Raytheon 2012 Annual Report Download - page 49

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41
CONSOLIDATED RESULTS OF OPERATIONS
Selected consolidated results were as follows:
% of Total Net Sales
(In millions, except percentages and per share data) 2012 2011 2010 2012 2011 2010
Net sales
Products $20,380 $20,725 $ 21,363 83.5% 83.6% 84.9%
Services 4,034 4,066 3,787 16.5% 16.4% 15.1%
Total net sales 24,414 24,791 25,150 100.0% 100.0% 100.0%
Operating expenses
Cost of sales
Products 15,712 16,245 17,000 64.4% 65.5% 67.6%
Services 3,380 3,419 3,273 13.8% 13.8% 13.0%
Total cost of sales 19,092 19,664 20,273 78.2% 79.3% 80.6%
Administrative and selling expenses 1,629 1,672 1,639 6.7% 6.7% 6.5%
Research and development expenses 704 625 625 2.9% 2.5% 2.5%
Total operating expenses 21,425 21,961 22,537 87.8% 88.6% 89.6%
Operating income 2,989 2,830 2,613 12.2% 11.4% 10.4%
Non-operating (income) expense, net
Interest expense 201 172 126
Interest income (9) (14)(12)
Other expense (income), net 18 12 65
Total non-operating (income) expense, net 210 170 179
Federal and foreign income taxes 878 782 590
Income from continuing operations 1,901 1,878 1,844
Income (loss) from discontinued operations, net of
tax (1) 18 35
Net income 1,900 1,896 1,879
Less: Net income attributable to noncontrolling
interests in subsidiaries 12 30 39
Net income attributable to Raytheon Company $ 1,888 $ 1,866 $ 1,840
Diluted earnings per share from continuing
operations attributable to Raytheon Company
common stockholders $ 5.65 $ 5.22 $ 4.79
Diluted earnings (loss) per share from discontinued
operations attributable to Raytheon Company
common stockholders —0.05 0.09
Diluted earnings per share attributable to Raytheon
Company common stockholders 5.65 5.28 4.88
Total Net Sales
The composition of external net sales by products and services for each segment in 2012 was approximately the following:
External Net Sales by Products and Services (% of segment total external net sales)
IDS IIS MS NCS SAS TS
Products 95% 75% 100% 90% 90% 15%
Services 5% 25% —% 10% 10% 85%
Total Net Sales - 2012 vs. 2011—The decrease in total net sales of $377 million in 2012 compared to 2011 was primarily due
to lower external net sales of $405 million at NCS. The decrease in external net sales at NCS was primarily due to lower net
sales on U.S. Army sensor programs driven principally by planned declines in production, on certain radio and communications