1
EXHIBIT 99.6
RAYTHEON TI SYSTEMS SAVINGS PLAN
FINANCIAL STATEMENTS TO ACCOMPANY 1997 FORM 5500
ANNUAL REPORT OF EMPLOYEE BENEFIT PLAN
UNDER ERISA OF 1974
FOR THE PERIOD FROM JULY 11, 1997 to DECEMBER 31, 1997
The supplemental schedules required to accompany the Plan's Form 5500
are not required since the Plan's assets are held in a Master Trust.
Accordingly, detailed financial information, including the supplemental
schedules, must be filed separately with the Department of Labor by the plan
administrator.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Raytheon Company:
We have audited the accompanying statement of net assets available for
plan benefits of the Raytheon TI Systems Savings Plan (the "Plan") as of
December 31, 1997, and the related statement of changes in net assets available
for plan benefits for the period from July 11, 1997 to December 31, 1997. 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 audit.
We conducted our audit 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 audit provides 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 plan benefits of
the Plan as of December 31, 1997 and the changes in net assets available for
plan benefits for the period from July 11, 1997 to December 31, 1997 in
conformity with generally accepted accounting principles.
Coopers & Lybrand LLP
Boston, Massachusetts
May 29, 1998
2
RAYTHEON TI SYSTEMS SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
as of December 31, 1997
Assets:
Master trust Investments:
At contract value (Notes B, E and H) $ 27,129,250
At fair value (Notes B, F and H) 151,647,372
------------
178,776,622
------------
Receivables
Accrued investment income and
other receivables 528,072
Cash and cash equivalents 1,673,631
------------
Total assets 180,978,325
------------
Liabilities:
Payable for outstanding purchases 533,996
Accrued expenses and other payables 192,678
------------
Total liabilities 726,674
------------
Net assets available for plan benefits $180,251,651
============
The accompanying notes are an integral part of the financial statements.
3
RAYTHEON TI SYSTEMS SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
for the period from July 11, 1997 to December 31, 1997
Additions to net assets attributable to:
Investment income (Notes B, E, and H):
Net depreciation of investments $ (4,990,657)
Interest 1,304,618
Dividends 3,548,891
-------------
(137,148)
-------------
Contributions and deferrals:
Employee deferrals 29,221,374
Employer contributions 4,151,771
Transfers (Note G) 149,409,371
-------------
182,782,516
-------------
Total additions 182,645,368
-------------
Deductions from net assets attributable to:
Distributions to participants 2,367,783
Administrative expenses 14,904
Transfers (Note G) 11,030
-------------
Total deductions 2,393,717
-------------
Increase in net assets 180,251,651
Net assets available for plan
benefits, beginning of year --
-------------
Net assets available for plan
benefits, end of year $ 180,251,651
=============
The accompanying notes are an integral part of the financial statements.
4
A. Description of Plan:
General
The following description of the Raytheon TI Systems Savings Plan (the
"Plan") provides only general information. Participants should refer to the plan
document for a complete description of the Plan's provisions. The Plan, which
was established on July 11, 1997, is a defined contribution plan covering
certain employees of Raytheon Company (the "Company"). Effective July 11, 1997,
employees assumed in the acquisition of the Texas Instruments defense business
and that participated in the Texas Instruments Defense Savings Plan, became
eligible to participate in the Plan. Participants have the option to rollover
amounts accumulated in plans sponsored by Texas Instruments to the Plan. Upon
election, amounts will be rolled over into funds selected by the participant. An
employee becomes eligible to participate in the Plan on the date he or she
becomes an employee and may enter the Plan any day thereafter during his or her
employment. The purpose of the Plan is to provide participants with a
tax-effective means of meeting both short- and long-term investment objectives.
The Plan is intended to be a "qualified cash or deferred arrangement" under
Sections 401(a) and 401(k) of the Internal Revenue Code (the "Code"). The Plan
is subject to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
The Plan's investments are held in the Raytheon Company Master Trust
for Defined Contribution Plans ("Master Trust") with the assets of other defined
contribution plans of Raytheon Company and subsidiaries. The trustee of the
Master Trust maintains a separate account reflecting the equitable share in the
Trust of each plan.
Investment income and administrative expenses relating to the Master
Trust are allocated to the individual plans based upon average monthly balances
invested by each plan.
Contributions and Deferrals
Eligible employees are allowed to defer to the Plan up to 17% of their
salaries. The Company contributes amounts equal to 50% of each participant's
deferral, up to a maximum of 2% of the participant's salary. As of December 31,
1997, the annual employee deferral for a participant cannot exceed $7,000.
Rollover contributions from other qualified plans are accepted by the Plan.
Participants may invest their deferrals in any combination of nine funds: (a) a
Fixed Income Fund under which assets are invested primarily in contracts
providing for fixed rates of interest for specified periods of time, (b) an
Equity Fund which invests in shares of a mutual fund which consists primarily of
income-producing equity securities, (c) a Raytheon Common Stock Fund which
invests in shares of Raytheon Company Class B common stock, (d) a Stock Index
Fund which invests in a commingled pool consisting primarily of equity
securities and is designed to track the S&P 500 Index, (e a Balanced Fund which
invests in shares of a mutual fund which consists primarily of equity
securities, bonds and money market instruments, (f) the Magellan Fund, a growth
fund which invests primarily in equities of companies of all types and sizes,
(g) the Blue Chip Fund, a growth fund which invests primarily in equities of
well known and established companies, (h) the Templeton Foreign I Fund, a
long-term capital growth fund which invests in stocks and debt obligations of
companies and governments of any nation and (i) the Investment Grade Bond Fund
which invests primarily in U.S. government and corporate bonds including,
without limitation, index funds and mutual funds. Dividends and distributions
from investments of the Equity Fund, the Raytheon Common Stock Fund, the Stock
Index Fund, the Balanced Fund, the Magellan Fund, the Blue Chip Fund, the
Templeton Foreign I Fund and the Investment Grade Bond Fund are reinvested in
their respective funds; stock dividends, stock splits and similar changes are
also reflected in the funds.
5
Participant Accounts
Each participant's account is credited with the participant's
deferral, the Company's contribution and an allocation of plan earnings. Plan
earnings are allocated based on account balances by fund.
Vesting
Participants are immediately vested in their voluntary deferrals plus
actual earnings thereon. Vesting requirements for employer contributions plus
earnings thereon may vary depending upon when an employee became eligible to
participate in the Plan. Vesting generally occurs upon the earliest of the
completion of five years of service or three years of plan participation or upon
retirement, death, disability, or attainment of normal retirement age.
Forfeitures of the nonvested portions of terminated participants' accounts are
used to reduce required contributions of the Company.
Distributions to Participants
A participant may withdraw all or a portion of deferrals, employer
contributions and related earnings upon attainment of age 59-1/2. For reasons of
financial hardship, as defined in the Plan document, a participant may withdraw
all or a portion of deferrals. On termination of employment, a participant will
receive a lump-sum distribution unless the vested account is valued in excess of
$3,500 and the participant elects to defer distribution. A retiree or a
beneficiary of a deceased participant may defer the distribution until January
of the year following attainment of age 65.
Loans to Participants
A participant may borrow against a portion of the balance in the
participant's account, subject to certain restrictions. The maximum amount of a
loan is the lesser of one-half of the participant's vested account balance or
$50,000. The minimum loan which may be granted is $500. The interest rate
applied is equal to the prime rate published in the Wall Street Journal on the
first business day in June and December of each year. Loans must be repaid over
a period of up to five years by means of payroll deductions. In certain cases,
the repayment period may be extended up to 15 years. Interest paid to the Plan
on loans to participants is credited to the borrower's account in the investment
fund to which repayments are made.
Administrative Expenses
Substantially all expenses of administering the Plan are paid by the
plan participants.
B. Summary of Significant Accounting Policies:
The accompanying financial statements are prepared on the accrual
basis of accounting.
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The Plan's investment contracts are fully benefit-responsive and are
therefore included in the financial statements at their contract value, defined
as net contributions and deferrals plus interest earned on the underlying
investments at contracted rates. Because the investment contracts are fully
benefit-responsive, contract values approximate fair value. Investments in
mutual funds and the commingled pool are valued at the closing net asset value
reported on the last business day of the year. Investments in securities (common
stocks) traded on a national securities exchange are valued at the last reported
sales price on the last business day of the year. Cash equivalents are
short-term money market instruments and are valued at cost which approximates
fair value.
Security transactions are recorded on trade date. Except for its
investment contracts (Note E), the Plan's investments are held by
bank-administered trust funds. Payables for outstanding security transactions
represent trades which have occurred but have not yet settled.
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.
Dividend income is recorded on the ex-dividend date. Income from other
investments is recorded as earned on an accrual basis.
Benefits are recorded when paid.
The preparation of the 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 and liabilities 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 the estimates included in the financial statements.
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 risk. Due to the level of risk associated with certain
investment securities and the level of uncertainty related to changes in the
value of investment securities, it is at least reasonably possible that changes
in risks in the near term would materially affect participants' account balances
and the amounts reported in the statement of net assets available for plan
benefits and the statement of changes in net assets available for plan benefits.
C. Federal Income Tax Status:
Given that the Plan was established effective July 11, 1997, the Plan
has not received a tax determination letter to date. Raytheon Company has
submitted an application with the Internal Revenue Service under the 401(b)
regulation of the Internal Revenue Code and expects to receive the determination
letter by December 31, 1998. The plan administrator and the Plan's legal counsel
believe that the Plan is currently designed and being operated in compliance
with the applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial statements.
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D. Plan Termination:
Although it has not expressed any intention to do so, the Company
reserves the right under the Plan at any time or times to discontinue its
contributions and to terminate the Plan subject to the provisions of ERISA. In
the event of Plan termination, plan assets shall be distributed among all
participants in proportion to their interest and employee contributions shall be
distributed in accordance with the provisions contained in section 401(k)(10) of
the Internal Revenue Code.
E. Investment Contracts:
The Plan invests in collateralized fixed income investment portfolios
(with no expiration date), three of which are managed by insurance companies and
one of which is managed by an investment management firm. The credited interest
rates are adjusted semiannually to reflect the experienced and anticipated
yields to be earned on such investments, based on their book value. The
annualized average yield and credited interest rates were as follows:
Annualized Credited
Average Yield Interest Rate
For the year ended December 31, 1997:
Bankers Trust (WBS 92-485) 6.95% 6.95%
Metropolitan Life Insurance Company (GIC GA-12908) 6.86% 6.86%
Metropolitan Life Insurance Company (GIC GA-13659) 6.43% 6.43%
Prudential Asset Management Company (GIC 917163-001) 6.99% 6.99%
The contract values are subject to limitations in certain situations
including large workforce reductions and plan termination.
In the financial statements, the two Metropolitan Life Insurance
Company contracts are recorded as one investment option.
F. Related Party Transactions:
In accordance with the provisions of the Plan, Fidelity Management
Trust Company (the "Trustee") acts as the Plan's agent for purchases and sales
of shares of Raytheon Company Class B common stock. These transactions are
performed on the Master Trust level. For the Master Trust, purchases amounted to
$200,689,057 and sales amounted to $102,165,608 for the year ended December 31,
1997.
G. Transfers:
Transfers include transfers of participant accounts, individually
and/or in groups, between the Raytheon TI Systems Savings Plan and other plans
included in the Raytheon Company Master Trust for those participants, and/or
groups of participants, who changed plans during the year. Transfers also
include transfers of participant accounts, individually and/or in groups,
between the Raytheon TI Systems Savings Plan and similar savings plans of other
companies for those participants who changed companies during the year.
During the Plan year, the participants in the Texas Instruments
Defense Savings Plan voluntarily elected to transfer approximately $149 million
into the Plan. As of December 31, 1997, there are remaining participants that
have the option to make a rollover election in a future period.
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H. Fund Data:
The following is a summary of net assets available for plan benefits
by fund as of December 31, 1997:
Raytheon
Fixed Equity Common Stock Balanced Magellan
Income Fund Fund Stock Fund Index Fund Fund Fund
Assets:
Master trust investments:
At contract value:
Bankers Trust* $10,132,377
Prudential Insurance
Company of America 6,284,670
Metropolitan Life
Insurance Company* 10,712,203
At fair value:
Fidelity Equity Income Fund $8,254,100
Raytheon Company Common Stock* $ 62,818,459
BT Pyramid Equity Index Fund* $27,442,258
Fidelity Balanced Fund $7,638,642
Fidelity Magellan Fund $6,635,153
Fidelity Blue Chip Fund*
Templeton Foreign I Fund
Fidelity Investment Grade Bond Fund
Loans receivable from participants*
----------- ---------- ----------- ----------- ---------- ----------
Total investments 27,129,250 8,254,100 62,818,459 27,442,258 7,638,642 6,635,153
----------- ---------- ----------- ----------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 462,345 65,727
Cash and cash equivalents 267,275 1,136,836 269,520
----------- ---------- ----------- ----------- ---------- ----------
Total assets 27,396,525 8,254,100 64,417,640 27,777,505 7,638,642 6,635,153
----------- ---------- ----------- ----------- ---------- ----------
Liabilities:
Payable for outstanding purchases 533,996
Accrued expenses and other
payables 124,723 67,955
----------- ---------- ----------- ----------- ---------- ----------
Total liabilities 658,719 67,955
----------- ---------- ----------- ----------- ---------- ----------
Net assets available for plan
benefits $27,396,525 $8,254,100 $63,758,921 $27,709,550 $7,638,642 $6,635,153
=========== ========== =========== =========== ========== ==========
*Represents more than 5% of net assets available for plan benefits
9
Templeton Investment
Blue Chip Foreign I Grade
Fund Fund Bond Fund Loan Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust* $ 10,132,377
Prudential Insurance
Company of America 6,284,670
Metropolitan Life
Insurance Company* 10,712,203
At fair value:
Fidelity Equity Income Fund 8,254,100
Raytheon Company Common Stock* 62,818,459
BT Pyramid Equity Index Fund* 27,442,258
Fidelity Balanced Fund 7,638,642
Fidelity Magellan Fund 6,635,153
Fidelity Blue Chip Fund* $18,760,639 18,760,639
Templeton Foreign I Fund $5,471,176 5,471,176
Fidelity Investment Grade Bond Fund $1,548,125 1,548,125
Loans receivable from participants* $13,078,820 13,078,820
----------- ---------- ---------- ----------- ------------
Total investments 18,760,639 5,471,176 1,548,125 13,078,820 178,776,622
----------- ---------- ---------- ----------- ------------
Receivables:
Accrued investment income
and other receivables 528,072
Cash and cash equivalents 1,673,631
----------- ---------- ---------- ----------- ------------
Total assets 18,760,639 5,471,176 1,548,125 13,078,820 180,978,325
----------- ---------- ---------- ----------- ------------
Liabilities:
Payable for outstanding purchases 533,996
Accrued expenses and other
payables 192,678
----------- ---------- ---------- ----------- ------------
Total liabilities 726,674
----------- ---------- ---------- ----------- ------------
Net assets available for plan
benefits $18,760,639 $5,471,176 $1,548,125 $13,078,820 $180,251,651
=========== ========== ========== =========== ============
*Represents more than 5% of net assets available for plan benefits
10
H. Fund Data, continued:
The following is a summary of changes in net assets available for plan benefits
by fund for the period from July 11, 1997 to December 31, 1997:
Raytheon
Fixed Equity Common Stock Balanced Magellan
Income Fund Fund Stock Fund Index Fund Fund Fund
Additions to net assets attributable to:
Investment income:
Net appreciation (depreciation)
of investments $ 59,098 $(5,453,334) $1,652,781 $ (272,348) $ (143,992)
Interest $ 752,433 60,107 18,465
Dividends 280,543 936,370 709,881 263,518
----------- ---------- ----------- ----------- ---------- ----------
752,433 339,641 (4,456,857) 1,671,246 437,533 119,526
----------- ---------- ----------- ----------- ---------- ----------
Contributions and deferrals:
Employee deferrals 4,538,948 4,361,426 2,447,309 5,260,391 1,778,081 3,157,807
Employer contributions 661,139 592,171 309,044 764,911 224,194 424,971
Transfers 22,672,912 76,796,394 19,365,848 5,048,298
----------- ---------- ----------- ----------- ---------- ----------
27,872,999 4,953,597 79,552,747 25,391,150 7,050,573 3,582,778
----------- ---------- ----------- ----------- ---------- ----------
Total additions 28,625,432 5,293,238 75,095,890 27,062,396 7,488,106 3,702,304
----------- ---------- ----------- ----------- ---------- ----------
Deductions from net assets
attributable to:
Distributions to participants 454,270 19,334 1,216,475 244,815 38,207 25,676
Administrative expenses 2,444 416 7,063 2,257 609 321
Transfers 11,020 10
----------- ---------- ----------- ----------- ---------- ----------
Total deductions 456,714 19,750 1,234,558 247,082 38,816 25,997
----------- ---------- ----------- ----------- ---------- ----------
Interfund transfers (772,193) 2,980,612 (10,102,411) 894,236 189,352 2,958,846
----------- ---------- ----------- ----------- ---------- ----------
Increase (decrease) in net assets 27,396,525 8,254,100 63,758,921 27,709,550 7,638,642 6,635,153
Net assets available for plan
benefits, beginning of year
----------- ---------- ----------- ----------- ---------- ----------
Net assets available for plan
benefits, end of year $27,396,525 $8,254,100 $63,758,921 $27,709,550 $7,638,642 $6,635,153
=========== ========== =========== =========== ========== ==========
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Templeton Investment
Blue Chip Foreign I Grade
Fund Fund Bond Fund Loan Fund Total
Additions to net assets attributable to:
Investment income:
Net appreciation (depreciation)
of investments $ (29,047) $ (826,396) $ 22,581 $ (4,990,657)
Interest $ 473,613 1,304,618
Dividends 772,525 549,717 36,337 3,548,891
----------- ---------- ---------- ----------- ------------
743,478 (276,679) 58,918 473,613 (137,148)
----------- ---------- ---------- ----------- ------------
Contributions and deferrals:
Employee deferrals 5,121,382 2,176,502 379,528 29,221,374
Employer contributions 801,233 330,882 43,226 4,151,771
Transfers 10,587,769 3,270,460 1,047,031 10,620,659 149,409,371
----------- ---------- ---------- ----------- ------------
16,510,384 5,777,844 1,469,785 10,620,659 182,782,516
----------- ---------- ---------- ----------- ------------
Total additions 17,253,862 5,501,165 1,528,703 11,094,272 182,645,368
----------- ---------- ---------- ----------- ------------
Deductions from net assets
attributable to:
Distributions to participants 183,388 21,473 13,063 151,082 2,367,783
Administrative expenses 1,415 297 82 14,904
Transfers 11,030
----------- ---------- ---------- ----------- ------------
Total deductions 184,803 21,770 13,145 151,082 2,393,717
----------- ---------- ---------- ----------- ------------
Interfund transfers 1,691,580 (8,219) 32,567 2,135,630 --
----------- ---------- ---------- ----------- ------------
Increase (decrease) in net assets 18,760,639 5,471,176 1,548,125 13,078,820 180,251,651
Net assets available for plan
benefits, beginning of year --
----------- ---------- ---------- ----------- ------------
Net assets available for plan
benefits, end of year $18,760,639 $5,471,176 $1,548,125 $13,078,820 $180,251,651
=========== ========== ========== =========== ============
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I. Master Trust:
All plan investments are included under the Master Trust. At December
31, 1997, assets of the Plan represented 5.1% of the total assets under the
Master Trust. The following is a summary of net assets available for plan
benefits by fund under the Master Trust as of December 31, 1997:
Raytheon
Fixed Common Stock Balanced Magellan
Income Fund Equity Fund Stock Fund Index Fund Fund Fund
Assets:
Investments:
At contract value:
Bankers Trust* $351,035,073
Prudential Insurance
Company of America* 217,731,699
Metropolitan Life
Insurance Company* 371,123,080
At fair value:
Fidelity Equity Income Fund* $782,799,011
Raytheon Company Common Stock* $745,980,294
BT Pyramid Equity Index Fund* $484,781,406
Fidelity Balanced Fund $117,556,481
Fidelity Magellan Fund $91,863,155
Fidelity Blue Chip Fund
Templeton Foreign I Fund
Fidelity Investment Grade
Bond Fund
Fidelity Retirement Money
Market Fund
Loans receivable from
participants
------------ ------------ ------------ ------------ ------------ -----------
Total investments 939,889,852 782,799,011 745,980,294 484,781,406 117,556,481 91,863,155
Receivables:
Employer contribution
Accrued investment income and
other receivables 5,489,592 1,161,112
Cash and cash equivalents 9,232,100 13,498,051 4,761,268
------------ ------------ ------------ ------------ ------------ -----------
Total assets 949,121,952 782,799,011 764,967,937 490,703,786 117,556,481 91,863,155
------------ ------------ ------------ ------------ ------------ -----------
Liabilities:
Payable for outstanding purchases 6,340,318
Accrued expenses and other
payables 1,480,875 1,200,471
------------ ------------ ------------ ------------ ------------ -----------
Total liabilities 7,821,193 1,200,471
------------ ------------ ------------ ------------ ------------ -----------
Net assets available for
plan benefits $949,121,952 $782,799,011 $757,146,744 $489,503,315 $117,556,481 $91,863,155
============ ============ ============ ============ ============ ===========
Percentage of Master Trust that
are plan assets of the Raytheon
TI Systems Savings Plan 2.9% 1.1% 8.4% 5.7% 6.5% 7.2%
*Represents more than 5% of net assets available for plan benefits.
N/A: The Retirement Money Market Fund is not available for the Raytheon TI
Systems Savings Plan.
13
Templeton Investment Retirement
Blue Chip Foreign I Grade Money
Fund Fund Bond Fund Market Fund Loan Fund Total
Assets:
Investments:
At contract value:
Bankers Trust* $ 351,035,073
Prudential Insurance
Company of America* 217,731,699
Metropolitan Life
Insurance Company* 371,123,080
At fair value:
Fidelity Equity Income Fund* 782,799,011
Raytheon Company Common Stock* 745,980,294
BT Pyramid Equity Index Fund* 484,781,406
Fidelity Balanced Fund 117,556,481
Fidelity Magellan Fund 91,863,155
Fidelity Blue Chip Fund $136,586,123 136,586,123
Templeton Foreign I Fund $5,471,176 5,471,176
Fidelity Investment Grade
Bond Fund $1,548,125 1,548,125
Fidelity Retirement Money
Market Fund $12,186,085 12,186,085
Loans receivable from
participants $166,395,767 166,395,767
------------ ---------- ---------- ----------- ------------ --------------
Total investments 136,586,123 5,471,176 1,548,125 12,186,085 166,395,767 3,485,057,475
Receivables:
Employer contribution 4,015,100 4,015,100
Accrued investment income and
other receivables 6,650,704
Cash and cash equivalents 27,491,419
------------ ---------- ---------- ----------- ------------ --------------
Total assets 136,586,123 5,471,176 1,548,125 16,201,185 166,395,767 3,523,214,698
------------ ---------- ---------- ----------- ------------ --------------
Liabilities:
Payable for outstanding purchases 6,340,318
Accrued expenses and other
payables 2,681,346
------------ ---------- ---------- ----------- ------------ --------------
Total liabilities 9,021,664
------------ ---------- ---------- ----------- ------------ --------------
Net assets available for
plan benefits $136,586,123 $5,471,176 $1,548,125 $16,201,185 $166,395,767 $3,514,193,034
============ ========== ========== =========== ============ ==============
Percentage of Master Trust that
are plan assets of the Raytheon
TI Systems Savings Plan 13.7% 100% 100% N/A 7.9% 5.1%
*Represents more than 5% of net assets available for plan benefits
N/A: The Retirement Money Market Fund is not available for the Raytheon TI
Systems Savings Plan.
14
I. Master Trust, continued:
The following is a summary of investment income by fund under the
Master Trust for the year ended December 31, 1997:
Raytheon
Fixed Common Stock Balanced Magellan Blue Chip
Income Fund Equity Fund Stock Fund Index Fund Fund Fund Fund
Investment income:
Net appreciation
(depreciation)of assets $ (191,924) $132,974,182 $30,715,963 $109,162,707 $ 6,388,316 $ 9,026,047 $15,474,118
Interest 62,319,073 673,934 312,511
Dividends 42,443,971 11,118,152 13,680,351 5,217,835 6,302,875
----------- ------------ ----------- ------------ ----------- ----------- -----------
Total investment income/(loss) $62,127,149 $175,418,153 $42,508,049 $109,475,218 $20,068,667 $14,243,882 $21,776,993
15
Templeton Investment Retirement
Foreign I Grade Money Loan
Fund Bond Fund Market Fund Fund Total
Investment income:
Net appreciation
(depreciation)of assets $(826,396) $22,581 $302,745,594
Interest $10,848,204 74,153,722
Dividends 549,717 36,337 $266,835 79,616,073
--------- ------- -------- ----------- ------------
Total investment income/(loss) $(276,679) $58,918 $266,835 $10,848,204 $456,515,389