
$
|
1,181
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
3,556
|
|
Cost-type contracts
|
|
891
|
|
|
2,283
|
|
|
1,492
|
|
|
1,372
|
|
|
8
|
|
|
—
|
|
|
6,046
|
|
|||||||
Direct commercial sales and other U.S. sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
2
|
|
|
64
|
|
|
16
|
|
|
58
|
|
|
89
|
|
|
—
|
|
|
229
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
9
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
11
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
85
|
|
|
134
|
|
|
251
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
538
|
|
|||||||
Cost-type contracts
|
|
34
|
|
|
20
|
|
|
23
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
355
|
|
|
89
|
|
|
81
|
|
|
106
|
|
|
32
|
|
|
—
|
|
|
663
|
|
|||||||
Cost-type contracts
|
|
36
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
439
|
|
|
9
|
|
|
307
|
|
|
157
|
|
|
—
|
|
|
—
|
|
|
912
|
|
|||||||
Cost-type contracts
|
|
100
|
|
|
10
|
|
|
9
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
458
|
|
|
16
|
|
|
295
|
|
|
19
|
|
|
16
|
|
|
—
|
|
|
804
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
212
|
|
|
1
|
|
|
71
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
320
|
|
|||||||
Cost-type contracts
|
|
23
|
|
|
—
|
|
|
26
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
81
|
|
|
102
|
|
|
82
|
|
|
66
|
|
|
76
|
|
|
—
|
|
|
407
|
|
|||||||
Cost-type contracts
|
|
5
|
|
|
17
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||||
Total net sales
|
|
3,148
|
|
|
3,203
|
|
|
4,115
|
|
|
3,124
|
|
|
298
|
|
|
—
|
|
|
13,888
|
|
|||||||
Intersegment sales
|
|
43
|
|
|
351
|
|
|
101
|
|
|
346
|
|
|
15
|
|
|
(856
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
3,191
|
|
|
$
|
3,554
|
|
|
$
|
4,216
|
|
|
$
|
3,470
|
|
|
$
|
314
|
|
|
$
|
(857
|
)
|
|
$
|
13,888
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Geographic Area (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
1,320
|
|
|
$
|
2,805
|
|
|
$
|
2,931
|
|
|
$
|
2,612
|
|
|
$
|
174
|
|
|
$
|
9,842
|
|
Asia/Pacific
|
|
510
|
|
|
243
|
|
|
356
|
|
|
190
|
|
|
32
|
|
|
1,331
|
|
||||||
Middle East and North Africa
|
|
997
|
|
|
35
|
|
|
648
|
|
|
218
|
|
|
16
|
|
|
1,914
|
|
||||||
All other (principally Europe)
|
|
321
|
|
|
120
|
|
|
180
|
|
|
104
|
|
|
76
|
|
|
801
|
|
||||||
Total net sales
|
|
$
|
3,148
|
|
|
$
|
3,203
|
|
|
$
|
4,115
|
|
|
$
|
3,124
|
|
|
$
|
298
|
|
|
$
|
13,888
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Major Customer (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government(1)
|
|
$
|
1,318
|
|
|
$
|
2,732
|
|
|
$
|
2,915
|
|
|
$
|
2,553
|
|
|
$
|
84
|
|
|
$
|
9,602
|
|
U.S. direct commercial sales and other U.S. sales
|
|
2
|
|
|
73
|
|
|
16
|
|
|
59
|
|
|
90
|
|
|
240
|
|
||||||
Foreign military sales through the U.S. government
|
|
893
|
|
|
174
|
|
|
687
|
|
|
321
|
|
|
—
|
|
|
2,075
|
|
||||||
Foreign direct commercial sales and other foreign sales(1)
|
|
935
|
|
|
224
|
|
|
497
|
|
|
191
|
|
|
124
|
|
|
1,971
|
|
||||||
Total net sales
|
|
$
|
3,148
|
|
|
$
|
3,203
|
|
|
$
|
4,115
|
|
|
$
|
3,124
|
|
|
$
|
298
|
|
|
$
|
13,888
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
Total Net Sales by Contract-Type (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
2,059
|
|
|
$
|
864
|
|
|
$
|
2,526
|
|
|
$
|
1,691
|
|
|
$
|
289
|
|
|
$
|
7,429
|
|
Cost-type contracts
|
|
1,089
|
|
|
2,339
|
|
|
1,589
|
|
|
1,433
|
|
|
9
|
|
|
6,459
|
|
||||||
Total net sales
|
|
$
|
3,148
|
|
|
$
|
3,203
|
|
|
$
|
4,115
|
|
|
$
|
3,124
|
|
|
$
|
298
|
|
|
$
|
13,888
|
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
425
|
|
|
$
|
502
|
|
|
$
|
1,234
|
|
|
$
|
1,070
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
3,273
|
|
Cost-type contracts
|
|
813
|
|
|
1,999
|
|
|
1,313
|
|
|
1,286
|
|
|
7
|
|
|
—
|
|
|
5,418
|
|
|||||||
Direct commercial sales and other U.S. sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
4
|
|
|
56
|
|
|
23
|
|
|
57
|
|
|
100
|
|
|
—
|
|
|
240
|
|
|||||||
Cost-type contracts
|
|
1
|
|
|
9
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
80
|
|
|
102
|
|
|
209
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
457
|
|
|||||||
Cost-type contracts
|
|
47
|
|
|
25
|
|
|
39
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
337
|
|
|
97
|
|
|
87
|
|
|
101
|
|
|
32
|
|
|
—
|
|
|
654
|
|
|||||||
Cost-type contracts
|
|
69
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
438
|
|
|
10
|
|
|
206
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
772
|
|
|||||||
Cost-type contracts
|
|
70
|
|
|
1
|
|
|
14
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
574
|
|
|
9
|
|
|
470
|
|
|
56
|
|
|
15
|
|
|
—
|
|
|
1,124
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
25
|
|
|
—
|
|
|
58
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|||||||
Cost-type contracts
|
|
15
|
|
|
—
|
|
|
44
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||||
Direct commercial sales and other foreign sales(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
70
|
|
|
110
|
|
|
123
|
|
|
69
|
|
|
75
|
|
|
—
|
|
|
447
|
|
|||||||
Cost-type contracts
|
|
5
|
|
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|||||||
Total net sales
|
|
2,973
|
|
|
2,940
|
|
|
3,822
|
|
|
2,886
|
|
|
271
|
|
|
—
|
|
|
12,892
|
|
|||||||
Intersegment sales
|
|
30
|
|
|
329
|
|
|
77
|
|
|
287
|
|
|
10
|
|
|
(733
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
3,003
|
|
|
$
|
3,269
|
|
|
$
|
3,899
|
|
|
$
|
3,173
|
|
|
$
|
289
|
|
|
$
|
(741
|
)
|
|
$
|
12,892
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Geographic Area (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
1,243
|
|
|
$
|
2,566
|
|
|
$
|
2,570
|
|
|
$
|
2,414
|
|
|
$
|
149
|
|
|
$
|
8,942
|
|
Asia/Pacific
|
|
533
|
|
|
224
|
|
|
336
|
|
|
173
|
|
|
32
|
|
|
1,298
|
|
||||||
Middle East and North Africa
|
|
1,082
|
|
|
20
|
|
|
690
|
|
|
206
|
|
|
15
|
|
|
2,013
|
|
||||||
All other (principally Europe)
|
|
115
|
|
|
130
|
|
|
226
|
|
|
93
|
|
|
75
|
|
|
639
|
|
||||||
Total net sales
|
|
$
|
2,973
|
|
|
$
|
2,940
|
|
|
$
|
3,822
|
|
|
$
|
2,886
|
|
|
$
|
271
|
|
|
$
|
12,892
|
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Major Customer (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government(1)
|
|
$
|
1,238
|
|
|
$
|
2,501
|
|
|
$
|
2,547
|
|
|
$
|
2,356
|
|
|
$
|
49
|
|
|
$
|
8,691
|
|
U.S. direct commercial sales and other U.S. sales
|
|
5
|
|
|
65
|
|
|
23
|
|
|
58
|
|
|
100
|
|
|
251
|
|
||||||
Foreign military sales through the U.S. government
|
|
675
|
|
|
138
|
|
|
570
|
|
|
246
|
|
|
—
|
|
|
1,629
|
|
||||||
Foreign direct commercial sales and other foreign sales(1)
|
|
1,055
|
|
|
236
|
|
|
682
|
|
|
226
|
|
|
122
|
|
|
2,321
|
|
||||||
Total net sales
|
|
$
|
2,973
|
|
|
$
|
2,940
|
|
|
$
|
3,822
|
|
|
$
|
2,886
|
|
|
$
|
271
|
|
|
$
|
12,892
|
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||||||
Total Net Sales by Contract-Type (in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
1,953
|
|
|
$
|
886
|
|
|
$
|
2,410
|
|
|
$
|
1,559
|
|
|
$
|
264
|
|
|
$
|
7,072
|
|
Cost-type contracts
|
|
1,020
|
|
|
2,054
|
|
|
1,412
|
|
|
1,327
|
|
|
7
|
|
|
5,820
|
|
||||||
Total net sales
|
|
$
|
2,973
|
|
|
$
|
2,940
|
|
|
$
|
3,822
|
|
|
$
|
2,886
|
|
|
$
|
271
|
|
|
$
|
12,892
|
|
|
IDS
|
|
IIS
|
|
MS
|
|
SAS
|
|
Forcepoint
|
|
Products
|
90
|
%
|
45
|
%
|
95
|
%
|
100
|
%
|
90
|
%
|
Services
|
10
|
%
|
55
|
%
|
5
|
%
|
—
|
%
|
10
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Net sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
5,994
|
|
|
$
|
5,507
|
|
|
83.7
|
%
|
|
83.1
|
%
|
Services
|
1,165
|
|
|
1,118
|
|
|
16.3
|
%
|
|
16.9
|
%
|
||
Total net sales
|
$
|
7,159
|
|
|
$
|
6,625
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Six Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Net sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
11,556
|
|
|
$
|
10,761
|
|
|
83.2
|
%
|
|
83.5
|
%
|
Services
|
2,332
|
|
|
2,131
|
|
|
16.8
|
%
|
|
16.5
|
%
|
||
Total net sales
|
$
|
13,888
|
|
|
$
|
12,892
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Sales to the U.S. government(1)(2)
|
$
|
4,926
|
|
|
$
|
4,430
|
|
|
69
|
%
|
|
67
|
%
|
U.S. direct commercial sales and other U.S. sales
|
122
|
|
|
131
|
|
|
2
|
%
|
|
2
|
%
|
||
Foreign military sales through the U.S. government
|
1,057
|
|
|
912
|
|
|
15
|
%
|
|
14
|
%
|
||
Foreign direct commercial sales and other foreign sales(1)
|
1,054
|
|
|
1,152
|
|
|
15
|
%
|
|
17
|
%
|
||
Total net sales
|
$
|
7,159
|
|
|
$
|
6,625
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
(2)
|
Includes sales to the U.S. Department of Defense (DoD) of $4,697 million, or 66% of total net sales, in the second quarter of 2019 and $4,229 million, or 64% of total net sales, in the second quarter of 2018.
|
|
Six Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Sales to the U.S. government(1)(2)
|
$
|
9,602
|
|
|
$
|
8,691
|
|
|
69
|
%
|
|
67
|
%
|
U.S. direct commercial sales and other U.S. sales
|
240
|
|
|
251
|
|
|
2
|
%
|
|
2
|
%
|
||
Foreign military sales through the U.S. government
|
2,075
|
|
|
1,629
|
|
|
15
|
%
|
|
13
|
%
|
||
Foreign direct commercial sales and other foreign sales(1)
|
1,971
|
|
|
2,321
|
|
|
14
|
%
|
|
18
|
%
|
||
Total net sales
|
$
|
13,888
|
|
|
$
|
12,892
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
(2)
|
Includes sales to the U.S. DoD of $9,148 million, or 66% of total net sales, in the first six months of 2019 and $8,304 million, or 64% of total net sales, in the first six months of 2018.
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Cost of sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
4,302
|
|
|
$
|
3,903
|
|
|
60.1
|
%
|
|
58.9
|
%
|
Services
|
903
|
|
|
874
|
|
|
12.6
|
%
|
|
13.2
|
%
|
||
Total cost of sales
|
$
|
5,205
|
|
|
$
|
4,777
|
|
|
72.7
|
%
|
|
72.1
|
%
|
|
Six Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Cost of sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
8,304
|
|
|
$
|
7,640
|
|
|
59.8
|
%
|
|
59.3
|
%
|
Services
|
1,778
|
|
|
1,669
|
|
|
12.8
|
%
|
|
12.9
|
%
|
||
Total cost of sales
|
$
|
10,082
|
|
|
$
|
9,309
|
|
|
72.6
|
%
|
|
72.2
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Administrative and selling expenses
|
$
|
578
|
|
|
$
|
540
|
|
|
8.1
|
%
|
|
8.2
|
%
|
Research and development expenses
|
200
|
|
|
208
|
|
|
2.8
|
%
|
|
3.1
|
%
|
||
Total general and administrative expenses
|
$
|
778
|
|
|
$
|
748
|
|
|
10.9
|
%
|
|
11.3
|
%
|
|
Six Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||
Administrative and selling expenses
|
$
|
1,122
|
|
|
$
|
1,068
|
|
|
8.1
|
%
|
|
8.3
|
%
|
Research and development expenses
|
395
|
|
|
374
|
|
|
2.8
|
%
|
|
2.9
|
%
|
||
Total general and administrative expenses
|
$
|
1,517
|
|
|
$
|
1,442
|
|
|
10.9
|
%
|
|
11.2
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Total operating expenses
|
$
|
5,983
|
|
|
$
|
5,525
|
|
|
$
|
11,599
|
|
|
$
|
10,751
|
|
% of Total Net Sales
|
83.6
|
%
|
|
83.4
|
%
|
|
83.5
|
%
|
|
83.4
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Operating income
|
$
|
1,176
|
|
|
$
|
1,100
|
|
|
$
|
2,289
|
|
|
$
|
2,141
|
|
% of Total Net Sales
|
16.4
|
%
|
|
16.6
|
%
|
|
16.5
|
%
|
|
16.6
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Non-operating (income) expense, net
|
|
|
|
|
|
|
|
||||||||
Retirement benefits non-service expense
|
$
|
181
|
|
|
$
|
238
|
|
|
$
|
362
|
|
|
$
|
477
|
|
Interest expense
|
45
|
|
|
46
|
|
|
89
|
|
|
93
|
|
||||
Interest income
|
(7
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|
(15
|
)
|
||||
Other (income) expense, net
|
(8
|
)
|
|
(3
|
)
|
|
(28
|
)
|
|
2
|
|
||||
Total non-operating (income) expense, net
|
$
|
211
|
|
|
$
|
273
|
|
|
$
|
403
|
|
|
$
|
557
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except percentages)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Federal and foreign income taxes
|
$
|
152
|
|
|
$
|
37
|
|
|
$
|
298
|
|
|
$
|
170
|
|
Effective tax rate
|
15.8
|
%
|
|
4.5
|
%
|
|
15.8
|
%
|
|
10.7
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Income from continuing operations
|
$
|
813
|
|
|
$
|
790
|
|
|
$
|
1,588
|
|
|
$
|
1,414
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Net income
|
$
|
813
|
|
|
$
|
791
|
|
|
$
|
1,588
|
|
|
$
|
1,414
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except per share amounts)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Income from continuing operations attributable to Raytheon Company
|
|
$
|
817
|
|
|
$
|
799
|
|
|
$
|
1,598
|
|
|
$
|
1,433
|
|
Diluted weighted-average shares outstanding
|
|
279.9
|
|
|
287.6
|
|
|
281.0
|
|
|
288.2
|
|
||||
Diluted EPS from continuing operations attributable to Raytheon Company
|
|
$
|
2.92
|
|
|
$
|
2.78
|
|
|
$
|
5.69
|
|
|
$
|
4.98
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Beginning balance
|
|
280.1
|
|
|
287.2
|
|
|
282.1
|
|
|
288.4
|
|
Stock plans activity
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.0
|
|
Share repurchases
|
|
(1.7
|
)
|
|
(2.0
|
)
|
|
(4.8
|
)
|
|
(4.2
|
)
|
Ending balance
|
|
278.4
|
|
|
285.2
|
|
|
278.4
|
|
|
285.2
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Bookings (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
2,549
|
|
|
$
|
1,661
|
|
|
$
|
3,923
|
|
|
$
|
4,136
|
|
Intelligence, Information and Services
|
|
1,920
|
|
|
1,724
|
|
|
3,554
|
|
|
2,798
|
|
||||
Missile Systems
|
|
2,351
|
|
|
2,916
|
|
|
3,057
|
|
|
4,306
|
|
||||
Space and Airborne Systems
|
|
2,507
|
|
|
2,245
|
|
|
4,037
|
|
|
3,517
|
|
||||
Forcepoint
|
|
148
|
|
|
148
|
|
|
272
|
|
|
248
|
|
||||
Total
|
|
$
|
9,475
|
|
|
$
|
8,694
|
|
|
$
|
14,843
|
|
|
$
|
15,005
|
|
Backlog (in millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Integrated Defense Systems
|
|
$
|
12,260
|
|
|
$
|
11,557
|
|
Intelligence, Information and Services
|
|
6,652
|
|
|
6,233
|
|
||
Missile Systems
|
|
12,778
|
|
|
13,976
|
|
||
Space and Airborne Systems
|
|
10,947
|
|
|
10,126
|
|
||
Forcepoint(1)
|
|
494
|
|
|
528
|
|
||
Total
|
|
$
|
43,131
|
|
|
$
|
42,420
|
|
(1)
|
Forcepoint backlog excludes the unfavorable impact of $1 million and $2 million at June 30, 2019 and December 31, 2018, respectively, related to the Acquisition Accounting Adjustments to record acquired deferred revenue at fair value.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Total Net Sales (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
1,641
|
|
|
$
|
1,514
|
|
|
$
|
3,191
|
|
|
$
|
3,003
|
|
Intelligence, Information and Services
|
|
1,777
|
|
|
1,687
|
|
|
3,554
|
|
|
3,269
|
|
||||
Missile Systems
|
|
2,210
|
|
|
2,051
|
|
|
4,216
|
|
|
3,899
|
|
||||
Space and Airborne Systems
|
|
1,817
|
|
|
1,605
|
|
|
3,470
|
|
|
3,173
|
|
||||
Forcepoint
|
|
156
|
|
|
148
|
|
|
314
|
|
|
289
|
|
||||
Eliminations
|
|
(442
|
)
|
|
(376
|
)
|
|
(856
|
)
|
|
(733
|
)
|
||||
Total business segment sales
|
|
7,159
|
|
|
6,629
|
|
|
13,889
|
|
|
12,900
|
|
||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
Total
|
|
$
|
7,159
|
|
|
$
|
6,625
|
|
|
$
|
13,888
|
|
|
$
|
12,892
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
EAC Adjustments (in millions)
|
|
Jun 30, 2019
|
|
|
Jul 1, 2018
|
|
|
Jun 30, 2019
|
|
|
Jul 1, 2018
|
|
||||
Gross favorable
|
|
$
|
324
|
|
|
$
|
263
|
|
|
$
|
566
|
|
|
$
|
469
|
|
Gross unfavorable
|
|
(201
|
)
|
|
(134
|
)
|
|
(320
|
)
|
|
(225
|
)
|
||||
Total net EAC adjustments
|
|
$
|
123
|
|
|
$
|
129
|
|
|
$
|
246
|
|
|
$
|
244
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Operating Income (in millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
264
|
|
|
$
|
262
|
|
|
$
|
522
|
|
|
$
|
535
|
|
Intelligence, Information and Services
|
|
161
|
|
|
128
|
|
|
348
|
|
|
245
|
|
||||
Missile Systems
|
|
253
|
|
|
231
|
|
|
443
|
|
|
443
|
|
||||
Space and Airborne Systems
|
|
229
|
|
|
206
|
|
|
441
|
|
|
399
|
|
||||
Forcepoint
|
|
(3
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|
(15
|
)
|
||||
Eliminations
|
|
(46
|
)
|
|
(41
|
)
|
|
(93
|
)
|
|
(81
|
)
|
||||
Total business segment operating income
|
|
858
|
|
|
778
|
|
|
1,649
|
|
|
1,526
|
|
||||
Acquisition Accounting Adjustments
|
|
(27
|
)
|
|
(34
|
)
|
|
(55
|
)
|
|
(67
|
)
|
||||
FAS/CAS Operating Adjustment
|
|
363
|
|
|
353
|
|
|
729
|
|
|
707
|
|
||||
Corporate
|
|
(18
|
)
|
|
3
|
|
|
(34
|
)
|
|
(25
|
)
|
||||
Total
|
|
$
|
1,176
|
|
|
$
|
1,100
|
|
|
$
|
2,289
|
|
|
$
|
2,141
|
|
Integrated Defense Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Total net sales
|
|
$
|
1,641
|
|
|
$
|
1,514
|
|
|
8.4
|
%
|
|
$
|
3,191
|
|
|
$
|
3,003
|
|
|
6.3
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of sales—labor
|
|
591
|
|
|
540
|
|
|
9.4
|
%
|
|
1,134
|
|
|
1,093
|
|
|
3.8
|
%
|
||||
Cost of sales—materials and subcontractors
|
|
545
|
|
|
478
|
|
|
14.0
|
%
|
|
1,048
|
|
|
944
|
|
|
11.0
|
%
|
||||
Other cost of sales and other operating expenses
|
|
241
|
|
|
234
|
|
|
3.0
|
%
|
|
487
|
|
|
431
|
|
|
13.0
|
%
|
||||
Total operating expenses
|
|
1,377
|
|
|
1,252
|
|
|
10.0
|
%
|
|
2,669
|
|
|
2,468
|
|
|
8.1
|
%
|
||||
Operating income
|
|
$
|
264
|
|
|
$
|
262
|
|
|
0.8
|
%
|
|
$
|
522
|
|
|
$
|
535
|
|
|
(2.4
|
)%
|
Operating margin
|
|
16.1
|
%
|
|
17.3
|
%
|
|
|
|
16.4
|
%
|
|
17.8
|
%
|
|
|
Change in Operating Income (in millions)
|
|
Three Months Ended Jun 30, 2019 Versus Three Months Ended Jul 1, 2018
|
|
Six Months Ended Jun 30, 2019 Versus Six Months Ended Jul 1, 2018
|
||||||||||||||||||
Volume
|
|
|
|
$
|
23
|
|
|
|
|
|
|
$
|
38
|
|
|
|
||||||
Net change in EAC adjustments
|
|
|
|
(21
|
)
|
|
|
|
|
|
(5
|
)
|
|
|
||||||||
Mix and other performance
|
|
|
|
—
|
|
|
|
|
|
|
(46
|
)
|
|
|
||||||||
Total change in operating income
|
|
|
|
$
|
2
|
|
|
|
|
|
|
$
|
(13
|
)
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Bookings
|
|
$
|
2,549
|
|
|
$
|
1,661
|
|
|
53.5
|
%
|
|
$
|
3,923
|
|
|
$
|
4,136
|
|
|
(5.1
|
)%
|
Intelligence, Information and Services
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Total net sales
|
|
$
|
1,777
|
|
|
$
|
1,687
|
|
|
5.3
|
%
|
|
$
|
3,554
|
|
|
$
|
3,269
|
|
|
8.7
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales—labor
|
|
725
|
|
|
688
|
|
|
5.4
|
%
|
|
1,450
|
|
|
1,381
|
|
|
5.0
|
%
|
||||
Cost of sales—materials and subcontractors
|
|
672
|
|
|
656
|
|
|
2.4
|
%
|
|
1,370
|
|
|
1,234
|
|
|
11.0
|
%
|
||||
Other cost of sales and other operating expenses
|
|
219
|
|
|
215
|
|
|
1.9
|
%
|
|
386
|
|
|
409
|
|
|
(5.6
|
)%
|
||||
Total operating expenses
|
|
1,616
|
|
|
1,559
|
|
|
3.7
|
%
|
|
3,206
|
|
|
3,024
|
|
|
6.0
|
%
|
||||
Operating income
|
|
$
|
161
|
|
|
$
|
128
|
|
|
25.8
|
%
|
|
$
|
348
|
|
|
$
|
245
|
|
|
42.0
|
%
|
Operating margin
|
|
9.1
|
%
|
|
7.6
|
%
|
|
|
|
9.8
|
%
|
|
7.5
|
%
|
|
|
Change in Operating Income (in millions)
|
|
Three Months Ended Jun 30, 2019 Versus Three Months Ended Jul 1, 2018
|
|
Six Months Ended Jun 30, 2019 Versus Six Months Ended Jul 1, 2018
|
||||||||||||||||||
Volume
|
|
|
|
$
|
5
|
|
|
|
|
|
|
$
|
19
|
|
|
|
||||||
Net change in EAC adjustments
|
|
|
|
25
|
|
|
|
|
|
|
37
|
|
|
|
||||||||
Mix and other performance
|
|
|
|
3
|
|
|
|
|
|
|
47
|
|
|
|
||||||||
Total change in operating income
|
|
|
|
$
|
33
|
|
|
|
|
|
|
$
|
103
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Bookings
|
|
$
|
1,920
|
|
|
$
|
1,724
|
|
|
11.4
|
%
|
|
$
|
3,554
|
|
|
$
|
2,798
|
|
|
27.0
|
%
|
Missile Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Total net sales
|
|
$
|
2,210
|
|
|
$
|
2,051
|
|
|
7.8
|
%
|
|
$
|
4,216
|
|
|
$
|
3,899
|
|
|
8.1
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales—labor
|
|
710
|
|
|
637
|
|
|
11.5
|
%
|
|
1,395
|
|
|
1,259
|
|
|
10.8
|
%
|
||||
Cost of sales—materials and subcontractors
|
|
971
|
|
|
888
|
|
|
9.3
|
%
|
|
1,854
|
|
|
1,714
|
|
|
8.2
|
%
|
||||
Other cost of sales and other operating expenses
|
|
276
|
|
|
295
|
|
|
(6.4
|
)%
|
|
524
|
|
|
483
|
|
|
8.5
|
%
|
||||
Total operating expenses
|
|
1,957
|
|
|
1,820
|
|
|
7.5
|
%
|
|
3,773
|
|
|
3,456
|
|
|
9.2
|
%
|
||||
Operating income
|
|
$
|
253
|
|
|
$
|
231
|
|
|
9.5
|
%
|
|
$
|
443
|
|
|
$
|
443
|
|
|
—
|
%
|
Operating margin
|
|
11.4
|
%
|
|
11.3
|
%
|
|
|
|
10.5
|
%
|
|
11.4
|
%
|
|
|
Change in Operating Income (in millions)
|
|
Three Months Ended Jun 30, 2019 Versus Three Months Ended Jul 1, 2018
|
|
Six Months Ended Jun 30, 2019 Versus Six Months Ended Jul 1, 2018
|
||||||||||||||||||
Volume
|
|
|
|
$
|
17
|
|
|
|
|
|
|
$
|
40
|
|
|
|
||||||
Net change in EAC adjustments
|
|
|
|
(13
|
)
|
|
|
|
|
|
(37
|
)
|
|
|
||||||||
Mix and other performance
|
|
|
|
18
|
|
|
|
|
|
|
(3
|
)
|
|
|
||||||||
Total change in operating income
|
|
|
|
$
|
22
|
|
|
|
|
|
|
$
|
—
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Bookings
|
|
$
|
2,351
|
|
|
$
|
2,916
|
|
|
(19.4
|
)%
|
|
$
|
3,057
|
|
|
$
|
4,306
|
|
|
(29.0
|
)%
|
Space and Airborne Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Total net sales
|
|
$
|
1,817
|
|
|
$
|
1,605
|
|
|
13.2
|
%
|
|
$
|
3,470
|
|
|
$
|
3,173
|
|
|
9.4
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales—labor
|
|
795
|
|
|
680
|
|
|
16.9
|
%
|
|
1,548
|
|
|
1,368
|
|
|
13.2
|
%
|
||||
Cost of sales—materials and subcontractors
|
|
487
|
|
|
435
|
|
|
12.0
|
%
|
|
911
|
|
|
826
|
|
|
10.3
|
%
|
||||
Other cost of sales and other operating expenses
|
|
306
|
|
|
284
|
|
|
7.7
|
%
|
|
570
|
|
|
580
|
|
|
(1.7
|
)%
|
||||
Total operating expenses
|
|
1,588
|
|
|
1,399
|
|
|
13.5
|
%
|
|
3,029
|
|
|
2,774
|
|
|
9.2
|
%
|
||||
Operating income
|
|
$
|
229
|
|
|
$
|
206
|
|
|
11.2
|
%
|
|
$
|
441
|
|
|
$
|
399
|
|
|
10.5
|
%
|
Operating margin
|
|
12.6
|
%
|
|
12.8
|
%
|
|
|
|
12.7
|
%
|
|
12.6
|
%
|
|
|
Change in Operating Income (in millions)
|
|
Three Months Ended Jun 30, 2019 Versus Three Months Ended Jul 1, 2018
|
|
Six Months Ended Jun 30, 2019 Versus Six Months Ended Jul 1, 2018
|
||||||||||||||||||
Volume
|
|
|
|
$
|
22
|
|
|
|
|
|
|
$
|
29
|
|
|
|
||||||
Net change in EAC adjustments
|
|
|
|
3
|
|
|
|
|
|
|
7
|
|
|
|
||||||||
Mix and other performance
|
|
|
|
(2
|
)
|
|
|
|
|
|
6
|
|
|
|
||||||||
Total change in operating income
|
|
|
|
$
|
23
|
|
|
|
|
|
|
$
|
42
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Bookings
|
|
$
|
2,507
|
|
|
$
|
2,245
|
|
|
11.7
|
%
|
|
$
|
4,037
|
|
|
$
|
3,517
|
|
|
14.8
|
%
|
Forcepoint
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Total net sales
|
|
$
|
156
|
|
|
$
|
148
|
|
|
5.4
|
%
|
|
$
|
314
|
|
|
$
|
289
|
|
|
8.7
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales
|
|
35
|
|
|
29
|
|
|
20.7
|
%
|
|
75
|
|
|
56
|
|
|
33.9
|
%
|
||||
Selling and marketing
|
|
73
|
|
|
70
|
|
|
4.3
|
%
|
|
146
|
|
|
134
|
|
|
9.0
|
%
|
||||
Research and development
|
|
30
|
|
|
36
|
|
|
(16.7
|
)%
|
|
60
|
|
|
73
|
|
|
(17.8
|
)%
|
||||
General and administrative
|
|
21
|
|
|
21
|
|
|
—
|
%
|
|
45
|
|
|
41
|
|
|
9.8
|
%
|
||||
Total operating expenses
|
|
159
|
|
|
156
|
|
|
1.9
|
%
|
|
326
|
|
|
304
|
|
|
7.2
|
%
|
||||
Operating income (loss)
|
|
$
|
(3
|
)
|
|
$
|
(8
|
)
|
|
(62.5
|
)%
|
|
$
|
(12
|
)
|
|
$
|
(15
|
)
|
|
(20.0
|
)%
|
Operating margin
|
|
(1.9
|
)%
|
|
(5.4
|
)%
|
|
|
|
(3.8
|
)%
|
|
(5.2
|
)%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
% Change
|
||||||||||
Bookings
|
|
$
|
148
|
|
|
$
|
148
|
|
|
—
|
%
|
|
$
|
272
|
|
|
$
|
248
|
|
|
9.7
|
%
|
–
|
Cost of sales—labor and overhead costs associated with analytic and technical support services; infrastructure costs associated with maintaining our databases; and labor, materials and overhead costs associated with providing our product offerings;
|
–
|
Selling and marketing—labor costs related to personnel engaged in selling and marketing and customer support functions; costs related to public relations, advertising, promotions and travel; and related overhead costs;
|
–
|
Research and development—labor costs for the development and management of new and existing products; and related overhead costs; and
|
–
|
General and administrative—labor costs for our executive, finance and administrative personnel; third party professional service fees; and related overhead costs.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Deferred revenue adjustment
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(8
|
)
|
Amortization of acquired intangibles
|
|
(27
|
)
|
|
(30
|
)
|
|
(54
|
)
|
|
(59
|
)
|
||||
Total Acquisition Accounting Adjustments
|
|
$
|
(27
|
)
|
|
$
|
(34
|
)
|
|
$
|
(55
|
)
|
|
$
|
(67
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Integrated Defense Systems
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Intelligence, Information and Services
|
|
6
|
|
|
6
|
|
|
12
|
|
|
11
|
|
||||
Missile Systems
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Space and Airborne Systems
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
||||
Forcepoint
|
|
20
|
|
|
21
|
|
|
39
|
|
|
43
|
|
||||
Total
|
|
$
|
27
|
|
|
$
|
30
|
|
|
$
|
54
|
|
|
$
|
59
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
FAS/CAS Pension Operating Adjustment
|
|
$
|
361
|
|
|
$
|
350
|
|
|
$
|
723
|
|
|
$
|
701
|
|
FAS/CAS PRB Operating Adjustment
|
|
2
|
|
|
3
|
|
|
6
|
|
|
6
|
|
||||
FAS/CAS Operating Adjustment
|
|
$
|
363
|
|
|
$
|
353
|
|
|
$
|
729
|
|
|
$
|
707
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
FAS service cost (expense)
|
|
$
|
(104
|
)
|
|
$
|
(130
|
)
|
|
$
|
(210
|
)
|
|
$
|
(258
|
)
|
CAS expense
|
|
467
|
|
|
483
|
|
|
939
|
|
|
965
|
|
||||
FAS/CAS Operating Adjustment
|
|
$
|
363
|
|
|
$
|
353
|
|
|
$
|
729
|
|
|
$
|
707
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
Corporate
|
|
$
|
(18
|
)
|
|
$
|
3
|
|
|
$
|
(34
|
)
|
|
$
|
(25
|
)
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
2,173
|
|
|
$
|
3,608
|
|
Working capital(1)
|
|
3,655
|
|
|
3,674
|
|
||
Amount available under credit facilities
|
|
950
|
|
|
950
|
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Net cash provided by (used in) operating activities from continuing operations
|
|
$
|
412
|
|
|
$
|
1,439
|
|
Net cash provided by (used in) operating activities
|
|
412
|
|
|
1,440
|
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Required pension contributions
|
|
$
|
196
|
|
|
$
|
488
|
|
PRB contributions
|
|
11
|
|
|
9
|
|
||
Total
|
|
$
|
207
|
|
|
$
|
497
|
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
|
|||
Net cash provided by (used in) investing activities
|
|
$
|
(469
|
)
|
|
$
|
(77
|
)
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Additions to property, plant and equipment
|
|
$
|
438
|
|
|
$
|
366
|
|
Additions to capitalized internal-use software
|
|
25
|
|
|
28
|
|
|
|
Six Months Ended
|
||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Net cash provided by (used in) financing activities
|
|
$
|
(1,381
|
)
|
|
$
|
(1,376
|
)
|
|
|
Six Months Ended
|
||||||||||
(In millions)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||||||
|
|
$
|
Shares
|
|
|
$
|
Shares
|
|
||||
Shares repurchased under our share repurchase programs
|
|
$
|
800
|
|
4.4
|
|
|
$
|
800
|
|
3.8
|
|
Shares repurchased to satisfy tax withholding obligations
|
|
66
|
|
0.4
|
|
|
91
|
|
0.4
|
|
||
Total share repurchases
|
|
$
|
866
|
|
4.8
|
|
|
$
|
891
|
|
4.2
|
|
|
|
Six Months Ended
|
||||||
(In millions, except per share amounts)
|
|
Jun 30, 2019
|
|
Jul 1, 2018
|
||||
Cash dividends declared per share
|
|
$
|
1.885
|
|
|
$
|
1.735
|
|
Total dividends paid
|
|
510
|
|
|
480
|
|
(In millions, except percentages)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Total remediation costs—undiscounted
|
|
$
|
193
|
|
|
$
|
193
|
|
Weighted-average discount rate
|
|
5.1
|
%
|
|
5.1
|
%
|
||
Total remediation costs—discounted
|
|
$
|
131
|
|
|
$
|
128
|
|
Recoverable portion
|
|
86
|
|
|
82
|
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Guarantees
|
|
$
|
222
|
|
|
$
|
201
|
|
Letters of credit
|
|
2,260
|
|
|
2,503
|
|
||
Surety bonds
|
|
74
|
|
|
166
|
|
June 30, 2019 (in millions, except percentages)
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
Thereafter
|
|
|
Total
|
|
|
Fair Value
|
|
||||||||
Fixed-rate debt
|
|
$
|
—
|
|
|
$
|
1,500
|
|
|
$
|
—
|
|
|
$
|
1,100
|
|
|
$
|
—
|
|
|
$
|
2,192
|
|
|
$
|
4,792
|
|
|
$
|
5,256
|
|
Average interest rate
|
|
—
|
|
|
3.550
|
%
|
|
—
|
|
|
2.500
|
%
|
|
—
|
|
|
5.097
|
%
|
|
4.017
|
%
|
|
|
December 31, 2018 (in millions, except percentages)
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
Thereafter
|
|
|
Total
|
|
|
Fair Value
|
|
||||||||
Fixed-rate debt
|
|
$
|
—
|
|
|
$
|
1,500
|
|
|
$
|
—
|
|
|
$
|
1,100
|
|
|
$
|
—
|
|
|
$
|
2,192
|
|
|
$
|
4,792
|
|
|
$
|
5,063
|
|
Average interest rate
|
|
—
|
|
|
3.550
|
%
|
|
—
|
|
|
2.500
|
%
|
|
—
|
|
|
5.097
|
%
|
|
4.017
|
%
|
|
|
(In millions)
|
|
Jun 30, 2019
|
|
Dec 31, 2018
|
||||
Asset derivatives related to foreign currency forward contracts
|
|
$
|
26
|
|
|
$
|
26
|
|
Liability derivatives related to foreign currency forward contracts
|
|
30
|
|
|
34
|
|
||
Liability derivatives related to treasury rate lock contracts
|
|
7
|
|
|
—
|
|
–
|
the market price of Raytheon common stock could decline;
|
–
|
Raytheon could owe a substantial termination fee to UTC in specified circumstances;
|
–
|
if the Merger Agreement is terminated and the Raytheon Board of Directors seeks another business combination, Raytheon stockholders cannot be certain that Raytheon will be able to find a party willing to enter into a transaction on terms equivalent to or more attractive than the terms that UTC has agreed to in the Merger Agreement;
|
–
|
time and resources, financial and other, committed by Raytheon’s management to matters relating to the Merger could otherwise have been devoted to pursuing other beneficial opportunities;
|
–
|
Raytheon may experience negative reactions from the financial markets or from its customers, suppliers or employees; and
|
–
|
Raytheon will be required to pay its costs relating to the Merger, such as legal, accounting, financial advisory and printing fees, whether or not the Merger is completed.
|
–
|
managing a larger, more complex combined aerospace and defense business;
|
–
|
maintaining employee morale and retaining key management and other employees;
|
–
|
retaining existing business and operational relationships, including customers, suppliers and employees and other counterparties, as may be impacted by contracts containing consent and/or other provisions that may be triggered by the Merger, and attracting new business and operational relationships;
|
–
|
the diversion of management’s attention as a result of the devoting attention to the Merger, and/or the Separation and the Distributions;
|
–
|
consolidating corporate and administrative infrastructures and eliminating duplicative operations, including unanticipated issues in integrating information technology, communications and other systems;
|
–
|
coordinating geographically separate organizations; and
|
–
|
unforeseen expenses or delays associated with the Merger, including the Separation and the Distributions.
|
Period
|
Total Number of
Shares
Purchased (1)
|
|
|
Average
Price Paid
per Share
|
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan
|
|
|
Approximate Dollar
Value (in billions)
of Shares that
May Yet Be Purchased
Under the Plan (2)
|
|
||
April (April 1, 2019 - April 28, 2019)
|
983,505
|
|
|
$
|
181.99
|
|
|
983,505
|
|
|
$
|
0.8
|
|
May (April 29, 2019 - May 26, 2019)
|
622,266
|
|
|
178.42
|
|
|
622,106
|
|
|
0.7
|
|
||
June (May 27, 2019 - June 30, 2019)
|
58,166
|
|
|
178.66
|
|
|
55,970
|
|
|
0.7
|
|
||
Total
|
1,663,937
|
|
|
$
|
180.54
|
|
|
1,661,581
|
|
|
|
(1)
|
Includes shares purchased related to activity under our stock plans. Such activity during the second quarter of 2019 includes the surrender by employees of 2,356 shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees.
|
(2)
|
In November 2017, our Board authorized the repurchase of up to $2.0 billion of our outstanding common stock. However, the merger agreement restricts us from repurchasing shares other than to satisfy tax withholding obligations. For more information refer to “Note 2: Proposed Merger with United Technologies Corporation (UTC)” within Item 1 of this Form 10-Q.
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
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|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
eXtensible Business Reporting Language (XBRL) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.*
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
*
|
filed electronically herewith
|
**
|
furnished electronically herewith, and not filed
|
RAYTHEON COMPANY
|
||
|
|
|
By:
|
/s/ Michael J. Wood
|
|
|
Michael J. Wood
|
|
|
Vice President, Controller and Chief Accounting Officer
|
|
|
Principal Accounting Officer
|
(i)
|
willful and continued failure to perform substantially the Participant’s duties with the Company or one of its affiliates as such duties are constituted as of the Change in Control after the Company delivers to the Participant written demand for substantial performance specifically identifying the manner in which the Participant has not substantially performed the Participant’s duties;
|
(ii)
|
conviction for a felony; or
|
(iii)
|
willfully engaging in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company.
|
(i)
|
assigning to the Participant duties materially inconsistent with the Participant’s position (including offices, titles and reporting requirements), authority or responsibilities immediately prior to the Change in Control or any other action by the Company which results in a material diminution of the Participant’s position, authority, duties or responsibilities as constituted immediately prior to the Change in Control;
|
(ii)
|
requiring the Participant (a) to be based at any office or location in excess of 50 miles from the Participant’s office or location immediately prior to the Change in Control or (b) to travel on Company business to a substantially greater extent than required immediately prior to the Change in Control;
|
(iii)
|
reducing the Participant’s Base Salary;
|
(iv)
|
materially reducing in the aggregate the Participant’s incentive opportunities under the Company’s or an Affiliated Company’s short- and long-term incentive programs as such opportunities exist immediately prior to the Change in Control;
|
(v)
|
materially reducing the Participant’s targeted annualized award opportunities as such opportunities exist immediately prior to the Change in Control;
|
(vi)
|
failing to maintain in the aggregate the Participant’s amount of benefits under or relative level of participation in the Company’s or an Affiliated Company’s employee benefit or retirement plans, policies, practices or arrangements in which the Participant participates immediately prior to the Change in Control;
|
(vii)
|
purportedly terminating the Participant’s employment otherwise than as expressly permitted by this Plan; or
|
(viii)
|
failing to comply with and satisfy Section 10.4 hereof by requiring any successor to the Company to assume and agree to perform the Company’s obligations hereunder.
|
(i)
|
the Company terminates the employment of the Participant for any reason other than for Cause including, without limitation, forcing the Participant to retire on any date not of the Participant’s choosing;
|
(ii)
|
the Participant terminates employment with the Company for Good Reason;
|
(iii)
|
the Company fails to require a successor to assume, or a successor refuses to assume, the Company’s obligations as required by Section 10.4 hereof; or
|
(iv)
|
the Company or any successor fails to perform any of its obligations hereunder.
|
(i)
|
an amount equal to the product of the Participant’s Base Salary multiplied by one (1);
|
(ii)
|
an amount equal to the product of the Participant’s target annual bonus established for the plan year in which a Qualifying Termination occurs, multiplied by one (1);
|
(iii)
|
medical, dental, vision and employer-paid life insurance, with such life insurance equal to either (a) the Participant’s final annual base pay or, (b) if so elected by the Participant, $50,000.
|
(a)
|
this Release is part of an agreement between you and the Company, and that you have carefully read and understand this Release;
|
(b)
|
this Release specifically refers to rights or claims arising under ADEA;
|
(c)
|
you are not waiving rights or claims that may arise after the date the Release is executed;
|
(d)
|
your waiver of rights or claims is in exchange for consideration in addition to anything of value to which you are already entitled;
|
(e)
|
you have been advised in writing that you should consult with an attorney before executing this Release;
|
(f)
|
you understand that you are given a period of twenty-one (21) days within which to consider this Release, and if you sign this Release before the expiration of the 21-day consideration period, then you will waive your right to the full consideration period; and
|
(g)
|
you understand that you may revoke this Release during the seven (7) day period following its execution, and that the Release shall not become effective or enforceable until the revocation period has expired. You further understand that if you elect to
|
_____________________________________
Date
|
_____________________________________
Employee’s Signature
|
_____________________________________
Employee Identification Number
|
_____________________________________
Print Name
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Raytheon Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Thomas A. Kennedy
|
Thomas A. Kennedy
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Raytheon Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Anthony F. O'Brien
|
Anthony F. O'Brien
Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Thomas A. Kennedy
|
Thomas A. Kennedy
Chairman and Chief Executive Officer
|
July 25, 2019
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Anthony F. O'Brien
|
Anthony F. O'Brien
Vice President and Chief Financial Officer
|
July 25, 2019
|