Raytheon 2010 Annual Report Download - page 120

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Intersegment Sales (In millions) 2010 2009 2008
Integrated Defense Systems $88 $ 126 $ 162
Intelligence and Information Systems 14 19 22
Missile Systems 94 57 26
Network Centric Systems 502 481 379
Space and Airborne Systems 586 611 595
Technical Services 739 710 700
Total $2,023 $2,004 $1,884
Operating Income (In millions) 2010 2009 2008
Integrated Defense Systems $ 879 $ 859 $ 870
Intelligence and Information Systems (150) 259 253
Missile Systems 654 604 584
Network Centric Systems 701 674 575
Space and Airborne Systems 686 647 569
Technical Services 300 215 174
FAS/CAS Pension Adjustment (230) 27 (123)
Corporate and Eliminations (233) (243) (282)
Total $2,607 $3,042 $2,620
We must calculate our pension costs under both FAS requirements under GAAP and CAS. GAAP outlines the
methodology used to determine pension expense or income for financial reporting purposes, which is not indicative of
the funding requirements for pension plans that we determine by other factors. CAS prescribes the allocation to and
recovery of pension costs on U.S. Government contracts. The results of each segment only include pension expense as
determined under CAS. The CAS requirements for pension costs and its calculation methodology differ from the FAS
requirements and calculation methodology. As a result, while both FAS and CAS use long-term assumptions in their
calculation methodologies, each method results in different calculated amounts of pension cost. The FAS/CAS Pension
Adjustment, which we report as a separate line item in our segment results above, represents the difference between our
pension expense or income under FAS requirements under GAAP and our pension expense under CAS.
The components of operating income related to Corporate and Eliminations were as follows:
(In millions) 2010 2009 2008
Intersegment profit eliminations $(189) $(173) $(166)
Corporate (44) (70) (116)
Total $(233) $(243) $(282)
Intersegment Operating Income (In millions) 2010 2009 2008
Integrated Defense Systems $6$8$9
Intelligence and Information Systems 124
Missile Systems 14 72
Network Centric Systems 43 41 31
Space and Airborne Systems 56 52 56
Technical Services 69 63 64
Total $ 189 $ 173 $ 166
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