EX-99 2 a2024-10x228xkerexhibit99.htm EX-99

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RTX社、2024年第三四半期の業績を報告

RTXは強い運用パフォーマンスを提供します;

2024年の調整後売上高および調整後epsの見通しを向上させました*

2024年10月22日、バージニア州アーリントン–RTX（nyse：RTX）は2024年第3四半期の業績を発表しました。

2024年第3四半期

•売上高は201億ドル報告されています

•売上高は調整後$201億で、前年比は6％増加しました 前年比で6％増加しました 前年比で8％、調整後はサイバーセキュリティ、インテリジェンス、およびサービス ビジネスの売却を除く有機的に8％増加しました サイバーセキュリティ、インテリジェンス、およびサービス ビジネスの売却を除くと、前年比8％増加しました

•GAAPのepsは1.09ドルで、その内訳には0.31 の合計を含んでおり、そのうち0.05ドルは再編成やその他の重要で割合の示されるのほか、一時的な費用が含まれています

•調整後のEPS*は $1.45増加 16パーセント 前年比

•Operating cash flow of $25億; フリーキャッシュフロー* は $20億

•企業のバックログは2210億ドルで、うち商業が1310億ドル、ディフェンスが900億ドル含まれています

•株主に11億ドルの資本を返還し、合併以来320億ドル以上を返還しました。

•合併後の目標である20億ドルを達成し、増加したRTX総原価シナジーを9000万ドル実現しました

2024年度見通しを更新

•調整後の売上高は$79.25から$797.5億に上昇し、$78.75から$795億に上昇しました。

•調整後のEPSは$5.50から$5.58に上昇し、$5.35から$5.45に上昇しました。

•フリーキャッシュフローは約$47億で確認されました。

「RTXは調整後のセグメントマージンの拡大やフリーキャッシュフローの強い四半期を実現しました」とRTXの社長兼CEOクリス・カリオは述べました。「特に商用アフターマーケットとディフェンス分野において、私たちのポートフォリオ全体への需要は着実であり、調整販売額と調整EPSの通期見通しを再度上方修正する自信を与えています。」

「過去最高の2210億ドルのバックログを持ち、最優先の戦略を実行し、最高水準のパフォーマンスを実現し、お客様に提供し、長期的な株主価値を創出しています。」

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*調整後の純売上（調整売上とも呼ばれる）、オーガニック売上、調整後の営業利益（損失）およびマージン、調整後のセグメント営業利益（損失）およびマージン、調整後の当期純利益、調整後の1株当たり利益（“eps”）、調整後の実効税率およびフリーキャッシュフローは、非GAAP財務指標です。調整後の純売上（調整売上とも呼ばれる）、調整後のEPS、およびフリーキャッシュフローについて前向きでの期待を示す際に、これらの非GAAP財務指標を対応するGAAP指標（予想希薄化後epsおよび予想オペレーティングキャッシュフロー）に調整する和解が合理的な努力なしに利用できません。これは、関連する将来の期間においてGAAP基準から除外される可能性の高い変動性や複雑さ、低い可視性に起因し、さまざまな要素（異例の利益や損失、保留中の訴訟の最終結果、外国通貨為替レートの変動、潜在的な買収および売却の影響やタイミング、およびその他の構造的変更またはそれらの重要度）を不合理な努力なしで排除できません。除外される要素の変動性は、将来のGAAP結果に重要で、かつ予測困難な影響を与える可能性があります。非GAAP財務指標の使用と定義に関する情報については、以下の「非GAAP財務指標の使用と定義」を参照してください。予想希薄化後epsおよび予想オペレーションキャッシュフローといったGAAP指標から除外される項目について、非GAAP指標（調整後の純売上および調整後の純売上、調整後のEPS、およびフリーキャッシュフロー）との調整を提供することは、これらの非GAAP財務指標を相当するGAAP指標に和解することが、将来の期間におけるこれらの非GAAP財務指標に対して合理的な努力を払わなければ利用できない可能性が高く、複雑さや低い可視性から、関連する将来期間におけるGAAP基準から除外される要素の究極の結果、異例の利益および損失、保留中の訴訟の最終結果、外国通貨為替レートの変動、潜在的な買収および売却の影響と時期、およびその他の構造的変更またはそれらの重要性について低い可視性が原因です。除外される項目の変動性は、今後のGAAP結果に重要で、かつ予測困難な影響を与える可能性があります。非GAAP財務指標の使用と定義については、以下の「非GAAP財務指標の使用と定義」を参照してください。 Ex:異例の利益および損失、保留中の訴訟の最終結果、為替取引の変動、潜在的な買収および売却の影響とタイミング、その他の構造的変更またはそれらの重要性など、関連する将来の期間におけるGAAP基準から除外される可能性のある要素の理由で、調整された純売上、eps、フリーキャッシュフローに対応するこれらの非GAAP金融指標を和解することが、合理的な努力なしには利用できない場合があります。除外される要素の変動性により、将来のGAAP結果には重要で、予測不能な影響が生じる可能性があります。“非GAAP財務指標の使用と定義”を参照して、非GAAP財務指標に関する情報をご覧ください。

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2024年第3四半期

RTXは第3四半期の売上高が201億ドルを報告しました。調整後の売上高*は 201億ドルで、前年比6%増加しました。GAAP EPSは1.09ドルで、そのうち0.31ドルが買収会計調整、0.05ドルがリストラクチャリングおよびその他の重大かつ非継続的な費用でした。調整後のEPS*は前年比16%増の1.45ドルでした。

当該企業は第3四半期に普通株主に帰属する当期純利益を報告しました。 15億ドル これには4億1800万ドルの買収会計調整金と5800万ドルのリストラクチャリング費およびその他の重大かつ/または非継続的な費用が含まれています。調整後の当期純利益は19億ドルで、前年比で7％増加し、調整後セグメント営業利益の成長と低い法人税率によって推進されました。この増加は、より高い利子費用と低い年金収入によって一部相殺されました。第3四半期の営業キャッシュフローは25億ドルでした。資本支出は5億5200万ドルで、フリーキャッシュフローは20億ドルになりました。

前年の報告された結果には、かつて開示されたプラットの粉末金属に関連する負担が含まれており、売上高を54億ドル、当期純利益を22億ドル、GAAP EPSを1.53ドル減少させました。

財務結果の概要 — 普通株主に帰属する業務

						第3四半期
(百万ドル、EPS を除く)						2024						2023			% 変更
報告済み
セールス						$	20,089					$	13,464		49		%
純利益 (損失)						$	1,472					$	(984)		250		%
EPSです						$	1.09					$	(0.68)		260		%
調整済み*
セールス						$	20,089					$	18,952		6		%
純利益						$	1,948					$	1,822		7		%
EPSです						$	1.45					$	1.25		16		%
営業キャッシュフロー						$	2,523					$	3,316		(24)		%
フリーキャッシュフロー*						$	1,971					$	2,752		(28)		%

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リインシュアランス: 総保険料収入は前年同期比で9.7%増の20億ドルに改善しました。我々の見積もりは28億ドルでした。

コリンズ・エアロスペース

			第3四半期
(百万ドル)			2024						2023			% 変更
報告済み
セールス			$	7,075					$	6,629		7		%
営業利益			$	1,062					$	903		18		%
ロス			15.0		%				13.6		%	140			bps
調整済み*
セールス			$	7,075					$	6,686		6		%
営業利益			$	1,096					$	1,043		5		%
ロス			15.5		%				15.6		%	(10)			bps

コリンズ・エアロスペースは2024年第3四半期に707500万ドルの売上高を報告し、前年比7％増となりました。売上高の増加は、 ディフェンスが14％増、商用アフターマーケットが9％増となり、商用OEが8％減少したことが一部を相殺しました。 ディフェンス売上高の増加は、複数のプログラムでの高い出来高によるもので、商用アフターマーケット売上高の増加は、継続的な商用航空交通、フライト時間の増加によるものでした。商用OE売上高の減少は、単通路出来高の減少によるものでした。 調整後の売上高は707500万ドルで、前年比6％増となりました。 コリンズ・エアロスペースは2024年第3四半期に707500万ドルの売上高を報告し、前年比7％増となりました。売上高の増加は、.

Collins Aerospaceは、営業利益が$1億6200万に上昇し、前年比18％増加しました。営業利益の増加は、より高い商業市場後退品およびディフェンスの出来高によるものでした。この増加には、商業OEの出来高の低下、不利な商業OEのミックス、および高い研究開発費用による部分的な相殺が影響しました。2024年第3四半期は、前年に関連する$5700万の訴訟費用がないこと、および再編成費用の低下によって恩恵を受けました。調整後の基準による営業利益は$1億9600万で、前年比5％増加しました。

プラット・アンド・ホイットニー

			第3四半期
(百万ドル)			2024						2023			% 変更
報告済み
セールス			$	7,239					$	926		NM
営業利益 (損失)			$	557					$	(2,482)		NM
ロス			7.7		%				NM			NM
調整済み*
セールス			$	7,239					$	6,327		14		%
営業利益			$	597					$	413		45		%
ロス			8.2		%				6.5		%	170			bps

戦略的事業展開

プラット・アンド・ホイットニーは2024年第三四半期の売上高を723,900万ドルと報告しました。 調整後の売上高は723,900万ドルで、前年比14%増加しました。 商用アフターマーケットが13%増、軍事産業が20%増、商用OEが9%増のため、商用売上高が増加しました。

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アフターマーケットの出来高と、大型商用エンジンにおける有利なOEミックスも増加しました。軍事産業の売上高の増加は、F135およびF117プラットフォームでの高い維持出来高によって牽引され、またF135エンジンコアアップグレードプログラムによる高い開発出来高も要因でした。

Pratt & Whitney reported operating profit of $557 million, up versus the prior year. Operationally, the increase was driven by drop through on higher commercial aftermarket and military volume. Favorable mix and lower OE delivery volume in Large Commercial Engines were offset by higher production costs. On an adjusted basis, operating profit* of $597 million, was up 45 percent versus the prior year.

The prior year reported results included a charge related to the previously disclosed powder metal matter which reduced sales by $5,401 million and operating profit by $2,888 million.

Raytheon

			3rd Quarter
($ in millions)			2024						2023			% Change
Reported
Sales			$	6,386					$	6,472		(1)		%
Operating Profit			$	647					$	560		16		%
ROS			10.1		%				8.7		%	140			bps
Adjusted*
Sales			$	6,386					$	6,472		(1)		%
Operating Profit			$	661					$	570		16		%
ROS			10.4		%				8.8		%	160			bps

Raytheon had third quarter 2024 reported sales of $6,386 million, down 1 percent versus prior year. Higher volume on land and air defense systems, including Global Patriot, NASAMS and counter-UAS programs, as well as higher volume on advanced technology programs was more than offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business completed in the first quarter of 2024 and lower volume on air and space defense systems. Excluding the impact of the divestiture, sales were up 5 percent versus prior year*.

Raytheon reported operating profit of $647 million, up 16 percent versus the prior year. Favorable mix, improved net productivity, and drop through on higher volume was partially offset by the impact from the divestiture of the Cybersecurity, Intelligence and Services business. On an adjusted basis, operating profit* of $661 million was up 16 percent versus the prior year.

About RTX

With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

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Conference Call on the Third Quarter 2024 Financial Results

RTX’s financial results conference call will be held on Tuesday, October 22, 2024 at 8:30 a.m. ET. The conference call will be webcast live on the company's website at www.rtx.com and will be available for replay following the call. The corresponding presentation slides will be available for downloading prior to the call.

Use and Definitions of Non-GAAP Financial Measures

RTX Corporation (“RTX” or “the Company”) 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. We believe that these non-GAAP measures provide investors with additional insight into the Company’s ongoing business performance. 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. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Certain non-GAAP financial adjustments are also described in this Appendix. Below are our non-GAAP financial measures:

Non-GAAP measure			Definition
Adjusted net sales / Adjusted sales			Represents consolidated net sales (a GAAP measure), excluding net significant and/or non-recurring items1 (hereinafter referred to as “net significant and/or non-recurring items”).
Organic sales			Organic sales represents the change in consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and net significant and/or non-recurring items.
Adjusted operating profit (loss) and margin			Adjusted operating profit (loss) represents operating profit (loss) (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items. Adjusted operating profit margin represents adjusted operating profit (loss) as a percentage of adjusted net sales.
Segment operating profit (loss) and margin			Segment operating profit (loss) represents operating profit (loss) (a GAAP measure) excluding Acquisition Accounting Adjustments2, the FAS/CAS operating adjustment3, Corporate expenses and other unallocated items, and Eliminations and other. Segment operating profit margin represents segment operating profit (loss) as a percentage of segment sales (net sales, excluding Eliminations and other).
Adjusted segment sales			Represents consolidated net sales (a GAAP measure) excluding eliminations and other and net significant and/or non-recurring items.
Adjusted segment operating profit (loss) and margin			Adjusted segment operating profit (loss) represents segment operating profit (loss) excluding restructuring costs, and net significant and/or non-recurring items. Adjusted segment operating profit margin represents adjusted segment operating profit (loss) as a percentage of adjusted segment sales (adjusted net sales excluding Eliminations and other).
Adjusted net income			Adjusted net income represents net income (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.
Adjusted earnings per share (EPS)			Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.

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Adjusted effective tax rate			Adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding the tax impact of restructuring costs, acquisition accounting adjustments and net significant and/or non-recurring items.
Free cash flow			Free cash flow 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 RTX’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of RTX’s common stock and distribution of earnings to shareowners.

1 Net significant and/or non-recurring items represent significant nonoperational items and/or significant operational items that may occur at irregular intervals.

2 Acquisition Accounting Adjustments include the amortization of acquired intangible assets related to acquisitions, the amortization of the property, plant and equipment fair value adjustment acquired through acquisitions, the amortization of customer contractual obligations related to loss making or below market contracts acquired, and goodwill impairment, if applicable.

3 The FAS/CAS operating adjustment represents the difference between the service cost component of our pension and postretirement benefit (PRB) expense under the Financial Accounting Standards (FAS) requirements of GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our Raytheon segment.

When we provide our expectation for adjusted net sales (also referred to as adjusted sales), organic sales, adjusted operating profit (loss) and margin, adjusted segment operating profit (loss) and margin, adjusted EPS, adjusted effective tax rate, and free cash flow, on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally are 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 RTX Corporation (“RTX”) management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid and are not statements of historical fact. 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,” “goals,” “objectives,” “confident,” “on track,” “designed to” 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 payments and rates, research and development spending, cost savings, other measures of financial performance, potential future plans, strategies or transactions, credit ratings and net indebtedness, the Pratt powder metal matter and related matters and activities, including without limitation other engine models that may be impacted, the merger (the “merger”) between United Technologies Corporation (“UTC”) and Raytheon Company (“Raytheon”) or the spin-offs by UTC of Otis Worldwide Corporation and Carrier Global Corporation into separate independent companies (the “separation transactions”) in 2020, targets and commitments (including for share repurchases or otherwise), 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 changes in economic, capital market and political conditions in the U.S. and globally, such as from the global sanctions and export controls with respect to Russia, and any changes therein, and including changes related to financial market conditions, banking industry disruptions, fluctuations in commodity prices or supply (including energy supply), inflation, interest rates and foreign currency exchange rates, disruptions in global supply chain

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and labor markets, and geopolitical risks, including in the middle east and Ukraine; (2) risks associated with U.S. government sales, including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration, a continuing resolution, a government shutdown, the debt ceiling or measures taken to avoid default, or otherwise, the effect of the outcome of the November 2024 elections, and uncertain funding of programs; (3) risks relating to our performance on our contracts and programs, including our ability to control costs, and our inability to pass some or all of our costs on fixed price contracts to the customer, and risks related to our dependence on U.S. government approvals for international contracts, and risks related to any termination of these contracts or programs, including the outcome of such terminations and related payments; (4) challenges in the development, production, delivery, support, and performance of RTX advanced technologies and new products and services and the realization of the anticipated benefits (including our expected returns under customer contracts), as well as the challenges of operating in RTX’s highly-competitive industries; (5) risks relating to RTX’s reliance on U.S. and non-U.S. suppliers and commodity markets, including the effect of sanctions, delays and disruptions in the delivery of materials and services to RTX or its suppliers and price increases; (6) risks relating to RTX international operations from, among other things, changes in trade policies and implementation of sanctions, foreign currency fluctuations, economic conditions, political factors, sales methods, and U.S. or local government regulations; (7) the condition of the aerospace industry; (8) the ability of RTX to attract, train and retain qualified personnel and maintain its culture and high ethical standards, and the ability of our personnel to continue to operate our facilities and businesses around the world; (9) the scope, nature, timing and challenges of managing acquisitions, investments, divestitures and other transactions, including the realization of synergies and opportunities for growth and innovation, the assumption of liabilities and other risks and incurrence of related costs and expenses, and risks related to completion of announced divestitures; (10) compliance with legal, environmental, regulatory and other requirements, including, among other things, export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anticorruption requirements, such as the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations in the U.S. and other countries in which RTX and its businesses operate; (11) the outcome of pending, threatened and future legal proceedings, investigations, and other contingencies (including the ultimate outcome of those certain legacy legal matters described above), including those related to U.S. government audits and disputes and the potential for suspension or debarment of U.S. government contracting or export privileges as a result thereof; (12) factors that could impact RTX’s ability to engage in desirable capital-raising or strategic transactions, including its credit rating, capital structure, levels of indebtedness and related obligations, capital expenditures and research and development spending, and capital deployment strategy including with respect to share repurchases, and the availability of credit, borrowing costs, credit market conditions, and other factors; (13) uncertainties associated with the timing and scope of future repurchases by RTX of its common stock or declarations of cash dividends, which may be discontinued, accelerated, suspended or delayed at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (14) risks relating to realizing expected benefits from, incurring costs for, and successfully managing, strategic initiatives such as cost reduction, restructuring, digital transformation and other operational initiatives; (15) risks of additional tax exposures due to new tax legislation or other developments, in the U.S. and other countries in which RTX and its businesses operate; (16) risks relating to addressing the identified rare condition in powder metal used to manufacture certain Pratt & Whitney engine parts requiring accelerated removals and inspections of a significant portion of the PW1100G-JM Geared Turbofan (GTF) fleet, including, without limitation, the number and expected timing of shop visits, inspection results and scope of work to be performed, turnaround time, availability of new parts, available capacity at overhaul facilities, outcomes of negotiations with impacted customers, and risks related to other engine models that may be impacted by the powder metal matter, and in each case the timing and costs relating thereto, as well as other issues that could impact RTX product performance, including quality, reliability or durability; (17) changes in production volumes of one or more of our significant customers as a result of business, labor, or other challenges, and the resulting effect on its or their demand for our products and services; (18) risks relating to a RTX product safety failure or other failure affecting RTX’s or its customers’ or suppliers’ products or systems; (19) risks relating to cybersecurity, including cyber-attacks on RTX’s information technology infrastructure, products, suppliers, customers and partners, and cybersecurity-related regulations; (20) threats to RTX facilities and personnel, as well as other events outside of RTX’s control such as public health crises, damaging weather or other acts of nature; (21) the effect of changes in accounting estimates for our programs on our financial results; (22) the effect of changes in pension and other postretirement plan estimates and assumptions and contributions; (23) risks relating to an impairment of goodwill and other intangible assets; (24) the effects of climate change and changing climate-related regulations, customer and market demands, products and technologies; and (25) the intended qualification of (i) the merger as a tax-free reorganization and (ii) the separation transactions and other internal restructurings as tax-free to UTC and former UTC shareowners, in each case, for U.S. federal income tax purposes. 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 RTX, 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 RTX

7

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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.

8

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RTX Corporation

Condensed Consolidated Statement of Operations

						Quarter Ended September 30,												Nine Months Ended September 30,
						(Unaudited)												(Unaudited)
(dollars in millions, except per share amounts; shares in millions)						2024						2023						2024						2023
Net Sales						$	20,089					$	13,464					$	59,115					$	48,993
Costs and expenses:
			Cost of sales			16,055						12,750						47,940						40,913
			Research and development			751						712						2,126						2,048
			Selling, general, and administrative			1,389						1,401						4,232						4,364
			Total costs and expenses			18,195						14,863						54,298						47,325
Other income (expense), net						134						3						(390)						116
Operating profit (loss)						2,028						(1,396)						4,427						1,784
			Non-service pension income			(374)						(443)						(1,134)						(1,334)
			Interest expense, net			496						369						1,376						1,017
Income (loss) before income taxes						1,906						(1,322)						4,185						2,101
			Income tax expense (benefit)			371						(389)						732						194
Net income (loss)						1,535						(933)						3,453						1,907
			Less: Noncontrolling interest in subsidiaries’ earnings			63						51						161						138
Net income (loss) attributable to common shareowners						$	1,472					$	(984)					$	3,292					$	1,769
Earnings (Loss) Per Share attributable to common shareowners:
			Basic			$	1.10					$	(0.68)					$	2.47					$	1.22
			Diluted			$	1.09					$	(0.68)					$	2.45					$	1.21
Weighted Average Shares Outstanding:
			Basic shares			1,333.2						1,448.1						1,331.4						1,455.7
			Diluted shares			1,346.2						1,448.1						1,341.8						1,465.9

9

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RTX Corporation

Segment Net Sales and Operating Profit (Loss)

			Quarter Ended																		Nine Months Ended
			(Unaudited)																		(Unaudited)
			September 30, 2024									September 30, 2023									September 30, 2024									September 30, 2023
(dollars in millions)			Reported			Adjusted						Reported			Adjusted						Reported			Adjusted						Reported			Adjusted
Net Sales
Collins Aerospace			$	7,075		$	7,075					$	6,629		$	6,686					$	20,747		$	20,747					$	19,133		$	19,190
Pratt & Whitney			7,239			7,239						926			6,327						20,497			20,497						11,857			17,258
Raytheon			6,386			6,386						6,472			6,472						19,556			19,626						19,464			19,464
Total segments			20,700			20,700						14,027			19,485						60,800			60,870						50,454			55,912
Eliminations and other			(611)			(611)						(563)			(533)						(1,685)			(1,685)						(1,461)			(1,431)
Consolidated			$	20,089		$	20,089					$	13,464		$	18,952					$	59,115		$	59,185					$	48,993		$	54,481
Operating Profit (Loss)
Collins Aerospace			$	1,062		$	1,096					$	903		$	1,043					$	3,029		$	3,289					$	2,699		$	2,861
Pratt & Whitney			557			597						(2,482)			413						1,511			1,564						(1,837)			1,283
Raytheon			647			661						560			570						1,770			2,000						1,775			1,816
Total segments			2,266			2,354						(1,019)			2,026						6,310			6,853						2,637			5,960
Eliminations and other			(14)			(14)						(69)			(39)						(55)			(55)						(34)			(82)
Corporate expenses and other unallocated items			100			(71)						(63)			(31)						(926)			(103)						(165)			(99)
FAS/CAS operating adjustment			210			210						272			272						636			636						845			845
Acquisition accounting adjustments			(534)			—						(517)			—						(1,538)			—						(1,499)			—
Consolidated			$	2,028		$	2,479					$	(1,396)		$	2,228					$	4,427		$	7,331					$	1,784		$	6,624
Segment Operating Profit (Loss) Margin
Collins Aerospace			15.0		%	15.5		%				13.6		%	15.6		%				14.6		%	15.9		%				14.1		%	14.9		%
Pratt & Whitney			7.7		%	8.2		%				(268.0)		%	6.5		%				7.4		%	7.6		%				(15.5)		%	7.4		%
Raytheon			10.1		%	10.4		%				8.7		%	8.8		%				9.1		%	10.2		%				9.1		%	9.3		%
Total segment			10.9		%	11.4		%				(7.3)		%	10.4		%				10.4		%	11.3		%				5.2		%	10.7		%

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RTX Corporation

Condensed Consolidated Balance Sheet

			September 30, 2024						December 31, 2023
(dollars in millions)			(Unaudited)						(Unaudited)
Assets
Cash and cash equivalents			$	6,682					$	6,587
Accounts receivable, net			10,097						10,838
Contract assets			14,684						12,139
Inventory, net			13,465						11,777
Other assets, current			6,836						7,076
Total current assets			51,764						48,417
Customer financing assets			2,306						2,392
Fixed assets, net			15,886						15,748
Operating lease right-of-use assets			1,846						1,638
Goodwill			53,759						53,699
Intangible assets, net			34,159						35,399
Other assets			5,102						4,576
Total assets			$	164,822					$	161,869
Liabilities, Redeemable Noncontrolling Interest, and Equity
Short-term borrowings			$	220					$	189
Accounts payable			11,834						10,698
Accrued employee compensation			2,673						2,491
Other accrued liabilities			15,971						14,917
Contract liabilities			18,436						17,183
Long-term debt currently due			3,113						1,283
Total current liabilities			52,247						46,761
Long-term debt			38,823						42,355
Operating lease liabilities, non-current			1,592						1,412
Future pension and postretirement benefit obligations			2,230						2,385
Other long-term liabilities			7,071						7,511
Total liabilities			101,963						100,424
Redeemable noncontrolling interest			33						35
Shareowners’ Equity:
Common stock			37,276						37,040
Treasury stock			(27,141)						(26,977)
Retained earnings			52,948						52,154
Accumulated other comprehensive loss			(1,969)						(2,419)
Total shareowners’ equity			61,114						59,798
Noncontrolling interest			1,712						1,612
Total equity			62,826						61,410
Total liabilities, redeemable noncontrolling interest, and equity			$	164,822					$	161,869

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RTX Corporation

Condensed Consolidated Statement of Cash Flows

			Quarter Ended September 30,												Nine Months Ended September 30,
			(Unaudited)												(Unaudited)
(dollars in millions)			2024						2023						2024						2023
Operating Activities:
Net income (loss)			$	1,535					$	(933)					$	3,453					$	1,907
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation and amortization			1,094						1,074						3,225						3,152
Deferred income tax benefit			(304)						(28)						(119)						(728)
Stock compensation cost			105						107						328						319
Net periodic pension and other postretirement income			(326)						(386)						(992)						(1,164)
Gain on sale of business, net of transaction costs			—						—						(415)						—
Change in:
Accounts receivable			349						(214)						936						(913)
Contract assets			(996)						267						(2,453)						(1,163)
Inventory			(344)						(108)						(1,705)						(1,430)
Other current assets			(459)						(244)						(242)						(878)
Accounts payable and accrued liabilities			1,082						3,571						2,327						3,422
Contract liabilities			684						174						1,196						429
Other operating activities, net			103						36						59						219
Net cash flows provided by operating activities			2,523						3,316						5,598						3,172
Investing Activities:
Capital expenditures			(552)						(564)						(1,556)						(1,610)
Dispositions of businesses, net of cash transferred			—						6						1,283						6
Increase in other intangible assets			(129)						(222)						(447)						(536)
Receipts (payments) from settlements of derivative contracts, net			32						(63)						3						(18)
Other investing activities, net			(66)						(16)						(38)						97
Net cash flows used in investing activities			(715)						(859)						(755)						(2,061)
Financing Activities:
Proceeds from long-term debt			—						—						—						2,974
Repayment of long-term debt			—						(172)						(1,700)						(175)
Change in commercial paper, net			—						3						—						473
Change in other short-term borrowings, net			(12)						92						31						68
Dividends paid on common stock			(823)						(838)						(2,415)						(2,472)
Repurchase of common stock			(294)						(1,429)						(394)						(2,587)
Other financing activities, net			(29)						(33)						(271)						(190)
Net cash flows used in financing activities			(1,158)						(2,377)						(4,749)						(1,909)
Effect of foreign exchange rate changes on cash and cash equivalents			23						(15)						11						4
Net increase (decrease) in cash, cash equivalents and restricted cash			673						65						105						(794)
Cash, cash equivalents and restricted cash, beginning of period			6,058						5,432						6,626						6,291
Cash, cash equivalents and restricted cash, end of period			6,731						5,497						6,731						5,497
Less: Restricted cash, included in Other assets, current and Other assets			49						41						49						41
Cash and cash equivalents, end of period			$	6,682					$	5,456					$	6,682					$	5,456

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RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin

			Quarter Ended September 30,												Nine Months Ended September 30,
			(Unaudited)												(Unaudited)
(dollars in millions - Income (Expense))			2024						2023						2024						2023
Collins Aerospace
Net sales			$	7,075					$	6,629					$	20,747					$	19,133
Charges related to a litigation matter (1)			—						(57)						—						(57)
Adjusted net sales			$	7,075					$	6,686					$	20,747					$	19,190
Operating profit			$	1,062					$	903					$	3,029					$	2,699
Restructuring			(12)						(64)						(30)						(72)
Charge associated with initiating alternative titanium sources (1)			—						—						(175)						—
Segment and portfolio transformation costs			(22)						(19)						(55)						(33)
Charges related to a litigation matter (1)			—						(57)						—						(57)
Adjusted operating profit			$	1,096					$	1,043					$	3,289					$	2,861
Adjusted operating profit margin			15.5		%				15.6		%				15.9		%				14.9		%
Pratt & Whitney
Net sales			$	7,239					$	926					$	20,497					$	11,857
Powder Metal charge (1)			—						(5,401)						—						(5,401)
Adjusted net sales			$	7,239					$	6,327					$	20,497					$	17,258
Operating profit (loss)			$	557					$	(2,482)					$	1,511					$	(1,837)
Restructuring			(13)						(7)						(46)						(51)
Insurance settlement			7						—						27						—
Powder Metal charge (1)			—						(2,888)						—						(2,888)
Charges related to a customer insolvency (1)			—						—						—						(181)
Expected settlement of a litigation matter (1)			(34)						—						(34)						—
Adjusted operating profit			$	597					$	413					$	1,564					$	1,283
Adjusted operating profit margin			8.2		%				6.5		%				7.6		%				7.4		%
Raytheon
Net sales			$	6,386					$	6,472					$	19,556					$	19,464
Contract termination (1)			—						—						(70)						—
Adjusted net sales			$	6,386					$	6,472					$	19,626					$	19,464
Operating profit			$	647					$	560					$	1,770					$	1,775
Restructuring			(14)						(9)						(30)						(33)
Gain on sale of business, net of transaction and other related costs (1)			—						—						375						—
Segment and portfolio transformation costs			—						(1)						—						(8)
Contract termination (1)			—						—						(575)						—
Adjusted operating profit			$	661					$	570					$	2,000					$	1,816
Adjusted operating profit margin			10.4		%				8.8		%				10.2		%				9.3		%
Eliminations and Other
Net sales			$	(611)					$	(563)					$	(1,685)					$	(1,461)
Prior year impact from R&D capitalization IRS notice (1)			—						(30)						—						(30)
Adjusted net sales			$	(611)					$	(533)					$	(1,685)					$	(1,431)
Operating loss			$	(14)					$	(69)					$	(55)					$	(34)
Prior year impact from R&D capitalization IRS notice (1)			—						(30)						—						(30)
Gain on sale of land			—						—						—						68
Charges related to a customer insolvency (1)			—						—						—						10
Adjusted operating loss			$	(14)					$	(39)					$	(55)					$	(82)

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Corporate expenses and other unallocated items
Operating profit (loss)			$	100					$	(63)					$	(926)					$	(165)
Restructuring			(6)						(24)						(9)						(46)
Tax audit settlements (1)			—						—						(68)						—
Segment and portfolio transformation costs			(3)						(8)						(8)						(20)
Legal matters (1)			—						—						(918)						—
Tax matters and related indemnification (1)			180						—						180						—
Adjusted operating loss			$	(71)					$	(31)					$	(103)					$	(99)
FAS/CAS Operating Adjustment
Operating profit			$	210					$	272					$	636					$	845
Acquisition Accounting Adjustments
Operating loss			$	(534)					$	(517)					$	(1,538)					$	(1,499)
Acquisition accounting adjustments			(534)						(517)						(1,538)						(1,499)
Adjusted operating profit			$	—					$	—					$	—					$	—
RTX Consolidated
Net sales			$	20,089					$	13,464					$	59,115					$	48,993
Total net significant and/or non-recurring items included in Net sales above (1)			—						(5,488)						(70)						(5,488)
Adjusted net sales			$	20,089					$	18,952					$	59,185					$	54,481
Operating profit (loss)			$	2,028					$	(1,396)					$	4,427					$	1,784
Restructuring			(45)						(104)						(115)						(202)
Acquisition accounting adjustments			(534)						(517)						(1,538)						(1,499)
Total net significant and/or non-recurring items included in Operating profit above (1)			128						(3,003)						(1,251)						(3,139)
Adjusted operating profit			$	2,479					$	2,228					$	7,331					$	6,624

(1)    Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

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RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Adjusted Income, Earnings Per Share, and Effective Tax Rate

			Quarter Ended September 30,												Nine Months Ended September 30,
			(Unaudited)												(Unaudited)
(dollars in millions - Income (Expense))			2024						2023						2024						2023
Net income (loss) attributable to common shareowners			$	1,472					$	(984)					$	3,292					$	1,769
Total Restructuring			(45)						(104)						(115)						(202)
Total Acquisition accounting adjustments			(534)						(517)						(1,538)						(1,499)
Total net significant and/or non-recurring items included in Operating profit (loss) (1)			128						(3,003)						(1,251)						(3,139)
Significant and/or non-recurring items included in Non-service Pension Income
Non-service pension restructuring			(4)						—						(9)						(2)
Pension curtailment related to sale of business (1)			—						—						9						—
Significant non-recurring and non-operational items included in Interest Expense, Net
Tax audit settlements (1)			—						—						78						—
Tax matters and related indemnification			(11)						—						(11)						—
Tax effect of restructuring and net significant and/or non-recurring items above			148						826						364						1,092
Significant and/or non-recurring items included in Income Tax Expense (Benefit)
Tax audit settlements (1)			—						—						296						—
Prior year R&D state tax item (1)			—						(8)						—						(8)
Tax matters and related indemnification			(156)						—						(156)						—
Significant and/or non-recurring items included in Noncontrolling Interest
Noncontrolling interest share of charges related to an insurance settlement			(2)						—						(9)						—
Noncontrolling interest share of customer insolvency charges (1)			—						—						—						17
Less: Impact on net income (loss) attributable to common shareowners			(476)						(2,806)						(2,342)						(3,741)
Adjusted net income attributable to common shareowners			$	1,948					$	1,822					$	5,634					$	5,510
Diluted Earnings (Loss) Per Share			$	1.09					$	(0.68)					$	2.45					$	1.21
Impact on Diluted Earnings Per Share			(0.36)						(1.93)						(1.75)						(2.55)
Adjusted Diluted Earnings Per Share			$	1.45					$	1.25					$	4.20					$	3.76
Effective Tax Rate			19.5%						29.4%						17.5%						9.2%
Impact on Effective Tax Rate			4.2%						10.8%						(0.1)%						(9.2)%
Adjusted Effective Tax Rate			15.3%						18.6%						17.6%						18.4%

(1)    Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

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RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Segment Operating Profit Margin and Adjusted Segment Operating Profit Margin

			Quarter Ended September 30,												Nine Months Ended September 30,
			(Unaudited)												(Unaudited)
(dollars in millions - Income (Expense))			2024						2023						2024						2023
Net Sales			$	20,089					$	13,464					$	59,115					$	48,993
Reconciliation to segment net sales:
Eliminations and other			611						563						1,685						1,461
Segment Net Sales			$	20,700					$	14,027					$	60,800					$	50,454
Reconciliation to adjusted segment net sales:
Net significant and/or non-recurring items (1)			—						(5,458)						(70)						(5,458)
Adjusted Segment Net Sales			$	20,700					$	19,485					$	60,870					$	55,912
Operating Profit (Loss)			$	2,028					$	(1,396)					$	4,427					$	1,784
Operating Profit (Loss) Margin			10.1		%				(10.4)		%				7.5		%				3.6		%
Reconciliation to segment operating profit (loss):
Eliminations and other			14						69						55						34
Corporate expenses and other unallocated items			(100)						63						926						165
FAS/CAS operating adjustment			(210)						(272)						(636)						(845)
Acquisition accounting adjustments			534						517						1,538						1,499
Segment Operating Profit (Loss)			$	2,266					$	(1,019)					$	6,310					$	2,637
Segment Operating Profit (Loss) Margin			10.9		%				(7.3)		%				10.4		%				5.2		%
Reconciliation to adjusted segment operating profit:
Restructuring			(39)						(80)						(106)						(156)
Net significant and/or non-recurring items (1)			(49)						(2,965)						(437)						(3,167)
Adjusted Segment Operating Profit			$	2,354					$	2,026					$	6,853					$	5,960
Adjusted Segment Operating Profit Margin			11.4		%				10.4		%				11.3		%				10.7		%

(1)    Refer to “Non-GAAP Financial Adjustments” below for a description of these adjustments.

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RTX Corporation

Free Cash Flow Reconciliation

			Quarter Ended September 30,
			(Unaudited)
(dollars in millions)			2024						2023
Net cash flows provided by operating activities			$	2,523								$	3,316
Capital expenditures			(552)									(564)
Free cash flow			$	1,971								$	2,752
			Nine Months Ended September 30,
			(Unaudited)
(dollars in millions)			2024						2023
Net cash flows provided by operating activities			$	5,598								$	3,172
Capital expenditures			(1,556)									(1,610)
Free cash flow			$	4,042								$	1,562

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RTX Corporation

Reconciliation of Adjusted (Non-GAAP) Results

Organic Sales Reconciliation

			Quarter ended September 30, 2024 compared to the Quarter Ended September 30, 2023
			(Unaudited)
(dollars in millions)			Total Reported Change			Acquisitions & Divestitures Change			FX / Other Change			Organic Change						Prior Year Adjusted Sales (1)			Organic Change as a % of Adjusted Sales
Collins Aerospace			$	446		$	—		$	59		$	387					$	6,686		6		%
Pratt & Whitney			6,313			—			5,414			899						6,327			14		%
Raytheon			(86)			(430)			7			337						6,472			5		%
Eliminations and Other (2)			(48)			—			20			(68)						(533)			13		%
Consolidated			$	6,625		$	(430)		$	5,500		$	1,555					$	18,952		8		%

(1)    For the full Non-GAAP reconciliation of adjusted sales refer to “Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin.”

(2)    FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney’s FX/Other Change, but excluded for Consolidated RTX.

			Nine Months Ended September 30, 2024 compared to the Nine Months Ended September 30, 2023
			(Unaudited)
(dollars in millions)			Total Reported Change			Acquisitions & Divestitures Change			FX / Other Change			Organic Change						Prior Year Adjusted Sales (1)			Organic Change as a % of Adjusted Sales
Collins Aerospace			$	1,614		$	—		$	60		$	1,554					$	19,190		8		%
Pratt & Whitney			8,640			—			5,409			3,231						17,258			19		%
Raytheon			92			(862)			(62)			1,016						19,464			5		%
Eliminations and Other (2)			(224)			—			(12)			(212)						(1,431)			15		%
Consolidated			$	10,122		$	(862)		$	5,395		$	5,589					$	54,481		10		%

(1)    For the full Non-GAAP reconciliation of adjusted sales refer to “Reconciliation of Adjusted (Non-GAAP) Results - Adjusted Sales, Adjusted Operating Profit & Operating Profit Margin.”

(2)    FX/Other Change includes the transactional impact of foreign exchange hedging at Pratt & Whitney Canada, which is included in Pratt & Whitney’s FX/Other Change, but excluded for Consolidated RTX.

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Non-GAAP Financial Adjustments

Non-GAAP Adjustments			Description
Charges related to a litigation matter			The quarter and nine months ended September 30, 2023 includes a net sales reduction of $57 million and a corresponding net operating profit reduction of $57 million related to the settlement of a customer litigation matter at Collins. Management has determined that the nature and significance of the settlement is considered unusual and therefore, not indicative of the Company’s ongoing operational performance.
Charge associated with initiating alternative titanium sources			The nine months ended September 30, 2024 includes a net pre-tax charge of $0.2 billion related to the recognition of unfavorable purchase commitments and an impairment of contract fulfillment costs associated with initiating alternative titanium sources at Collins. These charges were recorded as a result of the Canadian government’s imposition of new sanctions in February 2024, which included U.S.- and German-based Russian-owned entities from which we source titanium for use in our Canadian operations. Management has determined that these impacts are directly attributable to the sanctions, incremental to similar costs incurred for reasons other than those related to the sanctions and has determined that the nature of the charge is considered significant and unusual, and therefore, not indicative of the Company’s ongoing operational performance.
Powder Metal charge			The quarter and nine months ended September 30, 2023 includes a net pre-tax charge of $2.9 billion related to the Pratt powder metal matter during the third quarter of 2023. The charge is reflected in the Condensed Consolidated Statement of Operations as a reduction of sales of $5.4 billion which was partially offset by a net reduction of cost of sales of $2.5 billion primarily representing our partners’ 49% share of this charge. The charge includes the Company’s current best estimate of expected customer compensation for the estimated duration of the disruption as well as the third quarter Estimate-at-Completion (EAC) adjustment impact of this matter to Pratt & Whitney’s long-term maintenance contracts. Management has determined that these items are directly attributable to the powder metal matter, incremental to similar costs (or income) incurred for reasons other than those related to the powder metal matter and not expected to recur, and therefore, not indicative of the Company’s ongoing operational performance.
Charges related to a customer insolvency			The nine months ended September 30, 2023 includes a net pre-tax charge of $0.2 billion related to a customer insolvency during the second quarter of 2023. The charge primarily relates to Contract assets and Customer financing assets exposures with the customer. Management has determined that the nature and significance of the charge is considered unusual and, therefore not indicative of the Company’s ongoing operational performance.
Expected settlement of a litigation matter			The quarter and nine months ended September 30, 2024 includes a pre-tax charge of $34 million reflecting the expected settlement value relating to a litigation matter at Pratt and Whitney. Management has determined that the impact is directly attributable to the expected legal settlement and that the nature of the charge is considered non-operational and therefore, not indicative of the Company’s ongoing operational performance.
Contract termination			The nine months ended September 30, 2024 includes a pre-tax charge of 0.6 billion related to the anticipated termination of a fixed price development contract with a foreign customer at Raytheon. The charge includes the write-off of remaining contract assets and our best estimate of the expected settlement in conjunction with this termination. Management has determined that these impacts are directly attributable to the expected termination, incremental to similar costs incurred for reasons other than those attributable to the termination and has determined that the nature of the pre-tax charge is considered significant and unusual and therefore, not indicative of the Company’s ongoing operational performance.
Gain on sale of business, net of transaction and other related costs			The nine months ended September 30, 2024 includes a pre-tax gain, net of transaction and other related costs, of $0.4 billion associated with the completed sale of the Cybersecurity, Intelligence and Services (CIS) business at Raytheon. Management has determined that the nature of the net gain on the divestiture is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.

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Prior year impact from R&D capitalization IRS notice			The quarter and nine months ended September 30, 2023 includes a net pre-tax charge of $30 million and a tax expense increase of $8 million related to the 2022 impact of an IRS notice issued in September 2023 related to the capitalization of research and experimental expenditures for tax purposes. Management has determined that these items are directly attributable to the IRS notice and represents the impact to 2022, incremental to similar costs (or income) incurred for reasons other than the tax law change and not expected to recur, and therefore, not indicative of the Company’s ongoing operational performance.
Tax audit settlements			The nine months ended September 30, 2024 includes a tax benefit of $0.3 billion recognized as a result of the closure of the examination phase of multiple federal tax audits. In addition, there was a pre-tax charge of $68 million for the write-off of certain tax related indemnity receivables and a pre-tax gain on the reversal of $78 million of interest accruals, both directly associated with these tax audit settlements. Management has determined that the nature of these impacts related to the tax audit settlements is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.
Legal matters			The nine months ended September 30, 2024 includes charges of $0.9 billion related to the expected resolution of several outstanding legal matters. The charge includes an additional accrual of $0.3 billion to resolve the previously disclosed criminal and civil government investigations of defective pricing claims for certain legacy Raytheon Company contracts entered into between 2011 and 2013 and in 2017; an additional accrual of $0.4 billion to resolve the previously disclosed criminal and civil government investigations of improper payments made by Raytheon Company and its joint venture, Thales-Raytheon Systems, in connection with certain Middle East contracts since 2012; and an accrual of $0.3 billion related to certain voluntarily disclosed export controls violations, primarily identified in connection with the integration of Rockwell Collins and, to a lesser extent, Raytheon Company, including certain violations expected to be resolved pursuant to a consent agreement with the Department of State. Management has determined that these impacts are directly attributable to these legacy legal matters and that the nature of the charges are considered significant and unusual and therefore, not indicative of the Company’s ongoing operational performance.
Tax matters and related indemnification			The quarter and nine months ended September 30, 2024 includes the impact of a recent favorable international tax court ruling related to certain tax payments made by a previously separated entity. As a result of this ruling, and the expected reimbursement of international taxes to the previously separated entity, the Company will owe additional U.S. income tax of $0.2 billion and related interest. The Company recorded a pre-tax benefit of $0.2 billion to recognize recovery of the additional taxes and interest owed pursuant to a tax matters agreement entered into in connection with the separation. There was no net income impact in the third quarter of 2024 as a result of this adjustment. We also recognized an income tax benefit of $56 million in response to favorable U.S. Tax Court rulings issued to unrelated taxpayers, but with facts similar to ours. The nature of the tax item in the rulings is subject to the tax matters agreement with previously separated entities and therefore we recorded a pre-tax charge of $32 million for the indemnified amounts. Management has determined that the nature of these impacts to both pre-tax income and income tax expense is considered significant and non-operational and therefore, not indicative of the Company’s ongoing operational performance.

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