Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets | ||
Cash and cash equivalents | $2,642 | $2,259 |
Accounts receivable, net | 120 | 105 |
Contracts in process | 4,373 | 3,793 |
Inventories | 344 | 325 |
Current tax asset | 0 | 441 |
Deferred taxes | 273 | 395 |
Prepaid expenses and other current assets | 116 | 99 |
Total current assets | 7,868 | 7,417 |
Property, plant and equipment, net | 2,001 | 2,024 |
Deferred taxes | 436 | 735 |
Prepaid retiree benefits | 111 | 56 |
Goodwill | 11,922 | 11,662 |
Other assets, net | 1,269 | 1,240 |
Total assets | 23,607 | 23,134 |
Current liabilities | ||
Advance payments and billings in excess of costs incurred | 2,224 | 1,970 |
Accounts payable | 1,397 | 1,201 |
Accrued employee compensation | 868 | 913 |
Other accrued expenses | 1,034 | 1,065 |
Total current liabilities | 5,523 | 5,149 |
Accrued retiree benefits and other long-term liabilities | 5,793 | 6,488 |
Deferred taxes | 23 | 0 |
Long-term debt | 2,329 | 2,309 |
Raytheon Company stockholders' equity | ||
Common stock, par value $0.01 per share, 1,450 shares authorized, 378 and 400 shares outstanding in 2009 and 2008, respectively, after deducting 107 and 81 treasury shares in 2009 and 2008, respectively | 4 | 4 |
Additional paid-in capital | 10,991 | 10,873 |
Accumulated other comprehensive loss | (4,824) | (5,182) |
Treasury stock, at cost | (5,446) | (4,254) |
Retained earnings | 9,102 | 7,646 |
Total Raytheon Company stockholders' equity | 9,827 | 9,087 |
Noncontrolling interests in subsidiaries | 112 | 101 |
Total equity | 9,939 | 9,188 |
Total liabilities and equity | $23,607 | $23,134 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 1,450 | 1,450 |
Common stock, shares outstanding | 378 | 400 |
Common stock, treasury shares | 107 | 81 |
Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Net sales | |||
Products | $21,761 | $20,923 | $19,455 |
Services | 3,120 | 2,251 | 1,846 |
Total net sales | 24,881 | 23,174 | 21,301 |
Operating expenses | |||
Cost of sales-products | 17,071 | 16,570 | 15,431 |
Cost of sales-services | 2,676 | 1,919 | 1,580 |
Administrative and selling expenses | 1,527 | 1,548 | 1,434 |
Research and development expenses | 565 | 517 | 502 |
Total operating expenses | 21,839 | 20,554 | 18,947 |
Operating income | 3,042 | 2,620 | 2,354 |
Interest expense | 123 | 129 | 196 |
Interest income | (14) | (64) | (163) |
Other expense, net | 3 | 33 | 70 |
Non-operating expense, net | 112 | 98 | 103 |
Income from continuing operations before taxes | 2,930 | 2,522 | 2,251 |
Federal and foreign income taxes | 953 | 824 | 532 |
Income from continuing operations | 1,977 | 1,698 | 1,719 |
Operating (loss) income from discontinued operations, net of tax | (1) | (2) | (57) |
Net gain on sales of discontinued operations, net of tax | 0 | 0 | 942 |
(Loss) income from discontinued operations, net of tax | (1) | (2) | 885 |
Net income | 1,976 | 1,696 | 2,604 |
Less: Net income attributable to noncontrolling interests | 41 | 24 | 26 |
Net income attributable to Raytheon Company | $1,935 | $1,672 | $2,578 |
Basic earnings (loss) per share attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | 4.96 | 4.01 | 3.86 |
Income (loss) from discontinued operations | $0 | -0.01 | 2.02 |
Net income | 4.96 | 4.01 | 5.88 |
Diluted earnings (loss) per share attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | 4.89 | 3.93 | 3.78 |
Income (loss) from discontinued operations | $0 | -0.01 | 1.97 |
Net income | 4.89 | 3.92 | 5.75 |
2_Statement of Income Alternati
Statement of Income Alternative - Amounts Attributable to Raytheon Company Common Stockholders (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Amounts attributable to Raytheon Company common stockholders: | |||
Income from continuing operations | $1,936 | $1,674 | $1,693 |
Income (loss) from discontinued operations | (1) | (2) | 885 |
Net income | $1,935 | $1,672 | $2,578 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||||
In Millions | Common Stock
| Additional Paid-In Capital
| Accumulated Other Comprehensive (Loss) Income
| Treasury Stock
| Retained Earnings
| Total Raytheon Company Stockholders' Equity
| Noncontrolling Interests in Subsidiaries
| Total
|
Balance at Dec. 31, 2006 | $5 | $10,097 | ($2,514) | ($816) | $4,329 | $11,101 | $70 | $11,171 |
Net income | 2,578 | 2,578 | 26 | 2,604 | ||||
Other comprehensive income (loss) | ||||||||
Amortization of unfunded projected benefit obligation | 258 | 258 | 258 | |||||
Impact to revalue unfunded projected benefit obligation | 157 | 157 | 157 | |||||
Elimination of Raytheon Aircraft unfunded projected benefit obligation and cash flow hedges in connection with sale | 77 | 77 | 77 | |||||
Foreign exchange translation | 51 | 51 | 51 | |||||
Cash flow hedges | 15 | 15 | 15 | |||||
Comprehensive income (loss) | 3,136 | 26 | 3,162 | |||||
Dividends declared | (442) | (442) | (442) | |||||
Impact to adopt new accounting standard (Note 15) | (13) | (13) | (13) | |||||
Distributions and other activity related to noncontrolling interests | (9) | (9) | ||||||
Common stock plan activity | 447 | 447 | 447 | |||||
Treasury stock activity | (1) | (1,686) | (1,687) | (1,687) | ||||
Balance at Dec. 31, 2007 | 4 | 10,544 | (1,956) | (2,502) | 6,452 | 12,542 | 87 | 12,629 |
Net income | 1,672 | 1,672 | 24 | 1,696 | ||||
Other comprehensive income (loss) | ||||||||
Amortization of unfunded projected benefit obligation | 182 | 182 | 182 | |||||
Impact to revalue unfunded projected benefit obligation | (3,208) | (3,208) | (3,208) | |||||
Foreign exchange translation | (160) | (160) | (160) | |||||
Cash flow hedges | (40) | (40) | (40) | |||||
Comprehensive income (loss) | (1,554) | 24 | (1,530) | |||||
Dividends declared | (462) | (462) | (462) | |||||
Impact to adopt new accounting standard (Note 12) | (16) | (16) | (16) | |||||
Distributions and other activity related to noncontrolling interests | (10) | (10) | ||||||
Common stock plan activity | 329 | 329 | 329 | |||||
Treasury stock activity | (1,752) | (1,752) | (1,752) | |||||
Balance at Dec. 31, 2008 | 4 | 10,873 | (5,182) | (4,254) | 7,646 | 9,087 | 101 | 9,188 |
Net income | 1,935 | 1,935 | 41 | 1,976 | ||||
Other comprehensive income (loss) | ||||||||
Amortization of unfunded projected benefit obligation | 255 | 255 | 255 | |||||
Impact to revalue unfunded projected benefit obligation | (24) | (24) | (24) | |||||
Foreign exchange translation | 88 | 88 | 88 | |||||
Cash flow hedges | 40 | 40 | 40 | |||||
Unrealized gain on investments | (1) | (1) | (1) | |||||
Comprehensive income (loss) | 2,293 | 41 | 2,334 | |||||
Dividends declared | (479) | (479) | (479) | |||||
Distributions and other activity related to noncontrolling interests | (30) | (30) | ||||||
Common stock plan activity | 118 | 118 | 118 | |||||
Treasury stock activity | (1,192) | (1,192) | (1,192) | |||||
Balance at Dec. 31, 2009 | $4 | $10,991 | ($4,824) | ($5,446) | $9,102 | $9,827 | $112 | $9,939 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities | |||
Net income | $1,976 | $1,696 | $2,604 |
Loss (income) from discontinued operations, net of tax | 1 | 2 | (885) |
Income from continuing operations | 1,977 | 1,698 | 1,719 |
Adjustments to reconcile to net cash provided by operating activities from continuing operations, net of the effect of acquisitions and divestitures | |||
Depreciation and amortization | 402 | 390 | 372 |
Stock-based compensation | 127 | 122 | 109 |
Deferred income taxes | 269 | 574 | 182 |
Collection of financing receivables | 46 | 68 | 88 |
Tax benefit from stock-based awards | (13) | (53) | (55) |
Changes in assets and liabilities | |||
Accounts receivable, net | (14) | 11 | 28 |
Contracts in process and advance payments and billings in excess of costs incurred | (211) | 144 | (197) |
Inventories | (6) | 62 | (12) |
Prepaid expenses and other current assets | (36) | 60 | 8 |
Accounts payable | 198 | (24) | 232 |
Income taxes receivable/payable | 494 | (351) | (638) |
Accrued employee compensation | (56) | (9) | (34) |
Other accrued expenses | 78 | 3 | (110) |
Pension and other, net | (510) | (659) | (443) |
Net cash provided by operating activities from continuing operations | 2,745 | 2,036 | 1,249 |
Net cash used in operating activities from discontinued operations | (20) | (21) | (51) |
Net cash provided by operating activities | 2,725 | 2,015 | 1,198 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (280) | (304) | (313) |
Proceeds from sales of property, plant and equipment | 1 | 14 | 8 |
Additions to capitalized internal use software | (67) | (74) | (85) |
Change in other assets, net | (12) | (8) | (6) |
Proceeds from sales of discontinued operations, net | 0 | 9 | 3,143 |
Payments for purchases of acquired companies, net of cash acquired | (334) | (54) | (211) |
Net cash (used in) provided by investing activities from continuing operations | (692) | (417) | 2,536 |
Net cash used in investing activities from discontinued operations | 0 | 0 | (29) |
Net cash (used in) provided by investing activities | (692) | (417) | 2,507 |
Cash flows from financing activities | |||
Dividends paid | (473) | (460) | (440) |
Issuance of long-term debt, net of offering costs | 496 | 0 | 0 |
Repayments of long-term debt | (474) | 0 | (1,724) |
Repurchases of common stock | (1,200) | (1,700) | (1,642) |
Activity under common stock plans | 1 | 113 | 241 |
Tax benefit from stock-based awards | 13 | 53 | 55 |
Other | (13) | 0 | 0 |
Net cash used in financing activities | (1,650) | (1,994) | (3,510) |
Net increase (decrease) in cash and cash equivalents | 383 | (396) | 195 |
Cash and cash equivalents at beginning of year | 2,259 | 2,655 | 2,460 |
Cash and cash equivalents at end of year | $2,642 | $2,259 | $2,655 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Consolidation and ClassificationThe consolidated financial statements include the accounts of Raytheon Company, and all wholly-owned and majority-owned domestic and foreign subsidiaries. All intercompany transactions have been eliminated. For classification of certain current assets and liabilities, we use the duration of the related contract or program as our operating cycle, which is generally longer than one year. In addition, certain prior year amounts have been reclassified to conform with the current year presentation. As used in these notes, the terms we, us, our, Raytheon and the Company mean Raytheon Company and its subsidiaries, unless the context indicates another meaning. Use of EstimatesOur consolidated financial statements are based on the application of U.S. Generally Accepted Accounting Principles (GAAP), which require us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our consolidated financial statements. Revenue RecognitionWe account for our long-term contracts associated with the design, development, manufacture, or modification of complex aerospace or electronic equipment and related services, such as certain cost-plus service contracts, using the percentage-of-completion accounting method. Under this method, revenue is recognized based on the extent of progress towards completion of the long-term contract. We combine closely related contracts when all the applicable criteria under GAAP are met. Similarly, we may segment a project, which may consist of a single contract or a group of contracts, with varying rates of profitability, only if all the applicable criteria under GAAP are met. We generally use the cost-to-cost measure of progress for all of our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred-to-date to the total estimated costs at completion of the contract. Revenues, including estimated earned fees or profits, are recorded as costs are incurred. Incentive and award fees are generally awarded at the discretion of the customer or upon achievement of certain program milestones or cost targets. Incentive and award fees, as well as penalties related to contract performance, are considered in estimating profit rates. Estimates of award fees are based on actual awards and anticipated performance, which may include the performance of subcontractors or partners depending upon the individual contract requirements. Incentive provisions that increase or decrease earnings based solely on a single significant event are generally not recognized until the event occurs. Such incentives and penalties are recorded when ther |
Accounting Standards
Accounting Standards | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Accounting Standards | Note 2: Accounting Standards In 2009, we adopted required new accounting standards related to the following: The accounting and disclosure of noncontrolling interests as discussed in Note 7; The disclosure of derivative instruments and hedging activities as discussed in Note 8; The accounting and disclosure of certain nonfinancial assets and liabilities not recognized or disclosed at fair value on a recurring basis, as discussed in Note 9; The earnings per share (EPS) impact of instruments granted in share-based payment transactions as discussed in Note 12; The disclosure of postretirement benefit plan assets as discussed in Note 14; and The accounting for business combinations, which we have applied prospectively to business combinations with acquisition dates after January1, 2009. As discussed in Note 7: Other Assets, in January 2010, we adopted the required new accounting standards which amend the accounting and disclosure requirements for transfers of financial assets and consolidation of variable interest entities (VIEs). Among other things, these accounting standards eliminate the concept of a qualifying special-purpose entity (QSPE) and the related exception for applying the consolidation guidance. As a result, on January1, 2010 we consolidated our QSPE, General Aviation Receivables Corporation (GARC), which did not have a material impact on our consolidated financial statements and resulted in: The removal of our $67 million investment in GARC previously reported in other assets, net, and The addition of long and short-term notes receivable, net of $68 million, current and long-term notes payable of $2 million, and an increase in retained earnings of less than $1 million, net of tax. Further, the new accounting standard related to consolidation of VIEs requires an enterprise to perform a qualitative analysis when determining whether or not it must consolidate a VIE. It also requires an enterprise to continuously reassess whether it must consolidate a VIE. Additionally, it requires enhanced disclosures about an enterprises involvement with VIEs and any significant change in risk exposure due to that involvement, as well as how its involvement with VIEs impacts the enterprises financial statements. Finally, an enterprise is required to disclose significant judgments and assumptions used to determine whether or not to consolidate a VIE. With the exception of GARC discussed above, the adoption of this accounting standard did not change any of our previous conclusions regarding our VIEs and thus did not have an effect on our financial position, results of operations or liquidity. Other new pronouncements issued but not effective until after December31, 2009, are not expected to have a material impact on our financial position, results of operations or liquidity. |
Acquisitions
Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Acquisitions | Note 3: Acquisitions In October 2009, we acquired BBN Technologies Corp. and related entities (BBN) which enhances our advanced networking, speech and language technologies, information technologies, sensor systems and cybersecurity at Network Centric Systems (NCS) for $334 million in cash, net of $22 million of cash acquired, exclusive of retention and management incentive payments. We recorded $254 million of goodwill, primarily related to expected synergies from combining operations and the value of the workforce, and $70 million in intangible assets, primarily related to technology, contractual backlog and trade name with a weighted-average life of eight years, in connection with this acquisition. In 2008, we acquired Telemus Solutions, Inc. and SI Government Solutions at Intelligence Information Systems (IIS) for a total of $52 million in cash. We recorded $39 million of goodwill and $9 million in intangible assets in connection with these acquisitions. In 2007, we acquired Oakley Networks, Inc. at IIS and the robotics technologies and capabilities of Sarcos at Integrated Defense Systems (IDS) for a total of $211 million in cash. We recorded $165 million of goodwill and $38 million in intangible assets, primarily related to completed technology and customer relationships with a weighted-average life of six years, in connection with these acquisitions. Pro forma financial information has not been provided for these acquisitions as they are not material either individually or in the aggregate. We funded each of the above acquisitions using cash on hand. The operating results of these businesses have been included with our consolidated results as of the respective closing dates of the acquisitions. The purchase price of these businesses has been allocated to the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded as goodwill. We completed these acquisitions to enhance our technology portfolio. Tax deductible goodwill related to these acquisitions totaled $53 million. |
Discontinued Operations
Discontinued Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Discontinued Operations | Note 4: Discontinued Operations (Loss) income from discontinued operations, net of tax, consisted of the following results from Raytheon Aircraft Company (Raytheon Aircraft), Flight Options LLC (Flight Options) and Other Discontinued Operations: Pretax After-tax (In millions) 2009 2008 2007 2009 2008 2007 Gain on sale of Raytheon Aircraft $ $ $ 1,598 $ $ $ 986 Raytheon Aircraft discontinued operations 8 6 45 7 8 30 Loss on sale of Flight Options (73 ) (44 ) Flight Options discontinued operations (2 ) (112 ) (1 ) (88 ) Other Discontinued Operations (6 ) (1 ) 8 (7 ) (10 ) 1 Total $ $ 5 $ 1,466 $ (1 ) $ (2 ) $ 885 From time to time, we have disposed of certain businesses, including our Raytheon Aircraft, Flight Options, Raytheon Engineers Constructors and Aircraft Integration Systems businesses. As a result, we present Raytheon Aircraft, Flight Options and our other previously disposed businesses (Other Discontinued Operations) as discontinued operations for all periods. All residual activity relating to our disposed businesses appears in discontinued operations. In 2007, we sold Raytheon Aircraft for $3,318 million in gross proceeds, $3,117 million, net. We recorded a gain on sale of $986 million, net of $612 million of federal, foreign and state income taxes. In 2007, we sought and received a number of initial bids to purchase Flight Options. These initial bids were below our previous estimates of Flight Options fair value, which was based upon its projected discounted cash flows. As a result of receiving these external indications of market value and other conditions and events that occurred during the year, we recorded an impairment charge of $84 million pretax, $69 million after-tax in 2007, which included all of Flight Options remaining goodwill and a portion of its other intangible assets. Subsequently, we sold Flight Options and recorded a loss on sale of $73 million pretax, $44 million after-tax. In connection with the sale of Flight Options, we recorded a note receivable for $9 million, which was subsequently collected in 2008. We retained certain assets and liabilities of these disposed businesses. At December31, 2009 and 2008, we had $71 million in non-current assets primarily related to our subordinated retained interest in general aviation finance receivables previously sold by Raytheon Aircraft. At December31, 2009 and 2008, we had $57 million and $77 million, respectively, primarily in current liabilities related to various contract obligations, certain environmental liabilities, aircraft lease obligations, non-income tax obligations and certain product liabilities. We also have certain income tax obligations relating to these disposed businesses, which we include in our income tax disclosures. The Internal Revenue Service (IRS) concluded a federal excise tax audit and assessed us additional excise tax related to t |
Contracts in Process
Contracts in Process | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Contracts in Process | Note 5: Contracts in Process Contracts in process consisted of the following at December31, 2009: (In millions) CostType FixedPrice Total U.S. Government end-use contracts: Billed $ 570 $ 291 $ 861 Unbilled 960 8,431 9,391 Less: Progress payments 6,905 6,905 1,530 1,817 3,347 Other customers: Billed 6 513 519 Unbilled 13 1,082 1,095 Less: Progress payments 588 588 19 1,007 1,026 Total $ 1,549 $ 2,824 $ 4,373 Contracts in process consisted of the following at December31, 2008: (In millions) CostType FixedPrice Total U.S. Government end-use contracts: Billed $ 523 $ 239 $ 762 Unbilled 888 6,700 7,588 Less: Progress payments 5,407 5,407 1,411 1,532 2,943 Other customers: Billed 3 314 317 Unbilled 22 865 887 Less: Progress payments 354 354 25 825 850 Total $ 1,436 $ 2,357 $ 3,793 The U.S. Government has title to the assets related to unbilled amounts on contracts that provide progress payments. Unbilled amounts are recorded under the percentage-of-completion method and are recoverable from the customer upon shipment of the product, presentation of billings or completion of the contract. Included in unbilled at December31, 2009 was $209 million which is expected to be collected outside of one year. Billed and unbilled contracts in process include retentions arising from contractual provisions. At December31, 2009, retentions were $61 million. We anticipate collecting $45 million of these retentions in 2010 and the balance thereafter. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Property, Plant and Equipment, Net | Note 6: Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following at December31: (In millions) 2009 2008 Land $ 93 $ 85 Buildings and leasehold improvements 2,293 2,202 Machinery and equipment 3,187 3,137 Equipment leased to others 82 93 5,655 5,517 Less: Accumulated depreciation and amortization 3,654 3,493 Total $ 2,001 $ 2,024 Depreciation and amortization expense of property, plant and equipment, net was $299 million, $292 million and $288 million in 2009, 2008 and 2007, respectively. Accumulated depreciation on equipment leased to others was $34 million at December31, 2009 and 2008. |
Other Assets, Net
Other Assets, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Assets, Net | Note 7: Other Assets, Net Other assets, net consisted of the following at December31: (In millions) 2009 2008 Long-term receivables Due from customers in installments to 2015 $ 23 $ 59 Other 23 26 Computer software, net 392 412 Investments 67 78 Other noncurrent assets, net 764 665 Total $ 1,269 $ 1,240 We previously sold undivided interests in general aviation finance receivables, while retaining subordinated interests in and servicing rights to the receivables. We irrevocably, and without recourse, transferred the receivables to GARC, formed in 2003, which in turn, issued beneficial interests in these receivables to a commercial paper conduit. The conduit obtained the funds to purchase the interest in the receivables, other than the retained interest, by selling commercial paper to third-party investors. At December31, 2009 and 2008, the outstanding balance of securitized accounts receivable held by the third party conduit totaled $73 million and $99 million, respectively, of which our subordinated retained interest, which is included in other noncurrent assets, net in the table above, was $67 million and $66 million, respectively, and the fair value of the servicing liability was less than $1 million at December31, 2008. There was no servicing liability at December31, 2009. The underlying aircraft serve as collateral for these accounts receivable. We estimated the fair value of the subordinated retained interest at December31, 2009 and 2008 based on the present value of future expected cash flows using certain key assumptions, including collection period and a discount rate of 5.3% and 4.4%, respectively. At December31, 2009, a 10% and 20% adverse change in the collection period and discount rate would not have a material effect on our financial position or results of operations. In January 2010, we adopted the required new accounting standards which amend the accounting and disclosure requirements for transfers of financial assets and consolidation of VIEs. Among other things, these accounting standards eliminate the concept of a QSPE and the related exception for applying the consolidation guidance. As a result, on January1, 2010 we consolidated GARC, which did not have a material impact on our consolidated financial statements and resulted in: The removal of our $67 million investment in GARC previously reported in other assets, net, and The addition of long and short-term notes receivable, net of $68 million, current and long-term notes payable of $2 million, and an increase in retained earnings of less than $1 million, net of tax. Computer software, net consisted of the following at December31: (In millions) 2009 2008 Computer software $ 970 $ 908 Accumulated amortization (578 ) (496 ) Total $ 392 $ 412 Computer software amortization expense was $86 million in 2009, $79 million in 2008 and $75 million in 2007. Other intangible assets, net, included in the table above in other noncurrent assets, net, consisted of the |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivative Financial Instruments | Note 8: Derivative Financial Instruments In 2009, we adopted the required new accounting standard regarding disclosure of derivative instruments and hedging activities. Our primary market exposures are to interest rates and foreign exchange rates. We use certain derivative financial instruments to help manage these exposures. We execute these instruments with financial institutions we judge to be credit-worthy and the majority of the foreign currencies are denominated in currencies of major industrial countries. We do not hold or issue derivative financial instruments for trading or speculative purposes. Cash flow hedgesWe enter into foreign currency forward contracts with commercial banks to fix the foreign currency exchange rates on specific commitments and payments to vendors, and customer receipts. Our foreign currency hedges are transaction driven and directly relate to a particular asset, liability or transaction for which commitments are in place. For foreign currency forward contracts designated and qualified for cash flow hedge accounting, we record the effective portion of the gain or loss on the derivative in accumulated other comprehensive loss, net of tax, and reclassify it into earnings in the same period or periods during which the hedged revenue or cost of sales transaction affects earnings. We expect approximately $17 million of after-tax net unrealized gains, included in accumulated other comprehensive loss at December31, 2009, to be reclassified into earnings at then-current values over the next twelve months as the underlying hedged transactions occur. Realized gains and losses resulting from these cash flow hedges offset the foreign exchange gains and losses on the underlying transactions being hedged. Gains and losses on derivatives not designated for hedge accounting or representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized currently in earnings in cost of sales. The fair value amounts in our consolidated balance sheet at, related to foreign currency forward contracts consisted of the following at December31, 2009: Asset Derivatives LiabilityDerivatives (In millions) BalanceSheet Location Fair Value BalanceSheet Location Fair Value Derivatives designated as hedging instruments Otherassets,net $ 56 Otheraccruedexpenses $ 23 Derivatives not designated as hedging instruments Other assets, net 13 Other accrued expenses 10 Total $ 69 $ 33 The pretax derivative gains and losses in our consolidated statement of operations for the twelve months ended December31, 2009, related to our foreign currency forward contracts were as follows: Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Other Comprehensive Income on EffectivePortionof Derivative Gain(Loss)onEffective Portion of Derivative Reclassified from Accumulated Other Comprehensive Loss IneffectivePortionofGain(Loss) on Derivative and Amount Excluded from Effectiveness Testing Recognized in Income (In millions) Amount Location |
Fair Value Measurement
Fair Value Measurement | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair Value Measurement | Note 9: Fair Value Measurement The estimated fair value of certain financial instruments, including cash and cash equivalents and short-term debt approximates the carrying value due to their short maturities and varying interest rates. The estimated fair value of notes receivable approximates the carrying value based principally on the underlying interest rates and terms, maturities, collateral and credit status of the receivables. The carrying value of long-term debt of $2.3 billion at December31, 2009 and December31, 2008 was recorded at amortized cost. The estimated fair value of long-term debt of approximately $2.6 billion at December31, 2009 and $2.5 billion at December31, 2008 was based on quoted market prices. In 2009, we adopted the required new accounting standard for fair value measurements of all nonfinancial assets and nonfinancial liabilities not recognized or disclosed at fair value in the financial statements on a recurring basis. The accounting standard for those assets and liabilities did not have a material impact on our financial position, results of operations or liquidity. We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of December31, 2009. The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required as well as the assets and liabilities that we value using those levels of inputs. Level1: Quoted prices in active markets for identical assets or liabilities. Our Level 1 assets are investments in marketable securities held in rabbi trusts that we use to pay benefits under certain of our non-qualified deferred compensation plans which we include in other assets, net. Our Level 1 liabilities include our obligations to pay certain non-qualified deferred compensation plan benefits which we include in accrued retiree benefits and other long-term liabilities. Under these non-qualified deferred compensation plans, participants designate investment options (primarily mutual funds) to serve as the basis for measurement of the notional value of their accounts. We also include foreign exchange forward contracts that we trade in an active exchange market in our Level 1 assets and liabilities. Level2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets were interest rate swaps whose fair |
Notes Payable and Long-term Deb
Notes Payable and Long-term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes Payable and Long-term Debt | Note 10: Notes Payable and Long-term Debt Notes payable and long-term debt consisted of the following at December31: (In millions, except percentages) 2009 2008 Notes due 2011, 4.85%, redeemable at any time $ $ 464 Notes due 2012, 5.50%, redeemable at any time 332 331 Notes due 2013, 5.375%, redeemable at any time 364 378 Debentures due 2018, 6.40%, redeemable at any time 338 338 Debentures due 2018, 6.75%, redeemable at any time 250 250 Notes due 2020, 4.40%, redeemable at any time 496 Debentures due 2027, 7.20%, redeemable at any time 365 364 Debentures due 2028, 7.00%, redeemable at any time 184 184 Total debt issued and outstanding $ 2,329 $ 2,309 The notes and debentures are redeemable by the Company at any time at redemption prices based on U.S. Treasury rates. In the fourth quarter of 2009, we received proceeds of $496 million for the issuance of $500 million fixed rate long-term debt and exercised our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $474 million of our long-term debt maturing in 2011 at a loss of $22 million pretax, which is included in other expense, net. In 2007, we exercised our call rights and repurchased long-term debt with a par value of $1,039 million at a loss of $59 million pretax, which is included in other expense, net. We periodically enter into various interest rate swaps that correspond to a portion of our fixed-rate debt in order to effectively hedge interest rate risk. The $575 million notional value of the interest rate swaps that remained outstanding at December31, 2008 effectively converted $250 million of the 4.85% Notes due 2011, which we repurchased in the fourth quarter of 2009, and $325 million of the 5.375% Notes due 2013 that were outstanding at December31, 2008 to variable-rate debt based on six-month LIBOR. We terminated these interest rate swap agreements in the first quarter of 2009, and collected cash of $37 million related to the early termination. In 2009, we recorded $16 million of income as a reduction to interest expense related to the amortization of the gain on the termination of our interest rate swaps, including $6 million of accelerated amortization related to the 4.85% Notes due 2011 due to their repurchase in the fourth quarter of 2009. We will include the amortization of the remaining $21 million gain as a reduction to interest expense over the remaining life of the related debt. There were no interest rate swaps outstanding at December31, 2009. The adjustments to the principal amounts of long-term debt were reflected as follows at December31: (In millions) 2009 2008 Principal $ 2,336 $ 2,289 Interest rate swaps 21 48 Unamortized issue discounts (14 ) (13 ) Unamortized interest rate hedging costs (14 ) (15 ) Total $ 2,329 $ 2,309 The aggregate amounts of principal payments due on long-term debt for the next five years are: (In millions) 2010 $ 2011 2012 |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies | Note 11: Commitments and Contingencies At December31, 2009, we had commitments under long-term leases requiring annual rentals on a net lease basis as follows: (In millions) 2010 $ 267 2011 187 2012 145 2013 99 2014 64 Thereafter 284 Rent expense was $290 million, $285 million and $276 million in 2009, 2008 and 2007, respectively. In the normal course of business, we lease equipment, office buildings and other facilities under leases that include standard escalation clauses for adjusting rent payments to reflect changes in price indices, as well as renewal options. At December31, 2009, we had commitments under agreements to outsource a portion of our information technology function, including a recently signed agreement which becomes effective in 2010, which has no minimum annual payments. Insurance is purchased from third parties to cover aggregate liability exposure up to $1.5 billion. We are involved in various stages of investigation and cleanup related to remediation of various environmental sites. Our estimate of total environmental remediation costs was $208 million and $157 million at December31, 2009 and 2008, respectively. Discounted at a weighted-average risk-free rate of 5.7%, we estimated the liability at December31, 2009 and 2008 to be $139 million and $105 million, respectively, before U.S. Government recovery and had this amount accrued. A portion of these costs are eligible for future recovery through the pricing of our products and services to the U.S. Government. We consider such recovery probable based on government contracting regulations and our long history of receiving reimbursement for such costs. Accordingly, we recorded $97 million and $69 million in contracts in process through December31, 2009 and 2008, respectively, for the estimated future recovery of these costs from the U.S. Government. We also lease certain government-owned properties and are generally not liable for remediation of preexisting environmental contamination at these sites; as a result, we generally do not reflect the provision for these costs in our consolidated financial statements. Due to the complexity of environmental laws and regulations, the varying costs and effectiveness of alternative cleanup methods and technologies, the uncertainty of insurance coverage and the unresolved extent of our responsibility, it is difficult to determine the ultimate outcome of these matters; however, we do not expect any additional liability to have a material adverse effect on our financial position, results of operations or liquidity. Environmental remediation costs expected to be incurred are: (In millions) 2010 $ 39 2011 27 2012 19 2013 14 2014 12 Thereafter 97 We issue guarantees and banks and surety companies issue, on our behalf, letters of credit and surety bonds to meet various bid, performance, warranty, retention and advance payment obligations of us or our affiliates. Approximately $227 million, $898 million and $203 million of these guarantees, letters of credit and surety bonds, for which |
Stockholders' Equity
Stockholders' Equity | |
1/1/2009 - 12/31/2009
USD / shares | |
Stockholders' Equity | Note 12: Stockholders Equity The changes in shares of our common stock outstanding were as follows: (In millions) Balance at December31, 2006 445.9 Common stock plan activity 9.8 Treasury stock activity (29.5 ) Balance at December31, 2007 426.2 Common stock plan activity 5.5 Treasury stock activity (31.6 ) Balance at December31, 2008 400.1 Common stock plan activity 3.7 Treasury stock activity (25.9 ) Balance at December31, 2009 377.9 We repurchased the following shares of our common stock under our stock repurchase programs: (In millions) 2009 2008 2007 Amount of stock repurchased $ 1,200 $ 1,700 $ 1,642 Shares of stock repurchased 25.8 30.7 28.7 In October 2008, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding common stock. As of December31, 2009, approximately $1,130 million of common stock had been repurchased and approximately $870 million remained under this program. All previous programs have been completed as of December31, 2009. Treasury stock is accounted for under the cost method. When shares are reissued or retired from treasury stock they are accounted for at average price. Upon retirement the excess over par value is charged against additional paid-in capital. The remaining treasury stock activity primarily relates to stock based compensation awards and the related shares withheld to settle employee tax obligations. Also, included in treasury shares at December31, 2009 were 185,289 shares with a cost basis of $6.9 million which are held in a rabbi trust related to certain of the Companys non-qualified deferred compensation plans. Our Board of Directors declared cash dividends of $1.24, $1.12 and $1.02 per share in 2009, 2008 and 2007, respectively. Earnings Per Share (EPS) We compute Basic EPS attributable to Raytheon Company common stockholders by dividing income from continuing operations attributable to Raytheon Company common stockholders, income from discontinued operations attributable to Raytheon Company common stockholders and net income attributable to Raytheon Company, by the weighted-average common shares outstanding, including participating securities outstanding as discussed below, during the period. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in our earnings. We compute basic and diluted EPS using income from continuing operations attributable to Raytheon Company common stockholders, income from discontinued operations attributable to Raytheon Company common stockholders, net income attributable to Raytheon Company, and the actual weighted-average shares and participating securities outstanding rather than the numbers presented within our consolidated statements of operations, which are rounded to the nearest million. As a result, it may not be possible to recalculate EPS as present |
Stock-based Compensation Plans
Stock-based Compensation Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Stock-based Compensation Plans | Note 13: Stock-based Compensation Plans We recorded $127 million, $122 million and $109 million of expense related to stock-based compensation in 2009, 2008 and 2007, respectively. We recorded $42 million, $43 million and $38 million as a tax benefit related to stock-based compensation in 2009, 2008 and 2007, respectively. At December31, 2009, there was $173 million of compensation expense related to nonvested awards not yet recognized which is expected to be recognized over a weighted-average period of 1.6 years. Shares issued as a result of stock awards, stock option exercise or conversion of restricted stock unit awards will be funded through treasury stock or the issuance of new shares. Of the 34.3million shares authorized under the 2001 Stock Plan and the 1997 Nonemployee Directors Restricted Stock Plan, there were 6.0million shares available for awards under such plans as of December31, 2009. Restricted Stock The 2001 Stock Plan provides for the award of restricted stock, restricted stock units and stock appreciation rights. The 1997 Nonemployee Directors Restricted Stock Plan provides for the award of restricted stock to nonemployee directors. Awards of restricted stock, restricted stock units and stock appreciation rights generally are made by the Management Development and Compensation Committee of our Board of Directors (MDCC) and are compensatory in nature. These awards vest over a specified period of time as determined by the MDCC, generally four years for employee awards and one year for nonemployee directors. Restricted stock awards entitle the recipient to full dividend and voting rights beginning on the date of grant. Non-vested shares are restricted as to disposition and subject to forfeiture under certain circumstances. At the date of award each share of restricted stock is credited to common stock at par value. The fair value of restricted stock, calculated under the intrinsic value method at the date of award, is charged to income as compensation expense over the vesting period with a corresponding credit to additional paid-in capital. No further grants are allowed under the 2001 Stock Plan or the 1997 Nonemployee Directors Restricted Stock Plan after January30, 2011 and November25, 2011, respectively. Restricted stock activity was as follows: (Share amounts in thousands) Shares Weighted-Average GrantDate FairValue Outstanding at December31, 2006 5,128 $ 41.31 Granted 1,884 53.66 Vested (1,222 ) 37.55 Forfeited (539 ) 42.84 Outstanding at December31, 2007 5,251 46.45 Granted 1,725 63.00 Vested (1,703 ) 41.78 Forfeited (281 ) 49.29 Outstanding at December31, 2008 4,992 53.60 Granted 2,514 44.83 Vested (1,666 ) 46.57 Forfeited (247 ) 53.10 Outstanding at December31, 2009 5,593 $ 51.78 Long-Term Performance Plan In 2004, we established the LTPP, which provides for restricted stock unit awards granted from the 2001 Stock Plan to our senior leadership. These awards vest at the end of a three-year performance cycle based u |
Pension and Other Employee Bene
Pension and Other Employee Benefits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Pension and Other Employee Benefits | Note 14: Pension and Other Employee Benefits We have pension plans covering the majority of our employees, including certain employees in foreign countries (Pension Benefits). Our primary pension obligations relate to our domestic IRS qualified pension plans. For our domestic qualified pension plans the projected benefit obligation (PBO), accumulated benefit obligation (ABO) and asset values for these plans were $16,260 million, $14,599 million, and $12,294 million, respectively, as of December31, 2009 and $15,419 million, $13,784 million, and $10,465 million, respectively, as of December31, 2008. The PBO represents the present value of pension benefits earned through the end of the year, with allowance for future salary increases. The ABO is similar to the PBO, but does not allow for future salary increases. In addition to providing pension benefits, we provide certain health care and life insurance benefits to retired employees through other postretirement benefit plans (Other Benefits). Substantially all of our U.S. employees may become eligible for the Other Benefits. We are required to recognize the funded status of a postretirement benefit plan (defined benefit pension and other benefits) as an asset or liability on our consolidated balance sheets. Funded status represents the difference between the projected benefit liability obligation of the plan and the market value of the plans assets. Previously unrecognized deferred amounts such as demographic or asset gains or losses and the impact of historical plan changes are included in accumulated other comprehensive (loss) income. Changes in these amounts in future years are adjusted as they occur through accumulated other comprehensive (loss) income. As of December31, 2009, the fair value of our domestic Pension Benefits plan (Plan) assets was $12,294 million, consisting of investments in equity securities, fixed-income securities, cash and cash equivalents and other assets such as investments in private equity funds, public real estate securities, private real estate funds and hedge funds. Substantially all our Plan assets are held in a master trust, which was established for the investment of assets of our Company sponsored retirement plans. The assets of the master trust are overseen by the Companys Investment Committee comprised of members of senior management drawn from appropriate diversified levels of the executive management team. The Investment Committee is responsible for setting the policy that provides the framework for management of the Plan assets. In accordance with its responsibilities and charter, the Investment Committee meets on a regular basis to review the performance of the Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification and total investment return over the long term while maintaining sufficient liquidity to pay the benefits of the Plan. Asset allocation ranges are set to produce the highest return on investment taking into account investment risks that |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes | Note 15: Income Taxes The provision for federal and foreign income taxes consisted of the following: (In millions) 2009 2008 2007 Current income tax expense Federal $ 669 $ 206 $ 317 Foreign 15 44 32 Deferred income tax expense Federal 257 568 178 Foreign 12 6 5 Total $ 953 $ 824 $ 532 The expense for income taxes differs from the U.S. statutory rate due to the following: 2009 2008 2007 Statutory tax rate 35.0 % 35.0 % 35.0 % Research and development tax credit -0.9 % -1.0 % -0.8 % Tax settlements and refund claims -0.9 % -0.5 % -9.9 % Domestic manufacturing deduction benefit -0.9 % -0.5 % -0.9 % ESOP dividend deduction benefit -0.4 % -0.5 % -0.5 % Non-deductible costs 0.3 % 0.4 % 0.5 % Other, net 0.3 % -0.2 % 0.2 % Effective tax rate 32.5 % 32.7 % 23.6 % We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Domestic income from continuing operations before taxes was $2,806 million, $2,360 million and $2,141 million in 2009, 2008 and 2007, respectively, and foreign income from continuing operations before taxes was $124 million, $162 million and $110 million in 2009, 2008 and 2007, respectively. No provision has been made for deferred taxes on undistributed earnings of non-U.S. subsidiaries as these earnings have been indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. Total federal and foreign tax payments, net of refunds and credits, were $208 million, $448 million and $734 million in 2009, 2008 and 2007, respectively. During 2007, we settled our federal research credit claim for the years 19841990 and certain domestic and Foreign Sales Corporation (FSC) issues for the years 19891997. IRS examinations of our tax returns have been completed through 2005 and the IRS has opened an examination of our tax returns for 20062008. We have protested to the IRS Appeals Division certain proposed adjustments primarily involving benefits under the FSC and Extraterritorial Income (ETI) exclusion regimes for 19982005. Additionally, we are under audit by a number of state tax authorities. State tax liabilities are routinely adjusted to account for any changes in federal taxable income. We believe we adequately provide for all tax positions, however, amounts asserted by taxing authorities could be greater or less than amounts accrued and reflected in our consolidated balance sheets. Accordingly, we could record adjustments to the amounts for federal, foreign and state-related liabilities in the future as we revise estimates or we settle or otherwise resolve the underlying matters. In 2007, we adopted the required new accounting standard which changed the requirements when accounting for various tax positions, and recognized a $13 million increase in our liability for unrecognized tax benefits, which we accounted for as a reduction to |
Business Segment Reporting
Business Segment Reporting | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Business Segment Reporting | Note 16: Business Segment Reporting Our reportable segments, organized based on capabilities and technologies, are: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems and Technical Services. Integrated Defense Systems (IDS) is a leader in global capabilities integration, providing affordable, integrated solutions to a broad international and domestic customer base. IDS leverages its core domain knowledge and capabilities in sensors, command, control and communication (C3), effects and mission support, to provide integrated naval, air and missile defense and civil security response solutions. Intelligence and Information Systems (IIS) is a leading provider of intelligence and information solutions specializing in ground processing, unmanned ground systems, cybersecurity solutions, homeland/civil security and other markets to resolve the most complex problems for its customers worldwide. Missile Systems (MS) is a premier developer and producer of missile systems for the armed forces of the U.S. and other allied nations. Leveraging its key capabilities in advanced airframes, guidance and navigation systems, high-resolution sensors, targeting and netted systems, MS develops and supports a broad range of cutting edge weapon systems, including missiles, smart munitions, close in weapons systems, projectiles, kinetic kill vehicles and directed energy effectors. Network Centric Systems (NCS) is a leading provider of net-centric mission solutions for government and civil customers. NCS leverages its capabilities in networking, command and control, and communications to develop and produce solutions for customers including the U.S. Army, Air Force, Navy and Marine Corps and other government customers, as well as numerous international customers. Space and Airborne Systems (SAS) is a leader in the design and development of integrated systems and solutions for advanced missions, including traditional and non-traditional intelligence, surveillance and reconnaissance (ISR), precision engagement, unmanned aerial operations and space. Technical Services (TS) provides a full spectrum of technical, scientific and professional services to defense, federal, international and commercial customers worldwide. It specializes in training, logistics, engineering services, product support, and operational support services. TS provides solutions for the mission support, homeland security, space, civil aviation, counterproliferation and counterterrorism markets. Segment total net sales and operating income generally include intersegment sales and profit recorded at cost plus a specified fee, which may differ from what the selling entity would be able to obtain on sales to external customers. Corporate and Eliminations includes corporate expenses and intersegment sales and profit eliminations. Corporate expenses represent unallocated costs and certain other corporate costs not considered part of managements evaluation of reportable segment operating performance, including the net costs associated with our residual commuter aircraft portfolio. Effective January1, |
Quarterly Operating Results
Quarterly Operating Results (Unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Quarterly Operating Results (Unaudited) | Note 17: Quarterly Operating Results (Unaudited) (In millions, except per share amounts, stock prices and workdays) 2009(1) First Second Third Fourth Total net sales $ 5,884 $ 6,125 $ 6,205 $ 6,667 Gross margin 1,187 1,286 1,311 1,350 Income from continuing operations 457 504 499 517 Net income attributable to Raytheon Company 452 489 490 504 Earnings per share from continuing operations attributable to Raytheon Company common stockholders(2) Basic $ 1.12 $ 1.25 $ 1.27 $ 1.32 Diluted 1.11 1.24 1.25 1.30 Earnings per share attributable to Raytheon Company common stockholders(2) Basic 1.13 1.24 1.26 1.32 Diluted 1.12 1.23 1.25 1.30 Cash dividends per share Declared 0.31 0.31 0.31 0.31 Paid 0.28 0.31 0.31 0.31 Common stock prices High $ 53.00 $ 48.34 $ 48.64 $ 53.84 Low 33.20 38.00 41.90 45.02 Workdays(3) 61 64 63 61 2008(1) First Second Third Fourth Total net sales $ 5,354 $ 5,870 $ 5,864 $ 6,086 Gross margin 1,096 1,206 1,200 1,183 Income from continuing operations 401 432 437 428 Net income attributable to Raytheon Company 398 426 427 421 Earnings per share from continuing operations attributable to Raytheon Company common stockholders(2) Basic $ 0.94 $ 1.02 $ 1.03 $ 1.03 Diluted 0.92 0.99 1.01 1.01 Earnings per share attributable to Raytheon Company common stockholders(2) Basic 0.94 1.02 1.03 1.03 Diluted 0.92 0.99 1.00 1.01 Cash dividends per share Declared 0.28 0.28 0.28 0.28 Paid 0.255 0.28 0.28 0.28 Common stock prices High $ 67.11 $ 66.63 $ 61.71 $ 54.00 Low 59.82 56.00 55.46 43.40 Workdays(3) 63 64 63 60 (1) All periods presented have been prepared to reflect the adoption in 2009 of the required new accounting standards related to the accounting and disclosure of noncontrolling interests and the earnings per share (EPS) impact of instruments granted in share-based payment transactions. (2) Earnings per share is computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for each year. (3) Number of workdays per our fiscal calendar, which excludes holidays and weekends. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 16, 2010
| Jun. 28, 2009
| |
Trading Symbol | RTN | ||
Entity Registrant Name | RAYTHEON CO/ | ||
Entity Central Index Key | 0001047122 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 379,083,000 | ||
Entity Public Float | $16,700,000,000 |