Raytheon 2009 Annual Report Download - page 123

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Effective January 1, 2009, the composition of SAS was changed to exclude a U.K. manufacturing facility, which now
reports directly to MS. Prior period segment results were revised to reflect this reorganization for SAS and MS and the
corresponding amount in intersegment eliminations.
In addition, as discussed in Note 7: Other Assets, net, in 2009, we adopted the required new accounting standard for
noncontrolling interests. The adoption of this accounting standard resulted in an increase in NCS’ operating income by
$40 million, $23 million and $26 million for 2009, 2008 and 2007 respectively. This increase in operating income also
resulted in a corresponding increase in NCS’ operating margin of 0.9%, 0.5% and 0.6% for 2009, 2008 and 2007,
respectively. The effects of the adoption of this accounting standard have been reflected below in the results for NCS.
Segment financial results were as follows:
Total Net Sales (In millions) 2009 2008 2007
Integrated Defense Systems $ 5,525 $ 5,148 $ 4,695
Intelligence and Information Systems 3,204 3,132 2,742
Missile Systems 5,561 5,408 5,026
Network Centric Systems 4,822 4,510 4,164
Space and Airborne Systems 4,582 4,280 4,202
Technical Services 3,161 2,601 2,174
Corporate and Eliminations (1,974) (1,905) (1,702)
Total $24,881 $23,174 $21,301
Intersegment Sales (In millions) 2009 2008 2007
Integrated Defense Systems $ 126 $ 162 $ 107
Intelligence and Information Systems 19 22 28
Missile Systems 57 26 42
Network Centric Systems 481 379 418
Space and Airborne Systems 611 595 550
Technical Services 710 700 631
Total $ 2,004 $ 1,884 $ 1,776
Operating Income (In millions) 2009 2008 2007
Integrated Defense Systems $ 859 $ 870 $ 828
Intelligence and Information Systems 259 253 248
Missile Systems 604 584 543
Network Centric Systems 674 575 532
Space and Airborne Systems 647 569 556
Technical Services 215 174 139
FAS/CAS Pension Adjustment 27 (123) (259)
Corporate and Eliminations (243) (282) (233)
Total $ 3,042 $ 2,620 $ 2,354
The components of operating income related to Corporate and Eliminations were as follows:
(In millions) 2009 2008 2007
Intersegment profit eliminations $ (173) $ (166) $ (160)
Corporate (70) (116) (73)
Total $ (243) $ (282) $ (233)
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