Effective July 1, 2023, the company streamlined its core businesses into three principal segments: Collins Aerospace, Pratt & Whitney, and Raytheon. This realignment is intended to improve operational efficiency and strategic focus.

Collins achieved long-term agreements with global airlines valued at $3.5 billion, and was selected for key positions on Boeing's X-66A aircraft. Pratt & Whitney reached milestones on the GTF engine program and received contract awards for the F135 program. Raytheon achieved advancements in missile programs and received contract awards for various defense systems.

The company is undergoing a multi-year digital transformation initiative and continues to pursue structural cost reduction in its facilities, including aligning work to more efficient manufacturing centers, and implementing advanced manufacturing capabilities.

The company experienced supply chain disruptions that impacted its ability to procure raw materials, microelectronics, and certain commodities, resulting in delays and increased costs. These disruptions are expected to continue into 2024.

The company faces evolving cybersecurity threats, including attacks on its IT infrastructure and products, and is subject to increasing cybersecurity-related regulations. This requires continuous investments in protection and mitigation measures.

The company emphasizes attracting, developing, advancing, and retaining skilled talent, particularly in technical, engineering, and science fields. The company invests in workforce development programs and offers competitive compensation and benefits.

The company's performance is subject to changes in global economic conditions, international relations, geopolitical events, and actions, including inflation, credit market conditions, and trade policies. These factors can impact sales, costs, and profitability.

Changes in U.S. government defense spending, driven by policy, budget decisions, and appropriation processes, could negatively impact the company's financial position, results of operations, and liquidity.

The company's international sales and operations are subject to risks associated with political and economic factors, regulatory requirements, and competition. These include foreign currency fluctuations, trade policies, and local government regulations.

The company faces significant competition in all of its businesses, including aerospace and defense. Competitors may have more extensive resources, technological capabilities, and may receive government support.

The company faces competition from numerous domestic and foreign manufacturers, as well as companies that obtain regulatory approval to manufacture spare parts. Government policies also affect military spare parts sales.

The company's success depends on its ability to develop and introduce new products and technologies. This involves risks related to development, production, certification, and regulatory approvals, as well as customer acceptance and competition.

The company experienced supply chain disruptions and inflationary pressures that increased material and component prices, labor rates, and supplier costs. This has negatively affected the company's operating profits and margins.

The company has implemented restructuring actions, including workforce reductions and facility consolidations, in an effort to keep its cost structure competitive. These actions are intended to improve efficiency and reduce costs.

The company is undergoing a multi-year digital transformation initiative to improve its business, modernize operations, and reduce costs. This initiative includes leveraging digital capabilities throughout the company's processes.

The company invests substantial amounts in research and development activities to enhance existing products and services and develop future technologies to meet customer needs and address new business opportunities.

The company is investing in artificial intelligence and other advanced technologies to integrate into its products and services. This includes efforts to keep pace with rapidly changing technology.

The company maintains a robust portfolio of patents, trademarks, copyrights, trade secrets, licenses, and franchises related to its businesses. The company relies on a combination of these rights to protect its intellectual property.

The board authorized a share repurchase program of up to $11 billion, and the company entered into ASR agreements to repurchase $10 billion of common stock, reflecting management's confidence in future cash flow generation.

The company incurred $10 billion of long-term debt in connection with the ASR transactions, which may have various negative impacts on the business, including shifting cash flow from operations to debt payments.

The company declared quarterly cash dividends, reflecting a commitment to returning capital to shareholders, but these dividends may be discontinued, accelerated, suspended, or delayed at any time due to various factors.

The company strives to advance a diverse, equitable, and inclusive work environment. The company's DE&I framework is focused on workforce diversity, supplier diversity, community engagement, and DE&I public policy.

The company continues to invest in sustainable technologies, such as opening an electric airborne power research center and developing a full-scale prototype cooling system.

The company monitors developments in environmental and climate-related laws and regulations and their potential impact on its business and financial condition. These regulations could lead to new investments and increased operational expenditures.

The company's commercial aerospace businesses are directly tied to economic conditions in the commercial aerospace industry, which is cyclical in nature. Factors such as traffic levels, fuel prices, and airline profitability can affect demand.

The company's international sales and operations are sensitive to changes in foreign national priorities, government budgets, and political and economic factors, including wars, conflicts, and trade restrictions.

The company's businesses are subject to extensive regulation in the industries they serve, including U.S. government agencies, the FAA, and similar authorities in other countries. Compliance with these regulations is critical to operations.