1
EXHIBIT 99.3
RAYTHEON EMPLOYEE SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS TO ACCOMPANY 1997 FORM 5500
ANNUAL REPORT OF EMPLOYEE BENEFIT PLAN UNDER ERISA OF 1974
FOR THE YEAR ENDED 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 statements of net assets available
for plan benefits of the Raytheon Employee Savings and Investment Plan (the
"Plan") as of December 31, 1997 and 1996, and the related statement of changes
in net assets available for plan benefits for the year ended 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 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 plan benefits of
the Plan as of December 31, 1997 and 1996, and the changes in net assets
available for plan benefits for the year ended December 31, 1997 in conformity
with generally accepted accounting principles.
Coopers & Lybrand LLP
Boston, Massachusetts
May 29, 1998
2
RAYTHEON EMPLOYEE SAVINGS AND INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
as of December 31, 1997 and 1996
1997 1996
Assets:
Master trust investments:
At contract value (Notes B, E and H) $20,126,493 $12,229,251
At fair value (Notes B, F and H) 41,496,932 24,989,334
----------- -----------
61,623,425 37,218,585
----------- -----------
Receivables:
Accrued investment income and
other receivables 79,759 15,071
Cash and cash equivalents 422,687 345,294
----------- -----------
Total assets 62,125,871 37,578,950
----------- -----------
Liabilities:
Payable for outstanding purchases 72,220 29,112
Accrued expenses and other payables 34,682 15,104
----------- -----------
Total liabilities 106,902 44,216
----------- -----------
Net assets available for plan benefits $62,018,969 $37,534,734
=========== ===========
The accompanying notes are an integral part of the financial statements.
3
RAYTHEON EMPLOYEE SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
for the year ended December 31, 1997
Additions to net assets attributable to:
Investment income (Notes B, E and H):
Net appreciation of investments $ 4,772,686
Interest 1,613,198
Dividends 1,412,484
-----------
7,798,368
-----------
Contributions and deferrals:
Employee deferrals 18,694,367
Employer contributions 5,135,516
Transfers (Note G) 120,755
-----------
23,950,638
-----------
Total additions 31,749,006
-----------
Deductions from net assets attributable to:
Distributions to participants 5,963,118
Administrative expenses 12,997
Transfers (Note G) 1,288,656
-----------
Total deductions 7,264,771
-----------
Increase in net assets 24,484,235
Net assets available for plan benefits,
beginning of year 37,534,734
-----------
Net assets available for plan benefits,
end of year $62,018,969
===========
The accompanying notes are an integral part of the financial statements.
4
A. Description of Plan:
General
The following description of the Raytheon Employee Savings and
Investment 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 is a defined contribution plan and covers the employees of
the Raytheon Support Services Company, the Raytheon Aerospace Support Service
Company, and the Range Systems Engineer Support Company, wholly-owned
subsidiaries of Raytheon Company (the "Company"). To participate in the Plan,
eligible employees must have three months of service and may enter the Plan only
on the first day of each month. 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 plan 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. In 1995, the Company began to make qualified nonelective contributions
(QNECs) to certain accounts based on specific employee agreements. In 1996,
matching contributions under a specific agreement were made for certain
employees. As of December 31, 1997, the annual employee deferral for a
participant cannot exceed $9,500. Rollover contributions from other qualified
plans are accepted by the Plan. Participants may invest their deferrals in
increments of 1% in any combination of seven 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, and (g) the Blue Chip Fund, a
growth fund which invests primarily in equities of well known and established
companies. Dividends and distributions from investments of the Equity Fund, the
Raytheon Common Stock Fund, the Stock Index Fund, the Balanced Fund, the
Magellan Fund and the Blue Chip 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, any applicable employer contributions (QNECs or matching
contributions) 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 and
employer contributions plus actual earnings thereon.
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 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 5 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.
The Plan's investment contracts are fully benefit-responsive and are
therefore included in the financial statements at their contract value, defined
as net employee contributions 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.
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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.
Certain items in the 1996 financial statements have been reclassified
to conform to the 1997 presentation.
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:
The Plan obtained its latest determination letter in June 1995, in
which the Internal Revenue Service stated that the Plan, as submitted, was in
compliance with the applicable requirements of the Internal Revenue Code. The
Plan has been amended since receiving the determination letter. However, 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.
7
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, after payment of all expenses and proportional
adjustment of accounts to reflect such expenses, fund losses or profits, and
reallocations, each participant shall be entitled to receive any amounts then
credited to his or her account.
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
Average Credited
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%
For the year ended December 31, 1996:
Bankers Trust (WBS 92-485) 6.87% 6.95%
Metropolitan Life Insurance Company (GIC GA-12908) 6.77% 6.86%
Metropolitan Life Insurance Company (GIC GA-13659) 6.36% 6.43%
Prudential Asset Management Company (GIC 917163-001) 6.89% 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 Co. (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 $158,515,882 and sales amounted to $102,165,608 and $38,523,792
for the years ended December 31, 1997 and 1996, respectively.
G. Transfers:
Transfers include transfers of participant accounts, individually
and/or in groups, between the Plan and all 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 Plan and similar savings
plans of other companies for those participants who changed companies during the
year.
8
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* $ 7,516,950
Prudential Insurance
Company of America* 4,662,435
Metropolitan Life
Insurance Company* 7,947,108
At fair value:
Fidelity Equity Income Fund* $9,742,698
Raytheon Company Common Stock* $ 8,495,820
BT Pyramid Equity Index Fund* $ 7,213,874
Fidelity Balanced Fund $2,923,744
Fidelity Magellan Fund* $3,910,859
Fidelity Blue Chip Fund*
Loans receivable from participants*
----------- ---------- ----------- ----------- ---------- ----------
Total investments 20,126,493 9,742,698 8,495,820 7,213,874 2,923,744 3,910,859
----------- ---------- ----------- ----------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 62,529 17,230
Cash and cash equivalents 198,284 153,750 70,653
----------- ---------- ----------- ----------- ---------- ----------
Total assets 20,324,777 9,742,698 8,712,099 7,301,757 2,923,744 3,910,859
----------- ---------- ----------- ----------- ---------- ----------
Liabilities:
Payable for outstanding purchases 72,220
Accrued expenses and other
payables 16,868 17,814
----------- ---------- ----------- ----------- ---------- ----------
Total liabilities 89,088 17,814
----------- ---------- ----------- ----------- ---------- ----------
Net assets available for plan
benefits $20,324,777 $9,742,698 $8,623,011 $7,283,943 $2,923,744 $3,910,859
=========== ========== ========== ========== ========== ==========
*Represents more than 5% of net assets available for plan benefits
9
Blue Chip
Fund Loan Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust* $ 7,516,950
Prudential Insurance
Company of America* 4,662,435
Metropolitan Life
Insurance Company* 7,947,108
At fair value:
Fidelity Equity Income Fund* 9,742,698
Raytheon Company Common Stock* 8,495,820
BT Pyramid Equity Index Fund* 7,213,874
Fidelity Balanced Fund 2,923,744
Fidelity Magellan Fund* 3,910,859
Fidelity Blue Chip Fund* $4,599,412 4,599,412
Loans receivable from participants* $4,610,525 4,610,525
----------- ----------- ------------
Total investments 4,599,412 4,610,525 61,623,425
----------- ----------- ------------
Receivables:
Accrued investment income
and other receivables 79,759
Cash and cash equivalents 422,687
----------- ---------- ------------
Total assets 4,599,412 4,610,525 62,125,871
----------- ---------- ------------
Liabilities:
Payable for outstanding purchases 72,220
Accrued expenses and other
payables 34,682
----------- ---------- ------------
Total liabilities 106,902
----------- ---------- ------------
Net assets available for plan
benefits $4,599,412 $4,610,525 $62,018,969
=========== ========== ============
*Represents more than 5% of net assets available for plan benefits
10
H. Fund Data:
The following is a summary of net assets available for plan benefits
by fund as of December 31, 1996:
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* $ 4,612,540
Prudential Insurance
Company of America* 2,859,737
Metropolitan Life
Insurance Company* 4,756,974
At fair value:
Fidelity Equity Income Fund* $5,454,189
Raytheon Company Common Stock* $7,282,577
BT Pyramid Equity Index Fund* $3,169,184
Fidelity Balanced Fund* $1,978,807
Fidelity Magellan Fund* $2,053,270
Fidelity Blue Chip Fund*
Loans receivable from participants*
----------- ---------- ----------- ----------- ---------- ----------
Total investments 12,229,251 5,454,189 7,282,577 3,169,184 1,978,807 2,053,270
----------- ---------- ----------- ----------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 10,726 4,345
Cash and cash equivalents 198,709 110,093 36,492
----------- ---------- ----------- ----------- ---------- ----------
Total assets 12,427,960 5,454,189 7,403,396 3,210,021 1,978,807 2,053,270
----------- ---------- ----------- ----------- ---------- ----------
Liabilities:
Payable for outstanding purchases 29,112
Accrued expenses and other
payables 10,174 4,930
----------- ---------- ----------- ----------- ---------- ----------
Total liabilities 39,286 4,930
----------- ---------- ----------- ----------- ---------- ----------
Net assets available for plan
benefits $12,427,960 $5,454,189 $7,364,110 $3,205,091 $1,978,807 $2,053,270
=========== ========== ========== ========== ========== ==========
*Represents more than 5% of net assets available for plan benefits
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Blue Chip
Fund Loan Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust* $ 4,612,540
Prudential Insurance
Company of America* 2,859,737
Metropolitan Life
Insurance Company* 4,756,974
At fair value:
Fidelity Equity Income Fund* 5,454,189
Raytheon Company Common Stock* 7,282,577
BT Pyramid Equity Index Fund* 3,169,184
Fidelity Balanced Fund* 1,978,807
Fidelity Magellan Fund* 2,053,270
Fidelity Blue Chip Fund* $2,340,883 2,340,883
Loans receivable from participants* $2,710,424 2,710,424
----------- ----------- ------------
Total investments 2,340,883 2,710,424 37,218,585
----------- ----------- ------------
Receivables:
Accrued investment income
and other receivables 15,071
Cash and cash equivalents 345,294
---------- ---------- ------------
Total assets 2,340,883 2,710,424 37,578,950
---------- ---------- ------------
Liabilities:
Payable for outstanding purchases 29,112
Accrued expenses and other
payables 15,104
---------- ---------- ------------
Total liabilities 44,216
---------- ---------- ------------
Net assets available for plan
benefits $2,340,883 $2,710,424 $37,534,734
========== ========== ============
*Represents more than 5% of net assets available for plan benefits
12
H. Fund Data, continued:
The following is a summary of changes in net assets available for plan
benefits by fund for the year ended December 31, 1997:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Additions to net assets
attributable to:
Investment income:
Net appreciation of
investments $1,535,491 $ 544,487 $1,521,421 $ 181,174 $ 420,464
Interest $ 1,350,882 7,698 4,699
Dividends 499,994 126,638 345,201 225,651
----------- ----------- ---------- ---------- ---------- ----------
1,350,882 2,035,485 678,823 1,526,120 526,375 646,115
----------- ----------- ---------- ---------- ---------- ----------
Contributions and deferrals:
Employee deferrals 11,593,204 1,521,772 2,054,602 1,119,603 540,048 832,939
Employer contributions 3,042,770 386,957 662,465 319,985 120,312 266,595
Transfers
----------- ----------- ---------- ---------- ---------- ----------
14,635,974 1,908,729 2,717,067 1,439,588 660,360 1,099,534
----------- ----------- ---------- ---------- ---------- ----------
Total additions 15,986,856 3,944,214 3,395,890 2,965,708 1,186,735 1,745,649
----------- ----------- ---------- ---------- ---------- ----------
Deductions from net assets
attributable to:
Distributions to participants 3,001,605 627,971 730,222 307,056 212,666 358,805
Administrative expenses 5,105 2,078 2,323 1,413 673 644
Transfers 232,613 136,068 460,056 155,495 84,763 127,636
----------- ---------- ---------- ---------- ---------- ----------
Total deductions 3,239,323 766,117 1,192,601 463,964 298,102 487,085
----------- ---------- ---------- ---------- ---------- ----------
Interfund transfers (4,850,716) 1,110,412 (944,388) 1,577,108 56,304 599,025
----------- ---------- ---------- ---------- ---------- ----------
Increase in net assets 7,896,817 4,288,509 1,258,901 4,078,852 944,937 1,857,589
Net assets available for plan
benefits, end of year 12,427,960 5,454,189 7,364,110 3,205,091 1,978,807 2,053,270
----------- ---------- ---------- ---------- ---------- ----------
Net assets available for plan
benefits, end of year $20,324,777 $9,742,698 $8,623,011 $7,283,943 $2,923,744 $3,910,859
=========== ========== ========== ========== ========== ==========
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Blue Chip Loan
Fund Fund Total
Additions to net assets
attributable to:
Investment income:
Net appreciation of
investments $ 569,649 $ 4,772,686
Interest $ 249,919 1,613,198
Dividends 215,000 1,412,484
---------- ---------- -----------
784,649 249,919 7,798,368
---------- ---------- -----------
Contributions and deferrals:
Employee deferrals 995,486 36,713 18,694,367
Employer contributions 336,432 5,135,516
Transfers 120,755 120,755
---------- ---------- -----------
1,331,918 157,468 23,950,638
---------- ---------- -----------
Total additions 2,116,567 407,387 31,749,006
---------- ---------- -----------
Deductions from net assets
attributable to:
Distributions to participants 261,871 462,922 5,963,118
Administrative expenses 761 12,997
Transfers 92,025 1,288,656
---------- ---------- -----------
Total deductions 354,657 462,922 7,264,771
---------- ---------- -----------
Interfund transfers 496,619 1,955,636 --
---------- ---------- -----------
Increase in net assets 2,258,529 1,900,101 24,484,235
Net assets available for plan
benefits, beginning of year 2,340,883 2,710,424 37,534,734
---------- ---------- -----------
Net assets available for plan
benefits, end of year $4,599,412 $4,610,525 $62,018,969
========== ========== ===========
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J. Master Trust:
All plan investments are included under the Master Trust. At December
31, 1997, assets of the Plan represented 1.8% of the total assets under the
Master Trust. This has increased from 1.3% at December 31, 1996. The following
is a summary of net assets available for plan benefits by fund under the Master
Trust as of December 31, 1997:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan Blue Chip
Fund Fund Stock Fund Fund 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 Balance Fund $117,556,481
Fidelity Magellan Fund $91,863,155
Fidelity Blue Chip Fund $136,586,123
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 91,863,155 136,586,123
------------ ------------ ------------ ------------ ------------ ----------- ------------
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 91,863,155 136,586,123
------------ ------------ ------------ ------------ ------------ ----------- -----------
Liabilities:
Payables 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 $136,586,123
============ ============ ============ ============ ============ =========== ============
Percentage of Master Trust that
are plan assets of the Raytheon
Employee Savings and Investment
Plan 2.1% 1.2% 1.1% 1.5% 2.5% 4.3% 3.4%
*Represents more than 5% of net assets available for plan benefits.
N/A: The Templeton Foreign I Fund, Investment Grade Bond Fund, and
Retirement Money Market Fund are not available for the Raytheon
Employee Savings and Investment Plan.
15
Templeton Investment Retirement
Foreign I Grade Money Loan
Fund Bond Fund Market Fund 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
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 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 5,471,176 1,548,125 16,201,185 166,395,767 3,523,214,698
---------- ---------- ----------- ------------ --------------
Liabilities:
Payables 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 $5,471,176 $1,548,125 $16,201,185 $166,395,767 $3,514,193,034
========== ========== =========== ============ ==============
Percentage of Master Trust that are N/A N/A N/A 2.8% 1.8%
plan assets of the Raytheon Employee
Savings and Investment Plan
*Represents more than 5% of net assets available for plan benefits
N/A: The Templeton Foreign I Fund, Investment Grade Bond Fund, and
Retirement Money Market Fund are not available for the Raytheon
Employee Savings and Investment Plan.
16
I. Master Trust, continued:
The following is a summary of net assets available for plan benefits
by fund under the Master Trust as of December 31, 1996:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Assets:
Investments:
At contract value:
Bankers Trust* $339,670,440
Prudential Insurance
Company of America* 210,594,065
Metropolitan Life
Insurance Company* 350,310,646
At fair value:
Fidelity Equity
Income Fund * $578,166,630
Raytheon Company
Common Stock* $671,136,043
BT Pyramid Equity
Index Fund* $307,555,916
Fidelity Balanced Fund $83,265,065
Fidelity Magellan Fund $50,454,961
Fidelity Blue Chip Fund
Loans receivable from
participants*
------------ ------------ ------------ ------------ ----------- -----------
Total investments 900,575,151 578,166,630 671,136,043 307,555,916 83,265,065 50,454,961
------------ ------------ ------------ ------------ ----------- -----------
Receivables:
Accrued investment income 39,737 13,686
Cash and cash equivalents 14,633,134 10,145,818 3,541,437
------------ ------------ ------------ ------------ ----------- -----------
Total assets 915,208,285 578,166,630 681,321,598 311,111,039 83,265,065 50,454,961
------------ ------------ ------------ ------------ ----------- -----------
Liabilities:
Payables for outstanding
purchases 2,682,835
------------ ------------ ------------ ------------ ----------- -----------
Total liabilities 2,682,835
------------ ------------ ------------ ------------ ----------- -----------
Net assets available for
plan benefits $915,208,285 $578,166,630 $678,638,763 $311,111,039 $83,265,065 $50,454,961
============ ============ ============ ============ =========== ===========
Percentage of Master Trust that are 1.4% 0.9% 1.1% 1.0% 2.4% 4.1%
plan assets of the Raytheon Employee
Savings and Investment Plan
*Represents more than 5% of net assets available for plan benefits
17
Blue Chip Loan
Fund Fund Total
Assets:
Investments:
At contract value:
Bankers Trust* $339,670,440
Prudential Insurance
Company of America* 210,594,065
Metropolitan Life
Insurance Company* 350,310,646
At fair value:
Fidelity Equity
Income Fund * 578,166,630
Raytheon Company
Common Stock* 671,136,043
BT Pyramid Equity
Index Fund* 307,555,916
Fidelity Balanced Fund 83,265,065
Fidelity Magellan Fund 50,454,961
Fidelity Blue Chip Fund $67,866,240 67,866,240
Loans receivable from
participants* $144,824,714 144,824,714
----------- ------------ --------------
Total investments 67,866,240 144,824,714 2,803,844,720
----------- ------------ --------------
Receivables:
Accrued investment income 53,423
Cash and cash equivalents 28,320,389
----------- ------------ --------------
Total assets 67,866,240 144,824,714 2,832,218,532
----------- ------------ --------------
Liabilities:
Payables for outstanding
purchases 2,682,835
----------- ------------ --------------
Total liabilities 2,682,835
----------- ------------ --------------
Net assets available for
plan benefits $67,866,240 $144,824,714 $2,829,535,697
=========== ============ ==============
Percentage of Master Trust that are 3.4% 1.9% 1.3%
plan assets of the Raytheon Employees
Savings and Investment Plan
*Represents more than 5% of net assets available for plan benefits
17
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:
Fixed Raytheon
Income Common Stock Balanced Magellan Blue Chip
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
=========== ============ =========== ============ =========== =========== ===========
17
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
========= ======= ======== =========== ============