Raytheon 2009 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Computer software, net consisted of the following at December 31:
(In millions) 2009 2008
Computer software $ 970 $ 908
Accumulated amortization (578) (496)
Total $ 392 $ 412
Computer software amortization expense was $86 million in 2009, $79 million in 2008 and $75 million in 2007.
Other intangible assets, net, included in the table above in other noncurrent assets, net, consisted of the following at
December 31:
(In millions) 2009 2008
Other intangible assets $217 $130
Accumulated amortization (80) (59)
Total $137 $71
Other intangible assets consisted primarily of drawings and intellectual property, which are included in other noncurrent
assets, net. Amortization expense for these intangible assets was $17 million in 2009, $19 million in 2008 and $9 million
in 2007. Computer software and other intangible assets amortization expense is expected to approximate $100 million for
each of the next five years.
Investments, which are included in other assets, net consisted of the following at December 31:
(In millions, except percentages) Ownership % 2009 2008
Equity method investments
Thales-Raytheon Systems Co. Ltd. (TRS) 50 $56 $65
Other various 37
59 72
Other investments 86
Total $67 $78
In general, we record our share of the income or loss in our equity method investments as a component of cost of sales.
We only record losses beyond the carrying amount of the investment when we guarantee obligations of the investee or
commit to provide the investee further financial support.
In addition, we have entered into certain joint ventures formed specifically to facilitate a teaming arrangement between
two contractors for the benefit of the customer, generally the U.S. Government, whereby we receive a subcontract from
the joint venture in the joint venture’s capacity as prime contractor. Accordingly, we record the work we perform for the
joint venture as an operating activity.
In 2001, we formed a joint venture, TRS, which we account for using the equity method. TRS is a system of systems
integrator and provides fully customized solutions through the integration of command and control centers, radars and
communication networks. TRS has two major operating subsidiaries, one of which, Thales-Raytheon Systems Co. LLC
(TRS LLC), we control and consolidate and is a component of our NCS segment, and the other one, Thales-Raytheon
Systems Company S.A.S. (TRS SAS), which we account for using the equity method through our investment in TRS. Of
the $56 million investment in TRS, $44 million represents undistributed earnings at December 31, 2009.
In 2009, we adopted the required new accounting standard for noncontrolling interests. In accordance with the
accounting standard, we changed the accounting and reporting for our minority interests by recharacterizing them as
83