Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 09, 2015 | Jun. 27, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | RAYTHEON CO/ | ||
Entity Central Index Key | 1047122 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Trading Symbol | RTN | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 307,323,000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Aggregate market value of the voting stock held by non-affiliates | $29.20 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $3,222 | $3,296 |
Short-term investments | 1,497 | 1,001 |
Contracts in process, net | 4,985 | 4,870 |
Inventories | 414 | 363 |
Prepaid expenses and other current assets | 174 | 286 |
Total current assets | 10,292 | 9,816 |
Property, plant and equipment, net | 1,935 | 1,937 |
Goodwill | 13,061 | 12,764 |
Other assets, net | 2,612 | 1,450 |
Total assets | 27,900 | 25,967 |
Current liabilities | ||
Advance payments and billings in excess of costs incurred | 2,284 | 2,350 |
Accounts payable | 1,250 | 1,178 |
Accrued employee compensation | 1,059 | 1,068 |
Other accrued expenses | 1,337 | 1,214 |
Total current liabilities | 5,930 | 5,810 |
Accrued retiree benefits and other long-term liabilities | 6,919 | 4,226 |
Long-term debt | 5,330 | 4,734 |
Commitments and contingencies (Note 10) | ||
Raytheon Company stockholders’ equity | ||
Common stock, par value, $0.01 per share, 1,450 shares authorized, 307 and 315 shares outstanding at December 31, 2014 and 2013, respectively. | 3 | 3 |
Additional paid-in capital | 1,309 | 1,972 |
Accumulated other comprehensive loss | -7,458 | -5,113 |
Retained earnings | 15,671 | 14,173 |
Total Raytheon Company stockholders’ equity | 9,525 | 11,035 |
Noncontrolling interests in subsidiaries | 196 | 162 |
Total equity | 9,721 | 11,197 |
Total liabilities and equity | $27,900 | $25,967 |
CONSOLIDATED_BALANCE_SHEETS_Co
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 1,450 | 1,450 |
Common Stock, Shares, Outstanding | 307.3 | 314.5 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | |||
Products | $19,126 | $19,855 | $20,380 |
Services | 3,700 | 3,851 | 4,034 |
Total net sales | 22,826 | 23,706 | 24,414 |
Operating expenses | |||
Cost of sales—products | 14,260 | 15,292 | 15,712 |
Cost of sales—services | 3,035 | 3,240 | 3,380 |
General and administrative expenses | 2,352 | 2,236 | 2,333 |
Total operating expenses | 19,647 | 20,768 | 21,425 |
Operating income | 3,179 | 2,938 | 2,989 |
Interest expense | 213 | 210 | 201 |
Interest income | -10 | -12 | -9 |
Other (income) expense, net | -7 | -17 | 18 |
Total non-operating (income) expense, net | 196 | 181 | 210 |
Income from continuing operations before taxes | 2,983 | 2,757 | 2,779 |
Federal and foreign income taxes | 790 | 808 | 878 |
Income from continuing operations | 2,193 | 1,949 | 1,901 |
Income (loss) from discontinued operations, net of tax | 65 | 64 | -1 |
Net income | 2,258 | 2,013 | 1,900 |
Less: Net income attributable to noncontrolling interests in subsidiaries | 14 | 17 | 12 |
Net income attributable to Raytheon Company | 2,244 | 1,996 | 1,888 |
Basic earnings per share attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | $6.98 | $5.97 | $5.67 |
Income (loss) from discontinued operations, net of tax | $0.21 | $0.20 | $0 |
Net income | $7.19 | $6.17 | $5.67 |
Diluted earnings per share attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | $6.97 | $5.96 | $5.65 |
Income (loss) from discontinued operations, net of tax | $0.21 | $0.20 | $0 |
Net income | $7.18 | $6.16 | $5.65 |
Amounts attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | 2,179 | 1,932 | 1,889 |
Income (loss) from discontinued operations, net of tax | 65 | 64 | -1 |
Net income | $2,244 | $1,996 | $1,888 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $2,258 | $2,013 | $1,900 |
Other comprehensive income (loss), before tax: | |||
Foreign exchange translation | -50 | -13 | 35 |
Cash flow hedges and interest rate locks | -10 | -4 | 13 |
Unrealized gains (losses) on investments and other, net | 1 | 1 | -6 |
Pension and other employee benefit plans, net: Net change in initial net obligation | 0 | 0 | 1 |
Pension and other employee benefit plans, net: Prior service (cost) credit arising during period | -11 | 0 | -2 |
Pension and other employee benefit plans, net: Net gain (loss) arising during period | -4,410 | 2,965 | -2,217 |
Pension and other employee benefit plans, net: Amortization of prior service cost (credit) included in net periodic cost | 6 | 7 | 7 |
Pension and other employee benefit plans, net: Amortization of net actuarial loss included in net income | 892 | 1,154 | 942 |
Pension and other employee benefit plans, net: Effect of exchange rates | 9 | 2 | -6 |
Pension and other employee benefit plans, net | -3,514 | 4,128 | -1,275 |
Other comprehensive income (loss), before tax | -3,573 | 4,112 | -1,233 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 1,228 | -1,437 | 446 |
Other comprehensive income (loss), net of tax | -2,345 | 2,675 | -787 |
Total comprehensive income (loss) | -87 | 4,688 | 1,113 |
Less: Comprehensive income (loss) attributable to noncontrolling interests in subsidiaries | 14 | 17 | 12 |
Comprehensive income (loss) attributable to Raytheon Company | ($101) | $4,671 | $1,101 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common stock [Member] | Additional paid-In capital [Member] | Accumulated other comprehensive (loss) [Member] | Retained Earnings [Member] | Total Raytheon Company stockholders' equity [Member] | Noncontrolling interest in subsidiaries [Member] |
In Millions, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $8,340 | $3 | $3,523 | ($7,001) | $11,656 | $8,181 | $159 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,888 | 1,888 | 1,888 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 12 | 12 | |||||
Net income | 1,900 | ||||||
Other comprehensive income (loss), net of tax | -787 | -787 | -787 | ||||
Dividends declared | -661 | -661 | -661 | ||||
Distributions and other activity related to noncontrolling interests | -7 | 0 | -7 | ||||
Common stock plans activity | 267 | 267 | 267 | ||||
Share repurchases | -862 | -862 | -862 | ||||
Balance at Dec. 31, 2012 | 8,190 | 3 | 2,928 | -7,788 | 12,883 | 8,026 | 164 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,996 | 1,996 | 1,996 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 17 | 17 | |||||
Net income | 2,013 | ||||||
Other comprehensive income (loss), net of tax | 2,675 | 2,675 | 2,675 | ||||
Dividends declared | -706 | -706 | -706 | ||||
Distributions and other activity related to noncontrolling interests | -19 | 0 | -19 | ||||
Common stock plans activity | 167 | 167 | 167 | ||||
Share repurchases | -1,123 | -1,123 | -1,123 | ||||
Balance at Dec. 31, 2013 | 11,197 | 3 | 1,972 | -5,113 | 14,173 | 11,035 | 162 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,244 | 2,244 | 2,244 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 14 | 14 | |||||
Net income | 2,258 | ||||||
Other comprehensive income (loss), net of tax | -2,345 | -2,345 | -2,345 | ||||
Dividends declared | -746 | -746 | -746 | ||||
Distributions and other activity related to noncontrolling interests | -2 | -22 | -22 | 20 | |||
Common stock plans activity | 199 | 199 | 199 | ||||
Share repurchases | -840 | -840 | -840 | ||||
Balance at Dec. 31, 2014 | $9,721 | $3 | $1,309 | ($7,458) | $15,671 | $9,525 | $196 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $2,258 | $2,013 | $1,900 |
(Income) loss from discontinued operations, net of tax | -65 | -64 | 1 |
Income from continuing operations | 2,193 | 1,949 | 1,901 |
Adjustments to reconcile to net cash provided by (used in) operating activities from continuing operations, net of the effect of acquisitions and divestitures | |||
Depreciation and amortization | 439 | 445 | 455 |
Stock-based compensation | 148 | 129 | 122 |
Deferred income taxes | -60 | 68 | 94 |
Tax benefit from stock-based awards | -47 | -16 | -13 |
Changes in assets and liabilities, net of effects of acquisitions | |||
Contracts in process, net and advance payments and billings in excess of costs incurred | -162 | -391 | -145 |
Inventories | -50 | 18 | -37 |
Prepaid expenses and other current assets | 50 | -27 | 44 |
Accounts payable | 54 | -171 | -159 |
Income taxes receivable/payable | -33 | 197 | -219 |
Accrued employee compensation | -20 | 53 | 75 |
Other accrued expenses | -33 | 48 | 3 |
Other long-term liabilities | -17 | -30 | -74 |
Pension and other postretirement benefit plans | -367 | 150 | -131 |
Other, net | -31 | -40 | 35 |
Net cash provided by (used in) operating activities from continuing operations | 2,064 | 2,382 | 1,951 |
Net cash provided by (used in) operating activities from discontinued operations | 120 | -4 | 6 |
Net cash provided by (used in) operating activities | 2,184 | 2,378 | 1,957 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | -326 | -280 | -339 |
Proceeds from sales of property, plant and equipment | 9 | 2 | 46 |
Additions to capitalized internal use software | -54 | -49 | -76 |
Purchases of short-term investments | -2,914 | -1,241 | -1,505 |
Sales of short-term investments | 882 | 325 | 150 |
Maturities of short-term investments | 1,523 | 779 | 505 |
Payments for purchases of acquired companies, net of cash received | -427 | -9 | -301 |
Other | -15 | 0 | -3 |
Net cash provided by (used in) investing activities | -1,322 | -473 | -1,523 |
Cash flows from financing activities | |||
Dividends paid | -735 | -694 | -643 |
Issuance of long-term debt, net of offering costs | 592 | 0 | 1,092 |
Repayments of long-term debt | 0 | 0 | -970 |
Proceeds from Stock Options Exercised | 2 | 24 | 131 |
Tax benefit from stock-based awards | 47 | 16 | 13 |
Other | -2 | -20 | -7 |
Net cash provided by (used in) financing activities | -936 | -1,797 | -1,246 |
Net increase (decrease) in cash and cash equivalents | -74 | 108 | -812 |
Cash and cash equivalents at beginning of year | 3,296 | 3,188 | 4,000 |
Cash and cash equivalents at end of year | 3,222 | 3,296 | 3,188 |
Satisfy tax withholding [Member] | |||
Cash flows from financing activities | |||
Repurchases of common stock under share repurchase programs | -90 | -48 | -37 |
Share Repurchase Program [Member] | |||
Cash flows from financing activities | |||
Repurchases of common stock under share repurchase programs | ($750) | ($1,075) | ($825) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||||||||||
Consolidation and Classification—The consolidated financial statements include the accounts of Raytheon Company, and all wholly-owned, majority-owned and otherwise controlled domestic and foreign subsidiaries. All intercompany transactions have been eliminated. For classification of certain current assets and liabilities, we use the duration of the related contract or program as our operating cycle, which is generally longer than one year. In addition, certain prior year amounts have been reclassified to conform with the current year presentation. As used in these notes, the terms “we”, “us”, “our”, “Raytheon” and the “Company” mean Raytheon Company and its subsidiaries, unless the context indicates another meaning. | ||||||||||||||||||||
Use of Estimates—Our consolidated financial statements are based on the application of U.S. Generally Accepted Accounting Principles (GAAP), which require us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our consolidated financial statements. | ||||||||||||||||||||
Revenue Recognition—We use the percentage-of-completion accounting method to account for our long-term contracts associated with the design, development, manufacture, or modification of complex aerospace or electronic equipment and related services, such as certain cost-plus service contracts. Under this method, revenue is recognized based on the extent of progress towards completion of the long-term contract. Our analysis of these contracts also contemplates whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. We combine closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, we may segment a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. | ||||||||||||||||||||
The selection of the method by which to measure progress towards completion of a contract also requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, materials and subcontractors costs, as well as an allocation of indirect costs. Revenues, including estimated fees or profits, are recorded as costs are incurred. Due to the nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion (the process for which we describe below in more detail) is complex and subject to many variables. Incentive and award fees generally are awarded at the discretion of the customer or upon achievement of certain program milestones or cost targets. Incentive and award fees, as well as penalties related to contract performance, are considered in estimating profit rates. Estimates of award fees are based on actual awards and anticipated performance, which may include the performance of subcontractors or partners depending on the individual contract requirements. Incentive provisions that increase or decrease earnings based solely on a single significant event generally are not recognized until the event occurs. Such incentives and penalties are recorded when there is sufficient information for us to assess anticipated performance. Our claims on contracts are recorded only if it is probable that the claim will result in additional contract revenue and the amounts can be reliably estimated. | ||||||||||||||||||||
We have a Company-wide standard and disciplined quarterly Estimate at Completion (EAC) process in which management reviews the progress and performance of our contracts. 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 include management's judgment about the ability and cost to achieve the schedule (e.g., the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product), and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract (e.g., to estimate increases in wages and prices for materials and related support cost allocations), performance by our subcontractors, the availability and timing of funding from our customer, and overhead cost rates, among other variables. These estimates also include the estimated cost of satisfying our industrial cooperation agreements, sometimes referred to as offset obligations, required under certain contracts. Based on this analysis, any quarterly adjustments to net sales, cost of sales, and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive program performance, and may result in an increase in operating income during the performance of individual contracts, if we determine we will be successful in mitigating risks surrounding the technical, schedule, and cost aspects of those contracts or realizing related opportunities. Likewise, these adjustments may result in a decrease in operating income if we determine we will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net sales, cost of sales, and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract's percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recognized in the period the loss is determined. | ||||||||||||||||||||
Net EAC adjustments had the following impact on our operating results: | ||||||||||||||||||||
(In millions, except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||
Operating income | $ | 513 | $ | 557 | $ | 613 | ||||||||||||||
Income from continuing operations attributable to Raytheon Company | 333 | 362 | 398 | |||||||||||||||||
Diluted EPS from continuing operations attributable to Raytheon Company | $ | 1.07 | $ | 1.12 | $ | 1.19 | ||||||||||||||
To a much lesser extent, we enter into other types of contracts such as service, commercial, or software and licensing arrangements. Revenue under fixed-price service contracts not associated with the design, development, manufacture, or modification of complex aerospace or electronic equipment, and under commercial contracts, generally is recognized upon delivery or as services are rendered once persuasive evidence of an arrangement exists, our price is fixed or determinable, and collectability is reasonably assured. Costs on fixed-price service contracts are expensed as incurred, unless they otherwise qualify for deferral. We recognize revenue on contracts to sell software when evidence of an arrangement exists, the software has been delivered and accepted by the customer, the fee is fixed or determinable, and collection is probable. For software arrangements that include multiple elements, including perpetual software licenses and undelivered items (e.g., maintenance and/or services; subscriptions/term licenses), we allocate and defer revenue for the undelivered items based on vendor specific objective evidence (VSOE) of the fair value of the undelivered elements, and recognize revenue on the perpetual license using the residual method. We base VSOE of each element on the price for which the undelivered element is sold separately. We determine fair value of the undelivered elements based on historical evidence of our stand-alone sales of these elements to third parties or from the stated renewal rate for the undelivered elements. When VSOE does not exist for undelivered items, we recognize the entire arrangement fee ratably over the applicable performance period. Revenue from non-software license fees is recognized over the expected life of the continued involvement with the customer. Additionally, royalty revenue is recognized when earned. | ||||||||||||||||||||
We apply the separation guidance under GAAP for contracts with multiple deliverables. We analyze revenue arrangements with multiple deliverables to determine if the deliverables should be divided into more than one unit of accounting. For contracts with more than one unit of accounting, we allocate the consideration we receive among the separate units of accounting based on their relative selling prices, which we determine based on prices of the deliverables as sold on a stand-alone basis, or if not sold on a stand-alone basis, the prices we would charge if sold on a stand-alone basis. We recognize revenue for each deliverable based on the revenue recognition policies described above. | ||||||||||||||||||||
Research and Development Expenses—Research and development expenses are included in general and administrative expenses in our consolidated statements of operations. Expenditures for Company-sponsored research and development projects are expensed as incurred, and were $500 million, $465 million and $451 million in 2014, 2013 and 2012, respectively. Customer-sponsored research and development projects performed under contracts are accounted for as contract costs as the work is performed and included in contracts in process, net in our consolidated balance sheets. | ||||||||||||||||||||
Federal, Foreign and State Income Taxes—The Company and its domestic subsidiaries provide for federal income taxes on pretax accounting income at rates in effect under existing tax law. Foreign subsidiaries record provisions for income taxes at applicable foreign tax rates in a similar manner. Such provisions differ from the amounts currently payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes. The Company does not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries. Such earnings are indefinitely reinvested in foreign operations or expected to be remitted substantially free of additional tax. Payments made for state income taxes are included in administrative and selling expenses as these costs can generally be recovered through the pricing of products and services to the U.S. Government in the period in which the tax is payable. Accordingly, the state income tax provision (benefit) is allocated to contracts in future periods as described below in Deferred Contract Costs. | ||||||||||||||||||||
Other Expense (Income), Net—Other expense (income), net consists primarily of gains and losses from our investments held in trusts used to fund certain of our non-qualified deferred compensation plans, gains and losses on the early repurchase of long-term debt and certain financing fees. | ||||||||||||||||||||
Cash and Cash Equivalents—Cash and cash equivalents consist of cash and highly liquid investments with original maturities of 90 days or less at the date of purchase. The estimated fair value of cash and cash equivalents approximates the carrying value due to their short maturities. | ||||||||||||||||||||
Short-term Investments—We invest in marketable securities in accordance with our short-term investment policy and cash management strategy. These marketable securities are classified as available-for-sale and are recorded at fair value as short-term investments in our consolidated balance sheets. These investments are deemed Level 2 assets under the fair value hierarchy at December 31, 2014 and December 31, 2013, as their fair value is determined under a market approach using valuation models that utilize observable inputs, including maturity date, issue date, settlements date, and current rates. At December 31, 2014 and December 31, 2013, we had short-term investments of $1,497 million and $1,001 million, respectively, consisting of highly rated bank certificates of deposit with a minimum long-term debt rating of A or A2 and a minimum short-term debt rating of A-1 and P-1. As of December 31, 2014, our short-term investments had an average maturity of approximately five months. The amortized cost of these securities closely approximated their fair value at December 31, 2014 and December 31, 2013. There were no securities deemed to have other than temporary declines in value for 2014. In 2014, we recorded unrealized losses on short-term investments of less than $1 million, net of tax, in AOCL. In 2013, we recorded unrealized gains on short-term investments of less than $1 million, net of tax, in AOCL. In 2014, we recorded sales of short-term investments of $882 million, which resulted in gains of less than $1 million recorded in other (income) expense, net. In 2013, we recorded sales of short-term investments of $325 million, which resulted in gains of approximately $1 million recorded in other (income) expense, net. For purposes of computing realized gains and losses on available-for-sale securities, we determine cost on a specific identification basis. | ||||||||||||||||||||
Contracts in Process, Net—Contracts in process, net are stated at cost plus estimated profit, but not in excess of estimated realizable value. Included in contracts in process are accounts receivable, which include amounts billed and due from customers. We maintain an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. | ||||||||||||||||||||
Deferred Contract Costs—Included in contracts in process, net are certain costs related to the performance of our U.S. Government contracts which are required to be recorded under GAAP but are not currently allocable to contracts. Such costs are deferred and primarily include a portion of our environmental expenses, asset retirement obligations, certain restructuring costs, deferred state income taxes, workers’ compensation and certain other accruals. At December 31, 2014 and December 31, 2013, net deferred contract costs were approximately $223 million and $279 million, respectively. These costs are allocated to contracts when they are paid or otherwise agreed. We regularly assess the probability of recovery of these costs. This assessment requires us to make assumptions about the extent of cost recovery under our contracts and the amount of future contract activity. If the level of backlog in the future does not support the continued deferral of these costs, the profitability of our remaining contracts could be adversely affected. | ||||||||||||||||||||
Pension and other postretirement benefits costs are allocated to our contracts as allowed costs based on the U.S. Government cost accounting standards (CAS). The CAS requirements for pension and other postretirement benefits costs differ from the financial accounting standards (FAS) requirements under GAAP. Given the inability to match with reasonable certainty individual expense and income items between the CAS and FAS requirements to determine specific recoverability, we have not estimated the incremental FAS income or expense to be recoverable under our expected future contract activity, and therefore did not defer any FAS expense for pension and other postretirement benefits plans in 2012–2014. This resulted in $286 million of income, $249 million of expense, and $255 million of expense in 2014, 2013 and 2012, respectively, reflected in our consolidated results of operations for the difference between CAS and FAS requirements for our pension and other postretirement benefits plans in those years. | ||||||||||||||||||||
Inventories—Inventories are stated at cost (first-in, first-out or average cost), but not in excess of net realizable value. An impairment for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, future sales expectations and salvage value. | ||||||||||||||||||||
Inventories consisted of the following at December 31: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Materials and purchased parts | $ | 70 | $ | 73 | ||||||||||||||||
Work in process | 326 | 279 | ||||||||||||||||||
Finished goods | 18 | 11 | ||||||||||||||||||
Total | $ | 414 | $ | 363 | ||||||||||||||||
We capitalize costs incurred in advance of contract award or funding in inventories if we determine that contract award or funding is probable. To the extent these are precontract costs, start-up costs have been excluded. We included capitalized precontract costs and other deferred costs of approximately $126 million and $100 million in inventories as work in process at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Property, Plant and Equipment, Net—Property, plant and equipment, net are stated at cost less accumulated depreciation. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are expensed. We include gains and losses on the sales of plant and equipment that are allocable to our contracts in overhead as we generally can recover these costs through the pricing of products and services to the U.S. Government. For all other sales or asset retirements, the assets and related accumulated depreciation and amortization are eliminated from the accounts, and any resulting gain or loss is reflected in income. | ||||||||||||||||||||
Provisions for depreciation generally are computed using a combination of accelerated and straight-line methods and are based on estimated useful lives as follows: | ||||||||||||||||||||
Years | ||||||||||||||||||||
Machinery and equipment | 3–10 | |||||||||||||||||||
Buildings | 20–45 | |||||||||||||||||||
Leasehold improvements are amortized over the lesser of the remaining life of the lease or the estimated useful life of the improvement. | ||||||||||||||||||||
Impairment of Goodwill and Long-lived Assets—We evaluate our goodwill for impairment annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. We perform our annual impairment test as of the first day of the fourth quarter utilizing a two-step methodology that requires us to first identify potential goodwill impairment and then measure the amount of the related goodwill impairment loss, if any. We have identified our operating segments as reporting units under the impairment test assessment criteria outlined in GAAP. In performing our annual impairment test in the fourth quarters of 2014, 2013 and 2012 we did not identify any goodwill impairment. | ||||||||||||||||||||
We determine whether long-lived assets are to be held for use or disposal. Upon indication of possible impairment of long-lived assets held for use, we evaluate the recoverability of such assets by measuring the carrying amount of the assets against the related estimated undiscounted future cash flows. When an evaluation indicates that the future undiscounted cash flows are not sufficient to recover the carrying value of the asset, the asset is adjusted to its estimated fair value. In order for long-lived assets to be considered held for disposal, we must have committed to a plan to dispose of the assets. Once deemed held for disposal, the assets are stated at the lower of the carrying amount or fair value. | ||||||||||||||||||||
Computer Software, Net—Internal use computer software, net, included in other assets, net, which consists primarily of our enterprise-wide software solutions, is stated at cost less accumulated amortization and is amortized using the straight-line method over its estimated useful life, generally 10 years. | ||||||||||||||||||||
Advance Payments and Billings in Excess of Costs Incurred—We receive advances, performance-based payments and progress payments from customers that may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred as current liabilities. Costs incurred in excess of billings are classified as contracts in process, net. | ||||||||||||||||||||
Other Comprehensive Income (Loss)—Other comprehensive income (loss) includes foreign exchange translation adjustments, gains and losses on derivative instruments qualified as cash flow hedges, unrealized gains (losses) on investments, and gains and losses associated with pension and other postretirement benefits. The computation of other comprehensive income (loss) and its components are presented in the consolidated statements of comprehensive income. | ||||||||||||||||||||
Other comprehensive income (loss) consisted of the following activity during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
Foreign exchange translation | Cash flow hedges and interest rate locks | Unrealized gains (losses) on investments and other, net | Pension and other employee benefit plans, net | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at December 31, 2011 | $ | 25 | $ | (13 | ) | $ | (5 | ) | $ | (7,008 | ) | $ | (7,001 | ) | ||||||
Before tax amount | 35 | 13 | (6 | ) | (1,275 | ) | (1,233 | ) | ||||||||||||
Tax (expense) benefit | — | (5 | ) | 1 | 450 | 446 | ||||||||||||||
Net of tax amount | 35 | 8 | (5 | ) | (825 | ) | (787 | ) | ||||||||||||
Balance at December 31, 2012 | 60 | (5 | ) | (10 | ) | (7,833 | ) | (7,788 | ) | |||||||||||
Before tax amount | (13 | ) | (4 | ) | 1 | 4,128 | 4,112 | |||||||||||||
Tax (expense) benefit | — | 1 | — | (1,438 | ) | (1,437 | ) | |||||||||||||
Net of tax amount | (13 | ) | (3 | ) | 1 | 2,690 | 2,675 | |||||||||||||
Balance at December 31, 2013 | 47 | (8 | ) | (9 | ) | (5,143 | ) | (5,113 | ) | |||||||||||
Before tax amount | (50 | ) | (10 | ) | 1 | (3,514 | ) | (3,573 | ) | |||||||||||
Tax (expense) benefit | — | 4 | (1 | ) | 1,225 | 1,228 | ||||||||||||||
Net of tax amount | (50 | ) | (6 | ) | — | (2,289 | ) | (2,345 | ) | |||||||||||
Balance at December 31, 2014 | $ | (3 | ) | $ | (14 | ) | $ | (9 | ) | $ | (7,432 | ) | $ | (7,458 | ) | |||||
Material amounts reclassified out of AOCL were related to amortization of net actuarial loss associated with our pension and other employee benefit plans and were $892 million, $1,154 million and $942 million before tax in 2014, 2013 and 2012, respectively. This component of AOCL is included in the calculation of net periodic pension expense (income) (see "Note 13: Pension and Other Employee Benefits" for additional details). | ||||||||||||||||||||
The defined benefit pension and other employee benefit plans are shown net of tax benefits of $4,005 million and $2,780 million at December 31, 2014 and December 31, 2013, respectively. The cash flow hedges and interest rate locks are shown net of tax benefits of $8 million and $4 million at December 31, 2014 and December 31, 2013, respectively. The unrealized gains (losses) on investments and other are shown net of tax benefits of $2 million and $4 million at December 31, 2014 and December 31, 2013, respectively. We expect approximately $6 million of after-tax net unrealized losses on our cash flow hedges at December 31, 2014 to be reclassified into earnings at then-current values over the next twelve months as the underlying hedged transactions occur. | ||||||||||||||||||||
Translation of Foreign Currencies—Assets and liabilities of foreign subsidiaries are translated at current exchange rates and the effects of these translation adjustments are reported as a component of AOCL in equity. Deferred taxes are not recognized for translation-related temporary differences of foreign subsidiaries as their undistributed earnings are considered to be indefinitely reinvested. Income and expenses in foreign currencies are translated at the average exchange rate during the period. Foreign exchange transaction gains and losses in 2014, 2013 and 2012 were not material. | ||||||||||||||||||||
Treasury Stock—Repurchased shares are retired immediately upon repurchase. We account for treasury stock under the cost method. Upon retirement the excess over par value is charged against additional paid-in capital. | ||||||||||||||||||||
Pension and Other Postretirement Benefits Costs—We have pension plans covering the majority of our employees, including certain employees in foreign countries. We calculate our pension costs as required under GAAP, and the calculations and assumptions utilized require judgment. GAAP outlines the methodology used to determine pension expense or income for financial reporting purposes. For purposes of determining pension expense under GAAP, a calculated “market-related value” of our plan assets is used to develop the amount of deferred asset gains or losses to be amortized. The market-related value of assets is determined using actual asset gains or losses over a three year period. Under GAAP, a “corridor” approach may be elected and applied in the recognition of asset and liability gains or losses which limits expense recognition to the net outstanding gains and losses in excess of the greater of 10 percent of the projected benefit obligation or the calculated "market-related value" of assets. We do not use a “corridor” approach in the calculation of FAS expense. | ||||||||||||||||||||
We recognize the funded status of a postretirement benefit plan (defined benefit pension and other benefits) as an asset or liability in our consolidated balance sheets. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Previously unrecognized deferred amounts such as demographic or asset gains or losses and the impact of historical plan changes are included in AOCL. Changes in these amounts in future years will be reflected through AOCL and amortized in future pension expense over the estimated average remaining employee service period. | ||||||||||||||||||||
Derivative Financial Instruments—We enter into foreign currency forward contracts with commercial banks to fix the foreign currency exchange rates on specific commitments, payments, and receipts. Our foreign currency forward contracts are transaction driven and relate directly to a particular asset, liability or transaction for which commitments are in place. For foreign currency forward contracts designated and qualified for cash flow hedge accounting, we record the effective portion of the gain or loss on the derivative in AOCL, net of tax, and reclassify it into earnings in the same period or periods during which the hedged revenue or cost of sales transaction affects earnings. | ||||||||||||||||||||
We recognize all derivative financial instruments as either assets or liabilities at fair value in our consolidated balance sheets. We measure and record the impact of counterparty credit risk into our valuation and the impact was not material for the years ended December 31, 2014 and 2013. We designate most foreign currency forward contracts as cash flow hedges of forecasted purchases and sales denominated in foreign currencies, and interest rate swaps as fair value hedges of our fixed-rate financing obligations. We classify the cash flows from these instruments in the same category as the cash flows from the hedged items. We do not hold or issue derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||
Realized gains and losses resulting from these cash flow hedges offset the foreign exchange gains and losses on the underlying transactions being hedged. Gains and losses on derivatives not designated for hedge accounting or representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized currently in net sales or cost of sales. | ||||||||||||||||||||
We also periodically enter into pay-variable, receive-fixed interest rate swaps to manage interest rate risk associated with our fixed-rate financing obligations. We account for our interest rate swaps as fair value hedges of a portion of our fixed-rate financing obligations, and accordingly record gains and losses from changes in the fair value of these swaps in interest expense, along with the offsetting gains and losses on the fair value adjustment of the hedged portion of our fixed-rate financing obligations. We also record in interest expense the net amount paid or received under the swap for the period and the amortization of gain or loss from the early termination of interest rate swaps. There were no interest rate swaps outstanding for the years ended December 31, 2014 and 2013. For a discussion of the impacts of our hedging activities on our results, see "Note 8: Derivative Financial Instruments". | ||||||||||||||||||||
Fair Values—The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: | ||||||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||
Level 2: | Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities. | |||||||||||||||||||
Level 3: | Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis consisted of marketable securities held in trust, short-term investments and foreign currency forward contracts as of December 31, 2014 and 2013. Fair value information for those assets and liabilities, including their classification in the fair value hierarchy, is included in "Note 13: Pension and Other Employee Benefits" (for marketable securities held in trust), "Note 1: Summary of Significant Accounting Policies" (for short-term investments), and "Note 8: Derivative Financial Instruments" (for foreign currency forward contracts). We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of December 31, 2014 and 2013. We did not have any material amounts of Level 3 assets or liabilities at December 31, 2014 and 2013. | ||||||||||||||||||||
Earnings per Share (EPS)—We compute basic EPS attributable to Raytheon Company common stockholders by dividing income from continuing operations attributable to Raytheon Company common stockholders, income (loss) from discontinued operations attributable to Raytheon Company common stockholders, and net income attributable to Raytheon Company, by our weighted-average common shares outstanding, including participating securities outstanding, as described below, during the period. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in our earnings. We compute basic and diluted EPS using actual income from continuing operations attributable to Raytheon Company common stockholders, income (loss) from discontinued operations attributable to Raytheon Company common stockholders, net income attributable to Raytheon Company, and our actual weighted-average shares and participating securities outstanding rather than the numbers presented within our consolidated financial statements, which are rounded to the nearest million. As a result, it may not be possible to recalculate EPS as presented in our consolidated financial statements. Furthermore, it may not be possible to recalculate EPS attributable to Raytheon Company common stockholders by adjusting EPS from continuing operations by EPS from discontinued operations. | ||||||||||||||||||||
We include all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations. As a result, we have included all of our outstanding unvested restricted stock and Long-term Performance Plan (LTPP) awards that meet the retirement eligible criteria in our calculation of basic and diluted EPS. We disclose EPS for common stock and unvested share-based payment awards, and separately disclose distributed and undistributed earnings. Distributed earnings represent common stock dividends and dividends earned on unvested share-based payment awards of retirement eligible employees. Undistributed earnings represent earnings that were available for distribution but were not distributed. Common stock and unvested share-based payment awards earn dividends equally. | ||||||||||||||||||||
Employee Stock Plans—Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the employees’ requisite service period, generally the vesting period of the award. The expense is amortized over the service period using the graded vesting method for our restricted stock and restricted stock units and the straight-line amortization method for our LTPP. The related gross excess tax benefit received upon exercise of stock options or vesting of a stock-based award, if any, is reflected in the consolidated statements of cash flows as a financing activity rather than an operating activity. | ||||||||||||||||||||
Risks and Uncertainties—We provide a wide range of technologically advanced products, services and solutions for principally governmental customers in the U.S. and abroad, and are subject to certain business risks specific to that industry. Total sales to the U.S. Government, excluding foreign military sales, were 70%, 72%, and 73% of total net sales in 2014, 2013 and 2012, respectively. Total sales to customers outside the U.S., including foreign military sales through the U.S. Government, were 29%, 27% and 26% of total net sales in 2014, 2013 and 2012, respectively. Sales to the U.S. Government may be affected by changes in procurement policies, budget considerations, changing concepts of national defense, political developments abroad and other factors. Sales to international customers may be affected by changes in the priorities and budgets of international customers, which may be driven by changes in threat environments, geo-political uncertainties, potentially volatile worldwide economic conditions, various regional and local economic and political factors, risks and uncertainties and U.S. foreign policy. |
Accounting_Standards
Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Standards | Accounting Standards |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 Revenue from Contracts with Customers (Topic 606) which will replace numerous requirements in U.S. GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. For Raytheon, the standard will be effective in the first quarter of 2017. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. We have not yet selected a transition method. We are currently evaluating the potential changes from this ASU to our future financial reporting and disclosures. However, under the new standard we expect to continue using the cost-to-cost percentage of completion method to recognize revenue for most of our long-term contracts. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on our financial statements or disclosures. | |
Other new pronouncements issued but not effective until after December 31, 2014 are not expected to have a material impact on our financial position, results of operations or liquidity. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Combination, Description [Abstract] | ||||||||||||||||||||
Acquisitions | Acquisitions | |||||||||||||||||||
In pursuing our business strategies, we acquire and make investments in certain businesses that meet strategic and financial criteria. | ||||||||||||||||||||
In November 2014, we acquired Blackbird Technologies, Incorporated, subsequently renamed Raytheon Blackbird Technologies (RBT), for $427 million in cash, net of cash acquired, and exclusive of retention payments. RBT is a leading provider of persistent surveillance, secure tactical communications and cybersecurity solutions to the Intelligence Community and special operations market and further expands our Intelligence, Information and Services (IIS) offerings. In connection with this acquisition, we have preliminarily recorded $301 million of goodwill, all of which was allocated to our IIS business segment, primarily related to expected synergies from combining operations and the value of the existing workforce, and $126 million of intangible assets, primarily related to contractual relationships, completed technology and trade names with a weighted average life of nine years. We expect to complete the purchase price allocation process in the first quarter of 2015 when we receive final valuation results and complete our review. | ||||||||||||||||||||
We allocated the initial purchase price for the acquisition as follows: | ||||||||||||||||||||
(In millions) | Purchase Price Allocation | |||||||||||||||||||
Current assets | $ | 34 | ||||||||||||||||||
Other non-current assets | — | |||||||||||||||||||
Property, plant and equipment, net | 4 | |||||||||||||||||||
Goodwill | 301 | |||||||||||||||||||
Intangible assets | 126 | |||||||||||||||||||
Current liabilities | (34 | ) | ||||||||||||||||||
Other long-term liabilities | (4 | ) | ||||||||||||||||||
Fair value of net assets acquired | $ | 427 | ||||||||||||||||||
In June 2013, we acquired Visual Analytics, Incorporated, subsequently renamed Raytheon Visual Analytics Incorporated. RVAI further extends our capabilities to meet the data analytics, data visualization and information sharing needs of our customers, and this acquisition is part of our strategy to enhance our Intelligence, Information and Services (IIS) offerings. In connection with this acquisition, we have recorded $12 million of goodwill, primarily related to expected synergies from combining operations and the value of the existing workforce, and $3 million of intangible assets, primarily related to technology and customer relationships with a weighted-average life of seven years. | ||||||||||||||||||||
In December 2012, we acquired the Government Solutions business of SafeNet, Inc., subsequently renamed Raytheon Secure Information Systems, LLC (RSIS) for approximately $280 million in cash, net of cash acquired and exclusive of retention payments. RSIS was integrated into our Space and Airborne Systems (SAS) business, within the Integrated Communications Systems product line as the Secure Information Systems product area. RSIS provides advanced encryption capabilities needed by government and industry customers to protect classified data. In connection with this transaction we have recorded $195 million of goodwill related to expected synergies from combining operations and the value of the existing workforce, and $75 million of intangible assets, primarily related to technology with a weighted-average life of eight years. | ||||||||||||||||||||
Additionally, in 2012 we acquired Teligy, Inc., subsequently renamed Raytheon Teligy, Inc., and an Australian company, Poseidon Scientific Instruments Pty Ltd., for an aggregate of $22 million in cash, net of cash acquired. Raytheon Teligy, Inc. further extends our cybersecurity offerings in wireless communications at Intelligence, Information and Services (IIS). The Poseidon Scientific Instruments Pty Ltd. acquisition is part of our strategy to extend and enhance our Integrated Defense Systems (IDS) offerings. In connection with these acquisitions we recorded $15 million of goodwill, primarily related to expected synergies from combining operations, and $5 million of intangible assets, primarily related to customer relationships and technology with a weighted-average life of six years. | ||||||||||||||||||||
Pro forma financial information and revenue from the date of acquisition has not been provided for these acquisitions as they are not material either individually or in the aggregate. | ||||||||||||||||||||
We funded each of the above acquisitions using cash on hand. The operating results of these businesses have been included in our consolidated results as of the respective closing dates of the acquisitions. The purchase price of these businesses has been allocated to the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded as goodwill. | ||||||||||||||||||||
The total amount of goodwill that is expected to be deductible for tax purposes related to these acquisitions was $489 million at December 31, 2014. | ||||||||||||||||||||
A rollforward of goodwill by segment is as follows: | ||||||||||||||||||||
(In millions) | Integrated | Intelligence, Information and Services | Missile | Space | Total | |||||||||||||||
Defense | Systems | and | ||||||||||||||||||
Systems | Airborne | |||||||||||||||||||
Systems | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,799 | $ | 2,699 | $ | 4,150 | $ | 4,108 | $ | 12,756 | ||||||||||
Increase for acquisitions | — | 12 | — | (2 | ) | 10 | ||||||||||||||
Effect of foreign exchange | 1 | (3 | ) | — | — | (2 | ) | |||||||||||||
rates and other | ||||||||||||||||||||
Balance at December 31, 2013 | 1,800 | 2,708 | 4,150 | 4,106 | 12,764 | |||||||||||||||
Increase for acquisitions | — | 301 | — | — | 301 | |||||||||||||||
Effect of foreign exchange | (3 | ) | (1 | ) | — | — | (4 | ) | ||||||||||||
rates and other | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,797 | $ | 3,008 | $ | 4,150 | $ | 4,106 | $ | 13,061 | ||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |
Discontinued Operations | Discontinued Operations |
In pursuing our business strategies we have divested certain non-core businesses, investments and assets when appropriate. All residual activity relating to our previously disposed businesses appears in discontinued operations. | |
In the second quarter of 2014, we received notice of the resolution of a dispute and related litigation with the U.S. Government regarding pension segment closing adjustments under U.S. Government Cost Accounting Standard 413 (CAS 413) for operations we divested over ten years ago. Under CAS 413, a pension plan termination adjustment is required when a contractor divests a business, yet retains ownership of the pension plan assets and liabilities of that business. These adjustments can result in payments to the U.S. Government for pension plans that are in surplus position or payments to contractors for plans that are in a deficit position. As a result, in 2014 we received payment of $81 million and recorded a $52 million gain, net of federal tax expense, in discontinued operations, attributable to the affected plans that were in a deficit position at the time of divestiture. | |
In the divestiture of Flight Options LLC (Flight Options), we agreed to indemnify Flight Options in the event Flight Options was assessed and paid excise taxes. In the fourth quarter of 2010, Internal Revenue Service (IRS) appeals proceedings failed to resolve the federal excise tax dispute, and as a result, the IRS assessed Flight Options for excise taxes. As a result, in the fourth quarter of 2010, we recorded a $39 million charge, net of federal tax benefit, in discontinued operations. In the first quarter of 2011, Flight Options paid the assessment. We contested the matter through litigation, and in the fourth quarter of 2013, we reached a settlement and recorded a $33 million gain, net of federal tax expense, in discontinued operations. | |
Additionally in the fourth quarter of 2013, we reached a settlement regarding certain tax audits associated with our divestiture of Raytheon Aircraft Company. As a result of this settlement, we recorded a $25 million gain, net of federal tax expense, in discontinued operations. | |
We retained certain assets and liabilities of our previously-disposed businesses. At December 31, 2014 we had $1 million of assets. At December 31, 2013 we had $56 million of assets primarily related to a receivable for an excise tax settlement associated with Flight Options. At December 31, 2014 and December 31, 2013, we had $15 million and $16 million of liabilities primarily related to certain environmental and product liabilities, non-income tax obligations, various contract obligations and aircraft lease obligations. We also retained certain pension assets and obligations, which we include in our pension disclosures. |
Contracts_in_Process_Net
Contracts in Process, Net | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Contract in Process Net [Abstract] | ||||||||||||||||||||||||
Contracts in Process, Net | Contracts in Process, Net | |||||||||||||||||||||||
Contracts in process, net consisted of the following at December 31: | ||||||||||||||||||||||||
Cost-Type | Fixed-Price | Total | ||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
U.S. Government contracts (including foreign | ||||||||||||||||||||||||
military sales): | ||||||||||||||||||||||||
Billed | $ | 409 | $ | 490 | $ | 226 | $ | 374 | $ | 635 | $ | 864 | ||||||||||||
Unbilled | 810 | 787 | 8,418 | 8,139 | 9,228 | 8,926 | ||||||||||||||||||
Progress payments | — | — | (5,834 | ) | (6,003 | ) | (5,834 | ) | (6,003 | ) | ||||||||||||||
1,219 | 1,277 | 2,810 | 2,510 | 4,029 | 3,787 | |||||||||||||||||||
Other customers: | ||||||||||||||||||||||||
Billed | 14 | 16 | 393 | 343 | 407 | 359 | ||||||||||||||||||
Unbilled | 27 | 22 | 1,127 | 1,411 | 1,154 | 1,433 | ||||||||||||||||||
Progress payments | — | — | (601 | ) | (705 | ) | (601 | ) | (705 | ) | ||||||||||||||
41 | 38 | 919 | 1,049 | 960 | 1,087 | |||||||||||||||||||
Allowance for doubtful accounts | — | — | (4 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||
Total contracts in process, net | $ | 1,260 | $ | 1,315 | $ | 3,725 | $ | 3,555 | $ | 4,985 | $ | 4,870 | ||||||||||||
The U.S. Government has title to the assets related to unbilled amounts on contracts that provide progress payments. Unbilled amounts are recorded under the percentage-of-completion method and are recoverable from the customer upon shipment of the product, presentation of billings or completion of the contract. Included in unbilled at December 31, 2014 was $190 million which is expected to be collected outside of one year. | ||||||||||||||||||||||||
Billed and unbilled contracts in process include retentions arising from contractual provisions. At December 31, 2014, retentions were $50 million. We anticipate collecting $5 million of these retentions in 2015 and the balance thereafter. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |||||||
Property, plant and equipment, net consisted of the following at December 31: | ||||||||
(In millions) | 2014 | 2013 | ||||||
Land | $ | 103 | $ | 104 | ||||
Buildings and improvements | 2,607 | 2,547 | ||||||
Machinery and equipment | 3,716 | 3,605 | ||||||
Property, plant and equipment, gross | 6,426 | 6,256 | ||||||
Accumulated depreciation and amortization | (4,491 | ) | (4,319 | ) | ||||
Total | $ | 1,935 | $ | 1,937 | ||||
Depreciation and amortization expense of property, plant and equipment, net was $301 million, $303 million and $318 million in 2014, 2013 and 2012, respectively. |
Other_Assets_Net
Other Assets, Net | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||
Other Assets Net [Text Block] | Other Assets, Net | |||||||||
Other assets, net consisted of the following at December 31: | ||||||||||
(In millions) | 2014 | 2013 | ||||||||
Marketable securities held in trust | $ | 519 | $ | 479 | ||||||
Computer software, net of accumulated amortization of $992 and $918 at | 313 | 340 | ||||||||
December 31, 2014 and 2013, respectively | ||||||||||
Other intangible assets, net of accumulated amortization of $293 and $242 at | 303 | 235 | ||||||||
December 31, 2014 and 2013, respectively | ||||||||||
Other noncurrent assets, net | 246 | 330 | ||||||||
Deferred tax asset, noncurrent(1) | 1,231 | 66 | ||||||||
Total | $ | 2,612 | $ | 1,450 | ||||||
(1) For further details, refer to "Note 14: Income Taxes". | ||||||||||
Computer software amortization expense was $79 million, $82 million and $88 million in 2014, 2013 and 2012, respectively. | ||||||||||
Other intangible assets, net consisted primarily of drawings and intellectual property, and increased $126 million, $3 million and $80 million as a result of acquired businesses in 2014, 2013 and 2012, respectively. These intangible assets are being amortized over their estimated useful lives which range from 2 to 25 years using either a straight-line or accelerated amortization method based on the pattern of economic benefits we expect to realize from such assets. Amortization expense for other intangible assets was $58 million, $60 million and $49 million in 2014, 2013 and 2012, respectively. | ||||||||||
Computer software and other intangible asset amortization expense is expected to be approximately $127 million in 2015, $108 million in 2016, $85 million in 2017, $72 million in 2018 and $59 million in 2019. | ||||||||||
Investments, which are included in other noncurrent assets, net above consisted of the following at December 31: | ||||||||||
(In millions, except percentages) | Ownership % | 2014 | 2013 | |||||||
Equity method investments | ||||||||||
Thales-Raytheon Systems Co. Ltd. (TRS) | 50 | $ | 98 | $ | 71 | |||||
Other investments | Various | 11 | 9 | |||||||
Total | $ | 109 | $ | 80 | ||||||
In 2001, we formed the TRS joint venture. TRS is a system of systems integrator and provides fully customized solutions through the integration of command and control centers, radars, and communication networks. We record our share of the TRS income or loss and other comprehensive income (loss) as a component of cost of sales and AOCL, respectively. We record losses beyond the carrying amount of the investment only when we guarantee obligations of the investee or commit to provide the investee further financial support. | ||||||||||
TRS has two major operating subsidiaries, one of which, Thales-Raytheon Systems Co. LLC (TRS LLC), we control and consolidate and is a component of our IDS segment, and the other one, Thales-Raytheon Systems Company S.A.S. (TRS SAS), which we account for using the equity method through our investment in TRS. Of the $98 million investment in TRS, $60 million represents undistributed earnings at December 31, 2014. Our consolidated statements of operations includes net income, which represents net income attributable to Raytheon Company and net income attributable to noncontrolling interests in subsidiaries. Our primary noncontrolling interest relates to TRS LLC. TRS LLC has a joint venture with TRS SAS called Air Command Systems International S.A.S. (ACSI), for which TRS LLC performs work. At December 31, 2014, TRS LLC had $18 million of receivables due from ACSI. | ||||||||||
In addition, we have entered into certain joint ventures formed specifically to facilitate a teaming arrangement between two contractors for the benefit of a customer, generally the U.S. Government, whereby we receive a subcontract from the joint venture in the joint venture’s capacity as prime contractor. Accordingly, we record the work we perform for the joint venture as an operating activity. | ||||||||||
Periodically we enter into other equity method investments that are not related to our core operations. We record the income or loss from these investments as a component of other (income) expense, net. We record losses beyond the carrying amount of the investment only when we guarantee obligations of the investee or commit to provide the investee further financial support. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||
Our primary market exposures are to foreign exchange rates and interest rates, and we use certain derivative financial instruments to help manage these exposures. We execute these instruments with financial institutions that we judge to be credit-worthy, and the majority of our foreign currency forward contracts are denominated in currencies of major industrial countries. We do not hold or issue derivative financial instruments for trading or speculative purposes. | ||||||||||||||||
The fair value amounts of asset derivatives included in other assets, net and liability derivatives included in other accrued expenses in our consolidated balance sheets related to foreign currency forward contracts were as follows at December 31: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivatives designated as hedging instruments | $ | 5 | $ | 20 | $ | 19 | $ | 23 | ||||||||
Derivatives not designated as hedging instruments | 2 | 3 | 5 | 3 | ||||||||||||
Total | $ | 7 | $ | 23 | $ | 24 | $ | 26 | ||||||||
The fair values of these derivatives are Level 2 in the fair value hierarchy for 2014 and 2013 because they are determined based on a market approach utilizing externally quoted forward rates for similar contracts. | ||||||||||||||||
We recognized the following pretax gains (losses) related to foreign currency forward contracts designated as cash flow hedges: | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Effective Portion | ||||||||||||||||
Gain (loss) recognized in AOCL | $ | (13 | ) | $ | (1 | ) | ||||||||||
Gain (loss) reclassified from AOCL to operating income | (2 | ) | 3 | |||||||||||||
Amount excluded from effectiveness assessment and ineffective portion | ||||||||||||||||
Gain (loss) recognized in operating income | — | — | ||||||||||||||
We recognized the following pretax gains (losses) related to foreign currency forward contracts not designated as cash flow hedges: | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Gain (loss) recognized in operating income | $ | (3 | ) | $ | (1 | ) | ||||||||||
We use foreign currency forward contracts to fix the functional currency value of specific commitments, payments and receipts. The aggregate notional amount of the outstanding foreign currency forward contracts was $926 million and $1,396 million at December 31, 2014 and December 31, 2013, respectively. The net exposure of these contracts was approximately $57 million and $78 million at December 31, 2014 and December 31, 2013, respectively. The foreign currency forward contracts at December 31, 2014 have maturities at various dates through 2028 as follows: $551 million in 2015; $224 million in 2016; $116 million in 2017; $14 million in 2018; and $21 million thereafter. | ||||||||||||||||
Our foreign currency forward contracts contain off-set or netting provisions to mitigate credit risk in the event of counterparty default, including payment default and cross default. At both December 31, 2014 and December 31, 2013, the fair value of our counterparty default exposure was less than $1 million and spread across numerous highly-rated counterparties. | ||||||||||||||||
There were no interest rate swaps outstanding at December 31, 2014 or December 31, 2013. | ||||||||||||||||
In December 2014, we issued $600 million of fixed-rate long-term debt with half maturing in 10 years and the other half maturing in 30 years. In conjunction with the debt issuance, we entered into interest rate lock agreements with a total notional value of $100 million to manage interest rate risk, which resulted in an increase to AOCL of less than $1 million to be amortized over the term of the debt issued. | ||||||||||||||||
In December 2012, we issued $1.1 billion of fixed-rate long-term debt with a maturity of 10 years. In conjunction with the debt issuance, we entered into interest rate lock agreements with a total notional value of $700 million to manage interest rate risk, which resulted in a decrease to AOCL of $3 million to be amortized over the term of the debt issued. As of December 31, 2012, the above referenced interest rate locks were closed out. |
Notes_Payable_and_Longterm_Deb
Notes Payable and Long-term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Notes Payable and Long-term Debt | Notes Payable and Long-term Debt | |||||||
Notes payable and long-term debt consisted of the following at December 31: | ||||||||
(In millions, except percentages) | 2014 | 2013 | ||||||
$251 notes due 2018, 6.75% | $ | 251 | $ | 251 | ||||
$340 notes due 2018, 6.40% | 339 | 339 | ||||||
$500 notes due 2020, 4.40% | 498 | 497 | ||||||
$1,000 notes due 2020, 3.125% | 993 | 992 | ||||||
$1,100 notes due 2022, 2.50% | 1,093 | 1,092 | ||||||
$300 notes due 2024, 3.15% | 297 | — | ||||||
$382 notes due 2027, 7.20% | 370 | 369 | ||||||
$185 notes due 2028, 7.00% | 184 | 184 | ||||||
$600 notes due 2040, 4.875% | 591 | 591 | ||||||
$425 notes due 2041, 4.70% | 419 | 419 | ||||||
$300 notes due 2044, 4.20% | 295 | — | ||||||
Total debt issued and outstanding | $ | 5,330 | $ | 4,734 | ||||
The notes are redeemable by us at any time at redemption prices based on U.S. Treasury rates. The carrying value of long-term debt was recorded at amortized cost. The fair value of long-term debt was determined on quoted prices in inactive markets, which falls within Level 2 of the fair value hierarchy. | ||||||||
The estimated fair value of long-term debt was the following at December 31: | ||||||||
(In millions) | 2014 | 2013 | ||||||
Fair value of long-term debt | $ | 5,936 | $ | 5,036 | ||||
In the fourth quarter of 2014, we received proceeds of $592 million for the issuance of $600 million fixed-rate long-term debt. | ||||||||
In the fourth quarter of 2012, we received proceeds of $1,092 million for the issuance of $1.1 billion fixed-rate long-term debt and exercised our call rights to repurchase, at prices based on fixed spreads to the U.S. Treasuries, $970 million of our long-term debt due 2014 and 2015 at a loss of $29 million pretax, $19 million after-tax, which is included in other (income) expense, net. | ||||||||
The adjustments to the principal amounts of long-term debt were as follows at December 31: | ||||||||
(In millions) | 2014 | 2013 | ||||||
Principal | $ | 5,383 | $ | 4,783 | ||||
Unamortized issue discounts | (43 | ) | (38 | ) | ||||
Unamortized interest rate lock costs | (10 | ) | (11 | ) | ||||
Total | $ | 5,330 | $ | 4,734 | ||||
The aggregate amounts of principal payments due on long-term debt for the next five years are: | ||||||||
(In millions) | ||||||||
2015 | $ | — | ||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 591 | |||||||
2019 | — | |||||||
In December 2011, we entered into a $1.4 billion revolving credit facility maturing in 2016. Under the $1.4 billion credit facility, we can borrow, issue letters of credit and backstop commercial paper. Borrowings under this facility bear interest at various rate options, including LIBOR plus a margin based on our credit ratings. Based on our credit ratings at December 31, 2014, borrowings would generally bear interest at LIBOR plus 79.5 basis points. The credit facility is comprised of commitments from approximately 25 separate highly rated lenders, each committing no more than 10% of the facility. As of December 31, 2014 and December 31, 2013, there were no borrowings outstanding under this credit facility. However, we had $2 million of outstanding letters of credit at December 31, 2014 and December 31, 2013, which effectively reduced our borrowing capacity under this credit facility by those same amounts. | ||||||||
Under the $1.4 billion credit facility we must comply with certain covenants, including a ratio of total debt to total capitalization of no more than 60%. We were in compliance with the credit facility covenants during 2014 and 2013. Our ratio of total debt to total capitalization, as those terms are defined in the credit facility, was 35.9% at December 31, 2014. We are providing this ratio as this metric is used by our lenders to monitor our leverage and is also a threshold that limits our ability to utilize this facility. | ||||||||
Total cash paid for interest on notes payable and long-term debt was $209 million, $210 million and $198 million in 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||||
Leases—At December 31, 2014, we had commitments under long-term leases requiring annual rentals on a net lease basis as follows: | |||||||||||||
(In millions) | |||||||||||||
2015 | $ | 186 | |||||||||||
2016 | 156 | ||||||||||||
2017 | 131 | ||||||||||||
2018 | 110 | ||||||||||||
2019 | 76 | ||||||||||||
Thereafter | 288 | ||||||||||||
Rent expense was $225 million, $248 million and $258 million in 2014, 2013 and 2012, respectively. In the normal course of business, we lease equipment, office buildings and other facilities under leases that include standard escalation clauses for adjusting rent payments to reflect changes in price indices, as well as renewal options. | |||||||||||||
At December 31, 2014, we had commitments under agreements to outsource a portion of our information technology function, which have minimum annual payments of less than $5 million. | |||||||||||||
Environmental Matters—We are involved in various stages of investigation and cleanup related to remediation of various environmental sites. Our estimate of the liability of total environmental remediation costs includes the use of a discount rate and takes into account that a portion of these costs is eligible for future recovery through the pricing of our products and services to the U.S. Government. We consider such recovery probable based on government contracting regulations and our long history of receiving reimbursement for such costs, and accordingly have recorded the estimated future recovery of these costs from the U.S. Government within contracts in process, net. Our estimates regarding remediation costs to be incurred were as follows at December 31: | |||||||||||||
(In millions, except percentages) | 2014 | 2013 | |||||||||||
Total remediation costs—undiscounted | $ | 202 | $ | 198 | |||||||||
Weighted-average discount rate | 5.5 | % | 5.6 | % | |||||||||
Total remediation costs—discounted | $ | 131 | $ | 133 | |||||||||
Recoverable portion | 80 | 90 | |||||||||||
We also lease certain government-owned properties and generally are not liable for remediation of preexisting environmental contamination at these sites. As a result, we generally do not provide for these costs in our consolidated financial statements. | |||||||||||||
Due to the complexity of environmental laws and regulations, the varying costs and effectiveness of alternative cleanup methods and technologies, the uncertainty of insurance coverage and the unresolved extent of our responsibility, it is difficult to determine the ultimate outcome of environmental matters. However, we do not expect any additional liability to have a material adverse effect on our financial position, results of operations or liquidity. | |||||||||||||
Environmental remediation costs expected to be incurred are: | |||||||||||||
(In millions) | |||||||||||||
2015 | $ | 30 | |||||||||||
2016 | 21 | ||||||||||||
2017 | 14 | ||||||||||||
2018 | 14 | ||||||||||||
2019 | 11 | ||||||||||||
Thereafter | 112 | ||||||||||||
Financing Arrangements and Other—We issue guarantees, and banks and surety companies issue, on our behalf, letters of credit and surety bonds to meet various bid, performance, warranty, retention and advance payment obligations of us or our affiliates. These instruments expire on various dates through 2023. Additional guarantees of project performance for which there is no stated value also remain outstanding. The stated values outstanding consisted of the following at December 31: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Guarantees | $ | 266 | $ | 378 | |||||||||
Letters of credit | 1,938 | 1,424 | |||||||||||
Surety bonds | 298 | 238 | |||||||||||
Included in guarantees and letters of credit described above were $196 million and $244 million, respectively, at December 31, 2014, and $233 million and $268 million, respectively, at December 31, 2013, related to our joint venture in TRS. We provide these guarantees and letters of credit to TRS and other affiliates to assist these entities in obtaining financing on more favorable terms, making bids on contracts and performing their contractual obligations. While we expect these entities to satisfy their loans and meet their project performance and other contractual obligations, their failure to do so may result in a future obligation to us. We periodically evaluate the risk of TRS and other affiliates failing to satisfy their loans and meet their project performance and other contractual obligations described above. At December 31, 2014, we believe the risk that TRS and other affiliates will not be able to perform or meet their obligations is minimal for the foreseeable future based on their current financial condition. All obligations were current at December 31, 2014. At December 31, 2014 and December 31, 2013, we had an estimated liability of $9 million and $8 million, respectively, related to these guarantees and letters of credit. The increase in letters of credit of $514 million in 2014 compared to 2013 was primarily driven by advance payment bonds of approximately $500 million related to certain international programs. | |||||||||||||
The TRS joint venture agreement was amended on June 10, 2014 to allow for termination of the joint venture by either party every three years based on the scheduled date for the designation of a successor Chief Executive Officer for the joint venture which would next occur in 2016. Termination terms and related payments are subject to negotiation between Thales S.A. (Thales) and Raytheon, but generally would include a net payment due for undistributed earnings of the joint venture companies since inception and a net payment based on the relative fair value of those companies excluding Air Command Systems International S.A.S. (ACSI). As a result, any final future termination amounts cannot be determined precisely at this time and could be different from those amounts recorded to date. However, if the joint venture were terminated as of December 31, 2014, we believe the termination payment we would be required to make based on a standard valuation approach would not be material. If a termination liability exceeds $50 million, the agreement allows the paying side to elect to make payments, inclusive of interest, in equal installments over five years to settle the liability. | |||||||||||||
In 1997, we provided a first loss guarantee of $133 million on $1.3 billion of U.S. Export-Import Bank loans (maturing in the second quarter of 2015) to the Brazilian Government related to IDS' System for the Vigilance of the Amazon (SIVAM) program. As of December 31, 2014, the guarantee amount was $60 million. Loan repayments by the Brazilian Government were current at December 31, 2014. | |||||||||||||
We have entered into industrial cooperation agreements, sometimes referred to as offset agreements, as a condition to obtaining orders for our products and services from certain customers in foreign countries. At December 31, 2014, the aggregate amount of our offset agreements had an outstanding notional value of approximately $5 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. We have historically not been required to pay any such penalties. | |||||||||||||
As a U.S. Government contractor, we are subject to many levels of audit and investigation by the U.S. Government relating to our contract performance and compliance with applicable rules and regulations. Agencies that oversee contract performance include: the Defense Contract Audit Agency, the Defense Contract Management Agency, the Inspector General of the Department of Defense and other departments and agencies, the Government Accountability Office, the Department of Justice and Congressional Committees. From time to time, these and other agencies investigate or conduct audits to determine whether our operations are being conducted in accordance with applicable requirements. Such investigations and audits could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed upon us, the suspension of government export licenses or the suspension or debarment from future U.S. Government contracting. U.S. Government investigations often take years to complete and many result in no adverse action against us. 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 Department of Justice 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., the Foreign Corrupt Practices Act and the International Traffic in Arms Regulations) may also be investigated or audited. Other than as specifically disclosed herein, we do not expect these audits, investigations or disputes to have a material effect on our financial position, results of operations or liquidity, either individually or in the aggregate. | |||||||||||||
On July 22, 2010, Raytheon Systems Limited (RSL) was notified by the UK Border Agency (UKBA) that it had been terminated for cause on a program. The termination notice included allegations that RSL had failed to perform on certain key milestones and other matters in addition to claiming entitlement to recovery of certain losses incurred and previous payments made to RSL. We believe that RSL performed well and delivered substantial capabilities to the UKBA under the program, which has been operating successfully and providing actionable information since live operations began in May 2009. As a result of the termination notice, we adjusted our estimated amounts of revenue and cost under the program in the second quarter of 2010. On July 29, 2010, RSL filed a dispute notice on the grounds that the termination by the UKBA was not valid. On August 18, 2010, the UKBA initiated arbitration proceedings on this issue. On March 22, 2011, the UKBA gave notice that it had presented a demand to draw on the approximately $80 million of letters of credit provided by RSL upon the signing of the contract with the UKBA in 2007. On March 23, 2011, the UKBA submitted a detailed claim in the arbitration of approximately £350 million (approximately $545 million based on foreign exchange rates as of December 31, 2014) for damages and clawback of previous payments, plus interest and arbitration costs, excluding any credit for capability delivered or draw on the letters of credit. The UKBA also asserted that additional amounts may be detailed in the claim in the future if estimates of its damages change, and for continuing post-termination losses and any re-procurement costs, which have not been quantified. At RSL's request, on March 29, 2011, the Arbitration Tribunal issued an interim order restraining the UKBA from drawing down on the letters of credit pending a hearing on the issue. Following the hearing, the Tribunal lifted the restraint on the basis that, at this early stage of the proceedings, the Tribunal had not heard the evidence needed to decide the merits of whether the contractual conditions for a drawdown had been established. The Tribunal also concluded that any decision on the UKBA's right to call on the letters of credit is inextricably intertwined with the ultimate decision on the merits in the arbitration. The Tribunal also preserved RSL's right to claim damages should RSL later establish that the drawdown was not valid. As a result, on April 6, 2011, the UKBA drew the $80 million on the letters of credit. | |||||||||||||
As a result of the Tribunal's decision that the letters of credit are inextricably intertwined with the ultimate decision on the merits in the arbitration, we were no longer able to evaluate, independently from the overall claim, the probability of recovery of any amounts drawn on the letters of credit. We therefore recorded $80 million of costs related to the UKBA drawdown (UKBA LOC Adjustment), which was included in the operating expenses of our Intelligence, Information and Services (IIS) segment in the first quarter of 2011. | |||||||||||||
In June 2011, RSL submitted in the arbitration its defenses to the UKBA claim as well as substantial counterclaims in the amount of approximately £500 million (approximately $778 million based on foreign exchange rates as of December 31, 2014) against the UKBA for the collection of receivables, damages and interest. On October 3, 2011, the UKBA filed its reply to RSL's counterclaims, and increased its claim amount by approximately £32 million, to include additional civil service and post termination costs, and approximately £33 million for interest, raising the gross amount of the UKBA claim for damages and clawback of previous payments to approximately £415 million (approximately $646 million based on foreign exchange rates as of December 31, 2014). On January 6, 2012, RSL filed its response to the UKBA's reply. RSL is pursuing vigorously the collection of all receivables for the program and damages in connection with the wrongful termination and mounted a strong defense to the UKBA's alleged claims for losses and previous payments. RSL has also settled substantially all subcontractor claims, novated all key subcontracts to the UKBA and agreed with the UKBA that RSL's exit obligations to operate the previously delivered capability ended in April 2011. Effective April 15, 2011, the UKBA took over responsibility for operating the previously delivered capability. In March 2013, the UKBA updated the total net amount of its claims to approximately £302 million (approximately $470 million based on foreign exchange rates as of December 31, 2014) for damages, clawback of previous payments and interest, and inclusive of a credit for capability delivered by RSL. Arbitration hearings commenced in late 2013 and were completed in 2013. We continue to believe that the receivables and other assets remaining under the program for technology and services delivered of approximately $40 million at December 31, 2014 are probable of recovery. | |||||||||||||
On August 15, 2014, RSL received a decision from the Tribunal. The Tribunal found that the UKBA had unlawfully terminated RSL for default and had therefore repudiated the eBorders contract with RSL. Accordingly, the Tribunal denied the UKBA’s claims for damages and clawback of previous payments. In addition, the Tribunal found that the UKBA had wrongfully retained the $80 million it had drawn on RSL letters of credit in April 2011. The Tribunal awarded RSL approximately £185 million (approximately $288 million based on foreign exchange rates as of December 31, 2014) as payment for capabilities delivered, damages and other monetary relief. The Tribunal reserved ruling on costs and on the quantification of interest payable to RSL for a later date. | |||||||||||||
On September 15, 2014, the UKBA filed a challenge to the award in the London High Court. RSL is vigorously opposing such challenge. The payment of amounts awarded to RSL is now pending resolution of the challenge. Due to the inherent uncertainties of arbitration and litigation, no amounts regarding this matter were recorded in our financial results for the year ended December 31, 2014. | |||||||||||||
On June 29, 2012 and July 13, 2012, we received a contracting officer’s final decision (COFD) for 2004 and 2005 incurred costs at SAS. The COFDs demand a total payment of $241 million for costs, interest and penalties associated with several issues, the largest of which relates to specific research and development and capital projects undertaken by SAS between 2000 and 2005. To date, no COFDs have been provided for 2000 to 2003 periods at SAS on these issues. The Government alleges that the costs incurred on the projects should have been charged directly to U.S. Government contracts rather than through indirect rates and that these costs should not be recoverable. We strongly disagree with the Government's position. We have requested a deferment of the payment and in February and May 2013, we filed complaints in the U.S. COFC challenging the 2004 and 2005 COFDs, respectively. Due to the inherent uncertainties of litigation, we cannot estimate a range of potential loss. We believe that we appropriately charged the disputed costs based on government accounting standards and applicable precedent and properly disclosed our approach to the Government. We also believe that in many cases, the statute of limitations has run on the issues. Based upon the foregoing, we do not expect the results of the COFDs to have a material impact on our financial position, results of operations or liquidity. | |||||||||||||
In addition, various other claims and legal proceedings generally incidental to the normal course of business are pending or threatened against, or initiated by, us. We do not expect any of these proceedings to result in any additional liability or gains that would materially affect our financial position, results of operations or liquidity. In connection with certain of our legal matters, we may be entitled to insurance recovery for qualified legal costs. We do not expect any insurance recovery to have a material impact on the financial exposure that could result from these matters. | |||||||||||||
Product Warranty—We provide for product warranties in conjunction with certain product sales for which we recognize revenue upon delivery. | |||||||||||||
Activity related to product warranty accruals was as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 30 | $ | 33 | $ | 38 | |||||||
Provisions for warranties | 9 | 3 | 5 | ||||||||||
Warranty services provided | (7 | ) | (6 | ) | (10 | ) | |||||||
Ending balance | $ | 32 | $ | 30 | $ | 33 | |||||||
We account for warranty provision costs incurred under our long-term contracts using the cost-to-cost measure of progress as contracts costs, as the estimation of these costs is integral in determining the price of the related long-term contracts. The table above excludes these costs. | |||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | |||||||||||||||||
The changes in shares of our common stock outstanding were as follows: | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Beginning balance | 314.5 | 328.1 | 338.9 | |||||||||||||||
Stock plans activity | 1.4 | 2.4 | 5.8 | |||||||||||||||
Stock repurchases | (8.6 | ) | (16.0 | ) | (16.6 | ) | ||||||||||||
Ending balance | 307.3 | 314.5 | 328.1 | |||||||||||||||
On May 27, 2010, our stockholders approved the Raytheon 2010 Stock Plan pursuant to which we may grant restricted stock awards, restricted stock units, stock grants, stock options and stock appreciation rights. | ||||||||||||||||||
In November 2013, our Board of Directors authorized the repurchase of up to $2.0 billion of our outstanding common stock. At December 31, 2014, we had approximately $1.5 billion available under this repurchase program. Share repurchases will take place from time to time at management’s discretion depending on market conditions. | ||||||||||||||||||
Share repurchases also include shares surrendered by employees to satisfy tax withholding obligations in connection with restricted stock, restricted stock units and stock option awards issued to employees. | ||||||||||||||||||
Our share repurchases were as follows: | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
$ | Shares | $ | Shares | $ | Shares | |||||||||||||
Shares repurchased under our share repurchase programs | $ | 750 | 7.7 | $ | 1,075 | 15.2 | $ | 825 | 15.9 | |||||||||
Shares repurchased to satisfy tax withholding obligations | 90 | 0.9 | 48 | 0.8 | 37 | 0.7 | ||||||||||||
Total share repurchases | $ | 840 | 8.6 | $ | 1,123 | 16 | $ | 862 | 16.6 | |||||||||
In March 2014, our Board of Directors authorized a 10% increase to our annual dividend payout rate from $2.20 to $2.42 per share. Our Board of Directors declared dividends of $2.42, $2.20 and $2.00 per share in 2014, 2013 and 2012, respectively. Dividends are subject to quarterly approval by our Board of Directors. | ||||||||||||||||||
Earnings Per Share (EPS) | ||||||||||||||||||
EPS from continuing operations attributable to Raytheon Company common stockholders and unvested share-based payment awards was as follows: | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Basic EPS attributable to Raytheon Company common stockholders: | ||||||||||||||||||
Distributed earnings | $ | 2.39 | $ | 2.19 | $ | 1.98 | ||||||||||||
Undistributed earnings | 4.59 | 3.78 | 3.69 | |||||||||||||||
Total | $ | 6.98 | $ | 5.97 | $ | 5.67 | ||||||||||||
Diluted EPS attributable to Raytheon Company common stockholders: | ||||||||||||||||||
Distributed earnings | $ | 2.39 | $ | 2.18 | $ | 1.98 | ||||||||||||
Undistributed earnings | 4.58 | 3.78 | 3.67 | |||||||||||||||
Total | $ | 6.97 | $ | 5.96 | $ | 5.65 | ||||||||||||
Basic and diluted EPS from discontinued operations attributable to Raytheon Company common stockholders and unvested share-based payment awards were earnings of $0.21, earnings of $0.20 and a loss of less than $0.01 for 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Income attributable to participating securities was as follows: | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations attributable to participating securities | $ | 39 | $ | 38 | $ | 36 | ||||||||||||
Income (loss) from discontinued operations, net of tax attributable to participating securities(1) | 1 | 1 | — | |||||||||||||||
Net income attributable to participating securities | $ | 40 | $ | 39 | $ | 36 | ||||||||||||
-1 | Income (loss) from discontinued operations, net of tax attributable to participating securities was a loss of less than $1 million for 2012. | |||||||||||||||||
The weighted-average shares outstanding for basic and diluted EPS were as follows: | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Shares for basic EPS (including 5.5 participating securities for 2014, 6.4 for 2013, and 6.3 for 2012) | 312 | 323.4 | 333.2 | |||||||||||||||
Dilutive effect of stock options and LTPP | 0.6 | 0.8 | 1 | |||||||||||||||
Shares for diluted EPS | 312.6 | 324.2 | 334.2 | |||||||||||||||
There were no stock options with exercise prices greater than the average market price (anti-dilutive) that were excluded from our calculation of diluted EPS in 2014, 2013 and 2012. Stock options to purchase the following number of shares of common stock had exercise prices that were less than the average market price (dilutive) of our common stock and were included in our calculations of diluted EPS: | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Stock options included in the calculation of EPS (dilutive)(2) | — | 0.1 | 0.9 | |||||||||||||||
-2 | Stock options included in the calculation of EPS (dilutive) were less than 1 million for 2014. | |||||||||||||||||
Our Board of Directors is authorized to issue up to 200 million shares of preferred stock, $0.01 par value per share, in multiple series with terms as determined by them. There were no shares of preferred stock outstanding at December 31, 2014 and December 31, 2013. |
Stockbased_Compensation_Plans
Stock-based Compensation Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation [Abstract] | ||||||||||||
Stock-based Compensation Plans | Stock-based Compensation Plans | |||||||||||
Stock-based compensation expense and the associated tax benefits were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Stock-based compensation expense | $ | 148 | $ | 129 | $ | 122 | ||||||
Stock-based tax benefit | 48 | 39 | 37 | |||||||||
At December 31, 2014, there was $161 million of compensation expense related to nonvested awards not yet recognized which is expected to be recognized over a weighted-average period of 1.6 years. | ||||||||||||
At December 31, 2014, we had stock-based compensation awards outstanding under a number of stock plans, including our 2010 Stock Plan. Future grants of awards will be made from the 2010 Stock Plan and not from our prior plans. | ||||||||||||
Shares issued as a result of stock awards, stock option exercises or conversion of restricted stock unit awards will be funded through the issuance of new shares. Of the 41.8 million shares authorized under our stock plans, there were 7.0 million shares available for awards under such plans as of December 31, 2014. | ||||||||||||
Restricted Stock | ||||||||||||
The 2010 Stock Plan provides for the award of restricted stock awards, restricted stock units and stock appreciation rights to our employees, officers, nonemployee directors and consultants. Awards of restricted stock, restricted stock units and stock appreciation rights generally are made by the MDCC and are compensatory in nature. These awards vest over a specified period of time as determined by the MDCC, generally four years for employee awards and one year for nonemployee directors. Restricted stock awards entitle the recipient to full dividend and voting rights beginning on the date of grant. Non-vested shares are restricted as to disposition and subject to forfeiture under certain circumstances. At the date of award each share of restricted stock is credited to common stock at par value. The fair value of restricted stock, calculated under the intrinsic value method at the date of award, is charged to income as compensation expense generally over the vesting period with a corresponding credit to additional paid-in capital. | ||||||||||||
During 2014, we awarded 0.3 million restricted stock units (RSUs) to retirement-eligible employees. These awards vest over a specified period of time as determined by the Management Development and Compensation Committee of our Board of Directors (MDCC) and are compensatory in nature. The RSUs continue to vest, but do not accelerate, on the scheduled vesting dates into retirement subject to the employee's compliance with certain post-employment covenants. Due to the continued vesting provisions of the RSUs into retirement, the Company recognized all of the stock compensation expense associated with the RSUs in 2014, approximately $25 million pretax, $17 million after-tax, rather than over the vesting period of the awards. | ||||||||||||
Restricted stock activity was as follows: | ||||||||||||
Shares | Weighted-Average | |||||||||||
(in thousands) | Grant Date | |||||||||||
Fair Value | ||||||||||||
Outstanding at December 31, 2011 | 5,539 | $ | 50.38 | |||||||||
Granted | 2,370 | 50.38 | ||||||||||
Vested | (1,733 | ) | 51.78 | |||||||||
Forfeited | (338 | ) | 50.07 | |||||||||
Outstanding at December 31, 2012 | 5,838 | 49.98 | ||||||||||
Granted | 1,855 | 67.46 | ||||||||||
Vested | (1,708 | ) | 48.93 | |||||||||
Forfeited | (648 | ) | 52.39 | |||||||||
Outstanding at December 31, 2013 | 5,337 | 56.1 | ||||||||||
Granted | 1,355 | 96.84 | ||||||||||
Vested | (1,648 | ) | 51.3 | |||||||||
Forfeited | (526 | ) | 58.74 | |||||||||
Outstanding at December 31, 2014 | 4,518 | $ | 69.76 | |||||||||
Long-term Performance Plan (LTPP) | ||||||||||||
In 2004, we established the LTPP, which provides for restricted stock unit awards granted from our stock plans to our senior leadership. These awards vest at the end of a three-year performance cycle based upon the achievement of specific pre-established levels of performance. | ||||||||||||
The performance goals for the three outstanding performance cycles at December 31, 2014, are independent of each other and based on three metrics, as defined in the award agreements: return on invested capital (ROIC), weighted at 50%; total shareholder return (TSR) relative to a peer group, weighted at 25%; and cumulative free cash flow from continuing operations (CFCF), weighted at 25%. | ||||||||||||
The ultimate award, which is determined at the end of each of the three-year performance cycles, can range from zero to 200% of the target award and also includes dividend equivalents, which are not included in the table below. Compensation expense for the awards is recognized over the performance period based upon the value determined under the intrinsic value method for the CFCF and ROIC portions of the award and the Monte Carlo simulation method for the TSR portion of the award using historic volatility. Compensation expense for the CFCF and ROIC portions of the awards will be adjusted based upon the expected achievement of those performance goals. | ||||||||||||
LTPP activity related to the expected units was as follows: | ||||||||||||
Units | Weighted-Average | |||||||||||
(in thousands) | Grant Date | |||||||||||
Fair Value | ||||||||||||
Outstanding at December 31, 2011 | 991 | $ | 50.07 | |||||||||
Granted | 484 | 50.83 | ||||||||||
Increase | 407 | 53.32 | ||||||||||
Vested | (462 | ) | 46.04 | |||||||||
Outstanding at December 31, 2012 | 1,420 | 52.57 | ||||||||||
Granted | 402 | 61.38 | ||||||||||
Increase | 398 | 53.86 | ||||||||||
Vested | (383 | ) | 55.74 | |||||||||
Forfeited | (10 | ) | 51.22 | |||||||||
Outstanding at December 31, 2013 | 1,827 | 54.13 | ||||||||||
Granted | 280 | 97.59 | ||||||||||
Increase | 99 | 39.5 | ||||||||||
Vested | (664 | ) | 52.33 | |||||||||
Forfeited | (134 | ) | 75.8 | |||||||||
Outstanding at December 31, 2014 | 1,408 | $ | 60.53 | |||||||||
The increase above relates to changes in the amount of expected awards as achievement is measured against performance goals. | ||||||||||||
Stock Options | ||||||||||||
In 2004, we changed the primary form of our broad-based equity compensation from stock options to restricted stock. There have been no stock options granted since 2005. | ||||||||||||
The aggregate intrinsic value of options outstanding at December 31, 2014, 2013 and 2012 was less than $1 million, $3 million and $23 million, respectively. The total intrinsic value of options exercised in the years ended December 31, 2014, 2013 and 2012 was $3 million, $21 million and $38 million, respectively. | ||||||||||||
As of December 31, 2014 and December 31, 2013, there were 2 thousand and 52 thousand outstanding options, respectively, all of which were fully vested and exercisable. No options vested during the years ended December 31, 2014 and December 31, 2013. |
Pension_and_Other_Employee_Ben
Pension and Other Employee Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ||||||||||||||||||||
Pension and Other Employee Benefits | Pension and Other Employee Benefits | |||||||||||||||||||
We have pension plans covering the majority of our employees, including certain employees in foreign countries (Pension Benefits). Our primary pension obligations relate to our domestic IRS qualified pension plans. We also provide certain health care and life insurance benefits to retired employees and to eligible employees upon retirement through other postretirement benefit plans (Other Benefits). | ||||||||||||||||||||
The fair value of plan assets for our domestic and foreign Pension Benefits plans was as follows: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Domestic Pension Benefits plan | $ | 19,352 | $ | 18,822 | ||||||||||||||||
Foreign Pension Benefits plan | 868 | 806 | ||||||||||||||||||
We maintain a defined contribution plan that includes a 401(k) plan. Covered employees hired or rehired after January 1, 2007, are eligible for a Company contribution based on age and service, instead of participating in our pension plans. These and other covered employees are eligible to contribute up to a specific percentage of their pay to the 401(k) plan. We match the employee’s contribution, generally up to 3% or 4% of the employee’s pay, which is invested in the same way as employee contributions. Total expense for our contributions was $274 million, $279 million and $272 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
At December 31, 2014 and December 31, 2013, there was $14.9 billion and $14.4 billion invested in our defined contribution plan, respectively. At December 31, 2014 and December 31, 2013, $1.4 billion of these amounts were invested in our stock fund. | ||||||||||||||||||||
We also sponsor nonqualified defined benefit and defined contribution plans to provide benefits in excess of qualified plan limits. We have set aside certain assets in a separate trust, which we expect to be used to pay for trust obligations. The fair value of marketable securities held in trust, which are considered Level 1 assets under the fair value hierarchy, consisted of the following at December 31: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Marketable securities held in trust | $ | 519 | $ | 479 | ||||||||||||||||
Included in marketable securities held in trust in the table above was $328 million and $304 million at December 31, 2014 and December 31, 2013, respectively, related to the nonqualified defined contribution plans. The liabilities related to the nonqualified defined contribution plans were $327 million and $300 million at December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
We also maintain additional contractual pension benefits agreements for certain executive officers. The liability associated with such agreements was $39 million and $34 million at December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
Contributions and Benefit Payments | ||||||||||||||||||||
We may make both required and discretionary contributions to our pension plans. Required contributions are primarily determined in accordance with the Pension Protection Act (PPA), which amended the Employee Retirement Income Security Act of 1974 (ERISA) rules and are affected by the actual return on plan assets and plan funded status. The funding requirements under the PPA require us to fully fund our pension plans over a rolling seven-year period as determined annually based upon the funded status at the beginning of the year. | ||||||||||||||||||||
In July 2012, the Surface Transportation Extension Act, which is also referred to as the Moving Ahead for Progress in the 21st Century Act (STE Act), was passed by Congress and signed by the President. The STE Act includes a provision for temporary pension funding relief due to the low interest rate environment. The provision adjusts the 24-month average high quality corporate bond rates used to determine the PPA funded status so that they are within a floor and cap, or “corridor,” based on the 25-year average of corporate bond rates. The STE Act gradually phases out this interest rate provision beginning in 2013. In August 2014, the pension provisions of the STE Act were extended as part of the Highway and Transportation Funding Act of 2014 (HATFA). As a result, the interest rates used to determine PPA funded status will continue to be adjusted within a “corridor” and do not begin to phase out until 2018. The HATFA impacts CAS expense as well because CAS Harmonization incorporates the PPA interest rate into CAS calculations. | ||||||||||||||||||||
We made the following contributions to our pension and other postretirement benefit plans during the years ended December 31: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Required pension contributions | $ | 650 | $ | 778 | $ | 721 | ||||||||||||||
Discretionary pension contributions | 600 | 300 | 500 | |||||||||||||||||
Other postretirement benefit contributions | 20 | 22 | 19 | |||||||||||||||||
Total | $ | 1,270 | $ | 1,100 | $ | 1,240 | ||||||||||||||
We periodically evaluate whether to make additional discretionary contributions. We expect to make required contributions of approximately $335 million and $25 million to our pension and other postretirement benefit plans, respectively, in 2015. | ||||||||||||||||||||
The table below reflects the total Pension Benefits expected to be paid from the plans or from our assets, including both our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. Other Benefit payments reflect our portion only. | ||||||||||||||||||||
(In millions) | Pension | Other | ||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
2015 | $ | 1,782 | $ | 59 | ||||||||||||||||
2016 | 1,759 | 58 | ||||||||||||||||||
2017 | 1,724 | 57 | ||||||||||||||||||
2018 | 1,660 | 56 | ||||||||||||||||||
2019 | 1,410 | 55 | ||||||||||||||||||
Thereafter (next 5 years) | 7,786 | 264 | ||||||||||||||||||
Defined Benefit Retirement Plan Summary Financial Information | ||||||||||||||||||||
The tables below outline the components of net periodic benefit expense (income) and related actuarial assumptions of our domestic and foreign Pension Benefits and Other Benefits plans. | ||||||||||||||||||||
Components of Net Periodic Pension Expense (Income) | Pension Benefits | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 448 | $ | 579 | $ | 516 | ||||||||||||||
Interest cost | 1,128 | 996 | 1,047 | |||||||||||||||||
Expected return on plan assets | (1,580 | ) | (1,495 | ) | (1,422 | ) | ||||||||||||||
Amounts reflected in net funded status | (4 | ) | 80 | 141 | ||||||||||||||||
Amortization of prior service cost included in net periodic pension expense | 7 | 9 | 10 | |||||||||||||||||
Recognized net actuarial loss | 891 | 1,150 | 939 | |||||||||||||||||
Loss due to curtailments/settlements | 1 | 1 | 3 | |||||||||||||||||
Amounts reclassified during the year | 899 | 1,160 | 952 | |||||||||||||||||
Net periodic pension expense (income) | $ | 895 | $ | 1,240 | $ | 1,093 | ||||||||||||||
Net periodic pension expense (income) also includes income from foreign Pension Benefits plans of $9 million in 2014, and expense of $4 million and $7 million in 2013 and 2012, respectively. | ||||||||||||||||||||
Components of Net Periodic Postretirement Expense (Income) | Other Benefits | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 6 | $ | 8 | $ | 8 | ||||||||||||||
Interest cost | 35 | 32 | 38 | |||||||||||||||||
Expected return on plan assets | (33 | ) | (32 | ) | (31 | ) | ||||||||||||||
Amounts reflected in net funded status | 8 | 8 | 15 | |||||||||||||||||
Amortization of transition obligation | — | — | 1 | |||||||||||||||||
Amortization of prior service cost included in net periodic postretirement expense | (1 | ) | (2 | ) | (3 | ) | ||||||||||||||
Recognized net actuarial loss | 1 | 4 | 3 | |||||||||||||||||
Amounts reclassified during the year | — | 2 | 1 | |||||||||||||||||
Net periodic postretirement expense (income) | $ | 8 | $ | 10 | $ | 16 | ||||||||||||||
Funded Status – Amounts Recognized on our Balance Sheets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) December 31: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Noncurrent assets | $ | 28 | $ | 119 | $ | — | $ | — | ||||||||||||
Current liabilities | (98 | ) | (74 | ) | (12 | ) | (13 | ) | ||||||||||||
Noncurrent liabilities | (6,359 | ) | (3,387 | ) | (352 | ) | (288 | ) | ||||||||||||
Net amount recognized on our balance sheets | $ | (6,429 | ) | $ | (3,342 | ) | $ | (364 | ) | $ | (301 | ) | ||||||||
Reconciliation of Amounts Recognized on our Balance Sheets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) December 31: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||||||||
Prior service (cost) credit | $ | (18 | ) | $ | (13 | ) | $ | 4 | $ | 5 | ||||||||||
Net loss | (11,325 | ) | (7,892 | ) | (98 | ) | (23 | ) | ||||||||||||
Accumulated other comprehensive loss | (11,343 | ) | (7,905 | ) | (94 | ) | (18 | ) | ||||||||||||
Accumulated contributions in excess (below) net periodic benefit or | 4,914 | 4,563 | (270 | ) | (283 | ) | ||||||||||||||
cost | ||||||||||||||||||||
Net amount recognized on our balance sheets | $ | (6,429 | ) | $ | (3,342 | ) | $ | (364 | ) | $ | (301 | ) | ||||||||
Sources of Change in Accumulated Other Comprehensive Loss | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Prior service (cost) credit arising during period | $ | (11 | ) | $ | — | $ | — | $ | — | |||||||||||
Amortization of prior service cost (credit) included in net income | 7 | 9 | (1 | ) | (2 | ) | ||||||||||||||
Net change in prior service (cost) credit not recognized in net | (4 | ) | 9 | (1 | ) | (2 | ) | |||||||||||||
income during that period | ||||||||||||||||||||
Actuarial gain (loss) arising during period | (4,334 | ) | 2,869 | (76 | ) | 96 | ||||||||||||||
Amortization of net actuarial (gain) loss included in net income | 891 | 1,150 | 1 | 4 | ||||||||||||||||
Net change in actuarial gain (loss) not included in net income | (3,443 | ) | 4,019 | (75 | ) | 100 | ||||||||||||||
during the period | ||||||||||||||||||||
Effect of exchange rates | 9 | 2 | — | — | ||||||||||||||||
Total change in accumulated other comprehensive loss during period | $ | (3,438 | ) | $ | 4,030 | $ | (76 | ) | $ | 98 | ||||||||||
The amounts in accumulated other comprehensive loss at December 31, 2014 expected to be recognized as components of net periodic benefit cost in 2015 are as follows: | ||||||||||||||||||||
Adjustments to Accumulated Other Comprehensive Loss (in millions) | Pension Benefits | Other Benefits | ||||||||||||||||||
Amortization of net loss | $ | (1,129 | ) | $ | (2 | ) | ||||||||||||||
Amortization of prior service (cost) credit | (7 | ) | 1 | |||||||||||||||||
Total | $ | (1,136 | ) | $ | (1 | ) | ||||||||||||||
The projected benefit obligation (PBO) represents the present value of Pension Benefits earned through the end of the year, with allowance for future salary increases. The accumulated benefit obligation (ABO) is similar to the PBO, but does not provide for future salary increases. The PBO, ABO and asset values for our domestic qualified pension plans were as follows: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
PBO for domestic qualified pension plans | $ | 24,767 | $ | 21,396 | ||||||||||||||||
ABO for domestic qualified pension plans | 22,570 | 19,595 | ||||||||||||||||||
Asset values for domestic qualified pension plans | 19,352 | 18,822 | ||||||||||||||||||
The PBO and fair value of plans assets for Pension Benefits plans with PBOs in excess of plan assets were $25,916 million and $19,459 million, respectively, at December 31, 2014 and $21,529 million and $18,068 million, respectively, at December 31, 2013. | ||||||||||||||||||||
The ABO and fair value of plan assets for Pension Benefits plans with ABOs in excess of plan assets were $23,520 million and $19,406 million, respectively, at December 31, 2014 and $18,980 million and $17,425 million, respectively, at December 31, 2013. The ABO for all Pension Benefits plans was $24,298 million and $21,050 million at December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
The tables below provide a reconciliation of benefit obligations, plan assets, funded status and related actuarial assumptions of our domestic and foreign Pension Benefits and Other Benefits plans. | ||||||||||||||||||||
Change in Projected Benefit Obligation | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Projected benefit obligation at beginning of year | $ | 22,970 | $ | 24,657 | $ | 732 | $ | 818 | ||||||||||||
Service cost | 448 | 579 | 6 | 8 | ||||||||||||||||
Interest cost | 1,128 | 996 | 35 | 32 | ||||||||||||||||
Plan participants’ contributions | 12 | 15 | 50 | 43 | ||||||||||||||||
Amendments | 12 | — | — | — | ||||||||||||||||
Plan curtailments/settlements | (4 | ) | (6 | ) | — | — | ||||||||||||||
Actuarial loss (gain) | 4,007 | (1,798 | ) | 67 | (70 | ) | ||||||||||||||
Foreign exchange loss (gain) | (42 | ) | — | — | — | |||||||||||||||
Benefits paid | (1,882 | ) | (1,473 | ) | (108 | ) | (99 | ) | ||||||||||||
Projected benefit obligation at end of year | $ | 26,649 | $ | 22,970 | $ | 782 | $ | 732 | ||||||||||||
The PBO for our domestic and foreign Pension Benefits plans was $25,745 million and $904 million, respectively at December 31, 2014 and $22,157 million and $813 million, respectively, at December 31, 2013. | ||||||||||||||||||||
Change in Plan Assets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 19,628 | $ | 17,450 | $ | 431 | $ | 408 | ||||||||||||
Actual return (loss) on plan assets | 1,254 | 2,563 | 25 | 57 | ||||||||||||||||
Company contributions | 1,250 | 1,078 | 20 | 22 | ||||||||||||||||
Plan participants’ contributions | 12 | 15 | 50 | 43 | ||||||||||||||||
Plan settlements | (4 | ) | (6 | ) | — | — | ||||||||||||||
Foreign exchange gain (loss) | (38 | ) | 1 | — | — | |||||||||||||||
Benefits paid | (1,882 | ) | (1,473 | ) | (108 | ) | (99 | ) | ||||||||||||
Fair value of plan assets at end of year | $ | 20,220 | $ | 19,628 | $ | 418 | $ | 431 | ||||||||||||
Retirement Plan Assumptions | ||||||||||||||||||||
Weighted-Average Net Periodic Benefit Cost Assumptions | Pension Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.06 | % | 4.15 | % | 5 | % | ||||||||||||||
Expected long-term rate of return on plan assets | 8.67 | % | 8.67 | % | 8.68 | % | ||||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | |||||||||||||||||
Average | 4.4 | % | 4.4 | % | 4.4 | % | ||||||||||||||
Weighted-Average Net Periodic Benefit Cost Assumptions | Other Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.01 | % | 4 | % | 5 | % | ||||||||||||||
Expected long-term rate of return on plan assets | 8.24 | % | 8.24 | % | 8.25 | % | ||||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | |||||||||||||||||
Average | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||
Health care trend rate in the next year | 4 | % | 4 | % | 4 | % | ||||||||||||||
Gradually declining to an ultimate trend rate | 4 | % | 4 | % | 4 | % | ||||||||||||||
Year that the rate reaches ultimate trend rate | * | * | * | |||||||||||||||||
* Currently at the ultimate trend rate. | ||||||||||||||||||||
Weighted-Average Year-End Benefit Obligation Assumptions | Pension Benefits | Other Benefits | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.06 | % | 5.06 | % | 4.05 | % | 5.01 | % | ||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | 2% -7% | ||||||||||||||||
Average | 4.4 | % | 4.39 | % | 4.5 | % | 4.5 | % | ||||||||||||
Health care trend rate in the next year | 4 | % | 4 | % | ||||||||||||||||
Gradually declining to an ultimate trend rate of | 4 | % | 4 | % | ||||||||||||||||
Year that the rate reaches the ultimate trend rate | * | * | ||||||||||||||||||
* Currently at the ultimate trend rate. | ||||||||||||||||||||
The weighted-average year-end benefit obligation discount rate for our domestic Pension Benefits plans was 4.08% and 5.08% at December 31, 2014 and December 31, 2013, respectively. Our foreign Pension Benefits plan assumptions have been included in the Pension Benefits assumptions in the table above. | ||||||||||||||||||||
The long-term ROA represents the average rate of earnings expected over the long term on the assets invested to provide for anticipated future benefit payment obligations. The long-term ROA used to calculate net periodic pension cost is set annually at the beginning of each year. Given the long-term nature of the ROA assumption, which we believe should not be solely reactive to short-term market conditions that may not persist, we expect the long-term ROA to remain unchanged unless there are significant changes in our investment strategy, the underlying economic assumptions, or other major factors. To establish our long-term ROA assumption, we employ a “building block” approach. As part of our annual process for determining whether it is appropriate to change our long-term ROA assumption, we first review the existing long-term ROA assumption against a statistically determined reasonable range of outcomes. For purposes of determining the long-term ROA assumption for 2014 and prior, we considered this range to be between the 25th and 75th percentile likelihood of achieving a long-term return over future years (consistent with Actuarial Standard of Practice No. 27 in effect at the time). Therefore, it is less than 25 percent likely that the long-term return of the pension plan would fall below or above the 25th and 75th percentiles points, respectively (i.e., it is 50 percent likely that the long-term return of the pension plan will be within the 25th and 75th percentile range). The building block approach and the reasonable range of outcomes are based upon our asset allocation assumptions and long-term capital market assumptions. Such assumptions incorporate the economic outlook for various asset classes over short- and long-term periods and also take into consideration other factors, including historical market performance, inflation and interest rates. The reasonable range of long-term returns that was used to validate the long-term ROA assumption for the calculation of the net periodic benefit cost for 2014, 2013 and 2012, are shown below. | ||||||||||||||||||||
Percentile | 2014 | 2013 | 2012 | |||||||||||||||||
25th | 5.53 | % | 5.62 | % | 6.15 | % | ||||||||||||||
75th | 9.65 | % | 9.41 | % | 9.84 | % | ||||||||||||||
Our long-term domestic ROA of 8.75% fell between the 60th–65th percentile, 65th–70th percentile and 60th–65th percentile of the reasonable range for 2014, 2013 and 2012 respectively. The 50th percentile of the reasonable range used to develop each of the 2014, 2013 and 2012 long-term ROA was 7.59%, 7.51% and 7.99%, respectively. | ||||||||||||||||||||
Once our long-term ROA has been determined, we review historical averages and patterns of returns to confirm reasonability of our long-term ROA assumption compared to past results. While history is not solely indicative of future market expectations, it does provide insight into general historical trends and long-term asset performance. In validating the 2014 long-term ROA assumption, we reviewed our pension plan asset performance since 1986. Our average annual actual rate of return since 1986 of 9.19%, determined on an arithmetic basis, exceeds our estimated 8.75% assumed return. Arithmetic annual averages represent the simple average returns over independent annual periods, whereas geometric returns reflect the compound average returns of dependent annual periods. The average annual actual return on a geometric basis for the same period was 8.50%. In addition, the actual annual returns have exceeded our long-term ROA assumption of 8.75% in six of the past ten years. Because our 2014 long-term ROA assumption of 8.75% for our domestic pension plans was within the reasonable range and our historical trends and averages did not indicate a trend or pattern of returns significantly above or below our existing assumption, we determined our long-term ROA assumption for our domestic pension plans in 2014 would remain at 8.75%, consistent with our 2013 assumption. | ||||||||||||||||||||
Our domestic pension plans’ actual rates of return were approximately 6%, 15% and 12% for 2014, 2013 and 2012, respectively. The difference between the actual rate of return and our long-term ROA assumption is included in deferred losses. | ||||||||||||||||||||
The long-term ROA assumptions for foreign Pension Benefits plans are based on the asset allocations and the economic environment prevailing in the locations where the Pension Benefits plans reside. Foreign pension assets do not make up a significant portion of the total assets for all of our Pension Benefits plans. | ||||||||||||||||||||
For purposes of determining pension expense under GAAP, a “corridor” approach may be elected and applied in the recognition of asset and liability gains or losses which limits expense recognition to the net outstanding gains and losses in excess of the greater of 10 percent of the projected benefit obligation or the calculated "market-related value" of assets. We do not use a “corridor” approach in the calculation of FAS expense. | ||||||||||||||||||||
The effect of a 1% increase or decrease in the assumed health care trend rate for each future year for the aggregate of service cost and interest cost is less than $1 million and for the accumulated postretirement benefit obligation is a $7 million increase or decrease. | ||||||||||||||||||||
Plan Assets | ||||||||||||||||||||
Substantially all our domestic Pension Benefits Plan (Plan) assets, which consist of investments in cash and cash equivalents, publicly traded U.S. and international equity securities, private equity funds, private real estate funds, fixed-income securities, commingled funds and other investments such as insurance contracts and derivatives, are held in a master trust, which was established for the investment of assets of our Company-sponsored retirement plans. The assets of the master trust are overseen by our Investment Committee comprised of members of senior management drawn from appropriate diversified levels of the executive management team. | ||||||||||||||||||||
The Investment Committee is responsible for setting the policy that provides the framework for management of the Plan assets. In accordance with its responsibilities and charter, the Investment Committee meets on a regular basis to review the performance of the Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification and total investment return over the long term while maintaining sufficient liquidity to pay the benefits of the Plan. Asset allocation ranges are set to produce the highest return on investment taking into account investment risks that are prudent and reasonable given prevailing market conditions. In developing the asset allocation ranges, third-party asset allocation studies are periodically performed that consider the current and expected positions of the plan assets and funded status. Based on these studies and other appropriate information, the Investment Committee establishes asset allocation ranges taking into account acceptable risk targets and associated returns. | ||||||||||||||||||||
The investment policy asset allocation ranges for the Plan, as set by the Investment Committee, for the year ended December 31, 2014 were as follows: | ||||||||||||||||||||
Asset Category | ||||||||||||||||||||
Global equity (combined U.S. and international equity) | 40%–60% | |||||||||||||||||||
U.S. equities | 25%–40% | |||||||||||||||||||
International equities | 15%–25% | |||||||||||||||||||
Fixed-income securities | 25%–40% | |||||||||||||||||||
Cash and cash equivalents | 1%–10% | |||||||||||||||||||
Private equity and private real estate | 3%–20% | |||||||||||||||||||
Other (including absolute return funds) | 5%–20% | |||||||||||||||||||
The Investment Committee appoints the investment fiduciary, who is responsible for making investment decisions within the framework of the Investment Policy, setting the long-term target allocation within the investment policy asset allocation ranges and for supervising the internal pension investment team. The pension investment team is comprised of experienced financial managers, who are all employees of the Company. The investment fiduciary reports back to the Investment Committee. During times of unusual market conditions, the investment fiduciary may seek authorization from the Investment Committee to change the investing allocation ranges to reasonably limit excessive volatility or other undesirable consequences. | ||||||||||||||||||||
Taking into account the asset allocation ranges, the investment fiduciary determines the specific allocation of the Plan’s investments within various asset classes. The Plan utilizes select investment strategies which are executed through separate account or fund structures with external investment managers who demonstrate experience and expertise in the appropriate asset classes and styles. The selection of investment managers is done with careful evaluation of all aspects of performance and risk, due diligence of internal operations and controls, reputation, systems evaluation and a review of investment managers' policies and processes. The Plan also utilizes funds that track an index and are highly liquid. Investment performance is monitored frequently against appropriate benchmarks and tracked to compliance guidelines with the assistance of third-party performance evaluation tools and metrics. | ||||||||||||||||||||
Consistent with the objective of maximizing return while minimizing risk, multiple investment strategies are employed to diversify risk such that no single investment or manager holding presents a significant exposure to the total investment portfolio. Plan assets are invested in numerous diversified strategies with the intent to minimize correlations. This allows for diversification of returns. Plan assets can be invested in funds that track an index and are designed to achieve diversification across the related indices. The Plan had $4 billion invested in such funds across four indices as of December 31, 2014. Other than funds that track an index, no individual investment strategy represented more than 5% of the Plan as of December 31, 2014. Further, within each separate account strategy, guidelines are established which set forth the list of authorized investments, the typical portfolio characteristics and diversification required by limiting the amount that can be invested by sector, country and issuer. | ||||||||||||||||||||
The Plan’s investments are stated at fair value. Investments in equity securities (common and preferred) are valued at the last reported sales price when an active market exists. Investments in fixed-income securities are generally valued using methods based upon market transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Investments in private equity funds and private real estate funds are estimated at fair market value which primarily utilizes net asset values reported by the investment manager or fund administrator. We review independently-appraised values, audited financial statements and additional pricing information to evaluate the net asset values. For the limited group of securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value, additional information is obtained from the investment manager and evaluated internally to determine whether any adjustments are required to reflect fair value. | ||||||||||||||||||||
The fair value of our Plan assets by asset category and by level (as described in "Note 1: Summary of Significant Accounting Policies") at December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
U.S. equities | ||||||||||||||||||||
All capitalization(1) | $ | 6,833 | $ | 3,268 | $ | 3,565 | $ | — | ||||||||||||
International equities | ||||||||||||||||||||
Developed markets(1) | 2,398 | 1,452 | 946 | — | ||||||||||||||||
Emerging markets(1) | 394 | 297 | 97 | — | ||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
U.S. Government and agency securities | 112 | 104 | 8 | — | ||||||||||||||||
Corporate debt securities/instruments | ||||||||||||||||||||
Investment grade bonds(2) | 2,424 | — | 2,424 | — | ||||||||||||||||
Non-investment grade bonds(2) | 248 | — | 248 | — | ||||||||||||||||
Emerging market debt | — | — | — | — | ||||||||||||||||
Core fixed-income(3) | 1,215 | 1,098 | 117 | — | ||||||||||||||||
Global multi-sector fixed-income(4) | 456 | 456 | — | — | ||||||||||||||||
Fixed-income hedge funds(5) | 112 | — | 110 | 2 | ||||||||||||||||
Securitized(6) | 1,006 | — | 765 | 241 | ||||||||||||||||
Convertible(7) | 161 | 161 | — | — | ||||||||||||||||
Cash and cash equivalents(8) | 820 | 558 | 262 | — | ||||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds(9) | ||||||||||||||||||||
Relative value(10) | 432 | — | 182 | 250 | ||||||||||||||||
Event driven(11) | 387 | — | 157 | 230 | ||||||||||||||||
Equity hedge(12) | 319 | — | 267 | 52 | ||||||||||||||||
Macro(13) | — | — | — | — | ||||||||||||||||
Multi-strategy(14) | 322 | — | 148 | 174 | ||||||||||||||||
Private equity funds(15) | 938 | — | — | 938 | ||||||||||||||||
Private real estate funds | 692 | — | 275 | 417 | ||||||||||||||||
Insurance contracts | 28 | — | — | 28 | ||||||||||||||||
Other(16) | 55 | — | — | 55 | ||||||||||||||||
Total | $ | 19,352 | $ | 7,394 | $ | 9,571 | $ | 2,387 | ||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
U.S. equities | ||||||||||||||||||||
All capitalization(1) | $ | 6,647 | $ | 2,805 | $ | 3,842 | $ | — | ||||||||||||
International equities | ||||||||||||||||||||
Developed markets(1) | 3,136 | 2,225 | 911 | — | ||||||||||||||||
Emerging markets(1) | 488 | 393 | 95 | — | ||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
U.S. Government and agency securities | 93 | 93 | — | — | ||||||||||||||||
Corporate debt securities/instruments | ||||||||||||||||||||
Investment grade bonds(2) | 1,477 | — | 1,477 | — | ||||||||||||||||
Non-investment grade bonds(2) | 427 | — | 427 | — | ||||||||||||||||
Emerging market debt | 51 | 51 | — | — | ||||||||||||||||
Core fixed-income(3) | 1,326 | 1,228 | 98 | — | ||||||||||||||||
Global multi-sector fixed-income(4) | 97 | 97 | — | — | ||||||||||||||||
Fixed-income hedge funds(5) | 171 | — | 164 | 7 | ||||||||||||||||
Securitized(6) | 754 | — | 754 | — | ||||||||||||||||
Convertible(7) | 207 | 207 | — | — | ||||||||||||||||
Cash and cash equivalents(8) | 1,239 | 561 | 678 | — | ||||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds(9) | ||||||||||||||||||||
Relative value(10) | 464 | — | 318 | 146 | ||||||||||||||||
Event driven(11) | 323 | — | 168 | 155 | ||||||||||||||||
Equity hedge(12) | 329 | — | 323 | 6 | ||||||||||||||||
Macro(13) | 201 | — | 191 | 10 | ||||||||||||||||
Multi-strategy(14) | 125 | — | — | 125 | ||||||||||||||||
Private equity funds(15) | 598 | — | — | 598 | ||||||||||||||||
Private real estate funds | 537 | — | 208 | 329 | ||||||||||||||||
Insurance contracts | 26 | — | — | 26 | ||||||||||||||||
Other(16) | 106 | — | — | 106 | ||||||||||||||||
Total | $ | 18,822 | $ | 7,660 | $ | 9,654 | $ | 1,508 | ||||||||||||
-1 | U.S. and International equities primarily include investments across the spectrum of large, medium and small market capitalization stocks. | |||||||||||||||||||
-2 | Investment grade bonds are fixed-income securities with a rating equivalent to a Standard & Poor's rating of BBB- or better. Non-investment grade bonds have a rating equivalent to a Standard & Poor's rating of BB+ or less. | |||||||||||||||||||
-3 | Core fixed-income securities are funds that invest primarily in intermediate-term high quality domestic bonds issued by various governmental or private sector entities. | |||||||||||||||||||
-4 | Global multi-sector fixed-income investments are funds that invest globally among several sectors including governments, investment grade corporate bonds, high yield corporate bonds and emerging market bonds. | |||||||||||||||||||
-5 | Fixed-income hedge funds can employ numerous strategies and seek to hedge some of the risk inherent in their investments by using a variety of methods, including short selling and derivative instruments. | |||||||||||||||||||
-6 | Securitized fixed-income securities pool together various cash flow producing financial assets that are structured in a way that can achieve desired targeted credit, maturity or other characteristics and are typically collateralized by residential mortgages, commercial mortgages and other assets. | |||||||||||||||||||
-7 | Convertible fixed-income securities are funds that invest in bonds that can be converted into a predetermined amount of the issuer's equity at certain times during the life of the bond, usually at the discretion of the bondholder. | |||||||||||||||||||
-8 | Cash and cash equivalents are invested in highly liquid money market funds. Included in cash and cash equivalents is excess cash in investment manager accounts. This cash is available for immediate use and is used to fund daily operations and execute the investment policy. This amount is not considered to be part of the cash target allocation set forth in the investment policy. | |||||||||||||||||||
-9 | Absolute return funds seek returns that are less volatile than long only funds under all market conditions. | |||||||||||||||||||
-10 | Relative value fund strategies seek to capture arbitrage opportunities created by price discrepancies between related equity, debt and derivative financial instruments while minimizing or neutralizing market risk. | |||||||||||||||||||
-11 | Event driven fund strategies seek to capture return opportunities created by special situations and corporate events tied to corporate merger and acquisition activity, restructuring, bankruptcy or financial distress. | |||||||||||||||||||
-12 | Equity hedge fund strategies invest in global public equity securities, equity related options and derivatives and employ short selling with the objective of generating higher risk-adjusted returns than traditional investments in equity. | |||||||||||||||||||
-13 | Macro fund strategies invest in futures, broad market indices and other financial instruments and seek to either generate positive returns regardless of market conditions or take advantage of global capital flows. | |||||||||||||||||||
-14 | Multi-strategy funds allocate investments tactically across all asset classes globally based upon relative valuations to achieve maximum returns. | |||||||||||||||||||
-15 | Private equity funds are predominantly invested in the U.S. and Western Europe. | |||||||||||||||||||
-16 | As of December 31, 2014 and December 31, 2013, this category included $55 million and $106 million of net receivables and payables which consisted primarily of pending trades, interest, dividends and other payable expenses. | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(In millions) | Beginning | Actual return | Purchases, | Transfers in and/or out of | Ending | |||||||||||||||
Balance at | on plan | issuances, | Level 3 | Balance at | ||||||||||||||||
Dec 31, | assets(1) | settlements | Dec 31, | |||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
Fixed-income hedge funds | $ | 7 | $ | 3 | $ | (8 | ) | $ | — | $ | 2 | |||||||||
Securitized | — | 46 | 195 | — | 241 | |||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds | ||||||||||||||||||||
Relative value | 146 | 8 | (4 | ) | 100 | 250 | ||||||||||||||
Event driven | 155 | 11 | 58 | 6 | 230 | |||||||||||||||
Equity hedge | 6 | 2 | 44 | — | 52 | |||||||||||||||
Macro | 10 | — | (10 | ) | — | — | ||||||||||||||
Multi-strategy | 125 | 19 | 30 | — | 174 | |||||||||||||||
Private equity funds | 598 | 65 | 275 | — | 938 | |||||||||||||||
Private real estate funds | 329 | 74 | 14 | — | 417 | |||||||||||||||
Insurance contracts | 26 | 2 | — | — | 28 | |||||||||||||||
Other | 106 | — | (51 | ) | — | 55 | ||||||||||||||
Total | $ | 1,508 | $ | 230 | $ | 543 | $ | 106 | $ | 2,387 | ||||||||||
(In millions) | Beginning | Actual return | Purchases, | Transfers in and/or out of | Ending | |||||||||||||||
Balance at | on plan | issuances, | Level 3 | Balance at | ||||||||||||||||
Dec 31, | assets(1) | settlements | Dec 31, | |||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
Fixed-income hedge funds | $ | 67 | $ | 39 | $ | (99 | ) | $ | — | $ | 7 | |||||||||
Securitized | — | — | — | — | — | |||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds | ||||||||||||||||||||
Relative value | — | 11 | 135 | — | 146 | |||||||||||||||
Event driven | 72 | 30 | 53 | — | 155 | |||||||||||||||
Equity hedge | 5 | 1 | — | — | 6 | |||||||||||||||
Macro | 32 | 1 | (23 | ) | — | 10 | ||||||||||||||
Multi-strategy | 80 | 13 | 32 | — | 125 | |||||||||||||||
Private equity funds | 397 | 85 | 116 | — | 598 | |||||||||||||||
Private real estate funds | 249 | 49 | 31 | — | 329 | |||||||||||||||
Insurance contracts | 25 | — | 1 | — | 26 | |||||||||||||||
Other | 192 | — | (86 | ) | — | 106 | ||||||||||||||
Total | $ | 1,119 | $ | 229 | $ | 160 | $ | — | $ | 1,508 | ||||||||||
-1 | The actual return on plan assets for assets still held at December 31, 2014 and December 31, 2013 was $170 million and $95 million, respectively. | |||||||||||||||||||
The Plan limits the use of derivatives through direct or separate account investments such that the derivatives used are liquid and able to be readily valued in the market. Derivative usage in separate account structures is limited to hedging purposes or to gain market exposure in a non-speculative manner. The fair market value of the Plan’s derivatives through direct or separate account investments was approximately $(7) million and $20 million as of December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
In addition, assets are held in trust for non-U.S. Pension Benefits plans, primarily in the U.K. and Canada, which are governed locally in accordance with specific jurisdictional requirements. These assets are overseen by local management in Canada and by trustees with a combination of members representing plan participants and local management in the U.K. Investments in the non-U.S. Pension Benefits plans consist primarily of fixed-income securities and equity securities and had a fair market value of $868 million and $806 million at December 31, 2014 and December 31, 2013, respectively. These investments are valued using quoted prices in active markets (Level 1) as well as significant observable inputs (Level 2). Investments with significant unobservable inputs (Level 3) are immaterial in the non-U.S. Pension Benefits plans. | ||||||||||||||||||||
The fair market value of assets related to our Other Benefits was $418 million and $431 million as of December 31, 2014 and December 31, 2013, respectively. These assets included $185 million and $189 million at December 31, 2014 and December 31, 2013, respectively, that were invested in the master trust described above and are therefore invested in the same assets described above. The remaining investments are held within Voluntary Employees’ Beneficiary Association (VEBA) trusts. The assets of the VEBA trusts are also overseen by the Investment Committee and managed by the same investment fiduciary that manages the master trust’s investments. These assets are generally invested in mutual funds, and are valued primarily using quoted prices in active markets (Level 1) as well as significant observable inputs (Level 2). There were no Level 3 investments in the VEBA trusts at December 31, 2014 or December 31, 2013. | ||||||||||||||||||||
The table below details assets by category for our VEBA trusts. These assets consist primarily of publicly-traded equity securities and publicly-traded fixed-income securities. | ||||||||||||||||||||
VEBA Trust Asset Information | Percent of Plan Assets at Dec 31: | |||||||||||||||||||
Asset category | 2014 | 2013 | ||||||||||||||||||
Fixed-income securities | 46 | % | 34 | % | ||||||||||||||||
U.S. equities | 41 | % | 41 | % | ||||||||||||||||
International equities | 10 | % | 21 | % | ||||||||||||||||
Cash and cash equivalents | 3 | % | 4 | % | ||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes | |||||||||||
The provision for federal and foreign income taxes consisted of the following: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Current income tax expense | ||||||||||||
Federal | $ | 837 | $ | 723 | $ | 753 | ||||||
Foreign | 13 | 17 | 32 | |||||||||
Deferred income tax expense (benefit) | ||||||||||||
Federal | (73 | ) | 36 | 74 | ||||||||
Foreign | 13 | 32 | 19 | |||||||||
Total | $ | 790 | $ | 808 | $ | 878 | ||||||
The expense for income taxes differs from the U.S. statutory rate due to the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Research and development (R&D) tax credit | (1.1 | ) | (1.8 | ) | — | |||||||
Tax settlements and refund claims | (0.5 | ) | (0.8 | ) | (0.8 | ) | ||||||
Domestic manufacturing deduction benefit | (2.7 | ) | (2.1 | ) | (1.9 | ) | ||||||
Tax benefit on foreign dividend | (2.8 | ) | — | — | ||||||||
Other, net | (1.4 | ) | (1.0 | ) | (0.7 | ) | ||||||
Effective tax rate | 26.5 | % | 29.3 | % | 31.6 | % | ||||||
In December 2014, Congress enacted legislation that reinstated the Research & Development (R&D) tax credit that was retroactive to the beginning of 2014. In the fourth quarter of 2014, we recorded a full year benefit of approximately $30 million related to the 2014 R&D tax credit. | ||||||||||||
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. We have participated in the IRS Compliance Assurance Process (CAP) program since 2011. We continue to participate in the CAP program for the 2013 and 2014 tax years. In the first quarter of 2014 the IRS completed the examination for the 2012 tax year, which completed all examinations through 2012. We are also under audit by multiple state and foreign tax authorities. | ||||||||||||
During 2013, the IRS completed its examination of our 2009 and 2012 tax years and we received final approval from the U.S. Congressional Joint Committee on Taxation of a refund claim related to the 2011 tax year. As a result of closing the federal audit examinations, our unrecognized tax benefits decreased by approximately $70 million, inclusive of interest, the majority of which did not impact our income from continuing operations. | ||||||||||||
During 2012, we received final approval from the IRS and the U.S. Congressional Joint Committee on Taxation of an IRS Appeals Division settlement for the 2006-2008 IRS examination cycle (2012 Tax Settlement). As a result, our unrecognized tax benefits decreased by approximately $24 million, inclusive of interest, all of which increased our income from continuing operations. | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Domestic income from continuing operations before taxes | $ | 2,868 | $ | 2,612 | $ | 2,630 | ||||||
Foreign income from continuing operations before taxes | 115 | 145 | 149 | |||||||||
At December 31, 2014, foreign earnings of approximately $384 million have been retained by foreign subsidiaries for reinvestment. In the first quarter of 2014, a foreign subsidiary authorized and completed a transaction which resulted in a taxable dividend of approximately $115 million. The transaction does not affect our indefinite reinvestment assertion because it generated a net tax benefit of approximately $80 million. No provision has been made for deferred taxes on undistributed earnings of non-U.S. subsidiaries as these earnings have been indefinitely invested or are expected to be remitted substantially free of additional tax. Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable because of the complexity of laws and regulations, the varying tax treatment of alternative repatriation scenarios, and the variation due to multiple potential assumptions relating to the timing of any future repatriation. | ||||||||||||
We made the following net tax payments during the years ended December 31: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Federal | $ | 705 | $ | 628 | $ | 826 | ||||||
Foreign | 19 | 22 | 13 | |||||||||
State | 35 | 39 | 78 | |||||||||
We believe that our income tax reserves are adequate; however, amounts asserted by taxing authorities could be greater or less than amounts accrued and reflected in our consolidated balance sheets. Accordingly, we could record adjustments to the amounts for federal, foreign and state tax-related liabilities in the future as we revise estimates or we settle or otherwise resolve the underlying matters. In the ordinary course of business, we may take new positions that could increase or decrease our unrecognized tax benefits in future periods. | ||||||||||||
The balance of unrecognized tax benefits, exclusive of interest, was $104 million and $118 million at December 31, 2014 and December 31, 2013, respectively, the majority of which would affect earnings if recognized. We accrue interest and penalties related to unrecognized tax benefits in tax expense. At December 31, 2014, December 31, 2013 and December 31, 2012, we had $6 million, $5 million and $17 million of interest accrued related to unrecognized tax benefits, which, net of the federal tax benefit, was approximately $4 million, $3 million and $11 million, respectively. | ||||||||||||
A rollforward of our unrecognized tax benefits was as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 118 | $ | 129 | $ | 167 | ||||||
Additions based on current year tax positions | 1 | 104 | 1 | |||||||||
Additions based on prior year tax positions | 10 | — | — | |||||||||
Reductions based on prior year tax positions | (25 | ) | (64 | ) | (39 | ) | ||||||
Settlements based on prior year tax positions | — | (51 | ) | — | ||||||||
Unrecognized tax benefits, end of year | $ | 104 | $ | 118 | $ | 129 | ||||||
It is reasonably possible that within the next 12 months our unrecognized tax benefits, exclusive of interest, may decrease by up to $100 million, as a result of resolving various issues in the currently open cycles, including the R&D tax credit. We expect that the majority of the decrease would affect the effective tax rate, if recognized. | ||||||||||||
We generally account for our state income tax expense as a deferred contract cost, as we can generally recover this expense through the pricing of our products and services to the U.S. Government. We include this deferred amount in contracts in process, net until allocated to our contracts, which generally occurs upon payment or when otherwise agreed as allocable with the U.S. Government. Net state income tax expense allocated to our contracts was $41 million, $42 million and $78 million in 2014, 2013 and 2012, respectively. We include state income tax expense allocated to our contracts in administrative and selling expenses. | ||||||||||||
Deferred income taxes consisted of the following at December 31: | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Current deferred tax assets (liabilities) | ||||||||||||
Accrued employee compensation and benefits | $ | 242 | $ | 240 | ||||||||
Other accrued expenses and reserves | 132 | 191 | ||||||||||
Contracts in process and inventories | (539 | ) | (513 | ) | ||||||||
Deferred income taxes-current | $ | (165 | ) | $ | (82 | ) | ||||||
Noncurrent deferred tax assets (liabilities) | ||||||||||||
Pension benefits | $ | 2,242 | $ | 934 | ||||||||
Other retiree benefits | 110 | 113 | ||||||||||
Net operating loss and tax credit carryforwards | 101 | 116 | ||||||||||
Depreciation and amortization | (1,337 | ) | (1,346 | ) | ||||||||
Other | 106 | (74 | ) | |||||||||
Deferred income taxes-noncurrent | $ | 1,222 | $ | (257 | ) | |||||||
As of December 31, 2014, we had foreign net operating loss carryforwards of approximately $392 million, of which $370 million was generated in the U.K. We believe that we will have sufficient taxable income to realize this deferred tax asset, as any net operating loss generated in the U.K. may be carried forward indefinitely. | ||||||||||||
The tax expense (benefit) related to discontinued operations was $23 million, $(5) million and $1 million in 2014, 2013 and 2012, respectively. |
Business_Segment_Reporting
Business Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Business Segment Reporting | Business Segment Reporting | |||||||||||
Our reportable segments, organized based on capabilities and technologies, are: IDS; IIS; MS; and SAS. | ||||||||||||
IDS is a leader in integrated air and missile defense; radar solutions; naval combat and ship electronic systems; command, control, communications, computers and intelligence (C4I) solutions; and international and domestic Air Traffic Management (ATM) systems. IDS delivers combat-proven performance against the complete spectrum of airborne and ballistic missile threats and is a world leader in the technology, development, and production of sensors and mission systems. | ||||||||||||
IIS provides a full range of technical and professional services to intelligence, defense, federal and commercial customers worldwide. IIS specializes in global Intelligence, Surveillance and Reconnaissance (ISR), navigation, DoD space and weather solutions, cybersecurity, analytics, training, logistics, mission support, and engineering and sustainment solutions. | ||||||||||||
MS is a premier developer and producer of missile and combat systems for the armed forces of the U.S. and other allied nations. Leveraging its capabilities in advanced airframes, guidance and navigation systems, high-resolution sensors, surveillance, targeting, and netted systems, MS develops and supports a broad range of advanced weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors and advanced combat sensor solutions. | ||||||||||||
SAS is a leader in the design and development of integrated sensor and communication systems for advanced missions, including traditional and non-traditional ISR, precision engagement, unmanned aerial operations, and space. Leveraging advanced concepts, state-of-the-art technologies and mission systems knowledge, SAS provides EO/IR sensors, airborne radars for surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems, processors, electronic warfare systems, communication systems, and space-qualified systems for civil and military applications. | ||||||||||||
Segment total net sales and operating income generally include intersegment sales and profit recorded at cost plus a specified fee, which may differ from what the selling entity would be able to obtain on sales to external customers. Corporate and Eliminations includes corporate expenses and intersegment sales and profit eliminations. Corporate expenses represent unallocated costs and certain other corporate costs not considered part of management’s evaluation of reportable segment operating performance. | ||||||||||||
Segment financial results were as follows: | ||||||||||||
Total Net Sales (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 6,085 | $ | 6,489 | $ | 6,492 | ||||||
Intelligence, Information and Services | 5,984 | 6,045 | 6,335 | |||||||||
Missile Systems | 6,309 | 6,599 | 6,639 | |||||||||
Space and Airborne Systems | 6,072 | 6,371 | 6,823 | |||||||||
Corporate and Eliminations | (1,624 | ) | (1,798 | ) | (1,875 | ) | ||||||
Total | $ | 22,826 | $ | 23,706 | $ | 24,414 | ||||||
Intersegment Sales (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 107 | $ | 107 | $ | 91 | ||||||
Intelligence, Information and Services | 829 | 817 | 784 | |||||||||
Missile Systems | 140 | 163 | 161 | |||||||||
Space and Airborne Systems | 548 | 711 | 839 | |||||||||
Total | $ | 1,624 | $ | 1,798 | $ | 1,875 | ||||||
Operating Income (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 974 | $ | 1,115 | $ | 1,047 | ||||||
Intelligence, Information and Services | 508 | 510 | 536 | |||||||||
Missile Systems | 800 | 830 | 861 | |||||||||
Space and Airborne Systems | 846 | 920 | 988 | |||||||||
FAS/CAS Adjustment | 286 | (249 | ) | (255 | ) | |||||||
Corporate and Eliminations | (235 | ) | (188 | ) | (188 | ) | ||||||
Total | $ | 3,179 | $ | 2,938 | $ | 2,989 | ||||||
We must calculate our pension and other postretirement benefits (PRB) costs under both Financial Accounting Standards (FAS) requirements under GAAP and U.S. Government Cost Accounting Standards (CAS). GAAP outlines the methodology used to determine pension expense or income for financial reporting purposes, which is not indicative of the funding requirements for pension and PRB plans that we determine by other factors. CAS prescribes the allocation to and recovery of pension and PRB costs on U.S. Government contracts. The results of each segment only include pension and PRB expense as determined under CAS. The CAS requirements for pension costs and its calculation methodology differ from the FAS requirements and calculation methodology. As a result, while both FAS and CAS use long-term assumptions in their calculation methodologies, each method results in different calculated amounts of pension and PRB cost. The FAS/CAS Adjustment, which is reported as a separate line in our segment results above, represents the difference between our pension and PRB expense or income under FAS in accordance with GAAP and our pension and PRB expense under CAS. | ||||||||||||
The components of the FAS/CAS Adjustment were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
FAS/CAS Pension Adjustment | $ | 281 | $ | (253 | ) | $ | (255 | ) | ||||
FAS/CAS PRB Adjustment | 5 | 4 | — | |||||||||
FAS/CAS Adjustment | $ | 286 | $ | (249 | ) | $ | (255 | ) | ||||
The components of operating income related to Corporate and Eliminations were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Intersegment profit eliminations | $ | (157 | ) | $ | (160 | ) | $ | (177 | ) | |||
Corporate | (78 | ) | (28 | ) | (11 | ) | ||||||
Total | $ | (235 | ) | $ | (188 | ) | $ | (188 | ) | |||
Intersegment Operating Income (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 8 | $ | 9 | $ | 8 | ||||||
Intelligence, Information and Services | 83 | 72 | 72 | |||||||||
Missile Systems | 14 | 17 | 24 | |||||||||
Space and Airborne Systems | 52 | 62 | 73 | |||||||||
Total | $ | 157 | $ | 160 | $ | 177 | ||||||
Capital Expenditures (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 99 | $ | 69 | $ | 67 | ||||||
Intelligence, Information and Services | 41 | 28 | 34 | |||||||||
Missile Systems | 56 | 55 | 66 | |||||||||
Space and Airborne Systems | 117 | 117 | 132 | |||||||||
Corporate | 13 | 11 | 40 | |||||||||
Total | $ | 326 | $ | 280 | $ | 339 | ||||||
Depreciation and Amortization (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 95 | $ | 96 | $ | 101 | ||||||
Intelligence, Information and Services | 57 | 62 | 65 | |||||||||
Missile Systems | 76 | 76 | 68 | |||||||||
Space and Airborne Systems | 168 | 158 | 161 | |||||||||
Corporate | 43 | 53 | 60 | |||||||||
Total | $ | 439 | $ | 445 | $ | 455 | ||||||
Total Assets (in millions) | 2014 | 2013 | ||||||||||
Integrated Defense Systems | $ | 4,128 | $ | 3,897 | ||||||||
Intelligence, Information and Services | 4,243 | 3,772 | ||||||||||
Missile Systems | 6,223 | 6,316 | ||||||||||
Space and Airborne Systems | 6,414 | 6,399 | ||||||||||
Corporate | 6,892 | 5,583 | ||||||||||
Total | $ | 27,900 | $ | 25,967 | ||||||||
Total Net Sales by Geographic Areas (in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 16,285 | $ | 17,260 | $ | 18,182 | ||||||
Asia/Pacific | 2,390 | 2,590 | 2,510 | |||||||||
Middle East and North Africa | 2,857 | 2,396 | 2,470 | |||||||||
All other (principally Europe) | 1,294 | 1,460 | 1,252 | |||||||||
Total | $ | 22,826 | $ | 23,706 | $ | 24,414 | ||||||
The following is a breakdown of net sales to major customers: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Sales to the U.S. Government(1) | $ | 16,083 | $ | 17,019 | $ | 17,861 | ||||||
Sales to the U.S. Department of Defense(1) | 15,059 | 16,015 | 16,818 | |||||||||
Total international sales(2) | 6,541 | 6,446 | 6,232 | |||||||||
Foreign direct commercial sales(1) | 3,579 | 3,384 | 3,036 | |||||||||
Foreign military sales through the U.S. Government | 2,962 | 3,062 | 3,196 | |||||||||
-1 | Excludes foreign military sales through the U.S. Government. | |||||||||||
-2 | Includes foreign military sales through the U.S. Government. | |||||||||||
Property, Plant and Equipment, net by Geographic Area (in millions) | 2014 | 2013 | ||||||||||
United States | $ | 1,847 | $ | 1,841 | ||||||||
All other (principally Europe) | 88 | 96 | ||||||||||
Total | $ | 1,935 | $ | 1,937 | ||||||||
Quarterly_Operating_Results
Quarterly Operating Results | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Operating Results (Unaudited) | |||||||||||||||
(In millions, except per share amounts, stock prices and workdays) | ||||||||||||||||
2014 | First(3) | Second | Third | Fourth | ||||||||||||
Total net sales | $ | 5,508 | $ | 5,701 | $ | 5,474 | $ | 6,143 | ||||||||
Gross margin | 1,347 | 1,400 | 1,303 | 1,481 | ||||||||||||
Income from continuing operations | 593 | 501 | 519 | 580 | ||||||||||||
Net income attributable to Raytheon Company | 596 | 551 | 515 | 582 | ||||||||||||
EPS from continuing operations attributable to Raytheon Company | ||||||||||||||||
common stockholders(1) | ||||||||||||||||
Basic | $ | 1.87 | $ | 1.59 | $ | 1.66 | $ | 1.86 | ||||||||
Diluted | 1.87 | 1.59 | 1.65 | 1.86 | ||||||||||||
EPS attributable to Raytheon Company common stockholders(1) | ||||||||||||||||
Basic | 1.89 | 1.76 | 1.66 | 1.88 | ||||||||||||
Diluted | 1.89 | 1.76 | 1.65 | 1.88 | ||||||||||||
Cash dividends per share | ||||||||||||||||
Declared | 0.605 | 0.605 | 0.605 | 0.605 | ||||||||||||
Paid | 0.55 | 0.605 | 0.605 | 0.605 | ||||||||||||
Common stock prices | ||||||||||||||||
High | $ | 101.31 | $ | 101.47 | $ | 103.35 | $ | 110.47 | ||||||||
Low | 88.13 | 94.08 | 89.43 | 93.85 | ||||||||||||
Workdays(2) | 62 | 64 | 63 | 60 | ||||||||||||
2013 | First(4) | Second | Third | Fourth | ||||||||||||
Total net sales | $ | 5,879 | $ | 6,115 | $ | 5,842 | $ | 5,870 | ||||||||
Gross margin | 1,274 | 1,362 | 1,308 | 1,230 | ||||||||||||
Income from continuing operations | 496 | 493 | 491 | 469 | ||||||||||||
Net income attributable to Raytheon Company | 488 | 488 | 489 | 531 | ||||||||||||
EPS from continuing operations attributable to Raytheon Company | ||||||||||||||||
common stockholders(1) | ||||||||||||||||
Basic | $ | 1.5 | $ | 1.5 | $ | 1.51 | $ | 1.46 | ||||||||
Diluted | 1.49 | 1.5 | 1.51 | 1.46 | ||||||||||||
EPS attributable to Raytheon Company common stockholders(1) | ||||||||||||||||
Basic | 1.49 | 1.5 | 1.52 | 1.66 | ||||||||||||
Diluted | 1.49 | 1.5 | 1.51 | 1.66 | ||||||||||||
Cash dividends per share | ||||||||||||||||
Declared | 0.55 | 0.55 | 0.55 | 0.55 | ||||||||||||
Paid | 0.5 | 0.55 | 0.55 | 0.55 | ||||||||||||
Common stock prices | ||||||||||||||||
High | $ | 59.01 | $ | 68.07 | $ | 80.69 | $ | 91.04 | ||||||||
Low | 52.67 | 56.22 | 64.82 | 73.97 | ||||||||||||
Workdays(2) | 63 | 64 | 63 | 59 | ||||||||||||
-1 | EPS is computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for each year. | |||||||||||||||
-2 | Number of workdays per our fiscal calendar, which excludes holidays and weekends. | |||||||||||||||
-3 | In January 2014, a foreign subsidiary authorized and completed a transaction which resulted in a taxable dividend of approximately $115 million and generated a net tax benefit of approximately $80 million, which is reflected in our first quarter of 2014 results. | |||||||||||||||
-4 | During the first quarter of 2013, we recorded a $25 million benefit for the 2012 research and development (R&D) tax credit. In January 2013, Congress approved legislation that included the extension of the R&D tax credit. The legislation retroactively reinstated the R&D tax credit for 2012 and extended it through December 31, 2013. As a result, we recorded the 2012 benefit in the first quarter of 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||
Consolidation and Classification [Policy Text Block] | Consolidation and Classification—The consolidated financial statements include the accounts of Raytheon Company, and all wholly-owned, majority-owned and otherwise controlled domestic and foreign subsidiaries. All intercompany transactions have been eliminated. For classification of certain current assets and liabilities, we use the duration of the related contract or program as our operating cycle, which is generally longer than one year. In addition, certain prior year amounts have been reclassified to conform with the current year presentation. As used in these notes, the terms “we”, “us”, “our”, “Raytheon” and the “Company” mean Raytheon Company and its subsidiaries, unless the context indicates another meaning. | |||||||||||||||||||
Use of Estimates [Policy Text Block] | Use of Estimates—Our consolidated financial statements are based on the application of U.S. Generally Accepted Accounting Principles (GAAP), which require us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our consolidated financial statements. | |||||||||||||||||||
Revenue Recognition [Policy Text Block] | Revenue Recognition—We use the percentage-of-completion accounting method to account for our long-term contracts associated with the design, development, manufacture, or modification of complex aerospace or electronic equipment and related services, such as certain cost-plus service contracts. Under this method, revenue is recognized based on the extent of progress towards completion of the long-term contract. Our analysis of these contracts also contemplates whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. We combine closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, we may segment a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. | |||||||||||||||||||
The selection of the method by which to measure progress towards completion of a contract also requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, materials and subcontractors costs, as well as an allocation of indirect costs. Revenues, including estimated fees or profits, are recorded as costs are incurred. Due to the nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion (the process for which we describe below in more detail) is complex and subject to many variables. Incentive and award fees generally are awarded at the discretion of the customer or upon achievement of certain program milestones or cost targets. Incentive and award fees, as well as penalties related to contract performance, are considered in estimating profit rates. Estimates of award fees are based on actual awards and anticipated performance, which may include the performance of subcontractors or partners depending on the individual contract requirements. Incentive provisions that increase or decrease earnings based solely on a single significant event generally are not recognized until the event occurs. Such incentives and penalties are recorded when there is sufficient information for us to assess anticipated performance. Our claims on contracts are recorded only if it is probable that the claim will result in additional contract revenue and the amounts can be reliably estimated. | ||||||||||||||||||||
We have a Company-wide standard and disciplined quarterly Estimate at Completion (EAC) process in which management reviews the progress and performance of our contracts. 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 include management's judgment about the ability and cost to achieve the schedule (e.g., the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product), and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract (e.g., to estimate increases in wages and prices for materials and related support cost allocations), performance by our subcontractors, the availability and timing of funding from our customer, and overhead cost rates, among other variables. These estimates also include the estimated cost of satisfying our industrial cooperation agreements, sometimes referred to as offset obligations, required under certain contracts. Based on this analysis, any quarterly adjustments to net sales, cost of sales, and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive program performance, and may result in an increase in operating income during the performance of individual contracts, if we determine we will be successful in mitigating risks surrounding the technical, schedule, and cost aspects of those contracts or realizing related opportunities. Likewise, these adjustments may result in a decrease in operating income if we determine we will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net sales, cost of sales, and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract's percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recognized in the period the loss is determined. | ||||||||||||||||||||
Net EAC adjustments had the following impact on our operating results: | ||||||||||||||||||||
(In millions, except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||
Operating income | $ | 513 | $ | 557 | $ | 613 | ||||||||||||||
Income from continuing operations attributable to Raytheon Company | 333 | 362 | 398 | |||||||||||||||||
Diluted EPS from continuing operations attributable to Raytheon Company | $ | 1.07 | $ | 1.12 | $ | 1.19 | ||||||||||||||
To a much lesser extent, we enter into other types of contracts such as service, commercial, or software and licensing arrangements. Revenue under fixed-price service contracts not associated with the design, development, manufacture, or modification of complex aerospace or electronic equipment, and under commercial contracts, generally is recognized upon delivery or as services are rendered once persuasive evidence of an arrangement exists, our price is fixed or determinable, and collectability is reasonably assured. Costs on fixed-price service contracts are expensed as incurred, unless they otherwise qualify for deferral. We recognize revenue on contracts to sell software when evidence of an arrangement exists, the software has been delivered and accepted by the customer, the fee is fixed or determinable, and collection is probable. For software arrangements that include multiple elements, including perpetual software licenses and undelivered items (e.g., maintenance and/or services; subscriptions/term licenses), we allocate and defer revenue for the undelivered items based on vendor specific objective evidence (VSOE) of the fair value of the undelivered elements, and recognize revenue on the perpetual license using the residual method. We base VSOE of each element on the price for which the undelivered element is sold separately. We determine fair value of the undelivered elements based on historical evidence of our stand-alone sales of these elements to third parties or from the stated renewal rate for the undelivered elements. When VSOE does not exist for undelivered items, we recognize the entire arrangement fee ratably over the applicable performance period. Revenue from non-software license fees is recognized over the expected life of the continued involvement with the customer. Additionally, royalty revenue is recognized when earned. | ||||||||||||||||||||
We apply the separation guidance under GAAP for contracts with multiple deliverables. We analyze revenue arrangements with multiple deliverables to determine if the deliverables should be divided into more than one unit of accounting. For contracts with more than one unit of accounting, we allocate the consideration we receive among the separate units of accounting based on their relative selling prices, which we determine based on prices of the deliverables as sold on a stand-alone basis, or if not sold on a stand-alone basis, the prices we would charge if sold on a stand-alone basis. We recognize revenue for each deliverable based on the revenue recognition policies described above. | ||||||||||||||||||||
Research and Development Expenses [Policy Text Block] | Research and Development Expenses—Research and development expenses are included in general and administrative expenses in our consolidated statements of operations. Expenditures for Company-sponsored research and development projects are expensed as incurred, and were $500 million, $465 million and $451 million in 2014, 2013 and 2012, respectively. Customer-sponsored research and development projects performed under contracts are accounted for as contract costs as the work is performed and included in contracts in process, net in our consolidated balance sheets. | |||||||||||||||||||
Federal, Foreign and State Income Taxes [Policy Text Block] | Federal, Foreign and State Income Taxes—The Company and its domestic subsidiaries provide for federal income taxes on pretax accounting income at rates in effect under existing tax law. Foreign subsidiaries record provisions for income taxes at applicable foreign tax rates in a similar manner. Such provisions differ from the amounts currently payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes. The Company does not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries. Such earnings are indefinitely reinvested in foreign operations or expected to be remitted substantially free of additional tax. Payments made for state income taxes are included in administrative and selling expenses as these costs can generally be recovered through the pricing of products and services to the U.S. Government in the period in which the tax is payable. Accordingly, the state income tax provision (benefit) is allocated to contracts in future periods as described below in Deferred Contract Costs. | |||||||||||||||||||
Other Expense (Income), Net [Policy Text Block] | Other Expense (Income), Net—Other expense (income), net consists primarily of gains and losses from our investments held in trusts used to fund certain of our non-qualified deferred compensation plans, gains and losses on the early repurchase of long-term debt and certain financing fees. | |||||||||||||||||||
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents—Cash and cash equivalents consist of cash and highly liquid investments with original maturities of 90 days or less at the date of purchase. The estimated fair value of cash and cash equivalents approximates the carrying value due to their short maturities. | |||||||||||||||||||
Short-term Investments [Policy Text Block] | Short-term Investments—We invest in marketable securities in accordance with our short-term investment policy and cash management strategy. These marketable securities are classified as available-for-sale and are recorded at fair value as short-term investments in our consolidated balance sheets. These investments are deemed Level 2 assets under the fair value hierarchy at December 31, 2014 and December 31, 2013, as their fair value is determined under a market approach using valuation models that utilize observable inputs, including maturity date, issue date, settlements date, and current rates. At December 31, 2014 and December 31, 2013, we had short-term investments of $1,497 million and $1,001 million, respectively, consisting of highly rated bank certificates of deposit with a minimum long-term debt rating of A or A2 and a minimum short-term debt rating of A-1 and P-1. As of December 31, 2014, our short-term investments had an average maturity of approximately five months. The amortized cost of these securities closely approximated their fair value at December 31, 2014 and December 31, 2013. There were no securities deemed to have other than temporary declines in value for 2014. In 2014, we recorded unrealized losses on short-term investments of less than $1 million, net of tax, in AOCL. In 2013, we recorded unrealized gains on short-term investments of less than $1 million, net of tax, in AOCL. In 2014, we recorded sales of short-term investments of $882 million, which resulted in gains of less than $1 million recorded in other (income) expense, net. In 2013, we recorded sales of short-term investments of $325 million, which resulted in gains of approximately $1 million recorded in other (income) expense, net. For purposes of computing realized gains and losses on available-for-sale securities, we determine cost on a specific identification basis. | |||||||||||||||||||
Contracts in Process, Net [Policy Text Block] | Contracts in Process, Net—Contracts in process, net are stated at cost plus estimated profit, but not in excess of estimated realizable value. Included in contracts in process are accounts receivable, which include amounts billed and due from customers. We maintain an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. | |||||||||||||||||||
Deferred Contract Costs [Policy Text Block] | Deferred Contract Costs—Included in contracts in process, net are certain costs related to the performance of our U.S. Government contracts which are required to be recorded under GAAP but are not currently allocable to contracts. Such costs are deferred and primarily include a portion of our environmental expenses, asset retirement obligations, certain restructuring costs, deferred state income taxes, workers’ compensation and certain other accruals. At December 31, 2014 and December 31, 2013, net deferred contract costs were approximately $223 million and $279 million, respectively. These costs are allocated to contracts when they are paid or otherwise agreed. We regularly assess the probability of recovery of these costs. This assessment requires us to make assumptions about the extent of cost recovery under our contracts and the amount of future contract activity. If the level of backlog in the future does not support the continued deferral of these costs, the profitability of our remaining contracts could be adversely affected. | |||||||||||||||||||
Pension and other postretirement benefits costs are allocated to our contracts as allowed costs based on the U.S. Government cost accounting standards (CAS). The CAS requirements for pension and other postretirement benefits costs differ from the financial accounting standards (FAS) requirements under GAAP. Given the inability to match with reasonable certainty individual expense and income items between the CAS and FAS requirements to determine specific recoverability, we have not estimated the incremental FAS income or expense to be recoverable under our expected future contract activity, and therefore did not defer any FAS expense for pension and other postretirement benefits plans in 2012–2014. This resulted in $286 million of income, $249 million of expense, and $255 million of expense in 2014, 2013 and 2012, respectively, reflected in our consolidated results of operations for the difference between CAS and FAS requirements for our pension and other postretirement benefits plans in those years. | ||||||||||||||||||||
Inventories [Policy Text Block] | Inventories—Inventories are stated at cost (first-in, first-out or average cost), but not in excess of net realizable value. An impairment for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, future sales expectations and salvage value. | |||||||||||||||||||
Inventories consisted of the following at December 31: | ||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Materials and purchased parts | $ | 70 | $ | 73 | ||||||||||||||||
Work in process | 326 | 279 | ||||||||||||||||||
Finished goods | 18 | 11 | ||||||||||||||||||
Total | $ | 414 | $ | 363 | ||||||||||||||||
We capitalize costs incurred in advance of contract award or funding in inventories if we determine that contract award or funding is probable. To the extent these are precontract costs, start-up costs have been excluded. We included capitalized precontract costs and other deferred costs of approximately $126 million and $100 million in inventories as work in process at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Property, Plant and Equipment, Net [Policy Text Block] | Property, Plant and Equipment, Net—Property, plant and equipment, net are stated at cost less accumulated depreciation. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are expensed. We include gains and losses on the sales of plant and equipment that are allocable to our contracts in overhead as we generally can recover these costs through the pricing of products and services to the U.S. Government. For all other sales or asset retirements, the assets and related accumulated depreciation and amortization are eliminated from the accounts, and any resulting gain or loss is reflected in income. | |||||||||||||||||||
Provisions for depreciation generally are computed using a combination of accelerated and straight-line methods and are based on estimated useful lives as follows: | ||||||||||||||||||||
Years | ||||||||||||||||||||
Machinery and equipment | 3–10 | |||||||||||||||||||
Buildings | 20–45 | |||||||||||||||||||
Leasehold improvements are amortized over the lesser of the remaining life of the lease or the estimated useful life of the improvement. | ||||||||||||||||||||
Impairment of Goodwill and Long-lived Assets [Policy Text Block] | Impairment of Goodwill and Long-lived Assets—We evaluate our goodwill for impairment annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. We perform our annual impairment test as of the first day of the fourth quarter utilizing a two-step methodology that requires us to first identify potential goodwill impairment and then measure the amount of the related goodwill impairment loss, if any. We have identified our operating segments as reporting units under the impairment test assessment criteria outlined in GAAP. In performing our annual impairment test in the fourth quarters of 2014, 2013 and 2012 we did not identify any goodwill impairment. | |||||||||||||||||||
We determine whether long-lived assets are to be held for use or disposal. Upon indication of possible impairment of long-lived assets held for use, we evaluate the recoverability of such assets by measuring the carrying amount of the assets against the related estimated undiscounted future cash flows. When an evaluation indicates that the future undiscounted cash flows are not sufficient to recover the carrying value of the asset, the asset is adjusted to its estimated fair value. In order for long-lived assets to be considered held for disposal, we must have committed to a plan to dispose of the assets. Once deemed held for disposal, the assets are stated at the lower of the carrying amount or fair value | ||||||||||||||||||||
Computer Software, Net [Policy Text Block] | Computer Software, Net—Internal use computer software, net, included in other assets, net, which consists primarily of our enterprise-wide software solutions, is stated at cost less accumulated amortization and is amortized using the straight-line method over its estimated useful life, generally 10 years. | |||||||||||||||||||
Advance Payments and Billings in Excess of Costs Incurred [Policy Text Block] | Advance Payments and Billings in Excess of Costs Incurred—We receive advances, performance-based payments and progress payments from customers that may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred as current liabilities. Costs incurred in excess of billings are classified as contracts in process, net. | |||||||||||||||||||
Other Comprehensive Income (Loss) [Policy Text Block] | Other Comprehensive Income (Loss)—Other comprehensive income (loss) includes foreign exchange translation adjustments, gains and losses on derivative instruments qualified as cash flow hedges, unrealized gains (losses) on investments, and gains and losses associated with pension and other postretirement benefits. The computation of other comprehensive income (loss) and its components are presented in the consolidated statements of comprehensive income. | |||||||||||||||||||
Other comprehensive income (loss) consisted of the following activity during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
Foreign exchange translation | Cash flow hedges and interest rate locks | Unrealized gains (losses) on investments and other, net | Pension and other employee benefit plans, net | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at December 31, 2011 | $ | 25 | $ | (13 | ) | $ | (5 | ) | $ | (7,008 | ) | $ | (7,001 | ) | ||||||
Before tax amount | 35 | 13 | (6 | ) | (1,275 | ) | (1,233 | ) | ||||||||||||
Tax (expense) benefit | — | (5 | ) | 1 | 450 | 446 | ||||||||||||||
Net of tax amount | 35 | 8 | (5 | ) | (825 | ) | (787 | ) | ||||||||||||
Balance at December 31, 2012 | 60 | (5 | ) | (10 | ) | (7,833 | ) | (7,788 | ) | |||||||||||
Before tax amount | (13 | ) | (4 | ) | 1 | 4,128 | 4,112 | |||||||||||||
Tax (expense) benefit | — | 1 | — | (1,438 | ) | (1,437 | ) | |||||||||||||
Net of tax amount | (13 | ) | (3 | ) | 1 | 2,690 | 2,675 | |||||||||||||
Balance at December 31, 2013 | 47 | (8 | ) | (9 | ) | (5,143 | ) | (5,113 | ) | |||||||||||
Before tax amount | (50 | ) | (10 | ) | 1 | (3,514 | ) | (3,573 | ) | |||||||||||
Tax (expense) benefit | — | 4 | (1 | ) | 1,225 | 1,228 | ||||||||||||||
Net of tax amount | (50 | ) | (6 | ) | — | (2,289 | ) | (2,345 | ) | |||||||||||
Balance at December 31, 2014 | $ | (3 | ) | $ | (14 | ) | $ | (9 | ) | $ | (7,432 | ) | $ | (7,458 | ) | |||||
Material amounts reclassified out of AOCL were related to amortization of net actuarial loss associated with our pension and other employee benefit plans and were $892 million, $1,154 million and $942 million before tax in 2014, 2013 and 2012, respectively. This component of AOCL is included in the calculation of net periodic pension expense (income) (see "Note 13: Pension and Other Employee Benefits" for additional details). | ||||||||||||||||||||
The defined benefit pension and other employee benefit plans are shown net of tax benefits of $4,005 million and $2,780 million at December 31, 2014 and December 31, 2013, respectively. The cash flow hedges and interest rate locks are shown net of tax benefits of $8 million and $4 million at December 31, 2014 and December 31, 2013, respectively. The unrealized gains (losses) on investments and other are shown net of tax benefits of $2 million and $4 million at December 31, 2014 and December 31, 2013, respectively. We expect approximately $6 million of after-tax net unrealized losses on our cash flow hedges at December 31, 2014 to be reclassified into earnings at then-current values over the next twelve months as the underlying hedged transactions occur. | ||||||||||||||||||||
Translation of Foreign Currencies [Policy Text Block] | Translation of Foreign Currencies—Assets and liabilities of foreign subsidiaries are translated at current exchange rates and the effects of these translation adjustments are reported as a component of AOCL in equity. Deferred taxes are not recognized for translation-related temporary differences of foreign subsidiaries as their undistributed earnings are considered to be indefinitely reinvested. Income and expenses in foreign currencies are translated at the average exchange rate during the period. Foreign exchange transaction gains and losses in 2014, 2013 and 2012 were not material. | |||||||||||||||||||
Treasury Stock [Policy Text Block] | Treasury Stock—Repurchased shares are retired immediately upon repurchase. We account for treasury stock under the cost method. Upon retirement the excess over par value is charged against additional paid-in capital. | |||||||||||||||||||
Pension and Other Postretirement Benefits Costs [Policy Text Block] | Pension and Other Postretirement Benefits Costs—We have pension plans covering the majority of our employees, including certain employees in foreign countries. We calculate our pension costs as required under GAAP, and the calculations and assumptions utilized require judgment. GAAP outlines the methodology used to determine pension expense or income for financial reporting purposes. For purposes of determining pension expense under GAAP, a calculated “market-related value” of our plan assets is used to develop the amount of deferred asset gains or losses to be amortized. The market-related value of assets is determined using actual asset gains or losses over a three year period. Under GAAP, a “corridor” approach may be elected and applied in the recognition of asset and liability gains or losses which limits expense recognition to the net outstanding gains and losses in excess of the greater of 10 percent of the projected benefit obligation or the calculated "market-related value" of assets. We do not use a “corridor” approach in the calculation of FAS expense. | |||||||||||||||||||
We recognize the funded status of a postretirement benefit plan (defined benefit pension and other benefits) as an asset or liability in our consolidated balance sheets. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Previously unrecognized deferred amounts such as demographic or asset gains or losses and the impact of historical plan changes are included in AOCL. Changes in these amounts in future years will be reflected through AOCL and amortized in future pension expense over the estimated average remaining employee service period. | ||||||||||||||||||||
Derivative Financial Instruments [Policy Text Block] | Derivative Financial Instruments—We enter into foreign currency forward contracts with commercial banks to fix the foreign currency exchange rates on specific commitments, payments, and receipts. Our foreign currency forward contracts are transaction driven and relate directly to a particular asset, liability or transaction for which commitments are in place. For foreign currency forward contracts designated and qualified for cash flow hedge accounting, we record the effective portion of the gain or loss on the derivative in AOCL, net of tax, and reclassify it into earnings in the same period or periods during which the hedged revenue or cost of sales transaction affects earnings. | |||||||||||||||||||
We recognize all derivative financial instruments as either assets or liabilities at fair value in our consolidated balance sheets. We measure and record the impact of counterparty credit risk into our valuation and the impact was not material for the years ended December 31, 2014 and 2013. We designate most foreign currency forward contracts as cash flow hedges of forecasted purchases and sales denominated in foreign currencies, and interest rate swaps as fair value hedges of our fixed-rate financing obligations. We classify the cash flows from these instruments in the same category as the cash flows from the hedged items. We do not hold or issue derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||
Realized gains and losses resulting from these cash flow hedges offset the foreign exchange gains and losses on the underlying transactions being hedged. Gains and losses on derivatives not designated for hedge accounting or representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized currently in net sales or cost of sales. | ||||||||||||||||||||
We also periodically enter into pay-variable, receive-fixed interest rate swaps to manage interest rate risk associated with our fixed-rate financing obligations. We account for our interest rate swaps as fair value hedges of a portion of our fixed-rate financing obligations, and accordingly record gains and losses from changes in the fair value of these swaps in interest expense, along with the offsetting gains and losses on the fair value adjustment of the hedged portion of our fixed-rate financing obligations. We also record in interest expense the net amount paid or received under the swap for the period and the amortization of gain or loss from the early termination of interest rate swaps. There were no interest rate swaps outstanding for the years ended December 31, 2014 and 2013. For a discussion of the impacts of our hedging activities on our results, see "Note 8: Derivative Financial Instruments". | ||||||||||||||||||||
Fair Values [Policy Text Block] | Fair Values—The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: | |||||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||
Level 2: | Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities. | |||||||||||||||||||
Level 3: | Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis consisted of marketable securities held in trust, short-term investments and foreign currency forward contracts as of December 31, 2014 and 2013. Fair value information for those assets and liabilities, including their classification in the fair value hierarchy, is included in "Note 13: Pension and Other Employee Benefits" (for marketable securities held in trust), "Note 1: Summary of Significant Accounting Policies" (for short-term investments), and "Note 8: Derivative Financial Instruments" (for foreign currency forward contracts). We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of December 31, 2014 and 2013. We did not have any material amounts of Level 3 assets or liabilities at December 31, 2014 and 2013. | ||||||||||||||||||||
Earnings per Share (EPS) [Policy Text Block] | Earnings per Share (EPS)—We compute basic EPS attributable to Raytheon Company common stockholders by dividing income from continuing operations attributable to Raytheon Company common stockholders, income (loss) from discontinued operations attributable to Raytheon Company common stockholders, and net income attributable to Raytheon Company, by our weighted-average common shares outstanding, including participating securities outstanding, as described below, during the period. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in our earnings. We compute basic and diluted EPS using actual income from continuing operations attributable to Raytheon Company common stockholders, income (loss) from discontinued operations attributable to Raytheon Company common stockholders, net income attributable to Raytheon Company, and our actual weighted-average shares and participating securities outstanding rather than the numbers presented within our consolidated financial statements, which are rounded to the nearest million. As a result, it may not be possible to recalculate EPS as presented in our consolidated financial statements. Furthermore, it may not be possible to recalculate EPS attributable to Raytheon Company common stockholders by adjusting EPS from continuing operations by EPS from discontinued operations. | |||||||||||||||||||
We include all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations. As a result, we have included all of our outstanding unvested restricted stock and Long-term Performance Plan (LTPP) awards that meet the retirement eligible criteria in our calculation of basic and diluted EPS. We disclose EPS for common stock and unvested share-based payment awards, and separately disclose distributed and undistributed earnings. Distributed earnings represent common stock dividends and dividends earned on unvested share-based payment awards of retirement eligible employees. Undistributed earnings represent earnings that were available for distribution but were not distributed. Common stock and unvested share-based payment awards earn dividends equally. | ||||||||||||||||||||
Employee Stock Plans [Policy Text Block] | Employee Stock Plans—Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the employees’ requisite service period, generally the vesting period of the award. The expense is amortized over the service period using the graded vesting method for our restricted stock and restricted stock units and the straight-line amortization method for our LTPP. The related gross excess tax benefit received upon exercise of stock options or vesting of a stock-based award, if any, is reflected in the consolidated statements of cash flows as a financing activity rather than an operating activity. | |||||||||||||||||||
Risks and Uncertainties [Policy Text Block] | Risks and Uncertainties—We provide a wide range of technologically advanced products, services and solutions for principally governmental customers in the U.S. and abroad, and are subject to certain business risks specific to that industry. Total sales to the U.S. Government, excluding foreign military sales, were 70%, 72%, and 73% of total net sales in 2014, 2013 and 2012, respectively. Total sales to customers outside the U.S., including foreign military sales through the U.S. Government, were 29%, 27% and 26% of total net sales in 2014, 2013 and 2012, respectively. Sales to the U.S. Government may be affected by changes in procurement policies, budget considerations, changing concepts of national defense, political developments abroad and other factors. Sales to international customers may be affected by changes in the priorities and budgets of international customers, which may be driven by changes in threat environments, geo-political uncertainties, potentially volatile worldwide economic conditions, various regional and local economic and political factors, risks and uncertainties and U.S. foreign policy. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||
Net EAC adjustments | Net EAC adjustments had the following impact on our operating results: | |||||||||||||||||||
(In millions, except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||
Operating income | $ | 513 | $ | 557 | $ | 613 | ||||||||||||||
Income from continuing operations attributable to Raytheon Company | 333 | 362 | 398 | |||||||||||||||||
Diluted EPS from continuing operations attributable to Raytheon Company | $ | 1.07 | $ | 1.12 | $ | 1.19 | ||||||||||||||
Schedule of Inventory, Current | Inventories consisted of the following at December 31: | |||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Materials and purchased parts | $ | 70 | $ | 73 | ||||||||||||||||
Work in process | 326 | 279 | ||||||||||||||||||
Finished goods | 18 | 11 | ||||||||||||||||||
Total | $ | 414 | $ | 363 | ||||||||||||||||
Schedule Of Property Plant And Equipment Estimated Useful Life Of Asset | Provisions for depreciation generally are computed using a combination of accelerated and straight-line methods and are based on estimated useful lives as follows: | |||||||||||||||||||
Years | ||||||||||||||||||||
Machinery and equipment | 3–10 | |||||||||||||||||||
Buildings | 20–45 | |||||||||||||||||||
Schedule of Comprehensive Income (Loss) | Other comprehensive income (loss) consisted of the following activity during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Foreign exchange translation | Cash flow hedges and interest rate locks | Unrealized gains (losses) on investments and other, net | Pension and other employee benefit plans, net | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at December 31, 2011 | $ | 25 | $ | (13 | ) | $ | (5 | ) | $ | (7,008 | ) | $ | (7,001 | ) | ||||||
Before tax amount | 35 | 13 | (6 | ) | (1,275 | ) | (1,233 | ) | ||||||||||||
Tax (expense) benefit | — | (5 | ) | 1 | 450 | 446 | ||||||||||||||
Net of tax amount | 35 | 8 | (5 | ) | (825 | ) | (787 | ) | ||||||||||||
Balance at December 31, 2012 | 60 | (5 | ) | (10 | ) | (7,833 | ) | (7,788 | ) | |||||||||||
Before tax amount | (13 | ) | (4 | ) | 1 | 4,128 | 4,112 | |||||||||||||
Tax (expense) benefit | — | 1 | — | (1,438 | ) | (1,437 | ) | |||||||||||||
Net of tax amount | (13 | ) | (3 | ) | 1 | 2,690 | 2,675 | |||||||||||||
Balance at December 31, 2013 | 47 | (8 | ) | (9 | ) | (5,143 | ) | (5,113 | ) | |||||||||||
Before tax amount | (50 | ) | (10 | ) | 1 | (3,514 | ) | (3,573 | ) | |||||||||||
Tax (expense) benefit | — | 4 | (1 | ) | 1,225 | 1,228 | ||||||||||||||
Net of tax amount | (50 | ) | (6 | ) | — | (2,289 | ) | (2,345 | ) | |||||||||||
Balance at December 31, 2014 | $ | (3 | ) | $ | (14 | ) | $ | (9 | ) | $ | (7,432 | ) | $ | (7,458 | ) |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Business Combination Segment Allocation [Line Items] | ||||||||||||||||||||
Business Combination, Segment Allocation [Table Text Block] | We allocated the initial purchase price for the acquisition as follows: | |||||||||||||||||||
(In millions) | Purchase Price Allocation | |||||||||||||||||||
Current assets | $ | 34 | ||||||||||||||||||
Other non-current assets | — | |||||||||||||||||||
Property, plant and equipment, net | 4 | |||||||||||||||||||
Goodwill | 301 | |||||||||||||||||||
Intangible assets | 126 | |||||||||||||||||||
Current liabilities | (34 | ) | ||||||||||||||||||
Other long-term liabilities | (4 | ) | ||||||||||||||||||
Fair value of net assets acquired | $ | 427 | ||||||||||||||||||
Rollforward of Goodwill by Segment | A rollforward of goodwill by segment is as follows: | |||||||||||||||||||
(In millions) | Integrated | Intelligence, Information and Services | Missile | Space | Total | |||||||||||||||
Defense | Systems | and | ||||||||||||||||||
Systems | Airborne | |||||||||||||||||||
Systems | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,799 | $ | 2,699 | $ | 4,150 | $ | 4,108 | $ | 12,756 | ||||||||||
Increase for acquisitions | — | 12 | — | (2 | ) | 10 | ||||||||||||||
Effect of foreign exchange | 1 | (3 | ) | — | — | (2 | ) | |||||||||||||
rates and other | ||||||||||||||||||||
Balance at December 31, 2013 | 1,800 | 2,708 | 4,150 | 4,106 | 12,764 | |||||||||||||||
Increase for acquisitions | — | 301 | — | — | 301 | |||||||||||||||
Effect of foreign exchange | (3 | ) | (1 | ) | — | — | (4 | ) | ||||||||||||
rates and other | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,797 | $ | 3,008 | $ | 4,150 | $ | 4,106 | $ | 13,061 | ||||||||||
Contracts_in_Process_Net_Table
Contracts in Process, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Contract in Process Net [Abstract] | ||||||||||||||||||||||||
Schedule of Contracts in Progress, Net | Contracts in process, net consisted of the following at December 31: | |||||||||||||||||||||||
Cost-Type | Fixed-Price | Total | ||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
U.S. Government contracts (including foreign | ||||||||||||||||||||||||
military sales): | ||||||||||||||||||||||||
Billed | $ | 409 | $ | 490 | $ | 226 | $ | 374 | $ | 635 | $ | 864 | ||||||||||||
Unbilled | 810 | 787 | 8,418 | 8,139 | 9,228 | 8,926 | ||||||||||||||||||
Progress payments | — | — | (5,834 | ) | (6,003 | ) | (5,834 | ) | (6,003 | ) | ||||||||||||||
1,219 | 1,277 | 2,810 | 2,510 | 4,029 | 3,787 | |||||||||||||||||||
Other customers: | ||||||||||||||||||||||||
Billed | 14 | 16 | 393 | 343 | 407 | 359 | ||||||||||||||||||
Unbilled | 27 | 22 | 1,127 | 1,411 | 1,154 | 1,433 | ||||||||||||||||||
Progress payments | — | — | (601 | ) | (705 | ) | (601 | ) | (705 | ) | ||||||||||||||
41 | 38 | 919 | 1,049 | 960 | 1,087 | |||||||||||||||||||
Allowance for doubtful accounts | — | — | (4 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||
Total contracts in process, net | $ | 1,260 | $ | 1,315 | $ | 3,725 | $ | 3,555 | $ | 4,985 | $ | 4,870 | ||||||||||||
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule Of Property Plant And Equipment Net [Text Block] | Property, plant and equipment, net consisted of the following at December 31: | |||||||
(In millions) | 2014 | 2013 | ||||||
Land | $ | 103 | $ | 104 | ||||
Buildings and improvements | 2,607 | 2,547 | ||||||
Machinery and equipment | 3,716 | 3,605 | ||||||
Property, plant and equipment, gross | 6,426 | 6,256 | ||||||
Accumulated depreciation and amortization | (4,491 | ) | (4,319 | ) | ||||
Total | $ | 1,935 | $ | 1,937 | ||||
Other_Assets_Net_Tables
Other Assets, Net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||
Schedule of Other Assets Net | Other assets, net consisted of the following at December 31: | |||||||||
(In millions) | 2014 | 2013 | ||||||||
Marketable securities held in trust | $ | 519 | $ | 479 | ||||||
Computer software, net of accumulated amortization of $992 and $918 at | 313 | 340 | ||||||||
December 31, 2014 and 2013, respectively | ||||||||||
Other intangible assets, net of accumulated amortization of $293 and $242 at | 303 | 235 | ||||||||
December 31, 2014 and 2013, respectively | ||||||||||
Other noncurrent assets, net | 246 | 330 | ||||||||
Deferred tax asset, noncurrent(1) | 1,231 | 66 | ||||||||
Total | $ | 2,612 | $ | 1,450 | ||||||
(1) For further details, refer to "Note 14: Income Taxes". | ||||||||||
Schedule of Investments Included in Other Assets Net | Investments, which are included in other noncurrent assets, net above consisted of the following at December 31: | |||||||||
(In millions, except percentages) | Ownership % | 2014 | 2013 | |||||||
Equity method investments | ||||||||||
Thales-Raytheon Systems Co. Ltd. (TRS) | 50 | $ | 98 | $ | 71 | |||||
Other investments | Various | 11 | 9 | |||||||
Total | $ | 109 | $ | 80 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Fair Value of Asset and Liability Derivatives Related to Foreign Currency Forward Contracts | The fair value amounts of asset derivatives included in other assets, net and liability derivatives included in other accrued expenses in our consolidated balance sheets related to foreign currency forward contracts were as follows at December 31: | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivatives designated as hedging instruments | $ | 5 | $ | 20 | $ | 19 | $ | 23 | ||||||||
Derivatives not designated as hedging instruments | 2 | 3 | 5 | 3 | ||||||||||||
Total | $ | 7 | $ | 23 | $ | 24 | $ | 26 | ||||||||
Pretax Gains (Losses) Related to Foreign Currency Forward Contracts Designated as Cash Flow Hedges | We recognized the following pretax gains (losses) related to foreign currency forward contracts designated as cash flow hedges: | |||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Effective Portion | ||||||||||||||||
Gain (loss) recognized in AOCL | $ | (13 | ) | $ | (1 | ) | ||||||||||
Gain (loss) reclassified from AOCL to operating income | (2 | ) | 3 | |||||||||||||
Amount excluded from effectiveness assessment and ineffective portion | ||||||||||||||||
Gain (loss) recognized in operating income | — | — | ||||||||||||||
Pretax gain (losses) on foreign currency contracts not designated as cash flow hedges [Table Text Block] | We recognized the following pretax gains (losses) related to foreign currency forward contracts not designated as cash flow hedges: | |||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Gain (loss) recognized in operating income | $ | (3 | ) | $ | (1 | ) |
Notes_Payable_and_Longterm_Deb1
Notes Payable and Long-term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Notes Payable and Long-term Debt [Table Text Block] | Notes payable and long-term debt consisted of the following at December 31: | |||||||
(In millions, except percentages) | 2014 | 2013 | ||||||
$251 notes due 2018, 6.75% | $ | 251 | $ | 251 | ||||
$340 notes due 2018, 6.40% | 339 | 339 | ||||||
$500 notes due 2020, 4.40% | 498 | 497 | ||||||
$1,000 notes due 2020, 3.125% | 993 | 992 | ||||||
$1,100 notes due 2022, 2.50% | 1,093 | 1,092 | ||||||
$300 notes due 2024, 3.15% | 297 | — | ||||||
$382 notes due 2027, 7.20% | 370 | 369 | ||||||
$185 notes due 2028, 7.00% | 184 | 184 | ||||||
$600 notes due 2040, 4.875% | 591 | 591 | ||||||
$425 notes due 2041, 4.70% | 419 | 419 | ||||||
$300 notes due 2044, 4.20% | 295 | — | ||||||
Total debt issued and outstanding | $ | 5,330 | $ | 4,734 | ||||
Fair Value of long term debt [Table Text Block] | The estimated fair value of long-term debt was the following at December 31: | |||||||
(In millions) | 2014 | 2013 | ||||||
Fair value of long-term debt | $ | 5,936 | $ | 5,036 | ||||
Schedule of Long-term Debt Instruments [Table Text Block] | The adjustments to the principal amounts of long-term debt were as follows at December 31: | |||||||
(In millions) | 2014 | 2013 | ||||||
Principal | $ | 5,383 | $ | 4,783 | ||||
Unamortized issue discounts | (43 | ) | (38 | ) | ||||
Unamortized interest rate lock costs | (10 | ) | (11 | ) | ||||
Total | $ | 5,330 | $ | 4,734 | ||||
The aggregate amounts of principal payments due on long-term debt for the next five years are: | ||||||||
(In millions) | ||||||||
2015 | $ | — | ||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 591 | |||||||
2019 | — | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Schedule of Annual Rentals on a Lease Basis | At December 31, 2014, we had commitments under long-term leases requiring annual rentals on a net lease basis as follows: | ||||||||||||
(In millions) | |||||||||||||
2015 | $ | 186 | |||||||||||
2016 | 156 | ||||||||||||
2017 | 131 | ||||||||||||
2018 | 110 | ||||||||||||
2019 | 76 | ||||||||||||
Thereafter | 288 | ||||||||||||
Estimates of Total Remediation Costs, Weighted Average Risk-Free Rate, Total Remediation Costs - Discounted and Recoverable Portion | |||||||||||||
(In millions, except percentages) | 2014 | 2013 | |||||||||||
Total remediation costs—undiscounted | $ | 202 | $ | 198 | |||||||||
Weighted-average discount rate | 5.5 | % | 5.6 | % | |||||||||
Total remediation costs—discounted | $ | 131 | $ | 133 | |||||||||
Recoverable portion | 80 | 90 | |||||||||||
Schedule of Environmental Remediation Costs | Environmental remediation costs expected to be incurred are: | ||||||||||||
(In millions) | |||||||||||||
2015 | $ | 30 | |||||||||||
2016 | 21 | ||||||||||||
2017 | 14 | ||||||||||||
2018 | 14 | ||||||||||||
2019 | 11 | ||||||||||||
Thereafter | 112 | ||||||||||||
Stated Values Outstanding, Guarantees, Letters of credit and Surety bonds | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Guarantees | $ | 266 | $ | 378 | |||||||||
Letters of credit | 1,938 | 1,424 | |||||||||||
Surety bonds | 298 | 238 | |||||||||||
Activity Related to Product Warranty Accruals | Activity related to product warranty accruals was as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 30 | $ | 33 | $ | 38 | |||||||
Provisions for warranties | 9 | 3 | 5 | ||||||||||
Warranty services provided | (7 | ) | (6 | ) | (10 | ) | |||||||
Ending balance | $ | 32 | $ | 30 | $ | 33 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||
Schedule Of Changes In Shares Of Common Stock Outstanding [Table Text Block] | The changes in shares of our common stock outstanding were as follows: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Beginning balance | 314.5 | 328.1 | 338.9 | |||||||||||||||
Stock plans activity | 1.4 | 2.4 | 5.8 | |||||||||||||||
Stock repurchases | (8.6 | ) | (16.0 | ) | (16.6 | ) | ||||||||||||
Ending balance | 307.3 | 314.5 | 328.1 | |||||||||||||||
Repurchases of Common Stock | Our share repurchases were as follows: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
$ | Shares | $ | Shares | $ | Shares | |||||||||||||
Shares repurchased under our share repurchase programs | $ | 750 | 7.7 | $ | 1,075 | 15.2 | $ | 825 | 15.9 | |||||||||
Shares repurchased to satisfy tax withholding obligations | 90 | 0.9 | 48 | 0.8 | 37 | 0.7 | ||||||||||||
Total share repurchases | $ | 840 | 8.6 | $ | 1,123 | 16 | $ | 862 | 16.6 | |||||||||
Schedule of Earnings Per Share Reconciliation [Table Text Block] | EPS from continuing operations attributable to Raytheon Company common stockholders and unvested share-based payment awards was as follows: | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Basic EPS attributable to Raytheon Company common stockholders: | ||||||||||||||||||
Distributed earnings | $ | 2.39 | $ | 2.19 | $ | 1.98 | ||||||||||||
Undistributed earnings | 4.59 | 3.78 | 3.69 | |||||||||||||||
Total | $ | 6.98 | $ | 5.97 | $ | 5.67 | ||||||||||||
Diluted EPS attributable to Raytheon Company common stockholders: | ||||||||||||||||||
Distributed earnings | $ | 2.39 | $ | 2.18 | $ | 1.98 | ||||||||||||
Undistributed earnings | 4.58 | 3.78 | 3.67 | |||||||||||||||
Total | $ | 6.97 | $ | 5.96 | $ | 5.65 | ||||||||||||
Income Attributable to Participating Securities [Table Text Block] | Income attributable to participating securities was as follows: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations attributable to participating securities | $ | 39 | $ | 38 | $ | 36 | ||||||||||||
Income (loss) from discontinued operations, net of tax attributable to participating securities(1) | 1 | 1 | — | |||||||||||||||
Net income attributable to participating securities | $ | 40 | $ | 39 | $ | 36 | ||||||||||||
-1 | Income (loss) from discontinued operations, net of tax attributable to participating securities was a loss of less than $1 million for 2012. | |||||||||||||||||
Weighted-Average Shares Outstanding for Basic and Diluted EPS | The weighted-average shares outstanding for basic and diluted EPS were as follows: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Shares for basic EPS (including 5.5 participating securities for 2014, 6.4 for 2013, and 6.3 for 2012) | 312 | 323.4 | 333.2 | |||||||||||||||
Dilutive effect of stock options and LTPP | 0.6 | 0.8 | 1 | |||||||||||||||
Shares for diluted EPS | 312.6 | 324.2 | 334.2 | |||||||||||||||
Stock Options Included in and Excluded from Calculations | Stock options to purchase the following number of shares of common stock had exercise prices that were less than the average market price (dilutive) of our common stock and were included in our calculations of diluted EPS: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||
Stock options included in the calculation of EPS (dilutive)(2) | — | 0.1 | 0.9 | |||||||||||||||
Stockbased_Compensation_Plans_
Stock-based Compensation Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of Stock-based compensation | Stock-based compensation expense and the associated tax benefits were as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Stock-based compensation expense | $ | 148 | $ | 129 | $ | 122 | ||||||
Stock-based tax benefit | 48 | 39 | 37 | |||||||||
Restricted Stock Activity Disclosure | Restricted stock activity was as follows: | |||||||||||
Shares | Weighted-Average | |||||||||||
(in thousands) | Grant Date | |||||||||||
Fair Value | ||||||||||||
Outstanding at December 31, 2011 | 5,539 | $ | 50.38 | |||||||||
Granted | 2,370 | 50.38 | ||||||||||
Vested | (1,733 | ) | 51.78 | |||||||||
Forfeited | (338 | ) | 50.07 | |||||||||
Outstanding at December 31, 2012 | 5,838 | 49.98 | ||||||||||
Granted | 1,855 | 67.46 | ||||||||||
Vested | (1,708 | ) | 48.93 | |||||||||
Forfeited | (648 | ) | 52.39 | |||||||||
Outstanding at December 31, 2013 | 5,337 | 56.1 | ||||||||||
Granted | 1,355 | 96.84 | ||||||||||
Vested | (1,648 | ) | 51.3 | |||||||||
Forfeited | (526 | ) | 58.74 | |||||||||
Outstanding at December 31, 2014 | 4,518 | $ | 69.76 | |||||||||
Long-Term Performance Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Long-Term Performance Plan Activity | LTPP activity related to the expected units was as follows: | |||||||||||
Units | Weighted-Average | |||||||||||
(in thousands) | Grant Date | |||||||||||
Fair Value | ||||||||||||
Outstanding at December 31, 2011 | 991 | $ | 50.07 | |||||||||
Granted | 484 | 50.83 | ||||||||||
Increase | 407 | 53.32 | ||||||||||
Vested | (462 | ) | 46.04 | |||||||||
Outstanding at December 31, 2012 | 1,420 | 52.57 | ||||||||||
Granted | 402 | 61.38 | ||||||||||
Increase | 398 | 53.86 | ||||||||||
Vested | (383 | ) | 55.74 | |||||||||
Forfeited | (10 | ) | 51.22 | |||||||||
Outstanding at December 31, 2013 | 1,827 | 54.13 | ||||||||||
Granted | 280 | 97.59 | ||||||||||
Increase | 99 | 39.5 | ||||||||||
Vested | (664 | ) | 52.33 | |||||||||
Forfeited | (134 | ) | 75.8 | |||||||||
Outstanding at December 31, 2014 | 1,408 | $ | 60.53 | |||||||||
Pension_and_Other_Employee_Ben1
Pension and Other Employee Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||||||||||||||||||
Schedule of Fair Value of Pension Plans [Table Text Block] | The fair value of plan assets for our domestic and foreign Pension Benefits plans was as follows: | |||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Domestic Pension Benefits plan | $ | 19,352 | $ | 18,822 | ||||||||||||||||
Foreign Pension Benefits plan | 868 | 806 | ||||||||||||||||||
Marketable Securities [Table Text Block] | The fair value of marketable securities held in trust, which are considered Level 1 assets under the fair value hierarchy, consisted of the following at December 31: | |||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
Marketable securities held in trust | $ | 519 | $ | 479 | ||||||||||||||||
Schedule of Pension Contributions [Table Text Block] | We made the following contributions to our pension and other postretirement benefit plans during the years ended December 31: | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Required pension contributions | $ | 650 | $ | 778 | $ | 721 | ||||||||||||||
Discretionary pension contributions | 600 | 300 | 500 | |||||||||||||||||
Other postretirement benefit contributions | 20 | 22 | 19 | |||||||||||||||||
Total | $ | 1,270 | $ | 1,100 | $ | 1,240 | ||||||||||||||
Pension Benefits Expected to be Paid From Plans or Companies Assets | The table below reflects the total Pension Benefits expected to be paid from the plans or from our assets, including both our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. Other Benefit payments reflect our portion only. | |||||||||||||||||||
(In millions) | Pension | Other | ||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
2015 | $ | 1,782 | $ | 59 | ||||||||||||||||
2016 | 1,759 | 58 | ||||||||||||||||||
2017 | 1,724 | 57 | ||||||||||||||||||
2018 | 1,660 | 56 | ||||||||||||||||||
2019 | 1,410 | 55 | ||||||||||||||||||
Thereafter (next 5 years) | 7,786 | 264 | ||||||||||||||||||
Amounts Recognized on the Balance Sheets | ||||||||||||||||||||
Funded Status – Amounts Recognized on our Balance Sheets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) December 31: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Noncurrent assets | $ | 28 | $ | 119 | $ | — | $ | — | ||||||||||||
Current liabilities | (98 | ) | (74 | ) | (12 | ) | (13 | ) | ||||||||||||
Noncurrent liabilities | (6,359 | ) | (3,387 | ) | (352 | ) | (288 | ) | ||||||||||||
Net amount recognized on our balance sheets | $ | (6,429 | ) | $ | (3,342 | ) | $ | (364 | ) | $ | (301 | ) | ||||||||
Reconciliation of Amounts Recognized on our Balance Sheets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) December 31: | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||||||||
Prior service (cost) credit | $ | (18 | ) | $ | (13 | ) | $ | 4 | $ | 5 | ||||||||||
Net loss | (11,325 | ) | (7,892 | ) | (98 | ) | (23 | ) | ||||||||||||
Accumulated other comprehensive loss | (11,343 | ) | (7,905 | ) | (94 | ) | (18 | ) | ||||||||||||
Accumulated contributions in excess (below) net periodic benefit or | 4,914 | 4,563 | (270 | ) | (283 | ) | ||||||||||||||
cost | ||||||||||||||||||||
Net amount recognized on our balance sheets | $ | (6,429 | ) | $ | (3,342 | ) | $ | (364 | ) | $ | (301 | ) | ||||||||
Sources of Change in Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Sources of Change in Accumulated Other Comprehensive Loss | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Prior service (cost) credit arising during period | $ | (11 | ) | $ | — | $ | — | $ | — | |||||||||||
Amortization of prior service cost (credit) included in net income | 7 | 9 | (1 | ) | (2 | ) | ||||||||||||||
Net change in prior service (cost) credit not recognized in net | (4 | ) | 9 | (1 | ) | (2 | ) | |||||||||||||
income during that period | ||||||||||||||||||||
Actuarial gain (loss) arising during period | (4,334 | ) | 2,869 | (76 | ) | 96 | ||||||||||||||
Amortization of net actuarial (gain) loss included in net income | 891 | 1,150 | 1 | 4 | ||||||||||||||||
Net change in actuarial gain (loss) not included in net income | (3,443 | ) | 4,019 | (75 | ) | 100 | ||||||||||||||
during the period | ||||||||||||||||||||
Effect of exchange rates | 9 | 2 | — | — | ||||||||||||||||
Total change in accumulated other comprehensive loss during period | $ | (3,438 | ) | $ | 4,030 | $ | (76 | ) | $ | 98 | ||||||||||
Adjustment to Accumulated Other Comprehensive Loss | The amounts in accumulated other comprehensive loss at December 31, 2014 expected to be recognized as components of net periodic benefit cost in 2015 are as follows: | |||||||||||||||||||
Adjustments to Accumulated Other Comprehensive Loss (in millions) | Pension Benefits | Other Benefits | ||||||||||||||||||
Amortization of net loss | $ | (1,129 | ) | $ | (2 | ) | ||||||||||||||
Amortization of prior service (cost) credit | (7 | ) | 1 | |||||||||||||||||
Total | $ | (1,136 | ) | $ | (1 | ) | ||||||||||||||
PBO and ABO Schedule [Table Text Block] | The PBO, ABO and asset values for our domestic qualified pension plans were as follows: | |||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||
PBO for domestic qualified pension plans | $ | 24,767 | $ | 21,396 | ||||||||||||||||
ABO for domestic qualified pension plans | 22,570 | 19,595 | ||||||||||||||||||
Asset values for domestic qualified pension plans | 19,352 | 18,822 | ||||||||||||||||||
Schedule of Change In Projected Benefit Obligation | The tables below provide a reconciliation of benefit obligations, plan assets, funded status and related actuarial assumptions of our domestic and foreign Pension Benefits and Other Benefits plans. | |||||||||||||||||||
Change in Projected Benefit Obligation | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Projected benefit obligation at beginning of year | $ | 22,970 | $ | 24,657 | $ | 732 | $ | 818 | ||||||||||||
Service cost | 448 | 579 | 6 | 8 | ||||||||||||||||
Interest cost | 1,128 | 996 | 35 | 32 | ||||||||||||||||
Plan participants’ contributions | 12 | 15 | 50 | 43 | ||||||||||||||||
Amendments | 12 | — | — | — | ||||||||||||||||
Plan curtailments/settlements | (4 | ) | (6 | ) | — | — | ||||||||||||||
Actuarial loss (gain) | 4,007 | (1,798 | ) | 67 | (70 | ) | ||||||||||||||
Foreign exchange loss (gain) | (42 | ) | — | — | — | |||||||||||||||
Benefits paid | (1,882 | ) | (1,473 | ) | (108 | ) | (99 | ) | ||||||||||||
Projected benefit obligation at end of year | $ | 26,649 | $ | 22,970 | $ | 782 | $ | 732 | ||||||||||||
Schedule of Change In Plan Assets | ||||||||||||||||||||
Change in Plan Assets | Pension Benefits | Other Benefits | ||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 19,628 | $ | 17,450 | $ | 431 | $ | 408 | ||||||||||||
Actual return (loss) on plan assets | 1,254 | 2,563 | 25 | 57 | ||||||||||||||||
Company contributions | 1,250 | 1,078 | 20 | 22 | ||||||||||||||||
Plan participants’ contributions | 12 | 15 | 50 | 43 | ||||||||||||||||
Plan settlements | (4 | ) | (6 | ) | — | — | ||||||||||||||
Foreign exchange gain (loss) | (38 | ) | 1 | — | — | |||||||||||||||
Benefits paid | (1,882 | ) | (1,473 | ) | (108 | ) | (99 | ) | ||||||||||||
Fair value of plan assets at end of year | $ | 20,220 | $ | 19,628 | $ | 418 | $ | 431 | ||||||||||||
Retirement Plan Assumptions | ||||||||||||||||||||
Weighted-Average Net Periodic Benefit Cost Assumptions | Pension Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.06 | % | 4.15 | % | 5 | % | ||||||||||||||
Expected long-term rate of return on plan assets | 8.67 | % | 8.67 | % | 8.68 | % | ||||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | |||||||||||||||||
Average | 4.4 | % | 4.4 | % | 4.4 | % | ||||||||||||||
Weighted-Average Net Periodic Benefit Cost Assumptions | Other Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5.01 | % | 4 | % | 5 | % | ||||||||||||||
Expected long-term rate of return on plan assets | 8.24 | % | 8.24 | % | 8.25 | % | ||||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | |||||||||||||||||
Average | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||
Health care trend rate in the next year | 4 | % | 4 | % | 4 | % | ||||||||||||||
Gradually declining to an ultimate trend rate | 4 | % | 4 | % | 4 | % | ||||||||||||||
Year that the rate reaches ultimate trend rate | * | * | * | |||||||||||||||||
* Currently at the ultimate trend rate. | ||||||||||||||||||||
Weighted-Average Year-End Benefit Obligation Assumptions | Pension Benefits | Other Benefits | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.06 | % | 5.06 | % | 4.05 | % | 5.01 | % | ||||||||||||
Rate of compensation increase | ||||||||||||||||||||
Range | 2% -7% | 2% -7% | 2% -7% | 2% -7% | ||||||||||||||||
Average | 4.4 | % | 4.39 | % | 4.5 | % | 4.5 | % | ||||||||||||
Health care trend rate in the next year | 4 | % | 4 | % | ||||||||||||||||
Gradually declining to an ultimate trend rate of | 4 | % | 4 | % | ||||||||||||||||
Year that the rate reaches the ultimate trend rate | * | * | ||||||||||||||||||
* Currently at the ultimate trend rate. | ||||||||||||||||||||
Long term returns used in ROA assumptions [Table Text Block] | ||||||||||||||||||||
Percentile | 2014 | 2013 | 2012 | |||||||||||||||||
25th | 5.53 | % | 5.62 | % | 6.15 | % | ||||||||||||||
75th | 9.65 | % | 9.41 | % | 9.84 | % | ||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | The investment policy asset allocation ranges for the Plan, as set by the Investment Committee, for the year ended December 31, 2014 were as follows: | |||||||||||||||||||
Asset Category | ||||||||||||||||||||
Global equity (combined U.S. and international equity) | 40%–60% | |||||||||||||||||||
U.S. equities | 25%–40% | |||||||||||||||||||
International equities | 15%–25% | |||||||||||||||||||
Fixed-income securities | 25%–40% | |||||||||||||||||||
Cash and cash equivalents | 1%–10% | |||||||||||||||||||
Private equity and private real estate | 3%–20% | |||||||||||||||||||
Other (including absolute return funds) | 5%–20% | |||||||||||||||||||
Schedule of Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(In millions) | Beginning | Actual return | Purchases, | Transfers in and/or out of | Ending | |||||||||||||||
Balance at | on plan | issuances, | Level 3 | Balance at | ||||||||||||||||
Dec 31, | assets(1) | settlements | Dec 31, | |||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
Fixed-income hedge funds | $ | 7 | $ | 3 | $ | (8 | ) | $ | — | $ | 2 | |||||||||
Securitized | — | 46 | 195 | — | 241 | |||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds | ||||||||||||||||||||
Relative value | 146 | 8 | (4 | ) | 100 | 250 | ||||||||||||||
Event driven | 155 | 11 | 58 | 6 | 230 | |||||||||||||||
Equity hedge | 6 | 2 | 44 | — | 52 | |||||||||||||||
Macro | 10 | — | (10 | ) | — | — | ||||||||||||||
Multi-strategy | 125 | 19 | 30 | — | 174 | |||||||||||||||
Private equity funds | 598 | 65 | 275 | — | 938 | |||||||||||||||
Private real estate funds | 329 | 74 | 14 | — | 417 | |||||||||||||||
Insurance contracts | 26 | 2 | — | — | 28 | |||||||||||||||
Other | 106 | — | (51 | ) | — | 55 | ||||||||||||||
Total | $ | 1,508 | $ | 230 | $ | 543 | $ | 106 | $ | 2,387 | ||||||||||
(In millions) | Beginning | Actual return | Purchases, | Transfers in and/or out of | Ending | |||||||||||||||
Balance at | on plan | issuances, | Level 3 | Balance at | ||||||||||||||||
Dec 31, | assets(1) | settlements | Dec 31, | |||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
Fixed-income hedge funds | $ | 67 | $ | 39 | $ | (99 | ) | $ | — | $ | 7 | |||||||||
Securitized | — | — | — | — | — | |||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds | ||||||||||||||||||||
Relative value | — | 11 | 135 | — | 146 | |||||||||||||||
Event driven | 72 | 30 | 53 | — | 155 | |||||||||||||||
Equity hedge | 5 | 1 | — | — | 6 | |||||||||||||||
Macro | 32 | 1 | (23 | ) | — | 10 | ||||||||||||||
Multi-strategy | 80 | 13 | 32 | — | 125 | |||||||||||||||
Private equity funds | 397 | 85 | 116 | — | 598 | |||||||||||||||
Private real estate funds | 249 | 49 | 31 | — | 329 | |||||||||||||||
Insurance contracts | 25 | — | 1 | — | 26 | |||||||||||||||
Other | 192 | — | (86 | ) | — | 106 | ||||||||||||||
Total | $ | 1,119 | $ | 229 | $ | 160 | $ | — | $ | 1,508 | ||||||||||
-1 | The actual return on plan assets for assets still held at December 31, 2014 and December 31, 2013 was $170 million and $95 million, respectively. | |||||||||||||||||||
Other Benefits [Member] | ||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||
Components of Net Periodic Postretirement Expense (Income) | Other Benefits | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 6 | $ | 8 | $ | 8 | ||||||||||||||
Interest cost | 35 | 32 | 38 | |||||||||||||||||
Expected return on plan assets | (33 | ) | (32 | ) | (31 | ) | ||||||||||||||
Amounts reflected in net funded status | 8 | 8 | 15 | |||||||||||||||||
Amortization of transition obligation | — | — | 1 | |||||||||||||||||
Amortization of prior service cost included in net periodic postretirement expense | (1 | ) | (2 | ) | (3 | ) | ||||||||||||||
Recognized net actuarial loss | 1 | 4 | 3 | |||||||||||||||||
Amounts reclassified during the year | — | 2 | 1 | |||||||||||||||||
Net periodic postretirement expense (income) | $ | 8 | $ | 10 | $ | 16 | ||||||||||||||
Pension Plans [Member] | ||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||||||||||||||||||
Components of Net Periodic Benefit Cost | The tables below outline the components of net periodic benefit expense (income) and related actuarial assumptions of our domestic and foreign Pension Benefits and Other Benefits plans. | |||||||||||||||||||
Components of Net Periodic Pension Expense (Income) | Pension Benefits | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 448 | $ | 579 | $ | 516 | ||||||||||||||
Interest cost | 1,128 | 996 | 1,047 | |||||||||||||||||
Expected return on plan assets | (1,580 | ) | (1,495 | ) | (1,422 | ) | ||||||||||||||
Amounts reflected in net funded status | (4 | ) | 80 | 141 | ||||||||||||||||
Amortization of prior service cost included in net periodic pension expense | 7 | 9 | 10 | |||||||||||||||||
Recognized net actuarial loss | 891 | 1,150 | 939 | |||||||||||||||||
Loss due to curtailments/settlements | 1 | 1 | 3 | |||||||||||||||||
Amounts reclassified during the year | 899 | 1,160 | 952 | |||||||||||||||||
Net periodic pension expense (income) | $ | 895 | $ | 1,240 | $ | 1,093 | ||||||||||||||
United States Pension Plan of US Entity, Defined Benefit [Member] | ||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | The fair value of our Plan assets by asset category and by level (as described in "Note 1: Summary of Significant Accounting Policies") at December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
U.S. equities | ||||||||||||||||||||
All capitalization(1) | $ | 6,833 | $ | 3,268 | $ | 3,565 | $ | — | ||||||||||||
International equities | ||||||||||||||||||||
Developed markets(1) | 2,398 | 1,452 | 946 | — | ||||||||||||||||
Emerging markets(1) | 394 | 297 | 97 | — | ||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
U.S. Government and agency securities | 112 | 104 | 8 | — | ||||||||||||||||
Corporate debt securities/instruments | ||||||||||||||||||||
Investment grade bonds(2) | 2,424 | — | 2,424 | — | ||||||||||||||||
Non-investment grade bonds(2) | 248 | — | 248 | — | ||||||||||||||||
Emerging market debt | — | — | — | — | ||||||||||||||||
Core fixed-income(3) | 1,215 | 1,098 | 117 | — | ||||||||||||||||
Global multi-sector fixed-income(4) | 456 | 456 | — | — | ||||||||||||||||
Fixed-income hedge funds(5) | 112 | — | 110 | 2 | ||||||||||||||||
Securitized(6) | 1,006 | — | 765 | 241 | ||||||||||||||||
Convertible(7) | 161 | 161 | — | — | ||||||||||||||||
Cash and cash equivalents(8) | 820 | 558 | 262 | — | ||||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds(9) | ||||||||||||||||||||
Relative value(10) | 432 | — | 182 | 250 | ||||||||||||||||
Event driven(11) | 387 | — | 157 | 230 | ||||||||||||||||
Equity hedge(12) | 319 | — | 267 | 52 | ||||||||||||||||
Macro(13) | — | — | — | — | ||||||||||||||||
Multi-strategy(14) | 322 | — | 148 | 174 | ||||||||||||||||
Private equity funds(15) | 938 | — | — | 938 | ||||||||||||||||
Private real estate funds | 692 | — | 275 | 417 | ||||||||||||||||
Insurance contracts | 28 | — | — | 28 | ||||||||||||||||
Other(16) | 55 | — | — | 55 | ||||||||||||||||
Total | $ | 19,352 | $ | 7,394 | $ | 9,571 | $ | 2,387 | ||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
U.S. equities | ||||||||||||||||||||
All capitalization(1) | $ | 6,647 | $ | 2,805 | $ | 3,842 | $ | — | ||||||||||||
International equities | ||||||||||||||||||||
Developed markets(1) | 3,136 | 2,225 | 911 | — | ||||||||||||||||
Emerging markets(1) | 488 | 393 | 95 | — | ||||||||||||||||
Fixed-income securities | ||||||||||||||||||||
U.S. Government and agency securities | 93 | 93 | — | — | ||||||||||||||||
Corporate debt securities/instruments | ||||||||||||||||||||
Investment grade bonds(2) | 1,477 | — | 1,477 | — | ||||||||||||||||
Non-investment grade bonds(2) | 427 | — | 427 | — | ||||||||||||||||
Emerging market debt | 51 | 51 | — | — | ||||||||||||||||
Core fixed-income(3) | 1,326 | 1,228 | 98 | — | ||||||||||||||||
Global multi-sector fixed-income(4) | 97 | 97 | — | — | ||||||||||||||||
Fixed-income hedge funds(5) | 171 | — | 164 | 7 | ||||||||||||||||
Securitized(6) | 754 | — | 754 | — | ||||||||||||||||
Convertible(7) | 207 | 207 | — | — | ||||||||||||||||
Cash and cash equivalents(8) | 1,239 | 561 | 678 | — | ||||||||||||||||
Other funds | ||||||||||||||||||||
Absolute return funds(9) | ||||||||||||||||||||
Relative value(10) | 464 | — | 318 | 146 | ||||||||||||||||
Event driven(11) | 323 | — | 168 | 155 | ||||||||||||||||
Equity hedge(12) | 329 | — | 323 | 6 | ||||||||||||||||
Macro(13) | 201 | — | 191 | 10 | ||||||||||||||||
Multi-strategy(14) | 125 | — | — | 125 | ||||||||||||||||
Private equity funds(15) | 598 | — | — | 598 | ||||||||||||||||
Private real estate funds | 537 | — | 208 | 329 | ||||||||||||||||
Insurance contracts | 26 | — | — | 26 | ||||||||||||||||
Other(16) | 106 | — | — | 106 | ||||||||||||||||
Total | $ | 18,822 | $ | 7,660 | $ | 9,654 | $ | 1,508 | ||||||||||||
-1 | U.S. and International equities primarily include investments across the spectrum of large, medium and small market capitalization stocks. | |||||||||||||||||||
-2 | Investment grade bonds are fixed-income securities with a rating equivalent to a Standard & Poor's rating of BBB- or better. Non-investment grade bonds have a rating equivalent to a Standard & Poor's rating of BB+ or less. | |||||||||||||||||||
-3 | Core fixed-income securities are funds that invest primarily in intermediate-term high quality domestic bonds issued by various governmental or private sector entities. | |||||||||||||||||||
-4 | Global multi-sector fixed-income investments are funds that invest globally among several sectors including governments, investment grade corporate bonds, high yield corporate bonds and emerging market bonds. | |||||||||||||||||||
-5 | Fixed-income hedge funds can employ numerous strategies and seek to hedge some of the risk inherent in their investments by using a variety of methods, including short selling and derivative instruments. | |||||||||||||||||||
-6 | Securitized fixed-income securities pool together various cash flow producing financial assets that are structured in a way that can achieve desired targeted credit, maturity or other characteristics and are typically collateralized by residential mortgages, commercial mortgages and other assets. | |||||||||||||||||||
-7 | Convertible fixed-income securities are funds that invest in bonds that can be converted into a predetermined amount of the issuer's equity at certain times during the life of the bond, usually at the discretion of the bondholder. | |||||||||||||||||||
-8 | Cash and cash equivalents are invested in highly liquid money market funds. Included in cash and cash equivalents is excess cash in investment manager accounts. This cash is available for immediate use and is used to fund daily operations and execute the investment policy. This amount is not considered to be part of the cash target allocation set forth in the investment policy. | |||||||||||||||||||
-9 | Absolute return funds seek returns that are less volatile than long only funds under all market conditions. | |||||||||||||||||||
-10 | Relative value fund strategies seek to capture arbitrage opportunities created by price discrepancies between related equity, debt and derivative financial instruments while minimizing or neutralizing market risk. | |||||||||||||||||||
-11 | Event driven fund strategies seek to capture return opportunities created by special situations and corporate events tied to corporate merger and acquisition activity, restructuring, bankruptcy or financial distress. | |||||||||||||||||||
-12 | Equity hedge fund strategies invest in global public equity securities, equity related options and derivatives and employ short selling with the objective of generating higher risk-adjusted returns than traditional investments in equity. | |||||||||||||||||||
-13 | Macro fund strategies invest in futures, broad market indices and other financial instruments and seek to either generate positive returns regardless of market conditions or take advantage of global capital flows. | |||||||||||||||||||
-14 | Multi-strategy funds allocate investments tactically across all asset classes globally based upon relative valuations to achieve maximum returns. | |||||||||||||||||||
-15 | Private equity funds are predominantly invested in the U.S. and Western Europe. | |||||||||||||||||||
-16 | As of December 31, 2014 and December 31, 2013, this category included $55 million and $106 million of net receivables and payables which consisted primarily of pending trades, interest, dividends and other payable expenses. | |||||||||||||||||||
VEBA [Member] | ||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | The table below details assets by category for our VEBA trusts. These assets consist primarily of publicly-traded equity securities and publicly-traded fixed-income securities. | |||||||||||||||||||
VEBA Trust Asset Information | Percent of Plan Assets at Dec 31: | |||||||||||||||||||
Asset category | 2014 | 2013 | ||||||||||||||||||
Fixed-income securities | 46 | % | 34 | % | ||||||||||||||||
U.S. equities | 41 | % | 41 | % | ||||||||||||||||
International equities | 10 | % | 21 | % | ||||||||||||||||
Cash and cash equivalents | 3 | % | 4 | % | ||||||||||||||||
Total | 100 | % | 100 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for federal and foreign income taxes consisted of the following: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Current income tax expense | ||||||||||||
Federal | $ | 837 | $ | 723 | $ | 753 | ||||||
Foreign | 13 | 17 | 32 | |||||||||
Deferred income tax expense (benefit) | ||||||||||||
Federal | (73 | ) | 36 | 74 | ||||||||
Foreign | 13 | 32 | 19 | |||||||||
Total | $ | 790 | $ | 808 | $ | 878 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The expense for income taxes differs from the U.S. statutory rate due to the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Research and development (R&D) tax credit | (1.1 | ) | (1.8 | ) | — | |||||||
Tax settlements and refund claims | (0.5 | ) | (0.8 | ) | (0.8 | ) | ||||||
Domestic manufacturing deduction benefit | (2.7 | ) | (2.1 | ) | (1.9 | ) | ||||||
Tax benefit on foreign dividend | (2.8 | ) | — | — | ||||||||
Other, net | (1.4 | ) | (1.0 | ) | (0.7 | ) | ||||||
Effective tax rate | 26.5 | % | 29.3 | % | 31.6 | % | ||||||
Schedule of domestic and foreign income from continuing operations before taxes [Table Text Block] | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Domestic income from continuing operations before taxes | $ | 2,868 | $ | 2,612 | $ | 2,630 | ||||||
Foreign income from continuing operations before taxes | 115 | 145 | 149 | |||||||||
Schedule of income taxes paid [Table Text Block] | We made the following net tax payments during the years ended December 31: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Federal | $ | 705 | $ | 628 | $ | 826 | ||||||
Foreign | 19 | 22 | 13 | |||||||||
State | 35 | 39 | 78 | |||||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A rollforward of our unrecognized tax benefits was as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 118 | $ | 129 | $ | 167 | ||||||
Additions based on current year tax positions | 1 | 104 | 1 | |||||||||
Additions based on prior year tax positions | 10 | — | — | |||||||||
Reductions based on prior year tax positions | (25 | ) | (64 | ) | (39 | ) | ||||||
Settlements based on prior year tax positions | — | (51 | ) | — | ||||||||
Unrecognized tax benefits, end of year | $ | 104 | $ | 118 | $ | 129 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes consisted of the following at December 31: | |||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Current deferred tax assets (liabilities) | ||||||||||||
Accrued employee compensation and benefits | $ | 242 | $ | 240 | ||||||||
Other accrued expenses and reserves | 132 | 191 | ||||||||||
Contracts in process and inventories | (539 | ) | (513 | ) | ||||||||
Deferred income taxes-current | $ | (165 | ) | $ | (82 | ) | ||||||
Noncurrent deferred tax assets (liabilities) | ||||||||||||
Pension benefits | $ | 2,242 | $ | 934 | ||||||||
Other retiree benefits | 110 | 113 | ||||||||||
Net operating loss and tax credit carryforwards | 101 | 116 | ||||||||||
Depreciation and amortization | (1,337 | ) | (1,346 | ) | ||||||||
Other | 106 | (74 | ) | |||||||||
Deferred income taxes-noncurrent | $ | 1,222 | $ | (257 | ) | |||||||
Business_Segment_Reporting_Tab
Business Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Operating Performance | Segment financial results were as follows: | |||||||||||
Total Net Sales (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 6,085 | $ | 6,489 | $ | 6,492 | ||||||
Intelligence, Information and Services | 5,984 | 6,045 | 6,335 | |||||||||
Missile Systems | 6,309 | 6,599 | 6,639 | |||||||||
Space and Airborne Systems | 6,072 | 6,371 | 6,823 | |||||||||
Corporate and Eliminations | (1,624 | ) | (1,798 | ) | (1,875 | ) | ||||||
Total | $ | 22,826 | $ | 23,706 | $ | 24,414 | ||||||
Intersegment Sales (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 107 | $ | 107 | $ | 91 | ||||||
Intelligence, Information and Services | 829 | 817 | 784 | |||||||||
Missile Systems | 140 | 163 | 161 | |||||||||
Space and Airborne Systems | 548 | 711 | 839 | |||||||||
Total | $ | 1,624 | $ | 1,798 | $ | 1,875 | ||||||
Operating Income (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 974 | $ | 1,115 | $ | 1,047 | ||||||
Intelligence, Information and Services | 508 | 510 | 536 | |||||||||
Missile Systems | 800 | 830 | 861 | |||||||||
Space and Airborne Systems | 846 | 920 | 988 | |||||||||
FAS/CAS Adjustment | 286 | (249 | ) | (255 | ) | |||||||
Corporate and Eliminations | (235 | ) | (188 | ) | (188 | ) | ||||||
Total | $ | 3,179 | $ | 2,938 | $ | 2,989 | ||||||
Components of FAS/CAS Adjustment [Table] | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
FAS/CAS Pension Adjustment | $ | 281 | $ | (253 | ) | $ | (255 | ) | ||||
FAS/CAS PRB Adjustment | 5 | 4 | — | |||||||||
FAS/CAS Adjustment | $ | 286 | $ | (249 | ) | $ | (255 | ) | ||||
Components of Operating Income | The components of operating income related to Corporate and Eliminations were as follows: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Intersegment profit eliminations | $ | (157 | ) | $ | (160 | ) | $ | (177 | ) | |||
Corporate | (78 | ) | (28 | ) | (11 | ) | ||||||
Total | $ | (235 | ) | $ | (188 | ) | $ | (188 | ) | |||
Intersegment Operating Income (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 8 | $ | 9 | $ | 8 | ||||||
Intelligence, Information and Services | 83 | 72 | 72 | |||||||||
Missile Systems | 14 | 17 | 24 | |||||||||
Space and Airborne Systems | 52 | 62 | 73 | |||||||||
Total | $ | 157 | $ | 160 | $ | 177 | ||||||
Schedule of Capital Expenditures | ||||||||||||
Capital Expenditures (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 99 | $ | 69 | $ | 67 | ||||||
Intelligence, Information and Services | 41 | 28 | 34 | |||||||||
Missile Systems | 56 | 55 | 66 | |||||||||
Space and Airborne Systems | 117 | 117 | 132 | |||||||||
Corporate | 13 | 11 | 40 | |||||||||
Total | $ | 326 | $ | 280 | $ | 339 | ||||||
Schedule of Depreciation and Amortization | ||||||||||||
Depreciation and Amortization (in millions) | 2014 | 2013 | 2012 | |||||||||
Integrated Defense Systems | $ | 95 | $ | 96 | $ | 101 | ||||||
Intelligence, Information and Services | 57 | 62 | 65 | |||||||||
Missile Systems | 76 | 76 | 68 | |||||||||
Space and Airborne Systems | 168 | 158 | 161 | |||||||||
Corporate | 43 | 53 | 60 | |||||||||
Total | $ | 439 | $ | 445 | $ | 455 | ||||||
Components of Identifiable Assets | ||||||||||||
Total Assets (in millions) | 2014 | 2013 | ||||||||||
Integrated Defense Systems | $ | 4,128 | $ | 3,897 | ||||||||
Intelligence, Information and Services | 4,243 | 3,772 | ||||||||||
Missile Systems | 6,223 | 6,316 | ||||||||||
Space and Airborne Systems | 6,414 | 6,399 | ||||||||||
Corporate | 6,892 | 5,583 | ||||||||||
Total | $ | 27,900 | $ | 25,967 | ||||||||
Schedules of Total Net Sales and Property Plant and Equipment, net by Geographic Areas | ||||||||||||
Total Net Sales by Geographic Areas (in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 16,285 | $ | 17,260 | $ | 18,182 | ||||||
Asia/Pacific | 2,390 | 2,590 | 2,510 | |||||||||
Middle East and North Africa | 2,857 | 2,396 | 2,470 | |||||||||
All other (principally Europe) | 1,294 | 1,460 | 1,252 | |||||||||
Total | $ | 22,826 | $ | 23,706 | $ | 24,414 | ||||||
Property, Plant and Equipment, net by Geographic Area (in millions) | 2014 | 2013 | ||||||||||
United States | $ | 1,847 | $ | 1,841 | ||||||||
All other (principally Europe) | 88 | 96 | ||||||||||
Total | $ | 1,935 | $ | 1,937 | ||||||||
Schedule of Revenue by Major Customers | The following is a breakdown of net sales to major customers: | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Sales to the U.S. Government(1) | $ | 16,083 | $ | 17,019 | $ | 17,861 | ||||||
Sales to the U.S. Department of Defense(1) | 15,059 | 16,015 | 16,818 | |||||||||
Total international sales(2) | 6,541 | 6,446 | 6,232 | |||||||||
Foreign direct commercial sales(1) | 3,579 | 3,384 | 3,036 | |||||||||
Foreign military sales through the U.S. Government | 2,962 | 3,062 | 3,196 | |||||||||
-1 | Excludes foreign military sales through the U.S. Government. | |||||||||||
-2 | Includes foreign military sales through the U.S. Government. |
Quarterly_Operating_Results_Un
Quarterly Operating Results, Unaudited (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ||||||||||||||||
(In millions, except per share amounts, stock prices and workdays) | ||||||||||||||||
2014 | First(3) | Second | Third | Fourth | ||||||||||||
Total net sales | $ | 5,508 | $ | 5,701 | $ | 5,474 | $ | 6,143 | ||||||||
Gross margin | 1,347 | 1,400 | 1,303 | 1,481 | ||||||||||||
Income from continuing operations | 593 | 501 | 519 | 580 | ||||||||||||
Net income attributable to Raytheon Company | 596 | 551 | 515 | 582 | ||||||||||||
EPS from continuing operations attributable to Raytheon Company | ||||||||||||||||
common stockholders(1) | ||||||||||||||||
Basic | $ | 1.87 | $ | 1.59 | $ | 1.66 | $ | 1.86 | ||||||||
Diluted | 1.87 | 1.59 | 1.65 | 1.86 | ||||||||||||
EPS attributable to Raytheon Company common stockholders(1) | ||||||||||||||||
Basic | 1.89 | 1.76 | 1.66 | 1.88 | ||||||||||||
Diluted | 1.89 | 1.76 | 1.65 | 1.88 | ||||||||||||
Cash dividends per share | ||||||||||||||||
Declared | 0.605 | 0.605 | 0.605 | 0.605 | ||||||||||||
Paid | 0.55 | 0.605 | 0.605 | 0.605 | ||||||||||||
Common stock prices | ||||||||||||||||
High | $ | 101.31 | $ | 101.47 | $ | 103.35 | $ | 110.47 | ||||||||
Low | 88.13 | 94.08 | 89.43 | 93.85 | ||||||||||||
Workdays(2) | 62 | 64 | 63 | 60 | ||||||||||||
2013 | First(4) | Second | Third | Fourth | ||||||||||||
Total net sales | $ | 5,879 | $ | 6,115 | $ | 5,842 | $ | 5,870 | ||||||||
Gross margin | 1,274 | 1,362 | 1,308 | 1,230 | ||||||||||||
Income from continuing operations | 496 | 493 | 491 | 469 | ||||||||||||
Net income attributable to Raytheon Company | 488 | 488 | 489 | 531 | ||||||||||||
EPS from continuing operations attributable to Raytheon Company | ||||||||||||||||
common stockholders(1) | ||||||||||||||||
Basic | $ | 1.5 | $ | 1.5 | $ | 1.51 | $ | 1.46 | ||||||||
Diluted | 1.49 | 1.5 | 1.51 | 1.46 | ||||||||||||
EPS attributable to Raytheon Company common stockholders(1) | ||||||||||||||||
Basic | 1.49 | 1.5 | 1.52 | 1.66 | ||||||||||||
Diluted | 1.49 | 1.5 | 1.51 | 1.66 | ||||||||||||
Cash dividends per share | ||||||||||||||||
Declared | 0.55 | 0.55 | 0.55 | 0.55 | ||||||||||||
Paid | 0.5 | 0.55 | 0.55 | 0.55 | ||||||||||||
Common stock prices | ||||||||||||||||
High | $ | 59.01 | $ | 68.07 | $ | 80.69 | $ | 91.04 | ||||||||
Low | 52.67 | 56.22 | 64.82 | 73.97 | ||||||||||||
Workdays(2) | 63 | 64 | 63 | 59 | ||||||||||||
-1 | EPS is computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for each year. | |||||||||||||||
-2 | Number of workdays per our fiscal calendar, which excludes holidays and weekends. | |||||||||||||||
-3 | In January 2014, a foreign subsidiary authorized and completed a transaction which resulted in a taxable dividend of approximately $115 million and generated a net tax benefit of approximately $80 million, which is reflected in our first quarter of 2014 results. | |||||||||||||||
-4 | During the first quarter of 2013, we recorded a $25 million benefit for the 2012 research and development (R&D) tax credit. In January 2013, Congress approved legislation that included the extension of the R&D tax credit. The legislation retroactively reinstated the R&D tax credit for 2012 and extended it through December 31, 2013. As a result, we recorded the 2012 benefit in the first quarter of 2013. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Research and Development Expense | $500,000,000 | $465,000,000 | $451,000,000 |
Cash And Cash Equivalent Maturities Date | P90D | ||
Short-term investments | 1,497,000,000 | 1,001,000,000 | |
Short-term investment, Terms | P5M | ||
Proceeds from Sale of Available-for-sale Securities | 882,000,000 | 325,000,000 | 150,000,000 |
Available-for-sale Securities, Gross Realized Gain (Loss) | 1,000,000 | ||
Net deferred contract costs | 223,000,000 | 279,000,000 | |
Operating income | 3,179,000,000 | 2,938,000,000 | 2,989,000,000 |
Capitalized precontract and other deferred costs, work in process inventories | 126,000,000 | 100,000,000 | |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 892,000,000 | 1,154,000,000 | 942,000,000 |
Defined benefit pension and other post employee benefit plans tax benefits | 4,005,000,000 | 2,780,000,000 | |
AOCL Derivatives Qualifying As Hedges Tax Benefit | 8,000,000 | 4,000,000 | |
Unrealized Gains On Investments, Tax Liabilities | 2,000,000 | 4,000,000 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | -6,000,000 | ||
Number of years investment gain and losses spread | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | -1,000,000 | 1,000,000 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 1,000,000 | ||
Software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Computer Software, net, estimated useful lives, in years | 10 years | ||
FAS CAS Adjustment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Operating income | 286,000,000 | -249,000,000 | -255,000,000 |
Sales Revenue, Goods, Net [Member] | US Government Contacts Excluding FMS Sales [Member] | |||
Significant Accounting Policies [Line Items] | |||
Sales breakout | 70.00% | 72.00% | 73.00% |
Sales Revenue, Goods, Net [Member] | International Sales, including Foreign Military Sales [Member] | |||
Significant Accounting Policies [Line Items] | |||
Sales breakout | 29.00% | 27.00% | 26.00% |
Fair Value, Inputs, Level 2 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Short-term investments | $1,497,000,000 | $1,001,000,000 | |
Interest Rate Swap [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of Interest Rate Derivatives Held | 0 | 0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Net EAC adjustments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net EAC adjustments [Line Items] | |||||||||||
Operating income | $3,179 | $2,938 | $2,989 | ||||||||
Income from continuing operations attributable to Raytheon Company | 580 | 519 | 501 | 593 | 469 | 491 | 493 | 496 | 2,179 | 1,932 | 1,889 |
Income (Loss) from Continuing Operations, Per Diluted Share | $1.86 | $1.65 | $1.59 | $1.87 | $1.46 | $1.51 | $1.50 | $1.49 | $6.97 | $5.96 | $5.65 |
Contracts Accounted for under Percentage of Completion [Member] | |||||||||||
Net EAC adjustments [Line Items] | |||||||||||
Operating income | 513 | 557 | 613 | ||||||||
Income from continuing operations attributable to Raytheon Company | $333 | $362 | $398 | ||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $1.07 | $1.12 | $1.19 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Inventory) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Materials and purchased parts | $70 | $73 |
Work in process | 326 | 279 |
Finished goods | 18 | 11 |
Total | $414 | $363 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Property, Plant and Equipment, Net) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 45 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign exchange translation - Before-tax amount | ($50) | ($13) | $35 | |
Foreign exchange translation - Tax (expense) benefit | 0 | 0 | 0 | |
Foreign exchange translation - Net of tax amount | -50 | -13 | 35 | |
Cash flow hedges and interest rate locks - Before tax amount | -10 | -4 | 13 | |
Cash flow hedges and interest rate locks - Tax (expense) benefit | 4 | 1 | -5 | |
Cash flow hedges and interest rate locks - Net of tax amount | -6 | -3 | 8 | |
Unrealized gains (losses) on investments and other, net - Before tax amount | 1 | 1 | -6 | |
Unrealized gain (loss) on investments and other, net - Tax (expense) benefit | -1 | 0 | 1 | |
Unrealized gain (loss) on investments and other, net - Net of tax amount | 0 | 1 | -5 | |
Pension and other employee benefit plans, net - Before tax amount | -3,514 | 4,128 | -1,275 | |
Pension and other employee benefit plans, net - Tax (expense) benefit | 1,225 | -1,438 | 450 | |
Pension and other employee benefit plans, net - Net of tax amount | -2,289 | 2,690 | -825 | |
Accumulated Other Comprehensive Income (Loss), Foreign Exchange Translation | -3 | 47 | 60 | 25 |
Accumulated Other Comprehensive Income (Loss), Cash flow hedges and interest rate locks | -14 | -8 | -5 | -13 |
Accumulated Other Comprehensive Income (Loss), Unrealized gains (losses) on investments, and other, net | -9 | -9 | -10 | -5 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net | -7,432 | -5,143 | -7,833 | -7,008 |
Other comprehensive income (loss), before tax | -3,573 | 4,112 | -1,233 | |
Other comprehensive income (loss) Tax (Expense) or Benefit | 1,228 | -1,437 | 446 | |
Other comprehensive income (loss), net of tax | -2,345 | 2,675 | -787 | |
Accumulated other comprehensive loss | ($7,458) | ($5,113) | ($7,788) | ($7,001) |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 6 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $427 | $9 | $301 | ||
Goodwill | 13,061 | 12,764 | 12,756 | 12,756 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 126 | 3 | 80 | 80 | |
Tax deductible goodwill related to acquisitions | 489 | ||||
Blackbird [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 427 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 34 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 0 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 4 | ||||
Goodwill | 301 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 126 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | -34 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | -4 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Visual Analytics [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 12 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
SafeNet Government Solutions [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 280 | ||||
Goodwill | 195 | 195 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 75 | 75 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||||
Teligy Inc. and Poseidon Scientific Instruments Pty ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 22 | ||||
Goodwill | 15 | 15 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $5 | $5 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
Acquisitions_Rollforward_of_Go
Acquisitions (Rollforward of Goodwill by Segments) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning balance | $12,764 | $12,756 |
Increase for acquisitions | 301 | 10 |
Effect of foreign exchange rates and other | -4 | -2 |
Ending Balance | 13,061 | 12,764 |
Integrated Defense Systems | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,800 | 1,799 |
Increase for acquisitions | 0 | 0 |
Effect of foreign exchange rates and other | -3 | 1 |
Ending Balance | 1,797 | 1,800 |
Intelligence, Information and Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,708 | 2,699 |
Increase for acquisitions | 301 | 12 |
Effect of foreign exchange rates and other | -1 | -3 |
Ending Balance | 3,008 | 2,708 |
Missile Systems | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,150 | 4,150 |
Increase for acquisitions | 0 | 0 |
Effect of foreign exchange rates and other | 0 | 0 |
Ending Balance | 4,150 | 4,150 |
Space and Airborne Systems | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,106 | 4,108 |
Increase for acquisitions | 0 | -2 |
Effect of foreign exchange rates and other | 0 | 0 |
Ending Balance | $4,106 | $4,106 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $81 | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 52 | ||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 1 | 56 | |
Disposal Group, Including Discontinued Operation, Other Current Liabilities | 15 | 16 | |
Discontinued Operations [Member] | Flight Options [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Excise Tax Dispute Payment Expense Recognized Discontinued Operations | 39 | ||
Gain (Loss) Related to Litigation Settlement | 33 | ||
Discontinued Operations [Member] | RAAS [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $25 |
Contracts_in_Process_Net_Narra
Contracts in Process, Net (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Contracts in Process, Net [Line Items] | |
Costs in Excess of Billings on Uncompleted Contracts or Programs Expected to be Collected after One Year | $190 |
Retentions | 50 |
Retentions to be collected next year | $5 |
Contracts_in_Process_Net_Contr
Contracts in Process, Net (Contracts in Process) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Contracts in Process, Net [Line Items] | ||
Allowance for doubtful accounts | ($4) | ($4) |
Contracts in process, net | 4,985 | 4,870 |
US Government [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 635 | 864 |
Unbilled | 9,228 | 8,926 |
Progress payments | -5,834 | -6,003 |
Contracts in process, Gross, Current | 4,029 | 3,787 |
Other Customers [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 407 | 359 |
Unbilled | 1,154 | 1,433 |
Progress payments | -601 | -705 |
Contracts in process, Gross, Current | 960 | 1,087 |
Fixed-Price [Member] | ||
Contracts in Process, Net [Line Items] | ||
Allowance for doubtful accounts | -4 | -4 |
Contracts in process, net | 3,725 | 3,555 |
Fixed-Price [Member] | US Government [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 226 | 374 |
Unbilled | 8,418 | 8,139 |
Progress payments | -5,834 | -6,003 |
Contracts in process, Gross, Current | 2,810 | 2,510 |
Fixed-Price [Member] | Other Customers [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 393 | 343 |
Unbilled | 1,127 | 1,411 |
Progress payments | -601 | -705 |
Contracts in process, Gross, Current | 919 | 1,049 |
Cost-Type [Member] | ||
Contracts in Process, Net [Line Items] | ||
Allowance for doubtful accounts | 0 | 0 |
Contracts in process, net | 1,260 | 1,315 |
Cost-Type [Member] | US Government [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 409 | 490 |
Unbilled | 810 | 787 |
Progress payments | 0 | 0 |
Contracts in process, Gross, Current | 1,219 | 1,277 |
Cost-Type [Member] | Other Customers [Member] | ||
Contracts in Process, Net [Line Items] | ||
Billed | 14 | 16 |
Unbilled | 27 | 22 |
Progress payments | 0 | 0 |
Contracts in process, Gross, Current | $41 | $38 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $301 | $303 | $318 |
Property_Plant_and_Equipment_N3
Property, Plant and Equipment, Net (Property, Plant and Equipment, Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $103 | $104 |
Buildings and improvements | 2,607 | 2,547 |
Machinery and equipment | 3,716 | 3,605 |
Property, plant and equipment, gross | 6,426 | 6,256 |
Accumulated depreciation and amortization | -4,491 | -4,319 |
Property, Plant and Equipment, Net | $1,935 | $1,937 |
Other_Assets_Net_Narrative_Det
Other Assets, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Assets, Net [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $126 | $3 | $80 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 127 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 108 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 72 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 59 | ||
TRS [Member] | |||
Other Assets, Net [Line Items] | |||
Equity Method Investments | 98 | 71 | |
Equity method investments - TRS undistributed earnings | 60 | ||
Receivables due to TRS LLC from Air Command Systems International (ACSI) | 18 | ||
Minimum [Member] | |||
Other Assets, Net [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Maximum [Member] | |||
Other Assets, Net [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years | ||
Computer Software, Intangible Asset [Member] | |||
Other Assets, Net [Line Items] | |||
Intangible assets amortization expense | 79 | 82 | 88 |
Other Intangible Assets [Member] | |||
Other Assets, Net [Line Items] | |||
Intangible assets amortization expense | $58 | $60 | $49 |
Other_Assets_Net_Schedule_of_O
Other Assets, Net (Schedule of Other Assets Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets, Net [Line Items] | ||
Marketable securities held in trust | $519 | $479 |
Computer software, net of accumulated amortization of $992 and $918 at December 31, 2014 and 2013, respectively | 313 | 340 |
Other intangible assets, net of accumulated amortization of $293 and $242 at December 31, 2014 and 2013, respectively | 303 | 235 |
Other noncurrent assets, net | 246 | 330 |
Deferred Tax Assets, Gross, Noncurrent | 1,231 | 66 |
Total | 2,612 | 1,450 |
Capitalized Computer Software, Accumulated Amortization | 922 | 918 |
Finite-Lived Intangible Assets, Accumulated Amortization | $293 | $242 |
Other_Assets_Net_Schedule_of_I
Other Assets, Net (Schedule of Investments Included in Other Assets Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets, Net [Line Items] | ||
Investments | $109 | $80 |
TRS [Member] | ||
Other Assets, Net [Line Items] | ||
Equity Method Investments | 98 | 71 |
Equity Method Investment, Ownership Percentage | 50.00% | |
Other Entities [Member] | ||
Other Assets, Net [Line Items] | ||
Investments | $11 | $9 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | |||
Foreign currency forward contracts maturing in next 12 months | $551 | ||
Foreign currency forward contracts maturing in next two years | 224 | ||
Foreign currency forward contracts maturing in next three years | 116 | ||
Foreign currency forward contracts maturing in next four years | 14 | ||
Foreign currency forward contracts maturing in the next five years and thereafter | 21 | ||
Gain (loss) recognized in AOCL | -13 | -1 | |
Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign currency forward contracts, off-set or netting provisions, fair value of counterparty default exposure | 1 | 1 | |
$1.1B Fixed rate debt [Member] | |||
Derivative [Line Items] | |||
Gain (loss) recognized in AOCL | 3 | ||
Debt Instrument, Face Amount | 1,100 | ||
Debt Instrument, Maturity Date | 15-Dec-22 | ||
$600M Fixed-rate debt [Member] | |||
Derivative [Line Items] | |||
Gain (loss) recognized in AOCL | 1 | ||
Debt Instrument, Face Amount | 600 | ||
Debt Instrument, Maturity Date Range, Start | 15-Dec-24 | ||
Debt Instrument, Maturity Date Range, End | 15-Dec-44 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Number of Interest Rate Derivatives Held | 0 | 0 | |
Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivatives, Notional Amount | 926 | 1,396 | |
Foreign Currency Forward Contracts Net Exposure | 57 | 78 | |
Interest Rate Contract [Member] | $1.1B Fixed rate debt [Member] | |||
Derivative [Line Items] | |||
Derivatives, Notional Amount | 700 | ||
Interest Rate Contract [Member] | $600M Fixed-rate debt [Member] | |||
Derivative [Line Items] | |||
Derivatives, Notional Amount | $100 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Fair Value of Asset and Liability Derivatives Related to Foreign Currency Forward Contracts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $7 | $23 |
Liability Derivatives | 24 | 26 |
Derivatives designated as hedging instruments | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 5 | 20 |
Liability Derivatives | 19 | 23 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 2 | 3 |
Liability Derivatives | $5 | $3 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Pretax Gains (Losses) Related to Foreign Currency Forward Contracts Designated as Cash Flow Hedges) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (loss) recognized in operating income | $0 | $0 |
Gain (loss) recognized in AOCL | -13 | -1 |
Gain (loss) reclassified from AOCL to operating income | ($2) | $3 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments Derivative Financial Instruments (Pretax gains (losses) related to foreign currency contracts not designated as cashflow hedges (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | ($3) | ($1) |
Notes_Payable_and_Longterm_Deb2
Notes Payable and Long-term Debt (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
lenders | lenders | ||||
Notes Payable and Long-term Debt [Line Items] | |||||
Long-term Line of Credit | $0 | $0 | $0 | ||
Debt Instrument, Basis Spread on Variable Rate on $1.4B credit facility maturing in 2016 | 0.80% | ||||
Issuance of long-term debt, net of offering costs | 592,000,000 | 0 | 1,092,000,000 | ||
Proceeds to exercise rights to call and repurchase long-term debt | 970,000,000 | 0 | 0 | 970,000,000 | |
Gains (Losses) on Extinguishment of Debt | -29,000,000 | ||||
Extinguishment of Debt, Gain (Loss), Net of Tax | -19,000,000 | ||||
Number of highly rated lenders on $1.4B credit facility maturing in 2016 | 25 | 25 | |||
Outstanding letters of credit that effectively reduced our borrowing capacity under credit facility on $1.4B credit facility maturing in 2016 | 2,000,000 | 2,000,000 | 2,000,000 | ||
Ratio of indebtedness to net capital on $1.4B credit facility maturing in 2016 | 0.359 | 0.359 | |||
Total payments for interest on notes payable and long term debt | 209,000,000 | 210,000,000 | 198,000,000 | ||
Credit Facility Maturing In 2016 [Member] | |||||
Notes Payable and Long-term Debt [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,400,000,000 | ||||
$600M Fixed-rate debt [Member] | |||||
Notes Payable and Long-term Debt [Line Items] | |||||
Issuance of long-term debt, net of offering costs | 592,000,000 | ||||
Debt Instrument, Face Amount | 600,000,000 | 600,000,000 | |||
$1.1B Fixed rate debt [Member] | |||||
Notes Payable and Long-term Debt [Line Items] | |||||
Issuance of long-term debt, net of offering costs | 1,092,000,000 | ||||
Debt Instrument, Face Amount | $1,100,000,000 | ||||
Maximum [Member] | |||||
Notes Payable and Long-term Debt [Line Items] | |||||
Aggregate Maximum Percentage Of Any Single Lender on $1.4B credit facility maturing in 2016 | 10.00% | 10.00% | |||
Ratio of indebtedness to net capital on $1.4B credit facility maturing in 2016 | 0.6 | 0.6 |
Notes_Payable_and_Longterm_Deb3
Notes Payable and Long-term Debt (Schedule of Notes Payable and Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notes Payable and Long-term Debt [Line Items] | ||
Total debt issued and outstanding | $5,330 | $4,734 |
$251 notes due 2018, 6.75% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.75% | |
Total debt issued and outstanding | 251 | 251 |
$340 notes due 2018, 6.40% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.40% | |
Total debt issued and outstanding | 339 | 339 |
$500 notes due 2020, 4.40% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.40% | |
Total debt issued and outstanding | 498 | 497 |
$1,000 notes due 2020, 3.125% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.13% | |
Total debt issued and outstanding | 993 | 992 |
$1,100 notes due 2022, 2.50% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | |
Total debt issued and outstanding | 1,093 | 1,092 |
$300 Notes Due 2024, 3.15% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.15% | |
Total debt issued and outstanding | 297 | 0 |
$382 notes due 2027, 7.20% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.20% | |
Total debt issued and outstanding | 370 | 369 |
$185 notes due 2028, 7.00% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.00% | |
Total debt issued and outstanding | 184 | 184 |
$600 notes due 2040, 4.875% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.88% | |
Total debt issued and outstanding | 591 | 591 |
$425 notes due 2041, 4.70% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.70% | |
Total debt issued and outstanding | 419 | 419 |
$300 Notes Due 2044, 4.20% | ||
Notes Payable and Long-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.20% | |
Total debt issued and outstanding | $295 | $0 |
Notes_Payable_and_Longterm_Deb4
Notes Payable and Long-term Debt Notes Payable and Long-term Debt (Fair value of long-term debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Long-term Debt, Fair Value | $5,936 | $5,036 |
Notes_Payable_and_Longterm_Deb5
Notes Payable and Long-term Debt (Adjustments and payments to the Principal Amounts of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notes Payable and Long-term Debt [Line Items] | ||
Principal | $5,383 | $4,783 |
Unamortized issue discounts | -43 | -38 |
Unamortized interest rate lock costs | -10 | -11 |
Total | 5,330 | 4,734 |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 591 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 1997 | Dec. 31, 1997 | Apr. 03, 2011 | Dec. 31, 2014 | Mar. 31, 2013 | Oct. 03, 2011 | Jun. 30, 2011 | Apr. 06, 2011 | Mar. 23, 2011 | Mar. 22, 2011 | Dec. 31, 2014 | Aug. 15, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Thales- Raytheon Systems Co. Ltd.[Member] | Thales- Raytheon Systems Co. Ltd.[Member] | Increase in Letters of Credit [Member] | Attributable to International Programs [Member] | Brazilian Government [Member] | Brazilian Government [Member] | Brazilian Government [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | UKBA [Member] | RSL [Member] | RSL [Member] | Maximum [Member] | |
USD ($) | USD ($) | Letter of Credit [Member] | Bonds [Member] | USD ($) | USD ($) | Export-Import Loan [Member] | USD ($) | USD ($) | GBP (£) | GBP (£) | GBP (£) | USD ($) | GBP (£) | USD ($) | USD ($) | GBP (£) | USD ($) | |||||
USD ($) | USD ($) | USD ($) | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||
Rent expense | $225,000,000 | $248,000,000 | $258,000,000 | |||||||||||||||||||
Guarantees | 266,000,000 | 378,000,000 | 196,000,000 | 233,000,000 | 60,000,000 | 133,000,000 | ||||||||||||||||
Letters of Credit Outstanding, Amount | 1,938,000,000 | 1,424,000,000 | 244,000,000 | 268,000,000 | 514,000,000 | 500,000,000 | ||||||||||||||||
Guarantees, Fair Value Disclosure | 9,000,000 | 8,000,000 | ||||||||||||||||||||
Joint venture threshold for payment | 50,000,000 | |||||||||||||||||||||
Bank Loans | 1,300,000,000 | |||||||||||||||||||||
Notional value of offset agreement with certain customers in foreign countries | 5,000,000,000 | |||||||||||||||||||||
Letter Of Credit Termination Demand | 80,000,000 | |||||||||||||||||||||
Arbitration Claim | 545,000,000 | 350,000,000 | ||||||||||||||||||||
Letter of credit drawdown | 80,000,000 | |||||||||||||||||||||
Adjustment to operating income for IIS | 80,000,000 | |||||||||||||||||||||
Counter claim by plaintiff | 778,000,000 | 500,000,000 | ||||||||||||||||||||
Increase in claim by plaintiff | 32,000,000 | |||||||||||||||||||||
Interest amount related to the increase in claim by plaintiff | 33,000,000 | |||||||||||||||||||||
Revised claim plaintiff | 646,000,000 | 415,000,000 | ||||||||||||||||||||
Updated to revised claim by plaintiff | 470,000,000 | 302,000,000 | ||||||||||||||||||||
Unbilled Receivables Exposure On Contract Termination | 40,000,000 | |||||||||||||||||||||
Gain Contingency, Unrecorded Amount | 288,000,000 | 185,000,000 | ||||||||||||||||||||
COFD Demand for Payment | 241,000,000 | |||||||||||||||||||||
Future Minimum Payments Due for IT outsourcing | $5,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Annual Rentals on a Lease Basis) (Details) (USD $) | Dec. 31, 2014 |
Lease Commitments [Line Items] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $186,000,000 |
Operating Leases, Future Minimum Payments Due in Two Years | 156,000,000 |
Operating Leases, Future Minimum Payments Due in Three Years | 131,000,000 |
Operating Leases, Future Minimum Payments Due in Four Years | 110,000,000 |
Operating Leases, Future Minimum Payments, Due in Five Years | 76,000,000 |
Operating Leases, Future Minimum Payments Due Thereafter | $288,000,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Estimates of Total Remediation Costs, Weighted Average Risk-Free Rate, Total Remediation Costs - Discounted and Recoverable Portion) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Total remediation costs - undiscounted | $202 | $198 |
Weighted average risk-free rate | 5.50% | 5.60% |
Total remediation costs - discounted | 131 | 133 |
Recoverable portion | $80 | $90 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Schedule of Environmental Remediation Costs) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Loss Contingencies [Line Items] | |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Next Twelve Months | $30 |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Second Year | 21 |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Third Year | 14 |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Fourth Year | 14 |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Fifth Year | 11 |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in after Fifth Year | $112 |
Commitments_and_Contingencies_5
Commitments and Contingencies (Stated Values Outstanding) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Guarantees | $266 | $378 |
Letters of Credit | 1,938 | 1,424 |
Surety Bonds | $298 | $238 |
Commitments_and_Contingencies_6
Commitments and Contingencies (Activity Related to Product Warranty Accruals) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $30 | $33 | $38 |
Provisions for warranties | 9 | 3 | 5 |
Warranty services provided | -7 | -6 | -10 |
Ending balance | $32 | $30 | $33 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Billions, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 20, 2013 |
Stockholders' Equity [Line Items] | ||||||||||||
Stock Options Included In the Calculation Of EPS (dilutive) | 0 | 0.1 | 0.9 | |||||||||
Available outstanding common stock under repurchase programs | $1.50 | $1.50 | ||||||||||
Percentage Of Change In Dividends Paid Per Share | 10.00% | |||||||||||
Dividends declared | $0.61 | $0.61 | $0.61 | $0.61 | $0.55 | $0.55 | $0.55 | $0.55 | $2.42 | $2.20 | $2 | |
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0.21 | $0.20 | $0 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0.21 | $0.20 | $0 | |||||||||
Number of preferred stocks authorized by BOD | 200 | 200 | ||||||||||
Preferred stock par value per share | $0.01 | $0.01 | ||||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | 0 | ||||||||
Minimum [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Dividends declared | $2.42 | $2.20 | ||||||||||
Maximum [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock Options Included In the Calculation Of EPS (dilutive) | 1 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | ($0.01) | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | ($0.01) | |||||||||||
November Two Thousand Thirteen Board Of Directors Authorization [Member] [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock Repurchase Program, Authorized Amount | $2 |
Stockholders_Equity_Changes_in
Stockholders' Equity (Changes in Shares of Common Stock Outstanding) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | |||
Beginning balance | 314.5 | 328.1 | 338.9 |
Stock plans activity | 1.4 | 2.4 | 5.8 |
Stock repurchases | -8.6 | -16 | -16.6 |
Ending balance | 307.3 | 314.5 | 328.1 |
Stockholders_Equity_Repurchase
Stockholders' Equity (Repurchases of Common Stock Under Share Repurchase Programs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity, Class of Treasury Stock [Line Items] | |||
Total Stock Repurchases | $840 | $1,123 | $862 |
Total Stock Repurchases | 8.6 | 16 | 16.6 |
Share Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Stock Repurchases | 750 | 1,075 | 825 |
Total Stock Repurchases | 7.7 | 15.2 | 15.9 |
Satisfy tax withholding [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Stock Repurchases | $90 | $48 | $37 |
Total Stock Repurchases | 0.9 | 0.8 | 0.7 |
Stockholders_Equity_EPS_from_C
Stockholders' Equity (EPS from Continuing Operations Attributable to Raytheon Company Common Stockholders and Unvested Share-Based Payment Awards) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basic EPS attributable to Raytheon Company common stockholders: | |||||||||||
Distributed earnings | $2.39 | $2.19 | $1.98 | ||||||||
Undistributed earnings | $4.59 | $3.78 | $3.69 | ||||||||
Total | $1.86 | $1.66 | $1.59 | $1.87 | $1.46 | $1.51 | $1.50 | $1.50 | $6.98 | $5.97 | $5.67 |
Diluted EPS attributable to Raytheon Company common stockholders: | |||||||||||
Distributed earnings | $2.39 | $2.18 | $1.98 | ||||||||
Undistributed earnings | $4.58 | $3.78 | $3.67 | ||||||||
Total | $1.86 | $1.65 | $1.59 | $1.87 | $1.46 | $1.51 | $1.50 | $1.49 | $6.97 | $5.96 | $5.65 |
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity (Income attributable to participating securities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity [Line Items] | |||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | $40 | $39 | $36 |
Continuing Operations [Member] | |||
Stockholders' Equity [Line Items] | |||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 39 | 38 | 36 |
Discontinued Operations [Member] | |||
Stockholders' Equity [Line Items] | |||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 1 | 1 | 0 |
Maximum [Member] | Discontinued Operations [Member] | |||
Stockholders' Equity [Line Items] | |||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | ($1) |
Stockholders_Equity_WeightedAv
Stockholders' Equity (Weighted-Average Shares Outstanding for Basic and Diluted EPS) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | |||
Shares for basic EPS (including 5.5 participating securities for 2014, 6.4 for 2013, and 6.3 for 2012) | 312 | 323.4 | 333.2 |
Dilutive effect of stock options and LTPP | 0.6 | 0.8 | 1 |
Shares for diluted EPS | 312.6 | 324.2 | 334.2 |
Shares for basic EPS, participating securities | 5.5 | 6.4 | 6.3 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Options Included in and Excluded from Calculations) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | |
Stock Options Included In the Calculation Of EPS (dilutive) | 0 | 100,000 | 900,000 |
Stockbased_Compensation_Plans_1
Stock-based Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense related to nonvested awards not yet recognized | $161 | ||
Compensation expense related to nonvested awards expected to be recognized over a weighted-average period, years | 1 year 7 months | ||
Shares authorized under the 2001 stock plan and 1997 nonemployee Directors Restricted Stock Plan | 41,800,000 | ||
Shares available for awards under the 2001 stock plan and 1997 nonemployee Directors Restricted Stock Plan | 7,000,000 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 300,000 | ||
Share-based Compensation Expense | 25 | ||
Share-based Compensation Expense, Net of Tax | 17 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 3 | 23 | |
Total intrinsic value of options exercised | 3 | 21 | 38 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,000 | 52,000 | |
Options vested | 0 | 0 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Weighted Target Award | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $1 | ||
Long-Term Performance Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Return on invested capital, weighted | 50.00% | ||
Share Based Compensation Arrangement By Share Based Payment Award, Weight of Total Shareholder Return | 25.00% | ||
Cumulative free cash flow, weighted | 25.00% | ||
Long-Term Performance Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Weighted Target Award | 200.00% | ||
Long-Term Performance Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Nonemployee Director [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Employee [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stockbased_Compensation_Plans_2
Stock-based Compensation Plans Stock-based compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $148 | $129 | $122 |
Stock-based tax benefit | $48 | $39 | $37 |
Stockbased_Compensation_Plans_3
Stock-based Compensation Plans (Restricted Stock Activity Disclosure) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period | 5,337 | 5,838 | 5,539 | |
Granted | 1,355 | 1,855 | 2,370 | |
Vested | -1,648 | -1,708 | -1,733 | |
Forfeited | -526 | -648 | -338 | |
Outstanding at end of period | 4,518 | 5,337 | 5,838 | |
Weighted-average grant date fair value of restricted stock outstanding | $69.76 | $56.10 | $49.98 | $50.38 |
Weighted-average grant date fair value of restricted stock granted | $96.84 | $67.46 | $50.38 | |
Weighted-average grant date fair value of restricted stock vested | $51.30 | $48.93 | $51.78 | |
Weighted-average grant date fair value of restricted stock forfeited | $58.74 | $52.39 | $50.07 |
Stockbased_Compensation_Plans_4
Stock-based Compensation Plans (Long-Term Performance Plan Activity) (Details) (Long-Term Performance Plan [Member], USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Long-Term Performance Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding at beginning of period | 1,827 | 1,420 | 991 | |
LTPP Shares granted | 280 | 402 | 484 | |
LTPP shares increase (decrease) | 99 | 398 | 407 | |
LTPP Shares vested | -664 | -383 | -462 | |
LTPP Shares forfeited | -134 | -10 | ||
Outstanding at end of period | 1,408 | 1,827 | 1,420 | |
Weighted-average grant date fair value of long-term performance plan stock outstanding | $60.53 | $54.13 | $52.57 | $50.07 |
Weighted-average grant date fair value of long-term performance plan stock granted | $97.59 | $61.38 | $50.83 | |
Weighted-average grant date fair value of long-term performance plan stock increase/decrease | $39.50 | $53.86 | $53.32 | |
Weighted-average grant date fair value of long-term performance plan stock vested | $52.33 | $55.74 | $46.04 | |
Weighted-average grant date fair value of long-term performance plan stock forfeited | $75.80 | $51.22 |
Pension_and_Other_Employee_Ben2
Pension and Other Employee Benefits (Narrative) (Details) (USD $) | 12 Months Ended | 348 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 1.00% | |||
Defined Contribution Plan, expense for contributions | $274,000,000 | $279,000,000 | $272,000,000 | |
Amount invested in defined contribution plan | 14,900,000,000 | 14,400,000,000 | 14,900,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 25,916,000,000 | 21,529,000,000 | 25,916,000,000 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 19,459,000,000 | 18,068,000,000 | 19,459,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 23,520,000,000 | 18,980,000,000 | 23,520,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 19,406,000,000 | 17,425,000,000 | 19,406,000,000 | |
Accumulated Benefit Obligation (ABO) | 24,298,000,000 | 21,050,000,000 | 24,298,000,000 | |
Probability that ROA will fall within the 25th and 75th percentile range | 50.00% | |||
Defined Benefit Plan Plan Assets Invested In Four Indices | 4,000,000,000 | 4,000,000,000 | ||
Net receivables and payables in fair value of other pension assets | 55,000,000 | 106,000,000 | 55,000,000 | |
FMV of Plan's derivatives upper limit | -7,000,000 | 20,000,000 | -7,000,000 | |
Level 1 [Member] | Marketable Securities in Trust [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Assets, Fair Value Disclosure | 519,000,000 | 479,000,000 | 519,000,000 | |
Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 170,000,000 | 95,000,000 | ||
Pension Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | 6,359,000,000 | 3,387,000,000 | 6,359,000,000 | |
Required contributions to pension plans expected | 335,000,000 | |||
Defined Benefit Plan, Net Periodic Benefit Expense (Income) | 895,000,000 | 1,240,000,000 | 1,093,000,000 | |
Projected benefit obligation for domestic and foreign qualified pension plans | 26,649,000,000 | 22,970,000,000 | 24,657,000,000 | 26,649,000,000 |
Discount rate | 4.06% | 5.06% | 4.06% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.67% | 8.67% | 8.68% | |
Defined Benefit Plan, Fair Value of Plan Assets | 20,220,000,000 | 19,628,000,000 | 17,450,000,000 | 20,220,000,000 |
Other Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 4.00% | 4.00% | 4.00% | |
Defined Benefit Pension Plan, Liabilities, Noncurrent | 352,000,000 | 288,000,000 | 352,000,000 | |
Required contributions to pension plans expected | 25,000,000 | |||
Defined Benefit Plan, Net Periodic Benefit Expense (Income) | 8,000,000 | 10,000,000 | 16,000,000 | |
Projected benefit obligation for domestic and foreign qualified pension plans | 782,000,000 | 732,000,000 | 818,000,000 | 782,000,000 |
Discount rate | 4.05% | 5.01% | 4.05% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.24% | 8.24% | 8.25% | |
Defined Benefit Plan, Fair Value of Plan Assets | 418,000,000 | 431,000,000 | 408,000,000 | 418,000,000 |
United States Pension Plan of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Projected benefit obligation for domestic and foreign qualified pension plans | 25,745,000,000 | 22,157,000,000 | 25,745,000,000 | |
Discount rate | 4.08% | 5.08% | 4.08% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.75% | 8.75% | ||
Actual return on assets | 6.00% | 15.00% | 12.00% | |
Defined Benefit Plan, Fair Value of Plan Assets | 19,352,000,000 | 18,822,000,000 | 19,352,000,000 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,394,000,000 | 7,660,000,000 | 7,394,000,000 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,387,000,000 | 1,508,000,000 | 1,119,000,000 | 2,387,000,000 |
Foreign Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Expense (Income) | -9,000,000 | 4,000,000 | 7,000,000 | |
Projected benefit obligation for domestic and foreign qualified pension plans | 904,000,000 | 813,000,000 | 904,000,000 | |
Defined Benefit Plan, Fair Value of Plan Assets | 868,000,000 | 806,000,000 | 868,000,000 | |
Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Percent company matches of employees contributions | 3.00% | |||
Effect of a 1% increase or decrease in assumed health care trend rate - accumulated postretirement benefit obligation | -7,000,000 | |||
Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Percent company matches of employees contributions | 4.00% | |||
Probability that ROA will fall below or above the 25th and 75th percentile range | 25.00% | |||
Defined Benefit Plan, Effect of One Percentage Point Increase or Decrease on Service and Interest Cost Components | 1,000,000 | |||
Effect of a 1% increase or decrease in assumed health care trend rate - accumulated postretirement benefit obligation | 7,000,000 | |||
Defined Benefit Plan Percent Of Plan Assets That Do Not Track An Index | 5.00% | 5.00% | ||
60th-65th percentile [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.75% | 8.75% | ||
65th-70th [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.75% | |||
50th percentile [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.59% | 7.51% | 7.99% | |
Master Trust [Member] | Other Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 185,000,000 | 189,000,000 | 185,000,000 | |
Nonqualified defined contribution plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 327,000,000 | 300,000,000 | 327,000,000 | |
Nonqualified defined contribution plans [Member] | Level 1 [Member] | Marketable Securities in Trust [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Assets, Fair Value Disclosure | 328,000,000 | 304,000,000 | 328,000,000 | |
Raytheon Stock Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Amount invested in defined contribution plan | 1,400,000,000 | 1,400,000,000 | 1,400,000,000 | |
Executive Officer [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | $39,000,000 | $34,000,000 | 39,000,000 | |
Geometric [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.50% | |||
Arithmetic [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.75% | |||
Defined Benefit Plan Actual Long Term Return On Assets Domestic | 9.19% |
Pension_and_Other_Employee_Ben3
Pension and Other Employee Benefits Pension and Other Employee Benefits (Fair value of plan assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
United States Pension Plan of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $19,352 | $18,822 |
Foreign Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $868 | $806 |
Pension_and_Other_Employee_Ben4
Pension and Other Employee Benefits Pension and Other Employee Benefits (Marketable securities held in trust) (Details) (Fair Value, Inputs, Level 1 [Member], Marketable Securities in Trust [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | Marketable Securities in Trust [Member] | ||
Marketable Securities [Line Items] | ||
Marketable securities held in trust | $519 | $479 |
Pension_and_Other_Employee_Ben5
Pension and Other Employee Benefits Pension and Other Employee Benefits (Pension Contributions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Pension Contributions | $650 | $778 | $721 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | 600 | 300 | 500 |
Other Postretirement Benefits Payments | 20 | 22 | 19 |
Pension and Other Postretirement Benefit Contributions | $1,270 | $1,100 | $1,240 |
Pension_and_Other_Employee_Ben6
Pension and Other Employee Benefits (Pension Benefits Expected to be Paid from Plans or Companies Assets) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $59 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 58 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 57 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 56 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 55 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 264 |
Pension Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 1,782 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,759 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,724 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,660 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1,410 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $7,786 |
Pension_and_Other_Employee_Ben7
Pension and Other Employee Benefits (Schedule of Components of Net Periodic Benefit Expense (Income) Pension) (Details) (Pension Plans [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | $448 | $579 | $516 |
Interest cost | 1,128 | 996 | 1,047 |
Expected return on plan assets | -1,580 | -1,495 | -1,422 |
Amounts reflected in net funded status | -4 | 80 | 141 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 7 | 9 | 10 |
Recognized net actuarial loss | 891 | 1,150 | 939 |
Loss due to curtailments/settlements | 1 | 1 | 3 |
Amounts reclassified during the year | 899 | 1,160 | 952 |
Net periodic cost (credit) | $895 | $1,240 | $1,093 |
Pension_and_Other_Employee_Ben8
Pension and Other Employee Benefits (Schedule of Components of Net Periodic Benefit Expense (Income) Other Benefits) (Details) (Other Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | $6 | $8 | $8 |
Interest cost | 35 | 32 | 38 |
Expected return on plan assets | -33 | -32 | -31 |
Amounts reflected in net funded status | 8 | 8 | 15 |
Amortization of transition obligation | 0 | 0 | 1 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | -1 | -2 | -3 |
Recognized net actuarial loss | 1 | 4 | 3 |
Amounts reclassified during the year | 0 | 2 | 1 |
Net periodic cost (credit) | $8 | $10 | $16 |
Pension_and_Other_Employee_Ben9
Pension and Other Employee Benefits (Schedule of Funded Status Amounts Recognized on the Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Noncurrent assets | $28 | $119 |
Current liabilities | -98 | -74 |
Noncurrent liabilities | -6,359 | -3,387 |
Net amount recognized on our balance sheets | -6,429 | -3,342 |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | -12 | -13 |
Noncurrent liabilities | -352 | -288 |
Net amount recognized on our balance sheets | ($364) | ($301) |
Recovered_Sheet1
Pension and Other Employee Benefits (Schedule of Reconciliation of Amounts on the Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Prior service (cost) credit | $4 | $5 |
Net loss | -98 | -23 |
Accumulated other comprehensive loss | -94 | -18 |
Accumulated contributions in excess (below) net periodic benefit or cost | -270 | -283 |
Net amount recognized on our balance sheets | -364 | -301 |
Pension Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Prior service (cost) credit | -18 | -13 |
Net loss | -11,325 | -7,892 |
Accumulated other comprehensive loss | -11,343 | -7,905 |
Accumulated contributions in excess (below) net periodic benefit or cost | 4,914 | 4,563 |
Net amount recognized on our balance sheets | ($6,429) | ($3,342) |
Recovered_Sheet2
Pension and Other Employee Benefits (Source of Change in Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Prior service (cost) credit arising during period | ($11) | $0 | ($2) |
Amortization of prior service cost (credit) included in net income | 6 | 7 | 7 |
Pension and other employee benefit plans, net | -3,514 | 4,128 | -1,275 |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Prior service (cost) credit arising during period | 0 | 0 | |
Amortization of prior service cost (credit) included in net income | -1 | -2 | |
Net change in prior service (cost) credit not recognized in net income during that period | -1 | -2 | |
Actuarial gain (loss) arising during period | -76 | 96 | |
Amortization of net actuarial (gain) loss included in net income | 1 | 4 | |
Net change in actuarial gain (loss) not included in net income during the period | -75 | 100 | |
Effect of exchange rates | 0 | 0 | |
Pension and other employee benefit plans, net | -76 | 98 | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Prior service (cost) credit arising during period | -11 | 0 | |
Amortization of prior service cost (credit) included in net income | 7 | 9 | |
Net change in prior service (cost) credit not recognized in net income during that period | -4 | 9 | |
Actuarial gain (loss) arising during period | -4,334 | 2,869 | |
Amortization of net actuarial (gain) loss included in net income | 891 | 1,150 | |
Net change in actuarial gain (loss) not included in net income during the period | -3,443 | 4,019 | |
Effect of exchange rates | 9 | 2 | |
Pension and other employee benefit plans, net | ($3,438) | $4,030 |
Recovered_Sheet3
Pension and Other Employee Benefits (Adjustment to Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Other Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Amortization of net loss | ($2) |
Amortization of prior service (cost) credit | 1 |
Total | -1 |
Pension Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Amortization of net loss | -1,129 |
Amortization of prior service (cost) credit | -7 |
Total | ($1,136) |
Recovered_Sheet4
Pension and Other Employee Benefits (PBO & ABO Schedule) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
ABO for domestic qualified pension plans | $24,298 | $21,050 |
Domestic Qualified Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
PBO for domestic qualified pension plans | 24,767 | 21,396 |
ABO for domestic qualified pension plans | 22,570 | 19,595 |
Asset values for domestic qualified pension plans | $19,352 | $18,822 |
Recovered_Sheet5
Pension and Other Employee Benefits (Schedule of Change in Projected Benefit Obligation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Projected benefit obligation at beginning of year | $732 | $818 | |
Service cost | 6 | 8 | 8 |
Interest cost | 35 | 32 | 38 |
Plan participants’ contributions | 50 | 43 | |
Amendments | 0 | 0 | |
Plan curtailments/settlements | 0 | 0 | |
Actuarial loss (gain) | 67 | -70 | |
Foreign exchange loss (gain) | 0 | 0 | |
Benefits paid | -108 | -99 | |
Projected benefit obligation at end of year | 782 | 732 | 818 |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Projected benefit obligation at beginning of year | 22,970 | 24,657 | |
Service cost | 448 | 579 | 516 |
Interest cost | 1,128 | 996 | 1,047 |
Plan participants’ contributions | 12 | 15 | |
Amendments | 12 | 0 | |
Plan curtailments/settlements | -4 | -6 | |
Actuarial loss (gain) | 4,007 | -1,798 | |
Foreign exchange loss (gain) | -42 | 0 | |
Benefits paid | -1,882 | -1,473 | |
Projected benefit obligation at end of year | $26,649 | $22,970 | $24,657 |
Recovered_Sheet6
Pension and Other Employee Benefits (Schedule of Change in Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | $431 | $408 |
Actual return (loss) on plan assets | 25 | 57 |
Company contributions | 20 | 22 |
Plan participants’ contributions | 50 | 43 |
Plan settlements | 0 | 0 |
Foreign exchange gain (loss) | 0 | 0 |
Benefits paid | -108 | -99 |
Fair value of plan assets at end of year | 418 | 431 |
Pension Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 19,628 | 17,450 |
Actual return (loss) on plan assets | 1,254 | 2,563 |
Company contributions | 1,250 | 1,078 |
Plan participants’ contributions | 12 | 15 |
Plan settlements | -4 | -6 |
Foreign exchange gain (loss) | -38 | 1 |
Benefits paid | -1,882 | -1,473 |
Fair value of plan assets at end of year | $20,220 | $19,628 |
Recovered_Sheet7
Pension and Other Employee Benefits (Schedule of Weighted-Average Net Periodic Benefit Cost Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Health care trend rate in the next year | 1.00% | ||
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 5.01% | 4.00% | 5.00% |
Expected long-term rate of return on plan assets | 8.24% | 8.24% | 8.25% |
Health care trend rate in the next year | 4.00% | 4.00% | 4.00% |
Gradually declining to an ultimate trend rate | 4.00% | 4.00% | 4.00% |
Year that the rate reaches ultimate trend rate | 2014 | 2013 | 2012 |
Other Benefits [Member] | Weighted Average [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 4.50% | 4.50% | 4.50% |
Other Benefits [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% |
Other Benefits [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 7.00% | 7.00% | 7.00% |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 5.06% | 4.15% | 5.00% |
Expected long-term rate of return on plan assets | 8.67% | 8.67% | 8.68% |
Pension Plans [Member] | Weighted Average [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 4.40% | 4.40% | 4.40% |
Pension Plans [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% |
Pension Plans [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 7.00% | 7.00% | 7.00% |
Recovered_Sheet8
Pension and Other Employee Benefits (Schedule of Weighted-Average Year-End Benefit Obligation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 4.06% | 5.06% | |
Pension Plans [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 7.00% | 7.00% | |
Pension Plans [Member] | Weighted Average [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.40% | 4.39% | |
Pension Plans [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.00% | 2.00% | |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 4.05% | 5.01% | |
Health care trend rate in the next year | 4.00% | 4.00% | |
Gradually declining to an ultimate trend rate of | 4.00% | 4.00% | 4.00% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2014 | 2013 | 2012 |
Other Benefits [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 7.00% | 7.00% | |
Other Benefits [Member] | Weighted Average [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.50% | 4.50% | |
Other Benefits [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.00% | 2.00% |
Recovered_Sheet9
Pension and Other Employee Benefits Pension and Other Employee Benefits (Long term returns used in ROA assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
25th percentile [Member] | |||
Long term returns used in ROA assumptions [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.53% | 5.62% | 6.15% |
75th percentile [Member] | |||
Long term returns used in ROA assumptions [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 9.65% | 9.41% | 9.84% |
Recovered_Sheet10
Pension and Other Employee Benefits (Schedule of Investment Allocation Ranges) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Global Equity (US & International equity) [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 40.00% |
Investment policy asset allocation ranges maximum | 60.00% |
U.S. equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 25.00% |
Investment policy asset allocation ranges maximum | 40.00% |
International Equities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 15.00% |
Investment policy asset allocation ranges maximum | 25.00% |
Fixed Income Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 25.00% |
Investment policy asset allocation ranges maximum | 40.00% |
Cash and cash equivalents | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 1.00% |
Investment policy asset allocation ranges maximum | 10.00% |
Private equity and real estate [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 3.00% |
Investment policy asset allocation ranges maximum | 20.00% |
Other (including absolute return funds) [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment policy asset allocation ranges minimum | 5.00% |
Investment policy asset allocation ranges maximum | 20.00% |
Recovered_Sheet11
Pension and Other Employee Benefits (Schedule of Fair Value Measurements of the Company's Pension Plan Assets By Asset Category And By Level) (Details) (Domestic Pension Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $19,352 | $18,822 | |
Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7,394 | 7,660 | |
Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 9,571 | 9,654 | |
Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,387 | 1,508 | 1,119 |
U.S. equities All capitalization | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 6,833 | 6,647 | |
U.S. equities All capitalization | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3,268 | 2,805 | |
U.S. equities All capitalization | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3,565 | 3,842 | |
U.S. equities All capitalization | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Developed markets(1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,398 | 3,136 | |
Developed markets(1) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,452 | 2,225 | |
Developed markets(1) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 946 | 911 | |
Developed markets(1) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Emerging markets(1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 394 | 488 | |
Emerging markets(1) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 297 | 393 | |
Emerging markets(1) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 97 | 95 | |
Emerging markets(1) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
U.S. Government and agency securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 112 | 93 | |
U.S. Government and agency securities | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 104 | 93 | |
U.S. Government and agency securities | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 0 | |
U.S. Government and agency securities | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Investment grade bonds(2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,424 | 1,477 | |
Investment grade bonds(2) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Investment grade bonds(2) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,424 | 1,477 | |
Investment grade bonds(2) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Non-investment grade bonds(2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 248 | 427 | |
Non-investment grade bonds(2) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Non-investment grade bonds(2) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 248 | 427 | |
Non-investment grade bonds(2) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Emerging market debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 51 | |
Emerging market debt | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 51 | |
Emerging market debt | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Emerging market debt | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Core fixed-income(3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,215 | 1,326 | |
Core fixed-income(3) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,098 | 1,228 | |
Core fixed-income(3) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 117 | 98 | |
Core fixed-income(3) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Global multi-sector fixed-income(4) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 456 | 97 | |
Global multi-sector fixed-income(4) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 456 | 97 | |
Global multi-sector fixed-income(4) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Global multi-sector fixed-income(4) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed-income hedge funds(5) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 112 | 171 | |
Fixed-income hedge funds(5) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed-income hedge funds(5) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 110 | 164 | |
Fixed-income hedge funds(5) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2 | 7 | 67 |
Securitized(6) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,006 | 754 | |
Securitized(6) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Securitized(6) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 765 | 754 | |
Securitized(6) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 241 | 0 | 0 |
Convertible(7) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 161 | 207 | |
Convertible(7) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 161 | 207 | |
Convertible(7) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Convertible(7) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Cash and cash equivalents(8) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 820 | 1,239 | |
Cash and cash equivalents(8) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 558 | 561 | |
Cash and cash equivalents(8) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 262 | 678 | |
Cash and cash equivalents(8) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Relative value(10) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 432 | 464 | |
Relative value(10) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Relative value(10) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 182 | 318 | |
Relative value(10) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 250 | 146 | 0 |
Event driven(11) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 387 | 323 | |
Event driven(11) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Event driven(11) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 157 | 168 | |
Event driven(11) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 230 | 155 | 72 |
Equity hedge(12) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 319 | 329 | |
Equity hedge(12) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Equity hedge(12) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 267 | 323 | |
Equity hedge(12) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 52 | 6 | 5 |
Macro(13) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 201 | |
Macro(13) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Macro(13) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 191 | |
Macro(13) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 10 | 32 |
Multi-strategy(14) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 322 | 125 | |
Multi-strategy(14) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Multi-strategy(14) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 148 | 0 | |
Multi-strategy(14) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 174 | 125 | |
Private equity funds(15) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 938 | 598 | |
Private equity funds(15) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Private equity funds(15) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Private equity funds(15) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 938 | 598 | 397 |
Private real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 692 | 537 | |
Private real estate funds | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Private real estate funds | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 275 | 208 | |
Private real estate funds | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 417 | 329 | 249 |
Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 28 | 26 | |
Insurance contracts | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Insurance contracts | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Insurance contracts | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 28 | 26 | 25 |
Other(16) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 55 | 106 | |
Other(16) | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Other(16) | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Other(16) | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $55 | $106 | $192 |
Recovered_Sheet12
Pension and Other Employee Benefits (Schedule of Fair Value Measurements Using Significant Unobservable Inputs) (Details) (United States Pension Plan of US Entity, Defined Benefit [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | $19,352 | $18,822 |
Fixed-income hedge funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 112 | 171 |
Securitized(6) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 1,006 | 754 |
Other funds - Absolute return funds - Relative value [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 432 | 464 |
Other funds - Absolute return funds - Event driven [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 387 | 323 |
Other funds - Absolute return funds - Equity Hedge [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 319 | 329 |
Other funds - Absolute return funds - Macro [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 0 | 201 |
Private equity funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 938 | 598 |
Private real estate funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 692 | 537 |
Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 28 | 26 |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, ending balance | 55 | 106 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 1,508 | 1,119 |
Actual return on plan assets(1) | 230 | 229 |
Purchases, issuances, settlements | 543 | 160 |
Transfers in and/or out of Level 3 | 106 | 0 |
Fair value of plan assets, ending balance | 2,387 | 1,508 |
Level 3 [Member] | Fixed-income hedge funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 7 | 67 |
Actual return on plan assets(1) | 3 | 39 |
Purchases, issuances, settlements | -8 | -99 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 2 | 7 |
Level 3 [Member] | Securitized(6) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets(1) | 46 | 0 |
Purchases, issuances, settlements | 195 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 241 | 0 |
Level 3 [Member] | Other funds - Absolute return funds - Relative value [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 146 | 0 |
Actual return on plan assets(1) | 8 | 11 |
Purchases, issuances, settlements | -4 | 135 |
Transfers in and/or out of Level 3 | 100 | 0 |
Fair value of plan assets, ending balance | 250 | 146 |
Level 3 [Member] | Other funds - Absolute return funds - Event driven [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 155 | 72 |
Actual return on plan assets(1) | 11 | 30 |
Purchases, issuances, settlements | 58 | 53 |
Transfers in and/or out of Level 3 | 6 | 0 |
Fair value of plan assets, ending balance | 230 | 155 |
Level 3 [Member] | Other funds - Absolute return funds - Equity Hedge [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 6 | 5 |
Actual return on plan assets(1) | 2 | 1 |
Purchases, issuances, settlements | 44 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 52 | 6 |
Level 3 [Member] | Other funds - Absolute return funds - Macro [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 10 | 32 |
Actual return on plan assets(1) | 0 | 1 |
Purchases, issuances, settlements | -10 | -23 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 0 | 10 |
Level 3 [Member] | Other funds - Multi-strategy [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 125 | 80 |
Actual return on plan assets(1) | 19 | 13 |
Purchases, issuances, settlements | 30 | 32 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 174 | 125 |
Level 3 [Member] | Private equity funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 598 | 397 |
Actual return on plan assets(1) | 65 | 85 |
Purchases, issuances, settlements | 275 | 116 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 938 | 598 |
Level 3 [Member] | Private real estate funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 329 | 249 |
Actual return on plan assets(1) | 74 | 49 |
Purchases, issuances, settlements | 14 | 31 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 417 | 329 |
Level 3 [Member] | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 26 | 25 |
Actual return on plan assets(1) | 2 | 0 |
Purchases, issuances, settlements | 0 | 1 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | 28 | 26 |
Level 3 [Member] | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets at beginning of year | 106 | 192 |
Actual return on plan assets(1) | 0 | 0 |
Purchases, issuances, settlements | -51 | -86 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, ending balance | $55 | $106 |
Recovered_Sheet13
Pension and Other Employee Benefits Pension and Other Employee Benefits (VEBA Trusts) (Details) (VEBA [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Fixed Income Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 46.00% | 34.00% |
U.S. equities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 41.00% | 41.00% |
International Equities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 10.00% | 21.00% |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 3.00% | 4.00% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2011 |
Income Taxes [Line Items] | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $0 | $51 | $0 | |||
Undistributed Earnings of Foreign Subsidiaries | 384 | |||||
Federal and foreign income taxes | -790 | -808 | -878 | |||
Unrecognized Tax Benefits | 104 | 118 | 129 | 167 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 6 | 5 | 17 | |||
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Net Of The Federal Tax Benefit | 4 | 3 | 11 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 100 | |||||
Net State Income Tax Expense Allocated To Contracts | 41 | 42 | 78 | |||
Operating Loss Carryforwards | 392 | |||||
Discontinued Operation, Tax Effect of Discontinued Operation | 23 | -5 | 1 | |||
Internal Revenue Service (IRS) [Member] | ||||||
Income Taxes [Line Items] | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 70 | 24 | ||||
Raytheon United Kingdom [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating Loss Carryforwards | 370 | |||||
Dividend Paid [Member] | Foreign Subsidiary [Member] | ||||||
Income Taxes [Line Items] | ||||||
Cash Dividends Paid to Parent Company | 115 | |||||
Federal and foreign income taxes | 80 | |||||
Research and Development Expense [Member] | ||||||
Income Taxes [Line Items] | ||||||
Federal and foreign income taxes | $30 | ($25) |
Income_Taxes_Schedule_of_Provi
Income Taxes (Schedule of Provision for Federal and Foreign Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $837 | $723 | $753 |
Current Foreign Tax Expense (Benefit) | 13 | 17 | 32 |
Deferred Federal Income Tax Expense (Benefit) | -73 | 36 | 74 |
Deferred Foreign Income Tax Expense (Benefit) | 13 | 32 | 19 |
Income Tax Expense (Benefit) | $790 | $808 | $878 |
Income_Taxes_Schedule_of_Expen
Income Taxes (Schedule of Expenses for Income Taxes that Differ from the US Statutory Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Research and development (R&D) tax credit | -1.10% | -1.80% | 0.00% |
Tax settlements and refund claims | -0.50% | -0.80% | -0.80% |
Domestic manufacturing deduction benefit | -2.70% | -2.10% | -1.90% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Percent | 2.80% | 0.00% | 0.00% |
Other, net | -1.40% | -1.00% | -0.70% |
Effective tax rate | 26.50% | 29.30% | 31.60% |
Income_Taxes_Income_Taxes_Sche
Income Taxes Income Taxes (Schedule of Domestic and Foreign Income from continuing operations before taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
Domestic income from continuing operations before taxes | $2,868 | $2,612 | $2,630 |
Foreign income from continuing operations before taxes | $115 | $145 | $149 |
Income_Taxes_Income_Taxes_Paid
Income Taxes Income Taxes Paid, Net (Schedule of Income Taxes Paid, Net)( Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal | |||
Income Taxes [Line Items] | |||
Income Taxes Paid, Net | $705 | $628 | $826 |
Foreign | |||
Income Taxes [Line Items] | |||
Income Taxes Paid, Net | 19 | 22 | 13 |
State | |||
Income Taxes [Line Items] | |||
Income Taxes Paid, Net | $35 | $39 | $78 |
Income_Taxes_Rollforward_of_Un
Income Taxes (Rollforward of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $118 | $129 | $167 |
Additions based on current year tax positions | 1 | 104 | 1 |
Additions based on prior year tax positions | 10 | 0 | 0 |
Reductions based on prior year tax positions | -25 | -64 | -39 |
Settlements based on prior year tax positions | 0 | -51 | 0 |
Ending Balance | $104 | $118 | $129 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Income Tax) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Tax Credit Carryforward [Line Items] | ||
Current deferred tax assets (liabilities), Accrued employee compensation and benefits | $242 | $240 |
Current deferred tax assets (liabilities), Other accrued expenses and reserves | 132 | 191 |
Deferred Tax Liabilities Deferred Expense - Contracts in process and inventories | 539 | 513 |
Deferred Tax Liabilities, Net, Current | -165 | -82 |
Noncurrent deferred tax assets (liabilities), Pension benefits | 2,242 | 934 |
Noncurrent deferred tax assets (liabilities), Other retiree benefits | 110 | 113 |
Noncurrent deferred tax assets (liabilities), Net operating loss and tax credit carryforwards | 101 | 116 |
Noncurrent deferred tax assets (liabilities), Depreciation and amortization | -1,337 | -1,346 |
Deferred Tax Assets, Other | 106 | |
Noncurrent deferred tax assets (liabilities), Other | -74 | |
Deferred Tax Assets, Net, Noncurrent | 1,222 | |
Deferred Tax Liabilities, Net, Noncurrent | $257 |
Business_Segment_Reporting_Seg
Business Segment Reporting (Segment Operating Performance) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | $6,143 | $5,474 | $5,701 | $5,508 | $5,870 | $5,842 | $6,115 | $5,879 | $22,826 | $23,706 | $24,414 |
Operating income | 3,179 | 2,938 | 2,989 | ||||||||
Corporate & Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | -235 | -188 | -188 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | -1,624 | -1,798 | -1,875 | ||||||||
Operating income | -157 | -160 | -177 | ||||||||
Intersegment Eliminations [Member] | Integrated Defense Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | -107 | -107 | -91 | ||||||||
Operating income | -8 | -9 | -8 | ||||||||
Intersegment Eliminations [Member] | Intelligence, Information and Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | -829 | -817 | -784 | ||||||||
Operating income | -83 | -72 | -72 | ||||||||
Intersegment Eliminations [Member] | Missile Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | -140 | -163 | -161 | ||||||||
Operating income | -14 | -17 | -24 | ||||||||
Intersegment Eliminations [Member] | Space and Airborne Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | -548 | -711 | -839 | ||||||||
Operating income | -52 | -62 | -73 | ||||||||
Operating Segments [Member] | Integrated Defense Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 6,085 | 6,489 | 6,492 | ||||||||
Operating income | 974 | 1,115 | 1,047 | ||||||||
Operating Segments [Member] | Intelligence, Information and Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 5,984 | 6,045 | 6,335 | ||||||||
Operating income | 508 | 510 | 536 | ||||||||
Operating Segments [Member] | Missile Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 6,309 | 6,599 | 6,639 | ||||||||
Operating income | 800 | 830 | 861 | ||||||||
Operating Segments [Member] | Space and Airborne Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, net | 6,072 | 6,371 | 6,823 | ||||||||
Operating income | 846 | 920 | 988 | ||||||||
FAS CAS Adjustment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $286 | ($249) | ($255) |
Business_Segment_Reporting_Com
Business Segment Reporting (Components of Operating Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Operating income | $3,179 | $2,938 | $2,989 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | -78 | -28 | -11 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | -157 | -160 | -177 |
Intersegment Eliminations [Member] | Integrated Defense Systems | |||
Segment Reporting Information [Line Items] | |||
Operating income | -8 | -9 | -8 |
Intersegment Eliminations [Member] | Intelligence, Information and Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | -83 | -72 | -72 |
Intersegment Eliminations [Member] | Missile Systems | |||
Segment Reporting Information [Line Items] | |||
Operating income | -14 | -17 | -24 |
Intersegment Eliminations [Member] | Space and Airborne Systems | |||
Segment Reporting Information [Line Items] | |||
Operating income | -52 | -62 | -73 |
Corporate & Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | ($235) | ($188) | ($188) |
Business_Segment_Reporting_Bus
Business Segment Reporting Business Segment Reporting (Components of FAS/CAS Adjustment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Operating income | $3,179 | $2,938 | $2,989 |
FAS/CAS Pension Adjustment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | 281 | -253 | -255 |
FAS/CAS PRB Adjustment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | 5 | 4 | 0 |
FAS CAS Adjustment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | $286 | ($249) | ($255) |
Business_Segment_Reporting_Cap
Business Segment Reporting (Capital Expenditures) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $326 | $280 | $339 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 13 | 11 | 40 |
Operating Segments [Member] | Integrated Defense Systems | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 99 | 69 | 67 |
Operating Segments [Member] | Intelligence, Information and Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 41 | 28 | 34 |
Operating Segments [Member] | Missile Systems | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 56 | 55 | 66 |
Operating Segments [Member] | Space and Airborne Systems | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $117 | $117 | $132 |
Business_Segment_Reporting_Dep
Business Segment Reporting (Depreciation and Amortization) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $439 | $445 | $455 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 43 | 53 | 60 |
Operating Segments [Member] | Integrated Defense Systems | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 95 | 96 | 101 |
Operating Segments [Member] | Intelligence, Information and Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 57 | 62 | 65 |
Operating Segments [Member] | Missile Systems | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 76 | 76 | 68 |
Operating Segments [Member] | Space and Airborne Systems | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $168 | $158 | $161 |
Business_Segment_Reporting_Com1
Business Segment Reporting (Components of Identifiable Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $27,900 | $25,967 |
Operating Segments [Member] | Integrated Defense Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 4,128 | 3,897 |
Operating Segments [Member] | Intelligence, Information and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 4,243 | 3,772 |
Operating Segments [Member] | Missile Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 6,223 | 6,316 |
Operating Segments [Member] | Space and Airborne Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 6,414 | 6,399 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $6,892 | $5,583 |
Business_Segment_Reporting_Sch
Business Segment Reporting (Schedule of Total Net Sales by Geographic Areas) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $6,143 | $5,474 | $5,701 | $5,508 | $5,870 | $5,842 | $6,115 | $5,879 | $22,826 | $23,706 | $24,414 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Sales by Geographic Areas | 16,285 | 17,260 | 18,182 | ||||||||
Asia Pacific [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Sales by Geographic Areas | 2,390 | 2,590 | 2,510 | ||||||||
MENA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Sales by Geographic Areas | 2,857 | 2,396 | 2,470 | ||||||||
All Other (Principally Europe) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Sales by Geographic Areas | $1,294 | $1,460 | $1,252 |
Business_Segment_Reporting_Bus1
Business Segment Reporting Business Segment Reporting (Sales to Major Customers) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
US Government [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $16,083 | $17,019 | $17,861 |
Department of Defense [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 15,059 | 16,015 | 16,818 |
International Sales, including Foreign Military Sales [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 6,541 | 6,446 | 6,232 |
Foreign direct commercial sales, excluding Foreign Military Sales through U.S. Gov [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 3,579 | 3,384 | 3,036 |
Foreign Military Sales through US Government [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $2,962 | $3,062 | $3,196 |
Business_Segment_Reporting_Sch1
Business Segment Reporting (Schedule of Property Plant and Equipment by Geographic Area) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $1,935 | $1,937 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 1,847 | 1,841 |
All Other (Principally Europe) | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $88 | $96 |
Quarterly_Operating_Results_Na
Quarterly Operating Results (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 30, 2014 |
Quarterly Financial Information [Line Items] | |||||
Federal and foreign income taxes | $790 | $808 | $878 | ||
Research and Development Expense [Member] | |||||
Quarterly Financial Information [Line Items] | |||||
Federal and foreign income taxes | -30 | 25 | |||
Foreign Subsidiary [Member] | Dividend Paid [Member] | |||||
Quarterly Financial Information [Line Items] | |||||
Cash Dividends Paid to Parent Company | 115 | ||||
Federal and foreign income taxes | ($80) |
Quarterly_Operating_Results_Sc
Quarterly Operating Results (Schedule of Quarterly Operating Results) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
workdays | workdays | workdays | workdays | workdays | workdays | workdays | workdays | ||||
Quarterly Financial Information [Line Items] | |||||||||||
Total net sales | $6,143 | $5,474 | $5,701 | $5,508 | $5,870 | $5,842 | $6,115 | $5,879 | $22,826 | $23,706 | $24,414 |
Gross margin | 1,481 | 1,303 | 1,400 | 1,347 | 1,230 | 1,308 | 1,362 | 1,274 | |||
Income from continuing operations | 580 | 519 | 501 | 593 | 469 | 491 | 493 | 496 | 2,179 | 1,932 | 1,889 |
Net income attributable to Raytheon Company | $582 | $515 | $551 | $596 | $531 | $489 | $488 | $488 | $2,244 | $1,996 | $1,888 |
Income (Loss) from Continuing Operations, Per Basic Share | $1.86 | $1.66 | $1.59 | $1.87 | $1.46 | $1.51 | $1.50 | $1.50 | $6.98 | $5.97 | $5.67 |
Income (Loss) from Continuing Operations, Per Diluted Share | $1.86 | $1.65 | $1.59 | $1.87 | $1.46 | $1.51 | $1.50 | $1.49 | $6.97 | $5.96 | $5.65 |
Income (Loss), Per Basic Share attributable to Raytheon Company common stockholders | $1.88 | $1.66 | $1.76 | $1.89 | $1.66 | $1.52 | $1.50 | $1.49 | $7.19 | $6.17 | $5.67 |
Income (Loss) Per Diluted Share attributable to Raytheon Company common stockholders | $1.88 | $1.65 | $1.76 | $1.89 | $1.66 | $1.51 | $1.50 | $1.49 | $7.18 | $6.16 | $5.65 |
Cash dividends per share, declared | $0.61 | $0.61 | $0.61 | $0.61 | $0.55 | $0.55 | $0.55 | $0.55 | $2.42 | $2.20 | $2 |
Cash dividends per share, paid | $0.61 | $0.61 | $0.61 | $0.55 | $0.55 | $0.55 | $0.55 | $0.50 | |||
Workdays (in workdays) | 60 | 63 | 64 | 62 | 59 | 63 | 64 | 63 | |||
Maximum [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Common stock price | $110.47 | $103.35 | $101.47 | $101.31 | $91.04 | $80.69 | $68.07 | $59.01 | |||
Minimum [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Cash dividends per share, declared | $2.42 | $2.20 | |||||||||
Common stock price | $93.85 | $89.43 | $94.08 | $88.13 | $73.97 | $64.82 | $56.22 | $52.67 |