Raytheon 2011 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2011 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 140

  • 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
  • 136
  • 137
  • 138
  • 139
  • 140

62
The components of the FAS/CAS PRB Adjustment were as follows:
(In millions)
FAS (expense) income
CAS expense
FAS/CAS PRB Adjustment
2011
$(13)
16
$ 3
2010
$ 11
32
$ 43
2009
$ 11
42
$ 53
The change in the FAS/CAS PRB Adjustment of $40 million in 2011 compared to 2010 was primarily due to the expiration
of historical amortization under FAS of previous benefit modifications.
The FAS/CAS PRB Adjustment in 2010 remained relatively consistent when compared to 2009.
Corporate and Eliminations
Corporate and Eliminations includes corporate expenses and intersegment sales and profit eliminations. Corporate expenses
represent unallocated costs and certain other corporate costs not considered part of management’s evaluation of reportable
segment operating performance, including the net costs associated with our residual commuter aircraft portfolio.
The components of total net sales related to Corporate and Eliminations were as follows:
(In millions)
Intersegment sales eliminations
Corporate
Total
2011
$(1,876)
65
$(1,811)
2010
$(2,023)
27
$(1,996)
2009
$(2,004)
30
$(1,974)
The increase in Corporate net sales of $38 million in 2011 compared to 2010 was primarily due to higher sales of residual
commuter aircraft. Total net sales related to corporate in 2010 remained relatively consistent with 2009.
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)
Operating income in 2011 decreased $44 million when compared to 2010. Corporate operating income was positively impacted
by $27 million in 2011, due to the results from our residual commuter aircraft portfolio. Total net sales and operating income
related to corporate in 2010 remained relatively consistent with 2009.
In the first quarter of 2012, we completed the final wind down of our residual turbo-prop commuter aircraft portfolio (Raytheon
Airline Aviation Services), including disposal or abandonment of the remaining individual assets, and all operations have
ceased. As such, the results of operations will be reclassified to discontinued operations in the first quarter of 2012. The sale
of the remaining operating assets in the first quarter of 2012 resulted in a gain of less than $1 million. The revenues, operating
income and cash flows associated with such aircraft portfolio for the years ended December 31, 2011, 2010 and 2009 are
presented in the table below.
(In millions)
Revenue
Operating Income
Cash Flow
2011
$ 66
27
86
2010
$ 33
(6)
39
2009
$ 38
(13)
47