1
EXHIBIT 99.5
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
WITH REPORT OF INDEPENDENT ACCOUNTANTS
for the years ended December 31, 1997 and 1996
Report of Independent Accountants
Employee Savings Plan Administrative Committee
E-Systems, Inc. Employee Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the E-Systems, Inc. Employee Savings Plan (the "Plan") as of December 31,
1997 and 1996, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1997 and 1996, and the changes in the net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1997, and reportable
transactions for the year then ended are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures applied in our audit of
the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
Dallas, Texas
June 8, 1998
2
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997 and 1996
ASSETS 1997 1996
Investments--at fair value:
Mutual funds $613,860,560 $471,394,300
Collective investment fund 61,180,556 56,821,945
Raytheon common stock fund 35,787,508 33,545,329
Participant loans 22,992,597 22,858,010
------------ ------------
Total investments at fair value 733,821,221 584,619,584
------------ ------------
Receivables:
Contributions due from employees 2,135,509 1,293,228
Contribution due from employer 9,520,806 8,599,589
------------ ------------
11,656,315 9,892,817
------------ ------------
Net assets available for benefits $745,477,536 $594,512,401
============ ============
The accompanying notes are an integral part of the financial statements.
3
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
for the years ended December 31, 1997 and 1996
1997 1996
Additions:
Dividend income $ 54,412,625 $ 27,722,560
Interest income 14,947,020 13,563,141
Employee contributions 44,956,931 38,892,568
Employer contributions 17,568,486 15,587,178
Transfer to/from other qualified plans 21,789,278 8,134,901
Other receipts 537,578 186,148
------------ ------------
Total additions 154,211,918 104,086,496
------------ ------------
Deductions:
Administrative and other expenses 219,897 197,893
Benefits paid to participants 43,412,766 44,538,255
------------ ------------
Total deductions 43,632,663 44,736,148
------------ ------------
Net appreciation of investments 40,385,880 34,607,559
------------ ------------
Net increase 150,965,135 93,957,907
Net assets available for benefits
at beginning of year 594,512,401 500,554,494
------------ ------------
Net assets available for benefits
at end of year $745,477,536 $594,512,401
============ ============
The accompanying notes are an integral part of the financial statements.
4
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. General Description:
The E-Systems, Inc. Employee Savings Plan (the "Plan"), is a defined
contribution plan sponsored by Raytheon E-Systems, Inc. ("E-Systems" or the
"Company"), a wholly-owned subsidiary of Raytheon Company, which became
effective January 1, 1995. Employees are immediately eligible to participate in
the Plan. The Plan provides an individual account for each participant. Amounts
disbursed to participants or transfers between funds are based solely upon
amounts contributed to each participant's account adjusted to reflect any
withdrawals and distributions, investment earnings attributable to such fund
balances and appreciation or depreciation of the market value of the fund. The
Plan is subject to the provisions of the Employee Retirement Income Security Act
of 1974 ("ERISA"). The following description of the Plan is provided for general
information purposes only. A detailed description of the Plan is contained in
the Plan document.
Employer Contributions
The Company matches 50% of the first 3% of employee contributions to
the Plan for the Plan year through the 401(k) Tax-Advantaged Capital
Accumulation Plan ("T-CAP") Company Matching account.
The Plan also provides for Regular Discretionary Contributions
("E-CAP") up to 1-1/2% of the lesser of (1) base rate of pay, or (2) W-2 pay
plus elected reductions. To be eligible for this contribution, the participant
must be an active employee on December 31.
Certain Company subsidiaries may make Optional Employer Contributions.
If employed by one of these subsidiaries on December 31, the participant
receives an allocation equal to a certain percentage, determined by the Board of
Directors, of the lesser of (1) base rate of pay, or (2) W-2 pay plus elected
reductions.
Employee Contributions
Participants in the Plan may contribute up to 18% of their annual base
rate of pay on a pre-tax basis. Base rate of pay excludes such items as shift
differential, quarterly wage adjustments, commissions, unused sick pay,
severance pay, allowances, awards, lump sum payments, and per diem payments. The
Internal Revenue Service ("IRS") imposed limitation on employee contributions
was $9,500 for 1997 and 1996. Internal Revenue Code ("IRC") Section 415
establishes limitations on employee and employer contributions. Any
contributions exceeding these limitations are refunded to the participants in
accordance with the Plan document.
Vesting Rights
Participants are immediately 100% vested in their account balances
derived from Company contributions, employee contributions and any amounts
rolled over to the Plan from another eligible plan.
Plan Trustee
The Plan's trustee is Vanguard Fiduciary Trust Company. The trustee
holds the funds for the Plan and is responsible for managing the Plan's
investment assets, executing all investment transactions and recording approved
transactions.
5
Participant Investment Programs
Employee contributions are invested by the trustee as directed by
participants and can be invested in any combination of the funds listed below.
Company matching contributions, and other discretionary contributions, if any,
may be invested in a different combination of funds than the pre-tax
contributions. If a separate election for the Company contributions is not made
by the participant, these contributions are then invested in the same fund or
funds selected by the participant for their pre-tax contributions.
Participants had the option of investing their contributions in any of
the following funds:
The Vanguard Retirement Savings Trust: investments seek the highest
level of current income consistent with safety and stability of principal by
investing primarily in contracts issued by life insurance companies, investment
contracts issued by domestic commercial banks or United States branches of
foreign banks, and other similar types of fixed-principal investments. The Trust
may also hold no more than 15% of its assets in short-term obligations, money
market funds, or federally insured deposits.
The Vanguard/Morgan Growth Fund: investments consist primarily of
common stocks of corporations with either established growth patterns, emerging
growth potential, or cyclical growth patterns.
The Vanguard/Windsor Fund: investments consist of a portfolio of
common stocks, the objective of which is primarily long-term growth and
secondly, current income through dividends.
The Vanguard Money Market Reserves Prime Portfolio: investments
consist of high-quality money market instruments that mature in one year or
less.
The Vanguard Short-Term Corporate Bond Portfolio: investments consist
of investment grade bonds with maturities from less than one to four years,
including United States Treasury and agency obligations, the objective of which
is primarily to conserve principal and secondly, to maximize current income.
The Vanguard Index Trust 500 Portfolio: investments consist of a
portfolio of stocks designed to match the performance of Standard & Poor's 500
Corporate Stock Price Index.
The Vanguard/Wellesley Income Fund: investments consist of about 60%
in fixed-income securities and 40% in common stocks. The Fund objective is
primarily current income through dividends, and secondly, moderate capital
growth.
The Vanguard International Value Portfolio: investments seek maximum
long-term total return consistent with reasonable risk by investing in a
diversified group of large and medium-sized companies based outside of the
United States. Total return includes both income and capital appreciation.
6
The Raytheon Common Stock Fund: investments consist of Raytheon Class
B common stock. However, contributions may be invested in the Vanguard Money
Market Reserves Prime Portfolio until a stock purchase is made.
Loan Provisions
Participants may obtain loans from their account balances in any of
the Vanguard Funds and/or the Raytheon Common Stock Fund. Loans bear interest at
the prime rate, as published in the Wall Street Journal on the last day of each
calendar quarter, plus one percentage point. Such interest rate is effective for
all loans during the subsequent quarter. All loans become part of the Loan Fund.
Interest charged on loans is credited to the participant's account and is
included in interest income on the statement of changes in net assets available
for benefits.
The maximum a participant can borrow is 50% of his/her account balance
up to a limit of $50,000. While a participant may borrow up to 50% of their
E-Systems, Inc. Employee Savings Plan account balance, loans cannot be funded
from the E-CAP, Company Matching or Optional Employer accounts. However, if the
participant had a loan outstanding within the previous 12 months, IRS rules
require that the $50,000 limit be reduced by their highest outstanding loan
balance during the 12 months before the current loan request.
Transfer Provisions
Participants are permitted to make unlimited transfers among
investment options, with the exception of transfers out of the Vanguard
Investment Contract Trust ("VICT"). The funds transferred out of the VICT may be
transferred into one of the equity funds at any time, but must remain in these
equity funds for a period of 90 days. After the 90-day period, the funds may be
transferred out of the equity funds and into either the Vanguard Money Market
Reserves Prime Portfolio or the Vanguard Short-Term Corporate Bond Portfolio.
Participants may only transfer funds from the VICT into fixed income
options once a year, during January. Fixed income options include the Vanguard
Money Market Reserves Prime Portfolio and the Vanguard Short-Term Corporate Bond
Portfolio. Participants may transfer up to $500 or 25% of their balance in the
VICT, whichever is higher, into the fixed income options.
Income Allocations
Each investment fund's gain or losses are determined and allocated by
its fund manager every business day.
Withdrawals
All distributions except distributions of the Raytheon Common Stock
Fund are made in cash. Participants are eligible for distributions upon
termination, retirement, disability, or hardship (as determined by the IRS).
Distributions may be made to the participant or beneficiary as a lump sum
payment or as an insured annuity. No in-service withdrawals of the company
matching, discretionary, or optional employer contributions are allowed.
7
Plan Termination
Although the Company has not expressed any intention to do so, it has
the right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of a
termination of the Plan, all plan assets would be distributed in accordance with
the Plan.
2. Summary of Significant Accounting Policies:
The financial statements have been prepared on the accrual basis of
accounting.
Use of Estimates
The preparation of the Plan's financial statements in conformity with
generally accepted accounting principles requires the plan administrator to make
significant estimates and assumptions that affect the reported amounts of net
assets available for benefits at the date of the financial statements and the
changes in net assets available for benefits during the reporting period and,
when applicable, disclosures of contingent assets and liabilities at the date of
the financial statements. Actual results could differ from those estimates.
Risks and Uncertainties
The Plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, mutual funds, and other investment
securities. Investment securities are exposed to various risks, such as interest
rate, market and credit risks. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in the
values of investment securities will occur in the near term and that such
changes could materially affect participants' account balances and the amounts
reported in the statement of net assets available for plan benefits.
Investments
The valuation of the Plan's investments in all funds is based on the
market value of the assets held in the funds. The Plan's relative interest in
the funds is determined on a unit-method basis. The valuation of the Vanguard
Funds is based on the closing market price of the assets which comprise the
funds on the last business day of the Plan year. Investments in the Vanguard
Retirement Savings Trust are carried at market value (which equals original cost
plus accrued interest less any distribution). Market value approximates contract
value. The valuation of Class B common stock in the Raytheon Common Stock Fund
is based on closing market price as reported on the New York Stock Exchange on
the last business day of the Plan year. Purchases and sales of securities are
reflected on the trade-date basis. Dividend income is recognized on the
ex-dividend date.
The Plan presents in the statement of changes in net assets the net
appreciation (depreciation) in the fair value of its investments which consists
of the realized gains or losses and the unrealized appreciation (depreciation)
on those investments.
Administrative Expenses
The expenses incurred by the Plan are paid from Plan funds. Expenses
incurred in administering the Plan are generally allocated to the respective
fund to which they relate.
8
3. Plan Amendments:
The Plan was amended effective January 1, 1997, to include employees
of Engineering Research Associates, Inc. Retirement Savings Plan ("ERA") and
authorized the transfer of ERA employees' accounts into the Plan. This amendment
also changed the distribution policy related to prior plan employer contribution
accounts from the ERA Plan.
4. Investments:
The Plan held the following investments at December 31, 1997 and 1996
(investments that represent 5% or more of the Plan's net assets are separately
identified):
Fair Value at December 31,
1997 1996
Raytheon Common Stock Fund $ 35,787,508 $ 33,545,329
Vanguard/Morgan Growth Fund 97,914,498 68,074,242
Vanguard/ Windsor Fund 226,774,736 173,891,032
Vanguard Money Market Reserves Prime Portfolio 91,047,417 95,347,229
Vanguard Short-Term Corporate Bond Portfolio 16,848,440 14,234,216
Vanguard Index Trust 500 Portfolio 134,265,332 84,493,315
Vanguard International Value Portfolio 14,883,787 13,172,565
Vanguard/Wellesley Income Fund 32,126,350 22,181,701
------------ ------------
649,648,068 504,939,629
Vanguard Retirement Savings Trust 61,180,556 56,821,945
Participant loans 22,992,597 22,858,010
------------ ------------
$733,821,221 $584,619,584
============ ============
5. Income Tax Status:
The IRS has determined and informed the Company by a letter dated
December 4, 1996 that the Plan is designed in accordance with applicable
sections of the IRC. The Plan has been amended since the date the IRS made its
tax determination; however, the Plan administrator believes the Plan is designed
and currently being operated in compliance with the applicable requirements of
the IRC.
9
6. Combining Statements of Net Assets Available for Benefits and Changes in Net
Assets Available for Benefits:
Net assets available for benefits at December 31, 1997 are as follows:
Raytheon Vanguard Vanguard/
Common Retirement Morgan Vanguard/ Vanguard Money
Stock Savings Growth Windsor Market Reserves
Total Fund Trust Fund Fund Prime Portfolio
Assets:
Investments at fair value:
Mutual funds $613,860,560 $ -- $ -- $ 97,914,498 $226,774,736 $ 91,047,417
Collective investment fund 61,180,556 -- 61,180,556 -- -- --
Raytheon Company stock fund 35,787,508 35,787,508 -- -- -- --
Participant loans 22,992,597 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total investments 733,821,221 35,787,508 61,180,556 97,914,498 226,774,736 91,047,417
------------ ------------ ------------ ------------ ------------ ------------
Receivables:
Contributions due from employees 2,135,509 141,251 161,840 301,542 629,130 219,638
Contributions due from employer 9,520,806 1,597,516 225,700 905,920 1,566,103 2,542,782
------------ ------------ ------------ ------------ ------------ ------------
Total receivables 11,656,315 1,738,767 387,540 1,207,462 2,195,233 2,762,420
Net assets available for benefits $745,477,536 $ 37,526,275 $ 61,568,096 $ 99,121,960 $228,969,969 $ 93,809,837
============ ============ ============ ============ ============ ============
10
Vanguard Vanguard/ Vanguard
Vanguard Short Index Wellesley International
Term Corporate Trust 500 Income Value
Bond Portfolio Portfolio Fund Portfolio Loan Fund
Assets:
Investments at fair value:
Mutual funds $ 16,848,440 $134,265,332 $ 32,126,350 $ 14,883,787 $ --
Collective investment fund -- -- -- -- --
Raytheon Company stock fund -- -- -- -- --
Participant loans -- -- -- -- 22,992,597
------------ ------------ ------------ ------------ ------------
Total investments 16,848,440 134,265,332 32,126,350 14,883,787 22,992,597
------------ ------------ ------------ ------------ ------------
Contributions due from employees 61,411 434,798 109,353 76,546 --
Contributions due from employer 142,667 1,732,435 462,314 345,369 --
------------ ------------ ------------ ------------ ------------
Total receivables 204,078 2,167,233 571,667 421,915 --
Net assets available for benefits $ 17,052,518 $136,432,565 $ 32,698,017 $ 15,305,702 $ 22,992,597
============ ============ ============ ============ ============
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Net assets available for benefits at December 31, 1996 are as follows:
Raytheon Vanguard Vanguard/
Common Retirement Morgan Vanguard/ Vanguard Money
Stock Savings Growth Windsor Market Reserves
Total Fund Trust Fund Fund Prime Portfolio
Assets:
Investments at fair value:
Mutual funds $471,394,300 -- -- $ 68,074,242 $173,891,032 $ 95,347,229
Collective investment fund 56,821,945 -- $ 56,821,945 -- -- --
Raytheon Company stock fund 33,545,329 $ 33,545,329 -- -- -- --
Participant loans 22,858,010 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total investments 584,619,584 33,545,329 56,821,945 68,074,242 173,891,032 95,347,229
------------ ------------ ------------ ------------ ------------ ------------
Receivables:
Contributions due from employees 1,293,228 77,803 105,266 174,491 376,700 146,384
Contributions due from employer 8,599,589 1,706,924 209,032 774,618 1,375,791 2,168,315
------------ ------------ ------------ ------------ ------------ ------------
Total receivables 9,892,817 1,784,727 314,298 949,109 1,752,491 2,314,699
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits $594,512,401 $ 35,330,056 $ 57,136,243 $ 69,023,351 $175,643,523 $ 97,661,928
============ ============ ============ ============ ============ ============
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Vanguard Vanguard/ Vanguard
Vanguard Short- Index Wellesley International
Term Corporate Trust 500 Income Value
Bond Portfolio Portfolio Fund Portfolio Loan Fund
Investments at fair value:
Mutual funds $ 14,234,216 $ 84,493,315 $ 22,181,701 $ 13,172,565 --
Collective investment fund -- -- -- -- --
Raytheon Company stock fund -- -- -- -- --
Participant loans -- -- -- -- $ 22,858,010
------------ ------------ ------------ ------------ ------------
Total investments 14,234,216 84,493,315 22,181,701 13,172,565 22,858,010
------------ ------------ ------------ ------------ ------------
Receivables:
Contributions due from employees 43,654 250,338 66,282 52,310 --
Contributions due from employer 135,064 1,484,826 398,529 346,490 --
------------ ------------ ------------ ------------ ------------
Total receivables 178,718 1,735,164 464,811 398,800 --
------------ ------------ ------------ ------------ ------------
Net assets available for benefits $ 14,412,934 $ 86,228,479 $ 22,646,512 $ 13,571,365 $ 22,858,010
============ ============ ============ ============ ============
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6. Combining Statements of Net Assets Available for Benefits and Changes in
Net Assets Available for Benefits, continued:
Changes in net assets available for benefits for the year ended
December 31, 1997 are as follows:
Vanguard
Raytheon Vanguard Vanguard/ Vanguard/ Money Market
Common Retirement Morgan Windsor Reserves Prime
Total Stock Fund Savings Trust Growth Fund Fund Portfolio
Net assets available for benefits,
January 1, 1997 $594,512,401 $ 35,330,056 $ 57,136,243 $ 69,023,351 $175,643,523 $ 97,661,928
------------ ------------ ------------ ------------ ------------ ------------
Additions:
Dividend income 54,412,625 634,222 -- 12,998,262 36,042,403 --
Interest income 14,947,020 -- 3,586,959 -- -- 4,912,252
Employee contributions 44,956,931 2,984,412 3,263,374 6,468,575 13,428,028 3,676,361
Employer contributions 17,568,486 2,164,068 866,470 2,037,203 3,929,947 3,313,724
Transfer to/from other
qualified plans 21,789,278 821,753 1,228,041 3,536,507 4,526,759 1,470,742
Other receipts
(disbursements) 537,578 13,884 21,468 30,872 70,085 339,066
------------ ------------ ------------ ------------ ------------ ------------
Total additions 154,211,918 6,618,339 8,966,312 25,071,419 57,997,222 13,712,145
------------ ------------ ------------ ------------ ------------ ------------
Deductions:
Administrative and other expenses 219,897 22,085 6,223 25,145 49,143 55,156
Benefits paid to participants 43,412,766 841,545 5,830,500 4,023,261 11,284,786 9,387,950
------------ ------------ ------------ ------------ ------------ ------------
Total deductions 43,632,663 863,630 5,836,723 4,048,406 11,333,929 9,443,106
------------ ------------ ------------ ------------ ------------ ------------
Transfers -- (5,655,890) 1,302,264 452,337 3,417,959 (8,121,130)
------------ ------------ ------------ ------------ ------------ ------------
Net appreciation (depreciation)
of investments 40,385,880 2,097,400 -- 8,623,259 3,245,194 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 150,965,135 2,196,219 4,431,853 30,098,609 53,326,446 (3,852,091)
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits,
December 31, 1997 $745,477,536 $ 37,526,275 $ 61,568,096 $ 99,121,960 $228,969,969 $ 93,809,837
============ ============ ============ ============ ============ ============
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Vanguard Vanguard Vanguard/ Vanguard
Short-Term Index Wellesley International
Corporate Trust 500 Income Value
Bond Portfolio Portfolio Fund Portfolio Loan Fund
Net assets available for benefits,
January 1, 1997 $14,412,934 $ 86,228,479 $22,646,512 $ 13,571,365 $ 22,858,010
Additions:
Dividend income -- 2,692,576 -- 2,045,162 --
Interest income 930,317 -- 3,382,496 -- 2,134,996
Employee contributions 1,341,287 9,532,053 2,400,639 1,862,202 --
Employer contributions 389,632 3,316,226 898,198 653,018 --
Transfer to/from other
qualified plans 1,009,628 5,378,213 2,503,615 1,151,048 162,972
Other receipts
(disbursements) 7,834 39,628 7,329 8,805 (1,393)
----------- ------------ ----------- ------------ ------------
Total additions 3,678,698 20,958,696 9,192,277 5,720,235 2,296,575
----------- ------------ ----------- ------------ ------------
Administrative and other expenses 4,990 39,711 11,053 6,391 --
Benefits paid to participants 1,297,902 7,042,765 1,487,423 883,988 1,332,646
----------- ------------ ----------- ------------ ------------
Total deductions 1,302,892 7,082,476 1,498,476 890,379 1,332,646
----------- ------------ ----------- ------------ ------------
Transfers 174,787 8,625,867 851,109 (217,961) (829,342)
----------- ------------ ----------- ------------ ------------
Net appreciation (depreciation)
of investments 88,991 27,701,999 1,506,595 (2,877,558) --
----------- ------------ ----------- ------------ ------------
Net increase (decrease) 2,639,584 50,204,086 10,051,505 1,734,337 134,587
----------- ------------ ----------- ------------ ------------
Net assets available for benefits,
December 31, 1997 $17,052,518 $136,432,565 $32,698,017 $ 15,305,702 $ 22,992,597
=========== ============ =========== ============ ============
15
6. Combining Statements of Net Assets Available for Benefits and
Changes in Net Assets Available for Benefits, continued:
Changes in net assets available for benefits for the year ended December 31,
1996 are as follows:
Vanguard Vanguard/ Vanguard
Raytheon Retirement Morgan Vanguard/ Money Market
Common Savings Growth Windsor Reserves Prime
Total Stock Fund Trust Fund Fund Portfolio
Net assets available for benefits,
January 1, 1996 $500,554,494 $ 13,185,095 $ 53,401,234 $42,342,785 $124,660,848 $ 169,074,878
------------ ------------ ------------ ----------- ------------ -------------
Additions:
Dividend income 27,722,560 316,591 -- 6,461,821 16,617,514 --
Interest income 13,563,141 -- 3,225,136 -- -- 5,662,728
Employee contributions 38,892,568 1,951,850 3,596,336 5,180,985 12,436,860 3,523,422
Employer contributions 15,587,178 2,065,612 897,534 1,695,947 3,579,619 2,893,317
qualified plans 8,134,901 423,601 281,483 1,418,757 1,572,737 489,658
Other receipts (disbursements) 186,148 23,319 (5,798) 30,898 132,948 (40,319)
------------ ------------ ------------ ----------- ------------ -------------
Total additions 104,086,496 4,780,973 7,994,691 14,788,408 34,339,678 12,528,806
------------ ------------ ------------ ----------- ------------ -------------
Deductions:
Administrative and other expenses 197,893 19,018 8,396 21,363 49,281 51,805
Benefits paid to participants 44,538,255 606,895 5,501,619 3,024,269 8,065,342 19,039,033
------------ ------------ ------------ ----------- ------------ -------------
Total deductions 44,736,148 625,913 5,510,015 3,045,632 8,114,623 19,090,838
------------ ------------ ------------ ----------- ------------ -------------
Transfers -- 18,341,916 1,250,333 9,620,443 5,961,265 (64,850,918)
------------ ------------ ------------ ----------- ------------ -------------
Net appreciation (depreciation)
of investments 34,607,559 (352,015) -- 5,317,347 18,796,355 --
------------ ------------ ------------ ----------- ------------ -------------
Net increase (decrease) 93,957,907 22,144,961 3,735,009 26,680,566 50,982,675 (71,412,950)
------------ ----------- ------------ ----------- ------------ -------------
Net assets available for benefits,
December 31, 1996 $594,512,401 $ 35,330,056 $ 57,136,243 $69,023,351 $175,643,523 $ 97,661,928
============ ============ ============ =========== ============ =============
16
Vanguard Vanguard Vanguard/ Vanguard
Short-Term Index Wellesley International
Corporate Trust 500 Income Value
Bond Portfolio Portfolio Fund Portfolio Loan Fund
Net assets available for benefits,
January 1, 1996 $ 11,603,894 $ 44,579,839 $ 14,201,003 $ 6,644,206 $ 20,860,712
------------ ------------ ------------ ------------ ------------
Additions:
Dividend income -- 1,777,001 -- 2,549,633 --
Interest income 830,718 -- 1,785,544 -- 2,059,015
Employee contributions 1,375,434 7,078,147 2,141,832 1,607,702 --
Employer contributions 385,883 2,676,588 784,604 608,074 --
Transfer from other
qualified plans 440,632 2,512,291 713,862 263,937 17,943
Other receipts (disbursements) 4,695 30,859 5,294 4,295 (43)
------------ ------------ ------------ ------------ ------------
Total additions 3,037,362 14,074,886 5,431,136 5,033,641 2,076,915
------------ ------------ ------------ ------------ ------------
Deductions:
Administrative and other expenses 5,375 28,472 9,190 4,993 --
Benefits paid to participants 796,455 4,662,453 1,276,504 545,346 1,020,339
------------ ------------ ------------ ------------ ------------
Total deductions 801,830 4,690,925 1,285,694 550,339 1,020,339
------------ ------------ ------------ ------------ ------------
Transfers 772,960 19,806,330 4,199,218 3,957,731 940,722
------------ ------------ ------------ ------------ ------------
Net appreciation (depreciation)
of investments (199,452) 12,458,349 100,849 (1,513,874) --
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 2,809,040 41,648,640 8,445,509 6,927,159 1,997,298
------------ ------------ ------------ ------------ ------------
Net assets available for benefits,
December 31, 1996 $ 14,412,934 $ 86,228,479 $ 22,646,512 $ 13,571,365 $ 22,858,010
============ ============ ============ ============ ============
17
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
Item 27aSCHEDULE OF ASSETS HELD
FOR INVESTMENT PURPOSES
December 31, 1997
Name of Issuer and Title of Issue Interest Rate Shares Cost Market
Vanguard Retirement Savings Trust 61,180,556 $ 61,180,556 $ 61,180,556
Vanguard/Morgan Growth Fund 5,582,355 83,538,031 97,914,498
Vanguard/Windsor Fund 13,355,403 208,193,444 226,774,736
Vanguard Money Market Reserves
Prime Portfolio 91,047,417 91,047,417 91,047,417
Vanguard Short-Term Corporate
Bond Portfolio 1,558,598 16,761,967 16,848,440
Vanguard Index Trust 500 Portfolio 1,490,678 95,498,167 134,265,332
Vanguard/Wellesley Income Fund 1,469,641 30,172,824 32,126,350
Raytheon Common Stock Fund 2,822,359 34,761,821 35,787,508
Vanguard International Value
Portfolio 657,411 19,180,678 14,883,787
------------ ------------
Total investments $640,334,905 $710,828,624
============ ============
Participant loans 6.97% -13.28% $ -- 22,992,597
============ ============
Raytheon Company and Vanguard investments denote parties-in-interest.
18
E-SYSTEMS, INC. EMPLOYEE SAVINGS PLAN
Item 27dSCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1997
Number of Cost of Number Cost Proceeds Gain (Loss)
Identity of Issue Purchases Purchases of Sales of Asset From Sales on Sales
Category (iii) - Series
of securities transactions
Vanguard/Windsor Fund 252 $84,330,904 253 $29,386,487 $34,762,479 $5,375,992
Vanguard/Morgan Growth Fund 248 $39,170,358 252 $15,960,298 $17,984,232 $2,023,934
Raytheon Common Stock Fund 238 $33,046,678 251 $31,760,123 $32,915,784 $1,155,661
Vanguard Money Market
Reserves Prime Portfolio 256 $60,738,093 253 $65,376,972 $65,376,972 $ -
Vanguard Index Trust 500 Portfolio 253 $57,221,134 253 $30,455,013 $35,190,744 $4,735,731
Vanguard Retirement Savings Trust 247 $22,195,710 250 $17,858,566 $17,858,566 $ -
There were no category (i), (ii) or (iv) reportable transactions during 1997.
Raytheon Company and Vanguard investments denote parties-in-interest.