UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported): March 27, 2015
RAYTHEON COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
1-13699
(Commission File Number)
95-1778500
(IRS Employer
Identification Number)
 
870 Winter Street, Waltham, Massachusetts 02451
(Address of Principal Executive Offices) (Zip Code)
 
(781) 522-3000
(Registrant’s telephone number, including area code)
 
________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 







Item 8.01. Other Events.
On March 27, 2015, Raytheon Company announced that Raytheon Systems Limited (also known as Raytheon UK) (“RSL”) had reached a settlement with the UK Home Office concluding the parties’ dispute regarding the UK Home Office’s July 2010 termination of RSL’s eBorders contract. The settlement includes a cash payment from the UK Home Office to RSL of £150 million in exchange for the resolution of all claims and counterclaims of both parties that were part of the London arbitration of the eBorders contract claims.
After certain expenses and consideration of the outstanding receivables, we expect to record approximately $175 million in operating income from the settlement in the first quarter 2015. The £150 million cash payment is expected to be received in the second quarter 2015.

Item 9.01. Financial Statements and Exhibits

(d)    Exhibits

99.1    Press Release issued by Raytheon Company dated March 27, 2015.









SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
RAYTHEON COMPANY
 
  
Date:
March 27, 2015
By: /s/ Jay B. Stephens
 
 
Jay B. Stephens
 
 
 Senior Vice President and Secretary

 
 
 
 
 
 
 
 








EXHIBIT INDEX


Exhibit No.
 
 
Description 
 

99.1
 

Press release issued by Raytheon Company dated March 27, 2015.










Exhibit 99.l
 
 
Raytheon Company
 
 
Global Headquarters
 
 
Waltham, Mass.
 
 
 
 
 
Media Contact
 
 
Michael Doble
 
 
 
703.284.4345
 
 
 
corporatepr@raytheon.com
 
 
 
 
 
 
 
 
 
 
 
 



FOR IMMEDIATE RELEASE

Raytheon Systems Limited Reaches Settlement with
United Kingdom Home Office

Concludes dispute regarding the termination of eBorders contract


Waltham, Mass. (Mar. 27, 2015) — Raytheon Company (NYSE: RTN) announced today that its United Kingdom subsidiary, Raytheon Systems Limited (RSL, also known as Raytheon U.K.), has reached an amicable settlement with the United Kingdom (U.K.) Home Office — successfully concluding a long-running dispute with the U.K. Home Office regarding the July 2010 termination of its eBorders contract.
The settlement includes a cash payment from the U.K. Home Office to RSL of £150M in exchange for the resolution of all claims and counterclaims of both parties that were part of the London arbitration of the eBorders contract claims.
In July 2010, the U.K. Home Office terminated the eBorders contract that RSL had with the U.K. Border Agency to provide electronic border security capabilities. RSL disputed the validity of the termination. In August 2010, the U.K. Home Office initiated arbitration proceedings and brought substantial claims against RSL.
In August 2014, after more than four years of litigation, the Arbitration Tribunal found that the U.K. Home Office had unlawfully terminated the contract. It denied all of the U.K. Home Office claims against RSL, and awarded RSL damages for breach of contract by the U.K. Home Office and other compensation amounting to £186M plus interest. The Arbitration Tribunal reserved its decision on costs.
The U.K. Home Office challenged the award, and in February 2015, a judge of the London High Court partially upheld the challenge, but stayed his decision and granted both parties permission to appeal. RSL





filed an appeal denying there was any proper basis for a challenge and relying on the well-established principles of finality of arbitral awards and non-intervention by national courts in the arbitration process.
To avoid further uncertainty and the expense of more protracted litigation, and to strengthen their important customer relationship with the British Government, Raytheon and RSL have decided to put this matter behind them.
Importantly, RSL and Raytheon Company have continued throughout this dispute to serve as valued suppliers to the British Government on key defence, national security and commercial pursuits. 

About Raytheon
Raytheon Company, with 2014 sales of $23 billion and 61,000 employees worldwide, is a technology and innovation leader specializing in defense, security and civil markets throughout the world. With a history of innovation spanning 93 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as cyber security and a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @raytheon.


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