WALTHAM, Mass., Jan. 25, 2018 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) today announced net sales for the fourth
quarter 2017 of $6.8 billion, up 8.0
percent compared to $6.3 billion in
the fourth quarter 2016. Fourth quarter 2017 EPS from continuing
operations was $1.35 compared to
$1.87 in the fourth quarter 2016.
Fourth quarter and full-year 2017 included an unfavorable
$0.59 provisional tax-related impact
due to the enactment of the Tax Cuts and Jobs Act of 2017.
In addition, the company made a $1.0
billion pretax discretionary pension plan contribution in
the fourth quarter 2017, which had an unfavorable tax-related EPS
impact of $0.09 and was not included
in the company's prior guidance. The company made a $500 million pretax discretionary pension plan
contribution in the fourth quarter 2016, which had an unfavorable
tax-related EPS impact of $0.04.
Net sales in 2017 were $25.3
billion, up 5.1 percent compared to $24.1 billion in 2016. Full-year 2017 EPS from
continuing operations was $6.94
compared to $7.55 for the full-year
2016.
"Raytheon delivered record sales and strong cash flow in 2017
reflecting the continued hard work and dedication of the Raytheon
team," said Thomas A. Kennedy,
Raytheon Chairman and CEO. "Bookings strength across our broad
portfolio of proven technology solutions positions the company well
for the future."
The company generated strong operating cash flow for both the
fourth quarter and full-year. Operating cash flow from continuing
operations for the fourth quarter 2017 and full-year 2017 was
$1.6 billion and $2.7 billion, respectively, after making the
$1.0 billion pretax discretionary
cash contribution to the company's pension plans. Operating
cash flow from continuing operations for the fourth quarter 2016
and full-year 2016 was $1.1 billion
and $2.9 billion, respectively, after
making the $500 million pretax
discretionary pension contribution. Operating cash flow in the
fourth quarter and full-year 2017, excluding the $1.0 billion pretax discretionary pension
contribution, was better than the company's prior guidance
primarily due to favorable collections.
In the fourth quarter 2017, the company repurchased 0.5 million
shares of common stock for $100
million. For the full-year 2017, the company repurchased 4.9
million shares of common stock for $800
million. Also, as previously announced in November 2017, the company's Board of Directors
authorized the repurchase of up to an additional $2.0 billion of the company's outstanding common
stock.
The company had bookings of $8.5
billion in the fourth quarter 2017, resulting in a
book-to-bill ratio of 1.26. Fourth quarter 2016 bookings were
$7.6 billion. Full-year 2017 bookings
were $27.7 billion, resulting in a
book-to-bill ratio of 1.09. Full-year 2016 bookings were
$27.8 billion.
Summary Financial
Results
|
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4th
Quarter
|
%
|
Twelve
Months
|
%
|
|
($ in millions,
except per share data)
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
|
|
|
|
|
|
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Bookings
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$
|
8,541
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$
|
7,582
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12.6%
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$
|
27,718
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$
|
27,809
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-0.3%
|
|
Net Sales
|
$
|
6,783
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$
|
6,279
|
8.0%
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$
|
25,348
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$
|
24,124
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5.1%
|
|
Income from
Continuing Operations before Taxes
|
$
|
834
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$
|
825
|
1.1%
|
$
|
3,113
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$
|
3,0853
|
0.9%
|
|
Federal and Foreign
Income Taxes
|
$
|
4471
|
$
|
2722
|
64.3%
|
$
|
1,1141
|
$
|
8732
|
27.6%
|
|
Income from
Continuing Operations attributable to
|
|
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|
|
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|
Raytheon
Company
|
$
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3931
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$
|
5552
|
-29.2%
|
$
|
2,0221
|
$
|
2,2432,3
|
-9.9%
|
|
EPS from Continuing
Operations
|
$
|
1.351
|
$
|
1.872
|
-27.8%
|
$
|
6.941
|
$
|
7.552,3
|
-8.1%
|
|
Operating Cash Flow
from Continuing Operations
|
$
|
1,624
|
$
|
1,141
|
|
$
|
2,747
|
$
|
2,852
|
|
|
Workdays in Fiscal
Reporting Calendar
|
58
|
57
|
|
248
|
249
|
|
|
1
Fourth quarter and twelve months 2017 Federal and Foreign Income
Taxes and Income from Continuing Operations attributable to
Raytheon Company included: 1) a provisional tax-related expense of
approximately $171 million due to the enactment of the Tax Cuts and
Jobs Act of 2017, which had an EPS impact of $0.59, and 2) a $25
million unfavorable tax-related impact due to the $1.0 billion
discretionary pension plan contribution, which had an EPS impact of
$0.09.
|
|
2
Fourth quarter and twelve months 2016 Federal and Foreign Income
Taxes and Income from Continuing Operations attributable to
Raytheon Company included a $13 million unfavorable tax-related
impact due to the $0.5 billion discretionary pension plan
contribution, which had an EPS impact of $0.04.
|
|
3
Twelve months 2016 Income from Continuing Operations before
Taxes and Income from Continuing Operations attributable to
Raytheon Company included the tax-free gain of $158 million for the
second quarter 2016 TRS transaction, which had a favorable EPS
impact of $0.53.
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|
Backlog at the end of 2017 was $38.2
billion, an increase of approximately $1.5 billion or 4 percent compared to the end of
2016.
Backlog
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Period
Ending
|
($ in
millions)
|
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2017
|
2016
|
Backlog
|
|
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|
|
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|
|
|
|
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|
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|
|
|
$
|
38,210
|
$
|
36,709
|
|
|
|
|
|
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|
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Outlook
The company has provided its financial outlook for 2018. Charts
containing additional information on the company's 2018 outlook are
available on the company's website.
Effective January 1, 2018, the
company adopted the new retirement benefit standard, which moves
certain components of FAS pension and postretirement benefit
expense from operating to non-operating income. The adoption of
this standard increases operating income due to the removal of all
components of FAS expense other than service cost, and decreases
non-operating income by the same amount with no impact to net
income. The standard does not impact our CAS expense, which is
recorded in the results of each segment. As a result, our FAS/CAS
Adjustment will be split into: FAS/CAS Operating Adjustment; and
Other Pension Expense within non-operating. The 2017 Actuals - New
Standard and the 2018 columns in the Financial Outlook table below
reflect the adoption of the standard.
2018 Financial
Outlook
|
|
|
|
|
|
|
2017
Actual
|
|
2018
|
|
As
Reported
|
|
New
Standard1
|
|
Outlook1
|
Net Sales
($B)
|
25.3
|
|
25.3
|
|
26.4 -
26.9
|
Deferred Revenue
Adjustment ($M)2
|
(35)
|
|
(35)
|
|
(10)
|
Amortization of
Acquired Intangibles ($M)2
|
(125)
|
|
(125)
|
|
(118)
|
FAS/CAS Adjustment
($M)
|
390
|
|
n/a
|
|
n/a
|
FAS/CAS
Operating Adjustment ($M)
|
n/a
|
|
1,303
|
|
1,416
|
Other
Pension Expense, non-operating ($M)
|
n/a
|
|
(913)
|
|
(958)
|
Interest Expense, net
($M)
|
(184)
|
|
(184)
|
|
(180) -
(185)
|
Diluted Shares
(M)
|
291
|
|
291
|
|
287 - 289
|
Effective Tax
Rate3
|
35.8%
|
|
35.8%
|
|
~19.0%
|
EPS from Continuing
Operations3
|
$6.94
|
|
$6.94
|
|
$9.55 -
$9.75
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.7
|
|
2.7
|
|
3.6 -
4.0
|
n/a = Not
Applicable
|
|
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1
Effective January 1, 2018, the company adopted the new
retirement benefit standard, Accounting Standards Update 2017-07.
The 2017 Actuals - New Standard and the 2018 Outlook above reflect
this change.
|
2
Deferred Revenue Adjustment and Amortization of Acquired
Intangibles represent the unfavorable impact of the acquisition
accounting adjustments to record acquired deferred revenue at fair
value and the amortization of acquired intangible assets for all
business segments.
|
3
2017 and 2018 effective tax rate reflect the enactment of the
Tax Cuts and Jobs Act of 2017. 2017 was impacted unfavorably by a
provisional amount of approximately $171 million, which had an
impact to the 2017 rate of 5.5 percent and an EPS impact of
$0.59.
|
Segment Results
The company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); Space and Airborne Systems (SAS); and
Forcepoint™.
Integrated Defense
Systems
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
2017
|
2016
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,553
|
$
|
1,460
|
6%
|
$
|
5,804
|
$
|
5,529
|
5%
|
|
Operating
Income1
|
|
|
$
|
247
|
$
|
238
|
4%
|
$
|
935
|
$
|
971
|
NM
|
|
Operating
Margin1
|
|
|
15.9%
|
16.3%
|
|
16.1%
|
17.6%
|
|
|
1
Twelve months 2016 operating income and operating margin include
the $158 million tax-free gain from the second
quarter 2016 ThalesRaytheonSystems (TRS)
transaction.
|
NM = Not
Meaningful
|
Integrated Defense Systems (IDS) had fourth quarter 2017 net
sales of $1,553 million, up 6 percent
compared to $1,460 million in the
fourth quarter 2016. IDS had full-year 2017 net sales of
$5,804 million compared to
$5,529 million in 2016. The increase
in net sales for both the quarter and the full-year was primarily
driven by higher net sales on an international early warning radar
program.
IDS recorded $247 million of
operating income in the fourth quarter 2017 compared to
$238 million in the fourth quarter
2016. The increase in operating income for the quarter was
primarily driven by higher volume and a favorable change in program
mix. IDS recorded $935 million of
operating income in 2017 compared to $971
million in 2016. The change in operating income for the
full-year was primarily driven by a favorable change in
program mix, higher net program efficiencies and higher volume,
which was more than offset by the $158
million tax-free gain from the ThalesRaytheonSystems (TRS)
transaction in the second quarter 2016.
During the quarter, IDS booked $304
million on an Early Warning Surveillance Radar System
(EWSRS) support program for an international customer; $280 million to provide Consolidated Contractor
Logistics Support (CCLS) for the Missile Defense Agency (MDA);
$264 million to provide advanced
Patriot Air and Missile Defense system capabilities for
international customers; and $81
million on the Army Navy/Transportable Radar
Surveillance-Model 2 (AN/TPY-2) radar sustainment program for the
MDA.
Shortly after the quarter close, as previously announced, IDS
received a direct commercial contract worth more than $1.5 billion to provide Patriot Air and Missile
Defense system capability to a member of the 14-nation Patriot
partnership.
Intelligence,
Information and Services
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
2017
|
2016
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,572
|
$
|
1,516
|
4%
|
$
|
6,177
|
$
|
6,169
|
-
|
|
Operating
Income
|
|
|
$
|
117
|
$
|
120
|
-3%
|
$
|
455
|
$
|
467
|
-3%
|
|
Operating
Margin
|
|
|
7.4%
|
7.9%
|
|
7.4%
|
7.6%
|
|
|
Intelligence, Information and Services (IIS) had fourth quarter
2017 net sales of $1,572 million, up
4 percent compared to $1,516 million
in the fourth quarter 2016. The increase in net sales for the
quarter was primarily driven by higher net sales on a U.S. Air
Force program and classified programs. IIS had full-year 2017 net
sales of $6,177 million compared to
$6,169 million in 2016.
IIS recorded $117 million of
operating income in the fourth quarter 2017 compared to
$120 million in the fourth quarter
2016. IIS recorded $455 million of
operating income in 2017 compared to $467
million in 2016.
During the quarter, IIS booked $244
million on domestic and foreign training programs in support
of Warfighter FOCUS activities; $233
million to upgrade the Phalanx® Closed-In Weapon
System (CIWS) for the Royal Canadian Navy; $98 million on the Development, Operations and
Maintenance (DOMino) Cyber program for the Department of Homeland
Security (DHS); $97 million on the
Standard Terminal Automation Replacement System (STARS) program for
the Federal Aviation Administration (FAA); and $77 million to support the Naval Communication
Station, Harold E. Holt facility for
Australia. IIS also booked
$410 million on a number of
classified contracts.
Missile
Systems
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
2017
|
2016
|
%
Change
|
|
Net Sales
|
|
|
$
|
2,185
|
$
|
1,897
|
15%
|
$
|
7,787
|
$
|
7,096
|
10%
|
|
Operating
Income
|
|
|
$
|
278
|
$
|
261
|
7%
|
$
|
1,010
|
$
|
921
|
10%
|
|
Operating
Margin
|
|
|
12.7%
|
13.8%
|
|
13.0%
|
13.0%
|
|
|
Missile Systems (MS) had fourth quarter 2017 net sales of
$2,185 million, up 15 percent
compared to $1,897 million in the
fourth quarter 2016. The increase in net sales for the quarter was
primarily driven by higher net sales on the Advanced Medium-Range
Air-to-Air Missiles (AMRAAM®), Standard Missile-3
(SM-3®) and Paveway™ programs. MS had full-year 2017 net
sales of $7,787 million compared to
$7,096 million in 2016. The increase
in net sales for the full-year was primarily driven by higher net
sales on the Paveway, SM-3 and Standard Missile-2 (SM-2)
programs.
MS recorded $278 million of
operating income in the fourth quarter 2017 compared to
$261 million in the fourth quarter
2016. MS recorded $1,010 million of
operating income in 2017 compared to $921
million in 2016. The increase in operating income for both
the quarter and the full-year was primarily due to higher volume in
2017.
During the quarter, MS booked $1,132
million for Paveway; $696
million for AMRAAM; $423
million for the Joint Standoff Weapon (JSOW®);
$269 million for Tomahawk;
$109 million for Phalanx CIWS;
$107 million for SM-3; $80 million for the Mobile Range program; and
$77 million for Horizontal Technology
Integration (HTI) forward-looking infrared kits. MS also booked
$310 million on a number of
classified contracts.
Space and Airborne
Systems
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
2017
|
2016
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,670
|
$
|
1,600
|
4%
|
$
|
6,430
|
$
|
6,182
|
4%
|
|
Operating
Income
|
|
|
$
|
242
|
$
|
221
|
10%
|
$
|
862
|
$
|
808
|
7%
|
|
Operating
Margin
|
|
|
14.5%
|
13.8%
|
|
13.4%
|
13.1%
|
|
|
Space and Airborne Systems (SAS) had fourth quarter 2017 net
sales of $1,670 million, up 4 percent
compared to $1,600 million in the
fourth quarter 2016. The increase in net sales for the quarter was
primarily due to higher net sales on airborne radar programs. SAS
had full-year 2017 net sales of $6,430
million compared to $6,182
million in 2016. The increase in net sales for the full-year
was primarily due to higher net sales on an electronic warfare
systems program and a domestic classified program.
SAS recorded $242 million of
operating income in the fourth quarter 2017 compared to
$221 million in the fourth quarter
2016. SAS recorded $862 million of
operating income in 2017 compared to $808
million in 2016. The change in operating income for the
quarter and full-year was primarily driven by higher volume in 2017
and a favorable change in program mix.
During the quarter, SAS booked $411
million on a number of classified contracts.
Forcepoint
|
|
|
|
|
|
4th
Quarter
|
|
Twelve
Months
|
|
|
($ in
millions)
|
|
|
|
2017
|
2016
|
%
Change
|
2017
|
2016
|
%
Change
|
|
Net Sales
|
|
|
|
$
|
156
|
$
|
143
|
9%
|
$
|
608
|
$
|
586
|
4%
|
|
Operating
Income
|
|
|
|
$
|
(8)
|
$
|
21
|
NM
|
$
|
33
|
$
|
90
|
NM
|
|
Operating
Margin
|
|
|
|
(5.1)%
|
14.7%
|
|
5.4%
|
15.4%
|
|
|
NM = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
Forcepoint had fourth quarter 2017 net sales of $156 million compared to $143 million in the fourth quarter 2016.
Forcepoint had full-year 2017 net sales of $608 million compared to $586 million in 2016.
Forcepoint recorded a loss of $8
million in the fourth quarter 2017 compared to operating
income of $21 million in the fourth
quarter 2016. Forcepoint recorded $33
million of operating income in 2017 compared to $90 million in 2016. The decrease in operating
income for both the quarter and the full-year was primarily driven
by higher selling and marketing costs.
About Raytheon
Raytheon Company, with 2017 sales of
$25 billion and 64,000 employees, is
a technology and innovation leader specializing in defense, civil
government and cybersecurity solutions. With a history of
innovation spanning 96 years, Raytheon provides state-of-the-art
electronics, mission systems integration, C5I™ products and
services, sensing, effects, and mission support for customers in
more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts. Follow us on
Twitter.
Conference Call on the Fourth Quarter and Full-Year 2017
Financial Results
Raytheon's financial results conference
call will be held on Thursday, January 25,
2018 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)
280-4958 in the U.S. or (857) 244-7315 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, a government shutdown, or
otherwise, uncertain funding of programs, potential termination of
contracts and performance under undefinitized contract awards;
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, including export and import
requirements such as the International Traffic in Arms Regulations
and the Export Administration Regulations, anti-bribery and
anti-corruption requirements including the Foreign Corrupt
Practices Act, industrial cooperation agreement obligations, and
procurement and other regulations; the ability to obtain timely
U.S. government approvals for international contracts; changes in
government procurement practices; the impact of competition; the
ability to develop products and technologies, and the impact of
associated investments and costs; the ability to recruit and retain
qualified personnel; the impact of potential security and cyber
threats, and other disruptions; the risk that actual pension
returns, discount rates or other actuarial assumptions, including
the long-term return on asset assumption, are significantly
different than the company's current 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; risks associated with acquisitions, investments,
dispositions, joint ventures and other business arrangements; the
ability to grow in the government and commercial cybersecurity
markets; risks of an impairment of goodwill or other intangible
assets; the impact of financial markets and global economic
conditions; the use of accounting estimates in the company's
financial statements, including with respect to the provisional
impact of the Tax Cuts and Jobs Act of 2017; the outcome of
contingencies and litigation matters, including government
investigations; the risk of environmental liabilities; 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.
Attachment
A
Raytheon
Company
Preliminary Statement
of Operations Information
Fourth Quarter
2017
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,783
|
|
|
$
|
6,279
|
|
|
$
|
25,348
|
|
|
$
|
24,124
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
5,171
|
|
|
4,688
|
|
|
19,076
|
|
|
17,965
|
|
|
General and
administrative expenses
|
|
742
|
|
|
711
|
|
|
2,954
|
|
|
2,864
|
|
|
Total operating
expenses
|
|
5,913
|
|
|
5,399
|
|
|
22,030
|
|
|
20,829
|
|
|
Operating
income
|
|
870
|
|
|
880
|
|
|
3,318
|
|
|
3,295
|
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
48
|
|
|
58
|
|
|
205
|
|
|
232
|
|
|
Interest
income
|
|
(7)
|
|
|
(4)
|
|
|
(21)
|
|
|
(16)
|
|
|
Other (income)
expense, net
|
|
(5)
|
|
|
1
|
|
|
21
|
|
|
(6)
|
|
|
Total non-operating
(income) expense, net
|
|
36
|
|
|
55
|
|
|
205
|
|
|
210
|
|
|
Income from
continuing operations before taxes
|
|
834
|
|
|
825
|
|
|
3,113
|
|
|
3,085
|
|
|
Federal and foreign
income taxes
|
|
447
|
|
|
272
|
|
|
1,114
|
|
|
873
|
|
|
Income from
continuing operations
|
|
387
|
|
|
553
|
|
|
1,999
|
|
|
2,212
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
Net income
|
|
387
|
|
|
553
|
|
|
2,001
|
|
|
2,213
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
|
in
subsidiaries
|
|
(6)
|
|
|
(2)
|
|
|
(23)
|
|
|
(31)
|
|
|
Net income
attributable to Raytheon Company
|
|
$
|
393
|
|
|
$
|
555
|
|
|
$
|
2,024
|
|
|
$
|
2,244
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Raytheon Company
|
|
|
|
|
|
|
|
|
|
common
stockholders:
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.35
|
|
|
$
|
1.88
|
|
|
$
|
6.95
|
|
|
$
|
7.55
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
Net income
|
|
1.35
|
|
|
1.88
|
|
|
6.96
|
|
|
7.56
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Raytheon Company
|
|
|
|
|
|
|
|
|
|
common
stockholders:
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.35
|
|
|
$
|
1.87
|
|
|
$
|
6.94
|
|
|
$
|
7.55
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
Net income
|
|
1.35
|
|
|
1.88
|
|
|
6.95
|
|
|
7.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
393
|
|
|
$
|
555
|
|
|
$
|
2,022
|
|
|
$
|
2,243
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
Net income
|
|
$
|
393
|
|
|
$
|
555
|
|
|
$
|
2,024
|
|
|
$
|
2,244
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
289.6
|
|
|
294.2
|
|
|
291.1
|
|
|
296.5
|
|
|
Diluted
|
|
290.0
|
|
|
294.5
|
|
|
291.4
|
|
|
296.8
|
|
|
Attachment A - Pro
Forma
Raytheon
Company
Preliminary Statement
of Operations Information
Full-Year 2016, and
Quarters within and Full-Year 2017
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2018, we adopted Accounting Standards Update (ASU) 2017-07,
Compensation-Retirement Benefits (Topic 715). The tables below
provide additional information with respect to the line items
within our statement of operations information impacted by the new
standard.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,783
|
|
|
$
|
6,284
|
|
|
$
|
6,281
|
|
|
$
|
6,000
|
|
|
$
|
25,348
|
|
|
$
|
24,124
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
5,171
|
|
|
4,690
|
|
|
4,685
|
|
|
4,530
|
|
|
19,076
|
|
|
17,965
|
|
General and
administrative expenses
|
|
742
|
|
|
736
|
|
|
747
|
|
|
729
|
|
|
2,954
|
|
|
2,864
|
|
Total operating
expenses
|
|
5,913
|
|
|
5,426
|
|
|
5,432
|
|
|
5,259
|
|
|
22,030
|
|
|
20,829
|
|
Operating
income
|
|
870
|
|
|
858
|
|
|
849
|
|
|
741
|
|
|
3,318
|
|
|
3,295
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
48
|
|
|
48
|
|
|
51
|
|
|
58
|
|
|
205
|
|
|
232
|
|
Interest
income
|
|
(7)
|
|
|
(4)
|
|
|
(5)
|
|
|
(5)
|
|
|
(21)
|
|
|
(16)
|
|
Other (income)
expense, net
|
|
(5)
|
|
|
(2)
|
|
|
35
|
|
|
(7)
|
|
|
21
|
|
|
(6)
|
|
Total non-operating
(income) expense, net
|
|
36
|
|
|
42
|
|
|
81
|
|
|
46
|
|
|
205
|
|
|
210
|
|
Income from
continuing operations before taxes
|
|
$
|
834
|
|
|
$
|
816
|
|
|
$
|
768
|
|
|
$
|
695
|
|
|
$
|
3,113
|
|
|
$
|
3,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for
ASU 2017-07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(186)
|
|
|
(222)
|
|
|
(164)
|
|
|
(164)
|
|
|
(736)
|
|
|
(458)
|
|
General and
administrative expenses
|
|
(44)
|
|
|
(48)
|
|
|
(42)
|
|
|
(43)
|
|
|
(177)
|
|
|
(143)
|
|
Total operating
expenses
|
|
(230)
|
|
|
(270)
|
|
|
(206)
|
|
|
(207)
|
|
|
(913)
|
|
|
(601)
|
|
Operating
income
|
|
230
|
|
|
270
|
|
|
206
|
|
|
207
|
|
|
913
|
|
|
601
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Other pension
expense
|
|
230
|
|
|
270
|
|
|
206
|
|
|
207
|
|
|
913
|
|
|
601
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other (income)
expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total non-operating
(income) expense, net
|
|
230
|
|
|
270
|
|
|
206
|
|
|
207
|
|
|
913
|
|
|
601
|
|
Income from
continuing operations before taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,783
|
|
|
$
|
6,284
|
|
|
$
|
6,281
|
|
|
$
|
6,000
|
|
|
$
|
25,348
|
|
|
$
|
24,124
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
4,985
|
|
|
4,468
|
|
|
4,521
|
|
|
4,366
|
|
|
18,340
|
|
|
17,507
|
|
General and
administrative expenses
|
|
698
|
|
|
688
|
|
|
705
|
|
|
686
|
|
|
2,777
|
|
|
2,721
|
|
Total operating
expenses
|
|
5,683
|
|
|
5,156
|
|
|
5,226
|
|
|
5,052
|
|
|
21,117
|
|
|
20,228
|
|
Operating
income
|
|
1,100
|
|
|
1,128
|
|
|
1,055
|
|
|
948
|
|
|
4,231
|
|
|
3,896
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Other pension
expense
|
|
230
|
|
|
270
|
|
|
206
|
|
|
207
|
|
|
913
|
|
|
601
|
|
Interest
expense
|
|
48
|
|
|
48
|
|
|
51
|
|
|
58
|
|
|
205
|
|
|
232
|
|
Interest
income
|
|
(7)
|
|
|
(4)
|
|
|
(5)
|
|
|
(5)
|
|
|
(21)
|
|
|
(16)
|
|
Other (income)
expense, net
|
|
(5)
|
|
|
(2)
|
|
|
35
|
|
|
(7)
|
|
|
21
|
|
|
(6)
|
|
Total non-operating
(income) expense, net
|
|
266
|
|
|
312
|
|
|
287
|
|
|
253
|
|
|
1,118
|
|
|
811
|
|
Income from
continuing operations before taxes
|
|
$
|
834
|
|
|
$
|
816
|
|
|
$
|
768
|
|
|
$
|
695
|
|
|
$
|
3,113
|
|
|
$
|
3,085
|
|
Attachment
B
Raytheon
Company
Preliminary Segment
Information
Fourth Quarter
2017
(In millions, except
percentages)
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,553
|
|
|
$
|
1,460
|
|
|
$
|
247
|
|
|
$
|
238
|
|
|
15.9%
|
|
16.3%
|
Intelligence,
Information and Services
|
|
1,572
|
|
|
1,516
|
|
|
117
|
|
|
120
|
|
|
7.4%
|
|
7.9%
|
Missile
Systems
|
|
2,185
|
|
|
1,897
|
|
|
278
|
|
|
261
|
|
|
12.7%
|
|
13.8%
|
Space and Airborne
Systems
|
|
1,670
|
|
|
1,600
|
|
|
242
|
|
|
221
|
|
|
14.5%
|
|
13.8%
|
Forcepoint
|
|
156
|
|
|
143
|
|
|
(8)
|
|
|
21
|
|
|
(5.1)%
|
|
14.7%
|
Eliminations
|
|
(346)
|
|
|
(324)
|
|
|
(35)
|
|
|
(33)
|
|
|
|
|
|
Total business
segment
|
|
6,790
|
|
|
6,292
|
|
|
841
|
|
|
828
|
|
|
12.4%
|
|
13.2%
|
Acquisition
Accounting Adjustments
|
|
(7)
|
|
|
(13)
|
|
|
(37)
|
|
|
(43)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
95
|
|
|
117
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
(22)
|
|
|
|
|
|
Total
|
|
$
|
6,783
|
|
|
$
|
6,279
|
|
|
$
|
870
|
|
|
$
|
880
|
|
|
12.8%
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
5,804
|
|
|
$
|
5,529
|
|
|
$
|
935
|
|
|
$
|
971
|
|
|
16.1%
|
|
17.6%
|
Intelligence,
Information and Services
|
|
6,177
|
|
|
6,169
|
|
|
455
|
|
|
467
|
|
|
7.4%
|
|
7.6%
|
Missile
Systems
|
|
7,787
|
|
|
7,096
|
|
|
1,010
|
|
|
921
|
|
|
13.0%
|
|
13.0%
|
Space and Airborne
Systems
|
|
6,430
|
|
|
6,182
|
|
|
862
|
|
|
808
|
|
|
13.4%
|
|
13.1%
|
Forcepoint
|
|
608
|
|
|
586
|
|
|
33
|
|
|
90
|
|
|
5.4%
|
|
15.4%
|
Eliminations
|
|
(1,423)
|
|
|
(1,361)
|
|
|
(148)
|
|
|
(142)
|
|
|
|
|
|
Total business
segment
|
|
25,383
|
|
|
24,201
|
|
|
3,147
|
|
|
3,115
|
|
|
12.4%
|
|
12.9%
|
Acquisition
Accounting Adjustments
|
|
(35)
|
|
|
(77)
|
|
|
(160)
|
|
|
(198)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
390
|
|
|
435
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(59)
|
|
|
(57)
|
|
|
|
|
|
Total
|
|
$
|
25,348
|
|
|
$
|
24,124
|
|
|
$
|
3,318
|
|
|
$
|
3,295
|
|
|
13.1%
|
|
13.7%
|
Attachment B - Pro
Forma
Raytheon
Company
Preliminary Segment
Information
Full-Year 2016, and
Quarters within and Full-Year 2017
(In millions, except
percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2018, we adopted Accounting Standards Update (ASU) 2017-07,
Compensation-Retirement Benefits (Topic 715). The tables below
provide additional information with respect to the line items
within our segment information impacted by the new
standard.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
|
$
|
6,783
|
|
|
$
|
6,284
|
|
|
$
|
6,281
|
|
|
$
|
6,000
|
|
|
$
|
25,348
|
|
|
$
|
24,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
segment
|
|
$
|
841
|
|
|
$
|
819
|
|
|
$
|
779
|
|
|
$
|
708
|
|
|
$
|
3,147
|
|
|
$
|
3,115
|
|
|
Acquisition
Accounting Adjustments
|
|
(37)
|
|
|
(39)
|
|
|
(42)
|
|
|
(42)
|
|
|
(160)
|
|
|
(198)
|
|
|
FAS/CAS
Adjustment
|
|
95
|
|
|
78
|
|
|
109
|
|
|
108
|
|
|
390
|
|
|
435
|
|
|
Corporate
|
|
(29)
|
|
|
—
|
|
|
3
|
|
|
(33)
|
|
|
(59)
|
|
|
(57)
|
|
|
Total
|
|
$
|
870
|
|
|
$
|
858
|
|
|
$
|
849
|
|
|
$
|
741
|
|
|
$
|
3,318
|
|
|
$
|
3,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
income as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
sales
|
|
12.8%
|
|
|
13.7%
|
|
|
13.5%
|
|
|
12.4%
|
|
|
13.1%
|
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for
ASU 2017-07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
segment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Acquisition
Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
FAS/CAS
Adjustment
|
|
230
|
|
|
270
|
|
|
206
|
|
|
207
|
|
|
913
|
|
|
601
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
$
|
230
|
|
|
$
|
270
|
|
|
$
|
206
|
|
|
$
|
207
|
|
|
$
|
913
|
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-17
|
|
1-Oct-17
|
|
2-Jul-17
|
|
2-Apr-17
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
segment
|
|
$
|
841
|
|
|
$
|
819
|
|
|
$
|
779
|
|
|
$
|
708
|
|
|
$
|
3,147
|
|
|
$
|
3,115
|
|
|
Acquisition
Accounting Adjustments
|
|
(37)
|
|
|
(39)
|
|
|
(42)
|
|
|
(42)
|
|
|
(160)
|
|
|
(198)
|
|
|
FAS/CAS Operating
Adjustment
|
|
325
|
|
|
348
|
|
|
315
|
|
|
315
|
|
|
1,303
|
|
|
1,036
|
|
|
Corporate
|
|
(29)
|
|
|
—
|
|
|
3
|
|
|
(33)
|
|
|
(59)
|
|
|
(57)
|
|
|
Total
|
|
$
|
1,100
|
|
|
$
|
1,128
|
|
|
$
|
1,055
|
|
|
$
|
948
|
|
|
$
|
4,231
|
|
|
$
|
3,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
income as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
sales
|
|
16.2%
|
|
|
18.0%
|
|
|
16.8%
|
|
|
15.8%
|
|
|
16.7%
|
|
|
16.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
C
Raytheon
Company
Other Preliminary
Information
Fourth Quarter
2017
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
9,186
|
|
|
$
|
10,159
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
6,503
|
|
|
5,662
|
|
|
Missile
Systems
|
|
|
|
|
|
|
13,426
|
|
|
11,568
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
8,611
|
|
|
8,834
|
|
|
Forcepoint
|
|
|
|
|
|
|
484
|
|
|
486
|
|
|
Total
backlog
|
|
|
|
|
|
|
$
|
38,210
|
|
|
$
|
36,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
Bookings
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
bookings
|
|
|
$
|
8,541
|
|
|
$
|
7,582
|
|
|
$
|
27,718
|
|
|
$
|
27,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
General and
Administrative Expenses
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
$
|
566
|
|
|
$
|
515
|
|
|
$
|
2,220
|
|
|
$
|
2,109
|
|
|
Research and
development expenses
|
|
176
|
|
|
196
|
|
|
734
|
|
|
755
|
|
|
Total general and
administrative expenses
|
|
$
|
742
|
|
|
$
|
711
|
|
|
$
|
2,954
|
|
|
$
|
2,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
|
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
3,103
|
|
|
$
|
3,303
|
|
|
Restricted
cash
|
|
|
|
12
|
|
|
—
|
|
|
Total cash, cash
equivalents and restricted cash shown in Attachment E
|
|
|
|
$
|
3,115
|
|
|
$
|
3,303
|
|
|
Attachment
D
Raytheon
Company
Preliminary Balance
Sheet Information
Fourth Quarter
2017
(In
millions)
|
|
|
|
|
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,103
|
|
|
$
|
3,303
|
|
|
Short-term
investments
|
297
|
|
|
100
|
|
|
Receivables,
net
|
1,324
|
|
|
1,163
|
|
|
Contract
assets
|
5,247
|
|
|
5,041
|
|
|
Inventories
|
594
|
|
|
608
|
|
|
Prepaid expenses and
other current assets
|
761
|
|
|
670
|
|
|
Total current
assets
|
11,326
|
|
|
10,885
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,439
|
|
|
2,166
|
|
|
Goodwill
|
14,871
|
|
|
14,788
|
|
|
Other assets,
net
|
2,224
|
|
|
2,399
|
|
|
Total
assets
|
$
|
30,860
|
|
|
$
|
30,238
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Commercial
paper
|
$
|
300
|
|
|
$
|
—
|
|
|
Contract
liabilities
|
2,927
|
|
|
2,646
|
|
|
Accounts
payable
|
1,519
|
|
|
1,520
|
|
|
Accrued employee
compensation
|
1,342
|
|
|
1,234
|
|
|
Other current
liabilities
|
1,260
|
|
|
1,139
|
|
|
Total current
liabilities
|
7,348
|
|
|
6,539
|
|
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
8,287
|
|
|
7,758
|
|
|
Long-term
debt
|
4,750
|
|
|
5,335
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
512
|
|
|
449
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Raytheon Company
stockholders' equity
|
|
|
|
|
Common
stock
|
3
|
|
|
3
|
|
|
Additional
paid-in capital
|
—
|
|
|
—
|
|
|
Accumulated
other comprehensive loss
|
(7,935)
|
|
|
(7,411)
|
|
|
Retained
earnings
|
17,895
|
|
|
17,565
|
|
|
Total Raytheon Company
stockholders' equity
|
9,963
|
|
|
10,157
|
|
|
Noncontrolling
interests in subsidiaries
|
—
|
|
|
—
|
|
|
Total
equity
|
9,963
|
|
|
10,157
|
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
30,860
|
|
|
$
|
30,238
|
|
|
Attachment
E
Raytheon
Company
Preliminary Cash Flow
Information
Fourth Quarter
2017
(In
millions)
|
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
2,001
|
|
|
$
|
2,213
|
|
|
(Income) loss from
discontinued operations, net of tax
|
(2)
|
|
|
(1)
|
|
|
Income from
continuing operations
|
1,999
|
|
|
2,212
|
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing
|
|
|
|
|
operations, net of the effect of acquisitions and
divestitures
|
|
|
|
|
Depreciation and
amortization
|
550
|
|
|
515
|
|
|
Stock-based
compensation
|
173
|
|
|
151
|
|
|
Gain on sale of
equity method investment
|
—
|
|
|
(158)
|
|
|
Loss on repayment of
long-term debt
|
39
|
|
|
—
|
|
|
Deferred income
taxes
|
252
|
|
|
133
|
|
|
Changes in assets and
liabilities
|
|
|
|
|
Receivables,
net
|
(157)
|
|
|
18
|
|
|
Contract assets and
contract liabilities
|
88
|
|
|
(645)
|
|
|
Inventories
|
14
|
|
|
(10)
|
|
|
Prepaid expenses and
other current assets
|
204
|
|
|
205
|
|
|
Income taxes
receivable/payable
|
(193)
|
|
|
(185)
|
|
|
Accounts
payable
|
(94)
|
|
|
152
|
|
|
Accrued employee
compensation
|
111
|
|
|
77
|
|
|
Other current
liabilities
|
106
|
|
|
(41)
|
|
|
Accrued retiree
benefits
|
(250)
|
|
|
419
|
|
|
Other, net
|
(95)
|
|
|
9
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
2,747
|
|
|
2,852
|
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
(2)
|
|
|
—
|
|
|
Net cash provided by
(used in) operating activities
|
2,745
|
|
|
2,852
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Additions to
property, plant and equipment
|
(543)
|
|
|
(561)
|
|
|
Proceeds from sales
of property, plant and equipment
|
46
|
|
|
34
|
|
|
Additions to
capitalized internal use software
|
(68)
|
|
|
(64)
|
|
|
Purchases of
short-term investments
|
(696)
|
|
|
(472)
|
|
|
Maturities of
short-term investments
|
517
|
|
|
1,184
|
|
|
Payments for
purchases of acquired companies, net of cash received
|
(93)
|
|
|
(57)
|
|
|
Other
|
20
|
|
|
(11)
|
|
|
Net cash provided by
(used in) investing activities
|
(817)
|
|
|
53
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Dividends
paid
|
(910)
|
|
|
(850)
|
|
|
Net borrowings
(payments) on commercial paper
|
300
|
|
|
—
|
|
|
Repayments of
long-term debt
|
(591)
|
|
|
—
|
|
|
Loss on repayment of
long-term debt
|
(38)
|
|
|
—
|
|
|
Repurchases of common
stock under share repurchase programs
|
(800)
|
|
|
(900)
|
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(85)
|
|
|
(96)
|
|
|
Acquisition of
noncontrolling interest in RCCS LLC
|
—
|
|
|
(90)
|
|
|
Contribution from
noncontrolling interests in Forcepoint
|
8
|
|
|
11
|
|
|
Other
|
—
|
|
|
(5)
|
|
|
Net cash provided by
(used in) financing activities
|
(2,116)
|
|
|
(1,930)
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(188)
|
|
|
975
|
|
|
Cash, cash
equivalents and restricted cash at beginning of the year
|
3,303
|
|
|
2,328
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
3,115
|
|
|
$
|
3,303
|
|
|
Attachment
F
Raytheon
Company
Supplemental EPS
Information
Fourth Quarter
2017
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-17
|
|
31-Dec-16
|
|
31-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
the enactment of the Tax Cuts and Jobs Act of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
(A)
|
$
|
0.59
|
|
|
$
|
—
|
|
|
$
|
0.59
|
|
|
$
|
—
|
|
|
Per share impact of
discretionary pension contributions (B)
|
0.09
|
|
|
0.04
|
|
|
0.09
|
|
|
0.04
|
|
|
Per share impact of
early debt retirement (C)
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
|
Per share impact of
TRS transaction (D)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Tax impact of the
enactment of the Tax Cuts and Jobs Act of 2017
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
|
Diluted
shares
|
290.0
|
|
|
—
|
|
|
291.4
|
|
|
—
|
|
|
|
Per share
impact
|
$
|
0.59
|
|
|
$
|
—
|
|
|
$
|
0.59
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
Tax impact of
discretionary pension contribution
|
$
|
25
|
|
|
$
|
13
|
|
|
$
|
25
|
|
|
$
|
13
|
|
|
|
Diluted
shares
|
290.0
|
|
|
294.5
|
|
|
291.4
|
|
|
296.8
|
|
|
|
Per share
impact
|
$
|
0.09
|
|
|
$
|
0.04
|
|
|
$
|
0.09
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
Early debt
retirement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
|
|
Tax effect (at 35%
statutory rate)
|
—
|
|
|
—
|
|
|
(14)
|
|
|
—
|
|
|
|
After-tax
impact
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
291.4
|
|
|
—
|
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.09
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
TRS
transaction
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158
|
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
—
|
|
|
296.8
|
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.53
|
|
|
Raytheon Company
Global Headquarters
Waltham, Mass.
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Corinne Kovalsky
781.522.5899
View original
content:http://www.prnewswire.com/news-releases/raytheon-reports-strong-fourth-quarter-and-full-year-2017-results-300587930.html
SOURCE Raytheon Company