Raytheon 2014 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2014 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 142

  • 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
91
Note 5: Contracts in Process, Net
Contracts in process, net consisted of the following at December 31:
Cost-Type Fixed-Price Total
(In millions) 2014 2013 2014 2013 2014 2013
U.S. Government contracts (including foreign
military sales):
Billed $ 409 $ 490 $ 226 $ 374 $ 635 $ 864
Unbilled 810 787 8,418 8,139 9,228 8,926
Progress payments ——(5,834)(6,003)(5,834)(6,003)
1,219 1,277 2,810 2,510 4,029 3,787
Other customers:
Billed 14 16 393 343 407 359
Unbilled 27 22 1,127 1,411 1,154 1,433
Progress payments ——(601)(705)(601)(705)
41 38 919 1,049 960 1,087
Allowance for doubtful accounts — — (4)(4)(4)(4)
Total contracts in process, net $ 1,260 $ 1,315 $ 3,725 $ 3,555 $ 4,985 $ 4,870
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, 2014 was $190 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, 2014,
retentions were $50 million. We anticipate collecting $5 million of these retentions in 2015 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) 2014 2013
Land $ 103 $ 104
Buildings and improvements 2,607 2,547
Machinery and equipment 3,716 3,605
Property, plant and equipment, gross 6,426 6,256
Accumulated depreciation and amortization (4,491)(4,319)
Total $ 1,935 $ 1,937
Depreciation and amortization expense of property, plant and equipment, net was $301 million, $303 million and $318 million
in 2014, 2013 and 2012, respectively.