1
EXHIBIT 99.4
RAYTHEON SAVINGS AND INVESTMENT PLAN
FOR PUERTO RICO BASED EMPLOYEES
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 Catalytic, Inc.:
We have audited the accompanying statements of net assets available
for plan benefits of the Raytheon Savings and Investment Plan for Puerto Rico
Based Employees (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 SAVINGS AND INVESTMENT PLAN
FOR PUERTO RICO BASED EMPLOYEES
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 I) $ 77,879 $ 45,344
At fair value (Notes B, F and I) 700,111 334,722
-------- --------
777,990 380,066
-------- --------
Receivables:
Accrued investment income and other receivables 1,775 275
Cash and cash equivalents 5,598 3,444
-------- --------
Total assets 785,363 383,785
-------- --------
Liabilities:
Payable for security purchases 1,723 571
Accrued expenses and other payables 696 273
-------- --------
Total liabilities 2,419 844
-------- --------
Net assets available for plan benefits $782,944 $382,941
======== ========
The accompanying notes are an integral part of the financial statements.
3
RAYTHEON SAVINGS AND INVESTMENT PLAN
FOR PUERTO RICO BASED EMPLOYEES
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 I):
Net appreciation of investments $ 63,424
Interest 7,980
Dividends 19,357
--------
90,761
--------
Contributions and deferrals:
Employee deferrals 215,430
Employer contributions 73,622
Transfers (Note H) 50,664
--------
339,716
--------
Total additions 430,477
--------
Deductions from net assets attributable to:
Distributions to participants 25,812
Administrative expenses 132
Transfers (Note H) 4,530
--------
Total deductions 30,474
--------
Increase in net assets 400,003
Net assets available for plan benefits,
beginning of year 382,941
--------
Net assets available for plan benefits,
end of year $782,944
========
The accompanying notes are an integral part of the financial statements.
4
A. Description of Plan:
General
The following description of the Raytheon Savings and Investment Plan
for Puerto Rico Based Employees (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 covering certain
Puerto Rico based employees of Raytheon Catalytic, Inc., a wholly-owned
subsidiary 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 pay date 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, effective as of January 1, 1995, is intended to
comply with all the requirements for a "qualified profit sharing plan" under the
Revenue Code of Puerto Rico (the "Code"). The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).
All of 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 15% of their
salaries. The Company contributes amounts equal to 50% of each participant's
deferral, up to a maximum of 3% 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 subject to the Code 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, the Company's 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 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 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 one-half of the participant's account balance. 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.
6
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.
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.
7
C. Tax Status:
The Plan obtained its latest determination letter in August 1996 in
which the Treasury department of the Commonwealth of Puerto Rico stated that the
Plan, as submitted, was in compliance with the applicable requirements of the
Puerto Rico Income Tax Act of 1954, as amended. Since receiving the
determination letter, the plan has been amended. The Plan administrator and the
Plan's legal counsel believe that the Plan is designed and being operated in
compliance with the applicable requirements of the aforementioned Act.
Therefore, no provision for income taxes has been included in the Plan's
financial statements.
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.
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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 $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. Plan Amendment:
In 1996, the Plan was amended to require all withdrawals from the Plan
to be in cash.
H. Transfers:
Transfers include transfers of participant accounts, individually
and/or in groups, between the Raytheon Savings and Investment Plan for Puerto
Rico Based Employees 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 Raytheon Saving and Investment Plan
for Puerto Rico Based Employees and similar savings plans of other companies for
those participants who changed companies during the year.
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I. Fund Data:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1997:
Raytheon Blue
Income Equity Stock Index Balanced Magellan Chip Loan
Fund Fund Fund Fund Fund Fund Fund Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $29,087 $ 29,087
Prudential Insurance
Company of America 18,041 18,041
Metropolitan Life
Insurance Company 30,751 30,751
At fair value:
Fidelity Equity Income* $214,116 214,116
Raytheon Company Common Stock* $202,655 202,655
BT Pyramid Equity Index Fund* $118,530 118,530
Fidelity Balanced Fund $32,784 32,784
Fidelity Magellan Fund* $40,215 40,215
Fidelity Blue Chip Fund $35,416 35,416
Loans receivable from
participants* $56,395 56,395
------- -------- -------- -------- ------- ------- ------- ------- --------
Total investments 77,879 214,116 202,655 118,530 32,784 40,215 35,416 56,395 777,990
------- -------- -------- -------- ------- ------- ------- ------- --------
Receivables:
Accrued investment income
and other receivables 1,491 284 1,775
Cash and cash equivalents 767 3,667 1,164 5,598
------- -------- -------- -------- ------- ------- ------- ------- --------
Total assets 78,646 214,116 207,813 119,978 32,784 40,215 35,416 56,395 785,363
------- -------- -------- -------- ------- ------- ------- ------- --------
Liabilities:
Payable for security purchases 1,723 1,723
Accrued expenses and other
payables 402 294 696
------- -------- -------- -------- ------- ------- ------- ------- --------
Total liabilities 2,125 294 2,419
------- -------- -------- -------- ------- ------- ------- ------- --------
Net assets available for
plan benefits $78,646 $214,116 $205,688 $119,684 $32,784 $40,215 $35,416 $56,395 $782,944
======= ======== ======== ======== ======= ======= ======= ======= ========
*Represents more than 5% of net assets available for plan benefits
10
I. Fund Data, continued:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1996: Raytheon Blue
Income Equity Stock Index Balanced Magellan Chip Loan
Fund Fund Fund Fund Fund Fund Fund Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $17,103 $ 17,103
Prudential Insurance
Company of America 10,603 10,603
Metropolitan Life
Insurance Company 17,638 17,638
At fair value:
Fidelity Equity Income* $ 85,935 85,935
Raytheon Company Common Stock* $142,804 142,804
BT Pyramid Equity Index Fund* $ 47,618 47,618
Fidelity Balanced Fund $ 8,896 8,896
Fidelity Magellan Fund* $ 9,640 9,640
Fidelity Blue Chip Fund $ 5,996 5,996
Loans receivable from
participants* $33,833 33,833
------- -------- -------- -------- ------- ------- ------- ------- --------
Total investments 45,344 85,935 142,804 47,618 8,896 9,640 5,996 33,833 380,066
------- -------- -------- -------- ------- ------- ------- ------- --------
Receivables:
Accrued investment income
and other receivables 210 65 275
Cash and cash equivalents 737 2,159 548 3,444
------- -------- -------- -------- ------- ------- ------- ------- --------
Total assets 46,081 85,935 145,173 48,231 8,896 9,640 5,996 33,833 383,785
------- -------- -------- -------- ------- ------- ------- ------- --------
Liabilities:
Payable for security purchases 571 571
Accrued expenses and other
payables 199 74 273
------- -------- -------- -------- ------- ------- ------- ------- --------
Total liabilities 770 74 844
------- -------- -------- -------- ------- ------- ------- ------- --------
Net assets available for
plan benefits $46,081 $ 85,935 $144,403 $ 48,157 $ 8,896 $ 9,640 $ 5,996 $33,833 $382,941
======= ======== ======== ======== ======= ======= ======= ======= ========
*Represents more than 5% of net assets available for plan benefits
11
I. 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 Blue Chip Loan
Fund Fund Stock Fund Fund Fund Fund Fund Fund Total
Additions to net assets
attributable to:
Investment income:
Net appreciation of investments $ 24,283 $ 9,108 $ 24,294 $ 507 $ 2,851 $ 2,381 $ 63,424
Interest $ 5,711 186 78 $ 2,005 7,980
Dividends 10,093 3,021 2,714 2,203 1,326 19,357
------- -------- ------- ------- ------- ------- ------- ------- --------
5,711 34,376 12,315 24,372 3,221 5,054 3,707 2,005 90,761
------- -------- ------- ------- ------- ------- ------- ------- --------
Contributions and deferrals:
Employee deferrals 25,253 41,088 63,606 30,948 14,395 18,826 21,314 215,430
Employer contributions 14,351 13,052 22,235 11,330 1,926 5,992 4,736 73,622
Transfers 8,590 10,154 4,805 2,245 $24,870 50,664
------- -------- ------- ------- ------- ------- ------- ------- --------
39,604 62,730 95,995 42,278 21,126 27,063 26,050 24,870 339,716
------- -------- ------- ------- ------- ------- ------- ------- --------
Total additions 45,315 97,106 108,310 66,650 24,347 32,117 29,757 26,875 430,477
------- -------- ------- ------- ------- ------- ------- ------- --------
Deductions from net assets
attributable to:
Distributions to participants 8,441 931 4,135 200 (583) 688 12,000 25,812
Administrative expenses 16 35 46 22 4 5 4 132
Transfers 683 3,847 4,530
------- -------- ------- ------- ------- ------- ------- ------- --------
Total deductions 9,140 966 4,181 4,069 (579) 693 4 12,000 30,474
Interfund transfers (3,610) 32,041 (42,844) 8,946 (1,038) (849) (333) 7,687 --
Increase in net assets 32,565 128,181 61,285 71,527 23,888 30,575 29,420 22,562 400,003
Net assets available for plan
benefits, beginning of year 46,081 85,935 144,403 48,157 8,896 9,640 5,996 33,833 382,941
Net assets available for plan
benefits, end of year $78,646 $214,116 $205,688 $119,684 $32,784 $40,215 $35,416 $56,395 $782,944
======= ======== ======== ======== ======= ======= ======= ======= ========
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J. Master Trust:
All plan investments are included under the Master Trust. At December
31, 1997 and 1996, assets of the Plan represented less than 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:
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
Common Stock* $745,980,294
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
Fidelity Investment
Grade Bond Fund
Fidelity Retirement
Money Market Fund
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
Savings and Investment Plan for
Puerto Rico Based Employees
*Represents more than 5% of net assets available for plan benefits
^Represents less than 1% of plan assets under the Master Trust
N/A: The Templeton Foreign I Fund, Investment Grade Bond Fund, and
Retirement Money Market Fund are not available for the Raytheon
Savings and Investment Plan for Puerto Rico Based Employees.
13
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 ^ ^
plan assets of the Raytheon Savings
and Investment Plan for Puerto Rico
Based Employees
*Represents more than 5% of net assets available for plan benefits
^Represents less than 1% of plan assets under the Master Trust
N/A: The Templeton Foreign I Fund, Investment Grade Bond Fund, and
Retirement Money Market Fund are not available for the Raytheon
Savings and Investment Plan for Puerto Rico Based Employees.
14
J. 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 ^ ^ ^ ^ ^ ^
plan assets of the Raytheon Savings
and Investment Plan for Puerto Rico
Based Employees
*Represents more than 5% of net assets available for plan benefits
^Represents less than 1% of plan assets under the Master Trust
15
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 Balance 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 ^ ^ ^
plan assets of the Raytheon Savings
and Investment Plan for Puerto Rico
Based Employees
*Represents more than 5% of net assets available for plan benefits
^Represents less than 1% of plan assets under the Master Trust
16
J. 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
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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
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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
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Total investment income/(loss) $(276,679) $58,918 $266,835 $10,848,204 $456,515,389
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