Raytheon Co., adjusted current assets

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Current assets	13,082)	12,136)	11,326)	10,678)	9,812)
Adjustments
Add: Allowance for doubtful accounts	7)	12)	8)	8)	5)
After Adjustment
Adjusted current assets	13,089)	12,148)	11,334)	10,686)	9,817)

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).

A consistent upward trajectory is observed in both current assets and adjusted current assets between 2015 and 2019. Current assets increased from US$ 9,812 million to US$ 13,082 million, representing a cumulative growth of approximately 33.3% over the five-year period.

Growth Trends: Current assets demonstrated steady year-over-year expansion. The most significant nominal increase occurred between 2018 and 2019, where assets grew by US$ 946 million, suggesting an accelerating accumulation of short-term resources toward the end of the analyzed period.
Analysis of Adjustments: The adjusted current assets closely track the reported current assets, maintaining a nearly identical growth slope. The absolute difference between the two figures remained marginal, fluctuating between US$ 5 million in 2015 and a maximum of US$ 12 million in 2018.
Materiality and Impact: The adjustments applied to the current assets are immaterial in the context of the total asset base. The variance typically represents less than 0.1% of the total current asset value, indicating that the adjustments do not significantly alter the liquidity profile or the financial interpretation of the company's short-term asset position.

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Raytheon Co., adjusted total assets

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	842)	909)	1,086)	976)
Add: Allowance for doubtful accounts	7)	12)	8)	8)	5)
Less: Deferred tax asset²	534)	331)	537)	753)	906)
After Adjustment
Adjusted total assets	34,039)	32,387)	31,240)	30,393)	29,356)

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).

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

² Deferred tax asset. See details »

A consistent upward trend is observed in both total assets and adjusted total assets over the five-year period from 2015 to 2019. Total assets grew from 29,281 million USD in 2015 to 34,566 million USD in 2019, reflecting a steady expansion of the asset base with a notable acceleration in growth during the final year of the period.

Asset Growth Patterns: Total assets exhibited a stable annual increase from 2015 through 2018, followed by a significant surge of approximately 8.5% between 2018 and 2019. Adjusted total assets followed a similar overall growth trajectory, increasing from 29,356 million USD to 34,039 million USD.
Analysis of Asset Adjustments: From 2015 to 2018, adjusted total assets were consistently higher than the reported total assets. This positive variance expanded progressively, starting at 75 million USD in 2015 and reaching 523 million USD by 2018, suggesting a consistent additive adjustment to the balance sheet figures during this timeframe.
2019 Adjustment Reversal: A divergence in the adjustment trend is evident in 2019. For the first time in the analyzed period, adjusted total assets fell below reported total assets, resulting in a negative variance of 527 million USD. This represents a shift from the previous four-year pattern of upward adjustments.

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Raytheon Co., adjusted total liabilities

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Total liabilities	22,311)	19,981)	20,385)	19,537)	18,596)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	842)	909)	1,086)	976)
After Adjustment
Adjusted total liabilities	22,311)	20,823)	21,294)	20,623)	19,572)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

The financial profile of the company shows a general upward trajectory in both total and adjusted total liabilities from 2015 through 2019, characterized by a period of steady growth, a temporary contraction in 2018, and a subsequent sharp increase in 2019.

Total Liabilities Growth Pattern: Total liabilities rose from 18,596 million US$ in 2015 to 20,385 million US$ by 2017. A marginal decrease occurred in 2018, with liabilities falling to 19,981 million US$, before experiencing a significant surge in 2019 to reach a five-year peak of 22,311 million US$.
Adjusted Total Liabilities Trends: Adjusted total liabilities mirrored the general movement of the reported liabilities, starting at 19,572 million US$ in 2015 and ending at 22,311 million US$ in 2019. For the majority of the analyzed period, the adjusted figure remained higher than the total liabilities, indicating the inclusion of specific adjustments for analytical purposes.
Analysis of Liability Adjustments: A consistent positive adjustment was observed between 2015 and 2018, with the variance peaking in 2016 at 1,086 million US$. Following this peak, the gap between total and adjusted liabilities narrowed gradually over the next two years. By December 31, 2019, the adjustment was eliminated entirely, as both metrics converged at 22,311 million US$.

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Raytheon Co., adjusted total Raytheon Company stockholders’ equity

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Adjustments
Less: Noncurrent deferred tax assets (liabilities)¹	513)	329)	532)	746)	887)
Add: Allowance for doubtful accounts	7)	12)	8)	8)	5)
Add: Redeemable noncontrolling interests	32)	411)	512)	449)	355)
Add: Noncontrolling interests in subsidiaries	—)	—)	—)	—)	202)
After Adjustment
Adjusted total equity	11,749)	11,566)	9,951)	9,777)	9,803)

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).

¹ Noncurrent deferred tax assets (liabilities). See details »

The analysis of stockholders' equity from 2015 to 2019 reveals a two-phase trajectory characterized by an initial period of slight contraction followed by a period of robust expansion.

Total Stockholders' Equity Trends: A marginal decline is observed between 2015 and 2017, with equity decreasing from 10,128 million US$ to 9,963 million US$. This trend reversed sharply starting in 2018, resulting in a significant upward movement to 12,223 million US$ by the end of 2019. This represents a cumulative increase of approximately 20.7% over the five-year period.
Adjusted Total Equity Trends: Adjusted equity followed a similar growth pattern, exhibiting greater stability during the initial years. After a slight dip in 2016 to 9,777 million US$, the adjusted figures rose consistently, reaching 11,749 million US$ by 2019. The expansion from the 2016 trough to 2019 constitutes an increase of approximately 20.2%.
Comparative Variance Analysis: The variance between total and adjusted equity demonstrates fluctuating patterns. In 2015 and 2016, total equity exceeded adjusted equity. This gap narrowed to a negligible difference in 2017, followed by a brief inversion in 2018 where adjusted equity surpassed total equity by 94 million US$. By 2019, total equity again exceeded adjusted equity by 474 million US$, indicating varying adjustments to the capital structure throughout the analyzed timeframe.

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Raytheon Co., adjusted capitalization table

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Commercial paper and current portion of long-term debt	1,499)	300)	300)	—)	—)
Long-term debt, excluding current portion	3,261)	4,755)	4,750)	5,335)	5,330)
Total reported debt	4,760)	5,055)	5,050)	5,335)	5,330)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Total reported capital	16,983)	16,527)	15,013)	15,401)	15,458)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	842)	909)	1,086)	976)
Add: Operating lease liabilities, current²	213)	—)	—)	—)	—)
Add: Operating lease liabilities, noncurrent³	706)	—)	—)	—)	—)
Adjusted total debt	5,679)	5,897)	5,959)	6,421)	6,306)
Adjustments to Equity
Less: Noncurrent deferred tax assets (liabilities)⁴	513)	329)	532)	746)	887)
Add: Allowance for doubtful accounts	7)	12)	8)	8)	5)
Add: Redeemable noncontrolling interests	32)	411)	512)	449)	355)
Add: Noncontrolling interests in subsidiaries	—)	—)	—)	—)	202)
Adjusted total equity	11,749)	11,566)	9,951)	9,777)	9,803)
After Adjustment
Adjusted total capital	17,428)	17,463)	15,910)	16,198)	16,109)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Operating lease liabilities, current. See details »

³ Operating lease liabilities, noncurrent. See details »

⁴ Noncurrent deferred tax assets (liabilities). See details »

Between 2015 and 2019, the capital structure exhibits a gradual shift toward a lower reliance on debt and an increased equity base. The overall trend indicates a strengthening of the solvency position, characterized by a reduction in total debt and a steady accumulation of stockholders' equity.

Debt Obligations and Adjustments: Total reported debt decreased from 5,330 million US$ in 2015 to 4,760 million US$ in 2019. However, adjusted total debt remained consistently higher than reported figures throughout the period, starting at 6,306 million US$ in 2015 and ending at 5,679 million US$ in 2019. This persistent gap suggests the inclusion of additional liabilities in the adjusted calculations, although the adjusted debt also followed a general downward trajectory over the five-year window.
Equity Growth Patterns: Total stockholders' equity demonstrated a positive growth trend, rising from 10,128 million US$ in 2015 to 12,223 million US$ in 2019. A notable increase occurred between 2017 and 2018, where equity grew from 9,963 million US$ to 11,472 million US$. Adjusted total equity followed a similar upward trajectory, increasing from 9,803 million US$ in 2015 to 11,749 million US$ in 2019, although it remained slightly below the reported equity levels in the later years of the period.
Total Capitalization Trends: Total reported capital increased from 15,458 million US$ in 2015 to 16,983 million US$ in 2019. When analyzing the adjusted total capital, a similar increase is observed, moving from 16,109 million US$ to 17,428 million US$. The adjusted capital figures are consistently higher than the reported figures, primarily driven by the upward adjustment of debt obligations, which outweighs the slight downward adjustments made to equity in the earlier years.

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Raytheon Co., adjusted 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
As Reported
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Adjustments
Add: Deferred income tax expense (benefit)¹	(28)	(24)	252)	109)	(56)
Add: Increase (decrease) in allowance for doubtful accounts	(5)	4)	—)	3)	1)
Less: Income (loss) from discontinued operations, net of tax	1)	(1)	2)	1)	13)
Add: Other comprehensive income (loss), net of tax	(642)	768)	(524)	(235)	282)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest	(14)	(27)	(23)	(37)	(7)
After Adjustment
Adjusted net income	2,653)	3,631)	1,727)	2,050)	2,281)

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).

¹ Deferred income tax expense (benefit). See details »

An analysis of the reported and adjusted income from 2015 to 2019 reveals contrasting performance trajectories. While reported net income demonstrates a consistent long-term growth pattern, adjusted net income exhibits significant volatility, indicating the influence of substantial non-recurring items and financial adjustments.

Reported Net Income Trends: Net income attributable to the company experienced a general upward trajectory, increasing from US$ 2,074 million in 2015 to US$ 3,343 million by 2019. A brief contraction occurred in 2017, where income dipped to US$ 2,024 million, before the company entered a period of accelerated growth in 2018 and 2019.
Adjusted Net Income Volatility: Adjusted net income followed a more erratic path over the five-year period. A downward trend is observed from 2015 (US$ 2,281 million) through 2017 (US$ 1,727 million). This was followed by a sharp increase to a peak of US$ 3,631 million in 2018, before declining significantly to US$ 2,653 million in 2019.
Variance Between Reported and Adjusted Figures: There is a marked divergence between the two metrics, particularly in the latter half of the period. In 2018, adjusted net income exceeded reported net income by US$ 722 million, suggesting the exclusion of significant one-time expenses. In contrast, for 2019, reported net income surpassed adjusted net income by US$ 690 million, indicating the presence of substantial non-recurring gains or adjustments that reduced the adjusted income figure.

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Raytheon Co. (NYSE:RTN)

Adjustments to Financial Statements

Adjustments to Current Assets

Adjustments to Total Assets

Adjustments to Total Liabilities

Adjustments to Stockholders’ Equity

Adjustments to Capitalization Table

Adjustments to Reported Income