Raytheon 2012 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2012 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 144

  • 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
  • 141
  • 142
  • 143
  • 144

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
94
through litigation and, if successful, we would be entitled to recover substantially all of the amounts paid. We also have certain
tax obligations relating to disposed businesses.
As further described in Note 15: Income Taxes, during the year ended December 31, 2010, we recorded a $281 million
reduction in our unrecognized tax benefits, which included a decrease of $89 million in tax expense from discontinued
operations, including interest, primarily related to our previous disposition of Raytheon Engineers and Constructors (RE&C).
Note 5: Contracts in Process, Net
Contracts in process, net consisted of the following at December 31:
Cost-Type Fixed-Price Total
(In millions) 2012 2011 2012 2011 2012 2011
U.S. Government contracts (including foreign
military sales):
Billed $ 363 $ 397 $ 212 $ 218 $ 575 $ 615
Unbilled 956 865 8,890 10,185 9,846 11,050
Progress payments ——(6,870)(8,392)(6,870)(8,392)
1,319 1,262 2,232 2,011 3,551 3,273
Other customers:
Billed 11 17 545 551 556 568
Unbilled 27 31 1,072 1,327 1,099 1,358
Progress payments ——(659)(666)(659)(666)
38 48 958 1,212 996 1,260
Allowance for doubtful accounts — — (4)(7)(4)(7)
Total contracts in process, net $ 1,357 $ 1,310 $ 3,186 $ 3,216 $ 4,543 $ 4,526
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, 2012 was $120 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, 2012,
retentions were $38 million. We anticipate collecting $22 million of these retentions in 2013 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) 2012 2011
Land $ 104 $ 105
Buildings and improvements 2,503 2,423
Machinery and equipment 3,533 3,440
6,140 5,968
Accumulated depreciation and amortization (4,154)(3,962)
Total $ 1,986 $ 2,006
Depreciation and amortization expense of property, plant and equipment, net was $318 million, $314 million and $304 million
in 2012, 2011 and 2010, respectively.