Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Raytheon Co., adjustment to net income attributable to Raytheon Company

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Raytheon Company (as reported)	3,343)	2,909)	2,024)	2,211)	2,074)
Add: Unrealized gains (losses) on investments and other, net	(3)	1)	(1)	10)	(3)
Net income attributable to Raytheon Company (adjusted)	3,340)	2,910)	2,023)	2,221)	2,071)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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Raytheon Co., adjusted profitability ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net Profit Margin
Reported net profit margin	11.46%	10.75%	7.98%	9.19%	8.92%
Adjusted net profit margin	11.45%	10.75%	7.98%	9.23%	8.91%
Return on Equity (ROE)
Reported ROE	27.35%	25.36%	20.32%	21.97%	20.48%
Adjusted ROE	27.33%	25.37%	20.31%	22.06%	20.45%
Return on Assets (ROA)
Reported ROA	9.67%	9.13%	6.56%	7.36%	7.08%
Adjusted ROA	9.66%	9.13%	6.56%	7.39%	7.07%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Raytheon Co. adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Raytheon Co. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Raytheon Co. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Raytheon Co., Profitability Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Profitability Ratio
Net profit margin¹	11.46%	10.75%	7.98%	9.19%	8.92%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Raytheon Company	3,340)	2,910)	2,023)	2,221)	2,071)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Profitability Ratio
Adjusted net profit margin²	11.45%	10.75%	7.98%	9.23%	8.91%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Net profit margin = 100 × Net income attributable to Raytheon Company ÷ Net sales
= 100 × 3,343 ÷ 29,176 = 11.46%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Raytheon Company ÷ Net sales
= 100 × 3,340 ÷ 29,176 = 11.45%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Raytheon Co. adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Profitability Ratio
ROE¹	27.35%	25.36%	20.32%	21.97%	20.48%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Raytheon Company	3,340)	2,910)	2,023)	2,221)	2,071)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Profitability Ratio
Adjusted ROE²	27.33%	25.37%	20.31%	22.06%	20.45%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROE = 100 × Net income attributable to Raytheon Company ÷ Total Raytheon Company stockholders’ equity
= 100 × 3,343 ÷ 12,223 = 27.35%

² Adjusted ROE = 100 × Adjusted net income attributable to Raytheon Company ÷ Total Raytheon Company stockholders’ equity
= 100 × 3,340 ÷ 12,223 = 27.33%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Raytheon Co. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Profitability Ratio
ROA¹	9.67%	9.13%	6.56%	7.36%	7.08%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Raytheon Company	3,340)	2,910)	2,023)	2,221)	2,071)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Profitability Ratio
Adjusted ROA²	9.66%	9.13%	6.56%	7.39%	7.07%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROA = 100 × Net income attributable to Raytheon Company ÷ Total assets
= 100 × 3,343 ÷ 34,566 = 9.67%

² Adjusted ROA = 100 × Adjusted net income attributable to Raytheon Company ÷ Total assets
= 100 × 3,340 ÷ 34,566 = 9.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Raytheon Co. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Raytheon Co. (NYSE:RTN)

Analysis of Investments

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Raytheon Co., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)