Raytheon 2015 Annual Report Download - page 71

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The bookings decrease of $586 million in 2014 compared to 2013 was driven primarily by lower bookings in our EWS and
TAS product lines, partially offset by higher bookings in our ISRS product line. In 2014, SAS booked SAS booked $267
million to provide radar subsystems for the U.S. Navy, $197 million to provide radar components for an international customer,
$105 million for Advanced Targeting Forward Looking Infrared (ATFLIR) pods and spares for the U.S. Navy and international
customers, $92 million on an optical sensor satellite program for a commercial customer, $81 million for software enhancements
for the AESA radars for the U.S. Air Force, and $76 million on the NMT program. SAS also booked $1,320 million on a
number of classified contracts.
In 2013, SAS booked $825 million on radar contracts for international customers, $210 million to provide Multi-Spectral
Targeting Systems (MTS) for unmanned aerial vehicles to the U.S. Air Force, and $132 million for the NMT program for the
U.S. Navy. SAS also booked $862 million on a number of classified contracts.
Forcepoint
% Change
(In millions, except percentages) 2015 2014 2013
2015
compared
to 2014
2014
compared
to 2013
Total net sales $ 328 $ 104 $ 87 NM 19.5 %
Total operating expenses
Cost of sales 62 24 25 NM (4.0)%
Selling and marketing 109 19 15 NM 26.7 %
Research and development 87 35 24 NM 45.8 %
General and administrative 40 15 10 NM 50.0 %
Total operating expenses 298 93 74 NM 25.7 %
Operating income (loss) $ 30 $ 11 $ 13 NM (15.4)%
Operating margin 9.1% 10.6% 14.9%
NM = Not meaningful
% Change
(In millions, except percentages) 2015 2014 2013
2015
compared
to 2014
2014
compared
to 2013
Bookings $ 352 $ 101 $ 82 NM 23.2%
Total Backlog 479 52 45 NM 15.6%
NM = Not meaningful
Forcepoint, formerly known as Raytheon|Websense, is a global provider of information technology security products and
related services designed to protect commercial and government organizations and their customers and other users from
external and internal threats, including modern cyber-threats, advanced malware attacks, information leaks, legal liability and
productivity loss. Forcepoint is a joint venture company (with Vista Equity Partners) created in May 2015 through a series of
transactions by which Raytheon acquired Websense from Vista Equity Partners and combined it with RCP, formerly part of
the IIS segment, and then sold a minority interest in the combined company to Vista Equity Partners. The new company
combines Raytheon's advanced cybersecurity technologies and Websense's industry-leading TRITON platform to provide
defense-grade cybersecurity solutions to domestic and international customers.
Total Net Sales—Total net sales for the segment are net sales before any reduction for the acquisition accounting adjustments
to record deferred revenue at fair value. The increase in total net sales of $224 million in 2015 compared to 2014 was primarily
due to $221 million of higher sales resulting from the acquisition of Websense. Total net sales excluded the unfavorable impact
of $61 million and less than $1 million, in 2015 and 2014, respectively, related to the deferred revenue adjustment described
below in Forcepoint Acquisition Accounting Adjustments.