Raytheon 2011 Annual Report Download - page 125

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
117
Intersegment Sales (In millions)
Integrated Defense Systems
Intelligence and Information Systems
Missile Systems
Network Centric Systems
Space and Airborne Systems
Technical Services
Total
2011
$ 68
13
61
461
510
763
$ 1,876
2010
$ 88
14
94
502
586
739
$ 2,023
2009
$ 126
19
57
481
611
710
$ 2,004
We must calculate our pension and post retirement benefit 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 and postretirement plans that we determine by other factors. CAS prescribes the
allocation to and recovery of pension and other postretirement costs on U.S. Government contracts. The results of each segment
only include pension and postretirement 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 and postretirement cost. The FAS/CAS Adjustment, which is reported as a separate line in our segment results above,
represents the difference between our pension and PRB expense or income under FAS requirements under GAAP and our
pension and PRB expense under CAS.
Operating Income (In millions)
Integrated Defense Systems
Intelligence and Information Systems
Missile Systems
Network Centric Systems
Space and Airborne Systems
Technical Services
FAS/CAS Adjustment
Corporate and Eliminations
Total
2011
$ 836
159
693
667
717
312
(337)
(190)
$ 2,857
2010
$ 870
(157)
650
692
676
297
(187)
(234)
$ 2,607
2009
$ 847
252
599
663
635
212
80
(246)
$ 3,042
The components of operating income related to Corporate and Eliminations were as follows:
(In millions)
Intersegment profit eliminations
Corporate
Total
2011
$(177)
(13)
$(190)
2010
$(189)
(45)
$(234)
2009
$(173)
(73)
$(246)
Intersegment Operating Income (In millions)
Integrated Defense Systems
Intelligence and Information Systems
Missile Systems
Network Centric Systems
Space and Airborne Systems
Technical Services
Total
2011
$ 5
1
8
46
47
70
$ 177
2010
$ 6
1
14
43
56
69
$ 189
2009
$ 8
2
7
41
52
63
$ 173