Income Statement
Quarterly Data

The income statement presents information on the financial results of a company 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 (quarterly data)

US$ in millions

3 months ended:	Dec 31, 2019	Sep 29, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jul 1, 2018	Apr 1, 2018	Dec 31, 2017	Oct 1, 2017	Jul 2, 2017	Apr 2, 2017	Dec 31, 2016	Oct 2, 2016	Jul 3, 2016	Apr 3, 2016	Dec 31, 2015	Sep 27, 2015	Jun 28, 2015	Mar 29, 2015
Products	6,692)	6,187)	5,994)	5,562)	6,216)	5,656)	5,507)	5,254)	5,792)	5,305)	5,275)	5,044)	5,282)	5,058)	5,037)	4,789)	5,331)	4,831)	4,894)	4,387)
Services	1,150)	1,259)	1,165)	1,167)	1,144)	1,150)	1,118)	1,013)	991)	979)	1,006)	956)	956)	975)	998)	974)	997)	952)	954)	901)
Net sales	7,842)	7,446)	7,159)	6,729)	7,360)	6,806)	6,625)	6,267)	6,783)	6,284)	6,281)	6,000)	6,238)	6,033)	6,035)	5,763)	6,328)	5,783)	5,848)	5,288)
Cost of sales, products	(4,921)	(4,522)	(4,302)	(4,002)	(4,498)	(3,970)	(3,903)	(3,737)	(4,367)	(3,872)	(3,877)	(3,756)	(3,878)	(3,725)	(3,566)	(3,598)	(3,989)	(3,635)	(3,727)	(3,096)
Cost of sales, services	(911)	(977)	(903)	(875)	(895)	(901)	(874)	(795)	(804)	(818)	(808)	(774)	(777)	(787)	(814)	(802)	(819)	(773)	(798)	(737)
Cost of sales, products and services	(5,832)	(5,499)	(5,205)	(4,877)	(5,393)	(4,871)	(4,777)	(4,532)	(5,171)	(4,690)	(4,685)	(4,530)	(4,655)	(4,512)	(4,380)	(4,400)	(4,808)	(4,408)	(4,525)	(3,833)
Gross margin	2,010)	1,947)	1,954)	1,852)	1,967)	1,935)	1,848)	1,735)	1,612)	1,594)	1,596)	1,470)	1,583)	1,521)	1,655)	1,363)	1,520)	1,375)	1,323)	1,455)
General and administrative expenses	(731)	(741)	(778)	(739)	(753)	(752)	(748)	(694)	(742)	(736)	(747)	(729)	(721)	(715)	(695)	(751)	(692)	(678)	(675)	(615)
Operating income	1,279)	1,206)	1,176)	1,113)	1,214)	1,183)	1,100)	1,041)	870)	858)	849)	741)	862)	806)	960)	612)	828)	697)	648)	840)
Retirement benefits non-service expense	(174)	(152)	(181)	(181)	(237)	(516)	(238)	(239)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Interest expense	(46)	(45)	(45)	(44)	(46)	(45)	(46)	(47)	(48)	(48)	(51)	(58)	(58)	(58)	(58)	(58)	(58)	(58)	(59)	(58)
Interest income	12)	10)	7)	13)	10)	6)	8)	7)	7)	4)	5)	5)	4)	4)	4)	4)	2)	3)	2)	4)
Other income (expense), net	(7)	17)	8)	20)	(14)	8)	3)	(5)	5)	2)	(35)	7)	(1)	4)	1)	2)	2)	(9)	1)	2)
Non-operating income (expense), net	(215)	(170)	(211)	(192)	(287)	(547)	(273)	(284)	(36)	(42)	(81)	(46)	(55)	(50)	(53)	(52)	(54)	(64)	(56)	(52)
Income from continuing operations before taxes	1,064)	1,036)	965)	921)	927)	636)	827)	757)	834)	816)	768)	695)	807)	756)	907)	560)	774)	633)	592)	788)
Federal and foreign income taxes	(185)	(175)	(152)	(146)	(99)	5)	(37)	(133)	(447)	(248)	(221)	(198)	(266)	(233)	(202)	(156)	(220)	(189)	(90)	(234)
Income from continuing operations	879)	861)	813)	775)	828)	641)	790)	624)	387)	568)	547)	497)	541)	523)	705)	404)	554)	444)	502)	554)
Income (loss) from discontinued operations, net of tax	2)	(1)	—)	—)	(1)	—)	1)	(1)	—)	(1)	—)	3)	—)	1)	(1)	1)	13)	(1)	1)	—)
Net income	881)	860)	813)	775)	827)	641)	791)	623)	387)	567)	547)	500)	541)	524)	704)	405)	567)	443)	503)	554)
Net (income) loss attributable to noncontrolling interests in subsidiaries	4)	—)	4)	6)	5)	3)	9)	10)	6)	5)	6)	6)	3)	5)	5)	24)	4)	4)	2)	(3)
Net income attributable to Raytheon Company	885)	860)	817)	781)	832)	644)	800)	633)	393)	572)	553)	506)	544)	529)	709)	429)	571)	447)	505)	551)

Net Sales and Revenue Trends: Net sales demonstrated a generally increasing trend over the examined periods, rising from $5,288 million in the first quarter of 2015 to $7,842 million in the final quarter of 2019. The product segment consistently contributed the majority of sales, showing fluctuations but overall growth from $4,387 million to $6,692 million in the same period. Services revenue also increased, though at a more moderate pace, growing from $901 million to $1,150 million.
Cost of Sales and Gross Margin: The cost of sales for products and services combined increased alongside revenue, rising from $3,833 million to $5,832 million by the end of 2019. Despite rising costs, the gross margin maintained a positive trajectory, increasing from $1,455 million to $2,010 million over the period, indicating effective cost management or pricing power sustaining profitability at the gross margin level.
Operating Income and Expenses: Operating income showed considerable improvement, climbing from $840 million in early 2015 to $1,279 million by the end of 2019, with some fluctuations. General and administrative expenses remained relatively stable, with minor increases but no proportional escalation compared to revenue growth, suggesting operational efficiencies.
Non-Operating Income and Expense: Non-operating income items, including retirement benefits non-service expense and other income/expense, showed variability. Particularly notable is the increase in retirement benefits non-service expense starting in 2017, with a significant spike to -$516 million in Q3 2018, which appears to have impacted net non-operating income negatively, as reflected in steep declines in this line in the same periods.
Income Before Taxes and Taxes: Income from continuing operations before taxes generally increased from an initial $788 million to over $1,000 million towards the end of 2019. However, federal and foreign income taxes exhibited volatility and irregularity, with some quarters showing unusually low or negative tax expenses, possibly due to tax adjustments or credits, especially post-2017 when tax regulations changed globally.
Net Income and Attributable Income: Net income attributable to the company increased significantly from $551 million in Q1 2015 to $885 million in Q4 2019, tracking the upward trend in operating performance. The net income series is consistent with continuing operations income, indicating that discontinued operations had minimal impact overall. Noncontrolling interests fluctuated but represented a small portion relative to net income attributable to the company.
Summary of Observations: Overall, the company demonstrated steady revenue growth, with effective cost control maintaining or improving gross margins and operating income. The increase in expenses related to retirement benefits and erratic non-operating income components warrant further attention to understand their future impact. Tax expense variability suggests changing tax environments or strategic tax planning. The net income reflects strong financial performance with consistent growth over the analyzed quarters.

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Raytheon Co. (NYSE:RTN)

Income Statement Quarterly Data

Income Statement
Quarterly Data