Name: Raytheon Co. (NYSE:RTN) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

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.

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Raytheon Co., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	3,329)	2,882)	2,001)	2,174)	2,067)
Pension and other postretirement benefit plans, net	(649)	812)	(609)	(146)	344)
Foreign exchange translation	7)	(36)	80)	(115)	(57)
Cash flow hedges	3)	(9)	6)	16)	(2)
Unrealized gains (losses) on investments and other, net	(3)	1)	(1)	10)	(3)
Other comprehensive income (loss), net of tax	(642)	768)	(524)	(235)	282)
Reclassification of stranded tax effects	—)	(1,451)	—)	—)	—)
Comprehensive income	2,687)	2,199)	1,477)	1,939)	2,349)
Comprehensive loss attributable to noncontrolling interests in subsidiaries	14)	27)	23)	37)	7)
Comprehensive income attributable to Raytheon Company	2,701)	2,226)	1,500)	1,976)	2,356)

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).

The financial trajectory from 2015 to 2019 is characterized by a consistent expansion in net income contrasted with significant volatility in other comprehensive income components. While net income demonstrated a strong upward trend, total comprehensive income experienced fluctuations driven primarily by pension-related adjustments and tax reclassifications.

Net Income Trends: Net income exhibited steady growth over the five-year period, rising from 2,067 million USD in 2015 to 3,329 million USD in 2019. A notable acceleration in profitability is observed between 2017 and 2019, where net income increased by approximately 66%.
Volatility in Other Comprehensive Income: Other comprehensive income (OCI) displayed high instability, largely dictated by pension and other postretirement benefit plans. These plans shifted from a gain of 344 million USD in 2015 to a loss of 649 million USD by 2019, with a significant outlier gain of 812 million USD in 2018. Foreign exchange translation effects also contributed to this volatility, fluctuating between losses in 2016 and gains in 2017.
Comprehensive Income Performance: Comprehensive income did not mirror the linear growth of net income. It declined from 2,349 million USD in 2015 to a period low of 1,477 million USD in 2017 before recovering to 2,687 million USD in 2019. This divergence indicates that unrealized gains and losses, particularly in retirement benefits, significantly impacted the total economic value beyond operational net income.
Special Items and Noncontrolling Interests: A substantial reclassification of stranded tax effects amounting to 1,451 million USD was recorded in 2018, representing a significant one-time accounting adjustment. Additionally, comprehensive loss attributable to noncontrolling interests remained minimal and relatively stable, ranging from 7 million USD to 37 million USD throughout the analyzed period.

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