Raytheon 2012 Annual Report Download - page 128

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
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Note 16: Business Segment Reporting
Our reportable segments, organized based on capabilities and technologies, are: IDS; IIS; MS; NCS; SAS; and TS.
IDS is a leader in integrated air and missile defense, radar solutions, and naval combat and ship electronic systems. IDS
delivers combat-proven performance against the complete spectrum of airborne and ballistic missile threats and is a world
leader in the technology, development and production of sensors and mission systems.
IIS is a leader in global intelligence, surveillance and reconnaissance (ISR), advanced cyber solutions, and DoD space, weather
and environmental solutions.
MS is a premier developer and producer of missile systems for the armed forces of the U.S. and other allied nations. Leveraging
its capabilities in advanced airframes, guidance and navigation systems, high-resolution sensors, targeting, and netted systems,
MS develops and supports a broad range of advanced weapon systems, including missiles, smart munitions, close-in weapon
systems, projectiles, kinetic kill vehicles and directed energy effectors.
NCS leverages the capabilities of the network through communications, sensors, and command and control systems, to develop
and produce customer solutions for land combat modernization, international and domestic Air Traffic Management (ATM)
and other transportation systems, military and civil communications, and homeland security.
SAS is a leader in the design and development of integrated systems and solutions for advanced missions, including traditional
and non-traditional ISR, precision engagement, unmanned aerial operations, and space. Leveraging advanced concepts, state-
of-the-art technologies and mission systems knowledge, SAS provides electro-optical/infrared sensors, airborne radars for
surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems, processors,
electronic warfare systems and space-qualified systems for civil and military applications.
TS provides a full spectrum of technical 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.
Segment total net sales and operating income generally include intersegment sales and profit recorded at cost plus a specified
fee, which may differ from what the selling entity would be able to obtain on sales to external customers. 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.
During the three months ended April 1, 2012, we completed the disposal or abandonment of the remaining individual assets
of our former turbo-prop commuter aircraft portfolio, Raytheon Airline Aviation Services (RAAS), and all operations have
ceased. As a result, we have reported the results of RAAS, which were formerly included in Corporate and Eliminations, as
a discontinued operation for all periods presented.
Segment financial results were as follows:
Total Net Sales (in millions) 2012 2011 2010
Integrated Defense Systems $ 5,037 $ 4,958 $ 5,470
Intelligence and Information Systems 3,012 3,015 2,757
Missile Systems 5,693 5,590 5,732
Network Centric Systems 4,058 4,497 4,918
Space and Airborne Systems 5,333 5,255 4,830
Technical Services 3,239 3,353 3,472
Corporate and Eliminations (1,958)(1,877)(2,029)
Total $24,414 $24,791 $ 25,150