Raytheon 2010 Annual Report Download - page 91

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 5: Contracts in Process, Net
Contracts in process, net consisted of the following at December 31:
Cost-Type Fixed-Price Total
(In millions) 2010 2009 2010 2009 2010 2009
U.S. Government end-use contracts:
Billed $ 428 $ 570 $ 271 $ 291 $ 699 $ 861
Unbilled 1,050 960 9,074 8,431 10,124 9,391
Progress payments ——(7,739) (6,905) (7,739) (6,905)
1,478 1,530 1,606 1,817 3,084 3,347
Other customers:
Billed 14 6621 642 635 648
Unbilled 12 13 1,426 1,082 1,438 1,095
Progress payments ——(735) (588) (735) (588)
Total contracts in process 26 19 1,312 1,136 1,338 1,155
Allowance for doubtful accounts — — (8) (9) (8) (9)
Total contracts in process, net $1,504 $1,549 $ 2,910 $ 2,944 $ 4,414 $ 4,493
The U.S. Government has title to the assets related to unbilled amounts on contracts that provide progress payments.
Unbilled amounts are recorded under the percentage-of-completion method and are recoverable from the customer
upon shipment of the product, presentation of billings or completion of the contract. Included in unbilled at
December 31, 2010 was $172 million which is expected to be collected outside of one year.
Billed and unbilled contracts in process include retentions arising from contractual provisions. At December 31, 2010,
retentions were $50 million. We anticipate collecting $36 million of these retentions in 2011 and the balance thereafter.
Note 6: Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following at December 31:
(In millions) 2010 2009
Land $93$93
Buildings and leasehold improvements 2,394 2,293
Machinery and equipment 3,286 3,187
Equipment leased to others 71 82
5,844 5,655
Accumulated depreciation and amortization (3,841) (3,654)
Total $ 2,003 $ 2,001
Depreciation and amortization expense of property, plant and equipment, net was $304 million, $299 million and $292
million in 2010, 2009 and 2008, respectively. Accumulated depreciation on equipment leased to others was $34 million at
December 31, 2010 and December 31, 2009.
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