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Segment Financial Data
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Disclosure
Note 17: 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. Effective July 1, 2023, we streamlined the structure of our core businesses from four principal business segments to three principal business segments: Collins Aerospace, Pratt & Whitney, and Raytheon. All segment information included in this Form 10-Q is reflective of the four segments of Collins, Pratt & Whitney, RIS, and RMD in accordance with the management structure in place as of June 30, 2023. See “Note 20: Subsequent Events” for additional information.
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, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment. 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 June 30, 2023 and 2022 are as follows:
Net SalesOperating ProfitOperating Profit Margins
(dollars in millions)202320222023202220232022
Collins Aerospace$5,850 $5,011 $821 $546 14.0 %10.9 %
Pratt & Whitney5,701 4,969 230 302 4.0 %6.1 %
Raytheon Intelligence & Space3,655 3,570 291 315 8.0 %8.8 %
Raytheon Missiles & Defense4,000 3,558 415 348 10.4 %9.8 %
Total segment19,206 17,108 1,757 1,511 9.1 %8.8 %
Eliminations and other(1)
(891)(794)(60)(47)
Corporate expenses and other unallocated items(2)
— — (59)(42)
FAS/CAS operating adjustment— — 309 379 
Acquisition accounting adjustments— — (489)(448)
Consolidated$18,315 $16,314 $1,458 $1,353 8.0 %8.3 %
(1)    Includes the operating results of certain smaller non-reportable business segments.
(2)    2022 included the net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project. Beginning in 2023, LTAMDS results are included in the RMD segment.
Results for the six months ended June 30, 2023 and 2022 are as follows:
Net SalesOperating ProfitOperating Profit Margins
(dollars in millions)202320222023202220232022
Collins Aerospace $11,431 $9,835 $1,615 $986 14.1 %10.0 %
Pratt & Whitney10,931 9,498 645 453 5.9 %4.8 %
Raytheon Intelligence & Space7,220 7,142 615 693 8.5 %9.7 %
Raytheon Missiles & Defense7,671 7,085 743 735 9.7 %10.4 %
Total segment37,253 33,560 3,618 2,867 9.7 %8.5 %
Eliminations and other (1)
(1,724)(1,530)(47)(81)
Corporate expenses and other unallocated items (2)
— — (102)(178)
FAS/CAS operating adjustment— — 623 757 
Acquisition accounting adjustments— — (982)(932)
Consolidated$35,529 $32,030 $3,110 $2,433 8.8 %7.6 %
(1)    Includes the operating results of certain smaller non-reportable business segments.
(2)    2022 included the net expenses related to the U.S. Army’s LTAMDS project. Beginning in 2023, LTAMDS results are included in the RMD segment.
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 June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$2,785 $2,847 $2,867 $2,727 $1 $11,227 $2,458 $2,562 $2,852 $2,313 $— $10,185 
Europe1,506 1,345 109 326 — 3,286 1,270 1,057 103 248 — 2,678 
Asia Pacific568 972 214 355 — 2,109 455 825 190 338 — 1,808 
Middle East and North Africa176 104 44 527 — 851 119 112 62 576 — 869 
Other361 433 29 19 — 842 305 413 38 18 — 774 
Consolidated net sales5,396 5,701 3,263 3,954 1 18,315 4,607 4,969 3,245 3,493 — 16,314 
Inter-segment sales454 — 392 46 (892)— 404 — 325 65 (794)— 
Business segment sales$5,850 $5,701 $3,655 $4,000 $(891)$18,315 $5,011 $4,969 $3,570 $3,558 $(794)$16,314 
Segment sales disaggregated by geographic region for the six months ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
United States$5,433 $5,478 $5,673 $5,186 $5 $21,775 $4,707 $4,874 $5,718 $4,612 $4 $19,915 
Europe2,964 2,465 217 630 — 6,276 2,584 1,936 210 520 — 5,250 
Asia Pacific1,124 1,877 427 731 — 4,159 952 1,698 353 662 — 3,665 
Middle East and North Africa332 214 80 988 — 1,614 231 190 143 1,134 — 1,698 
Other706 896 60 43 — 1,705 598 800 74 30 — 1,502 
Consolidated net sales10,559 10,930 6,457 7,578 5 35,529 9,072 9,498 6,498 6,958 4 32,030 
Inter-segment sales872 1 763 93 (1,729)— 763 — 644 127 (1,534)— 
Business segment sales$11,431 $10,931 $7,220 $7,671 $(1,724)$35,529 $9,835 $9,498 $7,142 $7,085 $(1,530)$32,030 
Segment sales disaggregated by type of customer for the quarters ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins Aerospace Pratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Sales to the U.S. government (1)
$1,112 $1,313 $2,809 $2,723 $1 $7,958 $1,023 $1,417 $2,805 $2,314 $— $7,559 
Foreign military sales through the U.S. government41 352 144 704 — 1,241 53 304 149 675 — 1,181 
Foreign government direct commercial sales259 102 206 522 — 1,089 263 116 212 504 — 1,095 
Commercial aerospace and other commercial sales3,984 3,934 104 5 — 8,027 3,268 3,132 79 — — 6,479 
Consolidated net sales5,396 5,701 3,263 3,954 1 18,315 4,607 4,969 3,245 3,493 — 16,314 
Inter-segment sales454 — 392 46 (892)— 404 — 325 65 (794)— 
Business segment sales$5,850 $5,701 $3,655 $4,000 $(891)$18,315 $5,011 $4,969 $3,570 $3,558 $(794)$16,314 
(1)    Excludes foreign military sales through the U.S. government.
Segment sales disaggregated by type of customer for the six months ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Sales to the U.S. government (1)
$2,244 $2,535 $5,551 $5,180 $5 $15,515 $2,074 $2,591 $5,617 $4,611 $4 $14,897 
Foreign military sales through the U.S. government94 684 305 1,420 — 2,503 107 501 309 1,440 — 2,357 
Foreign government direct commercial sales499 220 407 967 — 2,093 514 219 416 905 — 2,054 
Commercial aerospace and other commercial sales7,722 7,491 194 11 — 15,418 6,377 6,187 156 2 — 12,722 
Consolidated net sales10,559 10,930 6,457 7,578 5 35,529 9,072 9,498 6,498 6,958 4 32,030 
Inter-segment sales872 1 763 93 (1,729)— 763 — 644 127 (1,534)— 
Business segment sales$11,431 $10,931 $7,220 $7,671 $(1,724)$35,529 $9,835 $9,498 $7,142 $7,085 $(1,530)$32,030 
(1)    Excludes foreign military sales through the U.S. government.
Segment sales disaggregated by sales type for the quarters ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products$4,162 $3,199 $2,503 $3,546 $1 $13,411 $3,577 $2,982 $2,564 $3,135 $— $12,258 
Services1,234 2,502 760 408 — 4,904 1,030 1,987 681 358 — 4,056 
Consolidated net sales5,396 5,701 3,263 3,954 1 18,315 4,607 4,969 3,245 3,493 — 16,314 
Inter-segment sales454 — 392 46 (892)— 404 — 325 65 (794)— 
Business segment sales$5,850 $5,701 $3,655 $4,000 $(891)$18,315 $5,011 $4,969 $3,570 $3,558 $(794)$16,314 
Segment sales disaggregated by sales type for the six months ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Collins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotalCollins AerospacePratt & WhitneyRaytheon Intelligence & SpaceRaytheon Missiles & DefenseOtherTotal
Products $8,162 $6,251 $5,013 $6,767 $5 $26,198 $7,059 $5,615 $5,168 $6,274 $4 $24,120 
Services 2,397 4,679 1,444 811 — 9,331 2,013 3,883 1,330 684 — 7,910 
Consolidated net sales$10,559 $10,930 $6,457 $7,578 $5 $35,529 $9,072 $9,498 $6,498 $6,958 $4 $32,030 
Inter-segment sales872 1 763 93 (1,729)— 763 — 644 127 (1,534)— 
Business segment sales$11,431 $10,931 $7,220 $7,671 $(1,724)$35,529 $9,835 $9,498 $7,142 $7,085 $(1,530)$32,030 
RIS and RMD segment sales disaggregated by contract type for the quarters ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$1,368 $2,258 $1,353 $2,043 
Cost-type1,895 1,696 1,892 1,450 
Consolidated net sales3,263 3,954 3,245 3,493 
Inter-segment sales392 46 325 65 
Business segment sales$3,655 $4,000 $3,570 $3,558 
RIS and RMD segment sales disaggregated by contract type for the six months ended June 30, 2023 and 2022 are as follows:
20232022
(dollars in millions)Raytheon Intelligence & SpaceRaytheon Missiles & DefenseRaytheon Intelligence & SpaceRaytheon Missiles & Defense
Fixed-price$2,755 $4,353 $2,693 $4,118 
Cost-type3,702 3,225 3,805 2,840 
Consolidated net sales6,457 7,578 6,498 6,958 
Inter-segments sales763 93 644 127 
Business segment sales$7,220 $7,671 $7,142 $7,085