Raytheon 2012 Annual Report Download - page 129

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
121
Intersegment Sales (in millions) 2012 2011 2010
Integrated Defense Systems $ 79 $ 68 $ 88
Intelligence and Information Systems 13 13 14
Missile Systems 37 61 94
Network Centric Systems 427 461 502
Space and Airborne Systems 601 510 586
Technical Services 801 763 739
Total $ 1,958 $ 1,876 $ 2,023
Operating Income (in millions) 2012 2011 2010
Integrated Defense Systems $ 918 $ 836 $ 870
Intelligence and Information Systems 247 159 (157)
Missile Systems 719 693 650
Network Centric Systems 495 667 692
Space and Airborne Systems 784 717 676
Technical Services 282 312 297
FAS/CAS Adjustment (255)(337)(187)
Corporate and Eliminations (201)(217)(228)
Total $ 2,989 $ 2,830 $ 2,613
We must calculate our pension and other postretirement benefits (PRB) costs under both Financial Accounting Standards
(FAS) requirements under GAAP and U.S. Government cost accounting standards (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 PRB plans that we determine by other factors. CAS prescribes the allocation to and recovery
of pension and other PRB costs on U.S. Government contracts. The results of each segment only include pension and PRB
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 PRB 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 in accordance with GAAP and our pension and PRB expense under CAS.
The components of operating income related to Corporate and Eliminations were as follows:
(In millions) 2012 2011 2010
Intersegment profit eliminations $(191)$(177)$
(189)
Corporate (10)(40)(39)
Total $(201)$(217)$
(228)
Intersegment Operating Income (in millions) 2012 2011 2010
Integrated Defense Systems $7
$5$6
Intelligence and Information Systems 11 1
Missile Systems 98 14
Network Centric Systems 45 46 43
Space and Airborne Systems 55 47 56
Technical Services 74 70 69
Total $ 191 $ 177 $ 189