Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2024 shares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2024 |
Document Transition Report | false |
Entity File Number | 001-00812 |
Entity Registrant Name | RTX CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 06-0570975 |
Entity Address, Address Line One | 1000 Wilson Boulevard, |
Entity Address, City or Town | Arlington, |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 22209 |
City Area Code | (781) |
Local Phone Number | 522-3000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,330,239,366 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0000101829 |
Common Stock [Member] | |
Title of 12(b) Security | Common Stock ($1 par value) |
Trading Symbol | RTX |
Security Exchange Name | NYSE |
Notes 2.150% Due 2030 | |
Title of 12(b) Security | 2.150% Notes due 2030 |
Trading Symbol | RTX 30 |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Sales: | ||||
Net sales | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 |
Costs and Expenses: | ||||
Research and development | 706 | 729 | 1,375 | 1,336 |
Selling, general and administrative | 1,449 | 1,600 | 2,843 | 2,963 |
Total costs and expenses | 18,296 | 16,847 | 36,103 | 32,462 |
Other income (expense), net | (896) | 25 | (524) | 113 |
Operating profit | 529 | 1,493 | 2,399 | 3,180 |
Non-service pension income | (374) | (447) | (760) | (891) |
Interest expense, net | 475 | 333 | 880 | 648 |
Total non-operating expense (income), net | 101 | (114) | 120 | (243) |
Income before income taxes | 428 | 1,607 | 2,279 | 3,423 |
Income tax expense | 253 | 248 | 361 | 583 |
Net income | 175 | 1,359 | 1,918 | 2,840 |
Less: Noncontrolling interest in subsidiaries’ earnings | 64 | 32 | 98 | 87 |
Net income attributable to common shareowners | $ 111 | $ 1,327 | $ 1,820 | $ 2,753 |
Earnings Per Share attributable to common shareowners: | ||||
Basic | $ 0.08 | $ 0.91 | $ 1.37 | $ 1.89 |
Diluted | $ 0.08 | $ 0.90 | $ 1.36 | $ 1.87 |
Product [Member] | ||||
Net Sales: | ||||
Net sales | $ 14,562 | $ 13,411 | $ 28,865 | $ 26,198 |
Costs and Expenses: | ||||
Cost of sales | 12,625 | 11,089 | 24,841 | 21,789 |
Service [Member] | ||||
Net Sales: | ||||
Net sales | 5,159 | 4,904 | 10,161 | 9,331 |
Costs and Expenses: | ||||
Cost of sales | $ 3,516 | $ 3,429 | $ 7,044 | $ 6,374 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 175 | $ 1,359 | $ 1,918 | $ 2,840 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | (68) | 404 | (189) | 526 |
Pension and postretirement benefit plans adjustments | (46) | (183) | (97) | (329) |
Change in unrealized cash flow hedging | 21 | 285 | (52) | 297 |
Other comprehensive income (loss), before tax | (93) | 506 | (338) | 494 |
Tax benefit (expense) | 10 | (19) | 39 | 22 |
Other comprehensive income (loss), net of tax | (83) | 487 | (299) | 516 |
Comprehensive income | 92 | 1,846 | 1,619 | 3,356 |
Less: Comprehensive income attributable to noncontrolling interest | 64 | 32 | 98 | 87 |
Comprehensive income attributable to common shareowners | $ 28 | $ 1,814 | $ 1,521 | $ 3,269 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 6,011 | $ 6,587 |
Accounts receivable, net | 10,252 | 10,838 |
Contract assets | 13,581 | 12,139 |
Inventory, net | 13,047 | 11,777 |
Other assets, current | 6,334 | 7,076 |
Total current assets | 49,225 | 48,417 |
Customer financing assets | 2,320 | 2,392 |
Fixed assets | 32,062 | 31,392 |
Accumulated depreciation | (16,369) | (15,644) |
Fixed assets, net | 15,693 | 15,748 |
Operating lease right-of-use assets | 1,664 | 1,638 |
Goodwill | 53,347 | 53,699 |
Intangible assets, net | 34,503 | 35,399 |
Other assets | 4,417 | 4,576 |
Total assets | 161,169 | 161,869 |
Short-term borrowings | 231 | 189 |
Accounts payable | 10,939 | 10,698 |
Accrued employee compensation | 2,065 | 2,491 |
Other accrued liabilities | 17,048 | 14,917 |
Contract liabilities | 17,665 | 17,183 |
Long-term debt currently due | 1,617 | 1,283 |
Total current liabilities | 49,565 | 46,761 |
Long-term debt | 40,303 | 42,355 |
Operating lease liabilities, non-current | 1,415 | 1,412 |
Future pension and postretirement benefit obligations | 2,264 | 2,385 |
Other long-term liabilities | 6,941 | 7,511 |
Total liabilities | 100,488 | 100,424 |
Commitments and contingencies (Note 16) | ||
Redeemable noncontrolling interest | 31 | 35 |
Common stock | 37,302 | 37,055 |
Treasury stock | (27,080) | (26,977) |
Retained earnings | 51,488 | 52,154 |
Unearned ESOP Shares | (7) | (15) |
Accumulated other comprehensive loss | (2,718) | (2,419) |
Total shareowners' equity | 58,985 | 59,798 |
Noncontrolling interest | 1,665 | 1,612 |
Total equity | 60,650 | 61,410 |
Total liabilities, redeemable noncontrolling interest, and equity | $ 161,169 | $ 161,869 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 1,918 | $ 2,840 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization | 2,131 | 2,078 |
Deferred income tax provision (benefit) | 185 | (700) |
Stock compensation cost | 223 | 212 |
Net periodic pension and other postretirement income | (666) | (778) |
Gain on sale of business, net of transaction costs (Note 2) | (415) | 0 |
Change in: | ||
Accounts receivable | 587 | (699) |
Contract assets | (1,457) | (1,430) |
Inventory | (1,361) | (1,322) |
Other current assets | 217 | (634) |
Accounts payable and accrued liabilities | 1,245 | (149) |
Contract liabilities | 512 | 255 |
Other operating activities, net | (44) | 183 |
Net cash flows provided by (used in) operating activities | 3,075 | (144) |
Investing Activities: | ||
Capital expenditures | (1,004) | (1,046) |
Dispositions of businesses, net of cash transferred | 1,283 | 0 |
Increase in other intangible assets | (318) | (314) |
(Payments) receipts from settlements of derivative contracts, net | (29) | 45 |
Other investing activities, net | 28 | 113 |
Net cash flows used in investing activities | (40) | (1,202) |
Financing Activities: | ||
Proceeds from long-term debt | 0 | 2,974 |
Repayment of long-term debt | (1,700) | (3) |
Change in commercial paper, net (Note 9) | 0 | 470 |
Change in other short-term borrowings, net | 43 | (24) |
Dividends paid on common stock | (1,592) | (1,634) |
Repurchase of common stock | (100) | (1,158) |
Other financing activities, net | (242) | (157) |
Net cash flows (used in) provided by financing activities | (3,591) | 468 |
Effect of foreign exchange rate changes on cash and cash equivalents | (12) | 19 |
Net decrease in cash, cash equivalents, and restricted cash | (568) | (859) |
Cash, cash equivalents, and restricted cash, beginning of period | 6,626 | 6,291 |
Cash, cash equivalents, and restricted cash, end of period | 6,058 | 5,432 |
Less: Restricted cash, included in Other assets, current and Other assets | 47 | 41 |
Cash and cash equivalents, end of period | $ 6,011 | $ 5,391 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Treasury Stock, Common | Retained Earnings [Member] | Unearned ESOP Shares [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Equity | $ 74,178 | ||||||
Stockholders' Equity Attributable to Parent | $ 37,939 | $ (15,530) | $ 52,269 | $ (28) | $ (2,018) | ||
Noncontrolling interest | $ 1,546 | ||||||
Common stock plans activity | 290 | 6 | |||||
Purchase of subsidiary shares from noncontrolling interest, net | (1) | ||||||
Common stock repurchased | (1,183) | ||||||
Other | (14) | ||||||
Net income attributable to common shareholders | $ 2,753 | 2,753 | |||||
Dividends on common stock | (2,477) | ||||||
Dividends on ESOP common stock | (42) | ||||||
Other comprehensive income (loss), net of tax | 516 | ||||||
Net income | 87 | ||||||
Less: Redeemable noncontrolling interest net income | (3) | ||||||
Dividends attributable to noncontrolling interest | (51) | ||||||
Disposition of noncontrolling interest, net | (3) | ||||||
Shares of common stock issued under employee plans, net | 1,230 | ||||||
Shares of common stock repurchased | 11,954 | ||||||
Dividends declared per share of common stock | $ 1.730 | ||||||
Equity | $ 74,347 | ||||||
Stockholders' Equity Attributable to Parent | 38,031 | (16,112) | 52,891 | (26) | (1,989) | ||
Noncontrolling interest | 1,552 | ||||||
Common stock plans activity | 198 | 4 | |||||
Purchase of subsidiary shares from noncontrolling interest, net | (1) | ||||||
Common stock repurchased | (601) | ||||||
Other | (13) | ||||||
Net income attributable to common shareholders | $ 1,327 | 1,327 | |||||
Dividends on common stock | (1,687) | ||||||
Dividends on ESOP common stock | (29) | ||||||
Other comprehensive income (loss), net of tax | 487 | ||||||
Net income | 32 | ||||||
Less: Redeemable noncontrolling interest net income | (1) | ||||||
Dividends attributable to noncontrolling interest | (7) | ||||||
Disposition of noncontrolling interest, net | 0 | ||||||
Shares of common stock issued under employee plans, net | 410 | ||||||
Shares of common stock repurchased | 6,036 | ||||||
Dividends declared per share of common stock | $ 1.180 | ||||||
Equity | $ 74,056 | ||||||
Stockholders' Equity Attributable to Parent | 38,228 | (16,713) | 52,489 | (22) | (1,502) | ||
Noncontrolling interest | 1,576 | ||||||
Equity | 61,410 | ||||||
Stockholders' Equity Attributable to Parent | 59,798 | 37,055 | (26,977) | 52,154 | (15) | (2,419) | |
Noncontrolling interest | 1,612 | 1,612 | |||||
Common stock plans activity | 247 | 8 | |||||
Purchase of subsidiary shares from noncontrolling interest, net | 0 | ||||||
Common stock repurchased | (103) | ||||||
Other | (27) | ||||||
Net income attributable to common shareholders | $ 1,820 | 1,820 | |||||
Dividends on common stock | (2,415) | ||||||
Dividends on ESOP common stock | (44) | ||||||
Other comprehensive income (loss), net of tax | (299) | ||||||
Net income | 98 | ||||||
Less: Redeemable noncontrolling interest net income | (4) | ||||||
Dividends attributable to noncontrolling interest | (41) | ||||||
Disposition of noncontrolling interest, net | 0 | ||||||
Shares of common stock issued under employee plans, net | 4,378 | ||||||
Shares of common stock repurchased | 1,046 | ||||||
Dividends declared per share of common stock | $ 1.850 | ||||||
Equity | $ 62,100 | ||||||
Stockholders' Equity Attributable to Parent | 37,108 | (27,029) | 53,052 | (11) | (2,635) | ||
Noncontrolling interest | 1,615 | ||||||
Common stock plans activity | 194 | 4 | |||||
Purchase of subsidiary shares from noncontrolling interest, net | 0 | ||||||
Common stock repurchased | (51) | ||||||
Other | 1 | ||||||
Net income attributable to common shareholders | $ 111 | 111 | |||||
Dividends on common stock | (1,646) | ||||||
Dividends on ESOP common stock | (30) | ||||||
Other comprehensive income (loss), net of tax | (83) | ||||||
Net income | 64 | ||||||
Less: Redeemable noncontrolling interest net income | (4) | ||||||
Dividends attributable to noncontrolling interest | (10) | ||||||
Disposition of noncontrolling interest, net | 0 | ||||||
Shares of common stock issued under employee plans, net | 1,219 | ||||||
Shares of common stock repurchased | 486 | ||||||
Dividends declared per share of common stock | $ 1.260 | ||||||
Equity | $ 60,650 | ||||||
Stockholders' Equity Attributable to Parent | 58,985 | $ 37,302 | $ (27,080) | $ 51,488 | $ (7) | $ (2,718) | |
Noncontrolling interest | $ 1,665 | $ 1,665 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The Condensed Consolidated Financial Statements at June 30, 2024 and for the quarters and six months ended June 30, 2024 and 2023 are unaudited, and in the opinion of management include adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods. The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the financial statements and notes in our 2023 Annual Report on Form 10-K. Unless the context otherwise requires, the terms “we,” “our,” “us,” “the Company,” and “RTX” mean RTX Corporation and its subsidiaries. We reclassified certain immaterial prior period amounts within the Condensed Consolidated Statement of Cash Flows to conform to our current period presentation. Effective July 1, 2023, we streamlined the structure of our core businesses to three principal business segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. Prior period information has been recast to conform to our current period presentation. Raytheon follows a 4-4-5 fiscal calendar while Collins and Pratt & Whitney use a quarter calendar end. Throughout this Form 10-Q, when we refer to the quarters and six months ended June 30, 2024 and 2023 with respect to Raytheon, we are referring to their June 30, 2024 and July 2, 2023 fiscal quarter ends, respectively. Legal Matters. The Company has made progress in the quarter ended June 30, 2024 toward resolving several outstanding legal matters, herein referred to as “Expected Resolution of Certain Legal Matters.” The Company expects to enter into a deferred prosecution agreement with the Department of Justice (DOJ) and to be subject to an administrative order with the Securities and Exchange Commission (SEC) to resolve the previously disclosed criminal and civil government investigations into improper payments made by Raytheon Company and its joint venture, Thales-Raytheon Systems (TRS), in connection with certain Middle East contracts since 2012 (Thales-Raytheon Systems and Related Matters); the Company also expects to enter into a deferred prosecution agreement and a False Claims Act (FCA) settlement agreement with the DOJ to resolve previously disclosed criminal and civil government investigations into defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013 and in 2017 (DOJ Investigation and Contract Pricing Disputes). In addition, the Company has made progress in the quarter ended June 30, 2024 toward resolving certain voluntarily disclosed export controls violations primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, including certain violations expected to be resolved pursuant to a consent agreement with the Department of State (DOS) (Trade Compliance Matters). As a result of the progress made, we recorded a combined pre-tax charge of $918 million during the quarter ended June 30, 2024, which included an accrual of $269 million related to the DOJ Investigation and Contract Pricing Disputes (in addition to amounts previously accrued), an accrual of $364 million related to Thales-Raytheon Systems and Related Matters (in addition to amounts previously accrued), and an accrual of $285 million related to Trade Compliance Matters. See “Note 16: Commitments and Contingencies” for additional information. Pratt & Whitney Powder Metal Matter. As previously disclosed, Pratt & Whitney has determined that a rare condition in powder metal used to manufacture certain engine parts requires accelerated inspection of the PW1100G-JM (PW1100) Geared Turbofan (GTF) fleet, which powers the A320neo family of aircraft (A320neo) (herein referred to as the “Powder Metal Matter”). See “Note 16: Commitments and Contingencies” for additional information. Russia Sanctions. In response to Russia’s invasion of Ukraine, the U.S. government and the governments of various jurisdictions in which we operate, have imposed broad economic sanctions and export controls targeting specific industries, entities, and individuals in Russia. As a result of the Canadian government’s imposition of sanctions in February 2024, including those imposed on U.S.- and German-based Russian-owned entities from which we source titanium for use in our Canadian operations, we recorded charges of $175 million in the first quarter of 2024 within our Collins segment. These charges are primarily related to the recognition of unfavorable purchase commitments and an impairment of contract fulfillment costs that are no longer recoverable as a result of initiating alternative titanium sources. We continue to monitor developments, including additional sanctions and other measures, that could adversely affect the Company and/or our supply chain, business partners, or customers. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Note 2: Acquisitions and Dispositions Dispositions. On March 29, 2024, we completed the sale of our Cybersecurity, Intelligence and Services (CIS) business within our Raytheon segment for proceeds of approximately $1.3 billion in cash, resulting in an aggregate pre-tax gain, net of transaction and other related costs, of $0.4 billion ($0.2 billion after tax), primarily recognized in Other income (expense), net within the Condensed Consolidated Statement of Operations. As previously disclosed, on July 20, 2023, we entered into a definitive agreement to sell the actuation and flight control business within our Collins segment to Safran S.A. for gross proceeds of approximately $1.8 billion. On November 16, 2023, the Italian government notified RTX that it had denied Safran’s proposed acquisition of the portion of the Collins business conducted by Microtecnica S.r.l. On June 4, 2024, the Italian government notified RTX that it will now approve the proposed transaction in response to additional commitments Safran has agreed to make in respect of the proposed transaction. The closing of the transaction is subject to other regulatory approvals and other customary closing conditions. On July 1, 2024, we entered into a definitive agreement to sell our Goodrich Hoist & Winch business within our Collins segment for approximately $0.5 billion in cash. The closing of the transaction is subject to regulatory approvals and other customary closing conditions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 3: Goodwill and Intangible Assets Goodwill. Changes in our goodwill balances for the six months ended June 30, 2024 were as follows: (dollars in millions) Balance as of December 31, 2023 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of June 30, 2024 Collins Aerospace (1) $ 33,135 $ (263) $ (91) $ 32,781 Pratt & Whitney 1,563 — — 1,563 Raytheon 18,984 — 2 18,986 Total Segments 53,682 (263) (89) 53,330 Eliminations and other 17 — — 17 Total $ 53,699 $ (263) $ (89) $ 53,347 (1) The reduction in Acquisitions and Divestitures includes the reclassification of goodwill to held for sale assets. Intangible Assets. Identifiable intangible assets are comprised of the following: June 30, 2024 December 31, 2023 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Collaboration assets $ 5,947 $ (1,816) $ 5,810 $ (1,688) Exclusivity assets 3,581 (365) 3,460 (352) Developed technology and other 1,203 (670) 1,219 (635) Customer relationships 29,516 (11,547) 29,605 (10,683) 40,247 (14,398) 40,094 (13,358) Indefinite-lived: Trademarks and other 8,654 — 8,663 — Total $ 48,901 $ (14,398) $ 48,757 $ (13,358) Amortization of intangible assets for the quarters and six months ended June 30, 2024 and 2023 was $534 million and $1,060 million and $510 million and $1,019 million, respectively. The following is the expected amortization of intangible assets for the remainder of 2024 through 2029: (dollars in millions) Remaining 2024 2025 2026 2027 2028 2029 Amortization expense $ 1,157 $ 2,074 $ 1,993 $ 1,878 $ 1,795 $ 1,616 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4: Earnings Per Share Quarter Ended June 30, Six Months Ended June 30, (dollars and shares in millions, except per share amounts) 2024 2023 2024 2023 Net income attributable to common shareowners $ 111 $ 1,327 $ 1,820 $ 2,753 Basic weighted average number of shares outstanding 1,331.8 1,457.5 1,330.5 1,459.9 Stock awards and equity units (share equivalent) 10.3 11.2 9.2 11.6 Diluted weighted average number of shares outstanding 1,342.1 1,468.7 1,339.7 1,471.5 Earnings Per Share attributable to common shareowners: Basic $ 0.08 $ 0.91 $ 1.37 $ 1.89 Diluted 0.08 0.90 1.36 1.87 The computation of diluted earnings per share (EPS) excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the common stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted EPS excludes the effect of the potential release or exercise of stock awards when the awards’ assumed proceeds exceed the average market price of the common shares during the period. For the quarter and six months ended June 30, 2024, the number of stock awards excluded from the computation was 3.9 million and 9.6 million, respectively. For both the quarter and six months ended June 30, 2023, the number of stock awards excluded from the computation was 4.0 million. |
Changes in Contract Estimates a
Changes in Contract Estimates at Completion | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Changes in Contract Estimates at Completion | Note 5: Changes in Contract Estimates at Completion We review our Estimates at Completion (EACs) at least annually or when a change in circumstances warrants a modification to a previous estimate. For significant contracts, we review our EACs more frequently. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many inputs, and requires significant judgment by management on a contract by contract basis. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities, and the related changes in estimates of revenues and costs. The risks and opportunities relate to management’s judgment about the ability and cost to achieve the schedule, consideration of customer-directed delays or reductions in scheduled deliveries, technical requirements, customer activity levels, such as flight hours or aircraft landings, and related variable consideration. Management must make assumptions and estimates regarding contract revenues and costs, including estimates of labor productivity and availability, the complexity and scope of the work to be performed, the availability and cost of materials including any impact from changing costs or inflation, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer, overhead cost rates, and current and past maintenance cost and frequency driven by estimated aircraft and engine utilization and estimated useful lives of components, among others. In particular, fixed-price development programs involve significant management judgment, as development contracts by nature have elements that have not been done before and thus, are highly subject to future unexpected cost changes. Cost estimates may also include the estimated cost of satisfying our industrial cooperation agreements, sometimes in the form of either offset obligations or in-country industrial participation (ICIP) agreements, required under certain contracts. These obligations may or may not be distinct depending on their nature. If cash is paid to a customer to satisfy our offset obligations it is recorded as a reduction in the transaction price. Changes in estimates of net sales, cost of sales, and the related impact to operating profit on contracts recognized over time are recognized on a cumulative catch-up basis, which recognizes the cumulative effect of the profit changes on current and prior periods based on a performance obligation’s percentage-of-completion in the current period. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. Our EAC adjustments also include the establishment of, and changes to, loss provisions for our contracts accounted for on a percentage-of-completion basis. Net EAC adjustments had the following impact on our operating results: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts) 2024 2023 2024 2023 Total net sales $ 3 $ (29) $ (15) $ (69) Operating profit (62) (30) (224) (154) Income attributable to common shareowners (1) (49) (24) (177) (122) Diluted earnings per share attributable to common shareowners (1) $ (0.04) $ (0.02) $ (0.13) $ (0.08) (1) Amounts reflect a U.S. statutory tax rate of 21%, which approximates our tax rate on our EAC adjustments. In addition to the amounts included in the table above, during the quarter ended June 30, 2024, Raytheon initiated the termination of a fixed price development contract with a foreign customer, herein referred to as “Raytheon Contract Termination.” As a result of this action, Raytheon recognized a $575 million charge related to the estimated impact of this termination. This charge includes the write-off of remaining contract assets and our best estimate of the expected settlement in conjunction with this termination. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 6: Accounts Receivable, Net Accounts receivable, net consisted of the following: (dollars in millions) June 30, 2024 December 31, 2023 Accounts receivable $ 10,561 $ 11,154 Allowance for expected credit losses (309) (316) Total accounts receivable, net $ 10,252 $ 10,838 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | Note 7: Contract Assets and Liabilities Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities were as follows: (dollars in millions) June 30, 2024 December 31, 2023 Contract assets $ 13,581 $ 12,139 Contract liabilities (17,665) (17,183) Net contract liabilities $ (4,084) $ (5,044) Contract assets increased $1.4 billion during the six months ended June 30, 2024 primarily due to sales in excess of billings on certain contracts at Pratt & Whitney and Raytheon. Contract liabilities increased $0.5 billion during the six months ended June 30, 2024 primarily due to billings in excess of sales on certain contracts at Raytheon. We recognized revenue of $1.8 billion and $4.4 billion during the quarter and six months ended June 30, 2024, respectively, related to contract liabilities outstanding as of January 1, 2024 and recognized revenue of $1.5 billion and $3.4 billion during the quarter and six months ended June 30, 2023, respectively, related to contract liabilities outstanding as of January 1, 2023. As of June 30, 2024, our Contract liabilities include approximately $405 million of advance payments received from a Middle East customer on contracts for which we no longer believe we will be able to execute on or obtain required regulatory approvals. These advance payments may become refundable to the customer if the contracts are ultimately terminated. Contract assets are net of an allowance for expected credit losses of $203 million and $197 million as of June 30, 2024 and December 31, 2023, respectively. |
Inventory, Net
Inventory, Net | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory, net | Note 8: Inventory, net Inventory, net consisted of the following: (dollars in millions) June 30, 2024 December 31, 2023 Raw materials $ 4,250 $ 3,911 Work-in-process 4,686 4,162 Finished goods 4,111 3,704 Total inventory, net $ 13,047 $ 11,777 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | Note 9: Borrowings and Lines of Credit As of June 30, 2024, we had a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion, which expires in August 2028. As of June 30, 2024, there were no borrowings outstanding under this agreement. From time to time, we use commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments, and repurchases of our common stock. The commercial paper notes have original maturities of not more than 364 days from the date of issuance. As of June 30, 2024, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement. At June 30, 2024 and December 31, 2023, we had no commercial paper borrowings outstanding. During the six months ended June 30, 2024, we had no new borrowings or repayments of commercial paper with maturities greater than 90 days. During the six months ended June 30, 2023, we had no new borrowings and $200 million in repayments of commercial paper with maturities greater than 90 days. There were no issuances of long-term debt during the six months ended June 30, 2024. We had the following issuances of long-term debt during the six months ended June 30, 2023: Date Description of Notes Aggregate Principal Balance (in millions) February 27, 2023 5.000% notes due 2026 $ 500 5.150% notes due 2033 1,250 5.375% notes due 2053 1,250 There were no repayments of long-term debt during the six months ended June 30, 2023. We made the following repayments of long-term debt during the six months ended June 30, 2024: Date Description of Notes Aggregate Principal Balance (in millions) May 7, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 $ 250 April 17, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 250 April 4, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 250 March 15, 2024 3.200% notes due 2024 950 (dollars in millions) June 30, 2024 December 31, 2023 3.200% notes due 2024 (1) $ — $ 950 3.150% notes due 2024 (1) 300 300 3 Month SOFR plus 1.225% term loan due 2025 1,250 2,000 3.950% notes due 2025 (1) 1,500 1,500 5.000% notes due 2026 (1) 500 500 2.650% notes due 2026 (1) 719 719 3 Month SOFR plus 1.225% term loan due 2026 2,000 2,000 5.750% notes due 2026 (1) 1,250 1,250 3.125% notes due 2027 (1) 1,100 1,100 3.500% notes due 2027 (1) 1,300 1,300 7.200% notes due 2027 (1) 382 382 7.100% notes due 2027 135 135 6.700% notes due 2028 285 285 7.000% notes due 2028 (1) 185 185 4.125% notes due 2028 (1) 3,000 3,000 5.750% notes due 2029 (1) 500 500 7.500% notes due 2029 (1) 414 414 2.150% notes due 2030 (€500 million principal value) (1) 535 548 2.250% notes due 2030 (1) 1,000 1,000 6.000% notes due 2031 (1) 1,000 1,000 1.900% notes due 2031 (1) 1,000 1,000 2.375% notes due 2032 (1) 1,000 1,000 5.150% notes due 2033 (1) 1,250 1,250 6.100% notes due 2034 (1) 1,500 1,500 5.400% notes due 2035 (1) 446 446 6.050% notes due 2036 (1) 410 410 6.800% notes due 2036 (1) 117 117 7.000% notes due 2038 148 148 6.125% notes due 2038 (1) 575 575 4.450% notes due 2038 (1) 750 750 5.700% notes due 2040 (1) 553 553 4.875% notes due 2040 (1) 600 600 4.700% notes due 2041 (1) 425 425 4.500% notes due 2042 (1) 3,500 3,500 4.800% notes due 2043 (1) 400 400 4.200% notes due 2044 (1) 300 300 4.150% notes due 2045 (1) 850 850 3.750% notes due 2046 (1) 1,100 1,100 4.050% notes due 2047 (1) 600 600 4.350% notes due 2047 (1) 1,000 1,000 4.625% notes due 2048 (1) 1,750 1,750 3.125% notes due 2050 (1) 1,000 1,000 2.820% notes due 2051 (1) 1,000 1,000 3.030% notes due 2052 (1) 1,100 1,100 5.375% notes due 2053 (1) 1,250 1,250 6.400% notes due 2054 (1) 1,750 1,750 Other (including finance leases) 254 255 Total principal long-term debt 41,983 43,697 Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs) (63) (59) Total long-term debt 41,920 43,638 Less: current portion 1,617 1,283 Long-term debt, net of current portion $ 40,303 $ 42,355 (1) We may redeem these notes, in whole or in part, at our option pursuant to their terms prior to the applicable maturity date. The average maturity of our long-term debt as of June 30, 2024 is approximately 13 years. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 10: Employee Benefit Plans Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension and postretirement benefit (PRB) plans and defined contribution plans. Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2024 2023 2024 2023 U.S. qualified defined benefit plans $ — $ — $ — $ — International defined benefit plans 10 20 12 28 PRB plans 4 8 13 12 Defined contribution plans 339 317 734 689 The amounts recognized in the Condensed Consolidated Balance Sheet consist of: (dollars in millions) June 30, 2024 December 31, 2023 Noncurrent pension assets (included in Other assets) $ 1,906 $ 1,296 Current pension and PRB liabilities (included in Accrued employee compensation) 270 270 Future pension and postretirement benefit obligations 2,264 2,385 The amounts recognized in Future pension and postretirement benefit obligations consist of: (dollars in millions) June 30, 2024 December 31, 2023 Noncurrent pension liabilities $ 1,634 $ 1,737 Noncurrent PRB liabilities 568 582 Other pension and PRB related items 62 66 Future pension and postretirement benefit obligations $ 2,264 $ 2,385 The components of net periodic (income) expense for our defined pension and PRB plans were as follows: Pension Benefits Quarter Ended June 30, PRB Quarter Ended June 30, (dollars in millions) 2024 2023 2024 2023 Operating expense Service cost $ 47 $ 56 $ 1 $ 1 Non-operating expense Interest cost 596 627 11 12 Expected return on plan assets (936) (938) (5) (5) Amortization of prior service credit (42) (40) — — Recognized actuarial net (gain) loss 5 (95) (6) (8) Net settlement, curtailment, and special termination benefit (gain) loss 3 — — — Non-service pension income (374) (446) — (1) Total net periodic (income) expense $ (327) $ (390) $ 1 $ — Pension Benefits Six Months Ended June 30, PRB Six Months Ended June 30, (dollars in millions) 2024 2023 2024 2023 Operating expense Service cost $ 94 $ 111 $ 2 $ 2 Non-operating expense Interest cost 1,192 1,253 22 24 Expected return on plan assets (1,873) (1,875) (10) (10) Amortization of prior service credit (85) (79) — — Recognized actuarial net (gain) loss 10 (190) (12) (16) Net settlement, curtailment and special termination benefit (gain) loss (4) 2 — — Non-service pension income (760) (889) — (2) Total net periodic (income) expense $ (666) $ (778) $ 2 $ — We have set aside assets in separate trusts, which we expect to be used to pay for certain nonqualified defined benefit and defined contribution plan obligations in excess of qualified plan limits. These assets are included in Other assets in our Condensed Consolidated Balance Sheet. The fair value of marketable securities held in trusts was as follows: (dollars in millions) June 30, 2024 December 31, 2023 Marketable securities held in trusts $ 714 $ 745 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11: Income Taxes Our effective tax rates for the quarter and six months ended June 30, 2024 were 59.1% and 15.8%, respectively, as compared to 15.4% and 17.0% for the quarter and six months ended June 30, 2023, respectively. The increase in the effective tax rate for the quarter ended June 30, 2024 as compared to the quarter ended June 30, 2023 is primarily driven by a $918 million charge associated with the Expected Resolution of Certain Legal Matters accrued during the quarter ended June 30, 2024 where no tax benefit has been recorded. Additionally, the annualized effective tax rate currently forecasted for 2024 is higher than the comparable period in 2023, principally driven by lower U.S. federal research and development tax credits and higher non-U.S. income taxes. The higher forecasted non-U.S. income taxes are principally driven by legislation enacted during the quarter ended June 30, 2024 by the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two initiatives. The effective tax rate for the six months ended June 30, 2024 includes a $275 million tax benefit recognized in the quarter ended March 31, 2024 resulting from the conclusion of the examination phases of the RTX and Rockwell Collins audits and $143 million of tax costs associated with the sale of the CIS business. The resulting net tax benefit from these items, coupled with lower year to date pre-tax income, more than offset the effective tax rate impact of a $918 million charge associated with the Expected Resolution of Certain Legal Matters accrued during the quarter ended June 30, 2024 where no tax benefit has been recorded. We conduct business globally and, as a result, RTX or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Canada, China, France, Germany, India, Poland, Saudi Arabia, Singapore, Switzerland, the United Kingdom, and the United States. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2014. The Company filed protests with respect to certain IRS proposed adjustments for RTX (formerly United Technologies Corporation) tax years 2017 and 2018, pre-acquisition Rockwell Collins tax years 2016, 2017 and 2018, and pre-merger Raytheon Company tax years 2017, 2018 and 2019, as well as certain refund claims of Raytheon Company for tax years 2014, 2015 and 2016 filed prior to the Raytheon merger. The Company will dispute these adjustments at the Appeals Division of the IRS. The timing of any resolution at the Appeals Division is uncertain. Separately, the Company expects the IRS’ examination of RTX’s tax year 2020 to commence in the fourth quarter of 2024. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. It is reasonably possible that over the next 12 months the amount |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 12: Financial Instruments We enter into derivative instruments primarily for risk management purposes, including derivatives designated as hedging instruments and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates, and commodity prices. These fluctuations can increase the costs of financing, investing, and operating the business. We have used derivative instruments, including swaps, forward contracts, and options, to manage certain foreign currency, interest rate, and commodity price exposures. The present value of the aggregate notional principal of our outstanding foreign currency hedges was $15.7 billion and $15.8 billion at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, all derivative contracts accounted for as cash flow hedges will m ature by March 2036. The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments: (dollars in millions) Balance Sheet Location June 30, 2024 December 31, 2023 Derivatives designated as hedging instruments: Foreign exchange contracts Other assets, current $ 161 $ 225 Other accrued liabilities 128 143 Derivatives not designated as hedging instruments: Foreign exchange contracts Other assets, current $ 43 $ 83 Other accrued liabilities 64 37 The effect of cash flow hedging relationships on Accumulated other comprehensive loss and on the Condensed Consolidated Statement of Operations in the quarters and six months ended June 30, 2024 and 2023 are presented in “Note 17: Equity.” The amounts of gain or loss are attributable to foreign exchange contract activity and are primarily recorded as a component of Products sales when reclassified from Accumulated other comprehensive loss. The Company utilizes the critical terms match method in assessing derivatives for hedge effectiveness. Accordingly, the hedged items and derivatives designated as hedging instruments are highly effective. As of June 30, 2024, our €500 million principal value of euro-denominated long-term debt qualifies as a net investment hedge against our investments in European businesses, which is deemed to be effective. The effect of derivatives not designated as hedging instruments is included within Other income (expense), net, on the Condensed Consolidated Statement of Operations and is not significant. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13: Fair Value Measurements The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring basis in our Condensed Consolidated Balance Sheet: June 30, 2024 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 714 $ 650 $ 64 $ — Derivative assets 204 — 204 — Derivative liabilities 192 — 192 — December 31, 2023 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 745 $ 682 $ 63 $ — Derivative assets 308 — 308 — Derivative liabilities 180 — 180 — Valuation Techniques. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk, and our counterparties’ credit risks. As of June 30, 2024, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties’ credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet: June 30, 2024 December 31, 2023 (dollars in millions) Carrying Fair Carrying Fair Customer financing notes receivable $ 66 $ 57 $ 74 $ 63 Long-term debt (excluding finance leases) 41,828 38,542 43,546 41,598 The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet: June 30, 2024 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable $ 57 $ — $ 57 $ — Long-term debt (excluding finance leases) 38,542 — 35,250 3,292 December 31, 2023 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable $ 63 $ — $ 63 $ — Long-term debt (excluding finance leases) 41,598 — 37,559 4,039 The fair value of our Short-term borrowings approximates the carrying value due to their short-term nature and is classified as level 3 within the fair value hierarchy. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Schedule of Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 14: Variable Interest Entities Pratt & Whitney holds a 61% program share interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC), and a 49.5% ownership interest in IAE. IAE’s business purpose is to coordinate the design, development, manufacturing, and product support of the V2500 engine program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC, and MTU are participants in the International Aero Engines, LLC (IAE LLC) collaboration, whose business purpose is to coordinate the design, development, manufacturing, and product support for the PW1100G-JM engine for the Airbus A320neo family of aircraft. Pratt & Whitney holds a 59% program share interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney as the primary beneficiary. IAE and IAE LLC have, therefore, been consolidated. Other collaborators participate in Pratt & Whitney’s program share interest in IAE and IAE LLC. Pratt & Whitney’s net program share interest in IAE and IAE LLC, after considering its sub-collaborator share, is 57% and 51%, respectively. The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows: (dollars in millions) June 30, 2024 December 31, 2023 Current assets $ 9,869 $ 9,309 Noncurrent assets 1,005 860 Total assets $ 10,874 $ 10,169 Current liabilities $ 12,792 $ 13,020 Noncurrent liabilities 111 31 Total liabilities $ 12,903 $ 13,051 |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees [Abstract] | |
Guarantees | Note 15: Guarantees We extend a variety of financial, market value, and product performance guarantees to third parties. These instruments expire on various dates through 2032. Additional guarantees of project performance for which there is no stated value also remain outstanding. A portion of our third party guarantees are subject to indemnification for our benefit for any liabilities that could arise. As of June 30, 2024 and December 31, 2023, the following financial guarantees were outstanding: June 30, 2024 December 31, 2023 (dollars in millions) Maximum Potential Payment Carrying Amount of Liability Maximum Potential Payment Carrying Amount of Liability Commercial aerospace financing arrangements $ 286 $ — $ 288 $ — Third party guarantees 271 1 386 1 We have made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. Collaboration partners’ share of these financing guarantees were $134 million and $135 million at June 30, 2024 and December 31, 2023, respectively. We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax, and employment matters. The maximum potential payment related to these obligations is not a specified amount, as a number of the obligations do not contain financial caps. The carrying amount of liabilities related to these obligations were $98 million and $97 million at June 30, 2024 and December 31, 2023, respectively. These primarily relate to environmental liabilities, which are included in our total environmental liabilities as further discussed in “Note 16: Commitments and Contingencies.” We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. We also provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claims data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2024 and 2023 were as follows: (dollars in millions) 2024 2023 Balance as of January 1 $ 1,091 $ 1,109 Warranties and performance guarantees issued 134 124 Settlements (152) (160) Other (5) 6 Balance as of June 30 $ 1,068 $ 1,079 Product and service guarantees incurred in connection with long term production contracts and certain aftermarket arrangements are generally accounted for within the contract estimates at completion. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16: Commitments and Contingencies Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, financial condition, or liquidity. Environmental. Our operations are subject to environmental regulation by federal, state, and local authorities in the United States and regulatory authorities with jurisdiction over our foreign operations. We have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs, and performance guarantees, and periodically reassess these amounts. We do not expect any additional liability to have a material adverse effect on our results of operations, financial condition, or liquidity. As of June 30, 2024 and December 31, 2023, we had $769 million and $760 million, respectively, reserved for environmental remediation. Commercial Aerospace Financing and Other Commitments. We had commercial aerospace financing commitments and other contractual commitments of approximately $14.4 billion and $14.6 billion as of June 30, 2024 and December 31, 2023, respectively, on a gross basis before reduction for our collaboration partners’ share. Aircraft financing commitments, in the form of debt or lease financing, are provided to certain commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. The majority of financing commitments are collateralized arrangements. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases, or pay deposits on behalf of our customers to secure production slots with the airframers (pre-delivery payments). Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by our customers. Associated risks on these commitments are mitigated due to the fact that interest rates are variable during the commitment term and are set at the date of funding based on current market conditions, the fair value of the underlying collateral, and the credit worthiness of our customers. As a result, the fair value of these financing commitments is expected to equal the amounts funded. We also have other contractual commitments to make payments to secure certain contractual rights to provide product on new aircraft platforms. The estimated amount and timing of these payments are generally based on future sales or engine flight hours. Payments made on these contractual commitments are included within intangible assets as exclusivity assets and are amortized over the term of underlying economic benefit. We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. In addition, in connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in IAE, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date. These flight hour payments are capitalized as collaboration intangible assets as payments are made. Other Financing Arrangements. We have entered into standby letters of credit and surety bonds with financial institutions to meet various bid, performance, warranty, retention, and advance payment obligations for us or our affiliates. We enter into these agreements to assist certain affiliates in obtaining financing on more favorable terms, making bids on contracts and performing their contractual obligations. The stated values of these letters of credit agreements and surety bonds totaled $3.1 billion as of June 30, 2024. Offset / Industrial Participation Obligations. We have entered into industrial cooperation agreements, sometimes in the form of either offset agreements or ICIP agreements, as a condition to obtaining orders for our products and services from certain customers in foreign countries. At June 30, 2024, the aggregate amount of these agreements, both agreed to and anticipated to be agreed to, had an outstanding notional value of approximately $12.6 billion. These agreements are designed to return economic value to the foreign country by requiring us to engage in activities supporting local defense or commercial industries, promoting a balance of trade, developing in-country technology capabilities, or addressing other local development priorities. Offset agreements may be satisfied through activities that do not require a direct cash payment, including transferring technology, providing manufacturing, training, and other consulting support to in-country projects, and the purchase by third parties (e.g., our vendors) of supplies from in-country vendors. These agreements may also be satisfied through our use of cash for activities such as subcontracting with local partners, purchasing supplies from in-country vendors, providing financial support for in-country projects, and making investments in local ventures. Such activities may also vary by country depending upon requirements as dictated by their governments. We typically do not commit to offset agreements until orders for our products or services are definitive. The amounts ultimately applied against our offset agreements are based on negotiations with the customers and typically require cash outlays that represent only a fraction of the notional value in the offset agreements. Offset programs usually extend over several or more years and may provide for penalties in the event we fail to perform in accordance with offset requirements. Historically, we have not been required to pay any penalties of significance. Government Oversight. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. For example, we are now, and believe that, in light of the current U.S. government contracting and overall enforcement environment, we will continue to be the subject of one or more U.S. government investigations. Our contracts with the U.S. government are also subject to audits. Agencies that oversee contract performance include: the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA), the Inspectors General of the U.S. Department of Defense (DoD) and other departments and agencies, the Government Accountability Office (GAO), the Department of Justice (DOJ), and Congressional Committees. Other areas of our business operations may also be subject to audit and investigation by these and other agencies. From time to time, agencies investigate or conduct audits to determine whether our operations are being conducted in accordance with applicable requirements. Such investigations and audits may be initiated due to a number of reasons, including as a result of a whistleblower complaint. Such investigations and audits could result in administrative, civil or criminal liabilities, including the imposition of repayment obligations, fines, treble or other damages, forfeitures, disgorgement, restitution, or penalties, the suspension of government export licenses, and/or suspension or debarment from future U.S. government contracting. They could also result in deferred prosecution agreements, consent agreements, guilty plea agreements, and/or imposition of an independent compliance monitor. U.S. government investigations often take years to complete. As noted above, the U.S. government reserves the right to suspend or debar a contractor from receiving new government contracts for fraudulent, criminal, or other seriously improper conduct. The U.S. government could also void any contracts found to be tainted by fraud. Like many defense contractors, we have received audit reports recommending the reduction of certain contract prices because, for example, cost or pricing data or cost accounting practices used to price and negotiate those contracts may not have conformed to government regulations. Some of these audit reports recommend that certain payments be repaid, delayed, or withheld, and may involve substantial amounts. We have made voluntary refunds in those cases we believe appropriate, have settled some allegations and, in some cases, continue to negotiate and/or litigate. The Company may be, and in some cases has been, required to make payments into escrow of disputed liabilities while the related litigation is pending. If the litigation is resolved in the Company’s favor, any such payments will be returned to the Company with interest. Our final allowable incurred costs for each year are also subject to audit and have, from time to time, resulted in disputes between us and the U.S. government, with litigation resulting at the Court of Federal Claims (COFC) or the Armed Services Board of Contract Appeals (ASBCA), or their related courts of appeals. In addition, the DOJ has, from time to time, convened grand juries to investigate possible irregularities by us. We also provide products and services to customers outside of the U.S., and those sales are subject to local government laws, regulations, and procurement policies and practices. Our compliance with such local government regulations or any applicable U.S. government regulations (e.g., Arms Export Control Act (AECA), Export Administration Regulations (EAR), Foreign Corrupt Practices Act (FCPA), and International Traffic in Arms Regulations (ITAR)) may also be investigated or audited. In addition, we accrue for liabilities associated with those matters that are probable and can be reasonably estimated. The most likely liability amount to be incurred is accrued based upon a range of estimates. Where no amount within a range of estimates is more likely, then we accrue the minimum amount. Other than as specifically disclosed in this Form 10-Q, we do not expect these audits, investigations or disputes to have a material effect on our results of operations, financial condition, or liquidity, either individually or in the aggregate. Tax Treatment of Carrier and Otis Dispositions. Management has determined that the distributions of Carrier and Otis on April 3, 2020, and certain related internal business separation transactions, qualified as tax-free under applicable law. In making these determinations, we applied the tax law in the relevant jurisdictions to our facts and circumstances and obtained tax rulings from the relevant taxing authorities, tax opinions, and/or other external tax advice related to the concluded tax treatment. If the completed distributions of Carrier or Otis or certain internal business separation transactions were to fail to qualify for tax-free treatment, the Company could be subject to significant liabilities, and there could be material adverse impacts on the Company’s business, results of operations, financial condition, or liquidity in future reporting periods. Pratt & Whitney Powder Metal Matter. Pratt & Whitney has determined that a rare condition in powder metal used to manufacture certain engine parts requires accelerated inspection of the PW1100 GTF fleet, which powers the A320neo. This determination was made pursuant to Pratt & Whitney’s safety management system. On August 4, 2023, Pratt & Whitney issued a special instruction (SI) to operators of PW1100 GTF powered A320neo aircraft, which required accelerated inspections and engine removals covering an initial subset of operational engines, no later than September 15, 2023. During the third quarter of 2023, through its safety management system, Pratt & Whitney continued its engineering and industrial assessment, which resulted in an updated fleet management plan for the remaining PW1100 fleet. This updated plan requires a combination of part inspections and retirements for some high pressure turbine and high pressure compressor parts made from affected raw material. Guidance to affected operators was released via service bulletins (SB) and SI in November 2023, and this guidance has been reflected in airworthiness directives issued by the Federal Aviation Administration (FAA). Consistent with previous information, the actions are expected to result in significant incremental shop visits through the end of 2026. As a result, Pratt & Whitney expects a significant increase in aircraft on ground levels for the PW1100 powered A320neo fleet through 2026. As a result of anticipated increased aircraft on ground levels and expected compensation to customers for this disruption, as well as incremental maintenance costs resulting from increased inspections and shop visits, Pratt & Whitney recorded a pre-tax operating profit charge in the third quarter of 2023 of $2.9 billion, reflecting Pratt & Whitney’s net 51% program share of the PW1100 program. This amount reflected our best estimate of expected customer compensation for the estimated duration of the disruption as well as the EAC adjustment impact of this matter to Pratt & Whitney’s long-term maintenance contracts. The incremental costs to the business’s long-term maintenance contracts include the estimated cost of additional inspections, replacement of parts, and other related impacts. The charge recorded in the third quarter of 2023 resulted in a net increase in Other accrued liabilities of $2.8 billion, which principally related to our 51% share of an accrual for expected customer compensation. At June 30, 2024 and December 31, 2023, we had Other accrued liabilities of $2.6 billion and $2.8 billion, respectively, primarily related to expected compensation to customers. The reduction in the accrual during the six months ended June 30, 2024 was due to customer compensation. Other engine models within Pratt & Whitney’s fleet contain parts manufactured with affected powder metal, but we do not currently believe there will be any resultant significant financial impact with respect to these other engine models at this time. The financial impact of the powder metal issue is based on historical experience and is subject to various assumptions and judgments, most notably, the number and expected timing of shop visits, inspection results and scope of work to be performed, turnaround time, availability of parts, available capacity at overhaul facilities and outcomes of negotiations with impacted customers. While these assumptions reflect our best estimates at this time, they are subject to variability. Potential changes to these assumptions and actual incurred costs could significantly affect the estimates inherent in our financial statements and could have a material effect on the Company’s results of operations for the periods in which they are recognized. Legal Proceedings. The Company and its subsidiaries are subject to various contract pricing disputes, government investigations, and litigation matters across jurisdictions, updates to certain of which are set forth below. Cost Accounting Standards Claims As previously disclosed, in April 2019, a Divisional Administrative Contracting Officer (DACO) of the United States DCMA asserted a claim against Pratt & Whitney to recover alleged overpayments of approximately $1.7 billion plus interest ($1.1 billion at June 30, 2024). The claim is based on Pratt & Whitney’s alleged noncompliance with Cost Accounting Standards (CAS) from January 1, 2007 to March 31, 2019, due to its method of allocating independent research and development costs to government contracts. Pratt & Whitney believes that the claim is without merit and filed an appeal to the ASBCA on June 7, 2019. As previously disclosed, in December 2013, a DCMA DACO asserted a claim against Pratt & Whitney to recover alleged overpayments of approximately $177 million plus interest ($169 million at June 30, 2024). The claim is based on Pratt & Whitney’s alleged noncompliance with CAS from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts. In 2014, Pratt & Whitney filed an appeal to the ASBCA. An evidentiary hearing was held and completed in June 2019. On November 22, 2021, the ASBCA issued its written decision sustaining in part and denying in part Pratt & Whitney’s appeal. The ASBCA rejected the DCMA’s asserted measure of the cost of collaborator parts, and ruled substantially in Pratt & Whitney’s favor on other liability issues. The ASBCA remanded the appeal to the parties for resolution of damages issues, which could require further proceedings at the ASBCA. On December 23, 2021, the DCMA filed a motion with the ASBCA seeking partial reconsideration of the November 22, 2021 decision. The motion for reconsideration was denied on August 29, 2022. On December 23, 2022, the DCMA filed an appeal to the United States Court of Appeals for the Federal Circuit. We continue to believe that the ASBCA’s rejection of the DCMA’s asserted measure of the cost of collaborator parts is well supported in fact and law and likely will be sustained. In December 2018, a DCMA DACO issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the CAS for calendar years 2013 through 2017. This second claim, which asserts the same measure of the cost of collaborator parts rejected by the ASBCA’s November 22, 2021 decision, demands payment of $269 million plus interest ($139 million at June 30, 2024). Pratt & Whitney appealed this second claim to the ASBCA in January 2019. In December 2023, a DCMA DACO issued a third claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the CAS for calendar years 2018 through 2022. This third claim, which asserts the same measure of the cost of collaborator parts rejected by the ASBCA’s prior decision, demands payment of $277 million plus interest ($66 million at June 30, 2024). Pratt & Whitney appealed this third claim to the ASBCA at the end of December 2023. Although subject to further litigation at the ASBCA and potentially further appellate proceedings, we continue to believe that the November 22, 2021 decision in the first claim will apply with equal legal effect to the second and third claims. Accordingly, we believe that the amounts demanded by the DCMA as set forth in the three claims are without legal basis and that any damages owed to the U.S. government for the three claims will not have a material adverse effect on our results of operations, financial condition, or liquidity. Thales-Raytheon Systems and Related Matters As previously disclosed, in 2019, Raytheon Company received a subpoena from the SEC seeking information in connection with an investigation into whether there were improper payments made by Raytheon Company, our joint venture known as Thales-Raytheon Systems (TRS), or anyone acting on their behalf, in connection with TRS or Raytheon Company contracts in certain Middle East countries since 2014. In the first quarter of 2020, the DOJ advised Raytheon Company it had opened a parallel criminal investigation. In the third quarter of 2020, Raytheon Company received an additional subpoena from the SEC, seeking information and documents as part of its investigation. Based on the government’s and our own internal investigations, the Company engaged in resolution discussions with the SEC and DOJ, and during the quarter ended June 30, 2024, the Company reached agreements in principle with the DOJ and SEC as to the principal elements of such resolutions. Resolution with the SEC and DOJ remains subject to reaching final agreements satisfactory to all parties and the final approval of the SEC, the DOJ and the Company. Pursuant to the agreements in principle reached, the Company expects that it will enter into a deferred prosecution agreement (DPA) with the DOJ under which the DOJ will defer, for a period of three years, criminal prosecution of Raytheon Company related to Raytheon Company’s conspiracy to violate the anti-bribery provisions of the FCPA and conspiracy to violate the AECA by failing to make related disclosures of certain payments that may qualify as fees, commissions and/or political contributions under Part 130 of the ITAR. If the Company, including Raytheon Company, fully complies with all of the obligations to be set forth in a final DPA during such DPA’s three-year term, the DOJ will move for dismissal with prejudice of the deferred charges against Raytheon Company. In addition, the Company expects that the SEC will issue an administrative cease and desist order finding that the Company violated the anti-bribery, books and records, and internal controls provisions of the FCPA. The Company also expects, based on the agreements in principle described above, that it will be required to retain an independent compliance monitor for Raytheon Company satisfactory to the DOJ and the SEC and undertake compliance self-reporting obligations for a three-year term. The compliance monitor will oversee our compliance with the DPA. The Company further expects that, as part of the resolution, it will pay the DOJ an amount that includes a criminal monetary penalty and forfeiture and the SEC an amount that includes disgorgement, prejudgment interest on disgorgement, and a civil penalty. The Company has recorded an aggregate accrual of $384 million for these matters during the quarter ended June 30, 2024. In the event that final agreements with the DOJ and the SEC are not reached, litigation may ensue and, accordingly, the actual loss incurred in connection with these matters, if any, could be less than, equal to or more than the aggregate accrued amount noted above. Based upon the status of discussions, we believe that the finalization of our agreements with the DOJ and the SEC will occur during the second half of 2024 and therefore, expect payments to be made within the same timeframe. However, there can be no assurance that final agreements of such resolutions will be reached or as to the timing or ultimate terms, including those described herein, of such final resolutions, if any. The Company does not believe that these matters, including the accrual (and the future payment of the accrual), will have a material adverse effect on our results of operations, financial condition, or liquidity. DOJ Investigation and Contract Pricing Disputes As previously disclosed, on October 8, 2020, the Company received a criminal subpoena from the DOJ seeking information and documents in connection with an investigation relating to financial accounting, internal controls over financial reporting, and cost reporting regarding Raytheon Company since 2009. The investigation involves multi-year contracts subject to governmental regulation, including potential defective pricing claims for certain Raytheon Company contracts entered into between 2011 and 2013. As part of the same investigation, on March 24, 2021, the Company received a second criminal subpoena from the DOJ seeking documents relating to a certain contract entered into in 2017 by Raytheon Company. Based on the government’s and our own internal investigations, the Company engaged in resolution discussions with the DOJ, and during the quarter ended June 30, 2024, the Company reached an agreement in principle with the DOJ as to the principal elements of such resolution. Resolution with the DOJ remains subject to reaching a final agreement satisfactory to all parties and the final approval of the DOJ and the Company. Pursuant to this agreement in principle, the Company expects that it will enter into a DPA with the DOJ under which the DOJ will defer, for a period of three years, criminal prosecution of Raytheon Company related to two counts of major fraud against the United States by Raytheon Company involving two legacy contracts. If the Company, including Raytheon Company, fully complies with all of the obligations to be set forth in a final DPA during such DPA’s three-year term, the DOJ will move for dismissal with prejudice of the deferred charge against Raytheon Company. In addition, the Company expects, based on the agreement in principle described above, that it will be required to retain an independent compliance monitor for Raytheon Company satisfactory to the DOJ and undertake self-reporting obligations for a three-year term. The compliance monitor will oversee our compliance with the DPA. In addition, the Company has been cooperating with the DOJ with respect to a related civil defective pricing investigation under the FCA. The Company also has reached an agreement in principle with the DOJ as to the principal elements necessary to resolve the related defective pricing investigation under the FCA. Resolution also remains subject to reaching a final agreement satisfactory to all parties and the final approval of the DOJ and the Company. The Company further expects that, as part of the resolution, it will pay the DOJ an amount that includes a criminal monetary penalty, an FCA settlement that includes restitution, and interest on the FCA settlement. The Company has updated its accrual for these matters to an aggregate accrual of $575 million as of June 30, 2024 . In the event that final agreement with the DOJ is not reached, litigation may ensue and, accordingly, the actual loss incurred in connection with these matters, if any, could be less than, equal to or more than the aggregate accrued amount noted above. Based upon the current status of discussions, we believe that the finalization of our agreement with the DOJ will occur during the second half of 2024 and therefore, expect payments to be made within the same timeframe . However, there can be no assurance that final agreements of such resolutions will be reached or as to the timing or ultimate terms, including those described herein, of such final resolutions if any. The Company does not believe that these matters, including the increased accrual (and the future payment of the accrual), will have a material adverse effect on our results of operations, financial condition, or liquidity. Trade Compliance Matters From time to time, we identify, investigate, remediate, and voluntarily disclose violations or potential violations of the ITAR and EAR to the relevant regulators. In May 2024, the Department of State’s Office of Defense Trade Controls Compliance (DTCC) informed the Company of its intent to seek administrative penalties for alleged violations of the AECA and the ITAR. The DTCC informed us that it considers certain of our voluntary disclosur es, primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, filed since 2019 to reflect deficiencies warranting a civil penalty. We are currently in discussions with the DTCC to reach a consent agreement, which we anticipate will provide for a payment by the Company, an independent compliance monitor, and commitments regarding additional remedial compliance efforts. At this time, the Company has determined that there is a probable risk of liability for potential penalties related to the anticipated consent agreement with the DTCC, as well as other export compliance matters which have been voluntarily disclosed to the cognizant regulators. We have accrued approximately $285 million for these matters in aggregate. Based on the current status of discussions, we believe that finalization of the consent agreement with the DTCC will occur during the second half of 2024, and we expect related payments to be made over the next three years. We are currently unable to estimate the timing or outcome of the other voluntarily disclosed export compliance matters that are not subject to the consent agreement. However, the Company does not believe the ultimate outcome of these matters will have a material adverse effect on our results of operations, financial condition, or liquidity. UTC Equity Conversion Litigation As previously disclosed, on December 6, 2022, a shareholder derivative lawsuit was filed in the Delaware Court of Chancery against the Company and certain current and former members of its Board of Directors, alleging that defendants breached their fiduciary duties in May 2020 by amending the method by which United Technologies Corporation (UTC) equity awards were converted to certain Company equity awards following the separation of UTC into three independent, publicly traded companies. We believe that the lawsuit lacks merit. Based on the information available to date, we do not believe that this matter will have a material adverse effect on our results of operations, financial condition, or liquidity. Civil Litigation Related to Employee Hiring Practices Pratt & Whitney is one of multiple defendants in a putative class action lawsuit pending in the United States District Court for the District of Connecticut alleging that Pratt & Whitney and the other defendants agreed to restrict the hiring and recruiting of certain engineers and skilled laborers in a manner that violated federal antitrust laws. Plaintiffs seek to represent different purported classes of engineers and skilled laborers employed by Pratt & Whitney and other supplier-defendants since 2011, and are seeking to recover treble damages in an undetermined amount, plus attorneys’ fees and costs of suit. We believe that the claims asserted lack merit. Based on the information available to date, we do not believe that this matter will have a material adverse effect on our results of operations, financial condition, or liquidity. In April 2024, a shareholder derivative lawsuit was filed in the Delaware Court of Chancery against the Company and certain current and former officers and directors of the Company alleging that defendants breached their fiduciary duties by failing to implement and enforce a reasonable oversight mechanism for compliance with antitrust laws. We believe that the lawsuit lacks merit. Based on the information available to date, we do not believe that this matter will have a material adverse effect on our results of operations, financial condition, or liquidity. Powder Metal Disclosure Litigation and SEC Investigation Following the Company’s disclosures of a rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts, two sets of civil actions were filed against RTX. First, two putative federal securities class action lawsuits were filed in the United States District Court for the District of Connecticut against the Company and certain current and former executives of the Company. The lawsuits allege that defendants violated federal securities laws by making material misstatements and omitting material facts relating to Pratt & Whitney’s GTF engine fleet, including the impact of the powder metal issue on the fleet, in various regulatory filings. The lawsuits were consolidated and remain pending. Second, multiple shareholder derivative lawsuits were filed against current and former officers and directors of the Company, all of which have now been consolidated into a single action which is pending in the United States District Court for the District of Delaware. The operative complaint in the consolidated action alleges that the defendants caused the Company to make materially false and misleading statements relating to Pratt & Whitney’s GTF engines, and failed to maintain an adequate system of oversight, disclosure controls and procedures, and internal controls over financial reporting. Based on the information available to date, we do not believe that either matter will have a material adverse effect on our results of operations, financial condition, or liquidity. On November 7, 2023, January 30, 2024, and May 21, 2024, the Company received subpoenas from the SEC seeking engineering, operational, organizational, accounting, and financial documents in connection with an investigation relating to the Company’s disclosures in 2023 of issues arising from Pratt & Whitney’s use of powder metal in manufacturing various engine parts, its identification of certain risks associated with those manufacturing processes, and corrective actions identified by Pratt & Whitney to mitigate those risks. The Comp |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17: Equity Common Stock - Share Repurchases. On October 24, 2023, we entered into accelerated share repurchase (ASR) agreements with certain financial institution counterparties to repurchase shares of our common stock for an aggregate purchase price of $10 billion. Pursuant to the ASR agreements, we made aggregate payments of $10 billion on October 26, 2023, and received initial deliveries of approximately 108.4 million shares of our common stock at a price of $78.38 per share, which, on that date, represented approximately 85% of the shares expected to be repurchased. The total number of shares to be repurchased is subject to final settlement as discussed below. The aggregate purchase price was recorded as a reduction to Shareowners’ equity, consisting of an $8.5 billion increase in Treasury stock and a $1.5 billion decrease in Common stock. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. Upon final settlement of the ASR, under certain circumstances, each of the counterparties may be required to deliver additional shares of common stock, or we may be required to deliver shares of common stock or to make a cash payment to the counterparties, at our election. The final settlement of each transaction under the ASR agreements is scheduled to occur no later than the third quarter of 2024 and in each case may be accelerated at the option of the applicable counterparty. Accumulated Other Comprehensive Loss. A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2024 and 2023 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss Quarter Ended June 30, 2024 Balance at March 31, 2024 $ (562) $ (2,065) $ (8) $ (2,635) Other comprehensive income (loss) before reclassifications, net (68) (3) 20 (51) Amounts reclassified, pre-tax — (43) 1 (42) Tax benefit (expense) (2) 9 3 10 Balance at June 30, 2024 $ (632) $ (2,102) $ 16 $ (2,718) Six Months Ended June 30, 2024 Balance at December 31, 2023 $ (440) $ (2,026) $ 47 $ (2,419) Other comprehensive income (loss) before reclassifications, net (189) (10) (61) $ (260) Amounts reclassified, pre-tax — (87) 9 $ (78) Tax benefit (expense) (3) 21 21 39 Balance at June 30, 2024 $ (632) $ (2,102) $ 16 $ (2,718) (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss Quarter Ended June 30, 2023 Balance at March 31, 2023 $ (882) $ (890) $ (217) $ (1,989) Other comprehensive income (loss) before reclassifications, net 404 (40) 260 624 Amounts reclassified, pre-tax — (143) 25 (118) Tax benefit (expense) 2 38 (59) (19) Balance at June 30, 2023 $ (476) $ (1,035) $ 9 $ (1,502) Six Months Ended June 30, 2023 Balance at December 31, 2022 $ (1,005) $ (782) $ (231) $ (2,018) Other comprehensive income (loss) before reclassifications, net 526 (44) 233 715 Amounts reclassified, pre-tax — (285) 64 (221) Tax benefit (expense) 3 76 (57) 22 Balance at June 30, 2023 $ (476) $ (1,035) $ 9 $ (1,502) |
Segment Financial Data
Segment Financial Data | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Note 18: Segment Financial Data Our operations, for the periods presented herein, are classified into three principal segments: Collins, Pratt & Whitney, and Raytheon. Our segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. We present a FAS/CAS operating adjustment outside of segment results, which represents the difference between the service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. Generally Accepted Accounting Principles (GAAP) and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment. While the ultimate liability for pension and PRB costs under FAS and CAS is similar, the pattern of cost recognition is different. Over time, we generally expect to recover the related Raytheon pension and PRB liabilities through the pricing of our products and services to the U.S. government. Collins and Pratt & Whitney generally record pension and PRB expense on a FAS basis . Acquisition accounting adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant, and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable. These adjustments are not considered part of management’s evaluation of segment results . Total sales and operating profit by segment include inter-segment sales which are generally recorded at cost-plus a specified fee or at a negotiated fixed price. These pricing arrangements may result in margins different than what the purchasing segment realizes on the ultimate third-party sale. Results for the quarters ended June 30, 2024 and 2023 are as follows: Net Sales Operating Profit Operating Profit Margins (dollars in millions) 2024 2023 2024 2023 2024 2023 Collins Aerospace $ 6,999 $ 6,384 $ 1,118 $ 899 16.0 % 14.1 % Pratt & Whitney 6,802 5,701 542 230 8.0 % 4.0 % Raytheon (2) 6,511 6,700 127 644 2.0 % 9.6 % Total segment 20,312 18,785 1,787 1,773 8.8 % 9.4 % Eliminations and other (1) (591) (470) (36) (16) Corporate expenses and other unallocated items (3) — — (930) (59) FAS/CAS operating adjustment — — 212 284 Acquisition accounting adjustments — — (504) (489) Consolidated $ 19,721 $ 18,315 $ 529 $ 1,493 2.7 % 8.2 % (1) Includes the operating results of certain smaller operations. (2) Operating Profit and Margins include a $0.6 billion charge in the second quarter of 2024 related to the anticipated Raytheon Contract Termination. See “Note 5: Changes in Contract Estimates at Completion” for additional information. (3) Includes a $0.9 billion charge in the second quarter of 2024 related to the Expected Resolution of Certain Legal Matters. See “Note 1: Basis of Presentation” for additional information. Results for the six months ended June 30, 2024 and 2023 are as follows: Net Sales Operating Profit Operating Profit Margins (dollars in millions) 2024 2023 2024 2023 2024 2023 Collins Aerospace $ 13,672 $ 12,504 $ 1,967 $ 1,796 14.4 % 14.4 % Pratt & Whitney 13,258 10,931 954 645 7.2 % 5.9 % Raytheon (2) 13,170 12,992 1,123 1,215 8.5 % 9.4 % Total segment 40,100 36,427 4,044 3,656 10.1 % 10.0 % Eliminations and other (1) (1,074) (898) (41) 35 Corporate expenses and other unallocated items (3) — — (1,026) (102) FAS/CAS operating adjustment — — 426 573 Acquisition accounting adjustments — — (1,004) (982) Consolidated $ 39,026 $ 35,529 $ 2,399 $ 3,180 6.1 % 9.0 % (1) Includes the operating results of certain smaller operations. (2) Operating Profit and Margins include a $0.6 billion charge in the second quarter of 2024 related to the anticipated Raytheon Contract Termination and a $0.4 billion gain, net of transaction and other related costs, in the first quarter of 2024 related to the sale of our CIS business. See “Note 5: Changes in Contract Estimates at Completion” and “Note 2: Acquisitions and Dispositions,” respectively, for additional information. (3) Includes a $0.9 billion charge in the second quarter of 2024 related to the Expected Resolution of Certain Legal Matters. See “Note 1: Basis of Presentation” for additional information. We disaggregate our contracts from customers by geographic region based on customer location, by type of customer, and by sales type. Our geographic region based on customer location uses end user customer location where known or practical to determine, or in instances where the end user customer is not known or not practical to determine, uses “ship to” location as the customer location. In addition, for our Raytheon segment, we disaggregate our contracts from customers by contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Segment sales disaggregated by geographic region based on customer location for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 3,406 $ 3,273 $ 4,914 $ 32 $ 11,625 $ 3,237 $ 2,847 $ 5,101 $ 42 $ 11,227 Europe 1,645 1,407 536 1 3,589 1,521 1,345 419 1 3,286 Asia Pacific 780 1,334 547 — 2,661 599 972 538 — 2,109 Middle East and North Africa 195 172 424 — 791 181 104 566 — 851 Other regions 390 615 50 — 1,055 366 433 43 — 842 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 Segment sales disaggregated by geographic region for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 6,727 $ 6,283 $ 9,896 $ 80 $ 22,986 $ 6,334 $ 5,478 $ 9,877 $ 86 $ 21,775 Europe 3,260 3,077 1,083 2 7,422 3,000 2,465 809 2 6,276 Asia Pacific 1,471 2,528 1,088 1 5,088 1,190 1,877 1,092 — 4,159 Middle East and North Africa 376 310 954 — 1,640 344 214 1,056 — 1,614 Other regions 751 1,059 80 — 1,890 715 896 94 — 1,705 Consolidated net sales 12,585 13,257 13,101 83 39,026 11,583 10,930 12,928 88 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 Segment sales disaggregated by type of customer for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Sales to the U.S. government (1) $ 1,630 $ 1,511 $ 4,880 $ 31 $ 8,052 $ 1,574 $ 1,313 $ 5,030 $ 41 $ 7,958 Foreign military sales through the U.S. government 82 386 801 — 1,269 67 352 822 — 1,241 Foreign government direct commercial sales 317 160 694 — 1,171 276 102 709 2 1,089 Commercial aerospace and other commercial sales 4,387 4,744 96 2 9,229 3,987 3,934 106 — 8,027 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 (1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by customer for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Sales to the U.S. government (1) $ 3,194 $ 3,069 $ 9,837 $ 79 $ 16,179 $ 3,168 $ 2,535 $ 9,728 $ 84 $ 15,515 Foreign military sales through the U.S. government 163 696 1,659 — 2,518 150 684 1,669 — 2,503 Foreign government direct commercial sales 626 318 1,434 1 2,379 536 220 1,334 3 2,093 Commercial aerospace and other commercial 8,602 9,174 171 3 17,950 7,729 7,491 197 1 15,418 Consolidated net sales 12,585 13,257 13,101 83 39,026 11,583 10,930 12,928 88 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 (1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by sales type for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Products $ 5,027 $ 3,849 $ 5,657 $ 29 $ 14,562 $ 4,603 $ 3,199 $ 5,568 $ 41 $ 13,411 Services 1,389 2,952 814 4 5,159 1,301 2,502 1,099 2 4,904 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 Segment sales disaggregated by sales type for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Products $ 9,860 $ 7,806 $ 11,124 $ 75 $ 28,865 $ 9,053 $ 6,251 $ 10,810 $ 84 $ 26,198 Services 2,725 5,451 1,977 8 10,161 2,530 4,679 2,118 4 9,331 Consolidated net sales $ 12,585 $ 13,257 $ 13,101 $ 83 $ 39,026 $ 11,583 $ 10,930 $ 12,928 $ 88 $ 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 Raytheon segment sales disaggregated by contract type for the quarters ended June 30, 2024 and 2023 are as follows: (dollars in millions) 2024 2023 Fixed-price $ 3,318 $ 3,405 Cost-type 3,153 3,262 Consolidated net sales 6,471 6,667 Inter-segment sales 40 33 Business segment sales $ 6,511 $ 6,700 Raytheon segment sales disaggregated by contract type for the six months ended June 30, 2024 and 2023 are as follows: (dollars in millions) 2024 2023 Fixed-price $ 6,611 $ 6,642 Cost-type 6,490 6,286 Consolidated net sales 13,101 12,928 Inter-segments sales 69 64 Business segment sales $ 13,170 $ 12,992 |
Remaining Performance Obligatio
Remaining Performance Obligations (RPO) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligation | Note 19: Remaining Performance Obligations (RPO) |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | Note 20: Accounting Pronouncements In March 2024, the SEC issued the final rule under SEC Release Nos. 33-11275 and 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors, requiring public companies to provide certain climate-related information in their registration statements and annual reports. The final rules will require information about a company’s climate-related risks that have materially impacted or are reasonably likely to have a material impact on its business strategy, results of operations, or financial condition, and the actual and potential material impacts of any identified climate-related risks on the company’s strategy, business model and outlook, as well as relating to assessment, management, oversight and mitigation of such material risks, material climate-related targets and goals, and material greenhouse gas emissions. Additionally, certain disclosures related to severe weather events and other natural conditions will be required in the audited financial statements. The first phase of the final rule is effective for fiscal years beginning in 2025. Disclosure for prior periods is only required if it was previously disclosed in an SEC filing. On April 4, 2024, the SEC voluntarily stayed implementation of the final rule to facilitate the orderly judicial resolution of pending legal challenges to the rule. We are currently evaluating the impact on our disclosures of adopting this new pronouncement. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance income tax reporting disclosures and require disclosure of specific categories in the tabular rate reconciliation. The new standard is effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We are currently evaluating the impact on our disclosures of adopting this new pronouncement. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the segment reporting disclosures and requires disclosure of segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, amounts and description of its composition for other segment items, and interim disclosure of a reportable segment’s profit or loss and assets. Additionally, the amendments require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing performance and deciding how to allocate resources. The new standard is effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact on our disclosures of adopting this new pronouncement. Other new pronouncements issued but not effective until after June 30, 2024 are not expected to have a material impact on our results of operations, financial condition, or liquidity. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income attributable to common shareholders | $ 111 | $ 1,327 | $ 1,820 | $ 2,753 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill [Line Items] | |
Schedule of Goodwill | Changes in our goodwill balances for the six months ended June 30, 2024 were as follows: (dollars in millions) Balance as of December 31, 2023 Acquisitions and Divestitures Foreign Currency Translation and Other Balance as of June 30, 2024 Collins Aerospace (1) $ 33,135 $ (263) $ (91) $ 32,781 Pratt & Whitney 1,563 — — 1,563 Raytheon 18,984 — 2 18,986 Total Segments 53,682 (263) (89) 53,330 Eliminations and other 17 — — 17 Total $ 53,699 $ (263) $ (89) $ 53,347 (1) The reduction in Acquisitions and Divestitures includes the reclassification of goodwill to held for sale assets. |
Schedule of Intangible Assets and Indefinite-Lived Intangible Assets | Identifiable intangible assets are comprised of the following: June 30, 2024 December 31, 2023 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Collaboration assets $ 5,947 $ (1,816) $ 5,810 $ (1,688) Exclusivity assets 3,581 (365) 3,460 (352) Developed technology and other 1,203 (670) 1,219 (635) Customer relationships 29,516 (11,547) 29,605 (10,683) 40,247 (14,398) 40,094 (13,358) Indefinite-lived: Trademarks and other 8,654 — 8,663 — Total $ 48,901 $ (14,398) $ 48,757 $ (13,358) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following is the expected amortization of intangible assets for the remainder of 2024 through 2029: (dollars in millions) Remaining 2024 2025 2026 2027 2028 2029 Amortization expense $ 1,157 $ 2,074 $ 1,993 $ 1,878 $ 1,795 $ 1,616 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Quarter Ended June 30, Six Months Ended June 30, (dollars and shares in millions, except per share amounts) 2024 2023 2024 2023 Net income attributable to common shareowners $ 111 $ 1,327 $ 1,820 $ 2,753 Basic weighted average number of shares outstanding 1,331.8 1,457.5 1,330.5 1,459.9 Stock awards and equity units (share equivalent) 10.3 11.2 9.2 11.6 Diluted weighted average number of shares outstanding 1,342.1 1,468.7 1,339.7 1,471.5 Earnings Per Share attributable to common shareowners: Basic $ 0.08 $ 0.91 $ 1.37 $ 1.89 Diluted 0.08 0.90 1.36 1.87 |
Changes in Contract Estimates_2
Changes in Contract Estimates at Completion (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Change in Accounting Estimate | Net EAC adjustments had the following impact on our operating results: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts) 2024 2023 2024 2023 Total net sales $ 3 $ (29) $ (15) $ (69) Operating profit (62) (30) (224) (154) Income attributable to common shareowners (1) (49) (24) (177) (122) Diluted earnings per share attributable to common shareowners (1) $ (0.04) $ (0.02) $ (0.13) $ (0.08) (1) Amounts reflect a U.S. statutory tax rate of 21%, which approximates our tax rate on our EAC adjustments. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Receivables, Net | Accounts receivable, net consisted of the following: (dollars in millions) June 30, 2024 December 31, 2023 Accounts receivable $ 10,561 $ 11,154 Allowance for expected credit losses (309) (316) Total accounts receivable, net $ 10,252 $ 10,838 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Total contract assets and contract liabilities were as follows: (dollars in millions) June 30, 2024 December 31, 2023 Contract assets $ 13,581 $ 12,139 Contract liabilities (17,665) (17,183) Net contract liabilities $ (4,084) $ (5,044) |
Inventory, Net (Tables)
Inventory, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventory, net consisted of the following: (dollars in millions) June 30, 2024 December 31, 2023 Raw materials $ 4,250 $ 3,911 Work-in-process 4,686 4,162 Finished goods 4,111 3,704 Total inventory, net $ 13,047 $ 11,777 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt Issuances | We had the following issuances of long-term debt during the six months ended June 30, 2023: Date Description of Notes Aggregate Principal Balance (in millions) February 27, 2023 5.000% notes due 2026 $ 500 5.150% notes due 2033 1,250 5.375% notes due 2053 1,250 |
Schedule of Repayments of Long-Term Debt | We made the following repayments of long-term debt during the six months ended June 30, 2024: Date Description of Notes Aggregate Principal Balance (in millions) May 7, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 $ 250 April 17, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 250 April 4, 2024 3 Month SOFR plus 1.225% Term Loan due 2025 250 March 15, 2024 3.200% notes due 2024 950 |
Schedule of Long-term Debt | (dollars in millions) June 30, 2024 December 31, 2023 3.200% notes due 2024 (1) $ — $ 950 3.150% notes due 2024 (1) 300 300 3 Month SOFR plus 1.225% term loan due 2025 1,250 2,000 3.950% notes due 2025 (1) 1,500 1,500 5.000% notes due 2026 (1) 500 500 2.650% notes due 2026 (1) 719 719 3 Month SOFR plus 1.225% term loan due 2026 2,000 2,000 5.750% notes due 2026 (1) 1,250 1,250 3.125% notes due 2027 (1) 1,100 1,100 3.500% notes due 2027 (1) 1,300 1,300 7.200% notes due 2027 (1) 382 382 7.100% notes due 2027 135 135 6.700% notes due 2028 285 285 7.000% notes due 2028 (1) 185 185 4.125% notes due 2028 (1) 3,000 3,000 5.750% notes due 2029 (1) 500 500 7.500% notes due 2029 (1) 414 414 2.150% notes due 2030 (€500 million principal value) (1) 535 548 2.250% notes due 2030 (1) 1,000 1,000 6.000% notes due 2031 (1) 1,000 1,000 1.900% notes due 2031 (1) 1,000 1,000 2.375% notes due 2032 (1) 1,000 1,000 5.150% notes due 2033 (1) 1,250 1,250 6.100% notes due 2034 (1) 1,500 1,500 5.400% notes due 2035 (1) 446 446 6.050% notes due 2036 (1) 410 410 6.800% notes due 2036 (1) 117 117 7.000% notes due 2038 148 148 6.125% notes due 2038 (1) 575 575 4.450% notes due 2038 (1) 750 750 5.700% notes due 2040 (1) 553 553 4.875% notes due 2040 (1) 600 600 4.700% notes due 2041 (1) 425 425 4.500% notes due 2042 (1) 3,500 3,500 4.800% notes due 2043 (1) 400 400 4.200% notes due 2044 (1) 300 300 4.150% notes due 2045 (1) 850 850 3.750% notes due 2046 (1) 1,100 1,100 4.050% notes due 2047 (1) 600 600 4.350% notes due 2047 (1) 1,000 1,000 4.625% notes due 2048 (1) 1,750 1,750 3.125% notes due 2050 (1) 1,000 1,000 2.820% notes due 2051 (1) 1,000 1,000 3.030% notes due 2052 (1) 1,100 1,100 5.375% notes due 2053 (1) 1,250 1,250 6.400% notes due 2054 (1) 1,750 1,750 Other (including finance leases) 254 255 Total principal long-term debt 41,983 43,697 Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs) (63) (59) Total long-term debt 41,920 43,638 Less: current portion 1,617 1,283 Long-term debt, net of current portion $ 40,303 $ 42,355 (1) We may redeem these notes, in whole or in part, at our option pursuant to their terms prior to the applicable maturity date. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of contributions to plans | Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2024 2023 2024 2023 U.S. qualified defined benefit plans $ — $ — $ — $ — International defined benefit plans 10 20 12 28 PRB plans 4 8 13 12 Defined contribution plans 339 317 734 689 |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Condensed Consolidated Balance Sheet consist of: (dollars in millions) June 30, 2024 December 31, 2023 Noncurrent pension assets (included in Other assets) $ 1,906 $ 1,296 Current pension and PRB liabilities (included in Accrued employee compensation) 270 270 Future pension and postretirement benefit obligations 2,264 2,385 The amounts recognized in Future pension and postretirement benefit obligations consist of: (dollars in millions) June 30, 2024 December 31, 2023 Noncurrent pension liabilities $ 1,634 $ 1,737 Noncurrent PRB liabilities 568 582 Other pension and PRB related items 62 66 Future pension and postretirement benefit obligations $ 2,264 $ 2,385 |
Schedule of Net Benefit Costs | The components of net periodic (income) expense for our defined pension and PRB plans were as follows: Pension Benefits Quarter Ended June 30, PRB Quarter Ended June 30, (dollars in millions) 2024 2023 2024 2023 Operating expense Service cost $ 47 $ 56 $ 1 $ 1 Non-operating expense Interest cost 596 627 11 12 Expected return on plan assets (936) (938) (5) (5) Amortization of prior service credit (42) (40) — — Recognized actuarial net (gain) loss 5 (95) (6) (8) Net settlement, curtailment, and special termination benefit (gain) loss 3 — — — Non-service pension income (374) (446) — (1) Total net periodic (income) expense $ (327) $ (390) $ 1 $ — Pension Benefits Six Months Ended June 30, PRB Six Months Ended June 30, (dollars in millions) 2024 2023 2024 2023 Operating expense Service cost $ 94 $ 111 $ 2 $ 2 Non-operating expense Interest cost 1,192 1,253 22 24 Expected return on plan assets (1,873) (1,875) (10) (10) Amortization of prior service credit (85) (79) — — Recognized actuarial net (gain) loss 10 (190) (12) (16) Net settlement, curtailment and special termination benefit (gain) loss (4) 2 — — Non-service pension income (760) (889) — (2) Total net periodic (income) expense $ (666) $ (778) $ 2 $ — |
Marketable Securities | The fair value of marketable securities held in trusts was as follows: (dollars in millions) June 30, 2024 December 31, 2023 Marketable securities held in trusts $ 714 $ 745 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments: (dollars in millions) Balance Sheet Location June 30, 2024 December 31, 2023 Derivatives designated as hedging instruments: Foreign exchange contracts Other assets, current $ 161 $ 225 Other accrued liabilities 128 143 Derivatives not designated as hedging instruments: Foreign exchange contracts Other assets, current $ 43 $ 83 Other accrued liabilities 64 37 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring basis in our Condensed Consolidated Balance Sheet: June 30, 2024 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 714 $ 650 $ 64 $ — Derivative assets 204 — 204 — Derivative liabilities 192 — 192 — December 31, 2023 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Marketable securities held in trusts $ 745 $ 682 $ 63 $ — Derivative assets 308 — 308 — Derivative liabilities 180 — 180 — |
Fair Value, by Balance Sheet Grouping | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet: June 30, 2024 December 31, 2023 (dollars in millions) Carrying Fair Carrying Fair Customer financing notes receivable $ 66 $ 57 $ 74 $ 63 Long-term debt (excluding finance leases) 41,828 38,542 43,546 41,598 The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet: June 30, 2024 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable $ 57 $ — $ 57 $ — Long-term debt (excluding finance leases) 38,542 — 35,250 3,292 December 31, 2023 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable $ 63 $ — $ 63 $ — Long-term debt (excluding finance leases) 41,598 — 37,559 4,039 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Schedule of Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows: (dollars in millions) June 30, 2024 December 31, 2023 Current assets $ 9,869 $ 9,309 Noncurrent assets 1,005 860 Total assets $ 10,874 $ 10,169 Current liabilities $ 12,792 $ 13,020 Noncurrent liabilities 111 31 Total liabilities $ 12,903 $ 13,051 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees [Abstract] | |
Schedule of Guarantees | As of June 30, 2024 and December 31, 2023, the following financial guarantees were outstanding: June 30, 2024 December 31, 2023 (dollars in millions) Maximum Potential Payment Carrying Amount of Liability Maximum Potential Payment Carrying Amount of Liability Commercial aerospace financing arrangements $ 286 $ — $ 288 $ — Third party guarantees 271 1 386 1 |
Product Warranty Disclosure | The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2024 and 2023 were as follows: (dollars in millions) 2024 2023 Balance as of January 1 $ 1,091 $ 1,109 Warranties and performance guarantees issued 134 124 Settlements (152) (160) Other (5) 6 Balance as of June 30 $ 1,068 $ 1,079 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2024 and 2023 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss Quarter Ended June 30, 2024 Balance at March 31, 2024 $ (562) $ (2,065) $ (8) $ (2,635) Other comprehensive income (loss) before reclassifications, net (68) (3) 20 (51) Amounts reclassified, pre-tax — (43) 1 (42) Tax benefit (expense) (2) 9 3 10 Balance at June 30, 2024 $ (632) $ (2,102) $ 16 $ (2,718) Six Months Ended June 30, 2024 Balance at December 31, 2023 $ (440) $ (2,026) $ 47 $ (2,419) Other comprehensive income (loss) before reclassifications, net (189) (10) (61) $ (260) Amounts reclassified, pre-tax — (87) 9 $ (78) Tax benefit (expense) (3) 21 21 39 Balance at June 30, 2024 $ (632) $ (2,102) $ 16 $ (2,718) (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Loss Quarter Ended June 30, 2023 Balance at March 31, 2023 $ (882) $ (890) $ (217) $ (1,989) Other comprehensive income (loss) before reclassifications, net 404 (40) 260 624 Amounts reclassified, pre-tax — (143) 25 (118) Tax benefit (expense) 2 38 (59) (19) Balance at June 30, 2023 $ (476) $ (1,035) $ 9 $ (1,502) Six Months Ended June 30, 2023 Balance at December 31, 2022 $ (1,005) $ (782) $ (231) $ (2,018) Other comprehensive income (loss) before reclassifications, net 526 (44) 233 715 Amounts reclassified, pre-tax — (285) 64 (221) Tax benefit (expense) 3 76 (57) 22 Balance at June 30, 2023 $ (476) $ (1,035) $ 9 $ (1,502) |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Results for the quarters ended June 30, 2024 and 2023 are as follows: Net Sales Operating Profit Operating Profit Margins (dollars in millions) 2024 2023 2024 2023 2024 2023 Collins Aerospace $ 6,999 $ 6,384 $ 1,118 $ 899 16.0 % 14.1 % Pratt & Whitney 6,802 5,701 542 230 8.0 % 4.0 % Raytheon (2) 6,511 6,700 127 644 2.0 % 9.6 % Total segment 20,312 18,785 1,787 1,773 8.8 % 9.4 % Eliminations and other (1) (591) (470) (36) (16) Corporate expenses and other unallocated items (3) — — (930) (59) FAS/CAS operating adjustment — — 212 284 Acquisition accounting adjustments — — (504) (489) Consolidated $ 19,721 $ 18,315 $ 529 $ 1,493 2.7 % 8.2 % (1) Includes the operating results of certain smaller operations. (2) Operating Profit and Margins include a $0.6 billion charge in the second quarter of 2024 related to the anticipated Raytheon Contract Termination. See “Note 5: Changes in Contract Estimates at Completion” for additional information. (3) Includes a $0.9 billion charge in the second quarter of 2024 related to the Expected Resolution of Certain Legal Matters. See “Note 1: Basis of Presentation” for additional information. Results for the six months ended June 30, 2024 and 2023 are as follows: Net Sales Operating Profit Operating Profit Margins (dollars in millions) 2024 2023 2024 2023 2024 2023 Collins Aerospace $ 13,672 $ 12,504 $ 1,967 $ 1,796 14.4 % 14.4 % Pratt & Whitney 13,258 10,931 954 645 7.2 % 5.9 % Raytheon (2) 13,170 12,992 1,123 1,215 8.5 % 9.4 % Total segment 40,100 36,427 4,044 3,656 10.1 % 10.0 % Eliminations and other (1) (1,074) (898) (41) 35 Corporate expenses and other unallocated items (3) — — (1,026) (102) FAS/CAS operating adjustment — — 426 573 Acquisition accounting adjustments — — (1,004) (982) Consolidated $ 39,026 $ 35,529 $ 2,399 $ 3,180 6.1 % 9.0 % (1) Includes the operating results of certain smaller operations. (2) Operating Profit and Margins include a $0.6 billion charge in the second quarter of 2024 related to the anticipated Raytheon Contract Termination and a $0.4 billion gain, net of transaction and other related costs, in the first quarter of 2024 related to the sale of our CIS business. See “Note 5: Changes in Contract Estimates at Completion” and “Note 2: Acquisitions and Dispositions,” respectively, for additional information. (3) Includes a $0.9 billion charge in the second quarter of 2024 related to the Expected Resolution of Certain Legal Matters. See “Note 1: Basis of Presentation” for additional information. |
Disaggregation of Revenue | Segment sales disaggregated by geographic region based on customer location for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 3,406 $ 3,273 $ 4,914 $ 32 $ 11,625 $ 3,237 $ 2,847 $ 5,101 $ 42 $ 11,227 Europe 1,645 1,407 536 1 3,589 1,521 1,345 419 1 3,286 Asia Pacific 780 1,334 547 — 2,661 599 972 538 — 2,109 Middle East and North Africa 195 172 424 — 791 181 104 566 — 851 Other regions 390 615 50 — 1,055 366 433 43 — 842 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 Segment sales disaggregated by geographic region for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total United States $ 6,727 $ 6,283 $ 9,896 $ 80 $ 22,986 $ 6,334 $ 5,478 $ 9,877 $ 86 $ 21,775 Europe 3,260 3,077 1,083 2 7,422 3,000 2,465 809 2 6,276 Asia Pacific 1,471 2,528 1,088 1 5,088 1,190 1,877 1,092 — 4,159 Middle East and North Africa 376 310 954 — 1,640 344 214 1,056 — 1,614 Other regions 751 1,059 80 — 1,890 715 896 94 — 1,705 Consolidated net sales 12,585 13,257 13,101 83 39,026 11,583 10,930 12,928 88 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 Segment sales disaggregated by type of customer for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Sales to the U.S. government (1) $ 1,630 $ 1,511 $ 4,880 $ 31 $ 8,052 $ 1,574 $ 1,313 $ 5,030 $ 41 $ 7,958 Foreign military sales through the U.S. government 82 386 801 — 1,269 67 352 822 — 1,241 Foreign government direct commercial sales 317 160 694 — 1,171 276 102 709 2 1,089 Commercial aerospace and other commercial sales 4,387 4,744 96 2 9,229 3,987 3,934 106 — 8,027 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 (1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by customer for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Sales to the U.S. government (1) $ 3,194 $ 3,069 $ 9,837 $ 79 $ 16,179 $ 3,168 $ 2,535 $ 9,728 $ 84 $ 15,515 Foreign military sales through the U.S. government 163 696 1,659 — 2,518 150 684 1,669 — 2,503 Foreign government direct commercial sales 626 318 1,434 1 2,379 536 220 1,334 3 2,093 Commercial aerospace and other commercial 8,602 9,174 171 3 17,950 7,729 7,491 197 1 15,418 Consolidated net sales 12,585 13,257 13,101 83 39,026 11,583 10,930 12,928 88 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 (1) Excludes foreign military sales through the U.S. government. Segment sales disaggregated by sales type for the quarters ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Products $ 5,027 $ 3,849 $ 5,657 $ 29 $ 14,562 $ 4,603 $ 3,199 $ 5,568 $ 41 $ 13,411 Services 1,389 2,952 814 4 5,159 1,301 2,502 1,099 2 4,904 Consolidated net sales 6,416 6,801 6,471 33 19,721 5,904 5,701 6,667 43 18,315 Inter-segment sales 583 1 40 (624) — 480 — 33 (513) — Business segment sales $ 6,999 $ 6,802 $ 6,511 $ (591) $ 19,721 $ 6,384 $ 5,701 $ 6,700 $ (470) $ 18,315 Segment sales disaggregated by sales type for the six months ended June 30, 2024 and 2023 are as follows: 2024 2023 (dollars in millions) Collins Aerospace Pratt & Whitney Raytheon Other Total Collins Aerospace Pratt & Whitney Raytheon Other Total Products $ 9,860 $ 7,806 $ 11,124 $ 75 $ 28,865 $ 9,053 $ 6,251 $ 10,810 $ 84 $ 26,198 Services 2,725 5,451 1,977 8 10,161 2,530 4,679 2,118 4 9,331 Consolidated net sales $ 12,585 $ 13,257 $ 13,101 $ 83 $ 39,026 $ 11,583 $ 10,930 $ 12,928 $ 88 $ 35,529 Inter-segment sales 1,087 1 69 (1,157) — 921 1 64 (986) — Business segment sales $ 13,672 $ 13,258 $ 13,170 $ (1,074) $ 39,026 $ 12,504 $ 10,931 $ 12,992 $ (898) $ 35,529 Raytheon segment sales disaggregated by contract type for the quarters ended June 30, 2024 and 2023 are as follows: (dollars in millions) 2024 2023 Fixed-price $ 3,318 $ 3,405 Cost-type 3,153 3,262 Consolidated net sales 6,471 6,667 Inter-segment sales 40 33 Business segment sales $ 6,511 $ 6,700 Raytheon segment sales disaggregated by contract type for the six months ended June 30, 2024 and 2023 are as follows: (dollars in millions) 2024 2023 Fixed-price $ 6,611 $ 6,642 Cost-type 6,490 6,286 Consolidated net sales 13,101 12,928 Inter-segments sales 69 64 Business segment sales $ 13,170 $ 12,992 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | |
Basis of Presentation [Line Items] | |||
Loss Contingency Accrual, Provision | $ 918 | $ 900 | |
Charges associated with alternative titanium sources at Collins | $ 175 | ||
DOJ Investigation and Contract Pricing Disputes | |||
Basis of Presentation [Line Items] | |||
Loss Contingency Accrual, Provision | 269 | ||
Thales-Raytheon Systems and Related Matters | |||
Basis of Presentation [Line Items] | |||
Loss Contingency Accrual, Provision | 364 | ||
Trade Compliance Matters | |||
Basis of Presentation [Line Items] | |||
Loss Contingency Accrual, Provision | $ 285 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Jul. 01, 2024 | Jul. 20, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisitions and Dispositions [Line Items] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 415 | $ 0 | |||
Raytheon's Cybersecurity, Intelligence and Services Business | |||||
Business Acquisitions and Dispositions [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ 1,300 | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 400 | ||||
Disposal Group, Not Discontinued Operation, Gain(Loss) on Disposal, After Tax | $ 200 | ||||
Collins Actuation and Flight Control Business | |||||
Business Acquisitions and Dispositions [Line Items] | |||||
Expected Proceeds from Divestiture of Business | $ 1,800 | ||||
Collins Goodrich Hoist & Winch Business | Forecast [Member] | |||||
Business Acquisitions and Dispositions [Line Items] | |||||
Expected Proceeds from Divestiture of Business | $ 500 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | $ 53,699 |
Goodwill - Acquisitions and Divestitures | (263) |
Goodwill, Foreign Currency Translation and Other | (89) |
Goodwill - Ending Balance | 53,347 |
Collins Aerospace [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 33,135 |
Goodwill - Acquisitions and Divestitures | (263) |
Goodwill, Foreign Currency Translation and Other | (91) |
Goodwill - Ending Balance | 32,781 |
Pratt & Whitney [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 1,563 |
Goodwill - Acquisitions and Divestitures | 0 |
Goodwill, Foreign Currency Translation and Other | 0 |
Goodwill - Ending Balance | 1,563 |
Raytheon | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 18,984 |
Goodwill - Acquisitions and Divestitures | 0 |
Goodwill, Foreign Currency Translation and Other | 2 |
Goodwill - Ending Balance | 18,986 |
Total Segments [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 53,682 |
Goodwill - Acquisitions and Divestitures | (263) |
Goodwill, Foreign Currency Translation and Other | (89) |
Goodwill - Ending Balance | 53,330 |
Eliminations and other [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 17 |
Goodwill - Acquisitions and Divestitures | 0 |
Goodwill, Foreign Currency Translation and Other | 0 |
Goodwill - Ending Balance | $ 17 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 40,247 | $ 40,094 |
Accumulated Amortization | (14,398) | (13,358) |
Indefinite-Lived: Trademarks and Other | 8,654 | 8,663 |
Total Intangible Assets Gross Excluding Goodwill | 48,901 | 48,757 |
Collaboration assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 5,947 | 5,810 |
Accumulated Amortization | (1,816) | (1,688) |
Exclusivity assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,581 | 3,460 |
Accumulated Amortization | (365) | (352) |
Developed technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,203 | 1,219 |
Accumulated Amortization | (670) | (635) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 29,516 | 29,605 |
Accumulated Amortization | $ (11,547) | $ (10,683) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 534 | $ 510 | $ 1,060 | $ 1,019 |
Amortization Expense, Remaining 2024 | 1,157 | 1,157 | ||
Amortization Expense, 2025 | 2,074 | 2,074 | ||
Amortization Expense, 2026 | 1,993 | 1,993 | ||
Amortization Expense, 2027 | 1,878 | 1,878 | ||
Amortization Expense, 2028 | 1,795 | 1,795 | ||
Amortization Expense, 2029 | $ 1,616 | $ 1,616 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareowners | $ 111 | $ 1,327 | $ 1,820 | $ 2,753 |
Basic weighted average number of shares outstanding | 1,331.8 | 1,457.5 | 1,330.5 | 1,459.9 |
Stock awards and equity units (share equivalent) | 10.3 | 11.2 | 9.2 | 11.6 |
Diluted weighted average number of shares outstanding | 1,342.1 | 1,468.7 | 1,339.7 | 1,471.5 |
Earnings Per Share attributable to common shareowners: | ||||
Earnings Per Share, Basic | $ 0.08 | $ 0.91 | $ 1.37 | $ 1.89 |
Earnings Per Share, Diluted | $ 0.08 | $ 0.90 | $ 1.36 | $ 1.87 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.9 | 4 | 9.6 | 4 |
Changes in Contract Estimates_3
Changes in Contract Estimates at Completion (Schedule of Change in Accounting Estimate) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Change in Accounting Estimate [Line Items] | ||||
Total net sales | $ 3 | $ (29) | $ (15) | $ (69) |
Operating profit | 529 | 1,493 | 2,399 | 3,180 |
Loss on Contract Termination | 575 | |||
Contracts Accounted for under Percentage of Completion [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating profit | (62) | (30) | (224) | (154) |
Income attributable to common shareowners (1) | $ (49) | $ (24) | $ (177) | $ (122) |
Diluted earnings per share attributable to common shareowners (1) | $ (0.04) | $ (0.02) | $ (0.13) | $ (0.08) |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule of Receivables, Net) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Accounts receivable | $ 10,561 | $ 11,154 |
Allowance for expected credit losses | (309) | (316) |
Total accounts receivable, net | $ 10,252 | $ 10,838 |
Contract Asset and Liability (D
Contract Asset and Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue from contract with customer [Line Items] | |||||
Contract assets | $ 13,581 | $ 13,581 | $ 12,139 | ||
Contract liabilities | (17,665) | (17,665) | (17,183) | ||
Net contract liabilities | (4,084) | (4,084) | (5,044) | ||
Contract with Customer, Asset, Change | 1,400 | ||||
Contract with Customer, Liability, Change | 500 | ||||
Contract with Customer, Liability, Revenue Recognized | 1,800 | $ 1,500 | 4,400 | $ 3,400 | |
Advances received to date on contracts related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval | 405 | 405 | |||
Contract with Customer, Asset, Allowance for Credit Loss | $ 203 | $ 203 | $ 197 |
Inventory, Net (Details)
Inventory, Net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,250 | $ 3,911 |
Work-in-process | 4,686 | 4,162 |
Finished goods | 4,111 | 3,704 |
Inventory, net | $ 13,047 | $ 11,777 |
Borrowing and Lines of Credit (
Borrowing and Lines of Credit (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Commercial paper | $ 0 | $ 0 | |
Proceeds from Issuance of Commercial Paper, Original Maturities Greater than 90 days | 0 | $ 0 | |
Repayments of Commercial Paper, Original Maturities Greater than 90 days | $ 0 | $ 200 | |
Average Years of Maturity of Long Term Debt | 13 years | ||
Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||
Borrowings outstanding | 0 | ||
Commercial Paper | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Repayments of Long-Term Debt) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
3 Month SOFR plus 1.225% due 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.225% |
Debt Instrument, Maturity Date, Description | 2025 |
Notes 3.200% Due 2024 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% |
Debt Instrument, Maturity Date, Description | 2024 |
Repayments of Debt | $ 950 |
May 7, 2024 | 3 Month SOFR plus 1.225% due 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.225% |
Debt Instrument, Maturity Date, Description | 2025 |
Repayments of Debt | $ 250 |
April 17, 2024 | 3 Month SOFR plus 1.225% due 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.225% |
Debt Instrument, Maturity Date, Description | 2025 |
Repayments of Debt | $ 250 |
April 4, 2024 | 3 Month SOFR plus 1.225% due 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.225% |
Debt Instrument, Maturity Date, Description | 2025 |
Repayments of Debt | $ 250 |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (Long-Term Debt) (Details) € in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Other (including finance leases) | $ 254 | $ 255 | ||
Long-term Debt, Gross | 41,983 | 43,697 | ||
Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs) | (63) | (59) | ||
Total long-term debt | 41,920 | 43,638 | ||
Less: current portion | 1,617 | 1,283 | ||
Long-term debt, net of current portion | $ 40,303 | 42,355 | ||
Notes 3.200% Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | ||
Debt Instrument, Maturity Date, Description | 2024 | |||
Long-term Debt, Gross | $ 0 | 950 | ||
Notes 3.150% Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% | ||
Debt Instrument, Maturity Date, Description | 2024 | |||
Long-term Debt, Gross | $ 300 | 300 | ||
3 Month SOFR plus 1.225% due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.225% | 1.225% | ||
Debt Instrument, Maturity Date, Description | 2025 | |||
Long-term Debt, Gross | $ 1,250 | 2,000 | ||
Notes 3.950% Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||
Debt Instrument, Maturity Date, Description | 2025 | |||
Long-term Debt, Gross | $ 1,500 | 1,500 | ||
Notes 5.000% Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | 5% | |
Debt Instrument, Maturity Date, Description | 2026 | 2026 | ||
Long-term Debt, Gross | $ 500 | 500 | ||
Notes 2.650% Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% | ||
Debt Instrument, Maturity Date, Description | 2026 | |||
Long-term Debt, Gross | $ 719 | 719 | ||
3 Month SOFR plus 1.225% Term Loan due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.225% | 1.225% | ||
Debt Instrument, Maturity Date, Description | 2026 | |||
Long-term Debt, Gross | $ 2,000 | 2,000 | ||
Notes 5.750% due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||
Debt Instrument, Maturity Date, Description | 2026 | |||
Long-term Debt, Gross | $ 1,250 | 1,250 | ||
Notes 3.125% Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Long-term Debt, Gross | $ 1,100 | 1,100 | ||
Notes 3.500% Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Long-term Debt, Gross | $ 1,300 | 1,300 | ||
Notes 7.200% Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | 7.20% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Long-term Debt, Gross | $ 382 | 382 | ||
Notes 7.100% Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | 7.10% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Long-term Debt, Gross | $ 135 | 135 | ||
Notes 6.700% Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | 6.70% | ||
Debt Instrument, Maturity Date, Description | 2028 | |||
Long-term Debt, Gross | $ 285 | 285 | ||
Notes 7.000% Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7% | 7% | ||
Debt Instrument, Maturity Date, Description | 2028 | |||
Long-term Debt, Gross | $ 185 | 185 | ||
Notes 4.125% Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||
Debt Instrument, Maturity Date, Description | 2028 | |||
Long-term Debt, Gross | $ 3,000 | 3,000 | ||
Notes 5.750% due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||
Debt Instrument, Maturity Date, Description | 2029 | |||
Long-term Debt, Gross | $ 500 | 500 | ||
Notes 7.500% Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||
Debt Instrument, Maturity Date, Description | 2029 | |||
Long-term Debt, Gross | $ 414 | 414 | ||
Notes 2.150% Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||
Debt Instrument, Maturity Date, Description | 2030 | |||
Debt Instrument, Face Amount | € | € 500 | |||
Long-term Debt, Gross | $ 535 | 548 | ||
Notes 2.250% Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||
Debt Instrument, Maturity Date, Description | 2030 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 6.000% due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | 6% | ||
Debt Instrument, Maturity Date, Description | 2031 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 1.900% due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | 1.90% | ||
Debt Instrument, Maturity Date, Description | 2031 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 2.375% Due 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | 2.375% | ||
Debt Instrument, Maturity Date, Description | 2032 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 5.150% Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | $ 1,250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | 5.15% | 5.15% | |
Debt Instrument, Maturity Date, Description | 2033 | 2033 | ||
Long-term Debt, Gross | $ 1,250 | 1,250 | ||
Notes 6.100% due 2034 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.10% | 6.10% | ||
Debt Instrument, Maturity Date, Description | 2034 | |||
Long-term Debt, Gross | $ 1,500 | 1,500 | ||
Notes 5.400% Due 2035 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||
Debt Instrument, Maturity Date, Description | 2035 | |||
Long-term Debt, Gross | $ 446 | 446 | ||
Notes 6.050% Due 2036 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | ||
Debt Instrument, Maturity Date, Description | 2036 | |||
Long-term Debt, Gross | $ 410 | 410 | ||
Notes 6.800% Due 2036 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | 6.80% | ||
Debt Instrument, Maturity Date, Description | 2036 | |||
Long-term Debt, Gross | $ 117 | 117 | ||
Notes 7.000% Due 2038 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7% | 7% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Long-term Debt, Gross | $ 148 | 148 | ||
Notes 6.125% Due 2038 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Long-term Debt, Gross | $ 575 | 575 | ||
Notes 4.450% Due 2038 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | 4.45% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Long-term Debt, Gross | $ 750 | 750 | ||
Notes 5.700% Due 2040 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | 5.70% | ||
Debt Instrument, Maturity Date, Description | 2040 | |||
Long-term Debt, Gross | $ 553 | 553 | ||
Notes 4.875% Due 2040 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||
Debt Instrument, Maturity Date, Description | 2040 | |||
Long-term Debt, Gross | $ 600 | 600 | ||
Notes 4.700% Due 2041 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 4.70% | ||
Debt Instrument, Maturity Date, Description | 2041 | |||
Long-term Debt, Gross | $ 425 | 425 | ||
Notes 4.500% Due 2042 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Debt Instrument, Maturity Date, Description | 2042 | |||
Long-term Debt, Gross | $ 3,500 | 3,500 | ||
Notes 4.800% Due 2043 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | 4.80% | ||
Debt Instrument, Maturity Date, Description | 2043 | |||
Long-term Debt, Gross | $ 400 | 400 | ||
Notes 4.200% Due 2044 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | 4.20% | ||
Debt Instrument, Maturity Date, Description | 2044 | |||
Long-term Debt, Gross | $ 300 | 300 | ||
Notes 4.150% Due 2045 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | ||
Debt Instrument, Maturity Date, Description | 2045 | |||
Long-term Debt, Gross | $ 850 | 850 | ||
Notes 3.750% Due 2046 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||
Debt Instrument, Maturity Date, Description | 2046 | |||
Long-term Debt, Gross | $ 1,100 | 1,100 | ||
Notes 4.050% Due 2047 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | 4.05% | ||
Debt Instrument, Maturity Date, Description | 2047 | |||
Long-term Debt, Gross | $ 600 | 600 | ||
Notes 4.350% Due 2047 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | ||
Debt Instrument, Maturity Date, Description | 2047 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 4.625% Due 2048 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||
Debt Instrument, Maturity Date, Description | 2048 | |||
Long-term Debt, Gross | $ 1,750 | 1,750 | ||
Notes 3.125% Due 2050 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||
Debt Instrument, Maturity Date, Description | 2050 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 2.820% due 2051 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.82% | 2.82% | ||
Debt Instrument, Maturity Date, Description | 2051 | |||
Long-term Debt, Gross | $ 1,000 | 1,000 | ||
Notes 3.030% Due 2052 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.03% | 3.03% | ||
Debt Instrument, Maturity Date, Description | 2052 | |||
Long-term Debt, Gross | $ 1,100 | 1,100 | ||
Notes 5.375% Due 2053 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | $ 1,250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | |
Debt Instrument, Maturity Date, Description | 2053 | 2053 | ||
Long-term Debt, Gross | $ 1,250 | 1,250 | ||
Notes 6.400% due 2054 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | 6.40% | ||
Debt Instrument, Maturity Date, Description | 2054 | |||
Long-term Debt, Gross | $ 1,750 | $ 1,750 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
PRB plans | $ 4 | $ 8 | $ 13 | $ 12 | |
Defined contribution plans | 339 | 317 | 734 | 689 | |
Liability, Defined Benefit Plan, Current | 270 | 270 | $ 270 | ||
Liability, Defined Benefit Pension Plan, Noncurrent | 2,264 | 2,264 | 2,385 | ||
Non-service pension income | (374) | (447) | (760) | (891) | |
Marketable securities held in trusts | 714 | 714 | 745 | ||
UNITED STATES | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined benefit plans | 0 | 0 | 0 | 0 | |
Foreign Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined benefit plans | 10 | 20 | 12 | 28 | |
Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Assets for Plan Benefits, Defined Benefit Plan | 1,906 | 1,906 | 1,296 | ||
Liability, Defined Benefit Pension Plan, Noncurrent | 1,634 | 1,634 | 1,737 | ||
Service cost | 47 | 56 | 94 | 111 | |
Interest cost | 596 | 627 | 1,192 | 1,253 | |
Expected return on plan assets | (936) | (938) | (1,873) | (1,875) | |
Amortization of prior service credit | (42) | (40) | (85) | (79) | |
Recognized actuarial net (gain) loss | 5 | (95) | 10 | (190) | |
Net settlement, curtailment, and special termination benefit (gain) loss | 3 | 0 | (4) | 2 | |
Non-service pension income | (374) | (446) | (760) | (889) | |
Total net periodic (income) expense | (327) | (390) | (666) | (778) | |
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Liability, Defined Benefit Pension Plan, Noncurrent | 568 | 568 | 582 | ||
Service cost | 1 | 1 | 2 | 2 | |
Interest cost | 11 | 12 | 22 | 24 | |
Expected return on plan assets | (5) | (5) | (10) | (10) | |
Amortization of prior service credit | 0 | 0 | 0 | 0 | |
Recognized actuarial net (gain) loss | (6) | (8) | (12) | (16) | |
Net settlement, curtailment, and special termination benefit (gain) loss | 0 | 0 | 0 | 0 | |
Non-service pension income | 0 | (1) | 0 | (2) | |
Total net periodic (income) expense | 1 | $ 0 | 2 | $ 0 | |
Other pension and PRB related items | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Liability, Defined Benefit Pension Plan, Noncurrent | $ 62 | $ 62 | $ 66 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation and Change In Unrecognized Tax Benefits [Line Items] | ||||
Effective Tax Rate | 59.10% | 15.40% | 15.80% | 17% |
Effective Income Tax Rate Reconciliation, Expected Resolution of Certain Legal Matters, Expense | $ 918 | |||
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | $ 275 | |||
Effective Income Tax Rate Reconciliation, Disposition of Business, Expense (Benefit), Amount | 143 | |||
Minimum [Member] | ||||
Effective Income Tax Rate Reconciliation and Change In Unrecognized Tax Benefits [Line Items] | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change | 50 | 50 | ||
Maximum [Member] | ||||
Effective Income Tax Rate Reconciliation and Change In Unrecognized Tax Benefits [Line Items] | ||||
Increase in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change | $ 75 | $ 75 |
Financial Instruments (Details)
Financial Instruments (Details) € in Millions, $ in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) |
Derivatives, Fair Value [Line Items] | |||
Derivative, Present Value of Aggregated Notional Amount | $ 15,700 | $ 15,800 | |
Notes 2.150% Due 2030 | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt, euro-denominated | € | € 500 | ||
Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments, Asset Derivatives | 161 | 225 | |
Derivatives not designated as hedging instruments, Asset Derivatives | 43 | 83 | |
Other Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments, Liability Derivatives | 128 | 143 | |
Derivatives not designated as hedging instruments, Liability Derivatives | $ 64 | $ 37 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy Classification) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Portion at Other than Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer financing notes receivable | $ 66 | $ 74 |
Long-term debt (excluding finance leases) | 41,828 | 43,546 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in trusts | 714 | 745 |
Derivative assets | 204 | 308 |
Derivative liabilities | 192 | 180 |
Customer financing notes receivable | 57 | 63 |
Long-term debt (excluding finance leases) | 38,542 | 41,598 |
Marketable securities held in trusts | 714 | 745 |
Fair Value Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in trusts | 650 | 682 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Customer financing notes receivable | 0 | 0 |
Long-term debt (excluding finance leases) | 0 | 0 |
Fair Value Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in trusts | 64 | 63 |
Derivative assets | 204 | 308 |
Derivative liabilities | 192 | 180 |
Customer financing notes receivable | 57 | 63 |
Long-term debt (excluding finance leases) | 35,250 | 37,559 |
Fair Value Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in trusts | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Customer financing notes receivable | 0 | 0 |
Long-term debt (excluding finance leases) | $ 3,292 | $ 4,039 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Assets, Current | $ 49,225 | $ 48,417 |
Total assets | 161,169 | 161,869 |
Liabilities, Current | 49,565 | 46,761 |
Total liabilities | 100,488 | 100,424 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets, Current | 9,869 | 9,309 |
Assets, Noncurrent | 1,005 | 860 |
Total assets | 10,874 | 10,169 |
Liabilities, Current | 12,792 | 13,020 |
Liabilities, Noncurrent | 111 | 31 |
Total liabilities | $ 12,903 | $ 13,051 |
International Aero Engines AG [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative of Quantitative Information, Net Percentage | 61% | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.50% | |
Variable Interest Entity, Qualitative of Quantitative Information, Net Percentage Post | 57% | |
International Aero Engines LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative of Quantitative Information, Net Percentage | 59% | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 59% | |
Variable Interest Entity, Qualitative of Quantitative Information, Net Percentage Post | 51% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commercial Aerospace Financing Arrangements | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $ 286 | $ 288 |
Carrying Amount of Liability | 0 | 0 |
Third Party Guarantees | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 271 | 386 |
Carrying Amount of Liability | 1 | 1 |
Commercial Aerospace [Member] | ||
Guarantor Obligations [Line Items] | ||
Partner Share of Guarantor Obligations, Maximum Exposure, Undiscounted | 134 | 135 |
Guarantee Type, Other | ||
Guarantor Obligations [Line Items] | ||
Carrying Amount of Liability | $ 98 | $ 97 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Product Warranty Liabilities [Line Items] | ||
Balance as of January 1 | $ 1,091 | $ 1,109 |
Warranties and performance guarantees issued | 134 | 124 |
Settlements | (152) | (160) |
Other | (5) | 6 |
Balance as of June 30 | $ 1,068 | $ 1,079 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 769 | $ 760 | |
Other Commitment | 12,600 | ||
Charges as a result of Pratt & Whitney's accelerated inspection of PW1100G-JM GTF engines due to rare condition in powder metal. | $ 2,900 | ||
Pratt & Whitney's net program share of PW1100 GTF program | 51% | ||
Increase in other accrued liabilities of Pratt & Whitney's program share of PW1100 GTF program | $ 2,800 | ||
Other accrued liabilities of Pratt & Whitney's program share of PW1100 GTF program | 2,600 | 2,800 | |
2019 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 1,700 | ||
Loss Contingency, Interest | 1,100 | ||
2013 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 177 | ||
Loss Contingency, Interest | 169 | ||
2018 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 269 | ||
Loss Contingency, Interest | 139 | ||
U. S. Defense Contract Management Agency Claim Against Pratt Whitney Third Claim | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | 277 | ||
Loss Contingency, Interest | 66 | ||
Thales-Raytheon Systems and Related Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | 384 | ||
DOJ Investigation and Contract Pricing Disputes | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | 575 | ||
Trade Compliance Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | 285 | ||
Other Financing Arrangements [Member] | |||
Loss Contingencies [Line Items] | |||
Other Commitment | 3,100 | ||
Commercial Aerospace [Member] | |||
Loss Contingencies [Line Items] | |||
Financing and other contractual commitments | $ 14,400 | $ 14,600 |
Equity (Accelerated Share Repur
Equity (Accelerated Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Oct. 26, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Oct. 24, 2023 | |
Accelerated Share Repurchases [Line Items] | ||||||
ASR Aggregate Purchase Price | $ 10,000 | |||||
Repurchase of common stock | $ 100 | $ 1,158 | ||||
Treasury Stock, Common | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Common stock repurchased | $ 51 | $ 601 | $ 103 | $ 1,183 | ||
October 26, 2023 [Member] | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Repurchase of common stock | $ 10,000 | |||||
Treasury Stock, Shares, Acquired | 108.4 | |||||
Accelerated Share Repurchases, Initial Price Paid Per Share | $ 78.38 | |||||
October 26, 2023 [Member] | Treasury Stock, Common | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Common stock repurchased | $ 8,500 | |||||
October 26, 2023 [Member] | Common Stock [Member] | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Common stock repurchased | $ 1,500 |
Equity (Summary of Changes in A
Equity (Summary of Changes in AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,718) | $ (1,502) | $ (2,718) | $ (1,502) | $ (2,635) | $ (2,419) | $ (1,989) | $ (2,018) |
Other comprehensive income (loss) before reclassifications, net - Foreign Currency Translation | (68) | 404 | (189) | 526 | ||||
Other Comprehensive Income (Loss), Defined Benefit Pension and Postretirement Plans | (3) | (40) | (10) | (44) | ||||
Other comprehensive income (loss) before reclassifications, net - Unrealized Hedging Gains (Losses) | 20 | 260 | (61) | 233 | ||||
Other comprehensive income (loss) before reclassifications, net | (51) | 624 | (260) | 715 | ||||
Amounts reclassified, pretax - Foreign Currency Translation | 0 | 0 | 0 | 0 | ||||
Amounts reclassified, pretax - Defined Benefit Plan | (43) | (143) | (87) | (285) | ||||
Amounts reclassified, pretax - Unrealized Hedging Gains (Losses) | 1 | 25 | 9 | 64 | ||||
Amounts reclassified, pre-tax | (42) | (118) | (78) | (221) | ||||
Tax benefit (expense) - Foreign Currency Translation | (2) | 2 | (3) | 3 | ||||
Tax benefit (expense) - Defined Benefit Plan, after Reclassification Adjustment, Tax | 9 | 38 | 21 | 76 | ||||
Tax benefit (expense) - Unrealized Hedging Gains (Losses) | 3 | (59) | 21 | (57) | ||||
Tax benefit (expense) | 10 | (19) | 39 | 22 | ||||
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (632) | (476) | (632) | (476) | (562) | (440) | (882) | (1,005) |
Defined Benefit Pension and Post-retirement Plans | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,102) | (1,035) | (2,102) | (1,035) | (2,065) | (2,026) | (890) | (782) |
Unrealized hedging (losses) gains | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 16 | $ 9 | $ 16 | $ 9 | $ (8) | $ 47 | $ (217) | $ (231) |
Segment Financial Data (Segment
Segment Financial Data (Segment Operating Performance) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 | |
Operating profit | $ 529 | $ 1,493 | $ 2,399 | $ 3,180 | |
Operating Profit Margin | 2.70% | 8.20% | 6.10% | 9% | |
Loss on Contract Termination | $ 575 | ||||
Gain on sale of Cybersecurity, Intelligence and Services business, net of transaction costs | $ 400 | ||||
Loss Contingency Accrual, Provision | 918 | $ 900 | |||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 20,312 | $ 18,785 | 40,100 | $ 36,427 | |
Operating profit | $ 1,787 | $ 1,773 | $ 4,044 | $ 3,656 | |
Operating Profit Margin | 8.80% | 9.40% | 10.10% | 10% | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ (591) | $ (470) | $ (1,074) | $ (898) | |
Operating profit | (36) | (16) | (41) | 35 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating profit | (930) | (59) | (1,026) | (102) | |
Collins Aerospace [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,999 | 6,384 | 13,672 | 12,504 | |
Operating profit | $ 1,118 | $ 899 | $ 1,967 | $ 1,796 | |
Operating Profit Margin | 16% | 14.10% | 14.40% | 14.40% | |
Pratt & Whitney [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 6,802 | $ 5,701 | $ 13,258 | $ 10,931 | |
Operating profit | $ 542 | $ 230 | $ 954 | $ 645 | |
Operating Profit Margin | 8% | 4% | 7.20% | 5.90% | |
Raytheon | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 6,511 | $ 6,700 | $ 13,170 | $ 12,992 | |
Operating profit | $ 127 | $ 644 | $ 1,123 | $ 1,215 | |
Operating Profit Margin | 2% | 9.60% | 8.50% | 9.40% | |
FAS/CAS Operating Adjustment | Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | |
Operating profit | 212 | 284 | 426 | 573 | |
Acquisition accounting adjustment member | Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating profit | $ (504) | $ (489) | $ (1,004) | $ (982) |
Segment Financial Data (Disaggr
Segment Financial Data (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 19,721 | $ 18,315 | $ 39,026 | $ 35,529 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 14,562 | 13,411 | 28,865 | 26,198 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,159 | 4,904 | 10,161 | 9,331 |
U.S. Government Sales Excluding Foreign Military Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,052 | 7,958 | 16,179 | 15,515 |
Foreign Military Sales Through the U.S. Government Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,269 | 1,241 | 2,518 | 2,503 |
Foreign Government Direct Commercial Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,171 | 1,089 | 2,379 | 2,093 |
Commercial Aerospace and Other Commercial Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,229 | 8,027 | 17,950 | 15,418 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,625 | 11,227 | 22,986 | 21,775 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,589 | 3,286 | 7,422 | 6,276 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,661 | 2,109 | 5,088 | 4,159 |
Middle East and North Africa Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 791 | 851 | 1,640 | 1,614 |
Other regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,055 | 842 | 1,890 | 1,705 |
Collins Aerospace [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,416 | 5,904 | 12,585 | 11,583 |
Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,801 | 5,701 | 13,257 | 10,930 |
Raytheon | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,471 | 6,667 | 13,101 | 12,928 |
Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 33 | 43 | 83 | 88 |
Operating Segments | Collins Aerospace [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,999 | 6,384 | 13,672 | 12,504 |
Operating Segments | Collins Aerospace [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,027 | 4,603 | 9,860 | 9,053 |
Operating Segments | Collins Aerospace [Member] | Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,389 | 1,301 | 2,725 | 2,530 |
Operating Segments | Collins Aerospace [Member] | U.S. Government Sales Excluding Foreign Military Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,630 | 1,574 | 3,194 | 3,168 |
Operating Segments | Collins Aerospace [Member] | Foreign Military Sales Through the U.S. Government Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 82 | 67 | 163 | 150 |
Operating Segments | Collins Aerospace [Member] | Foreign Government Direct Commercial Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 317 | 276 | 626 | 536 |
Operating Segments | Collins Aerospace [Member] | Commercial Aerospace and Other Commercial Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,387 | 3,987 | 8,602 | 7,729 |
Operating Segments | Collins Aerospace [Member] | UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,406 | 3,237 | 6,727 | 6,334 |
Operating Segments | Collins Aerospace [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,645 | 1,521 | 3,260 | 3,000 |
Operating Segments | Collins Aerospace [Member] | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 780 | 599 | 1,471 | 1,190 |
Operating Segments | Collins Aerospace [Member] | Middle East and North Africa Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 195 | 181 | 376 | 344 |
Operating Segments | Collins Aerospace [Member] | Other regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 390 | 366 | 751 | 715 |
Operating Segments | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,802 | 5,701 | 13,258 | 10,931 |
Operating Segments | Pratt & Whitney [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,849 | 3,199 | 7,806 | 6,251 |
Operating Segments | Pratt & Whitney [Member] | Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,952 | 2,502 | 5,451 | 4,679 |
Operating Segments | Pratt & Whitney [Member] | U.S. Government Sales Excluding Foreign Military Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,511 | 1,313 | 3,069 | 2,535 |
Operating Segments | Pratt & Whitney [Member] | Foreign Military Sales Through the U.S. Government Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 386 | 352 | 696 | 684 |
Operating Segments | Pratt & Whitney [Member] | Foreign Government Direct Commercial Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 160 | 102 | 318 | 220 |
Operating Segments | Pratt & Whitney [Member] | Commercial Aerospace and Other Commercial Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,744 | 3,934 | 9,174 | 7,491 |
Operating Segments | Pratt & Whitney [Member] | UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,273 | 2,847 | 6,283 | 5,478 |
Operating Segments | Pratt & Whitney [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,407 | 1,345 | 3,077 | 2,465 |
Operating Segments | Pratt & Whitney [Member] | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,334 | 972 | 2,528 | 1,877 |
Operating Segments | Pratt & Whitney [Member] | Middle East and North Africa Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 172 | 104 | 310 | 214 |
Operating Segments | Pratt & Whitney [Member] | Other regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 615 | 433 | 1,059 | 896 |
Operating Segments | Raytheon | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,511 | 6,700 | 13,170 | 12,992 |
Operating Segments | Raytheon | Fixed-price Contract | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,318 | 3,405 | 6,611 | 6,642 |
Operating Segments | Raytheon | Cost-type Contract | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,153 | 3,262 | 6,490 | 6,286 |
Operating Segments | Raytheon | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,657 | 5,568 | 11,124 | 10,810 |
Operating Segments | Raytheon | Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 814 | 1,099 | 1,977 | 2,118 |
Operating Segments | Raytheon | U.S. Government Sales Excluding Foreign Military Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,880 | 5,030 | 9,837 | 9,728 |
Operating Segments | Raytheon | Foreign Military Sales Through the U.S. Government Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 801 | 822 | 1,659 | 1,669 |
Operating Segments | Raytheon | Foreign Government Direct Commercial Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 694 | 709 | 1,434 | 1,334 |
Operating Segments | Raytheon | Commercial Aerospace and Other Commercial Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 96 | 106 | 171 | 197 |
Operating Segments | Raytheon | UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,914 | 5,101 | 9,896 | 9,877 |
Operating Segments | Raytheon | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 536 | 419 | 1,083 | 809 |
Operating Segments | Raytheon | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 547 | 538 | 1,088 | 1,092 |
Operating Segments | Raytheon | Middle East and North Africa Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 424 | 566 | 954 | 1,056 |
Operating Segments | Raytheon | Other regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 50 | 43 | 80 | 94 |
Operating Segments | Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Other Segments | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 29 | 41 | 75 | 84 |
Operating Segments | Other Segments | Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4 | 2 | 8 | 4 |
Operating Segments | Other Segments | U.S. Government Sales Excluding Foreign Military Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31 | 41 | 79 | 84 |
Operating Segments | Other Segments | Foreign Military Sales Through the U.S. Government Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Other Segments | Foreign Government Direct Commercial Sales Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 2 | 1 | 3 |
Operating Segments | Other Segments | Commercial Aerospace and Other Commercial Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2 | 0 | 3 | 1 |
Operating Segments | Other Segments | UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 32 | 42 | 80 | 86 |
Operating Segments | Other Segments | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 1 | 2 | 2 |
Operating Segments | Other Segments | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 1 | 0 |
Operating Segments | Other Segments | Middle East and North Africa Member | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Other Segments | Other regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (591) | (470) | (1,074) | (898) |
Intersegment Eliminations | Collins Aerospace [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 583 | 480 | 1,087 | 921 |
Intersegment Eliminations | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 0 | 1 | 1 |
Intersegment Eliminations | Raytheon | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 40 | 33 | 69 | 64 |
Intersegment Eliminations | Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (624) | $ (513) | $ (1,157) | $ (986) |
Remaining Performance Obligat_2
Remaining Performance Obligations (RPO) (Details) $ in Billions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Remaining Performance Obligation [Line Items] | |
RPO | $ 206 |
RPO to be recognized within 12 months | 25% |
Revenue, Remaining Performance Obligations, RPO related to long-term commercial aerospace maintenance contracts at Pratt & Whitney | 45% |
Revenue, Remaining Performance Obligation, general span of Pratt & Whitney long-term commercial aerospace maintenance contracts, in years | 20 years |