Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Raytheon Co., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Land	81)	84)	85)	88)	86)
Buildings and improvements	3,068)	2,835)	2,567)	2,508)	2,530)
Machinery and equipment	5,436)	4,844)	4,621)	4,198)	3,917)
Property, plant and equipment, gross	8,585)	7,763)	7,273)	6,794)	6,533)
Accumulated depreciation and amortization	(5,232)	(4,923)	(4,834)	(4,628)	(4,528)
Property, plant and equipment, net	3,353)	2,840)	2,439)	2,166)	2,005)

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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Item	Description	The company
Property, plant and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Raytheon Co. property, plant and equipment, gross increased from 2017 to 2018 and from 2018 to 2019.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Raytheon Co. property, plant and equipment, net increased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co., asset age ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Average age ratio	61.52%	64.11%	67.25%	69.01%	70.23%
Estimated total useful life (years)	20	21	21	21	21
Estimated age, time elapsed since purchase (years)	12	13	14	15	15
Estimated remaining life (years)	8	7	7	7	6

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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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Raytheon Co. average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Raytheon Co. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Raytheon Co. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life		Raytheon Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	5,232)	4,923)	4,834)	4,628)	4,528)
Property, plant and equipment, gross	8,585)	7,763)	7,273)	6,794)	6,533)
Land	81)	84)	85)	88)	86)
Asset Age Ratio
Average age¹	61.52%	64.11%	67.25%	69.01%	70.23%

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 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 5,232 ÷ (8,585 – 81) = 61.52%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Raytheon Co. average age ratio of depreciable property, plant and equipment 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
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	8,585)	7,763)	7,273)	6,794)	6,533)
Land	81)	84)	85)	88)	86)
Depreciation and amortization expense of property, plant and equipment, net	420)	374)	350)	316)	307)
Asset Age Ratio (Years)
Estimated total useful life¹	20	21	21	21	21

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 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation and amortization expense of property, plant and equipment, net
= (8,585 – 81) ÷ 420 = 20

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Raytheon Co. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	5,232)	4,923)	4,834)	4,628)	4,528)
Depreciation and amortization expense of property, plant and equipment, net	420)	374)	350)	316)	307)
Asset Age Ratio (Years)
Time elapsed since purchase¹	12	13	14	15	15

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 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense of property, plant and equipment, net
= 5,232 ÷ 420 = 12

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Raytheon Co. estimated time elapsed since purchase of depreciable property, plant and equipment 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
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	3,353)	2,840)	2,439)	2,166)	2,005)
Land	81)	84)	85)	88)	86)
Depreciation and amortization expense of property, plant and equipment, net	420)	374)	350)	316)	307)
Asset Age Ratio (Years)
Estimated remaining life¹	8	7	7	7	6

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 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation and amortization expense of property, plant and equipment, net
= (3,353 – 81) ÷ 420 = 8

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Asset age ratio	Description	The company
Estimated remaining life		Raytheon Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co. (NYSE:RTN)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life