Raytheon 2003 Annual Report Download - page 61

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P59 333 RAYTHEON COMPANY 333
which can generally be recovered through the pricing of products
and services to the U.S. government. Previously, the Company’s
individual segment results included FAS pension expense or
income, which consisted of CAS pension expense and an adjust-
ment to reconcile CAS pension expense to FAS pension expense
or income. Information for all periods presented was restated to
reflect these changes.
Segment net sales and operating income generally include
intersegment sales and profit recorded at cost plus a specified fee,
which may differ from what the selling entity would be able to
obtain on external sales. Corporate and Eliminations include
Company-wide accruals and over/under applied overhead that
have not been attributed to a particular segment and intersegment
sales and profit eliminations.
Segment financial results were as follows:
Net Sales
(In millions) 2003 2002 2001
Integrated Defense Systems $ 2,864 $ 2,366 $ 2,265
Intelligence and Information Systems 2,045 1,887 1,736
Missile Systems 3,538 3,038 2,901
Network Centric Systems 2,809 3,091 2,865
Space and Airborne Systems 3,677 3,243 2,738
Technical Services 1,963 2,133 2,050
Aircraft 2,088 2,040 2,471
Other 573 210 207
Corporate and Eliminations (1,448) (1,248) (1,216)
Total $18,109 $16,760 $16,017
Intersegment sales in 2003, 2002, and 2001, respectively, were
$140 million, $103 million, and $105 million for Integrated Defense
Systems, $52 million, $35 million, and $26 million for Intelligence
and Information Systems, $7 million, $1 million, and $1 million for
Missile Systems, $316 million, $218 million, and $223 million for
Network Centric Systems, $402 million, $298 million, and
$320 million for Space and Airborne Systems, $529 million,
$590 million, and $537 million for Technical Services, and $2 mil-
lion, $3 million, and $4 million for Aircraft. Aircraft net sales do not
include intersegment aircraft sales to FO.
Operating Income
(In millions) 2003 2002 2001
Integrated Defense Systems $ 331 $ 289 $ 238
Intelligence and Information Systems 194 180 139
Missile Systems 424 373 257
Network Centric Systems 19 278 246
Space and Airborne Systems 492 428 339
Technical Services 107 116 123
Aircraft 2(39) (77)
Other (34) (12) (758)
FAS/CAS Pension Adjustment (109) 210 386
Corporate and Eliminations (110) (40) (127)
Total $1,316 $1,783 $ 766
Aircraft operating income does not include profit on interseg-
ment aircraft sales to FO until the underlying aircraft has been sold
by FO.
Free Cash Flow
(In millions) 2003 2002 2001
Integrated Defense Systems $ 318 $ 194 $ 127
Intelligence and Information Systems 88 121 43
Missile Systems 244 176 293
Network Centric Systems 115 88 59
Space and Airborne Systems 365 153 215
Technical Services 104 174 (57)
Aircraft 20 24 (316)
Other (55) (61) (134)
Corporate 377 770 (51)
Total $1,576 $1,639 $ 179