Raytheon 2014 Annual Report Download - page 126

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
117
The tax expense (benefit) related to discontinued operations was $23 million, $(5) million and $1 million in 2014, 2013 and
2012, respectively.
Note 15: Business Segment Reporting
Our reportable segments, organized based on capabilities and technologies, are: IDS; IIS; MS; and SAS.
IDS is a leader in integrated air and missile defense; radar solutions; naval combat and ship electronic systems; command,
control, communications, computers and intelligence (C4I) solutions; and international and domestic Air Traffic Management
(ATM) 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 provides a full range of technical and professional services to intelligence, defense, federal and commercial customers
worldwide. IIS specializes in global Intelligence, Surveillance and Reconnaissance (ISR), navigation, DoD space and weather
solutions, cybersecurity, analytics, training, logistics, mission support, and engineering and sustainment solutions.
MS is a premier developer and producer of missile and combat 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,
surveillance, 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, directed energy effectors and advanced
combat sensor solutions.
SAS is a leader in the design and development of integrated sensor and communication systems 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 EO/IR sensors, airborne
radars for surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems,
processors, electronic warfare systems, communication systems, and space-qualified systems for civil and military
applications.
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.
Segment financial results were as follows:
Total Net Sales (in millions) 2014 2013 2012
Integrated Defense Systems $ 6,085 $ 6,489 $ 6,492
Intelligence, Information and Services 5,984 6,045 6,335
Missile Systems 6,309 6,599 6,639
Space and Airborne Systems 6,072 6,371 6,823
Corporate and Eliminations (1,624)(1,798)(1,875)
Total $22,826 $23,706 $24,414
Intersegment Sales (in millions) 2014 2013 2012
Integrated Defense Systems $ 107 $ 107 $ 91
Intelligence, Information and Services 829 817 784
Missile Systems 140 163 161
Space and Airborne Systems 548 711 839
Total $ 1,624 $ 1,798 $ 1,875