Raytheon 2010 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2010 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 135

  • 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 7: Other Assets, Net
Other assets, net consisted of the following at December 31:
(In millions) 2010 2009
Long-term receivables
Due from customers in installments to 2015 $46$23
Other 21 23
Computer software, net 372 392
Investments 82 67
Prepaid retiree benefits 105 111
Other noncurrent assets, net 820 764
Total $1,446 $1,380
We previously sold undivided interests in general aviation finance receivables, while retaining subordinated interests in
and servicing rights to the receivables. At December 31, 2009, the outstanding balance of securitized accounts receivable
held by the third party conduit totaled $73 million, of which our subordinated retained interest, which is included in
other noncurrent assets, net in the table above, was $67 million. The underlying aircraft serve as collateral for these
accounts receivable.
As previously described in Note 2: Accounting Standards, in January 2010, we consolidated our QSPE, GARC, which did
not have a material impact on our consolidated financial statements and resulted in:
ⳮThe removal of our $67 million investment in GARC, previously reported in other assets, net, and
ⳮThe addition of long and short-term notes receivable, net, of $68 million, current notes payable of $2 million, and an
increase in retained earnings of less than $1 million, net of tax.
The notes payable were paid off in the first quarter of 2010.
Computer software, net consisted of the following at December 31:
(In millions) 2010 2009
Computer software $1,040 $ 970
Accumulated amortization (668) (578)
Total $ 372 $ 392
Computer software amortization expense was $88 million in 2010, $86 million in 2009 and $79 million in 2008.
Other intangible assets, net, included in the table above in other noncurrent assets, net, consisted of the following at
December 31:
(In millions) 2010 2009
Other intangible assets $ 247 $217
Accumulated amortization (108) (80)
Total $139 $137
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 $28 million in 2010, $17 million in 2009 and $19 million
in 2008.
Computer software and other intangible asset amortization expense is expected to approximate $100 million for each of
the next five years.
84