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Segment Financial Data
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Financial Data
Our operations, for the periods presented herein, are classified into four principal segments: Collins, Pratt & Whitney, RIS and RMD. The segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services.
We present a FAS/CAS operating adjustment outside of segment results, which represents the difference between the service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. Generally Accepted Accounting Principles (GAAP) and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our RIS and RMD segments. While the ultimate liability for pension and PRB costs under FAS and CAS is similar, the pattern of cost recognition is different. Over time, we generally expect to recover the related RIS and RMD pension and PRB liabilities through the pricing of our products and services to the U.S. government. Collins and Pratt & Whitney generally record pension and PRB expense on a FAS basis.
Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions and the amortization of customer contractual obligations related to loss making or below market contracts acquired. These adjustments are not considered part of management’s evaluation of segment results.
Total sales and operating profit by segment include inter-segment sales which are generally recorded at cost-plus a specified fee or at a negotiated fixed price. These pricing arrangements may result in margins different than what the purchasing segment realizes on the ultimate third-party sale. Results for the quarters ended March 31, 2022 and 2021 are as follows:
Net SalesOperating ProfitOperating Profit Margins
(dollars in millions)202220212022202120222021
Collins Aerospace Systems$4,824 $4,370 $440 $314 9.1 %7.2 %
Pratt & Whitney4,529 4,030 151 20 3.3 %0.5 %
Raytheon Intelligence & Space3,572 3,765 378 388 10.6 %10.3 %
Raytheon Missiles & Defense3,527 3,793 387 496 11.0 %13.1 %
Total segment16,452 15,958 1,356 1,218 8.2 %7.6 %
Eliminations and other(1)
(736)(707)(34)(31)
Corporate expenses and other unallocated items (2)
— — (136)(81)
FAS/CAS operating adjustment— — 378 423 
Acquisition accounting adjustments— — (484)(516)
Consolidated$15,716 $15,251 $1,080 $1,013 6.9 %6.6 %
(1)    Includes the operating results of certain smaller non-reportable business segments.
(2)    Includes the net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project.
We disaggregate our contracts from customers by geographic region based on customer location, by customer and by sales type. Our geographic region based on customer location uses end user customer location where known or practical to determine, or in instances where the end user customer is not known or not practical to determine, we utilize “ship to” location as the customer location. In addition, for our RIS and RMD segments, we disaggregate our contracts from customers by contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.
Segment sales disaggregated by geographic region for the quarters ended March 31, 2022 and 2021 are as follows:
20222021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$2,249 $2,312 $2,866 $2,299 $4 $9,730 $2,242 $2,159 $2,965 $2,357 $7 $9,730 
Europe1,314 879 107 272 — 2,572 1,079 626 114 327 1 2,147 
Asia Pacific497 873 163 324 — 1,857 405 793 204 370 — 1,772 
Middle East and North Africa112 78 81 558 — 829 95 104 133 660 — 992 
Canada and All Other293 387 36 12 — 728 217 348 29 16 — 610 
Consolidated net sales4,465 4,529 3,253 3,465 4 15,716 4,038 4,030 3,445 3,730 8 15,251 
Inter-segment sales359 — 319 62 (740)— 332 — 320 63 (715)— 
Business segment sales$4,824 $4,529 $3,572 $3,527 $(736)$15,716 $4,370 $4,030 $3,765 $3,793 $(707)$15,251 
Segment sales disaggregated by customer for the quarters ended March 31, 2022 and 2021 are as follows:
20222021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
U.S. government (1)
$1,051 $1,174 $2,812 $2,297 $4 $7,338 $1,222 $1,262 $2,900 $2,357 $7 $7,748 
Foreign military sales through the U.S. government54 197 160 765 — 1,176 40 242 208 805 — 1,295 
Foreign government direct commercial sales251 103 204 401 — 959 245 139 229 567 — 1,180 
Commercial aerospace and other commercial3,109 3,055 77 2 — 6,243 2,531 2,387 108 1 1 5,028 
Consolidated net sales4,465 4,529 3,253 3,465 4 15,716 4,038 4,030 3,445 3,730 8 15,251 
Inter-segment sales359 — 319 62 (740)— 332 — 320 63 (715)— 
Business segment sales$4,824 $4,529 $3,572 $3,527 $(736)$15,716 $4,370 $4,030 $3,765 $3,793 $(707)$15,251 
(1)    Excludes foreign military sales through the U.S. government.
Segment sales disaggregated by sales type for the quarters ended March 31, 2022 and 2021 are as follows:
20222021
(dollars in millions)Collins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace SystemsPratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$3,482 $2,633 $2,604 $3,139 $4 $11,862 $3,182 $2,423 $2,676 $3,375 $8 $11,664 
Services983 1,896 649 326 — 3,854 856 1,607 769 355 — 3,587 
Consolidated net sales4,465 4,529 3,253 3,465 4 15,716 4,038 4,030 3,445 3,730 8 15,251 
Inter-segment sales359 — 319 62 (740)— 332 — 320 63 (715)— 
Business segment sales$4,824 $4,529 $3,572 $3,527 $(736)$15,716 $4,370 $4,030 $3,765 $3,793 $(707)$15,251 
RIS and RMD segment sales disaggregated by contract type for the quarters ended March 31, 2022 and 2021 are as follows:
20222021
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$1,340 $2,075 $1,471 $2,251 
Cost-type1,913 1,390 1,974 1,479 
Consolidated net sales3,253 3,465 3,445 3,730 
Inter-segment sales319 62 320 63 
Business segment sales$3,572 $3,527 $3,765 $3,793