Raytheon Technologies Reports Second Quarter 2020 Results

  • Accelerated cost reduction and cash conservation actions

WALTHAM, Mass., July 28, 2020 /PRNewswire/ -- Raytheon Technologies Corporation (NYSE: RTX) reported second quarter 2020 results.

  • Sales of $14.1 billion
  • Adjusted sales of $14.3 billion
  • GAAP EPS from continuing operations of a loss of $2.56 and included $2.96 of net significant and/or non-recurring charges and acquisition accounting adjustments
  • Adjusted EPS of $0.40
  • Operating cash flow from continuing operations of $210 million
  • Free cash flow of an outflow of $248 million
  • Achieved ~$600 million of cost reduction and ~$1 billion of cash conservation actions
  • Combined book-to-bill ratio of 1.20 at RIS and RMD segments

"During the quarter, we continued to deliver good performance in our defense business, while we saw challenges in commercial aerospace as expected," said Raytheon Technologies CEO Greg Hayes. "Looking ahead, we expect the pressures in commercial aerospace to persist as OEM production levels and aftermarket activity remain low. As a result, we are taking difficult but necessary actions to strengthen the business, including achieving the previously announced cost and cash savings this year. At the same time, we continue to deliver cost synergies from the Rockwell Collins acquisition and the Raytheon merger."

Hayes continued, "I'm proud of what our team has accomplished in support of our customers, suppliers, and communities during this difficult time. Our balance sheet remains strong and the resiliency of our defense business will help us weather this storm as we continue to capitalize on growth opportunities supported by our record backlog. I am confident that our balanced portfolio and advanced technologies will position us for long-term value creation as the global economy recovers."

See "Use and Definitions of Non-GAAP Financial Measures" below for information regarding non-GAAP financial measures.

Raytheon Technologies reported second quarter sales of $14.1 billion and adjusted sales of $14.3 billion. GAAP EPS from continuing operations was a loss of $2.56 and included $2.96 of net significant and/or non-recurring charges and acquisition accounting adjustments, where $2.34 was related to charges due to the current economic environment primarily driven by the COVID-19 pandemic. Of the $2.34, $2.13 was related to an impairment of Collins Aerospace goodwill and intangibles. Other adjustments included $0.28 for acquisition accounting adjustments primarily related to intangible amortization and $0.21 for restructuring. Adjusted EPS was $0.40.

The company recorded a net loss from continuing operations in the second quarter of $3.8 billion, and included $4.4 billion of net significant and/or nonrecurring charges and acquisition accounting adjustments. Adjusted net income was $598 million. Operating cash flow from continuing operations in the second quarter was $210 million and better than expected primarily due to the timing of collections and execution on cash conservation actions. Capital expenditures were $458 million, resulting in a free cash outflow of $248 million. Free cash flow included $165 million of merger costs and restructuring.

Summary Financial Results – Continuing Operations

($ in millions, except EPS)


2nd Quarter
2020


Reported





               Sales

$

14,061


               Net Income

$

(3,844)


               EPS

$

(2.56)







Adjusted





             Sales

$

14,277


             Net Income

$

598


             EPS

$

0.40







Operating Cash Flow from Continuing Operations

$

210


Free Cash Flow


$

(248)









Note: Q2 2020 results include the legacy Raytheon business since the merger date of April 3, 2020.  Reported and adjusted numbers do not include the legacy Raytheon business pre-merger stub period from March 30, 2020 to April 2, 2020 which had an estimated $400M of sales, $40M of net income, and $100M of operating cash flow.

Bookings and Orders
Backlog at the end of the second quarter was $158.7 billion, of which $85.6 billion was from commercial aerospace and a record $73.1 billion was from defense.

Notable defense bookings during the quarter included:

  • $2.3 billion on the Army Navy/Transportable Radar Surveillance-Model 2 (AN/TPY-2) radar program for the Kingdom of Saudi Arabia (KSA) at Raytheon Missiles & Defense (RMD)
  • $1.4 billion on a number of classified programs at Raytheon Intelligence & Space (RIS)
  • $299 million for Standard Missile-3 (SM-3®) for the Missile Defense Agency (MDA) and an international customer at RMD

In addition, during the quarter RMD was selected by the U.S. Air Force to develop the Long-Range Standoff Weapon (LRSO).

Segment Results
The company's reportable segments are Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD). In connection with the merger, the company revised its segment presentation. Prior periods have been revised to reflect the current presentation. Refer to the accompanying tables for further details.

Collins Aerospace   


2nd Quarter


Six Months

($ in millions)

2020

2019

% Change


2020

2019

% Change

Reported








         Sales

$

4,202

$

6,576

(36)%


$

10,640

$

13,089

(19)%

         Operating Profit

$

(317)

$

1,276

(125)%


$

929

$

2,240

(59)%

         ROS

(7.5)%

19.4%



8.7%

17.1%










Adjusted








          Sales

$

4,298

$

6,576

(35)%


$

10,758

$

13,089

(18)%

          Operating Profit

$

24

$

1,293

(98)%


$

1,308

$

2,502

(48)%

          ROS

0.6%

19.7%



12.2%

19.1%



Note: Prior periods have been revised to reflect the current segment presentation which excludes acquisition accounting adjustments and includes additional corporate expense allocations.

Collins Aerospace had second quarter 2020 adjusted sales of $4,298 million, down 35 percent versus the prior year. Commercial OE was down 53 percent and commercial aftermarket was down 48 percent, while military was up 10 percent. The decrease in commercial sales was driven primarily by the current economic environment which has resulted in lower flight hours, aircraft fleet utilization and commercial OEM deliveries, which was slightly offset by F-35 and defense development program growth.

Collins Aerospace recorded adjusted operating profit of $24 million in the quarter, down 98 percent versus the prior year. The decrease in adjusted operating profit was driven by lower commercial aerospace OEM and aftermarket sales volume that was slightly offset by gross margin drop through on higher military volume.

Pratt & Whitney


2nd Quarter


Six Months

($ in millions)

2020

2019

% Change


2020

2019

% Change

Reported








        Sales

$

3,487

$

5,154

(32)%


$

8,840

$

9,972

(11)%

        Operating Profit

$

(457)

$

449

(202)%


$

18

$

927

(98)%

        ROS

(13.1)%

8.7%



0.2%

9.3%










Adjusted








         Sales

$

3,607

$

5,154

(30)%


$

8,938

$

9,972

(10)%

         Operating Profit

$

(151)

$

452

(133)%


$

364

$

944

(61)%

         ROS

(4.2)%

8.8%



4.1%

9.5%



Note: Prior periods have been revised to reflect the current segment presentation which excludes acquisition accounting adjustments and includes additional corporate expense allocations.

Pratt & Whitney had second quarter 2020 adjusted sales of $3,607 million, down 30 percent versus the prior year. Commercial OE was down 42 percent and commercial aftermarket was down 51 percent, while military was up 11 percent. The decrease in commercial sales was primarily due to a significant reduction in shop visits and related spare part sales and commercial engine deliveries principally driven by the current economic environment, which was slightly offset by F135 production volume and aftermarket growth on multiple fighter jet platforms.

Pratt & Whitney recorded an adjusted operating loss of $151 million in the quarter, down 133 percent versus the prior year. The decrease in adjusted operating profit was primarily driven by lower commercial aftermarket sales volume and unfavorable mix.

Raytheon Intelligence & Space


2nd Quarter


Six Months


($ in millions)

2020


2020


Reported





        Sales

$

3,314


$

3,314


        Operating Profit

$

311


$

311


        ROS

9.4%


9.4%







Adjusted





        Sales

$

3,314


$

3,314


        Operating Profit

$

311


$

311


        ROS

9.4%


9.4%


Note: Q2 2020 reported and adjusted results include RIS since the merger date of April 3, 2020. Reported and adjusted numbers do not include RIS pre-merger stub period from March 30, 2020 to April 2, 2020 which had an estimated $200M of sales and $20M of operating profit.

RIS had second quarter adjusted sales of $3,314 million and recorded $311 million of adjusted operating profit in the quarter.

Raytheon Missiles & Defense


2nd Quarter


Six Months


($ in millions)

2020


2020


Reported





        Sales

$

3,590


$

3,590


        Operating Profit

$

397


$

397


        ROS

11.1%


11.1%







Adjusted





        Sales

$

3,590


$

3,590


        Operating Profit

$

397


$

397


        ROS

11.1%


11.1%


Note: Q2 2020 reported and adjusted results include RMD since the merger date of April 3, 2020. Reported and adjusted numbers do not include RMD pre-merger stub period from March 30, 2020 to April 2, 2020 which had an estimated $200M of sales and $25M of operating profit.

RMD had second quarter adjusted sales of $3,590 million and recorded $397 million of adjusted operating profit in the quarter.

About Raytheon Technologies
Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With 195,000 employees and four industry-leading businesses ― Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts.

Conference Call on the Second Quarter 2020 Financial Results
Raytheon Technologies' financial results conference call will be held on Tuesday, July 28, 2020 at 8:30 a.m. ET. The dial-in number for the conference call will be (866) 219-7829 in the U.S. or (478) 205-0667 outside of the U.S. The passcode is 4609655. The conference call will also be audiocast on the Internet at www.rtx.com/investors. Individuals may listen to the call and download charts that will be used during the call. These charts will be available for printing prior to the call.

Use and Definitions of Non-GAAP Financial Measures
Raytheon Technologies Corporation's ("RTC") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP").

We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information.  The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures.  Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies.  We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. 

Adjusted net sales, organic sales, adjusted operating profit (loss), adjusted net income, adjusted earnings per share ("EPS"), adjusted diluted weighted average shares outstanding, and the adjusted effective tax rate are non-GAAP financial measures.  Adjusted net sales represents consolidated net sales from continuing operations (a GAAP measure), excluding significant items of a non-recurring and/or nonoperational nature (hereinafter referred to as "other significant items").  Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items.  Adjusted operating profit (loss) represents income from continuing operations (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and other significant items. Adjusted net income represents net income from continuing operations (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and other significant items. Adjusted EPS represents diluted earnings per share from continuing operations (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and other significant items.  Adjusted diluted weighted average shares outstanding represents diluted weighted average shares outstanding (a GAAP measure), including stock awards which were anti-dilutive during the quarter and six months ended June 30, 2020 as a result of the net loss from operations. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax effect of restructuring costs, acquisition accounting adjustments and other significant items. For the Business segments, when applicable, adjustments of net sales similarly reflect continuing operations excluding other significant items, and adjustments of operating profit and margins similarly reflect continuing operations, excluding restructuring, acquisition accounting adjustments and other significant items.    

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures.  Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing RTC's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTC's common stock and distribution of earnings to shareowners.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix.  The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

When we provide our expectation for free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance.  The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide Raytheon Technologies Corporation's ("RTC") management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "on track" and other words of similar meaning. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates, R&D spend, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, other anticipated benefits to RTC of United Technologies Corporation's ("UTC") Rockwell Collins acquisition, the merger between UTC and Raytheon Company ("Raytheon", and such merger, the "merger") or the spin-offs by UTC of Otis Worldwide Corporation and Carrier Global Corporation into separate independent companies (the "separation transactions"), including estimated synergies and customer cost savings resulting from the merger and the separation transactions and other statements that are not solely historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which RTC operates in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, and the impact of pandemic health issues (including COVID-19 and its effects, among other things, on global supply, demand and distribution capabilities as the COVID-19 outbreak continues and results in an increasingly prolonged period of disruption to air travel and commercial activities generally, and significant restrictions and limitations on businesses, particularly within the aerospace and commercial airlines industries) aviation safety concerns, weather conditions and natural disasters, the financial condition of our customers and suppliers, and the risks associated with U.S. government sales (including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration or the allocation of funds to governmental responses to COVID-19, a government shutdown, or otherwise, and uncertain funding of programs); (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits (including our expected returns under customer contracts) of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture activity, including among other things the integration of UTC's and Raytheon's businesses or the integration of RTC with other businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs and expenses; (4) RTC's levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases by RTC of its common stock, which have been suspended through the end of the calendar year and may continue to be suspended, or discontinued or delayed, at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof (including the potential termination of U.S. government contracts and performance under undefinitized contract awards and the potential inability to recover termination costs); (9) new business and investment opportunities; (10) the ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which RTC and its businesses operate, including the effect of changes in U.S. trade policies or the U.K.'s withdrawal from the European Union, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory and other laws and regulations (including, among other things, export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anti-corruption requirements, including the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations) in the U.S. and other countries in which RTC and its businesses operate; (17) the possibility that the anticipated benefits from the combination of UTC's and Raytheon's businesses (including ongoing integration activities from historic UTC and Raytheon acquisitions prior to the merger) cannot be realized in full or at all or may take longer to realize than expected, or the possibility that costs or difficulties related to the integration of UTC's businesses with Raytheon's will be greater than expected or may not result in the achievement of estimated synergies within the contemplated time frame or at all; (18) the ability of RTC to retain and hire key personnel and the ability of our personnel to continue to operate our facilities and businesses around the world in light of, among other factors, the COVID-19 outbreak; (19) the expected benefits to RTC of the separation transactions; (20) the intended qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions as tax-free to UTC and former UTC shareowners, in each case, for U.S. federal income tax purposes; and (21) the risk that dissynergy costs incurred in connection with the separation transactions will exceed legacy UTC's or legacy Raytheon's estimates.   For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the reports of RTC, UTC and Raytheon on Forms S-4, 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and RTC assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

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Raytheon Technologies Corporation

Condensed Consolidated Statement of Operations




Quarter Ended June 30,


Six Months Ended June 30,



(Unaudited)


(Unaudited)

(dollars in millions, except per share amounts; shares in millions)

2020


2019(1)


2020(1)


2019(1)

Net Sales

$

14,061



$

11,329



$

25,421



$

22,282


Costs and Expenses:









Cost of sales

12,214



8,554



20,786



16,973



Research and development

695



605



1,230



1,192



Selling, general and administrative

1,811



902



2,788



1,770



Total Costs and Expenses

14,720



10,061



24,804



19,935


Goodwill impairment

(3,183)





(3,183)




Other (expense) income, net

82



118



101



181


Operating profit

(3,760)



1,386



(2,465)



2,528



Non-service pension (benefit)

(237)



(200)



(405)



(392)



Interest expense, net

335



352



667



772


Income (loss) from continuing operations before income taxes

(3,858)



1,234



(2,727)



2,148



Income tax expense (benefit)

(38)



6



601



159


Net income (loss) from continuing operations

(3,820)



1,228



(3,328)



1,989



Less: Noncontrolling interest in subsidiaries' earnings
from continuing operations

24



45



78



94


Income (loss) from continuing operations attributable to
common shareowners

(3,844)



1,183



(3,406)



1,895


Discontinued operations:









Income (loss) from discontinued operations

(56)



1,206



(232)



2,114



Income tax expense (benefit) from discontinued operations

(65)



435



237



679



Income (loss) from discontinued operations

9



771



(469)



1,435



Less: Noncontrolling interest in subsidiaries' earnings
from discontinued operations



54



43



84


Income (loss) from discontinued operations attributable to
common shareowners

9



717



(512)



1,351


Net (loss) income attributable to common shareowners

$

(3,835)



$

1,900



$

(3,918)



$

3,246











(Loss) Earnings Per Share attributable to common
shareowners - Basic:









Income (loss) from continuing operations attributable to
common shareowners

$

(2.56)



$

1.38



$

(2.78)



$

2.22



Income (loss) from discontinued operations

0.01



0.84



(0.42)



1.58



Net income (loss) attributable to common shareowners

$

(2.55)



$

2.22



$

(3.20)



$

3.80


(Loss) Earnings Per Share attributable to common
shareowners - Diluted:









Income (loss) from continuing operations attributable to
common shareowners

$

(2.56)



$

1.37



$

(2.78)



$

2.20



Income (loss) from discontinued operations

0.01



0.83



(0.42)



1.56



Net income (loss) attributable to common shareowners

$

(2.55)



$

2.20



$

(3.20)



$

3.76











Weighted Average Shares Outstanding:









Basic shares

1,501.3



854.4



1,225.4



853.8



Diluted shares

1,501.3



863.7



1,225.4



862.3




(1)

As a result of the Separation Transactions and the Distributions we have reclassified certain prior year amounts for the reclassification of the historical Otis and Carrier results to discontinued operations.

Raytheon Technologies Corporation

Segment Net Sales and Operating Profit


Quarter Ended


Six Months Ended


(Unaudited)


(Unaudited)


June 30, 2020


June 30, 2019(1)


June 30, 2020(1)


June 30, 2019(1)

(dollars in millions)

Reported

Adjusted


Reported

Adjusted


Reported

Adjusted


Reported

Adjusted

Net Sales












Collins Aerospace Systems

$

4,202


$

4,298



$

6,576


$

6,576



$

10,640


$

10,758



$

13,089


$

13,089


Pratt & Whitney

3,487


3,607



5,154


5,154



8,840


8,938



9,972


9,972


Raytheon Intelligence &
Space

3,314


3,314






3,314


3,314





Raytheon Missiles & Defense

3,590


3,590






3,590


3,590





Total segment

14,593


14,809



11,730


11,730



26,384


26,600



23,061


23,061


Eliminations and other

(532)


(532)



(401)


(401)



(963)


(963)



(779)


(779)


Consolidated

$

14,061


$

14,277



$

11,329


$

11,329



$

25,421


$

25,637



$

22,282


$

22,282














Operating Profit












Collins Aerospace Systems

$

(317)


$

24



$

1,276


$

1,293



$

929


$

1,308



$

2,240


$

2,502


Pratt & Whitney

(457)


(151)



449


452



18


364



927


944


Raytheon Intelligence &
Space

311


311






311


311





Raytheon Missiles & Defense

397


397






397


397





Total segment

(66)


581



1,725


1,745



1,655


2,380



3,167


3,446


Eliminations and other

(28)


(28)



(42)


(42)



(53)


(53)



(69)


(69)


Corporate expenses and other
unallocated items

(277)


(24)



(87)


(50)



(407)


(123)



(133)


(86)


FAS/CAS operating
adjustment

356


356






356


356





Acquisition accounting
adjustments

(3,745)




(210)




(4,016)




(437)



Consolidated

$

(3,760)


$

885



$

1,386


$

1,653



$

(2,465)


$

2,560



$

2,528


$

3,291























Segment Operating Profit Margin





















Collins Aerospace Systems


(7.5)

%


0.6

%



19.4

%


19.7

%



8.7

%


12.2

%



17.1

%


19.1

%

Pratt & Whitney


(13.1)

%


(4.2)

%



8.7

%


8.8

%



0.2

%


4.1

%



9.3

%


9.5

%

Raytheon Intelligence & Space


9.4

%


9.4

%



NM



NM




9.4

%


9.4

%



NM



NM


Raytheon Missiles & Defense


11.1

%


11.1

%



NM



NM




11.1

%


11.1

%



NM



NM


Total segment


(0.5)

%


3.9

%



14.7

%


14.9

%



6.3

%


8.9

%



13.7

%


14.9

%



(1)

Legacy UTC segments have been recast for 2019 and first quarter 2020 as a result of the Separation Transactions, the Distributions and the Raytheon Merger. Refer to supplemental information in the tables on the following pages for additional information.

NM  Not Meaningful

Raytheon Technologies Corporation

Condensed Consolidated Balance Sheet


June 30, 2020


December 31, 2019

(dollars in millions)

(Unaudited)


(Unaudited)

Assets




Cash and cash equivalents

$

6,975



$

4,937


Accounts receivable, net(2)

9,496



8,743


Contract assets(2)

9,943



4,462


Inventory, net

10,256



9,047


Assets related to discontinued operations(1)

135



31,823


Other assets, current

5,469



2,565


Total Current Assets

42,274



61,577


Customer financing assets

3,363



3,463


Future income tax benefits

732



884


Fixed assets, net

14,805



10,322


Operating lease right-of-use assets

2,102



1,252


Goodwill

53,269



36,609


Intangible assets, net

42,003



24,473


Other assets(2)

2,969



1,035


Total Assets

$

161,517



$

139,615






Liabilities, Redeemable Noncontrolling Interests and Equity




Short-term borrowings

$

243



$

2,293


Accounts payable

7,182



7,816


Accrued liabilities(2)

14,253



9,770


Contract liabilities(2)

11,997



9,014


Liabilities related to discontinued operations(1)

319



14,443


Long-term debt currently due

1,297



3,258


Total Current Liabilities

35,291



46,594


Long-term debt

31,210



37,701


Operating lease liabilities, non-current

1,723



1,093


Future pension and postretirement benefit obligations

14,972



2,487


Other long-term liabilities(2)

9,394



7,414


Total Liabilities

92,590



95,289


Redeemable noncontrolling interest

35



95


Shareowners' Equity:




Common Stock

36,679



22,955


Treasury Stock

(10,398)



(32,626)


Retained earnings

49,744



61,594


Accumulated other comprehensive loss

(8,800)



(10,149)


Total Shareowners' Equity

67,225



41,774


Noncontrolling interest

1,667



2,457


Total Equity

68,892



44,231


Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

161,517



$

139,615



As a result of the Separation Transactions, the Distributions and the Raytheon Merger, certain reclassifications have been made to the prior year amounts to conform to the current year presentation. These reclassifications include:

 (1) the reclassification of the historical Otis and Carrier results to assets and liabilities related to discontinued operations

 (2) the presentation of contract-related assets and liabilities as current based upon the duration of our operating cycle

Raytheon Technologies Corporation

Condensed Consolidated Statement of Cash Flows


Quarter Ended June 30,


Six Months Ended June 30,


(Unaudited)


(Unaudited)

(dollars in millions)

2020


2019(1)


2020


2019(1)

Operating Activities:








Net income (loss) from continuing operations

$

(3,820)



$

1,228



$

(3,328)



$

1,989


Adjustments to reconcile net income (loss) from continuing operations to net cash
flows provided by operating activities:








Depreciation and amortization

1,111



650



1,839



1,330


Deferred income tax provision

(274)



3



118



10


Stock compensation cost

72



69



135



118


Net periodic pension and other postretirement benefit

(93)



(125)



(223)



(244)


Goodwill impairment loss

3,183





3,183




Change in:








Accounts receivable

773



(146)



1,163



736


Contract assets

725



(255)



376



(573)


Inventory

(155)



(317)



(550)



(795)


Other current assets

28



21



(180)



(322)


Accounts payable and accrued liabilities

(2,007)



109



(1,395)



(218)


Contract liabilities

302



413



201



633


Global pension contributions

(34)



(33)



(42)



(37)


Canadian government settlement







(38)


Other operating activities, net

399



(121)



45



180


  Net cash flows provided by operating activities from continuing operations

210



1,496



1,342



2,769


Investing Activities:








Capital expenditures

(458)



(384)



(783)



(678)


Dispositions of businesses

234





234



133


Cash acquired in Raytheon Merger

3,208





3,208




Increase in customer financing assets, net

(41)



(159)



(129)



(332)


Increase in collaboration intangible assets

(28)



(82)



(106)



(169)


Receipts (payments) from settlements of derivative contracts

238



(31)



(286)



61


Other investing activities, net

(57)



(58)



(82)



(118)


  Net cash flows provided by (used in) investing activities from continuing operations

3,096



(714)



2,056



(1,103)


Financing Activities:








Issuance of long-term debt

1,984



3



1,984



2


Dividend from discontinued operations





17,207




Repayment of long-term debt

(1,228)



(9)



(15,038)



(13)


Decrease in short-term borrowings, net

(1,382)



(18)



(2,045)



(388)


Proceeds from Common Stock issued under employee stock plans

4



6



10



11


Dividends paid on Common Stock

(724)



(610)



(1,338)



(1,219)


Repurchase of Common Stock



(40)



(47)



(69)


Net transfers (to) from discontinued operations

(950)



168



(1,966)



682


Other financing activities, net

(76)



(11)



(99)



(73)


  Net cash flows used in financing activities from continuing operations

(2,372)



(511)



(1,332)



(1,067)


Discontinued Operations:








Net cash (used in) provided by operating activities

(189)



614



(661)



841


Net cash used in investing activities



(109)



(241)



(114)


Net cash used in financing activities

(1,803)



(178)



(1,481)



(698)


  Net cash flows (used in) provided by discontinued operations

(1,992)



327



(2,383)



29


Effect of foreign exchange rate changes on cash and cash equivalents

9





(10)



4


Effect of foreign exchange rate changes on cash and cash equivalents from
discontinued operations



(25)



(76)



11


  Net (decrease) increase in cash, cash equivalents and restricted cash

(1,049)



573



(403)



643


Cash, cash equivalents and restricted cash, beginning of period

6,073



4,057



4,961



3,731


Cash, cash equivalents and restricted cash within assets related to discontinued
operations, beginning of period

1,993



2,225



2,459



2,481


Cash, cash equivalents and restricted cash, end of period

7,017



6,855



7,017



6,855


  Less: Restricted cash

42



18



42



18


  Less: Cash, cash equivalents and restricted cash for discontinued operations



2,521





2,521


Cash and cash equivalents, end of period

$

6,975



$

4,316



$

6,975



$

4,316




(1)

As a result of the Separation Transactions, the Distributions and the Raytheon Merger, certain reclassifications have been made to the prior year amounts to conform to the current year presentation. These reclassifications include the reclassification of the historical Otis and Carrier results to discontinued operations and the reclassification of lease amortization within our presentation of cash flows.

Raytheon Technologies Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin


Quarter Ended June 30,


Six Months Ended June 30,


(Unaudited)


(Unaudited)

(dollars in millions - Income (Expense))

2020


2019


2020


2019

Collins Aerospace Systems








Net sales

$

4,202



$

6,576



$

10,640



$

13,089


Significant unfavorable contract adjustments(1)

(96)





(118)




Adjusted net sales

$

4,298



$

6,576



$

10,758



$

13,089










Operating profit (loss)

$

(317)



$

1,276



$

929



$

2,240


Restructuring

(151)



(17)



(157)



(56)


Significant unfavorable contract adjustments(1)

(122)





(144)




Bad debt expense driven by customer bankruptcies and
collectability risk(1)

(89)





(99)




Foreign government wage subsidies(1)

24





24




Fixed asset impairment(1)

(3)





(3)




Loss on sale of business







(25)


Amortization of Rockwell Collins inventory fair value adjustment







(181)


Adjusted operating profit

$

24



$

1,293



$

1,308



$

2,502


Adjusted operating profit margin

0.6

%


19.7

%


12.2

%


19.1

%

Pratt & Whitney








Net sales

$

3,487



$

5,154



$

8,840



$

9,972


Favorable impact of a contract termination





22




Significant unfavorable contract adjustments(1)

(120)





(120)




Adjusted net sales

$

3,607



$

5,154



$

8,938



$

9,972










Operating profit (loss)

$

(457)



$

449



$

18



$

927


Restructuring

(107)



(3)



(107)



(17)


Bad debt expense driven by customer bankruptcies and
collectability risk(1)

(148)





(210)




Significant unfavorable contract adjustments(1)

(110)





(110)




Foreign government wage subsidies(1)

59





59




Favorable impact of a contract termination





22




Adjusted operating profit

$

(151)



$

452



$

364



$

944


Adjusted operating profit margin

(4.2)

%


8.8

%


4.1

%


9.5

%

Raytheon Intelligence & Space








Net sales

$

3,314



$



$

3,314



$










Operating profit

$

311



$



$

311



$


Operating profit margin

9.4

%


%


9.4

%


%

Raytheon Missiles & Defense








Net sales

$

3,590



$



$

3,590



$










Operating profit

$

397



$



$

397



$


Operating profit margin

11.1

%


%


11.1

%


%

Corporate, Eliminations and other items








Net sales

$

(532)



$

(401)



$

(963)



$

(779)










Operating profit

$

(305)



$

(129)



$

(460)



$

(202)


Restructuring

(169)



(1)



(171)



(2)


Transaction and integration costs related to acquisition of
Rockwell Collins, Inc.



(10)





(19)


Costs associated with the separation of the commercial businesses

(14)





(14)




Transaction expenses associated with the Raytheon Merger

(70)



(26)



(99)



(26)


Adjusted operating profit

$

(52)



$

(92)



$

(176)



$

(155)


Acquisition Accounting Adjustments(2)








Operating Profit

$

(3,745)



$

(210)



$

(4,016)



$

(437)


Intangible impairment(1)

(17)





(57)




Goodwill impairment(1)

(3,183)





(3,183)




     Acquisition accounting adjustments

(545)



(210)



(776)



(437)


Adjusted operating  profit

$



$



$



$


RTC Consolidated








Net sales

$

14,061



$

11,329



$

25,421



$

22,282


Significant unfavorable contract adjustments

(216)





(216)




Adjusted net sales

$

14,277



$

11,329



$

25,637



$

22,282










Operating profit

$

(3,760)



$

1,386



$

(2,465)



$

2,528


Restructuring

(427)



(21)



(435)



(75)


    Acquisition accounting adjustments

(545)



(210)



(776)



(437)


Total significant non-recurring and non-operational items included
in Operating Profit above

(3,673)



(36)



(3,814)



(251)


Consolidated adjusted operating profit

$

885



$

1,653



$

2,560



$

3,291




(1)

For the three and six months ended June 30, 2020, included in other significant items in the table above is a net pre-tax charge of $3.6 billion related to the impact of the COVID-19 pandemic. This amount includes a $3.2 billion impairment of goodwill, $0.2 billion of charges related to customer bankruptcies and increased collectability risk, and $0.2 billion of charges related to significant unfavorable contract adjustments. Management has determined these items are directly attributable to the COVID-19 pandemic, incremental to similar costs incurred for reasons other than the pandemic, not expected to recur once the impact of the pandemic has subsided, and therefore not indicative of the Company's ongoing operational performance. 

(2)

In conjunction with the Raytheon Merger, we have revised our definition of Adjusted operating profit, Adjusted net income, and Adjusted EPS to exclude the impact of Acquisition accounting adjustments along with restructuring costs and other significant items.  Acquisition accounting adjustments include the amortization expense and impairment charges related to acquired intangible assets related to historical acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through historical acquisitions, and the amortization of customer contractual obligations related to loss making or below market contracts acquired.  Management believes the revision to these non-GAAP measures is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.  All periods presented reflect the impact of this change

Raytheon Technologies Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Adjusted Income (Loss) from Continuing Operations, Earnings Per Share, Weighted Average
Diluted Shares Outstanding and Effective Tax Rate



Quarter Ended June 30,


Six Months Ended June 30,


(Unaudited)


(Unaudited)

(dollars and shares in millions - Income (Expense))

2020


2019


2020


2019

Income (loss) from continuing operations attributable
to common shareowners

$

(3,844)



$

1,183



$

(3,406)



$

1,895


Total Restructuring Costs

(427)



(21)



(435)



(75)


Total Acquisition accounting adjustments

(545)



(210)



(776)



(437)


Total significant non-recurring and non-operational
items included in Operating Profit

(3,673)



(36)



(3,814)



(251)


Significant non-recurring and non-operational items
included in Non-service Pension








Pension curtailment

(25)





(25)




Significant non-recurring and non-operational items
included in Interest Expense, Net








Interest on tax settlements



58





58


Deferred compensation

4





4




Tax effect of restructuring and significant non-
recurring and non-operational items above

321



53



403



162


Significant non-recurring and non-operational items
included in Income Tax Expense








Tax expenses associated with the Company's
separation of Otis and Carrier





(415)




Tax settlements



264





264


Tax impact from business disposal

(22)





(22)




    Tax impact related to debt exchange

(60)





(60)




    Revaluation of certain international tax incentives

(46)





(46)




Revaluation of  deferred taxes related to Raytheon
merger and the Company's separation of Otis and Carrier

31





31




Less: Impact on net income attributable to common
shareowners

(4,442)



108



(5,155)



(279)


Adjusted income (loss) from continuing operations
attributable to common shareowners

$

598



$

1,075



$

1,749



$

2,174










Diluted (Loss) Earnings Per Share

$

(2.56)



$

1.37



$

(2.78)



$

2.20


Impact on Diluted (Loss) Earnings Per Share

(2.96)



0.13



(4.20)



(0.32)


Adjusted Diluted Earnings Per Share

$

0.40



$

1.24



$

1.42



$

2.52










Weighted Average Number of Shares Outstanding








Reported Diluted

1,501.3



863.7



1,225.4



862.3


Impact of dilutive shares(1)

2.4





4.9




Adjusted Diluted

1,503.7



863.7



1,230.3



862.3










Effective Tax Rate

1.0

%


0.5

%


(22.0)

%


7.4

%

Impact on Effective Tax Rate

22.0

%


21.9

%


43.2

%


13.1

%

Adjusted Effective Tax Rate

23.0

%


22.4

%


21.2

%


20.5

%



(1)

The computation of reported diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, because their effect was antidilutive in the quarter ended and six months ended June 30, 2020 due to the reported loss from operations. On an adjusted basis, the Company reported income from continuing operations and the dilutive effect of such awards is included in the calculation of Adjusted Diluted Earnings Per Share.

Raytheon Technologies Corporation

Free Cash Flow Reconciliation



Quarter Ended June 30,


(Unaudited)

(dollars in millions)

2020


2019





Net cash flows provided by operating activities from continuing operations

$

210



$

1,496


Capital expenditures

(458)



(384)


Free cash flow

$

(248)



$

1,112







Six Months Ended June 30,


(Unaudited)

(dollars in millions)

2020


2019





Net cash flows provided by operating activities from continuing operations

$

1,342



$

2,769


Capital expenditures

(783)



(678)


Free cash flow

$

559



$

2,091


Raytheon Technologies Corporation

Legacy UTC Reported Segment Results


In conjunction with the Raytheon Merger, we revised our measurement of segment performance to reflect how management now reviews and evaluates operating performance. Under the new segment performance measurement, certain acquisition accounting adjustments are now excluded from segment results in order to better represent the ongoing operational performance of those segments. In addition, the majority of Corporate expenses are now allocated to the segments, excluding certain items that remain at Corporate because they are not included in management's review of the segment results. The tables below summarize the historical results of our Pratt and Whitney and Collins Aerospace Systems segments reflecting the impact of these adjustments.




2020


2019

Net Sales (dollars in millions)


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


$

5,353



$

4,818



$

5,154



$

5,285



$

5,645



$

20,902


Collins Aerospace Systems


6,438



6,513



6,576



6,495



6,444



26,028


Total segments


11,791



11,331



11,730



11,780



12,089



46,930


Eliminations and other


(431)



(378)



(401)



(407)



(395)



(1,581)


Total net sales from continuing
operations


$

11,360



$

10,953



$

11,329



$

11,373



$

11,694



$

45,349

















2020


2019

Operating Profit (dollars in millions)


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


$

475



$

478



$

449



$

520



$

354



$

1,801


Collins Aerospace Systems


1,246



964



1,276



1,259



1,009



4,508


Total segments


1,721



1,442



1,725



1,779



1,363



6,309















Corporate expenses and other unallocated
items


(25)



(27)



(42)



(46)



(25)



(140)


Eliminations and other


(130)



(46)



(87)



(83)



(151)



(367)


Acquisition accounting adjustments


(271)



(227)



(210)



(220)



(231)



(888)


Total operating profit from continuing
operations


$

1,295



$

1,142



$

1,386



$

1,430



$

956



$

4,914

















2020


2019

Operating Profit Margin


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


8.9

%


9.9

%


8.7

%


9.8

%


6.3

%


8.6

%

Collins Aerospace Systems


19.4

%


14.8

%


19.4

%


19.4

%


15.7

%


17.3

%

Total segments operating profit margin


14.6

%


12.7

%


14.7

%


15.1

%


11.3

%


13.4

%

Raytheon Technologies Corporation

Legacy UTC Reconciliation of Previously Reported to Reported Segment Results


(dollars in millions)


2020


2019



Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney













Net sales, as previously reported


$

5,351



$

4,817



$

5,150



$

5,283



$

5,642



$

20,892


Corporate expense allocation adjustment


2



1



4


2



3



10


Net sales, reported


$

5,353



$

4,818



$

5,154



$

5,285



$

5,645



$

20,902















Operating profit, as previously reported


$

439



$

433



$

424



$

471



$

340



$

1,668


Corporate expense allocation adjustment


(37)



(32)



(34)



(33)



(51)



(150)


Acquisition accounting adjustment


73



77



59



82



65



283


Operating profit, reported


$

475



$

478



$

449



$

520



$

354



$

1,801


Operating profit %, as previously reported


8.2

%


9.0

%


8.2

%


8.9

%


6.0

%


8.0

%

Operating profit %, reported


8.9

%


9.9

%


8.7

%


9.8

%


6.3

%


8.6

%














Collins Aerospace Systems













Net sales, reported


$

6,438



$

6,513



$

6,576



$

6,495



$

6,444



$

26,028


Operating profit, as previously reported


$

1,092



$

856



$

1,172



$

1,167



$

905



$

4,100


Corporate expense allocation adjustment


(44)



(42)



(47)



(46)



(62)



(197)


Acquisition accounting adjustment


198



150



151



138



166



605


Operating profit, reported


$

1,246



$

964



$

1,276



$

1,259



$

1,009



$

4,508


Operating profit %, as previously reported


17.0

%


13.1

%


17.8

%


18.0

%


14.0

%


15.8

%

Operating profit %, reported


19.4

%


14.8

%


19.4

%


19.4

%


15.7

%


17.3

%
















2020


2019

Total Segments


Q1


Q1


Q2


Q3


Q4


FY

Net sales, reported


$

11,791



$

11,331



$

11,730



$

11,780



$

12,089



$

46,930


Operating profit, reported


$

1,721



$

1,442



$

1,725



$

1,779



$

1,363



$

6,309


Operating profit %, reported


14.6

%


12.7

%


14.7

%


15.1

%


11.3

%


13.4

%














Corporate, Eliminations, and Other













Net sales, as previously reported


$

(433)



$

(384)



$

(402)



$

(411)



$

(398)



$

(1,595)


Adjustment for discontinued operations


2



6



6



6



6



24


Corporate Expense Allocation Adjustment






(5)



(2)



(3)



(10)


Net sales, reported


$

(431)



$

(378)



$

(401)



$

(407)



$

(395)



$

(1,581)















Operating Profit:













General corporate expenses, as
previously reported


$

(25)



$

(101)



$

(239)



$

(232)



$

(360)



$

(932)


Corporate expense allocation adjustment




74



197



186



335



792


Corporate expenses and other unallocated
items, reported


$

(25)



$

(27)



$

(42)



$

(46)



$

(25)



$

(140)















Eliminations and other, as previously
reported


$

(115)



$

(98)



$

(124)



$

(113)



$

(180)



$

(515)


Adjustment for discontinued operations


228



52



153



137



251



593


Corporate expense allocation adjustment


(243)





(116)



(107)



(222)



(445)


Eliminations and other, reported


$

(130)



$

(46)



$

(87)



$

(83)



$

(151)



$

(367)















Acquisition Accounting Adjustments,
reported


$

(271)



$

(227)



$

(210)



$

(220)



$

(231)



$

(888)















Continuing Operations, reported













Net sales, reported


$

11,360



$

10,953



$

11,329



$

11,373



$

11,694



$

45,349


Operating profit, reported


$

1,295



$

1,142



$

1,386



$

1,430



$

956



$

4,914


Operating profit %, reported


11.4

%


10.4

%


12.2

%


12.6

%


8.2

%


10.8

%

Raytheon Technologies Corporation

Legacy UTC Segment Results, Adjusted




2020


2019

Net Sales, Adjusted (dollars in millions)


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


$

5,331



$

4,818



$

5,154



$

5,285



$

5,645



$

20,902


Collins Aerospace Systems


6,460



6,513



6,576



6,495



6,444



26,028


Total segments


11,791



11,331



11,730



11,780



12,089



46,930


Eliminations and other


(431)



(378)



(401)



(407)



(395)



(1,581)


Total adjusted net sales from continuing operations


$

11,360



$

10,953



$

11,329



$

11,373



$

11,694



$

45,349

















2020


2019

Operating Profit, Adjusted (dollars in millions)


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


$

515



$

492



$

452



$

520



$

470



$

1,934


Collins Aerospace Systems


1,284



1,209



1,293



1,286



1,061



4,849


Total segments


1,799



1,701



1,745



1,806



1,531



6,783


Corporate expenses and other unallocated items


(25)



(27)



(42)



(46)



(25)



(140)


Eliminations and other


(99)



(36)



(50)



(46)



(96)



(228)


Total adjusted operating profit from continuing operations


$

1,675



$

1,638



$

1,653



$

1,714



$

1,410



$

6,415

















2020


2019

Operating Profit Margin, Adjusted


Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney


9.7

%


10.2

%


8.8

%


9.8

%


8.3

%


9.3

%

Collins Aerospace Systems


19.9

%


18.6

%


19.7

%


19.8

%


16.5

%


18.6

%

Total Segments Adjusted Operating Profit Margin


15.3

%


15.0

%


14.9

%


15.3

%


12.7

%


14.5

%

Raytheon Technologies Corporation

Legacy UTC Reconciliation of Reported (GAAP) to Adjusted (non GAAP) Segment Results


(dollars in millions)


2020


2019



Q1


Q1


Q2


Q3


Q4


FY

Pratt & Whitney













Net sales


$

5,353



$

4,818



$

5,154



$

5,285



$

5,645



$

20,902


Favorable impact of a contract termination


22












Adjusted net sales


$

5,331



$

4,818



$

5,154



$

5,285



$

5,645



$

20,902















Operating profit, Recast


$

475



$

478



$

449



$

520



$

354



$

1,801


Restructuring




(14)



(3)





(116)



(133)


Bad debt expense driven by customer bankruptcies and
collectability risk


(62)












Favorable impact of a contract termination


22












Adjusted operating profit


$

515



$

492



$

452



$

520



$

470



$

1,934


Adjusted operating profit margin


9.7

%


10.2

%


8.8

%


9.8

%


8.3

%


9.3

%














Collins Aerospace Systems













Net sales


$

6,438



$

6,513



$

6,576



$

6,495



$

6,444



$

26,028


Significant unfavorable adjustments to contract estimates


(22)












Adjusted net sales


$

6,460



$

6,513



$

6,576



$

6,495



$

6,444



$

26,028















Operating profit


$

1,246



$

964



$

1,276



$

1,259



$

1,009



$

4,508


Restructuring


(6)



(39)



(17)



(27)



(19)



(102)


Loss on sale of business




(25)









(25)


Amortization of Rockwell Collins inventory fair value
adjustment




(181)









(181)


Costs associated with pension plan amendment










(33)



(33)


Bad debt expense driven by customer bankruptcies and
collectability risk


(10)












Significant unfavorable adjustments to contract estimates


(22)












Adjusted operating profit


$

1,284



$

1,209



$

1,293



$

1,286



$

1,061



$

4,849


Adjusted operating profit margin


19.9

%


18.6

%


19.7

%


19.8

%


16.5

%


18.6

%














Corporate, Eliminations, and Other













Net sales


$

(431)



$

(378)



$

(401)



$

(407)



$

(395)



$

(1,581)















Eliminations and other













Operating profit


$

(25)



$

(27)



$

(42)



$

(46)



$

(25)



$

(140)


Adjusted operating profit


$

(25)



$

(27)



$

(42)



$

(46)



$

(25)



$

(140)















Corporate expenses and other unallocated items













Operating profit


$

(130)



$

(46)



$

(87)



$

(83)



$

(151)



$

(367)


Restructuring


(2)



(1)



(1)



(1)



(3)



(6)


Transaction and integration costs related to merger
agreement with Rockwell Collins, Inc.




(9)



(10)



(11)



(10)



(40)


Transaction expenses associated with the Raytheon
Merger


(29)





(26)



(25)



(32)



(83)


Costs associated with pension plan amendment










(10)



(10)


Adjusted operating profit


$

(99)



$

(36)



$

(50)



$

(46)



$

(96)



$

(228)















Total Adjusted net sales from continuing operations


$

11,360



$

10,953



$

11,329



$

11,373



$

11,694



$

45,349


Total Adjusted operating profit from continuing
operations


$

1,675



$

1,638



$

1,653



$

1,714



$

1,410



$

6,415


SOURCE Raytheon Technologies