Raytheon, during its third-quarter earnings conference, announced its decision to sell Flight Options, its Cleveland-based business aircraft fractional share division.
On October 15 the company entered into a definitive agreement to sell the fractional provider to HIG Capital, a Miami-based global private investment firm. “With the pending sale of Flight Options, going forward our attention will be focused on our core business, leading technologies and mission support to our global customers,” noted Raytheon chairman and CEO William Swanson. According to Raytheon, its “other” segment–which includes Flight Options–recorded an operating loss of $96 million in the third quarter compared with an operating loss of $10 million in the same period last year. In disposing of Flight Options, Raytheon will record after-tax impairment charges totaling $114 million in the second half of this year, which includes all of the fractional provider’s remaining goodwill and its intangible assets.
The deal is expected to close in the fourth quarter.