1
EXHIBIT 99.10
RAYTHEON SAVINGS AND INVESTMENT PLAN (10014)
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 Savings and Investment Plan (10014):
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 Savings and Investment Plan (10014)(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
3
RAYTHEON SAVINGS AND INVESTMENT PLAN (10014)
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) $ 2,215,995 $ 2,280
At fair value (Notes B, F and I) 16,122,546 59,325
----------- -------
18,338,541 61,605
Receivables:
Accrued investment income
and other receivables 22,764 155
Cash and cash equivalents 323,185 426
----------- -------
Total assets 18,684,490 62,186
----------- -------
Liabilities:
Payable for outstanding purchases 2,857 165
Accrued expenses and other payables 4,636 51
Transfer payables (Note H) 18,676,997
----------- -------
Total liabilities 18,684,490 216
----------- -------
Net assets available for plan benefits $ - $61,970
=========== =======
The accompanying notes are an integral part of the financial statements.
4
RAYTHEON SAVINGS AND INVESTMENT PLAN (10014)
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 $ 1,071,553
Interest & Dividends 757,891
-----------
1,829,444
Contributions and deferrals:
Employee deferrals 2,527,892
Employer contributions 922,490
Transfers (Note G) 14,208,728
----------
17,659,110
Total additions 19,488,554
-----------
Deductions from net assets attributable to:
Distributions to participants 849,450
Administrative expenses 2,995
Transfers (Note G and H) 18,698,079
-----------
Total deductions 19,550,524
-----------
Decrease in net assets (61,970)
Net assets, beginning of year 61,970
-----------
Net assets, end of year $ -
===========
The accompanying notes are an integral part of the financial statements.
5
RAYTHEON SAVINGS AND INVESTMENT PLAN (10014)
NOTES TO FINANCIAL STATEMENTS
A. Description of Plan:
General
As more fully described in Note H, the Raytheon Savings and Investment Plan
(10014) (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, which was established on December 18, 1997, is a defined contribution
plan covering certain employees of Raytheon Company (the "Company"). Effective
December 18, 1997, 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 Thrift
and Savings Plan became eligible to participate in the Plan. Participants had
the option to rollover amounts accumulated in plans sponsored by the defense
business of Hughes Electronics 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 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 10% 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. 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 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 Plan participation or upon retirement, death, disability,
or attainment of normal retirement age. Forfeitures of the nonvested portions of
terminated participants' accounts are used to reduce required contributions of
the Company.
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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.
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.
8
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 January 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.
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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.
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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 the defense business
of Hughes Electronics Corporation who participated in the Hughes Thrift and
Savings Plan and who became eligible to participate in the Plan totaled
$12,290,388.
H. Transfer Payables:
As part of an overall effort to minimize plan design differences and increase
administrative efficiencies, the Board of Directors of the 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.
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 $ 780,134
Prudential Insurance
Company of America 390,660
Metropolitan Life
Insurance Company 980,564
Fidelity 42,535
Connecticut General 10,778
Monumental Life
Insurance Company 11,324
At fair value:
Fidelity Equity
Income Fund $5,137,337
Raytheon Company
Common Stock Fund $297,484
BT Pyramid Equity
Index Fund $622,923
Fidelity Balanced
Fund $2,134,411
Fidelity Magellan
Fund $1,517,997
Fidelity Blue
Chip Fund $1,315,762
Raytheon Class A
Wasting Stock Fund
Raytheon GMH
Wasting Stock Fund
Loans receivable
from participants
---------- ---------- -------- -------- ---------- ---------- ----------
Total investments 2,215,995 5,137,337 297,484 622,923 2,134,411 1,517,997 1,315,762
---------- ---------- -------- -------- ---------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 1,767 1,315
Cash and cash equivalents 204,355 4,094 2,782
---------- ---------- -------- -------- ---------- ---------- ----------
Total assets 2,420,350 5,137,337 303,345 627,020 2,134,411 1,517,997 1,315,762
---------- ---------- -------- -------- ---------- ---------- ----------
Liabilities:
Payable for outstanding
purchases 719
Accrued expenses and other
payables 690 706
Transfer payables 2,420,350 5,137,337 301,936 626,314 2,134,411 1,517,997 1,315,762
---------- ---------- -------- -------- ---------- ---------- ----------
Total liabilities 2,420,350 5,137,337 303,345 627,020 2,134,411 1,517,997 1,315,762
---------- ---------- -------- -------- ---------- ---------- ----------
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 $ 780,134
Prudential Insurance
Company of America 390,660
Metropolitan Life
Insurance Company 980,564
Fidelity 42,535
Connecticut General 10,778
Monumental Life
Insurance Company 11,324
At fair value:
Fidelity Equity
Income Fund 5,137,337
Raytheon Company
Common Stock Fund $884,744 1,182,228
BT Pyramid Equity
Index Fund 622,923
Fidelity Balanced
Fund 2,134,411
Fidelity Magellan
Fund 1,517,997
Fidelity Blue
Chip Fund 1,315,762
Raytheon Class A
Wasting Stock Fund $1,379,518 1,379,518
Raytheon GMH
Wasting Stock Fund $1,845,149 1,845,149
Loans receivable
from participants $987,221 987,221
---------- ---------- -------- -------- -----------
Total investments 1,379,518 1,845,149 987,221 884,744 $18,338,541
---------- ---------- -------- -------- -----------
Receivables:
Accrued investment income
and other receivables 14,176 252 5,254 22,764
Cash and cash equivalents 41,345 58,433 12,176 323,185
---------- ---------- -------- -------- -----------
Total assets 1,435,039 1,903,834 987,221 902,174 $18,684,490
---------- ---------- -------- -------- -----------
Liabilities:
Payable for outstanding
purchases 2,138 2,857
Accrued expenses and
other payables 495 694 2,051 4,636
Transfer payables 1,434,544 1,903,140 987,221 897,985 18,676,997
---------- ---------- -------- -------- -----------
Total liabilities 1,435,039 1,903,834 987,221 902,174 $18,684,490
---------- ---------- -------- -------- -----------
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 $ 852
Prudential Insurance
Company of America 528
Metropolitan Life
Insurance Company 900
At fair value:
Fidelity Equity Income Fund* $8,617
Raytheon Company Common Stock* $3,715
BT Pyramid Equity Index Fund* $5,307
Fidelity Balanced Fund* $4,183
Fidelity Magellan Fund* $13,244
Fidelity Blue Chip Fund*
Loans receivable from participants*
------ ------- ------ ------ ------ -------
Total investments 2,280 8,617 3,715 5,307 4,183 13,244
------ ------- ------ ------ ------ -------
Receivables:
Accrued investment income
and other receivables 27 12
Cash and cash equivalents 23 67 52
------ ------ ------ ------ ------ -------
Total assets 2,303 8,617 3,809 5,371 4,183 13,244
------ ------ ------ ------ ------ -------
Liabilities:
Payable for outstanding purchases 32
Accrued expenses and other
payables 7 13
------ ------ ------ ------ ------ ------
Total liabilities - - 39 13 - -
------ ------ ------ ------ ------ ------
Net assets available for plan
benefits $2,303 $8,617 $3,770 $5,358 $4,183 $13,244
====== ====== ====== ====== ====== =======
*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 $ 852
Prudential Insurance
Company of America 528
Metropolitan Life
Insurance Company 900
At fair value:
Fidelity Equity Income Fund* 8,617
Raytheon Company Common Stock* $15,666 19,381
BT Pyramid Equity Index Fund* 5,307
Fidelity Balanced Fund* 4,183
Fidelity Magellan Fund* 13,244
Fidelity Blue Chip Fund* $8,593 8,593
------ ------- -------
Total investments 8,593 15,666 61,605
------ ------- -------
Receivables:
Accrued investment income
and other receivables 116 155
Cash and cash equivalents 284 426
------ ------- -------
Total assets 8,593 16,066 62,186
------ ------- -------
Liabilities:
Payable for outstanding purchases 133 165
Accrued expenses and other
payables 31 51
------ ------ -------
Total liabilities - 164 216
------ ------ -------
Net assets available for plan
benefits $8,593 $15,902 $61,970
====== ======= =======
*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 $ 83 $ 79,465 $ (5,737) $ 90,003 $ 64,373 $ 186,154 $ 160,692
Interest & Dividends 114,180 305,170 200,836 50,249 36,560
---------- ---------- -------- -------- ---------- ---------- ----------
114,263 384,635 (5,737) 90,003 265,209 236,403 197,252
---------- ---------- -------- -------- ---------- ---------- ----------
Contributions and deferrals:
Employee deferrals 170,269 487,537 209,165 276,620 233,608 690,136 460,557
Employer contributions
Transfers 1,940,001 5,627,909 8,347 72,826 1,858,429 154,693 71,246
---------- ---------- -------- -------- ---------- ---------- ----------
2,110,270 6,115,446 217,512 349,446 2,092,037 844,829 531,803
---------- ---------- -------- -------- ---------- ---------- ----------
Total additions 2,224,533 6,500,081 211,775 439,449 2,357,246 1,081,232 729,055
---------- ---------- -------- -------- ---------- ---------- ----------
Deductions from net assets
attributable to:
Distributions to
participants 85,804 231,655 6,581 46,826 105,585 60,996 43,794
Administrative expenses 348 948 21 32 359 74 59
Transfers 937 5,459
Transfers plan mergers 2,420,350 5,137,337 301,936 626,314 2,134,411 1,517,997 1,315,762
---------- ---------- -------- -------- ---------- ---------- ----------
Total deductions 2,506,502 5,369,940 309,475 673,172 2,240,355 1,579,067 1,365,074
---------- ---------- -------- -------- ---------- ---------- ----------
Interfund transfers 279,666 (1,138,758) 93,930 228,365 (121,074) 484,591 627,426
---------- ---------- -------- -------- ---------- ---------- ----------
Decrease in net assets (2,303) (8,617) (3,770) (5,358) (4,183) (13,244) (8,593)
Net assets, beginning
of year 2,303 8,617 3,770 5,358 4,183 13,244 8,593
---------- ---------- -------- ------- ---------- ---------- ----------
Net assets, end of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
========== ========== ======== ======= ========== ========== ==========
16
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 $ 20,270 $ 474,057 $ 2,193 $ 1,071,553
Interest & Dividends $ 50,896 757,891
---------- ----------- ---------- -------- -----------
20,270 474,057 50,896 2,193 1,829,444
---------- ----------- ---------- -------- -----------
Contributions and deferrals:
Employee deferrals 2,527,892
Employer contributions 922,490 922,490
Transfers 1,754,018 1,985,775 727,507 7,977 14,208,728
---------- ---------- ---------- -------- -----------
1,754,018 1,985,775 727,507 930,467 17,659,110
---------- ---------- ---------- -------- -----------
Total additions 1,774,288 2,459,832 778,403 932,660 19,488,554
---------- ---------- ---------- -------- -----------
Deductions from net assets
attributable to:
Distributions to
participants 81,677 124,977 45,827 15,728 849,450
Administrative expenses 427 706 21 2,995
Transfers 4,116 4,833 5,737 21,082
Transfers plan mergers 1,434,544 1,903,140 987,221 897,985 18,676,997
---------- ---------- ---------- -------- -----------
Total deductions 1,520,764 2,033,656 1,033,048 919,471 19,550,524
---------- ---------- ---------- -------- -----------
Interfund transfers (253,524) (426,176) 254,645 (29,091) -
---------- ---------- ---------- -------- -----------
Decrease in net assets - - - (15,902) (61,970)
Net assets, beginning
of year - - - 15,902 61,970
---------- ---------- ---------- -------- -----------
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 .002% 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
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 - 0.002%
*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
=========== ========== =========== =========== ============