Raytheon Co. (RTN)
Analysis of Revenues
Revenue Recognition Accounting Policy
The vast majority of Raytheon’s revenues are from long-term contracts associated with the design, development, manufacture or modification of complex aerospace or defense equipment or related services. These contracts primarily are with the U.S. government (including foreign military sales contracted through the U.S. government). Raytheon’s contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer.
Source: 10-K (filing date: 2019-02-13).
Revenues as Reported
Raytheon Co., Income Statement, Revenues
US$ in millions
|12 months ended||Dec 31, 2018||Dec 31, 2017||Dec 31, 2016||Dec 31, 2015||Dec 31, 2014|
|Integrated Defense Systems (IDS)|
|Intelligence, Information and Services (IIS)|
|Missile Systems (MS)|
|Space and Airborne Systems (SAS)|
|Business segment sales|
|Acquisition Accounting Adjustments|
|Net sales||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||Raytheon Co.’s net sales increased from 2016 to 2017 and from 2017 to 2018.|