Raytheon 2010 Annual Report Download - page 62

command and control program for an international customer, $111 million for Horizontal Technology Integration (HTI)
forward-looking infrared kits for the U.S. Army, $104 million on the Navy Multiband Terminal (NMT) program for the
U.S. Navy and $96 million for Improved Thermal Sight Systems (ITSS) for an international customer.
The decrease in bookings of $1,005 million in 2009 was primarily due to awards for HTI forward-looking infrared kits,
the LRAS3, the Joint Precision Approach and Landing System (JPALS) contract and other programs in 2008 described
below. In 2009, NCS booked $446 million on an international classified program, $163 million for Improved Target
Acquisition Systems (ITAS), $146 million for HTI forward looking infrared kits, $127 million for a toll system
replacement program, $117 million for Commander’s Independent Viewers (CIV) and $107 million for the Secure
Mobile Anti-Jam Reliable Tactical Terminal (SMART-T) program.
In 2008, NCS booked $570 million to provide HTI forward-looking infrared kits and $279 million for the LRAS3 contract
for the U.S. Army. NCS also booked $233 million for the design and development phase of JPALS for the U.S. Navy, $231
million for the production of ITAS for the U.S. Army and Marine Corps and $115 million for the Airborne, Maritime and
Fixed Site (AMF) Joint Tactical Radio System (JTRS) program.
Space and Airborne Systems
% Change
(In millions, except percentages) 2010 2009 2008
2010
compared
to 2009
2009
compared
to 2008
Total Net Sales $4,830 $4,582 $4,280 5.4% 7.1%
Total Operating Expenses 4,144 3,935 3,711 5.3% 6.0%
Operating Income 686 647 569 6.0% 13.7%
Operating Margin 14.2% 14.1% 13.3%
Bookings $4,321 $4,446 $3,927 -2.8% 13.2%
Total Backlog 5,981 5,921 5,442 1.0% 8.8%
SAS is a leader in the design and development of integrated systems and solutions for advanced missions, including
traditional and non-traditional intelligence, surveillance and reconnaissance (ISR), precision engagement, unmanned
aerial operations and space. Leveraging advanced concepts, state-of-the-art technologies and mission systems knowledge,
SAS provides electro-optical/infrared sensors, airborne radars for surveillance and fire control applications, lasers,
precision guidance systems, processors, electronic warfare systems and space-qualified systems for civil and military
applications. Key customers include the U.S. Navy, Air Force and Army, as well as classified and international customers.
Total Net Sales and Total Operating Expenses—The increase in net sales of $248 million in 2010 compared to 2009 was
primarily due to $235 million of higher net sales from higher volume, as planned, as work increased on certain classified
business awarded principally in the first half of 2009, $87 million of higher net sales on a multi-spectral targeting system
program driven by increased planned production efforts to meet the program delivery schedule and $75 million of higher
net sales from higher volume, as planned, as production work increased on an international airborne tactical radar
program awarded in the first quarter of 2010. The increase in net sales was partially offset by $111 million of lower net
sales from lower volume, as planned, as an advanced targeting program moved toward completion. The increase in
operating expenses of $209 million in 2010 compared to 2009 was primarily driven by the activity described above.
The increase in net sales of $302 million in 2009 compared to 2008 was primarily due to $212 million of higher net sales,
principally from higher volume as work increased on certain classified business awarded in the second half of 2008 and in
the first quarter of 2009, $100 million of higher net sales, principally from higher volume on international airborne
tactical radar programs driven by increased production efforts as planned to meet the program delivery schedule and $93
million of higher net sales, principally on a multi-spectral targeting system program driven by increased production
efforts as planned to meet the program schedule. The increase in operating expenses of $224 million in 2009 compared to
2008 was primarily driven by the activity described above.
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