Segment Financial Data

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Financial Data

Note 18: Segment Financial Data

Our operations, for the periods presented herein, are classified into three principal segments: Collins, Pratt & Whitney, and Raytheon. Our 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.

RTX’s chief operating decision maker (CODM) is our President and Chief Executive Officer. The CODM uses segment operating profit as a profitability measure to assess actual and forecasted segment performance to make decisions regarding incentive compensation and the allocation of capital and other investments. 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.

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 Raytheon segment. 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 Raytheon 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, if applicable. These adjustments are not considered part of management’s evaluation of segment results.

Results for the quarters ended March 31, 2025 and 2024 are as follows:

	2025
(dollars in millions)	Net Sales		Research and Development		Other Segment Items (1)		Operating Profit		Operating Profit Margin
Collins Aerospace	$	7,217	$	(313)	$	(5,816)	$	1,088	15.1	%
Pratt & Whitney	7,366		(229)		(6,557)		580		7.9	%
Raytheon	6,340		(98)		(5,564)		678		10.7	%
Total segment	20,923		$	(640)	$	(17,937)	2,346		11.2	%
Eliminations and other (2)	(617)						12
Corporate expenses and other unallocated items	—						(38)
FAS/CAS operating adjustment	—						185
Acquisition accounting adjustments	—						(470)
Consolidated	$	20,306					$	2,035	10.0	%

(1)    Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net.

(2)    Includes the operating results of certain smaller operations.

	2024
(dollars in millions)	Net Sales		Research and Development		Other Segment Items (1)		Operating Profit		Operating Profit Margin
Collins Aerospace	$	6,673	$	(313)	$	(5,511)	$	849	12.7	%
Pratt & Whitney	6,456		(269)		(5,775)		412		6.4	%
Raytheon (3)	6,659		(89)		(5,574)		996		15.0	%
Total segment	19,788		$	(671)	$	(16,860)	2,257		11.4	%
Eliminations and other (2)	(483)						(5)
Corporate expenses and other unallocated items	—						(96)
FAS/CAS operating adjustment	—						214
Acquisition accounting adjustments	—						(500)
Consolidated	$	19,305					$	1,870	9.7	%

(1)    Includes Cost of sales, Selling, general, and administrative expenses, and Other income, net.

(2)    Includes the operating results of certain smaller operations.

(3)    Operating profit includes a $0.4 billion gain, net of transaction and other related costs, related to the sale of the CIS business. See “Note 2: Acquisitions and Dispositions” for additional information.

Capital Expenditures and Depreciation & Amortization segment information for the quarters ended March 31, 2025 and 2024 are as follows:

	Capital Expenditures				Depreciation & Amortization
(dollars in millions)	2025		2024		2025		2024
Collins Aerospace	$	112	$	125	$	217	$	203
Pratt & Whitney	153		139		194		193
Raytheon	225		191		131		127
Total segment	490		455		542		523
Corporate, eliminations, and other	23		12		21		18
Acquisition accounting adjustments					489		518
Consolidated	$	513	$	467	$	1,052	$	1,059

Total assets by segment are as follows:

(dollars in millions)	March 31, 2025		December 31, 2024
Collins Aerospace (1)	$	73,105	$	72,372
Pratt & Whitney (1)	46,248		44,307
Raytheon (1)	44,681		44,936
Total segment	164,034		161,615
Corporate, eliminations, and other	830		1,246
Consolidated	$	164,864	$	162,861

(1)    Total assets include acquired intangible assets and the property, plant, and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments.

We disaggregate our contracts from customers by geographic region based on customer location, by type of 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, uses “ship to” location as the customer location. In addition, for our Raytheon segment, 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 based on customer location for the quarters ended March 31, 2025 and 2024 are as follows:

	2025										2024
(dollars in millions)	Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total		Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total
United States	$	3,348	$	3,418	$	4,447	$	53	$	11,266	$	3,321	$	3,010	$	4,982	$	48	$	11,361
Europe	1,730		1,839		843		1		4,413		1,615		1,670		547		1		3,833
Asia Pacific	826		1,241		525		—		2,592		691		1,194		541		1		2,427
Middle East and North Africa	239		175		434		—		848		181		138		530		—		849
Other regions	444		692		51		—		1,187		361		444		30		—		835
Consolidated net sales	6,587		7,365		6,300		54		20,306		6,169		6,456		6,630		50		19,305
Inter-segment sales	630		1		40		(671)		—		504		—		29		(533)		—
Business segment sales	$	7,217	$	7,366	$	6,340	$	(617)	$	20,306	$	6,673	$	6,456	$	6,659	$	(483)	$	19,305

Segment sales disaggregated by type of customer for the quarters ended March 31, 2025 and 2024 are as follows:

	2025										2024
(dollars in millions)	Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total		Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total
Sales to the U.S. government (1)	$	1,659	$	1,585	$	4,435	$	53	$	7,732	$	1,564	$	1,558	$	4,957	$	48	$	8,127
Foreign military sales through the U.S. government	116		379		976		—		1,471		81		310		858		—		1,249
Foreign government direct commercial sales	327		148		876		1		1,352		309		158		740		1		1,208
Commercial aerospace and other commercial sales	4,485		5,253		13		—		9,751		4,215		4,430		75		1		8,721
Consolidated net sales	6,587		7,365		6,300		54		20,306		6,169		6,456		6,630		50		19,305
Inter-segment sales	630		1		40		(671)		—		504		—		29		(533)		—
Business segment sales	$	7,217	$	7,366	$	6,340	$	(617)	$	20,306	$	6,673	$	6,456	$	6,659	$	(483)	$	19,305

(1)    Excludes foreign military sales through the U.S. government.

Segment sales disaggregated by sales type for the quarters ended March 31, 2025 and 2024 are as follows:

	2025										2024
(dollars in millions)	Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total		Collins Aerospace		Pratt & Whitney		Raytheon		Other		Total
Products	$	5,110	$	4,032	$	5,406	$	43	$	14,591	$	4,833	$	3,957	$	5,467	$	46	$	14,303
Services	1,477		3,333		894		11		5,715		1,336		2,499		1,163		4		5,002
Consolidated net sales	6,587		7,365		6,300		54		20,306		6,169		6,456		6,630		50		19,305
Inter-segment sales	630		1		40		(671)		—		504		—		29		(533)		—
Business segment sales	$	7,217	$	7,366	$	6,340	$	(617)	$	20,306	$	6,673	$	6,456	$	6,659	$	(483)	$	19,305

Raytheon segment sales disaggregated by contract type for the quarters ended March 31, 2025 and 2024 are as follows:

(dollars in millions)	2025		2024
Fixed-price	$	3,605	$	3,293
Cost-type	2,695		3,337
Consolidated net sales	6,300		6,630
Inter-segment sales	40		29
Business segment sales	$	6,340	$	6,659