1
EXHIBIT 99.8
RAYTHEON CALIFORNIA HOURLY SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS
TO ACCOMPANY 1998 FORM 5500
ANNUAL REPORT OF EMPLOYEE BENEFIT PLAN
UNDER ERISA OF 1974
FOR THE YEAR ENDED DECEMBER 31, 1998
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, the
Plan administrator must file detailed financial information, including the
supplemental schedules, separately with the Department of Labor.
2
Report of Independent Accountants
To the Participants and Administrator of
the Raytheon California Hourly Savings and Investment Plan:
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
benefits of the Raytheon California Hourly Savings and Investment Plan (the
"Plan") at December 31, 1998 and 1997, and the changes in net assets available
for benefits for the year ended December 31, 1998 in conformity with generally
accepted accounting principles. 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 of these statements in accordance with generally accepted auditing
standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
As discussed in Notes A and H to the financial statements, the Board of
Directors of Raytheon Company voted on December 16, 1998, to merge the Plan into
the Raytheon Savings and Investment Plan.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 4, 1999
3
RAYTHEON CALIFORNIA HOURLY SAVINGS AND INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
as of December 31, 1998 and 1997
1998 1997
Assets:
Master trust investments:
At contract value (Notes B, E and I) $13,156,095 $ 9,712
At fair value (Notes B, F and I) 45,166,735 123,623
----------- --------
58,322,830 133,335
----------- --------
Receivables:
Accrued investment income
and other receivables 46,484 367
Cash and cash equivalents 1,462,127 1,025
----------- --------
Total assets 59,831,441 134,727
----------- --------
Liabilities:
Payable for outstanding purchases 5,897 405
Accrued expenses and other payables 6,633 112
Transfer payables (Note H) 59,818,911
----------- --------
Total liabilities 59,831,441 517
----------- --------
Net assets available for plan benefits $ - $134,210
=========== ========
The accompanying notes are an integral part of the financial statements.
4
RAYTHEON CALIFORNIA HOURLY SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
for the year ended December 31, 1998
Additions to net assets attributable to:
Investment income (Notes B, E and I):
Net appreciation of investments $ 2,660,598
Interest & Dividends 2,695,417
-----------
5,356,015
Contributions and deferrals:
Employee deferrals 4,746,859
Employer contributions 2,251,640
Transfers (Note G) 53,863,009
-----------
60,861,508
Total additions 66,217,523
-----------
Deductions from net assets attributable to:
Distributions to participants 6,300,175
Administrative expenses 6,092
Transfers (Note G and H) 60,045,466
-----------
Total deductions 66,351,733
-----------
Decrease in net assets (134,210)
Net assets, beginning of year 134,210
-----------
Net assets, end of year $ 0
===========
The accompanying notes are an integral part of the financial statements.
5
RAYTHEON CALIFORNIA HOURLY SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
A. Description of Plan:
General
As more fully described in Note H, the Raytheon California Hourly Savings and
Investment Plan (the "Plan") ceased to exist as of December 31, 1998 and
effective January 1, 1999, the Plan was merged into the Raytheon Savings and
Investment Plan (RAYSIP). The following description of the Plan provides only
general information that is applicable through December 31, 1998. Participants
should refer to the plan document for a complete description of the Plan's
provisions.
The Plan, which was established on December 18, 1997, is a defined contribution
plan covering certain employees of Raytheon Company (the "Company"). Effective
December 18, 1997, General Motors Corporation employees assumed in connection
with the merger of the defense business of Hughes Electronics Corporation with
the Company (hereafter referred to as the "Hughes transaction"), that
participated in the Hughes California Hourly Employees' Thrift and Savings Plan,
became eligible to participate in the Plan. Participants had the option to
rollover amounts accumulated in plans sponsored by General Motors Corporation to
the Plan. The option to make a rollover election extended until December 1,
1998. 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 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 combined with the investments of other similar
defined contribution plans of Raytheon Company into the Raytheon Company Master
Trust for Defined Contribution Plans ("Master Trust"). 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.
6
Contributions and Deferrals
Eligible employees are allowed to defer to the Plan up to 12% of their salaries.
The Company contributes amounts equal to 100% of each participant's deferral, up
to a maximum of 4% of the participant's salary. The contributions are invested
in Raytheon Company common stock for two full plan years following the plan year
for which the contributions are made, and are then allocated to participants'
accounts. For 1998, the annual employee deferral for a participant cannot exceed
$10,000. 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) the Fidelity Equity Income Fund which invests in
shares of a mutual fund consisting primarily of income-producing equity
securities, (c) a Raytheon Common Stock Fund which invests in shares of Raytheon
Company 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) the Fidelity Balanced Fund which invests in shares of a mutual fund
consisting primarily of equity securities, bonds and money market instruments,
(f) the Fidelity Magellan Fund, a growth fund which invests primarily in
equities of companies of all types and sizes, and (g) the Fidelity Blue Chip
Fund, a growth fund which invests primarily in equities of well known and
established companies. Amounts held in the RTN-A Wasting Fund and GMH Wasting
Fund are shares of Raytheon Company Class A common stock or General Motors Class
H common stock, respectively, that were transferred into the Plan as a result of
the Hughes transaction. These options are not open for additional contributions
and will only be available through December 31, 2002.
Dividends and distributions from investments of the Fidelity Equity Income Fund,
the Raytheon Common Stock Fund, the Stock Index Fund, the Fidelity Balanced
Fund, the Fidelity Magellan Fund, the Fidelity Blue Chip Fund, the RTN-A Wasting
Fund and the GHM Wasting Fund are reinvested in their respective funds; stock
dividends, stock splits and similar changes are also reflected in the funds.
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 completion of five years of service
or upon three years of 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.
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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 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
contributions and deferrals plus interest earned on the underlying investments
at contracted rates. Contract value approximates 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. Participant loans are valued at cost, which approximates fair value.
8
Security transactions are recorded on the 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. Investment income
includes both dividend and interest income.
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 change 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 Internal Revenue Service has determined and informed the Company by letter
dated February 1999 that the Plan, as adopted on December 18, 1997, and related
Trust are designed in accordance with applicable sections of the Code. The Plan
has been amended since applying for 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 applicable requirements of the
Code. Therefore, no provision for income taxes has been included in the Plan's
financial statements.
9
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, amounts in participants' accounts will be distributed in a single
lump sum; if the participant does not consent to an immediate distribution, the
amount can be transferred to another defined contribution plan sponsored by the
Company.
E. Investment Contracts:
The Plan invests in collateralized fixed income investment portfolios which are
managed by insurance companies and investment management firms. 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, 1998:
Banker's Trust (WBS 92-485) 6.85% 6.85%
Metropolitan Life Insurance
Company (GIC GA-12908) 6.58% 6.58
Metropolitan Life Insurance
Company (GIC GA-13659) 6.10% 6.10%
Prudential Asset Management
Company (GIC 917163-001) 6.75% 6.75%
Connecticut General (GIC 0025174) 5.58% 5.58%
Fidelity IPL (633-GCDC) 5.62% 5.62%
Monumental Life Insurance
Company (GIC BDA00463FR-00) 7.84% 7.84%
For the year ended December 31, 1997:
Banker's 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:
The Plan's trustee is Fidelity Management Trust Company (the "Trustee"). The
Trustee holds the funds for the Plan and is responsible for managing the Plan's
investment assets, executing all investment transactions, recording approved
transactions, and, therefore these transactions qualify as party-in-interest.
In accordance with the provisions of the Plan, the Trustee acts as the Plan's
agent for purchases and sales of shares of Raytheon Company common stock. These
transactions are performed on a Master Trust level. For the Master Trust,
purchases amounted to $288,116,995 and sales amounted to $257,878,566 for the
year ended December 31, 1998.
10
G. Transfers:
Transfers include transfers of participant accounts, individually and/or in
groups, between the 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 Plan and similar savings plans of
other companies for those participants who changed companies during the year.
During the year, amounts rolled over by former employees of General Motors
Corporation who participated in the Hughes California Hourly Employees' Thrift
and Savings Plan and who became eligible to participate in the Plan totaled
$42,657,803.
H. Transfer Payables:
As part of an overall effort to minimize plan design differences and increase
administrative efficiencies, the Board of Directors of Raytheon Company voted on
December 16, 1998 to merge the participants and their account balances into the
RAYSIP. The Plan ceased to exist on December 31, 1998 and effective January 1,
1999 the plan provisions of the RAYSIP govern. The transfer payable amount
represents a complete transfer of assets to the RAYSIP.
11
I. Fund Data:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1998:
Participant Directed
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan Blue Chip
Fund Fund Stock Fund Fund Fund Fund Fund
Assets:
Master trust investments:
At contract value:
Bankers Trust $4,631,562
Prudential Insurance
Company of America 2,319,301
Metropolitan Life
Insurance Company 5,821,490
Fidelity 252,526
Connecticut General 63,989
Monumental Life
Insurance Company 67,227
At fair value:
Fidelity Equity
Income Fund $17,602,036
Raytheon Company
Common Stock Fund $606,765
BT Pyramid Equity
Index Fund $1,294,913
Fidelity Balanced
Fund $5,784,869
Fidelity Magellan
Fund $3,839,079
Fidelity Blue
Chip Fund $3,778,025
Raytheon Class A
Wasting Stock Fund
Raytheon GMH
Wasting Stock Fund
Loans receivable
from participants
----------- ----------- -------- ---------- ---------- ---------- ----------
Total investments 13,156,095 17,602,036 606,765 1,294,913 5,784,869 3,839,079 3,778,025
----------- ----------- -------- ---------- ---------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 3,604 2,733
Cash and cash equivalents 1,213,229 8,351 5,784
----------- ----------- -------- ---------- ---------- ---------- ----------
Total assets 14,369,324 17,602,036 618,720 1,303,430 5,784,869 3,839,079 3,778,025
----------- ----------- -------- ---------- ---------- ---------- ----------
Liabilities:
Payable for outstanding
purchases 1,466
Accrued expenses and other
payables 1,407 1,467
Transfer payables 14,369,324 17,602,036 615,847 1,301,963 5,784,869 3,839,079 3,778,025
----------- ----------- -------- ---------- ---------- ---------- ----------
Total liabilities 14,369,324 17,602,036 618,720 1,303,430 5,784,869 3,839,079 3,778,025
----------- ----------- -------- ----------- ---------- ---------- ----------
Net assets available for
plan benefits $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
=========== =========== ======== ========== ========== ========== ==========
12
Participant Directed Non-Participant
Directed
RTN.A GMH Raytheon
Wasting Wasting Loan Common
Fund Fund Fund Stock Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $ 4,631,562
Prudential Insurance
Company of America 2,319,301
Metropolitan Life
Insurance Company 5,821,490
Fidelity 252,526
Connecticut General 63,989
Monumental Life
Insurance Company 67,227
At fair value:
Fidelity Equity
Income Fund 17,602,036
Raytheon Company
Common Stock Fund $1,833,397 2,440,162
BT Pyramid Equity
Index Fund 1,294,913
Fidelity Balanced
Fund 5,784,869
Fidelity Magellan
Fund 3,839,079
Fidelity Blue
Chip Fund 3,778,025
Raytheon Class A
Wasting Stock Fund $2,794,160 2,794,160
Raytheon GMH
Wasting Stock Fund $3,972,028 3,972,028
Loans receivable
from participants $3,661,463 3,661,463
---------- ---------- ---------- ---------- -----------
Total investments 2,794,160 3,972,028 3,661,463 1,833,397 58,322,830
---------- ---------- ---------- ---------- -----------
Receivables:
Accrued investment income
and other receivables 28,714 543 10,890 46,484
Cash and cash equivalents 83,743 125,788 25,232 1,462,127
---------- ---------- ---------- ---------- -----------
Total assets 2,906,617 4,098,359 3,661,463 1,869,519 59,831,441
---------- ---------- ---------- ---------- -----------
Liabilities:
Payable for outstanding
purchases 4,431 5,897
Accrued expenses and
other payables 1,004 (1,495) 4,250 6,633
Transfer payables 2,905,613 4,099,854 3,661,463 1,860,838 59,818,911
---------- ---------- ---------- ---------- -----------
Total liabilities 2,906,617 4,098,359 3,661,463 1,869,519 59,831,441
---------- ---------- ---------- ---------- -----------
Net assets available for
plan benefits $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ========== ========== ===========
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I. Fund Data, Continued:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1997:
Participant Directed
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 $3,627
Prudential Insurance
Company of America 2,250
Metropolitan Life
Insurance Company 3,835
At fair value:
Fidelity Equity Income Fund* $21,159
Raytheon Company Common Stock Fund* $6,484
BT Pyramid Equity Index Fund* $6,823
Fidelity Balanced Fund* $9,931
Fidelity Magellan Fund* $23,519
Fidelity Blue Chip Fund*
------ -------- ------ ------ ------ -------
Total investments 9,712 21,159 6,484 6,823 9,931 23,519
------ -------- ------ ------ ------ -------
Receivables:
Accrued investment income
and other receivables 48 16
Cash and cash equivalents 95 117 67
------ ------- ------ ------ ------ -------
Total assets 9,807 21,159 6,649 6,906 9,931 23,519
------ ------- ------ ------ ------ -------
Liabilities:
Payable for outstanding purchases 55
Accrued expenses and other
payables 13 17
------ ------- ------ ------ ------ ------
Total liabilities - - 68 17 - -
------ ------- ------ ------ ------ ------
Net assets available for plan
benefits $9,807 $21,159 $6,581 $6,889 $9,931 $23,519
====== ======= ====== ====== ====== =======
*Represents more than 5% of net assets available for plan benefits
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Participant Non-Participant
Directed Directed
Raytheon
Blue Chip Common Stock
Fund Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $ 3,627
Prudential Insurance
Company of America 2,250
Metropolitan Life
Insurance Company 3,835
At fair value:
Fidelity Equity Income Fund* 21,159
Raytheon Company Common Stock Fund* $41,198 47,682
BT Pyramid Equity Index Fund* 6,823
Fidelity Balanced Fund* 9,931
Fidelity Magellan Fund* 23,519
Fidelity Blue Chip Fund* $14,509 14,509
------- ------- --------
Total investments 14,509 41,198 133,335
------- ------- --------
Receivables:
Accrued investment income
and other receivables 303 367
Cash and cash equivalents 746 1,025
------- ------- --------
Total assets 14,509 42,247 134,727
------- ------- --------
Liabilities:
Payable for outstanding purchases 350 405
Accrued expenses and other
payables 82 112
------- ------ --------
Total liabilities - 432 517
------- ------ --------
Net assets available for plan
benefits $14,509 $41,815 $134,210
======= ======= ========
*Represents more than 5% of net assets available for plan benefits.
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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, 1998:
Participant Directed
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan Blue Chip
Fund Fund Stock Fund Fund Fund Fund Fund
Additions to net assets
attributable to:
Investment income:
Net appreciation
(depreciation) of
investments $ 487 $ 279,100 $ 2,444 $ 155,645 $ 211,808 $ 518,691 $ 411,361
Interest & Dividends 685,891 1,070,260 527,332 119,117 94,767
---------- ---------- -------- ---------- ---------- ---------- ----------
686,378 1,349,360 2,444 155,645 739,140 637,808 506,128
---------- ---------- -------- ---------- ---------- ---------- ----------
Contributions and deferrals:
Employee deferrals 636,436 1,171,220 359,135 372,864 545,647 982,845 678,712
Employer contributions
Transfers 13,971,622 20,431,686 190,254 409,087 5,181,006 1,309,105 915,486
----------- ---------- -------- ---------- ---------- ---------- ----------
14,608,058 21,602,906 549,389 781,951 5,726,653 2,291,950 1,594,198
----------- ---------- -------- ---------- ---------- ---------- ----------
Total additions 15,294,436 22,952,266 551,833 937,596 6,465,793 2,929,758 2,100,326
----------- ---------- -------- ---------- ---------- ---------- ----------
Deductions from net assets
attributable to:
Distributions to
participants 1,741,442 1,891,513 40,616 120,674 581,216 288,342 156,975
Administrative expenses 1,513 1,903 30 42 583 137 120
Transfers 10,341
Transfers plan mergers 14,369,324 17,602,036 615,847 1,301,963 5,784,869 3,839,079 3,778,025
----------- ---------- -------- ---------- ---------- ---------- ----------
Total deductions 16,112,279 19,495,452 666,834 1,422,679 6,366,668 4,127,558 3,935,120
----------- ---------- -------- ---------- ---------- ---------- ----------
Interfund transfers 808,036 (3,477,973) 108,420 478,194 (109,056) 1,174,281 1,820,285
---------- ---------- -------- ---------- ---------- ---------- ----------
Decrease in net assets (9,807) (21,159) (6,581) (6,889) (9,931) (23,519) (14,509)
Net assets, beginning
of year 9,807 21,159 6,581 6,889 9,931 23,519 14,509
---------- ---------- -------- ---------- ---------- ---------- ----------
Net assets, end of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ======== ========== ========== ========== ==========
16
Participant Directed Non-Participant
Directed
RTN.A GMH Raytheon
Wasting Wasting Loan Common
Fund Fund Fund Stock Fund Total
Additions to net assets
attributable to:
Investment income:
Net appreciation
(depreciation) of
investments $ 45,904 $ 1,049,401 $ (14,243) $ 2,660,598
Interest & Dividends $ 198,050 2,695,417
---------- ----------- ---------- ---------- -----------
45,904 1,049,401 198,050 (14,243) 5,356,015
---------- ----------- ---------- ---------- -----------
Contributions and deferrals:
Employee deferrals 4,746,859
Employer contributions 2,251,640 2,251,640
Transfers 3,913,209 4,542,582 2,998,972 53,863,009
---------- ---------- ---------- ---------- -----------
3,913,209 4,542,582 2,998,972 2,251,640 60,861,508
---------- ---------- ---------- ---------- -----------
Total additions 3,959,113 5,591,983 3,197,022 2,237,397 66,217,523
---------- ---------- ---------- ---------- -----------
Deductions from net assets
attributable to:
Distributions to
participants 433,298 628,930 222,868 194,301 6,300,175
Administrative expenses 646 1,063 55 6,092
Transfers 45,461 58,878 111,875 226,555
Transfers plan mergers 2,905,613 4,099,854 3,661,463 1,860,838 59,818,911
---------- ---------- ---------- ---------- -----------
Total deductions 3,385,018 4,788,725 3,884,331 2,167,069 66,351,733
---------- ---------- ---------- ---------- -----------
Interfund transfers (574,095) (803,258) 687,309 (112,143) -
---------- ---------- ---------- ---------- -----------
Decrease in net assets - - - (41,815) (134,210)
Net assets, beginning
of year - - - 41,815 134,210
---------- ---------- ---------- ---------- -----------
Net assets, end of year $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ========== ========== ===========
17
J. Master Trust:
All plan investments are included under the Master Trust. At December 31,
1998, assets of the Plan represented 0% of the total assets under the Master
Trust. This has decreased from .004% at December 31, 1997.
The following is a summary of net assets available for plan benefits by
fund under the Master Trust as of December 31, 1998:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Assets:
Investments:
At contract value:
Bankers Trust* $ 473,258,791
Prudential Life Insurance
Company of America 236,989,116
Metropolitan Life
Insurance Company* 594,847,154
Fidelity 25,803,449
Connecticut General 6,538,482
Monumental Life Insurance
Company 6,869,338
At fair value:
Fidelity Equity Income
Fund* $1,464,615,296
Raytheon Company Common
Stock Fund* $ 799,542,751
BT Pyramid Equity
Index Fund* $ 745,602,791
Fidelity Balanced Fund* $ 442,796,289
Fidelity Magellan Fund* $ 379,680,454
Fidelity Blue Chip Fund*
Templeton Foreign I Fund
Fidelity Investment Grade
Bond Fund
Fidelity Retirement
Money Market
Vanguard Winsor
Vanguard Wellesley
TRP Small Cap Stock
Raytheon Class A Wasting
Stock Fund
Raytheon GMH Wasting
Stock Fund
Loans receivable from
participants
-------------- -------------- -------------- -------------- -------------- --------------
Total investments 1,344,306,330 1,464,615,296 799,542,751 745,602,791 442,796,289 379,680,454
-------------- -------------- -------------- -------------- -------------- --------------
Receivables:
Employer contribution
Accrued investment income
and other receivables 4,748,948 1,573,604
Transfer receivables 580,261,670 762,142,416 440,085,027 216,741,687 312,377,329 236,688,803
Cash and cash equivalents 123,969,201 11,004,025 3,330,147
-------------- -------------- -------------- -------------- -------------- --------------
Total assets 2,048,537,201 2,226,757,712 1,255,380,751 967,248,229 755,173,618 616,369,257
-------------- -------------- -------------- -------------- -------------- --------------
Liabilities:
Payable for outstanding
purchases 1,932,125
Accrued expenses and
other payables 1,853,618 844,977
Transfer payables 580,261,670 762,142,416 440,085,027 216,741,687 312,377,329 236,688,803
-------------- -------------- -------------- -------------- -------------- --------------
Total liabilities 580,261,670 762,142,416 443,870,770 217,586,664 312,377,329 236,688,803
-------------- -------------- -------------- -------------- -------------- --------------
Net assets available for
plan benefits $1,468,275,531 $1,464,615,296 $ 811,509,981 $ 749,661,565 $ 442,796,289 $ 379,680,454
============== ============== ============== ============== ============== ==============
18
Templeton Investment Retirement Vanguard Vanguard
Blue Chip Foreign I Grade Money Winsor Wellesley
Fund Fund Bond Fund Market Fund Fund Fund
Assets:
Investments:
At contract value:
Bankers Trust*
Prudential Life Insurance
Company of America
Metropolitan Life
Insurance Company*
Fidelity
Connecticut General
Monumental Life Insurance
Company
At fair value:
Fidelity Equity Income
Fund*
Raytheon Company Common
Stock Fund*
BT Pyramid Equity
Index Fund*
Fidelity Balanced Fund*
Fidelity Magellan Fund*
Fidelity Blue Chip Fund* $ 391,787,509
Templeton Foreign I Fund $ 6,966,704
Fidelity Investment Grade
Bond Fund $ -
Fidelity Retirement
Money Market $ 13,202,524
Vanguard Winsor $ 41
Vanguard Wellesley $ 18
TRP Small Cap Stock
Raytheon Class A Wasting
Stock Fund
Raytheon GMH Wasting
Stock Fund
Loans receivable from
participants
-------------- -------------- -------------- ------------- ------------- --------------
Total investments 391,787,509 6,966,704 - 13,202,524 41 18
Receivables:
Employer contribution 3,595,261
Accrued investment income
and other receivables
Transfer receivables 191,269,141 6,966,652 16,715,590
Cash and cash equivalents
-------------- -------------- -------------- ------------- ------------- --------------
Total assets 583,056,650 13,933,356 - 33,513,375 41 18
-------------- -------------- -------------- ------------- ------------- --------------
Liabilities:
Payable for outstanding
purchases
Accrued expenses and
other payables
Transfer payables 191,269,141 6,966,652 16,715,590
-------------- -------------- -------------- ------------- ------------- --------------
Total liabilities 191,269,141 6,966,652 - 16,715,590 - -
-------------- -------------- -------------- ------------- ------------- --------------
Net assets available for
plan benefits $ 391,787,509 $ 6,966,704 $ - $ 16,797,785 $ 41 $ 18
============== ============== ============== ============== ============== ==============
19
TRP Small RTN.A GMH
Cap Stock Wasting Wasting Loan
Fund Fund Fund Fund Other(1) Total
Assets:
Investments:
At contract value:
Bankers Trust* $ 473,258,791
Prudential Life Insurance
Company of America 236,989,116
Metropolitan Life
Insurance Company* 594,847,154
Fidelity 25,803,449
Connecticut General 6,538,482
Monumental Life Insurance
Company 6,869,338
At fair value:
Fidelity Equity Income
Fund* 1,464,615,296
Raytheon Company Common
Stock Fund* 799,542,751
BT Pyramid Equity
Index Fund* 745,602,791
Fidelity Balanced Fund* 442,796,289
Fidelity Magellan Fund* 379,680,454
Fidelity Blue Chip Fund* 391,787,509
Templeton Foreign I Fund 6,966,704
Fidelity Investment Grade
Bond Fund -
Fidelity Retirement
Money Market 13,202,524
Vanguard Winsor 41
Vanguard Wellesley 18
TRP Small Cap Stock $ 348 348
Raytheon Class A Wasting
Stock Fund $ 116,129,149 116,129,149
Raytheon GMH Wasting
Stock Fund $ 172,859,819 172,859,819
Loans receivable from
participants $ 250,687,865 250,687,865
-------------- -------------- -------------- -------------- ------------- --------------
Total investments 348 116,129,149 172,859,819 250,687,865 - 6,128,177,888
-------------- -------------- -------------- -------------- ------------- --------------
Receivables:
Employer contribution 3,595,261
Accrued investment income
and other receivables 1,193,397 23,640 7,539,589
Transfer receivables 120,761,325 178,295,618 117,046,618 $ 855,826,675 4,035,178,551
Cash and cash equivalents 3,480,490 5,474,220 147,258,083
-------------- -------------- -------------- ------------- -------------- --------------
Total assets 348 241,564,361 356,653,297 367,734,483 855,826,675 10,321,749,372
-------------- -------------- -------------- ------------- -------------- --------------
Liabilities:
Payable for outstanding
purchases 1,932,125
Accrued expenses and
other payables 41,711 62,061 2,802,367
Transfer payables 120,761,325 178,295,618 117,046,618 3,179,351,876
-------------- -------------- -------------- ------------- -------------- --------------
Total liabilities - 120,803,036 178,357,679 117,046,618 - 3,184,086,368
-------------- -------------- -------------- ------------- -------------- --------------
Net assets available for
plan benefits $ 348 $120,761,325 $ 178,295,618 $ 250,687,865 $ 855,826,675 $7,137,663,004
============== ============== ============== ============== ============== ==============
Percentage of Master Trust that are Plan assets - 0.00%
*Represent more than 5% of net assets available for plan benefits
(1) Other represents Raytheon plans merging in from outside the Master Trust.
Note: Not all funds within the Master Trust are available options to
participants in the Plan.
20
RAYTHEON SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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, 1997:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Assets:
Investments:
At contract value:
Bankers Trust* $351,035,073
Prudential Life 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 Fund* $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
============ ============ ============ ============ ============ ===========
21
Templeton Investment Retirement
Blue Chip Foreign I Grade Money Loan
Fund Fund Bond Fund Market Fund Fund Total
Assets:
Investments:
At contract value:
Bankers Trust* $351,035,073
Prudential Life 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 Fund* 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 - 0.004%
*Represent more than 5% of net assets available for plan benefits
Note: Not all funds within the Master Trust are available options to
participants in the Plan.
22
RAYTHEON SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS, CONTINUED
J. Master Trust, Continued:
The following is a summary of investment income by fund under the Master Trust
for the year ended December 31, 1998:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Investment income:
Net appreciation
(depreciation) of assets $ 30,695 $ 49,019,748 $74,202,083 $149,571,006 $16,091,158 $62,195,801
Interest & Dividends 81,886,632 86,279,682 1,792 42,537,357 13,255,763
----------- ------------ ----------- ------------ ----------- -----------
Total investment
income/(loss) $81,917,327 $135,299,430 $74,203,875 $149,571,006 $58,628,515 $75,451,564
=========== ============ =========== ============ =========== ===========
23
Templeton Investment Retirement Vanguard Vanguard
Blue Chip Foreign I Grade Money Winsor Wellesley
Fund Fund Bond Fund Market Fund Fund Fund
Investment income:
Net appreciation
(depreciation) of assets $60,264,181 $(1,095,980) $ 17,635 $2,864,378 $1,379,950
Interest & Dividends 13,550,491 752,610 162,858 $ 349,740
----------- ----------- -------- ---------- ---------- ----------
Total investment
income/(loss) $73,814,672 $ (343,370) $180,493 $ 349,740 $2,864,378 $1,379,950
=========== =========== ======== ========== ========== ==========
24
TRP Small RTN.A GMH
Cap Stock Wasting Wasting Loan
Fund Fund Fund Fund Total
Investment income:
Net appreciation
(depreciation) of assets $ 15 $ (35,268) $44,604,025 $459,109,427
Interest & Dividends $15,334,403 254,111,328
----------- ---------- ----------- ----------- ------------
Total investment
income/(loss) $ 15 $ (35,268) $44,604,025 $15,334,403 $713,220,755
=========== ========== =========== =========== ============