Raytheon 2012 Annual Report Download - page 59

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51
Bookings (In millions) 2012 2011 2010
Integrated Defense Systems $ 4,668 $ 6,392 $ 3,269
Intelligence and Information Systems 2,756 3,217 3,709
Missile Systems 7,135 5,948 6,485
Network Centric Systems 4,089 3,632 4,034
Space and Airborne Systems 5,305 4,592 4,321
Technical Services 2,551 2,774 2,631
Total $26,504 $26,555 $ 24,449
Included in bookings were international bookings of $5,979 million, $7,692 million and $4,371 million in 2012, 2011 and
2010, respectively, which included foreign military bookings through the U.S. Government. International bookings amounted
to 23%, 29% and 18% of total bookings in 2012, 2011 and 2010, respectively.
We record bookings for not-to-exceed contract awards based on reasonable estimates of expected contract definitization,
which will generally not be less than 75% of the award. We subsequently adjust bookings to reflect the actual amounts
definitized, or, when prior to definitization, when facts and circumstances indicate that our previously estimated amounts are
no longer reasonable. The timing of awards that may cover multiple fiscal years influences the size of bookings in each year.
Bookings exclude unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite delivery/
indefinite quantity (IDIQ) type contracts), and are reduced for contract cancellations and terminations of bookings recognized
in the current year. We reflect contract cancellations and terminations from prior year bookings, as well as the impact of
changes in foreign exchange rates, directly as an adjustment to backlog in the period in which the cancellation or termination
occurs and the impact is determinable.
Funded Backlog Total Backlog
Backlog at December 31 (In millions) 2012 2011 2010 2012 2011 2010
Integrated Defense Systems $ 7,313 $ 7,100 $ 6,433 $ 9,431 $ 9,766 $ 8,473
Intelligence and Information Systems 1,067 829 725 3,989 4,366 4,319
Missile Systems 6,939 6,205 6,385 10,030 8,570 8,212
Network Centric Systems 3,583 3,267 3,740 4,364 4,160 4,912
Space and Airborne Systems 3,409 3,104 3,266 6,031 5,864 5,981
Technical Services 1,736 1,957 2,083 2,336 2,586 2,654
Total $24,047 $22,462 $ 22,632 $ 36,181 $35,312 $34,551
Total backlog includes both funded backlog (unfilled orders for which funding is authorized, appropriated and contractually
obligated by the customer) and unfunded backlog (firm orders for which funding has not been appropriated and/or contractually
obligated by the customer). Revenue is generally not recognized on backlog until funded. Backlog excludes unexercised
contract options and potential orders under ordering-type contracts (e.g., IDIQ). Both funded and unfunded backlog are affected
by changes in foreign exchange rates. In 2010, IIS recorded a net backlog adjustment of $556 million as a result of the UKBA
Program.