Raytheon Co. (RTN)

Balance Sheet: Assets

Beginner level

The balance sheet provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Raytheon Co., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Cash and cash equivalents	3,608	3,103	3,303	2,328	3,222
Short-term investments	—	297	100	872	1,497
Receivables, net	1,648	1,324	1,218	1,169	1,038
Contract assets	5,594	5,247	4,984	4,395	3,947
Inventories	758	594	659	635	414
Prepaid expenses and other current assets	528	761	414	413	174
Current assets	12,136	11,326	10,678	9,812	10,292
Property, plant and equipment, net	2,840	2,439	2,166	2,005	1,935
Goodwill	14,864	14,871	14,788	14,731	13,061
Marketable securities held in trust	642	633	550	525	519
Computer software, net of accumulated amortization	261	288	291	294	313
Other intangible assets, net of accumulated amortization	361	481	598	700	303
Deferred tax asset	331	537	753	906	1,231
Other noncurrent assets, net	429	285	228	308	246
Other assets, net	2,024	2,224	2,420	2,733	2,612
Noncurrent assets	19,728	19,534	19,374	19,469	17,608
Total assets	31,864	30,860	30,052	29,281	27,900

Based on: 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10), 10-K (filing date: 2015-02-11).

Assets: Selected Items

Balance sheet item	Description	The company
Current assets	Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.	Raytheon Co.’s current assets increased from 2016 to 2017 and from 2017 to 2018.
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.’s property, plant and equipment, net increased from 2016 to 2017 and from 2017 to 2018.
Noncurrent assets	Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.	Raytheon Co.’s noncurrent assets increased from 2016 to 2017 and from 2017 to 2018.
Total assets	Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.	Raytheon Co.’s total assets increased from 2016 to 2017 and from 2017 to 2018.

Current Assets: Selected Items

Balance sheet item	Description	The company
Cash and cash equivalents	Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.	Raytheon Co.’s cash and cash equivalents decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Short-term investments	Amount of investments including trading securities, available-for-sale securities, held-to-maturity securities, and short-term investments classified as other and current.	Raytheon Co.’s short-term investments increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Receivables, net	Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection.	Raytheon Co.’s receivables, net increased from 2016 to 2017 and from 2017 to 2018.
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Raytheon Co.’s inventories decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.