Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Raytheon Co., consolidated statement of comprehensive income
US$ in millions
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).
The financial data reveals several notable trends over the five-year period ending December 31, 2019. Net income displayed a generally positive trajectory, increasing from $2,067 million in 2015 to $3,329 million in 2019. Despite a slight dip in 2017, the overall pattern demonstrates growth in profitability, with the most significant jump occurring between 2017 and 2018.
Adjustments from pension and other postretirement benefit plans exhibited considerable volatility. Starting with a positive contribution of $344 million in 2015, the amount swung into negative territory in 2016 and 2017, and again in 2019, with a peak impairment of -$649 million in 2019. Conversely, 2018 saw a reversal to a high positive $812 million, indicating fluctuating actuarial or related factors affecting pension-related accounting.
Foreign exchange translation impacts remained relatively minor and inconsistent, alternating between small positive and negative values with no clear trend or material effect on overall income.
Cash flow hedges and unrealized gains or losses on investments showed small, fluctuating values around zero, indicating limited influence on total comprehensive income during the years considered.
Other comprehensive income (loss) net of tax mirrored the volatility seen in pension-related items, alternating between positive and negative values. After a positive $282 million in 2015, there were negative results in 2016 and 2017, followed by a strong positive in 2018 and another decline in 2019. This variability contributed to fluctuations in comprehensive income across the periods.
The reclassification of stranded tax effects was recorded only once in 2018, with a significant negative impact of -$1,451 million. This one-off item materially affected the comprehensive income figures that year.
Comprehensive income trends reflected the combined effects of net income and other comprehensive components. It decreased from $2,349 million in 2015 to $1,477 million in 2017, rebounded to $2,199 million in 2018, and further increased to $2,687 million in 2019. Comprehensive income attributable specifically to the company followed a similar pattern, indicating overall improvements in total earnings inclusive of other comprehensive items by the end of the period.
Comprehensive loss attributable to noncontrolling interests remained minimal throughout, ranging between $7 million and $37 million, suggesting limited impact from minority interests on the comprehensive results.
Overall, the data indicates improving net profitability and comprehensive income towards the end of the analyzed period, despite some periods of volatility, especially related to pension and other comprehensive components. Significant one-off tax-related adjustments also affected the reported comprehensive results in 2018.