Other Assets, Net
Other assets, net consisted of the following at December 31:
|
| | | | | | | |
(In millions) | 2013 |
| | 2012 |
|
Marketable securities held in trust | $ | 479 |
| | $ | 407 |
|
Computer software, net of accumulated amortization of $918 and $840 at December 31, 2013 and 2012, respectively | 340 |
| | 371 |
|
Other intangible assets, net of accumulated amortization of $242 and $192 at December 31, 2013 and 2012, respectively | 235 |
| | 293 |
|
Other noncurrent assets, net | 330 |
| | 260 |
|
Total | $ | 1,384 |
| | $ | 1,331 |
|
Computer software amortization expense was $82 million in 2013, $88 million in 2012 and $87 million in 2011.
Other intangible assets, net consisted primarily of drawings and intellectual property, and increased $3 million, $80 million and $115 million as a result of acquired businesses in 2013, 2012 and 2011, respectively. These intangible assets are being amortized over their estimated useful lives which range from 2 to 15 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 $60 million in 2013, $49 million in 2012 and $46 million in 2011.
Computer software and other intangible asset amortization expense is expected to approximate $136 million for each of the next five years.
Investments, which are included in other noncurrent assets, net above consisted of the following at December 31:
|
| | | | | | | | | |
(In millions, except percentages) | Ownership % | | 2013 |
| | 2012 |
|
Equity method investments | | | | | |
Thales-Raytheon Systems Co. Ltd. (TRS) | 50 | | $ | 71 |
| | $ | 69 |
|
Other investments | Various | | 9 |
| | 6 |
|
Total | | | $ | 80 |
| | $ | 75 |
|
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 $71 million investment in TRS, $63 million represents undistributed earnings at December 31, 2013. 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. TRS LLC had $46 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 the 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 which 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.
