6. Mckesson Corporation
> FY 2015 contract obligations: $8.36 billion
> FY 2014 contract obligations: $6.21 billion
> FY 2014-2015 change: 34.6%
> Headquarters: San Francisco, California
California-based pharmaceutical and information technology company Mckesson Corporation received over $8 billion in payouts through U.S. government contracts in 2015.
Mckesson Corporation does not report the exact portion of operating revenue obtained through government contracts. However, while most companies on this list rely very heavily on their business relationships with the U.S. government, it is clear that a relatively small share of Mckesson’s annual revenue comes from sales to the U.S. government. In fact, the company’s largest customer is CVS Health, which accounted for over 20% of total annual revenue. With $190.88 billion in reported revenue in its fiscal 2015, Mckesson Corporation is one of the largest companies in the world.
5. Northrop Grumman Corporation
> FY 2015 contract obligations: $10.64 billion
> FY 2014 contract obligations: $10.26 billion
> FY 2014-2015 change: 3.6%
> Headquarters: Falls Church, Virginia
Aerospace and defense company Northrop Grumman derives nearly all of its revenue from U.S. and foreign government contracts. Nearly $20 billion of the defense company’s $23.53 billion revenue in 2015 came from the U.S. government alone.
In what was likely one of the most important U.S. military deals in decades, Northrop Grumman was awarded in October 2015 the highly coveted $80 billion contract to supply the U.S. military with 100 Long Range Strike Bombers. While a protest filed against the deal delayed work on the contract, the contract was officially confirmed at the beginning of last year. The B-2 Spirit stealth bomber is the predecessor of Northrop’s newly named B-21 Raider warplane.
4. Raytheon Company
> FY 2015 contract obligations: $13.11 billion
> FY 2014 contract obligations: $12.62 billion
> FY 2014-2015 change: 3.9%
> Headquarters: Waltham, Massachusetts
The nature of threats change over time, and defense contractors frequently diversify their businesses to predict the demands of changing warfare and new threats. More than most major defense contractors, Raytheon is one such example. While perhaps better known for its missiles manufacturing and defense products, the Massachusetts-based defense contractor also has invested heavily in its cybersecurity operations. Raytheon purchased cyber security company Websense in the middle of 2015 for $1.7 billion. The deal was an indication of the growing threat of cyberattacks, as well as Raytheon’s effort to diversify and move into commercial markets and away from dependence on defense contracts. More recently, Raytheon won a $1 billion contract with the U.S. government to help protect over 100 federal civilian agencies against cyber threats.
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