1
EXHIBIT 99.9
RAYTHEON TUCSON BARGAINING 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.
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Report of Independent Accountants
To the Participants and Administrator of
the Raytheon Tucson Bargaining 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 Tucson Bargaining 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 Employee Savings and Investment Plan.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 4, 1999
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RAYTHEON TUCSON BARGAINING 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) $ 6,852,411 $ 4,511
At fair value (Notes B, F and I) 39,004,660 84,493
----------- -------
45,857,071 89,004
Receivables:
Accrued investment income and
other receivables 47,028 240
Cash and cash equivalents 893,087 657
----------- -------
Total assets 46,797,186 89,901
----------- -------
Liabilities:
Payable for outstanding purchases 5,252 260
Accrued expenses and other payables 8,858 76
Transfer payables (Note H) 46,783,076
----------- -------
Total liabilities 46,797,186 336
----------- -------
Net assets available for plan benefits $ - $89,565
=========== =======
The accompanying notes are an integral part of the financial statements.
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RAYTHEON TUCSON BARGAINING 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 $ 2,228,840
Interest & Dividends 1,982,313
-----------
4,211,153
Contributions and deferrals:
Employee deferrals 3,570,498
Employer contributions 1,671,909
Transfers (Note G) 39,889,430
-----------
45,131,837
Total additions 49,342,990
-----------
Deductions from net assets attributable to:
Distributions to participants 2,644,901
Administrative expenses 4,578
Transfers (Note G and H) 46,783,076
-----------
Total deductions 49,432,555
-----------
Decrease in net assets (89,565)
Net assets, beginning of year 89,565
-----------
Net assets, end of year $ -
===========
The accompanying notes are an integral part of the financial statements.
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RAYTHEON TUCSON BARGAINING SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
A. Description of Plan:
General
As more fully described in Note H, the Raytheon Tucson Bargaining 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 Employee
Savings and Investment Plan (RESIP). 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 was established on December 18, 1997. The Plan 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 Tucson Bargaining 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 the Company into the Raytheon Company Master Trust
for Defined Contribution Plans ("Master Trust"). The truste 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 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
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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 of primarily 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.
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.
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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.
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.
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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 17, 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.
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:
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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.
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 Tucson Bargaining Employees' Thrift
and Savings Plan and who became eligible to participate in the Plan totaled
$33,217,821.
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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
RESIP. The Plan ceased to exist on December 31, 1998 and effective January 1,
1999, the plan provisions of the RESIP govern. The transfer payable amount
represents a complete transfer of assets to the RESIP.
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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, 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 $2,412,371
Prudential Insurance
Company of America 1,208,018
Metropolitan Life
Insurance Company 3,032,149
Fidelity 131,529
Connecticut General 33,329
Monumental Life
Insurance Company 35,015
At fair value:
Fidelity Equity
Income Fund $15,405,128
Raytheon Company
Common Stock Fund $680,552
BT Pyramid Equity
Index Fund $982,271
Fidelity Balanced
Fund $3,878,790
Fidelity Magellan
Fund $3,145,397
Fidelity Blue
Chip Fund $2,357,467
Wasting Stock Fund
Raytheon GMH
Wasting Stock Fund
Loans receivable
from participants
---------- ----------- -------- -------- ---------- ---------- ----------
Total investments 6,852,411 15,405,128 680,552 982,271 3,878,790 3,145,397 2,357,467
---------- ----------- -------- -------- ---------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 4,042 2,074
Cash and cash equivalents 631,915 9,366 4,387
---------- ----------- -------- -------- ---------- ---------- ----------
Total assets 7,484,326 15,405,128 693,960 988,732 3,878,790 3,145,397 2,357,467
---------- ----------- -------- -------- ---------- ---------- ----------
Liabilities:
Payable for outstanding
purchases 1,644
Accrued expenses and other
payables 1,578 1,113
Transfer payables 7,484,326 15,405,128 690,738 987,619 3,878,790 3,145,397 2,357,467
---------- ----------- -------- -------- ---------- ---------- ----------
Total liabilities 7,484,326 15,405,128 693,960 988,732 3,878,790 3,145,397 2,357,467
---------- ---------- -------- -------- ---------- ---------- ----------
Net assets available for
plan benefits $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
========== =========== ======== ======== ========== ========== ==========
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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 $ 2,412,371
Prudential Insurance
Company of America 1,208,018
Metropolitan Life
Insurance Company 3,032,149
Fidelity 131,529
Connecticut General 33,329
Monumental Life
Insurance Company 35,015
At fair value:
Fidelity Equity
Income Fund 15,405,128
Raytheon Company
Common Stock Fund $1,492,857 2,173,409
BT Pyramid Equity
Index Fund 982,271
Fidelity Balanced
Fund 3,878,790
Fidelity Magellan
Fund 3,145,397
Fidelity Blue
Chip Fund 2,357,467
Raytheon Class A
Wasting Stock Fund $3,061,517 3,061,517
Raytheon GMH
Wasting Stock Fund $4,266,631 4,266,631
Loans receivable
from participants $3,734,050 3,734,050
---------- ---------- ---------- ---------- -----------
Total investments 3,061,517 4,266,631 3,734,050 1,492,857 45,857,071
---------- ---------- ---------- ---------- -----------
Receivables:
Accrued investment income
and other receivables 31,461 584 8,867 47,028
Cash and cash equivalents 91,756 135,118 20,545 893,087
---------- ---------- ---------- ---------- -----------
Total assets 3,184,734 4,402,333 3,734,050 1,522,269 46,797,186
---------- ---------- ---------- ---------- -----------
Liabilities:
Payable for outstanding
purchases 3,608 5,252
Accrued expenses and
other payables 1,100 1,606 3,461 8,858
Transfer payables 3,183,634 4,400,727 3,734,050 1,515,200 46,783,076
---------- ---------- ---------- ---------- -----------
Total liabilities 3,184,734 4,402,333 3,734,050 1,522,269 46,797,186
---------- ---------- ---------- ---------- -----------
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 $1,685
Prudential Insurance
Company of America 1,045
Metropolitan Life
Insurance Company 1,781
At fair value:
Fidelity Equity Income Fund* $18,557
Raytheon Company Common Stock* $3,075
BT Pyramid Equity Index Fund* $6,028
Fidelity Balanced Fund* $5,772
Fidelity Magellan Fund* $15,517
Fidelity Blue Chip Fund*
------ -------- ------ ------ ------ -------
Total investments 4,511 18,557 3,075 6,028 5,772 15,517
------ -------- ------ ------ ------ -------
Receivables:
Accrued investment income
and other receivables 23 14
Cash and cash equivalents 45 56 59
------ ------- ------ ------ ------ -------
Total assets 4,556 18,557 3,154 6,101 5,772 15,517
------ ------- ------ ------ ------ -------
Liabilities:
Payable for outstanding purchases 26
Accrued expenses and other
payables 6 15
------ ------- ------ ------ ------ ------
Total liabilities - - 32 15 - -
------ ------- ------ ------ ------ ------
Net assets available for plan
benefits $4,556 $18,557 $3,122 $6,086 $5,772 $15,517
====== ======= ====== ====== ====== =======
*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 $ 1,685
Prudential Insurance
Company of America 1,045
Metropolitan Life
Insurance Company 1,781
At fair value:
Fidelity Equity Income Fund* 18,557
Raytheon Company Common Stock* $27,479 30,554
BT Pyramid Equity Index Fund* 6,028
Fidelity Balanced Fund* 5,772
Fidelity Magellan Fund* 15,517
Fidelity Blue Chip Fund* $8,065 8,065
------ ------- -------
Total investments 8,065 27,479 89,004
------ ------- -------
Receivables:
Accrued investment income
and other receivables 203 240
Cash and cash equivalents 497 657
------ ------- -------
Total assets 8,065 28,179 89,901
------ ------- -------
Liabilities:
Payable for outstanding purchases 234 260
Accrued expenses and other
payables 55 76
------ ------ -------
Total liabilities - 289 336
------ ------ -------
Net assets available for plan
benefits $8,065 $27,890 $89,565
====== ======= =======
*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 $ 257 $ 145,741 $ 5,850 $115,620 $ 139,829 $ 343,355 $ 296,967
Interest & Dividends 367,313 883,995 365,461 100,830 73,114
---------- ---------- -------- -------- ---------- ---------- ----------
367,570 1,029,736 5,850 115,620 505,290 444,185 370,081
---------- ---------- -------- -------- ---------- ---------- ----------
Contributions and deferrals:
Employee deferrals 269,806 1,051,367 201,749 341,115 333,549 888,030 484,882
Employer contributions
Transfers 7,586,320 16,505,038 137,663 198,871 3,677,882 570,655 419,592
---------- ---------- -------- -------- ---------- ---------- ----------
7,856,126 17,556,405 339,412 539,986 4,011,431 1,458,685 904,474
---------- ---------- -------- -------- ---------- ---------- ----------
Total additions 8,223,696 18,586,141 345,262 655,606 4,516,721 1,902,870 1,274,555
---------- ---------- -------- -------- ---------- ---------- ----------
Deductions from net assets
attributable to:
Distributions to
participants 840,798 776,023 59,154 22,858 164,311 82,397 80,145
Administrative expenses 913 1,591 26 50 354 142 80
Transfers
Transfers plan mergers 7,484,326 15,405,128 690,738 987,619 3,878,790 3,145,397 2,357,467
---------- ---------- -------- ---------- ---------- ---------- ----------
Total deductions 8,326,037 16,182,742 749,918 1,010,527 4,043,455 3,227,936 2,437,692
---------- ---------- -------- ---------- ---------- ---------- ----------
Interfund transfers 97,785 (2,421,956) 401,534 348,835 (479,038) 1,309,549 1,155,072
---------- ---------- -------- ---------- ---------- ---------- ----------
Decrease in net assets (4,556) (18,557) (3,122) (6,086) (5,772) (15,517) (8,065)
Net assets, beginning
of year 4,556 18,557 3,122 6,086 5,772 15,517 8,065
---------- ---------- -------- ---------- ---------- ---------- ----------
Net assets, end of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ======== ========== ========== ========== ==========
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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 $ (7,016) $ 1,199,091 $ (10,854) $ 2,228,840
Interest & Dividends $ 191,600 1,982,313
---------- ----------- ---------- ---------- -----------
(7,016) 1,199,091 191,600 (10,854) 4,211,153
---------- ----------- ---------- ---------- -----------
Contributions and deferrals:
Employee deferrals 3,570,498
Employer contributions 1,671,909 1,671,909
Transfers 3,893,484 4,474,025 2,424,586 1,314 39,889,430
---------- ---------- ---------- ---------- -----------
3,893,484 4,474,025 2,424,586 1,673,223 45,131,837
---------- ---------- ---------- ---------- -----------
Total additions 3,886,468 5,673,116 2,616,186 1,662,369 49,342,990
---------- ---------- ---------- ---------- -----------
Deductions from net assets
attributable to:
Distributions to
participants 223,871 319,876 41,519 33,949 2,644,901
Administrative expenses 531 855 36 4,578
Transfers -
Transfers plan mergers 3,183,634 4,400,727 3,734,050 1,515,200 46,783,076
---------- ---------- ---------- ---------- -----------
Total deductions 3,408,036 4,721,458 3,775,569 1,549,185 49,432,555
---------- ---------- ---------- ---------- -----------
Interfund transfers (478,432) (951,658) 1,159,383 (141,074) -
---------- ---------- ---------- ---------- -----------
Decrease in net assets - - - (27,890) (89,565)
Net assets, beginning
of year - - - 27,890 89,565
---------- ---------- ---------- ---------- -----------
Net assets, end of year $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ========== ========== ===========
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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 .003% 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:
Payables 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
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 - 0.003%
*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
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
=========== ========== =========== =========== ============