1
EXHIBIT 99.4
RAYTHEON SAVINGS AND INVESTMENT PLAN
FOR PUERTO RICO BASED EMPLOYEES
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 to 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 for Puerto Rico Based Employees
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 for Puerto Rico Based
Employees (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.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 4, 1999
3
RAYTHEON SAVINGS AND INVESTMENT PLAN FOR PUERTO RICO BASED EMPLOYEES
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 H) $ 89,386 $ 77,879
At fair value (Notes B, F and H) 1,175,199 700,111
----------- ----------
1,264,585 777,990
----------- ----------
Receivables:
Accrued investment income and
other receivables 2,417 1,775
Cash and cash equivalents 13,742 5,598
----------- ----------
Total assets 1,280,744 785,363
----------- ----------
Liabilities:
Payable for outstanding purchases 776 1,723
Accrued expenses and other payables 1,019 696
----------- ----------
Total liabilities 1,795 2,419
----------- ----------
Net assets available for plan benefits $ 1,278,949 $ 782,944
=========== ==========
The accompanying notes are an integral part of the financial statements.
4
RAYTHEON SAVINGS AND INVESTMENT PLAN FOR PUERTO RICO BASED EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
for the year ended December 31, 1998
Additions to net assets attributable to:
Investment income (Notes B, E and H):
Net appreciation of investments $ 209,437
Interest & Dividends 34,823
----------
244,260
Contributions and deferrals:
Employee deferrals 239,993
Employer contributions 87,083
Transfers (Note G) 55,305
----------
382,381
----------
Total additions 626,641
----------
Deductions from net assets attributable to:
Distributions to participants 100,711
Administrative expenses 68
Transfers (Note G) 29,857
----------
Total deductions 130,636
----------
Increase in net assets 496,005
Net assets, beginning of year 782,944
----------
Net assets, end of year $1,278,949
==========
The accompanying notes are an integral part of the financial statements.
5
RAYTHEON SAVINGS AND INVESTMENT PLAN
FOR PUERTO RICO BASED EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
A. Description of Plan:
General
The following description of the Raytheon Savings and Investment Plan for Puerto
Rico Based Employees (the "Plan") provides only general information.
Participants should refer to the plan document for a complete description of the
Plan's provisions. The Plan is a defined contribution plan covering certain
Puerto Rico based employees of Raytheon Catalytic, Inc., a wholly owned
subsidiary of Raytheon Company (the "Company"). To participate in the Plan,
eligible employees must have three months of service and may enter the Plan only
on the first pay date of each month. The purpose of the Plan is to provide
participants with a tax-effective means of meeting both short- and long-term
investment objectives. The Plan, effective as of January 1, 1995, is intended to
comply with all the requirements for a "qualified profit sharing plan" under the
Revenue Code of Puerto Rico (the "Code"). The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).
All of the Plan's investments are 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.
Contributions and Deferrals
Eligible employees are allowed to defer to the Plan up to 15% of their salaries.
The Company contributes amounts equal to 50% of each participant's deferral, up
to a maximum of 3% of the participant's salary. For 1998, the annual employee
deferral for a participant cannot exceed the lesser of $8,000 or 10% of a
participant's annual compensation, minus any contributions to Puerto Rico
qualified Individual Retirement Accounts. Rollover contributions from other
qualified plans subject to the Code are accepted by the Plan. Participants may
invest their deferrals in increments of 1% in any combination of seven funds:
(a) a Fixed Income Fund under which assets are invested primarily in contracts
providing for fixed rates of interest for specified periods of time, (b) 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. 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 and the Fidelity Blue Chip Fund are reinvested in their
respective funds; stock dividends, stock splits and similar changes are also
reflected in the funds.
6
Participant Accounts
Each participant's account is credited with the participant's deferral, the
Company's contributions and an allocation of plan earnings. Plan earnings are
allocated based on account balances by fund.
Vesting
Participants are immediately vested in their voluntary deferrals plus actual
earnings thereon. Vesting requirements for employer contributions plus earnings
thereon may vary depending upon when an employee became eligible to participate
in the Plan. Vesting generally occurs upon completion of five years of service
or after 3 years of participation or upon retirement, death, disability, or
attainment of retirement age. Forfeitures of the nonvested portions of
terminated participants' accounts are used to reduce required contributions of
the Company.
Distributions to Participants
A participant may withdraw all or a portion of deferrals, employer contributions
and related earnings upon attainment of age 59 1/2. For reasons of financial
hardship, as defined in the plan document, a participant may withdraw all or
part of deferrals. On termination of employment, a participant will receive a
lump-sum distribution. If the vested account is valued in excess of $3,500, the
participant has the option to defer distribution. A retiree or a beneficiary of
a deceased participant may defer the distribution until January of the year
following attainment of age 65.
Loans to Participants
A participant may borrow against a portion of the balance in the participant's
account, subject to certain restrictions. The maximum amount of a loan is
one-half of the participant's account balance. The minimum loan which may be
granted is $500. The interest rate applied is equal to the prime rate published
in the Wall Street Journal on the first business day in June and December of
each year. Loans must be repaid over a period of up to five years by means of
payroll deductions. In certain cases, the repayment period may be extended up to
15 years. Interest paid to the Plan on loans to participants is credited to the
borrower's account in the investment fund to which repayments are made.
Administrative Expenses
Certain expenses of administering the Plan are paid by the plan participants.
7
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.
Benefits are recorded when paid.
Certain items in the 1997 financial statements have been reclassified to
conform to the 1998 presentation.
The preparation of the financial statements in conformity with generally
accepted accounting principles requires the Plan administrator to make
significant estimates and assumptions that affect the reported amounts of net
assets and liabilities available for benefits at the date of the financial
statements and the changes in net assets available for benefits during the
reporting period and, when applicable, disclosures of contingent assets and
liabilities at the date of the financial statements. Actual results could differ
from the estimates included in the financial statements.
8
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. Tax Status:
The Plan obtained its latest determination letter in August 1996, in which the
Treasury department of the Commonwealth of Puerto Rico stated that the Plan, as
submitted, was in compliance with the applicable requirements of the Puerto Rico
Income Tax Act of 1954, as amended. Since receiving the determination letter,
the plan has been amended. The Plan administrator and the Plan's legal counsel
believe that the Plan is designed and being operated in compliance with the
applicable requirements of the aforementioned Act. Therefore, no provision for
income taxes has been included in the Plan's financial statements.
D. Plan Termination:
Although it has not expressed any intention to do so, the Company reserves the
right under the Plan at any time or times to discontinue its contributions and
to terminate the Plan subject to the provisions of ERISA. In the event of plan
termination, after payment of all expenses and proportional adjustment of
accounts to reflect such expenses, fund losses or profits, and reallocations,
each participant shall be entitled to receive any amounts then credited to his
or her account.
E. Investment Contracts:
The Plan invests in collateralized fixed income investment portfolios 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:
9
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 all other plans included in the Raytheon Company
Master Trust for those participants and/or groups of participants who changed
plans during the year. Transfers also include transfers of participant accounts,
individually and/or in-groups, between the Plan and similar savings plans of
other companies for those participants who changed companies during the year.
10
H. Fund Data:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1998:
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 $ 31,468
Prudential Insurance
Company of America 15,758
Metropolitan Life
Insurance Company 39,552
Fidelity 1,716
Connecticut General 435
Monumental Life
Insurance Company 457
At fair value:
Fidelity Equity
Income Fund* $ 287,340
Raytheon Company
Common Stock Fund* $ 321,152
BT Pyramid Equity
Index Fund* $ 241,676
Fidelity Balanced
Fund $ 61,028
Fidelity Magellan
Fund* $ 117,182
Fidelity Blue
Chip Fund* $ 109,521
Loans receivable
from participants
------------ ----------- ----------- ----------- ---------- ----------- -----------
Total investments 89,386 287,340 321,152 241,676 61,028 117,182 109,521
------------ ----------- ----------- ----------- ---------- ----------- -----------
Receivables:
Accrued investment income
and other receivables 1,907 510
Cash and cash equivalents 8,243 4,420 1,079
------------ ----------- ----------- ----------- ----------- ------------ -----------
Total assets 97,629 287,340 327,479 243,265 61,028 117,182 109,521
------------ ----------- ----------- ----------- ----------- ------------ -----------
Liabilities:
Payable for outstanding
purchases 776
Accrued expenses and other
payables 745 274
------------ ----------- ----------- ----------- ---------- ----------- -----------
Total liabilities - - 1,521 274 - - -
------------ ----------- ----------- ----------- ---------- ----------- -----------
Net assets available for
plan benefits $ 97,629 $ 287,340 $ 325,958 $ 242,991 $ 61,028 $ 117,182 $ 109,521
============ =========== =========== ========== =========== =========== ===========
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Loan
Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $ 31,468
Prudential Insurance
Company of America 15,758
Metropolitan Life
Insurance Company 39,552
Fidelity 1,716
Connecticut General 435
Monumental Life
Insurance Company 457
At fair value:
Fidelity Equity
Income Fund* 287,340
Raytheon Company
Common Stock Fund* 321,152
BT Pyramid Equity
Index Fund* 241,676
Fidelity Balanced
Fund 61,028
Fidelity Magellan
Fund* 117,182
Fidelity Blue
Chip Fund* 109,521
Loans receivable
from participants $ 37,300 37,300
----------- ------------
Total investments 37,300 1,264,585
----------- ------------
Receivables:
Accrued investment income
and other receivables 2,417
Cash and cash equivalents 13,742
----------- ------------
Total assets 37,300 1,280,744
----------- ------------
Liabilities:
Payable for outstanding
purchases 776
Accrued expenses and
other payables 1,019
---------- ------------
Total liabilities - 1,795
---------- ------------
Net assets available for
plan benefits $ 37,300 $ 1,278,949
========== ============
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H. Fund Data, Continued:
The following is a summary of net assets available for plan benefits by
fund as of December 31, 1997:
Raytheon
Fixed Equity Common Stock Balanced Magellan
Income Fund Fund Stock Fund Index Fund Fund Fund
Assets:
Master trust investments:
At contract value:
Bankers Trust $ 29,087
Prudential Insurance
Company of America 18,041
Metropolitan Life
Insurance Company 30,751
At fair value:
Fidelity Equity Income Fund* $ 214,116
Raytheon Company Common Stock Fund* $ 202,655
BT Pyramid Equity Index Fund* $ 118,530
Fidelity Balanced Fund $ 32,784
Fidelity Magellan Fund* $ 40,215
Fidelity Blue Chip Fund*
Loans receivable from participants*
------------ ----------- ----------- ----------- ---------- ----------
Total investments 77,879 214,116 202,655 118,530 32,784 40,215
------------ ----------- ----------- ----------- ---------- ----------
Receivables:
Accrued investment income
and other receivables 1,491 284
Cash and cash equivalents 767 3,667 1,164
------------ ----------- ----------- ----------- ---------- ----------
Total assets 78,646 214,116 207,813 119,978 32,784 40,215
------------ ----------- ----------- ----------- ---------- ----------
Liabilities:
Payable for outstanding purchases 1,723
Accrued expenses and other
payables 402 294
------------ ----------- ----------- ---------- ----------- ----------
Total liabilities 2,125 294
------------ ----------- ----------- ---------- ----------- ----------
Net assets available for plan
benefits $ 78,646 $ 214,116 $ 205,688 $ 119,684 $ 32,784 $ 40,215
============ =========== =========== =========== ========== ==========
*Represents more than 5% of net assets available for plan benefits
13
Blue Chip Loan
Fund Fund Total
Assets:
Master trust investments:
At contract value:
Bankers Trust $ 29,087
Prudential Insurance
Company of America 18,041
Metropolitan Life
Insurance Company 30,751
At fair value:
Fidelity Equity Income Fund* 214,116
Raytheon Company Common Stock Fund* 202,655
BT Pyramid Equity Index Fund* 118,530
Fidelity Balanced Fund 32,784
Fidelity Magellan Fund* 40,215
Fidelity Blue Chip Fund* $ 35,416 35,416
Loans receivable from participants* $ 56,395 56,395
---------- ----------- -----------
Total investments 35,416 56,395 777,990
---------- ----------- ------------
Receivables:
Accrued investment income
and other receivables 1,775
Cash and cash equivalents 5,598
---------- ----------- ------------
Total assets 35,416 56,395 785,363
---------- ----------- ------------
Liabilities:
Payable for outstanding purchases 1,723
Accrued expenses and other
payables 696
---------- ---------- ------------
Total liabilities 2,419
---------- ---------- ------------
Net assets available for plan
benefits $ 35,416 $ 56,395 $ 782,944
========== =========== ============
*Represents more than 5% of net assets available for plan benefits
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The following is a summary of changes in net assets available for plan
benefits by fund for the year ended December 31, 1998:
Fixed Raytheon Stock
Income Equity Common Index Balanced Magellan
Fund Fund Stock Fund Fund Fund Fund
Additions to net assets
attributable to:
Investment income:
Net appreciation
(depreciation) of
investments $ (1,958) $ 22,738 $ 73,332 $ 63,126 $ 7,302 $ 23,815
Interest & Dividends 6,004 14,922 3,475 4,462
----------- ------------ ----------- ------------ ------------ ------------
4,046 37,660 73,332 63,126 10,777 28,277
----------- ------------ ----------- ------------ ------------ ------------
Contributions and deferrals:
Employee deferrals 18,843 47,068 57,329 43,191 7,832 30,821
Employer contributions 26,493 13,859 18,635 11,718 1,788 7,816
Transfers 12,894 (3,898) 12,411 18,172 7,752
------------ ------------ ----------- ------------ ----------- ------------
45,336 73,821 72,066 67,320 27,792 46,389
------------ ------------ ----------- ------------ ------------ ------------
Total additions 49,382 111,481 145,398 130,446 38,569 74,666
------------ ------------ ----------- ------------ ------------ ------------
Deductions from net assets
attributable to:
Distributions to
participants 17,064 11,869 24,719 14,451 2,156 5,996
Administrative expenses 7 19 20 11 3 4
Transfers 13,295
------------ ------------ ----------- ------------ ------------- ------------
Total deductions 17,071 25,183 24,739 14,462 2,159 6,000
------------ ------------ ----------- ------------ ------------- ------------
Interfund transfers (13,328) (13,074) (389) 7,323 (8,166) 8,301
------------ ------------ ----------- ------------ ------------- ------------
Increase/(Decrease)
in net assets 18,983 73,224 120,270 123,307 28,244 76,967
Net assets, beginning
of year 78,646 214,116 205,688 119,684 32,784 40,215
------------ ------------ ----------- ------------ ------------- ------------
Net assets, end of year $ 97,629 $ 287,340 $ 325,958 $ 242,991 $ 61,028 $ 117,182
============ ============ =========== ============ ============= ============
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Blue
Chip Loan
Fund Fund Total
Additions to net assets
attributable to:
Investment income:
Net appreciation of
investments $ 21,082 $ 209,437
Interest & Dividends 3,285 $ 2,675 34,823
---------- ------------ -------------
24,367 2,675 244,260
---------- ------------ -------------
Contributions and deferrals:
Employee deferrals 34,909 239,993
Employer contributions 6,774 87,083
Transfers 7,974 55,305
---------- ------------ -------------
49,657 382,381
---------- ------------ -------------
Total additions 74,024 2,675 626,641
---------- ------------ -------------
Deductions from net assets
attributable to:
Distributions to
participants 2,639 21,817 100,711
Administrative expenses 4 - 68
Transfers 16,562 29,857
---------- ------------ --------------
Total deductions 2,643 38,379 130,636
---------- ------------ --------------
Interfund transfers 2,724 16,609
----------- ------------ --------------
Increase/(Decrease)
in net assets 74,105 (19,095) 496,005
Net assets, beginning
of year 35,416 56,395 782,944
----------- ----------- --------------
Net assets, end of year $ 109,521 $ 37,300 $ 1,278,949
=========== =========== ==============
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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 0.02% of the total assets under the
Master Trust. This has not changed from 0.02% 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
============== ============== ============== ============== ============== ==============
17
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
============== ============== ============== ============== ============== ==============
18
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 - 0.02%
*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.
19
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
============ ============ ============ ============ ============ ===========
20
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:
Payables for outstanding
purchases 6,340,318
Accrued expenses and
other payables 2,681,346
------------ ---------- ---------- ----------- ------------ --------------
Total liabilities - - - - - 9,021,664
------------ ---------- ---------- ----------- ------------ --------------
Net assets available for
plan benefits $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 - 0.02%
*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.
21
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
=========== ============ =========== ============ =========== ===========
22
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
=========== =========== ======== ========== ========== ==========
23
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 $713,220,746
=========== ========== =========== =========== ============