WALTHAM, Mass., Oct. 25,
2012 /PRNewswire/ -- Raytheon Company (NYSE: RTN) announced
third quarter 2012 Adjusted EPS(1) of $1.60 per diluted share compared to $1.39 per diluted share in the third quarter
2011, up 15 percent. The increase was primarily driven by
operational improvements and capital deployment actions. Third
quarter 2012 EPS from continuing operations was $1.51 compared to $1.42 in the third quarter 2011. Third quarter
2012 included an unfavorable FAS/CAS Adjustment of $0.09, compared with an unfavorable FAS/CAS
Adjustment of $0.14 in the third
quarter 2011. Third quarter 2011 also included a $0.17 per diluted share favorable tax
settlement.
"Raytheon's strong operating performance in the third quarter
reflects our continued focus on reducing cost, and increasing
productivity," said William H.
Swanson, Raytheon's Chairman and CEO. "Our bookings in the
quarter were strong, and we have significant opportunities in both
domestic and international markets for our innovative technologies
and affordable solutions."
____________________________________
1 Adjusted EPS is 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. Q3 2011 Adjusted EPS also excludes the
impact of the favorable tax settlement as discussed above. Adjusted
EPS and Adjusted Operating Margin are non-GAAP financial measures.
See attachment F for a reconciliation of these measures and a
discussion of why the Company is presenting this information.
Q3 2011
vs. Q3 2012 EPS Variance
|
3rd
Quarter
|
|
Nine
Months
|
|
EPS
|
|
Adjusted EPS*
|
|
EPS
|
|
Adjusted EPS*
|
Q3
2011
|
$
|
1.42
|
|
|
$
|
1.39
|
|
|
$
|
3.68
|
|
|
$
|
4.13
|
|
Operational Improvements
|
0.07
|
|
|
0.07
|
|
|
0.24
|
|
|
0.24
|
|
Reduced
Share Count
|
0.08
|
|
|
0.08
|
|
|
0.27
|
|
|
0.27
|
|
Other
Items, net
|
0.06
|
|
|
0.06
|
|
|
(0.05)
|
|
|
(0.05)
|
|
FAS/CAS
Adjustment**
|
0.05
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
UKBA LOC
Adjustment
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
2011 Tax
Settlement
|
(0.17)
|
|
|
—
|
|
|
(0.17)
|
|
|
—
|
|
Q3
2012
|
$
|
1.51
|
|
|
$
|
1.60
|
|
|
$
|
4.24
|
|
|
$
|
4.61
|
|
|
|
|
|
|
|
|
|
*
Adjusted EPS is a non-GAAP financial measure. See attachment F for
a reconciliation of this measure and a discussion of why the
Company is presenting this information. Amounts may not add due to
rounding.
|
** Represents the difference between the 3rd
quarter 2012 and 3rd quarter 2011 FAS/CAS Adjustments of $(0.09)
and $(0.14), respectively and the first nine months of 2012 and
first nine months of 2011 FAS/CAS Adjustments of $(0.36) and
$(0.46), respectively.
|
|
|
|
|
|
|
|
|
Net sales for the third quarter 2012 were $6,045 million, compared to $6,116 million in the third quarter 2011. The
Company reported strong bookings for the third quarter 2012 of
$7,293 million, resulting in a
book-to-bill ratio of 1.21. Bookings in the third quarter 2011 were
$6,884 million.
The Company generated strong operating cash flow in the
quarter. Operating cash flow from continuing operations for
the third quarter 2012 was $1,111
million compared to $845
million for the third quarter 2011. The increase in
operating cash from continuing operations in the third quarter 2012
was primarily due to the timing of collections and pension
contributions, partially offset by higher tax payments.
In the third quarter 2012, the Company repurchased 2.2 million
shares of common stock for $125
million as part of its previously announced share repurchase
program. Year-to-date 2012, the Company repurchased 14.1 million
shares of common stock for $725
million.
The Company ended the third quarter 2012 with $1.0 billion of net debt. Net debt is defined as
total debt less cash and cash equivalents and short-term
investments.
Summary
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
%
|
|
Nine
Months
|
|
%
|
($ in
millions, except per share data)
|
2012
|
|
2011
|
|
Change
|
|
2012
|
|
2011
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
6,045
|
|
|
$
|
6,116
|
|
|
-1%
|
|
$
|
17,975
|
|
|
$
|
18,369
|
|
|
-2%
|
Income
from Continuing Operations attributable to
Raytheon Company
|
$
|
501
|
|
|
$
|
498
|
|
|
1%
|
|
$
|
1,423
|
|
|
$
|
1,309
|
|
|
9%
|
Adjusted
Income*
|
$
|
532
|
|
|
$
|
487
|
|
|
9%
|
|
$
|
1,545
|
|
|
$
|
1,473
|
|
|
5%
|
EPS from
Continuing Operations
|
$
|
1.51
|
|
|
$
|
1.42
|
|
|
6%
|
|
$
|
4.24
|
|
|
$
|
3.68
|
|
|
15%
|
Adjusted
EPS*
|
$
|
1.60
|
|
|
$
|
1.39
|
|
|
15%
|
|
$
|
4.61
|
|
|
$
|
4.13
|
|
|
12%
|
Operating
Cash Flow from Continuing Operations
|
$
|
1,111
|
|
|
$
|
845
|
|
|
|
|
$
|
963
|
|
|
$
|
816
|
|
|
|
Workdays
in Fiscal Reporting Calendar
|
63
|
|
|
63
|
|
|
|
|
191
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
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. Q3 2011 Adjusted Income also excludes the favorable
tax settlement discussed above. Adjusted Income and Adjusted EPS
are non-GAAP financial measures. See attachment F for a
reconciliation of these measures and a discussion of why the
Company is presenting this information.
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings and Backlog
Bookings
|
|
|
|
|
|
|
|
|
($ in
millions)
|
3rd
Quarter
|
|
Nine
Months
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Bookings
|
$
|
7,293
|
|
|
$
|
6,884
|
|
|
$
|
18,612
|
|
|
$
|
19,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
|
|
|
($ in
millions)
|
Period
Ending
|
|
|
Q3
2012
|
|
2011
|
|
Q3
2011
|
|
Backlog
|
$
|
35,015
|
|
|
$
|
35,312
|
|
|
$
|
34,985
|
|
|
Funded
Backlog
|
$
|
22,886
|
|
|
$
|
22,462
|
|
|
$
|
21,734
|
|
|
The Company had bookings of $7.3
billion in the third quarter 2012 and had a period ending
backlog of $35.0 billion.
Outlook
The Company has updated its full-year 2012 outlook. Charts
containing additional information on the Company's 2012 outlook are
available on the Company's website at
www.raytheon.com/ir.
2012
Financial Outlook
|
|
|
|
|
|
|
Current
|
|
Prior
(7/26/12)
|
Net Sales
($B)
|
|
24.3
- 24.7*
|
|
24.5 -
25.0
|
FAS/CAS
Adjustment ($M)
|
|
(252)*
|
|
(284)
|
Interest
Expense, net ($M)
|
|
(190) -
(200)
|
|
(190) -
(200)
|
Diluted
Shares (M)
|
|
334 -
335
|
|
334
- 335
|
Effective
Tax Rate
|
|
~32%
|
|
~32%
|
EPS from
Continuing Operations
|
|
$5.36 - $5.46*
|
|
$5.15 -
$5.30
|
Adjusted
EPS**
|
|
$5.85 - $5.95*
|
|
$5.70 -
$5.85
|
Operating
Cash Flow from Continuing Operations ($B)
|
|
1.8
- 2.0*
|
|
1.7
- 1.9
|
|
|
|
|
|
*
Denotes change from prior guidance.
|
|
|
|
|
**
Adjusted EPS is a non-GAAP financial measure. See attachment F for
a reconciliation of this measure and a discussion of why the
Company is presenting this information.
|
Although it remains uncertain if sequestration under the Budget
Control Act (BCA) will be implemented, sequestration could have a
significant impact on the U.S. Military, the Aerospace and Defense
Industry and Federal spending. Several industry associations
estimate that sequestration, if implemented, could have a severe
impact on U.S. Aerospace and Defense Industry employment
nationwide. We believe that Raytheon's large international market
presence, portfolio of programs, technology and focus on high
priority areas should help to mitigate some of the potential
overall impact.
Segment Results
The Company's reportable segments are: Integrated Defense
Systems, Intelligence and Information Systems, Missile Systems,
Network Centric Systems, Space and Airborne Systems, and Technical
Services.
Integrated Defense Systems
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Net
Sales
|
$
|
1,275
|
|
|
$
|
1,176
|
|
|
8%
|
|
$
|
3,716
|
|
|
$
|
3,667
|
|
|
1%
|
Operating
Income
|
$
|
240
|
|
|
$
|
204
|
|
|
18%
|
|
$
|
692
|
|
|
$
|
600
|
|
|
15%
|
Operating
Margin
|
18.8%
|
|
|
17.3%
|
|
|
|
|
18.6%
|
|
|
16.4%
|
|
|
|
Integrated Defense Systems (IDS) had third quarter 2012 net
sales of $1,275 million, up 8 percent
compared to $1,176 million in the
third quarter 2011. The increase in net sales was primarily due to
higher sales on an international Patriot program. IDS recorded
$240 million of operating income
compared to $204 million in the third
quarter 2011. The increase in operating income was primarily due to
favorable contract mix and higher volume in the third quarter
2012.
During the quarter, IDS booked $123
million for the Upgraded Early Warning Radar (UEWR) system
for the Missile Defense Agency (MDA) and the U.S. Air Force.
IDS also booked $84 million to
provide air and missile defense capability for the U.S. Army.
Intelligence and Information
Systems
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011*
|
|
%
Change
|
Net
Sales
|
$
|
742
|
|
|
$
|
760
|
|
|
-2%
|
|
$
|
2,257
|
|
|
$
|
2,262
|
|
|
-
|
Operating
Income
|
$
|
60
|
|
|
$
|
58
|
|
|
3%
|
|
$
|
183
|
|
|
$
|
85
|
|
|
NM
|
Operating
Margin
|
8.1%
|
|
|
7.6%
|
|
|
|
|
8.1%
|
|
|
3.8%
|
|
|
|
|
* First
quarter 2011 included an $80 million reduction to operating income
due to the UKBA LOC Adjustment as described in attachment
F.
|
NM -
Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence and Information Systems (IIS) had third quarter
2012 net sales of $742 million
compared to $760 million in the third
quarter 2011. IIS recorded $60
million of operating income compared to $58 million in the third quarter 2011.
During the quarter, IIS booked $170
million on a contract to provide intelligence, surveillance
and reconnaissance (ISR) support to the U.S. Air Force. IIS
also booked $559 million on a number
of classified contracts.
Missile
Systems
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Net
Sales
|
$
|
1,443
|
|
|
$
|
1,413
|
|
|
2%
|
|
$
|
4,149
|
|
|
$
|
4,108
|
|
|
1%
|
Operating
Income
|
$
|
189
|
|
|
$
|
178
|
|
|
6%
|
|
$
|
538
|
|
|
$
|
484
|
|
|
11%
|
Operating
Margin
|
13.1%
|
|
|
12.6%
|
|
|
|
|
13.0%
|
|
|
11.8%
|
|
|
|
Missile Systems (MS) had third quarter 2012 net sales of
$1,443 million compared to
$1,413 million in the third quarter
2011. The increase in net sales was primarily driven by higher
sales on the Standard Missile 3 (SM-3) program. MS recorded
$189 million of operating income
compared to $178 million in the third
quarter 2011. The increase in operating income was primarily due to
improved program performance.
During the quarter, MS booked $1,242
million for the production and development of SM-3 for the
Missile Defense Agency (MDA). MS also booked $350 million for the production of Tube-launched,
Optically-tracked, Wireless-guided (TOW) missiles for the U.S. Army
and Marines, $101 million for Phalanx
weapon systems for the U.S. Navy and an international customer, and
$87 million on Miniature Air-Launch
Decoy (MALD®) for the U.S. Air Force.
Network
Centric Systems
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Net
Sales
|
$
|
963
|
|
|
$
|
1,104
|
|
|
-13%
|
|
$
|
2,925
|
|
|
$
|
3,360
|
|
|
-13%
|
Operating
Income
|
$
|
131
|
|
|
$
|
162
|
|
|
-19%
|
|
$
|
370
|
|
|
$
|
492
|
|
|
-25%
|
Operating
Margin
|
13.6%
|
|
|
14.7%
|
|
|
|
|
12.6%
|
|
|
14.6%
|
|
|
|
Network Centric Systems (NCS) had third quarter 2012 net sales
of $963 million compared to
$1,104 million in the third quarter
2011. The change in net sales, as expected, was primarily due to
lower sales on U.S. Army production programs. NCS recorded
$131 million of operating income
compared to $162 million in the third
quarter 2011. The change in operating income was primarily due to a
change in contract mix and lower volume in the third quarter
2012.
During the quarter, NCS booked $70
million on the Family of Advanced Beyond-Line-of-Sight
Terminals (FAB-T) program for the U.S. Air Force.
Space
and Airborne Systems
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Net
Sales
|
$
|
1,322
|
|
|
$
|
1,305
|
|
|
1%
|
|
$
|
3,956
|
|
|
$
|
3,914
|
|
|
1%
|
Operating
Income
|
$
|
190
|
|
|
$
|
171
|
|
|
11%
|
|
$
|
567
|
|
|
$
|
503
|
|
|
13%
|
Operating
Margin
|
14.4%
|
|
|
13.1%
|
|
|
|
|
14.3%
|
|
|
12.9%
|
|
|
|
Space and Airborne Systems (SAS) had third quarter 2012 net
sales of $1,322 million compared to
$1,305 million in the third quarter
2011. SAS recorded $190 million of
operating income compared to $171
million in the third quarter 2011. The increase in operating
income was primarily due to a change in contract mix and improved
program performance.
During the quarter, SAS booked $105
million for an international sensor program. SAS also booked
$382 million on a number of
classified contracts.
Technical Services
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
Nine
Months
|
|
|
($ in
millions)
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Net
Sales
|
$
|
785
|
|
|
$
|
817
|
|
|
-4%
|
|
$
|
2,408
|
|
|
$
|
2,467
|
|
|
-2%
|
Operating
Income
|
$
|
64
|
|
|
$
|
75
|
|
|
-15%
|
|
$
|
210
|
|
|
$
|
228
|
|
|
-8%
|
Operating
Margin
|
8.2%
|
|
|
9.2%
|
|
|
|
|
8.7%
|
|
|
9.2%
|
|
|
|
Technical Services (TS) had third quarter 2012 net sales of
$785 million compared to $817 million in the third quarter 2011. The
change in net sales was due to lower net sales on a National
Science Foundation (NSF) Polar contract, which was completed in the
first quarter 2012. TS recorded operating income of $64 million compared to $75 million in the third quarter 2011.
During the quarter, TS booked $246
million for work on the Air Traffic Control Optimum Training
Solution (ATCOTS) contract for the Federal Aviation Administration
(FAA). TS also booked $252 million on
domestic training programs and $137
million on foreign training programs in support of
Warfighter FOCUS activities.
About Raytheon
Raytheon Company, with 2011 sales of $25
billion and 71,000 employees worldwide, is a technology and
innovation leader specializing in defense, homeland security and
other government markets throughout the world. With a history of
innovation spanning 90 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 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 at @raytheon.
Conference Call on the Third Quarter 2012 Financial
Results
Raytheon's financial results conference call will be held on
Thursday, October 25, 2012 at 9 a.m.
ET. Participants will include William H. Swanson, Chairman and CEO;
David C. Wajsgras, senior vice
president and CFO; and other Company executives.
The dial-in number for the conference call will be (866)
510-0712 in the U.S. or (617) 597-5380 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. 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
Budget Control Act of 2011, 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 ability to comply with extensive
governmental regulation, including import and export policies, the
Foreign Corrupt Practices Act, the International Traffic in Arms
Regulations, 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 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; 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
|
|
|
|
|
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share amounts)
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
6,045
|
|
|
$
|
6,116
|
|
|
$
|
17,975
|
|
|
$
|
18,369
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
4,689
|
|
|
4,815
|
|
|
14,000
|
|
|
14,646
|
|
Administrative and selling expenses
|
|
389
|
|
|
426
|
|
|
1,198
|
|
|
1,288
|
|
Research
and development expenses
|
|
181
|
|
|
153
|
|
|
543
|
|
|
454
|
|
Total
operating expenses
|
|
5,259
|
|
|
5,394
|
|
|
15,741
|
|
|
16,388
|
|
Operating
income
|
|
786
|
|
|
722
|
|
|
2,234
|
|
|
1,981
|
|
Non-operating (income) expense, net
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
49
|
|
|
41
|
|
|
149
|
|
|
127
|
|
Interest
income
|
|
(3)
|
|
|
(5)
|
|
|
(6)
|
|
|
(12)
|
|
Other
(income) expense
|
|
(5)
|
|
|
14
|
|
|
(10)
|
|
|
15
|
|
Total
non-operating (income) expense, net
|
|
41
|
|
|
50
|
|
|
133
|
|
|
130
|
|
Income
from continuing operations before taxes
|
|
745
|
|
|
672
|
|
|
2,101
|
|
|
1,851
|
|
Federal
and foreign income taxes
|
|
237
|
|
|
165
|
|
|
668
|
|
|
521
|
|
Income
from continuing operations
|
|
508
|
|
|
507
|
|
|
1,433
|
|
|
1,330
|
|
Income
(loss) from discontinued operations, net of tax
|
|
(1)
|
|
|
3
|
|
|
(4)
|
|
|
14
|
|
Net
income
|
|
507
|
|
|
510
|
|
|
1,429
|
|
|
1,344
|
|
Less: Net
income (loss) attributable to noncontrolling
|
|
|
|
|
|
|
|
|
interests
in subsidiaries
|
|
7
|
|
|
9
|
|
|
10
|
|
|
21
|
|
Net income
attributable to Raytheon Company
|
|
$
|
500
|
|
|
$
|
501
|
|
|
$
|
1,419
|
|
|
$
|
1,323
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company
common stockholders:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
1.51
|
|
|
$
|
1.42
|
|
|
$
|
4.26
|
|
|
$
|
3.70
|
|
Income
(loss) from discontinued operations, net of tax
|
|
—
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.04
|
|
Net
income
|
|
1.51
|
|
|
1.43
|
|
|
4.25
|
|
|
3.73
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company
common stockholders:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
1.51
|
|
|
$
|
1.42
|
|
|
$
|
4.24
|
|
|
$
|
3.68
|
|
Income
(loss) from discontinued operations, net of tax
|
|
—
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.04
|
|
Net
income
|
|
1.50
|
|
|
1.43
|
|
|
4.23
|
|
|
3.71
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Raytheon Company common
|
|
|
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
501
|
|
|
$
|
498
|
|
|
$
|
1,423
|
|
|
$
|
1,309
|
|
Income
(loss) from discontinued operations, net of tax
|
|
(1)
|
|
|
3
|
|
|
(4)
|
|
|
14
|
|
Net
income
|
|
$
|
500
|
|
|
$
|
501
|
|
|
$
|
1,419
|
|
|
$
|
1,323
|
|
|
|
|
|
|
|
|
|
|
Average
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
332.0
|
|
|
350.5
|
|
|
334.3
|
|
|
354.3
|
|
Diluted
|
|
333.0
|
|
|
351.4
|
|
|
335.4
|
|
|
356.4
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Preliminary Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated
Defense Systems
|
$
|
1,275
|
|
|
$
|
1,176
|
|
|
$
|
240
|
|
|
$
|
204
|
|
|
18.8
|
%
|
|
17.3
|
%
|
Intelligence and Information Systems
|
742
|
|
|
760
|
|
|
60
|
|
|
58
|
|
|
8.1
|
%
|
|
7.6
|
%
|
Missile
Systems
|
1,443
|
|
|
1,413
|
|
|
189
|
|
|
178
|
|
|
13.1
|
%
|
|
12.6
|
%
|
Network
Centric Systems
|
963
|
|
|
1,104
|
|
|
131
|
|
|
162
|
|
|
13.6
|
%
|
|
14.7
|
%
|
Space and
Airborne Systems
|
1,322
|
|
|
1,305
|
|
|
190
|
|
|
171
|
|
|
14.4
|
%
|
|
13.1
|
%
|
Technical
Services
|
785
|
|
|
817
|
|
|
64
|
|
|
75
|
|
|
8.2
|
%
|
|
9.2
|
%
|
FAS/CAS
Adjustment
|
—
|
|
|
—
|
|
|
(47)
|
|
|
(75)
|
|
|
|
|
|
Corporate
and Eliminations
|
(485)
|
|
|
(459)
|
|
|
(41)
|
|
|
(51)
|
|
|
|
|
|
Total
|
$
|
6,045
|
|
|
$
|
6,116
|
|
|
$
|
786
|
|
|
$
|
722
|
|
|
13.0
|
%
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net
Sales
|
|
Operating
Income
|
|
As a
Percent of Net Sales
|
|
(In
millions, except percentages)
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated
Defense Systems
|
$
|
3,716
|
|
|
$
|
3,667
|
|
|
$
|
692
|
|
|
$
|
600
|
|
|
18.6
|
%
|
|
16.4
|
%
|
Intelligence and Information Systems
|
2,257
|
|
|
2,262
|
|
|
183
|
|
|
85
|
|
|
8.1
|
%
|
|
3.8
|
%
|
Missile
Systems
|
4,149
|
|
|
4,108
|
|
|
538
|
|
|
484
|
|
|
13.0
|
%
|
|
11.8
|
%
|
Network
Centric Systems
|
2,925
|
|
|
3,360
|
|
|
370
|
|
|
492
|
|
|
12.6
|
%
|
|
14.6
|
%
|
Space and
Airborne Systems
|
3,956
|
|
|
3,914
|
|
|
567
|
|
|
503
|
|
|
14.3
|
%
|
|
12.9
|
%
|
Technical
Services
|
2,408
|
|
|
2,467
|
|
|
210
|
|
|
228
|
|
|
8.7
|
%
|
|
9.2
|
%
|
FAS/CAS
Adjustment
|
—
|
|
|
—
|
|
|
(188)
|
|
|
(254)
|
|
|
|
|
|
Corporate
and Eliminations
|
(1,436)
|
|
|
(1,409)
|
|
|
(138)
|
|
|
(157)
|
|
|
|
|
|
Total
|
$
|
17,975
|
|
|
$
|
18,369
|
|
|
$
|
2,234
|
|
|
$
|
1,981
|
|
|
12.4
|
%
|
|
10.8
|
%
|
Attachment
C
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Other
Preliminary Information
|
|
|
|
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
Funded
Backlog
|
|
Total
Backlog
|
|
30-Sep-12
|
|
31-Dec-11
|
|
30-Sep-12
|
|
31-Dec-11
|
|
|
|
|
|
|
|
|
Integrated
Defense Systems
|
$
|
6,757
|
|
|
$
|
7,100
|
|
|
$
|
8,404
|
|
|
$
|
9,766
|
|
Intelligence and Information Systems
|
1,051
|
|
|
829
|
|
|
4,002
|
|
|
4,366
|
|
Missile
Systems
|
6,436
|
|
|
6,205
|
|
|
9,784
|
|
|
8,570
|
|
Network
Centric Systems
|
3,159
|
|
|
3,267
|
|
|
3,941
|
|
|
4,160
|
|
Space and
Airborne Systems
|
3,553
|
|
|
3,104
|
|
|
6,091
|
|
|
5,864
|
|
Technical
Services
|
1,930
|
|
|
1,957
|
|
|
2,793
|
|
|
2,586
|
|
Total
|
$
|
22,886
|
|
|
$
|
22,462
|
|
|
$
|
35,015
|
|
|
$
|
35,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
Bookings
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
|
|
|
|
|
|
|
Total
Bookings
|
$
|
7,293
|
|
|
$
|
6,884
|
|
|
$
|
18,612
|
|
|
$
|
19,408
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance Sheet Information
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
30-Sep-12
|
|
31-Dec-11
|
Assets
|
|
|
|
Cash and
cash equivalents
|
$
|
3,032
|
|
|
$
|
4,000
|
|
Short-term
investments
|
614
|
|
|
—
|
|
Contracts
in process, net
|
4,789
|
|
|
4,526
|
|
Inventories
|
482
|
|
|
336
|
|
Deferred
taxes
|
83
|
|
|
221
|
|
Prepaid
expenses and other current assets
|
260
|
|
|
226
|
|
Total
current assets
|
9,260
|
|
|
9,309
|
|
|
|
|
|
Property,
plant and equipment, net
|
1,929
|
|
|
2,006
|
|
Deferred
taxes
|
720
|
|
|
657
|
|
Goodwill
|
12,546
|
|
|
12,544
|
|
Other
assets, net
|
1,242
|
|
|
1,338
|
|
Total
assets
|
$
|
25,697
|
|
|
$
|
25,854
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
Current
liabilities
|
|
|
|
Advance
payments and billings in excess of costs incurred
|
$
|
2,169
|
|
|
$
|
2,542
|
|
Accounts
payable
|
1,190
|
|
|
1,507
|
|
Accrued
employee compensation
|
1,130
|
|
|
941
|
|
Other
accrued expenses
|
1,179
|
|
|
1,140
|
|
Total
current liabilities
|
5,668
|
|
|
6,130
|
|
|
|
|
|
Accrued
retiree benefits and other long-term liabilities
|
6,192
|
|
|
6,774
|
|
Deferred
taxes
|
3
|
|
|
5
|
|
Long-term
debt
|
4,609
|
|
|
4,605
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
Common
stock
|
3
|
|
|
3
|
|
Additional
paid-in capital
|
11,900
|
|
|
11,676
|
|
Accumulated other comprehensive loss
|
(6,506)
|
|
|
(7,001)
|
|
Treasury
stock, at cost
|
(8,913)
|
|
|
(8,153)
|
|
Retained
earnings
|
12,578
|
|
|
11,656
|
|
Total
Raytheon Company stockholders' equity
|
9,062
|
|
|
8,181
|
|
Noncontrolling interests in subsidiaries
|
163
|
|
|
159
|
|
Total
equity
|
9,225
|
|
|
8,340
|
|
Total
liabilities and equity
|
$
|
25,697
|
|
|
$
|
25,854
|
|
Attachment
E
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Preliminary Cash Flow Information
|
|
|
|
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
30-Sep-12
|
|
02-Oct-11
|
|
30-Sep-12
|
|
02-Oct-11
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
507
|
|
|
$
|
510
|
|
|
$
|
1,429
|
|
|
$
|
1,344
|
|
Loss
(Income) from discontinued operations, net of tax
|
1
|
|
|
(3)
|
|
|
4
|
|
|
(14)
|
|
Income
from continuing operations
|
508
|
|
|
507
|
|
|
1,433
|
|
|
1,330
|
|
|
|
|
|
|
|
|
|
Depreciation
|
80
|
|
|
79
|
|
|
238
|
|
|
230
|
|
Amortization
|
33
|
|
|
34
|
|
|
103
|
|
|
98
|
|
Working
capital (excluding pension and income taxes)**
|
432
|
|
|
257
|
|
|
(911)
|
|
|
(873)
|
|
Other
long-term liabilities
|
(12)
|
|
|
(74)
|
|
|
(38)
|
|
|
(55)
|
|
Pension
and other postretirement benefits
|
179
|
|
|
(268)
|
|
|
120
|
|
|
(260)
|
|
Other
|
(109)
|
|
|
310
|
|
|
18
|
|
|
346
|
|
Net
operating cash flow from continuing operations
|
1,111
|
|
|
845
|
|
|
963
|
|
|
816
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
(67)
|
|
|
(90)
|
|
|
(204)
|
|
|
(197)
|
|
Internal
use software spending
|
(14)
|
|
|
(24)
|
|
|
(60)
|
|
|
(74)
|
|
Acquisitions
|
(7)
|
|
|
(1)
|
|
|
(7)
|
|
|
(551)
|
|
Dividends
|
(165)
|
|
|
(152)
|
|
|
(478)
|
|
|
(440)
|
|
Repurchases of common stock
|
(125)
|
|
|
(312)
|
|
|
(725)
|
|
|
(937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Working
capital (excluding pension and income taxes) is a summation of
changes in: contracts in process 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 Statements of
Cash Flows.
|
|
|
|
|
|
|
|
|
Attachment
F
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures - Adjusted EPS, Adjusted Income and Adjusted
Operating Margin
|
|
|
|
|
|
|
|
|
Third
Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS Non-GAAP
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2012
|
(In
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
Current
Guidance
|
|
Prior
Guidance
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
Low
end
|
|
High
end
|
|
Low
end
|
|
High
end
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
of
range
|
|
of
range
|
|
of
range
|
|
of
range
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
attributable to Raytheon Company common
stockholders
|
$
|
1.51
|
|
|
$
|
1.42
|
|
|
$
|
4.24
|
|
|
$
|
3.68
|
|
|
$
|
5.36
|
|
|
$
|
5.46
|
|
|
$
|
5.15
|
|
|
$
|
5.30
|
|
Per share
impact of the FAS/CAS Adjustment (A)
|
0.09
|
|
|
0.14
|
|
|
0.36
|
|
|
0.46
|
|
|
0.49
|
|
|
0.49
|
|
|
0.55
|
|
|
0.55
|
|
Per share
impact of the UK Border Agency (UKBA) LOC
Adjustment
(B)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Per share
impact of the favorable tax settlement (C)
|
—
|
|
|
(0.17)
|
|
|
—
|
|
|
(0.17)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted
EPS (3), (4)
|
$
|
1.60
|
|
|
$
|
1.39
|
|
|
$
|
4.61
|
|
|
$
|
4.13
|
|
|
$
|
5.85
|
|
|
$
|
5.95
|
|
|
$
|
5.70
|
|
|
$
|
5.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
47
|
|
|
$
|
75
|
|
|
$
|
188
|
|
|
$
|
254
|
|
|
$
|
252
|
|
|
$
|
252
|
|
|
$
|
284
|
|
|
$
|
284
|
|
|
|
Tax effect
(1)
|
(16)
|
|
|
(26)
|
|
|
(66)
|
|
|
(89)
|
|
|
(88)
|
|
|
(88)
|
|
|
(99)
|
|
|
(99)
|
|
|
After-tax
impact
|
31
|
|
|
49
|
|
|
122
|
|
|
165
|
|
|
164
|
|
|
164
|
|
|
185
|
|
|
185
|
|
|
Diluted
shares
|
333.0
|
|
|
351.4
|
|
|
335.4
|
|
|
356.4
|
|
|
335.0
|
|
|
334.0
|
|
|
335.0
|
|
|
334.0
|
|
|
Per share
impact
|
$
|
0.09
|
|
|
$
|
0.14
|
|
|
$
|
0.36
|
|
|
$
|
0.46
|
|
|
$
|
0.49
|
|
|
$
|
0.49
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
UKBA LOC
Adjustment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Tax effect
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
After-tax
impact
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
—
|
|
|
356.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
Favorable
tax settlement
|
$
|
—
|
|
|
$
|
(60)
|
|
|
$
|
—
|
|
|
$
|
(60)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Diluted
shares
|
—
|
|
|
351.4
|
|
|
—
|
|
|
356.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
(0.17)
|
|
|
$
|
—
|
|
|
$
|
(0.17)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Non-GAAP
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Income
from continuing operations attributable to Raytheon
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
common stockholders
|
$
|
501
|
|
|
$
|
498
|
|
|
$
|
1,423
|
|
|
$
|
1,309
|
|
|
|
|
|
|
|
|
|
FAS/CAS
Adjustment (1)
|
31
|
|
|
49
|
|
|
122
|
|
|
165
|
|
|
|
|
|
|
|
|
|
UKBA LOC
Adjustment (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
|
|
|
|
|
|
|
Favorable
tax settlement
|
—
|
|
|
(60)
|
|
|
—
|
|
|
(60)
|
|
|
|
|
|
|
|
|
|
Adjusted
Income (3), (5)
|
$
|
532
|
|
|
$
|
487
|
|
|
$
|
1,545
|
|
|
$
|
1,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Margin Non-GAAP
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Guidance
|
|
Prior
Guidance
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
Low
end
|
|
High
end
|
|
Low
end
|
|
High
end
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
of
range
|
|
of
range
|
|
of
range
|
|
of
range
|
Operating
Margin
|
13.0
|
%
|
|
11.8
|
%
|
|
12.4
|
%
|
|
10.8
|
%
|
|
11.8
|
%
|
|
12.0
|
%
|
|
11.3
|
%
|
|
11.5
|
%
|
Impact of
the FAS/CAS Adjustment
|
0.8
|
%
|
|
1.2
|
%
|
|
1.0
|
%
|
|
1.4
|
%
|
|
1.0
|
%
|
|
1.0
|
%
|
|
1.2
|
%
|
|
1.2
|
%
|
Impact of
the UKBA LOC Adjustment
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Adjusted
Operating Margin (3), (6)
|
13.8
|
%
|
|
13.0
|
%
|
|
13.5
|
%
|
|
12.6
|
%
|
|
12.8
|
%
|
|
13.0
|
%
|
|
12.5
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Tax
effected at 35% federal statutory tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Tax
effected at approximately 27% blended global tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Adjusted
EPS is diluted EPS from continuing operations attributable to
Raytheon Company common stockholders excluding the EPS impact of
the FAS/CAS Adjustment and, from time to time, certain other items.
In addition to the FAS/CAS Adjustment, nine months ended 2011
Adjusted EPS also excludes the impact of the UKBA LOC Adjustment,
as previously disclosed. This adjustment was based on the UKBA's
decision to draw down on the previously disclosed letters of credit
provided by Raytheon Systems Limited (RSL). The determination of
the validity of the draw down is now a subject of the ongoing
arbitration proceedings related to the UKBA program. Three months
and nine months ended 2011 Adjusted EPS also excludes the earnings
per share impact of a favorable tax settlement in the third quarter
of 2011 as a result of our receipt of final approval from the IRS
and the U.S. Congressional Joint Committee on Taxation of the IRS
examination of our tax returns for the 2006-2008 tax
years.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
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. In addition to the FAS/CAS Adjustment, nine months ended
2011 Adjusted Income also excludes the after-tax impact of the UKBA
LOC Adjustment, as described above. Three months and nine months
ended 2011 Adjusted Income also excludes the impact of the
favorable tax settlement in the third quarter of 2011, as described
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
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. In addition to the FAS/CAS Adjustment, nine
months ended 2011 Adjusted Operating Margin also excludes the
impact of the UKBA LOC Adjustment, as described above.
|
|
Investor Relations Contact
|
|
Todd
Ernst
|
781.522.5141
|
|
Media
Contact
|
Jon
Kasle
|
781.522.5110
|
SOURCE Raytheon Company