Raytheon 2009 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2009 Raytheon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

Bookings in 2009 remained relatively consistent with 2008. During 2009, IDS booked $3.2 billion to provide advanced
Patriot air and missile defense capability for several domestic and international customers, including the U.S. Army,
Taiwan and UAE. IDS also booked $650 million on the Zumwalt-class destroyer program (DDG 1000), $157 million to
provide Finland with Surface Launched Medium Range Air-to-Air Missile (SL-AMRAAM) systems and $150 million for
Joint Land Attack Cruise Missile Defense Elevated Netted Sensor Systems (JLENS) for the U.S. Army.
Bookings in 2008 remained relatively consistent with 2007. In 2008, IDS booked $2.5 billion to provide the Patriot Air &
Missile System to the UAE and $533 million on certain contracts for the design, development and support of the Patriot
System for other international customers, including $288 million for South Korea, $140 million for Kuwait and $105
million for Taiwan. IDS also booked $237 million to provide engineering services support for Patriot air and missile
defense programs, $229 million for the Rapid Aerostat Initial Deployment (RAID) program, both for the U.S. Army and
$166 million for the production of torpedo kits for the U.S. Navy.
In 2007, IDS booked $1.3 billion for the Air Warfare Destroyer (AWD) program and $1.3 billion for DDG 1000. IDS also
booked $915 million for certain Patriot programs, including an international technical support program, an engineering
services support program, the Patriot Pure Fleet program and a Guidance Enhanced Missile—Tactical (GEM-T) upgrade
program. Additionally, IDS booked $298 million on the Ballistic Missile Defense System (BMDS) program, $195 million
on the Terminal High Altitude Area Defense (THAAD) radar program, $118 million for the SPY-1 radar on the AEGIS
program and $113 million on the Cobra Judy Replacement Mission Equipment (CJRME) program.
Intelligence and Information Systems
% Change
(In millions, except percentages) 2009 2008 2007
2009
compared
to 2008
2008
compared
to 2007
Total Net Sales $3,204 $3,132 $2,742 2.3% 14.2%
Total Operating Expenses 2,945 2,879 2,494 2.3% 15.4%
Operating Income 259 253 248 2.4% 2.0%
Operating Margin 8.1% 8.1% 9.0%
Bookings $2,529 $3,204 $4,900 -21.1% -34.6%
Total Backlog 4,360 5,137 5,636 -15.1% -8.9%
IIS is a leading provider of intelligence and information solutions specializing in ground processing, unmanned ground
systems, cybersecurity solutions, homeland/civil security and other markets to resolve the most complex problems for its
customers worldwide. Approximately half of its business is for classified customers. Other key customers include the U.S.
Intelligence Community, DoD agencies, the Federal Bureau of Investigations (FBI), the National Oceanographic and
Atmospheric Association (NOAA), and the United Kingdom Home Office.
Total Net Sales and Total Operating Expenses—The increase in net sales of $72 million in 2009 was primarily due to $114
million of higher net sales on three major classified programs and $29 million of higher net sales on a U.S. Air Force
program, principally from higher volume driven by additional task orders from expanded customer scope, partially offset
by $98 million of lower net sales on an international advanced border control and security program, principally from
lower volume as subcontractor work related to the initial development phase was completed in June 2009. The increase in
operating expenses of $66 million in 2009 was driven primarily by the activity in the programs described above.
The increase in net sales in 2008 of $390 million was primarily due to $211 million of higher net sales, principally from
higher volume on an international advanced border control and security program awarded in the fourth quarter of 2007,
principally from subcontractor work related to the initial development phase and $98 million of higher net sales,
principally from higher volume on a competitive design program for the U.S. Air Force’s next generation global
positioning ground system awarded in the fourth quarter of 2007. The increase in operating expenses of $385 million in
2008 was driven primarily by the activity in the programs described above.
Operating Income and Margin—The increase in operating income of $6 million in 2009 was primarily due to lower
cybersecurity related acquisition costs and investments, which had a $12 million impact on operating income. Operating
48