Raytheon Co. (RTN)

Income Statement

Beginner level

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Raytheon Co., consolidated income statement

US$ in millions

12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Products	22,633	21,416	20,166	19,443	19,126
Services	4,425	3,932	3,903	3,804	3,700
Net sales	27,058	25,348	24,069	23,247	22,826
Cost of sales, products	(16,108)	(15,872)	(14,767)	(14,447)	(14,260)
Cost of sales, services	(3,465)	(3,204)	(3,180)	(3,127)	(3,035)
Cost of sales, products and services	(19,573)	(19,076)	(17,947)	(17,574)	(17,295)
Gross margin	7,485	6,272	6,122	5,673	5,531
General and administrative expenses	(2,947)	(2,954)	(2,882)	(2,660)	(2,352)
Operating income	4,538	3,318	3,240	3,013	3,179
Retirement benefits non-service expense	(1,230)	—	—	—	—
Interest expense	(184)	(205)	(232)	(233)	(213)
Interest income	31	21	16	11	10
Other income (expense), net	(8)	(21)	6	(4)	7
Non-operating income (expense), net	(1,391)	(205)	(210)	(226)	(196)
Income from continuing operations before taxes	3,147	3,113	3,030	2,787	2,983
Federal and foreign income taxes	(264)	(1,114)	(857)	(733)	(790)
Income from continuing operations	2,883	1,999	2,173	2,054	2,193
Income (loss) from discontinued operations, net of tax	(1)	2	1	13	65
Net income	2,882	2,001	2,174	2,067	2,258
Net (income) loss attributable to noncontrolling interests in subsidiaries	27	23	37	7	(14)
Net income attributable to Raytheon Company	2,909	2,024	2,211	2,074	2,244

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).

Income statement item	Description	The company
Net sales	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Raytheon Co.’s net sales increased from 2016 to 2017 and from 2017 to 2018.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Raytheon Co.’s operating income increased from 2016 to 2017 and from 2017 to 2018.
Income from continuing operations before taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Raytheon Co.’s income from continuing operations before taxes increased from 2016 to 2017 and from 2017 to 2018.
Net income attributable to Raytheon Company	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Raytheon Co.’s net income attributable to Raytheon Company decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.