Raytheon 2014 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 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

55
Intelligence, Information and Services
% Change
(In millions, except percentages) 2014 2013 2012
2014
compared
to 2013
2013
compared
to 2012
Total Net Sales $ 5,984 $ 6,045 $ 6,335 (1.0)% (4.6)%
Total Operating Expenses
Cost of sales—labor 2,231 2,345 2,417 (4.9)% (3.0)%
Cost of sales—materials and subcontractors 2,506 2,521 2,669 (0.6)% (5.5)%
Other cost of sales and other operating expenses 739 669 713 10.5 % (6.2)%
Total Operating Expenses 5,476 5,535 5,799 (1.1)% (4.6)%
Operating Income $ 508 $ 510 $ 536 (0.4)% (4.9)%
Operating Margin 8.5% 8.4% 8.5%
Change in Operating Income (in millions)
Year
Ended
2014
Versus
Year Ended
2013
Year Ended
2013
Versus Year
Ended 2012
Volume $(6)$(24)
Net change in EAC adjustments 4(17)
Mix and other performance —15
Total Change in Operating Income $(2)$(26)
% Change
(In millions, except percentages) 2014 2013 2012
2014
compared
to 2013
2013
compared
to 2012
Bookings $ 5,306 $ 5,046 $ 5,470 5.2% (7.8)%
Total Backlog 5,877 5,856 6,409 0.4% (8.6)%
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. Key
customers include the U.S. Intelligence Community, the U.S. Armed Forces, the FAA, the National Oceanic and Atmospheric
Administration (NOAA), Department of Homeland Security (DHS), the National Aeronautics and Space Administration
(NASA) and an increasing number of international customers.
Total Net Sales—Total net sales in 2014 were relatively consistent with 2013. Included in total net sales was $151 million of
lower net sales on training programs supporting the U.S. Army's Warfighter FOCUS activities resulting from a decrease in
customer-determined activity levels. Also included in total net sales was $253 million of higher net sales on classified programs.
The remaining change in total net sales was spread across numerous programs primarily driven by the domestic budget
environment.
The decrease in total net sales of $290 million in 2013 compared to 2012 was primarily due to lower net sales of $97 million
on classified programs, lower net sales of $64 million on training programs supporting the U.S. Army’s Warfighter FOCUS
activities due to a decrease in customer determined activity levels, and lower net sales of $55 million on the National Science
Foundation (NSF) Polar program, which was completed in the first quarter of 2012.
Total Operating Expenses—Total operating expenses in 2014 were relatively consistent with 2013. Included in total operating
expenses was an increase in other cost of sales and other operating expenses of $70 million, primarily due to the timing of
costs applied to contracts through rates, which had an impact of $38 million.