WALTHAM, Mass., April 23, 2015 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) announced first quarter 2015 EPS from
continuing operations of $1.78
compared to $1.87 in the first
quarter 2014. First quarter 2015 Adjusted EPS was $1.26 per diluted share compared to $1.43 per diluted share in the first quarter
2014. First quarter 2015 Adjusted EPS excluded a $0.42 favorable impact for the previously
announced eBorders settlement with the U.K. Home Office and a
favorable FAS/CAS Adjustment of $0.10. First quarter 2014 Adjusted EPS excluded a
$0.25 favorable tax impact from cash
repatriation in the first quarter 2014 and a favorable FAS/CAS
Adjustment of $0.18.
"Raytheon's solid first quarter financial performance is a
testament to the strength of our operating model. Our sales,
earnings and cash flow were in line or ahead of our expectations,"
said Thomas A. Kennedy, Raytheon
Chairman and CEO. "We continue to position the company for the
future by successfully executing our global growth strategy and
investing in key discriminating technologies."
_____________________________
|
(1)
Adjusted EPS is diluted EPS from continuing operations attributable
to Raytheon Company common stockholders, and Adjusted Operating
Margin is total operating margin; in each case, excluding the
impact of the FAS/CAS Adjustment, and from time to time, certain
other items. First quarter 2015 Adjusted Income and Adjusted
EPS also excluded the $181 million pretax ($131 million after-tax)
and $0.42 impact, respectively, for the eBorders settlement.
Adjusted EPS and Adjusted Operating Margin are non-GAAP financial
measures. See attachment F for a reconciliation of this measure and
a discussion of why the Company is presenting this
information.
|
Net sales for the first quarter 2015 were $5.3 billion compared to $5.5 billion in the first quarter 2014.
Operating cash flow from continuing operations for the first
quarter 2015 was $55 million compared
to $659 million for the first quarter
2014. The change in operating cash flow from continuing operations
in the first quarter 2015 was primarily due to the timing of
collections.
|
Summary Financial
Results
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
%
|
|
($ in millions,
except per share data)
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
Bookings
|
$
|
4,471
|
|
|
$
|
4,293
|
|
|
4.1%
|
|
Net Sales
|
$
|
5,288
|
|
|
$
|
5,508
|
|
|
-4.0%
|
|
Income from
Continuing Operations attributable to
Raytheon
Company
|
$
|
551
|
|
|
$
|
589
|
|
|
-6.5%
|
|
Adjusted
Income*
|
$
|
388
|
|
|
$
|
452
|
|
|
-14.2%
|
|
EPS from Continuing
Operations
|
$
|
1.78
|
|
|
$
|
1.87
|
|
|
-4.8%
|
|
Adjusted
EPS*
|
$
|
1.26
|
|
|
$
|
1.43
|
|
|
-11.9%
|
|
Operating Cash Flow
from Continuing Operations
|
$
|
55
|
|
|
$
|
659
|
|
|
|
|
Workdays in Fiscal
Reporting Calendar
|
61
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
* Adjusted Income
is income from continuing operations attributable to Raytheon
Company common stockholders, and Adjusted EPS is diluted EPS from
continuing operations attributable to Raytheon Company common
stockholders; in each case, excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items.
First quarter 2015 Adjusted Income and Adjusted EPS excluded the
favorable $181 million pretax ($131 million after-tax) and $0.42
impact, respectively, for the eBorders settlement. First quarter
2014 Adjusted Income and Adjusted EPS excluded the favorable tax
impact of approximately $80 million and $0.25, respectively,
resulting from cash repatriation in connection with a transaction
with a foreign subsidiary in January 2014. See attachment F for a
reconciliation of these measures and a discussion of why the
Company is presenting this information.
|
|
|
|
|
|
|
In the first quarter 2015, the Company repurchased 2.8 million
shares of common stock for $300
million. In addition, as previously announced, the Company's
Board of Directors voted to increase the Company's annual dividend
rate by 10.7 percent from $2.42 to
$2.68 per share, the eleventh
consecutive annual dividend increase.
The Company ended the first quarter 2015 with $1.2 billion of net debt. Net debt is defined as
total debt less cash and cash equivalents and short-term
investments.
As previously announced, on March 27,
2015, Raytheon Systems Limited (RSL) reached a settlement
with the U.K. Home Office concluding the parties' dispute regarding
the U.K. Home Office's July 2010
termination of RSL's eBorders contract. The settlement includes a
cash payment from the U.K. Home Office to RSL of £150 million
(approximately $226 million) in
exchange for the resolution of all claims and counterclaims of both
parties that were related to that matter. After certain expenses
and consideration of the outstanding receivables, the Company
recorded $181 million pretax
($131 million after-tax) in operating
income from the settlement in the first quarter 2015. The cash
payment was received in the second quarter 2015.
Also as previously announced, the Company signed a definitive
agreement with Vista Equity Partners to form a new, jointly owned
entity that will combine Websense together with Raytheon Cyber
Products. The new organization will leverage Raytheon's expertise
in defense-grade cybersecurity solutions with Websense's strong
commercial market position and proven ability to defend against
advanced cyberattacks. The transaction is expected to close late in
the second quarter 2015.
Backlog
|
($ in
millions)
|
Period
Ending
|
|
Q1
2015
|
|
Q1
2014
|
|
2014
|
|
Backlog
|
$
|
32,485
|
|
|
$
|
32,183
|
|
|
$
|
33,571
|
|
|
Funded
Backlog
|
$
|
23,723
|
|
|
$
|
22,745
|
|
|
$
|
23,092
|
|
Backlog at the end of the first quarter 2015 was $32.5 billion and funded backlog was $23.7 billion, an increase of approximately
$1.0 billion compared to the first
quarter 2014.
Outlook
The Company has raised its financial outlook for 2015 to reflect
the eBorders settlement as shown below. Charts containing
additional information on the Company's 2015 outlook are available
on the Company's website at www.raytheon.com/ir.
|
2015 Financial
Outlook
|
|
|
|
|
Current*
|
|
Prior
(1/29/15)
|
|
Net Sales
($B)
|
22.3 -
22.8
|
|
22.3 -
22.8
|
|
FAS/CAS Adjustment
($M)
|
197
|
|
197
|
|
Interest Expense, net
($M)
|
(225) -
(235)
|
|
(225) -
(235)
|
|
Diluted Shares
(M)
|
305 - 307
|
|
305 - 307
|
|
Effective Tax
Rate
|
Approx.
27.0%*
|
|
Approx.
27.5%
|
|
EPS from Continuing
Operations
|
$6.67 -
$6.82*
|
|
$6.20 -
$6.35
|
|
Adjusted
EPS**
|
$5.49 -
$5.64
|
|
$5.49 -
$5.64
|
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.4 - 2.7*
|
|
2.3 - 2.6
|
|
|
|
|
|
* Denotes change
from prior guidance. Does not include the expected impact of the
joint venture that was announced on April 20, 2015 involving
Raytheon Cyber Products and Websense.
|
|
** Adjusted EPS is
diluted EPS from continuing operations attributable to Raytheon
Company common stockholders, excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items. In
addition to the FAS/CAS Adjustment, 2015 Adjusted EPS guidance also
excludes the full-year impact of the eBorders settlement of $0.47
and certain tax related items. See attachment F for a
reconciliation of this measure and a discussion of why the Company
is presenting this information.
|
Segment Results
The Company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); and Space and Airborne Systems (SAS).
|
Integrated Defense
Systems
|
|
|
|
|
|
1st
Quarter
|
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
Net Sales
|
$
|
1,433
|
|
|
$
|
1,481
|
|
|
-3%
|
|
Operating
Income
|
$
|
195
|
|
|
$
|
226
|
|
|
-14%
|
|
Operating
Margin
|
13.6%
|
|
|
15.3%
|
|
|
|
Integrated Defense Systems (IDS) had first quarter 2015 net
sales of $1,433 million compared to
$1,481 million in the first quarter
2014. The change in net sales includes lower sales on international
Patriot programs nearing completion.
IDS recorded $195 million of
operating income in the first quarter 2015 compared to $226 million in the first quarter 2014. The
change in operating income was primarily driven by international
Patriot programs nearing completion.
During the quarter, IDS booked $769
million to provide advanced Patriot air and missile defense
capability for the Republic of Korea. IDS also booked $213 million to provide Patriot engineering
services support for U.S. and international customers and
$103 million on the Wide Area
Augmentation System (WAAS) program for the Federal Aviation
Administration (FAA).
As previously announced, shortly after the first quarter close
IDS booked $2.0 billion to provide
advanced Patriot air and missile defense capability for the
Kingdom of Saudi Arabia.
|
Intelligence,
Information and Services
|
|
|
|
1st
Quarter
|
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
Net Sales
|
$
|
1,393
|
|
|
$
|
1,450
|
|
|
-4%
|
|
Operating
Income
|
$
|
285
|
|
|
$
|
125
|
|
|
NM
|
|
Operating
Margin
|
20.5%
|
|
|
8.6%
|
|
|
|
|
NM = Not
Meaningful
|
|
|
|
|
|
Intelligence, Information and Services (IIS) had first quarter
2015 net sales of $1,393 million
compared to $1,450 million in the
first quarter 2014. The change in net sales was primarily driven by
lower volume on training programs.
IIS recorded $285 million of
operating income in the first quarter 2015 compared to $125 million in the first quarter 2014. The
increase in operating income was primarily driven by the eBorders
settlement, which contributed $181
million to operating income in the first quarter 2015.
During the quarter, IIS booked $551
million on a number of classified contracts.
|
Missile
Systems
|
|
|
|
1st
Quarter
|
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
Net Sales
|
$
|
1,473
|
|
|
$
|
1,574
|
|
|
-6%
|
|
Operating
Income
|
$
|
207
|
|
|
$
|
208
|
|
|
—
|
|
Operating
Margin
|
14.1%
|
|
|
13.2%
|
|
|
|
Missile Systems (MS) had first quarter 2015 net sales of
$1,473 million compared to
$1,574 million in the first quarter
2014. The change in net sales was primarily driven by lower volume
on the Tomahawk and Standard Missile-3 (SM-3®)
programs.
MS recorded $207 million of
operating income in the first quarter 2015 compared to $208 million in the first quarter 2014. First
quarter 2015 operating income included the favorable resolution of
a contractual issue.
During the quarter, MS booked $539
million for Advanced Medium-Range Air-to-Air Missile
(AMRAAM®) for the U.S. Air Force, U.S. Navy and
international customers. MS also booked $231
million for Tomahawk for the U.S. Navy, $110 million for Standard Missile-6 (SM-6™) for
the U.S. Navy and $92 million for the
Miniature Air Launched Decoy (MALD®) for the U.S. Air
Force.
|
Space and Airborne
Systems
|
|
|
|
1st
Quarter
|
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
Net Sales
|
$
|
1,358
|
|
|
$
|
1,398
|
|
|
-3%
|
|
Operating
Income
|
$
|
173
|
|
|
$
|
190
|
|
|
-9%
|
|
Operating
Margin
|
12.7%
|
|
|
13.6%
|
|
|
|
Space and Airborne Systems (SAS) had first quarter 2015 net
sales of $1,358 million compared to
$1,398 million in the first quarter
2014. The change in net sales included lower volume on secure
communication systems programs.
SAS recorded $173 million of
operating income in the first quarter 2015 compared to $190 million in the first quarter 2014. The
change in operating income was primarily due to higher net program
efficiencies in the first quarter 2014.
During the quarter, SAS booked $210
million on a number of classified contracts.
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.
Conference Call on the First Quarter 2015 Financial
Results
Raytheon's financial results conference call will be held on
Thursday, April 23, 2015 at
9 a.m. ET. Participants will include
Thomas A. Kennedy, Chairman and CEO;
Anthony F. O'Brien, vice president
and CFO; and other Company executives.
The dial-in number for the conference call will be (877)
474-9506 in the U.S. or (857) 244-7559 outside of the U.S. The
conference call will also be audiocast on the Internet at
www.raytheon.com/ir. Individuals may listen to the call and
download charts that will be used during the call. These charts
will be available for printing prior to the call.
Interested parties are encouraged to check the website ahead of
time to ensure their computers are configured for the audio
stream. Instructions for obtaining the free required
downloadable software are posted on the site.
Disclosure Regarding Forward-looking Statements
This release and the attachments contain forward-looking
statements, including information regarding the Company's financial
outlook, future plans, objectives, business prospects and
anticipated financial performance, as well as the anticipated
timing of the closing of the joint venture involving Raytheon Cyber
Products and Websense. These forward-looking statements are not
statements of historical facts and represent only the Company's
current expectations regarding such matters. These statements
inherently involve a wide range of known and unknown risks and
uncertainties. The Company's actual actions and results could
differ materially from what is expressed or implied by these
statements. Specific factors that could cause such a
difference include, but are not limited to: the Company's
dependence on the U.S. Government for a significant portion of its
business and the risks associated with U.S. Government sales,
including changes or shifts in defense spending due to budgetary
constraints, spending cuts resulting from sequestration under the
amended Budget Control Act of 2011, a government shutdown, or
otherwise, uncertain funding of programs, potential termination of
contracts, and difficulties in contract performance; the resolution
of program terminations; the ability to procure new contracts; the
risks of conducting business in foreign countries; the
unpredictability of timing of international bookings; the ability
to comply with extensive governmental regulation and obtain
approvals, including import and export policies, the Foreign
Corrupt Practices Act, the International Traffic in Arms
Regulations, industrial cooperation agreement obligations, and
procurement and other regulations; the impact of competition; the
ability to develop products and technologies; the impact of changes
in the financial markets and global economic conditions; the risk
that actual pension returns, discount rates or other actuarial
assumptions are significantly different than the Company's
assumptions; the risk of cost overruns, particularly for the
Company's fixed-price contracts; dependence on component
availability, subcontractor and partner performance and key
suppliers; risks of a negative government audit; the use of
accounting estimates in the Company's financial statements; risks
associated with acquisitions, dispositions, joint ventures and
other business arrangements; risks of an impairment of goodwill or
other intangible assets; the outcome of contingencies and
litigation matters, including government investigations; the
ability to recruit and retain qualified personnel; the impact of
potential security and cyber threats, and other disruptions; the
satisfaction of closing conditions for the joint venture
transactions, including receipt of regulatory approvals; and other
factors as may be detailed from time to time in the Company's
public announcements and Securities and Exchange Commission
filings. The Company undertakes no obligation to make any revisions
to the forward-looking statements contained in this release and the
attachments or to update them to reflect events or circumstances
occurring after the date of this release, including any
acquisitions, dispositions or other business arrangements that may
be announced or closed after such date. This release and the
attachments also contain non-GAAP financial measures. A GAAP
reconciliation and a discussion of the Company's use of these
measures are included in this release or the attachments.
|
Attachment
A
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
Preliminary Statement
of Operations Information
|
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,288
|
|
|
$
|
5,508
|
|
|
Operating
expenses
|
|
|
|
|
|
Cost of sales
|
|
3,833
|
|
|
4,161
|
|
|
General and administrative
expenses
|
|
615
|
|
|
559
|
|
|
Total operating
expenses
|
|
4,448
|
|
|
4,720
|
|
|
Operating
income
|
|
840
|
|
|
788
|
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
Interest expense
|
|
58
|
|
|
51
|
|
|
Interest income
|
|
(4)
|
|
|
(3)
|
|
|
Other (income) expense,
net
|
|
(2)
|
|
|
—
|
|
|
Total non-operating
(income) expense, net
|
|
52
|
|
|
48
|
|
|
Income from
continuing operations before taxes
|
|
788
|
|
|
740
|
|
|
Federal and foreign
income taxes
|
|
234
|
|
|
147
|
|
|
Income from
continuing operations
|
|
554
|
|
|
593
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
7
|
|
|
Net income
|
|
554
|
|
|
600
|
|
|
Less: Net income
attributable to noncontrolling
|
|
|
|
|
|
interests in subsidiaries
|
|
3
|
|
|
4
|
|
|
Net income
attributable to Raytheon Company
|
|
$
|
551
|
|
|
$
|
596
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Raytheon
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.79
|
|
|
$
|
1.87
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.02
|
|
|
Net income
|
|
1.79
|
|
|
1.89
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Raytheon
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.78
|
|
|
$
|
1.87
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.02
|
|
|
Net income
|
|
1.79
|
|
|
1.89
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
551
|
|
|
$
|
589
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
7
|
|
|
Net income
|
|
$
|
551
|
|
|
$
|
596
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
Basic
|
|
308.2
|
|
|
315.0
|
|
|
Diluted
|
|
308.6
|
|
|
315.8
|
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
|
(In millions, except
percentages)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
29-Mar-15
|
|
30-Mar-14
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,433
|
|
|
$
|
1,481
|
|
|
$
|
195
|
|
|
$
|
226
|
|
|
13.6
|
%
|
|
15.3
|
%
|
|
Intelligence,
Information and Services
|
|
1,393
|
|
|
1,450
|
|
|
285
|
|
|
125
|
|
|
20.5
|
%
|
|
8.6
|
%
|
|
Missile
Systems
|
|
1,473
|
|
|
1,574
|
|
|
207
|
|
|
208
|
|
|
14.1
|
%
|
|
13.2
|
%
|
|
Space and Airborne
Systems
|
|
1,358
|
|
|
1,398
|
|
|
173
|
|
|
190
|
|
|
12.7
|
%
|
|
13.6
|
%
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
49
|
|
|
87
|
|
|
|
|
|
|
Corporate and
Eliminations
|
|
(369)
|
|
|
(395)
|
|
|
(69)
|
|
|
(48)
|
|
|
|
|
|
|
Total
|
|
$
|
5,288
|
|
|
$
|
5,508
|
|
|
$
|
840
|
|
|
$
|
788
|
|
|
15.9
|
%
|
|
14.3
|
%
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
29-Mar-15
|
|
31-Dec-14
|
|
29-Mar-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
$
|
9,174
|
|
|
$
|
8,939
|
|
|
$
|
11,462
|
|
|
$
|
11,495
|
|
|
Intelligence,
Information and Services
|
|
2,849
|
|
|
2,902
|
|
|
5,510
|
|
|
5,877
|
|
|
Missile
Systems
|
|
|
7,302
|
|
|
6,992
|
|
|
9,191
|
|
|
9,269
|
|
|
Space and Airborne
Systems
|
|
|
4,398
|
|
|
4,259
|
|
|
6,322
|
|
|
6,930
|
|
|
Total
|
|
|
$
|
23,723
|
|
|
$
|
23,092
|
|
|
$
|
32,485
|
|
|
$
|
33,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
|
$
|
4,471
|
|
|
$
|
4,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
$
|
473
|
|
|
$
|
448
|
|
|
|
|
|
|
Research and
development expenses
|
|
$
|
142
|
|
|
$
|
111
|
|
|
|
|
|
|
Total general and
administrative expenses
|
|
$
|
615
|
|
|
$
|
559
|
|
|
|
|
|
|
Attachment
D
|
|
|
|
|
Raytheon
Company
|
|
|
Preliminary Balance
Sheet Information
|
|
|
First Quarter
2015
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
29-Mar-15
|
|
31-Dec-14
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,906
|
|
|
$
|
3,222
|
|
|
Short-term
investments
|
1,234
|
|
|
1,497
|
|
|
Contracts in process,
net
|
5,223
|
|
|
4,985
|
|
|
Inventories
|
506
|
|
|
414
|
|
|
Prepaid expenses and other
current assets
|
372
|
|
|
174
|
|
|
Total current assets
|
10,241
|
|
|
10,292
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,906
|
|
|
1,935
|
|
|
Goodwill
|
13,060
|
|
|
13,061
|
|
|
Other assets,
net
|
2,591
|
|
|
2,612
|
|
|
Total assets
|
$
|
27,798
|
|
|
$
|
27,900
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
$
|
1,944
|
|
|
$
|
2,284
|
|
|
Accounts payable
|
1,141
|
|
|
1,250
|
|
|
Accrued employee
compensation
|
905
|
|
|
1,059
|
|
|
Accrued income
taxes
|
346
|
|
|
31
|
|
|
Other accrued
expenses
|
1,299
|
|
|
1,306
|
|
|
Total current liabilities
|
5,635
|
|
|
5,930
|
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
6,926
|
|
|
6,919
|
|
|
Long-term
debt
|
5,331
|
|
|
5,330
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
|
Common stock
|
3
|
|
|
3
|
|
|
Additional paid-in
capital
|
1,040
|
|
|
1,309
|
|
|
Accumulated other
comprehensive loss
|
(7,353)
|
|
|
(7,458)
|
|
|
Retained earnings
|
16,017
|
|
|
15,671
|
|
|
Total Raytheon Company stockholders' equity
|
9,707
|
|
|
9,525
|
|
|
Noncontrolling interests in
subsidiaries
|
199
|
|
|
196
|
|
|
Total equity
|
9,906
|
|
|
9,721
|
|
|
Total liabilities and equity
|
$
|
27,798
|
|
|
$
|
27,900
|
|
|
Attachment
E
|
|
|
|
|
Raytheon
Company
|
|
|
Preliminary Cash Flow
Information
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
(In
millions)
|
Three Months
Ended
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
Net income
|
$
|
554
|
|
|
$
|
600
|
|
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
(7)
|
|
|
Income from
continuing operations
|
554
|
|
|
593
|
|
|
|
|
|
|
Depreciation
|
73
|
|
|
73
|
|
|
Amortization
|
34
|
|
|
34
|
|
|
Working capital
(excluding pension and income taxes)*
|
(1,132)
|
|
|
(530)
|
|
|
Other long-term
liabilities
|
(5)
|
|
|
(12)
|
|
|
Pension and other
postretirement benefit plans
|
267
|
|
|
180
|
|
|
Other, net
|
264
|
|
|
321
|
|
|
Net operating cash
flow from continuing operations
|
$
|
55
|
|
|
$
|
659
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
|
Capital
spending
|
$
|
(55)
|
|
|
$
|
(39)
|
|
|
Internal use software
spending
|
(13)
|
|
|
(12)
|
|
|
Acquisitions
|
(6)
|
|
|
—
|
|
|
Purchases of
short-term investments
|
(148)
|
|
|
(1,345)
|
|
|
Sales of short-term
investments
|
135
|
|
|
457
|
|
|
Maturities of
short-term investments
|
250
|
|
|
400
|
|
|
Dividends
|
(186)
|
|
|
(174)
|
|
|
Repurchases of common
stock under stock repurchase programs
|
(300)
|
|
|
(200)
|
|
|
|
|
|
|
|
|
|
|
* Working capital
(excluding pension and income taxes) is a summation of changes in:
contracts in process, net and advance payments and billings in
excess of costs incurred, inventories, prepaid expenses and other
current assets, accounts payable, accrued employee compensation,
and other accrued expenses from the Consolidated Statements of Cash
Flows.
|
|
|
|
|
|
Attachment
F
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
Non-GAAP Financial
Measures - Adjusted EPS, Adjusted Income and Adjusted Operating
Margin
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
Non-GAAP Reconciliation
|
|
|
|
|
2015
|
|
2015
|
|
(In millions, except
per share amounts)
|
|
|
|
|
Current
Guidance
|
|
Prior
Guidance
|
|
|
|
|
|
Three Months
Ended
|
|
Low end
|
|
High end
|
|
Low end
|
|
High end
|
|
|
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
of range
|
|
of range
|
|
of range
|
|
of range
|
|
Diluted EPS from
continuing operations attributable to Raytheon Company common
stockholders
|
$
|
1.78
|
|
|
$
|
1.87
|
|
|
$
|
6.67
|
|
|
$
|
6.82
|
|
|
$
|
6.20
|
|
|
$
|
6.35
|
|
|
Per share impact of
the FAS/CAS Adjustment (A)
|
(0.10)
|
|
|
(0.18)
|
|
|
(0.42)
|
|
|
(0.42)
|
|
|
(0.42)
|
|
|
(0.42)
|
|
|
Per share impact of
the eBorders settlement (B)
|
(0.42)
|
|
|
—
|
|
|
(0.47)
|
|
|
(0.47)
|
|
|
—
|
|
|
—
|
|
|
Per share impact of
the tax benefit of cash repatriation (C)
|
—
|
|
|
(0.25)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Per share impact of
the expected IRS tax settlement (D)
|
—
|
|
|
—
|
|
|
(0.29)
|
|
|
(0.29)
|
|
|
(0.29)
|
|
|
(0.29)
|
|
|
Adjusted EPS (2),
(3)
|
$
|
1.26
|
|
|
$
|
1.43
|
|
|
$
|
5.49
|
|
|
$
|
5.64
|
|
|
$
|
5.49
|
|
|
$
|
5.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
(49)
|
|
|
$
|
(87)
|
|
|
$
|
(197)
|
|
|
$
|
(197)
|
|
|
$
|
(197)
|
|
|
$
|
(197)
|
|
|
|
Tax effect
(1)
|
17
|
|
|
30
|
|
|
69
|
|
|
69
|
|
|
69
|
|
|
69
|
|
|
After-tax
impact
|
(32)
|
|
|
(57)
|
|
|
(128)
|
|
|
(128)
|
|
|
(128)
|
|
|
(128)
|
|
|
Diluted
shares
|
308.6
|
|
|
315.8
|
|
|
307.0
|
|
|
305.0
|
|
|
307.0
|
|
|
305.0
|
|
|
Per share
impact
|
$
|
(0.10)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
eBorders
settlement
|
$
|
(181)
|
|
|
$
|
—
|
|
|
$
|
(181)
|
|
|
$
|
(181)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Tax effect (actual at
27.7% blended global tax rate and guidance at 21% UK statutory
rate)
|
50
|
|
|
—
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
After-tax
impact
|
(131)
|
|
|
—
|
|
|
(143)
|
|
|
(143)
|
|
|
—
|
|
|
—
|
|
|
Diluted
shares
|
308.6
|
|
|
—
|
|
|
307.0
|
|
|
305.0
|
|
|
—
|
|
|
—
|
|
|
Per share
impact
|
$
|
(0.42)
|
|
|
$
|
—
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.47)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
Tax benefit of cash
repatriation
|
$
|
—
|
|
|
$
|
(80)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Diluted
shares
|
—
|
|
|
315.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
(0.25)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Expected IRS tax
settlement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(88)
|
|
|
$
|
(88)
|
|
|
$
|
(88)
|
|
|
$
|
(88)
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
307.0
|
|
|
305.0
|
|
|
307.0
|
|
|
305.0
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income
Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations attributable to Raytheon Company common
stockholders
|
$
|
551
|
|
|
$
|
589
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS Adjustment
(1)
|
(32)
|
|
|
(57)
|
|
|
|
|
|
|
|
|
|
|
eBorders settlement
(tax effected at 27.7% blended global tax rate)
|
(131)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Tax benefit of cash
repatriation
|
—
|
|
|
(80)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income (2),
(4)
|
$
|
388
|
|
|
$
|
452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Margin Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
Guidance
|
|
Prior
Guidance
|
|
|
|
|
|
Three Months
Ended
|
|
Low end
|
|
High end
|
|
Low end
|
|
High end
|
|
|
|
|
|
29-Mar-15
|
|
30-Mar-14
|
|
of range
|
|
of range
|
|
of range
|
|
of range
|
|
Operating
Margin
|
15.9
|
%
|
|
14.3
|
%
|
|
13.8
|
%
|
|
14.0
|
%
|
|
13.0
|
%
|
|
13.2
|
%
|
|
FAS/CAS
Adjustment
|
(0.9)
|
%
|
|
(1.6)
|
%
|
|
(0.9)
|
%
|
|
(0.9)
|
%
|
|
(0.9)
|
%
|
|
(0.9)
|
%
|
|
eBorders
settlement
|
(3.4)
|
%
|
|
—
|
%
|
|
(0.8)
|
%
|
|
(0.8)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Adjusted Operating
Margin (2), (5)
|
11.5
|
%
|
|
12.7
|
%
|
|
12.1
|
%
|
|
12.3
|
%
|
|
12.1
|
%
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Tax effected at 35%
federal statutory tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
These amounts are not
measures of financial performance under U.S. generally accepted
accounting principles (GAAP). They should be considered
supplemental to and not a substitute for financial performance in
accordance with GAAP and may not be defined and calculated by other
companies in the same manner. These amounts exclude the FAS/CAS
Adjustment and, from time to time, certain other items. We are
providing these measures because management uses them for the
purposes of evaluating and forecasting the Company's financial
performance and believes that they provide additional insights into
the Company's underlying business performance. We also believe that
they allow investors to benefit from being able to assess our
operating performance in the context of how our principal customer,
the U.S. Government, allows us to recover pension and
postretirement benefit (PRB) costs and to better compare our
operating performance to others in the industry on that same basis.
Amounts may not recalculate directly due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Adjusted EPS is
diluted EPS from continuing operations attributable to Raytheon
Company common stockholders excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items.
Three Months Ended March 29, 2015 Adjusted EPS and 2015 Guidance
Adjusted EPS excludes the after-tax favorable impact of the
eBorders settlement. Three Months Ended March 30, 2014 Adjusted EPS
excludes the $0.25 impact of a net tax benefit of approximately $80
million resulting from cash repatriation in connection with a
transaction with a foreign subsidiary in January 2014. 2015
Guidance Adjusted EPS excludes the earnings per share impact of an
expected IRS tax settlement related to 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Adjusted Income is
income from continuing operations attributable to Raytheon Company
common stockholders excluding the after-tax impact of the FAS/CAS
Adjustment and, from time to time, certain other items. Three
Months Ended March 29, 2015 Adjusted Income excludes the after-tax
favorable impact of the eBorders settlement as discussed above.
Three Months Ended March 30, 2014 Adjusted Income excludes the net
tax benefit, as discussed above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
Adjusted Operating
Margin is defined as total operating margin excluding the margin
impact of the FAS/CAS Adjustment and, from time to time, certain
other items. Three Months Ended March 29, 2015 Adjusted Operating
Margin excludes the favorable impact of the eBorders settlement as
discussed above.
|
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Mike Doble
703.980.9442
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/raytheon-reports-solid-first-quarter-2015-results-300070661.html
SOURCE Raytheon Company