Raytheon 2011 Annual Report Download - page 67

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59
Technical Services
(In millions, except percentages)
Total Net Sales
Operating Expenses
Cost of sales - labor
Cost of sales - materials and subcontractors
Other cost of sales and other operating expenses
Total Operating Expenses
Operating Income
Operating Margin
2011
$ 3,353
1,100
1,664
277
3,041
$ 312
9.3%
2010
$ 3,472
998
1,903
274
3,175
$ 297
8.6%
2009
$ 3,161
955
1,714
280
2,949
$ 212
6.7%
% Change
2011
compared
to 2010
(3.4)%
10.2 %
(12.6)%
1.1 %
(4.2)%
5.1 %
2010
compared
to 2009
9.8 %
4.5 %
11.0 %
(2.1)%
7.7 %
40.1 %
Change in Operating Income
(In millions)
Volume
Net change in EAC adjustments
Mix and other performance
Total change in operating income
(In millions, except percentages)
Bookings
Total Backlog
2011
$ 2,774
2,586
Year
Ended
2011
Versus
Year Ended
2010
Change
$(9)
11
13
$ 15
2010
$ 2,631
2,654
Year Ended
2010
Versus Year
Ended 2009
Change
$ 18
36
31
$ 85
2009
$ 2,633
2,773
% Change
2011
compared
to 2010
5.4 %
(2.6)%
2010
compared
to 2009
(0.1)%
(4.3)%
TS provides a full spectrum of technical, scientific and professional services to defense, federal, international and commercial
customers worldwide. It specializes in training, logistics, engineering services and solutions, product and operational support
services for the mission support, homeland security, space, civil aviation, counter proliferation and counterterrorism markets.
Key customers include all branches of the U.S. Armed Forces, as well as the Department of Homeland Security (DHS),
National Aeronautics and Space Administration (NASA), Federal Aviation Administration (FAA), Department of State (DOS),
Department of Energy (DOE), Defense Threat Reduction Agency (DTRA), international governments and commercial entities.
Total Net Sales—The decrease in net sales of $119 million in 2011 compared to 2010 was primarily due to $76 million of
lower net sales on a DTRA program which completed significant efforts at the end of 2010 and $60 million of lower net sales
on training programs, principally domestic training programs supporting the U.S. Army's Warfighter FOCUS activities due
to a decrease in customer determined activity levels, partially offset by $45 million of higher net sales on various depot services
operations programs, driven primarily by new contract awards.
The increase in net sales of $311 million in 2010 compared to 2009 was primarily due to $232 million of higher net sales from
growth on training programs, principally domestic and foreign training programs supporting the U.S. Army’s Warfighter
FOCUS activities due to an increase in customer determined activity levels, and $53 million of higher net sales from programs
with the Transportation Security Administration (TSA), driven primarily by system integration efforts on a program awarded
in the first quarter of 2010.