WALTHAM, Mass., July 23, 2015 /PRNewswire/ -- Raytheon Company
(NYSE: RTN) announced net sales for the second quarter 2015 were
$5.8 billion compared to $5.7 billion in the second quarter 2014. Second
quarter 2015 EPS from continuing operations was $1.65 compared to $1.59 in the second quarter 2014. Second quarter
2015 EPS from continuing operations included a favorable FAS/CAS
Adjustment of $0.10 compared to a
favorable FAS/CAS Adjustment of $0.18
in the second quarter 2014. In addition, second quarter 2015 EPS
from continuing operations included, as expected, a $0.29 favorable impact from a tax settlement. It
also included a $0.09 unfavorable
impact associated with Raytheon|Websense acquisition accounting
adjustments and acquisition related costs discussed in further
detail below.
The Company had bookings of $7.6
billion in the second quarter 2015, resulting in a
book-to-bill ratio of 1.30. In the second quarter 2014, bookings
were $6.8 billion. Year-to-date 2015
bookings were $12.1 billion,
resulting in a book-to-bill ratio of 1.08. Year-to-date
2014 bookings were $11.1 billion.
"Our strategy to position the company for global growth is
delivering results, which are reflected in the strong bookings and
sales growth in the second quarter, as well as our improved growth
outlook for 2015," said Thomas A.
Kennedy, Raytheon Chairman and CEO. "Additionally, we
continue to pursue a balanced capital deployment strategy to create
value for our customers and shareholders."
Operating cash flow from continuing operations for the second
quarter 2015 was $376 million
compared to $153 million for the
second quarter 2014. The increase in operating cash flow from
continuing operations in the second quarter 2015 was primarily due
to the timing of required pension contributions and the collection
of the eBorders settlement with the U.K. Home Office, which was
resolved in the first quarter 2015, partially offset by higher cash
taxes.
Summary Financial
Results
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
%
|
|
Six
Months
|
|
%
|
($ in millions,
except per share data)
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$
|
7,580
|
|
|
$
|
6,772
|
|
|
11.9%
|
|
$
|
12,051
|
|
|
$
|
11,065
|
|
|
8.9%
|
Net Sales
|
$
|
5,848
|
|
|
$
|
5,701
|
|
|
2.6%
|
|
$
|
11,136
|
|
|
$
|
11,209
|
|
|
-0.7%
|
Income from
Continuing Operations attributable to Raytheon Company
|
$
|
504
|
|
|
$
|
499
|
|
|
1.0%
|
|
$
|
1,055
|
|
|
$
|
1,088
|
|
|
-3.0%
|
EPS from Continuing
Operations
|
$
|
1.65
|
|
|
$
|
1.59
|
|
|
3.8%
|
|
$
|
3.44
|
|
|
$
|
3.46
|
|
|
-0.6%
|
Operating Cash Flow
from Continuing Operations
|
$
|
376
|
|
|
$
|
153
|
|
|
|
|
$
|
431
|
|
|
$
|
812
|
|
|
|
Workdays in Fiscal
Reporting Calendar
|
64
|
|
|
64
|
|
|
|
|
125
|
|
|
126
|
|
|
|
|
|
|
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In the second quarter 2015, the Company repurchased 1.9 million
shares of common stock for $200
million. Year-to-date 2015, the Company repurchased 4.6
million shares of common stock for $500
million. The Company now expects its share repurchases in
2015 to be $1.0 billion, an increase
of $250 million from its original
expectation.
The Company ended the second quarter 2015 with $2.8 billion of net debt. Net debt is defined as
total debt less cash and cash equivalents and short-term
investments.
As previously announced, on May 29,
2015, the Company and Vista Equity Partners completed a
transaction creating a new joint venture company that combines
Websense, Inc. (Websense), formerly a Vista Equity portfolio
company, and Raytheon Cyber Products, formerly part of Raytheon's
Intelligence, Information and Services business. The newly formed
commercial cybersecurity company, which is 80.3 percent owned by
Raytheon and 19.7 percent by Vista Equity Partners, is known on an
interim basis as Raytheon|Websense.
Second quarter 2015 results include Websense restructuring
costs, and items related to the Raytheon|Websense transaction which
are excluded from segment operating performance since management
does not consider those items in evaluating the segment.
Raytheon|Websense
Acquisition Accounting Adjustments and Acquisition Related
Costs1
|
|
|
|
|
($ in millions,
except per share data)
|
Operating
Income
|
|
EPS
|
|
|
|
|
Deferred Revenue
Adjustment2
|
$
|
(10)
|
|
|
$
|
(0.02)
|
|
Amortization of
Intangibles
|
$
|
(8)
|
|
|
$
|
(0.01)
|
|
Acquisition Related
Costs
|
$
|
(23)
|
|
|
$
|
(0.05)
|
|
Amounts excluded from segment results
|
$
|
(41)
|
|
|
$
|
(0.08)
|
|
|
|
|
|
Restructuring Costs
(recorded in Raytheon|Websense segment results)
|
$
|
(5)
|
|
|
$
|
(0.01)
|
|
Total
|
$
|
(46)
|
|
|
$
|
(0.09)
|
|
|
|
|
|
1See Attachment F for a
reconciliation of how each of these items is
calculated.
|
2Deferred Revenue Adjustment
represents the impact of fair value adjustments to deferred revenue
related to Raytheon|Websense, including historical Raytheon Cyber
Products acquisitions.
|
Backlog
($ in
millions)
|
Period
Ending
|
|
Q2
2015
|
|
Q2
2014
|
|
2014
|
Backlog
|
$
|
34,494
|
|
|
$
|
33,019
|
|
|
$
|
33,571
|
|
Funded
Backlog
|
$
|
25,332
|
|
|
$
|
23,580
|
|
|
$
|
23,092
|
|
Backlog at the end of the second quarter 2015 was $34.5 billion, an increase of approximately
$1.5 billion compared to the second
quarter 2014. Funded backlog was $25.3
billion, an increase of approximately $1.8 billion compared to the second quarter
2014.
Outlook
The Company has updated its financial outlook for 2015 to
reflect improved operating performance to date compared to prior
guidance and the impact of the Raytheon|Websense transaction.
Charts containing additional information on the Company's 2015
outlook are available on the Company's website at
www.raytheon.com/ir.
2015 Financial
Outlook
|
|
|
|
|
Current1
|
|
Prior
(4/23/15)
|
Net Sales
($B)
|
22.7 -
23.2*
|
|
22.3 -
22.8
|
RW Deferred Revenue
Adjustment ($M)2
|
(61)*
|
|
NA
|
RW Amortization of
Intangibles ($M)2
|
(58)*
|
|
NA
|
FAS/CAS Adjustment
($M)
|
197
|
|
197
|
Interest Expense, net
($M)
|
(225) -
(235)
|
|
(225) -
(235)
|
Diluted Shares
(M)
|
305 - 306*
|
|
305 - 307
|
Effective Tax
Rate
|
Approx.
27.0%
|
|
Approx.
27.0%
|
EPS from Continuing
Operations
|
$6.47 -
$6.62*
|
|
$6.67 -
$6.82
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.5 - 2.7*
|
|
2.4 - 2.7
|
|
|
|
|
1Updated to reflect the impact
of the creation of Raytheon|Websense (RW) on May 29,
2015.
|
2RW Deferred Revenue Adjustment
and RW Amortization of 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, respectively, related to Raytheon|Websense,
including historical Raytheon Cyber Products
acquisitions
|
NA = Not
Applicable
|
* Denotes change
from prior guidance.
|
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
Raytheon|Websense (RW).
Integrated Defense
Systems
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
Six
Months
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
%
Change
|
Net Sales
|
$
|
1,698
|
|
$
|
1,549
|
|
10%
|
|
$
|
3,131
|
|
$
|
3,030
|
3%
|
Operating
Income
|
$
|
215
|
|
$
|
219
|
|
-2%
|
|
$
|
410
|
|
$
|
445
|
-8%
|
Operating
Margin
|
|
12.7%
|
|
|
14.1%
|
|
|
|
|
13.1%
|
|
|
14.7%
|
|
Integrated Defense Systems (IDS) had second quarter 2015 net
sales of $1,698 million compared to
$1,549 million in the second quarter
2014. The increase in net sales was primarily driven by higher
sales on international Patriot programs, including the recognition
of previously deferred precontract costs and program activity in
the quarter.
IDS recorded $215 million of
operating income in the second quarter 2015 compared to
$219 million in the second quarter
2014. The change in operating margin in the second quarter 2015 was
primarily due to a change in program mix.
Included in operating income in the second quarter 2015 was an
adjustment of $33 million to
eliminate all remaining estimated incentive fees related to the Air
Warfare Destroyer (AWD) program due to the shipbuilder extending
the planned schedule and related increase in costs to complete its
portion of the program. Included in operating income in the second
quarter 2014 was an adjustment of $38
million from a decrease in estimated incentive fees on the
AWD program driven by an increase in expected costs by the
shipbuilder to complete its portion of the program.
During the quarter, IDS booked $2.0
billion to provide advanced Patriot air and missile defense
capability for the Kingdom of Saudi
Arabia. IDS also booked $132
million to provide satellite communication ground terminals
for an international customer and $77
million on the NextGen Weather Processor (NWP) program for
the Federal Aviation Administration (FAA).
Intelligence,
Information and Services1
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
Six
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
1,496
|
|
$
|
1,493
|
|
—
|
|
$
|
2,868
|
|
$
|
2,922
|
|
-2%
|
Operating
Income2
|
$
|
108
|
|
$
|
123
|
|
-12%
|
|
$
|
392
|
|
$
|
246
|
|
NM
|
Operating
Margin
|
|
7.2%
|
|
|
8.2%
|
|
|
|
|
13.7%
|
|
|
8.4%
|
|
|
1
Revised to exclude Raytheon Cyber Products (RCP), formerly part
of IIS. As discussed on page 2, RCP was combined with Websense,
Inc. to create Raytheon|Websense, a new commercial cybersecurity
joint venture, which is reported as a separate business
segment.
|
2
Six Months 2015 operating income includes the favorable $181
million impact of the first quarter 2015 eBorders
settlement.
|
NM = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
Intelligence, Information and Services (IIS) had second quarter
2015 net sales of $1,496 million
compared to $1,493 million in the
second quarter 2014.
IIS recorded $108 million of
operating income in the second quarter 2015 compared to
$123 million in the second quarter
2014. The change in operating income was primarily due to program
mix.
During the quarter, IIS booked $387
million on domestic training programs and $151 million on foreign training programs in
support of Warfighter FOCUS activities. IIS also booked
$376 million on a number of
classified contracts.
Missile
Systems
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
Six
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
1,559
|
|
$
|
1,539
|
|
1%
|
|
$
|
3,032
|
|
$
|
3,113
|
|
-3%
|
Operating
Income
|
$
|
183
|
|
$
|
190
|
|
-4%
|
|
$
|
390
|
|
$
|
398
|
|
-2%
|
Operating
Margin
|
|
11.7%
|
|
|
12.3%
|
|
|
|
|
12.9%
|
|
|
12.8%
|
|
|
Missile Systems (MS) had second quarter 2015 net sales of
$1,559 million compared to
$1,539 million in the second quarter
2014.
MS recorded $183 million of
operating income in the second quarter 2015 compared to
$190 million in the second quarter
2014. The change in operating margin was primarily due to higher
net program efficiencies in the second quarter 2014.
During the quarter, MS booked $529
million for Standard Missile-3 (SM-3®) for
the Missile Defense Agency (MDA), $511
million on Evolved SeaSparrow Missile (ESSM) for the U.S.
Navy and international customers, $363
million for Paveway™ for international customers, and
$143 million for Standard Missile-6
(SM-6™) for the U.S. Navy. MS also booked $99 million on a classified program.
Space and Airborne
Systems
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
Six
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
1,416
|
|
$
|
1,505
|
|
-6%
|
|
$
|
2,774
|
|
$
|
2,903
|
|
-4%
|
Operating
Income
|
$
|
186
|
|
$
|
202
|
|
-8%
|
|
$
|
359
|
|
$
|
392
|
|
-8%
|
Operating
Margin
|
|
13.1%
|
|
|
13.4%
|
|
|
|
|
12.9%
|
|
|
13.5%
|
|
|
Space and Airborne Systems (SAS) had second quarter 2015 net
sales of $1,416 million compared to
$1,505 million in the second quarter
2014. The change in net sales was primarily due to lower sales on
international tactical radar systems programs.
SAS recorded $186 million of
operating income in the second quarter 2015 compared to
$202 million in the second quarter
2014. The change in operating income was primarily due to lower
volume in the second quarter 2015 combined with higher net program
efficiencies in the second quarter 2014.
During the quarter, SAS booked $153
million on a multimission radar program for the U.S. Navy
and an international customer, $99
million on an Active Electronically Scanned Array (AESA)
radar Performance Based Logistics (PBL) contract for an
international customer, and $82
million to provide communication subsystems for the U.S.
Navy and an international customer. SAS also booked $250 million on a number of classified
contracts.
Raytheon|Websense1
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
Six
Months
|
|
($ in
millions)
|
2015
|
|
2014
|
%
Change
|
|
2015
|
|
2014
|
%
Change
|
Net Sales
|
$
|
57
|
|
|
$
|
28
|
|
104%
|
|
$
|
81
|
|
|
$
|
51
|
|
59%
|
Operating
Income/(loss)
|
$
|
(1)
|
|
|
$
|
3
|
|
-133%
|
|
$
|
(1)
|
|
|
$
|
7
|
|
-114%
|
Operating
Margin
|
(1.8)%
|
|
|
|
10.7%
|
|
|
|
(1.2)%
|
|
|
|
13.7%
|
|
|
1
Excludes the unfavorable impact of the Raytheon|Websense
acquisition accounting adjustments and certain acquisition related
costs. See page 2 for more information on these
items.
|
Raytheon|Websense (RW) is a new joint venture company that was
created on May 29, 2015 through the
combination of Websense, Inc. and Raytheon Cyber Products (RCP),
formerly part of Raytheon's Intelligence, Information and Services
business. The RW segment results have been presented to reflect RCP
results for all periods and Websense results after the acquisition
date.
RW had second quarter 2015 net sales of $57 million compared to $28 million in the second quarter 2014.
RW recorded a loss of $1 million
in the second quarter 2015 compared to $3
million of operating income in the second quarter 2014. The
second quarter 2015 operating loss reflects higher RCP research and
development and selling and marketing expenses to develop and
launch new commercial products compared to second quarter 2014, as
well as approximately $5 million of
restructuring costs associated with the combination of Websense and
RCP.
About Raytheon
Raytheon Company, with 2014 sales of
$23 billion and 61,000 employees
worldwide, is a technology and innovation leader specializing in
defense, civil government and cybersecurity 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 cybersecurity 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 Second Quarter 2015 Financial
Results
Raytheon's financial results conference call will be
held on Thursday, July 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 (800)
884-5695 in the U.S. or (617) 786-2960 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
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; 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
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,848
|
|
|
$
|
5,701
|
|
|
$
|
11,136
|
|
|
$
|
11,209
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
4,525
|
|
|
4,301
|
|
|
8,358
|
|
|
8,462
|
|
General and administrative
expenses
|
|
675
|
|
|
641
|
|
|
1,290
|
|
|
1,200
|
|
Total operating
expenses
|
|
5,200
|
|
|
4,942
|
|
|
9,648
|
|
|
9,662
|
|
Operating
income
|
|
648
|
|
|
759
|
|
|
1,488
|
|
|
1,547
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
Interest expense
|
|
59
|
|
|
54
|
|
|
117
|
|
|
105
|
|
Interest income
|
|
(2)
|
|
|
(2)
|
|
|
(6)
|
|
|
(5)
|
|
Other (income) expense,
net
|
|
(1)
|
|
|
(6)
|
|
|
(3)
|
|
|
(6)
|
|
Total non-operating
(income) expense, net
|
|
56
|
|
|
46
|
|
|
108
|
|
|
94
|
|
Income from
continuing operations before taxes
|
|
592
|
|
|
713
|
|
|
1,380
|
|
|
1,453
|
|
Federal and foreign
income taxes
|
|
90
|
|
|
212
|
|
|
324
|
|
|
359
|
|
Income from
continuing operations
|
|
502
|
|
|
501
|
|
|
1,056
|
|
|
1,094
|
|
Income (loss) from
discontinued operations, net of tax
|
|
1
|
|
|
52
|
|
|
1
|
|
|
59
|
|
Net income
|
|
503
|
|
|
553
|
|
|
1,057
|
|
|
1,153
|
|
Less: Net income
(loss) attributable to noncontrolling
|
|
|
|
|
|
|
|
|
interests in subsidiaries
|
|
(2)
|
|
|
2
|
|
|
1
|
|
|
6
|
|
Net income
attributable to Raytheon Company
|
|
$
|
505
|
|
|
$
|
551
|
|
|
$
|
1,056
|
|
|
$
|
1,147
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.65
|
|
|
$
|
1.59
|
|
|
$
|
3.44
|
|
|
$
|
3.47
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
0.19
|
|
Net income
|
|
1.65
|
|
|
1.76
|
|
|
3.44
|
|
|
3.65
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.65
|
|
|
$
|
1.59
|
|
|
$
|
3.44
|
|
|
$
|
3.46
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
0.19
|
|
Net income
|
|
1.65
|
|
|
1.76
|
|
|
3.44
|
|
|
3.65
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
504
|
|
|
$
|
499
|
|
|
$
|
1,055
|
|
|
$
|
1,088
|
|
Income (loss) from
discontinued operations, net of tax
|
|
1
|
|
|
52
|
|
|
1
|
|
|
59
|
|
Net income
|
|
$
|
505
|
|
|
$
|
551
|
|
|
$
|
1,056
|
|
|
$
|
1,147
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
305.4
|
|
|
312.9
|
|
|
306.8
|
|
|
313.9
|
|
Diluted
|
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Second 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
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,698
|
|
|
$
|
1,549
|
|
|
$
|
215
|
|
|
$
|
219
|
|
|
12.7%
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
1,496
|
|
|
1,493
|
|
|
108
|
|
|
123
|
|
|
7.2%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
1,559
|
|
|
1,539
|
|
|
183
|
|
|
190
|
|
|
11.7%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
1,416
|
|
|
1,505
|
|
|
186
|
|
|
202
|
|
|
13.1%
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense(1)
|
|
57
|
|
|
28
|
|
|
(1)
|
|
|
3
|
|
|
(1.8)%
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
(368)
|
|
|
(413)
|
|
|
(39)
|
|
|
(42)
|
|
|
|
|
|
Total business
segment
|
|
5,858
|
|
|
5,701
|
|
|
652
|
|
|
695
|
|
|
11.1%
|
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
Acquisition Accounting Adjustments
|
|
(10)
|
|
|
—
|
|
|
(18)
|
|
|
(1)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
49
|
|
|
87
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(35)
|
|
|
(22)
|
|
|
|
|
|
Total
|
|
$
|
5,848
|
|
|
$
|
5,701
|
|
|
$
|
648
|
|
|
$
|
759
|
|
|
11.1%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
(In millions, except
percentages)
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
3,131
|
|
|
$
|
3,030
|
|
|
$
|
410
|
|
|
$
|
445
|
|
|
13.1%
|
|
14.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
2,868
|
|
|
2,922
|
|
|
392
|
|
|
246
|
|
|
13.7%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
3,032
|
|
|
3,113
|
|
|
390
|
|
|
398
|
|
|
12.9%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
2,774
|
|
|
2,903
|
|
|
359
|
|
|
392
|
|
|
12.9%
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense(1)
|
|
81
|
|
|
51
|
|
|
(1)
|
|
|
7
|
|
|
(1.2)%
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
(740)
|
|
|
(810)
|
|
|
(76)
|
|
|
(82)
|
|
|
|
|
|
Total business
segment
|
|
11,146
|
|
|
11,209
|
|
|
1,474
|
|
|
1,406
|
|
|
13.2%
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
Acquisition Accounting Adjustments
|
|
(10)
|
|
|
—
|
|
|
(20)
|
|
|
(3)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
98
|
|
|
174
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(64)
|
|
|
(30)
|
|
|
|
|
|
Total
|
|
$
|
11,136
|
|
|
$
|
11,209
|
|
|
$
|
1,488
|
|
|
$
|
1,547
|
|
|
13.4%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes the unfavorable impact of the Raytheon|Websense
acquisition accounting adjustments and certain acquisition related
costs. See Attachment F for more information on these
items.
|
Attachment B - Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
Pro Forma Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2013,
Quarters within and Full Year 2014, and First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously
announced, on May 29, 2015, we acquired Websense, Inc. from Vista
Equity Partners and combined it with Raytheon Cyber Products (RCP),
formerly part of our IIS segment, to create Raytheon|Websense, a
new cybersecurity joint venture company (with Vista Equity
Partners). In connection with these transactions, we reorganized
our operating and reporting structure with Raytheon|Websense as our
fifth reporting segment. The amounts, discussion and presentation
of our business segments, including corporate and eliminations for
intersegment activity, as set forth in our Form 10-Q, reflect our
new structure. The Raytheon|Websense results reflect RCP results
for all periods and Websense results after the acquisition date of
May 29, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
29-Mar-15
|
|
31-Dec-14
|
|
28-Sep-14
|
|
29-Jun-14
|
|
30-Mar-14
|
|
31-Dec-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
$
|
1,433
|
|
|
$
|
1,627
|
|
|
$
|
1,428
|
|
|
$
|
1,549
|
|
|
$
|
1,481
|
|
|
$
|
6,085
|
|
|
$
|
6,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
1,372
|
|
|
1,517
|
|
|
1,450
|
|
|
1,493
|
|
|
1,429
|
|
|
5,889
|
|
|
5,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
1,473
|
|
|
1,719
|
|
|
1,477
|
|
|
1,539
|
|
|
1,574
|
|
|
6,309
|
|
|
6,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
1,358
|
|
|
1,660
|
|
|
1,509
|
|
|
1,505
|
|
|
1,398
|
|
|
6,072
|
|
|
6,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense(1)
|
24
|
|
|
23
|
|
|
30
|
|
|
28
|
|
|
23
|
|
|
104
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
(372)
|
|
|
(403)
|
|
|
(420)
|
|
|
(413)
|
|
|
(397)
|
|
|
(1,633)
|
|
|
(1,810)
|
|
|
Total business
segment
|
5,288
|
|
|
6,143
|
|
|
5,474
|
|
|
5,701
|
|
|
5,508
|
|
|
22,826
|
|
|
23,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
Acquisition Accounting Adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
$
|
5,288
|
|
|
$
|
6,143
|
|
|
$
|
5,474
|
|
|
$
|
5,701
|
|
|
$
|
5,508
|
|
|
$
|
22,826
|
|
|
$
|
23,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
Operating
Income
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
29-Mar-15
|
|
31-Dec-14
|
|
28-Sep-14
|
|
29-Jun-14
|
|
30-Mar-14
|
|
31-Dec-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
$
|
195
|
|
|
$
|
299
|
|
|
$
|
230
|
|
|
$
|
219
|
|
|
$
|
226
|
|
|
$
|
974
|
|
|
$
|
1,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
284
|
|
|
131
|
|
|
118
|
|
|
123
|
|
|
123
|
|
|
495
|
|
|
507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
207
|
|
|
212
|
|
|
190
|
|
|
190
|
|
|
208
|
|
|
800
|
|
|
830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
173
|
|
|
217
|
|
|
237
|
|
|
202
|
|
|
190
|
|
|
846
|
|
|
920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense(1)
|
—
|
|
|
(1)
|
|
|
5
|
|
|
3
|
|
|
4
|
|
|
11
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
(37)
|
|
|
(41)
|
|
|
(43)
|
|
|
(42)
|
|
|
(40)
|
|
|
(166)
|
|
|
(170)
|
|
|
Total business
segment
|
822
|
|
|
817
|
|
|
737
|
|
|
695
|
|
|
711
|
|
|
2,960
|
|
|
3,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
Acquisition Accounting Adjustments
|
(2)
|
|
|
(2)
|
|
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
|
(6)
|
|
|
(9)
|
|
|
FAS/CAS
Adjustment
|
49
|
|
|
70
|
|
|
42
|
|
|
87
|
|
|
87
|
|
|
286
|
|
|
(249)
|
|
|
Corporate
|
(29)
|
|
|
(16)
|
|
|
(15)
|
|
|
(22)
|
|
|
(8)
|
|
|
(61)
|
|
|
(19)
|
|
|
Total
|
$
|
840
|
|
|
$
|
869
|
|
|
$
|
763
|
|
|
$
|
759
|
|
|
$
|
788
|
|
|
$
|
3,179
|
|
|
$
|
2,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
Operating
Income
|
|
|
As a Percentage of
Net Sales
|
|
As a Percentage of
Net Sales
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
29-Mar-15
|
|
31-Dec-14
|
|
28-Sep-14
|
|
29-Jun-14
|
|
30-Mar-14
|
|
31-Dec-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
13.6%
|
|
18.4%
|
|
16.1%
|
|
14.1%
|
|
15.3%
|
|
16.0%
|
|
17.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
20.7%
|
|
8.6%
|
|
8.1%
|
|
8.2%
|
|
8.6%
|
|
8.4%
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
14.1%
|
|
12.3%
|
|
12.9%
|
|
12.3%
|
|
13.2%
|
|
12.7%
|
|
12.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
12.7%
|
|
13.1%
|
|
15.7%
|
|
13.4%
|
|
13.6%
|
|
13.9%
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense(1)
|
—%
|
|
(4.3)%
|
|
16.7%
|
|
10.7%
|
|
17.4%
|
|
10.6%
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
9.9%
|
|
10.2%
|
|
10.2%
|
|
10.2%
|
|
10.1%
|
|
10.2%
|
|
9.4%
|
|
Total business
segment
|
15.5%
|
|
13.3%
|
|
13.5%
|
|
12.2%
|
|
12.9%
|
|
13.0%
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
Acquisition Accounting Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
15.9%
|
|
14.1%
|
|
13.9%
|
|
13.3%
|
|
14.3%
|
|
13.9%
|
|
12.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes the unfavorable impact of the Raytheon|Websense
acquisition accounting adjustments and certain acquisition related
costs. See Attachment F for more information on these
items.
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
|
|
|
|
28-Jun-15
|
|
31-Dec-14
|
|
28-Jun-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
10,398
|
|
|
$
|
8,939
|
|
|
$
|
12,544
|
|
|
$
|
11,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
2,739
|
|
|
2,854
|
|
|
5,423
|
|
|
5,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
|
|
|
|
|
7,316
|
|
|
6,992
|
|
|
9,880
|
|
|
9,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
4,456
|
|
|
4,259
|
|
|
6,221
|
|
|
6,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
|
|
|
|
|
|
|
423
|
|
|
48
|
|
|
426
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
$
|
25,332
|
|
|
$
|
23,092
|
|
|
$
|
34,494
|
|
|
$
|
33,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
|
|
|
|
|
$
|
7,580
|
|
|
$
|
6,772
|
|
|
$
|
12,051
|
|
|
$
|
11,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
|
|
|
|
$
|
489
|
|
|
$
|
517
|
|
|
$
|
962
|
|
|
$
|
965
|
|
Research and
development expenses
|
|
|
|
|
|
$
|
186
|
|
|
$
|
124
|
|
|
$
|
328
|
|
|
$
|
235
|
|
Total general and
administrative expenses
|
|
|
|
|
|
$
|
675
|
|
|
$
|
641
|
|
|
$
|
1,290
|
|
|
$
|
1,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment C - Pro
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Other
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2013,
Quarters within and Full Year 2014, and First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously
announced, on May 29, 2015, we acquired Websense, Inc. from Vista
Equity Partners and combined it with Raytheon Cyber Products (RCP),
formerly part of our IIS segment, to create Raytheon|Websense, a
new cybersecurity joint venture company (with Vista Equity
Partners). In connection with these transactions, we reorganized
our operating and reporting structure with Raytheon|Websense as our
fifth reporting segment. The amounts, discussion and presentation
of our business segments, including corporate and eliminations for
intersegment activity, as set forth in our Form 10-Q, reflect our
new structure. The Raytheon|Websense results reflect RCP results
for all periods and Websense results after the acquisition date of
May 29, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
|
|
|
|
31-Dec-14
|
|
31-Dec-13
|
|
31-Dec-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
8,939
|
|
|
$
|
9,397
|
|
|
$
|
11,495
|
|
|
$
|
10,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
|
2,854
|
|
|
2,550
|
|
|
5,825
|
|
|
5,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
|
|
|
|
|
6,992
|
|
|
6,859
|
|
|
9,269
|
|
|
9,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
4,259
|
|
|
4,166
|
|
|
6,930
|
|
|
7,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
|
|
|
|
|
|
|
48
|
|
|
42
|
|
|
52
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
$
|
23,092
|
|
|
$
|
23,014
|
|
|
$
|
33,571
|
|
|
$
|
33,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
Bookings
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
29-Mar-15
|
|
31-Dec-14
|
|
28-Sep-14
|
|
29-Jun-14
|
|
30-Mar-14
|
|
31-Dec-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
$
|
1,483
|
|
|
$
|
3,352
|
|
|
$
|
1,764
|
|
|
$
|
657
|
|
|
$
|
1,180
|
|
|
$
|
6,953
|
|
|
$
|
5,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
933
|
|
|
993
|
|
|
1,185
|
|
|
2,030
|
|
|
997
|
|
|
5,205
|
|
|
4,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
1,405
|
|
|
1,388
|
|
|
1,430
|
|
|
2,482
|
|
|
1,083
|
|
|
6,383
|
|
|
5,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
631
|
|
|
1,356
|
|
|
1,454
|
|
|
1,581
|
|
|
1,019
|
|
|
5,410
|
|
|
5,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon|Websense
|
19
|
|
|
20
|
|
|
45
|
|
|
22
|
|
|
14
|
|
|
101
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
4,471
|
|
|
$
|
7,109
|
|
|
$
|
5,878
|
|
|
$
|
6,772
|
|
|
$
|
4,293
|
|
|
$
|
24,052
|
|
|
$
|
22,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
Second Quarter
2015
|
|
|
|
|
(In
millions)
|
|
|
|
|
28-Jun-15
|
|
31-Dec-14
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,828
|
|
|
$
|
3,222
|
|
Short-term
investments
|
666
|
|
|
1,497
|
|
Contracts in process,
net
|
5,514
|
|
|
4,985
|
|
Inventories
|
519
|
|
|
414
|
|
Prepaid expenses and other
current assets
|
177
|
|
|
174
|
|
Total current assets
|
8,704
|
|
|
10,292
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,929
|
|
|
1,935
|
|
Goodwill
|
14,683
|
|
|
13,061
|
|
Other assets,
net
|
3,121
|
|
|
2,612
|
|
Total assets
|
$
|
28,437
|
|
|
$
|
27,900
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest, and Equity
|
|
|
|
Current
liabilities
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
$
|
1,975
|
|
|
$
|
2,284
|
|
Accounts payable
|
1,171
|
|
|
1,250
|
|
Accrued employee
compensation
|
964
|
|
|
1,059
|
|
Accrued income
taxes
|
103
|
|
|
31
|
|
Other current
liabilities
|
1,428
|
|
|
1,306
|
|
Total current liabilities
|
5,641
|
|
|
5,930
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
6,865
|
|
|
6,919
|
|
Long-term
debt
|
5,333
|
|
|
5,330
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
343
|
|
|
—
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
Common stock
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
834
|
|
|
1,309
|
|
Accumulated other
comprehensive loss
|
(7,095)
|
|
|
(7,458)
|
|
Retained earnings
|
16,314
|
|
|
15,671
|
|
Total Raytheon Company stockholders' equity
|
10,056
|
|
|
9,525
|
|
Noncontrolling interests in
subsidiaries
|
199
|
|
|
196
|
|
Total equity
|
10,255
|
|
|
9,721
|
|
Total liabilities, redeemable noncontrolling interest and
equity
|
$
|
28,437
|
|
|
$
|
27,900
|
|
Attachment
E
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
|
|
|
|
|
|
|
|
Net income
|
$
|
503
|
|
|
$
|
553
|
|
|
$
|
1,057
|
|
|
$
|
1,153
|
|
(Income) loss from
discontinued operations, net of tax
|
(1)
|
|
|
(52)
|
|
|
(1)
|
|
|
(59)
|
|
Income from
continuing operations
|
502
|
|
|
501
|
|
|
1,056
|
|
|
1,094
|
|
|
|
|
|
|
|
|
|
Depreciation
|
76
|
|
|
76
|
|
|
149
|
|
|
149
|
|
Amortization
|
40
|
|
|
33
|
|
|
74
|
|
|
67
|
|
Working capital
(excluding pension and income taxes)*
|
56
|
|
|
(181)
|
|
|
(1,076)
|
|
|
(711)
|
|
Other long-term
liabilities
|
(38)
|
|
|
(5)
|
|
|
(43)
|
|
|
(17)
|
|
Pension and other
postretirement benefit plans
|
141
|
|
|
(208)
|
|
|
408
|
|
|
(28)
|
|
Other, net
|
(401)
|
|
|
(63)
|
|
|
(137)
|
|
|
258
|
|
Net operating cash
flow from continuing operations
|
$
|
376
|
|
|
$
|
153
|
|
|
$
|
431
|
|
|
$
|
812
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
$
|
(88)
|
|
|
$
|
(62)
|
|
|
$
|
(143)
|
|
|
$
|
(101)
|
|
Internal use software
spending
|
(13)
|
|
|
(14)
|
|
|
(26)
|
|
|
(26)
|
|
Acquisitions
|
(1,886)
|
|
|
—
|
|
|
(1,892)
|
|
|
—
|
|
Purchases of
short-term investments
|
—
|
|
|
(26)
|
|
|
(148)
|
|
|
(1,371)
|
|
Sales of short-term
investments
|
74
|
|
|
425
|
|
|
209
|
|
|
882
|
|
Maturities of
short-term investments
|
524
|
|
|
195
|
|
|
774
|
|
|
595
|
|
Dividends
|
(205)
|
|
|
(189)
|
|
|
(391)
|
|
|
(363)
|
|
Repurchases of common
stock under stock repurchase programs
|
(200)
|
|
|
(250)
|
|
|
(500)
|
|
|
(450)
|
|
Sale of
noncontrolling interest in Raytheon|Websense
|
343
|
|
|
—
|
|
|
343
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Cash Flow related
to Raytheon|Websense Transaction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
Websense
|
$
|
(1,891)
|
|
|
$
|
—
|
|
|
$
|
(1,891)
|
|
|
$
|
—
|
|
Sale of
noncontrolling interest in Raytheon|Websense
|
343
|
|
|
—
|
|
|
343
|
|
|
—
|
|
Net cash flow related
to Raytheon|Websense
|
$
|
(1,548)
|
|
|
$
|
—
|
|
|
$
|
(1,548)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
* 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 current liabilities from the Consolidated Statements of
Cash Flows.
|
|
|
|
|
|
|
|
|
Attachment
F
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Supplemental EPS
Information
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
28-Jun-15
|
|
29-Jun-14
|
|
28-Jun-15
|
|
29-Jun-14
|
Per share impact of
the FAS/CAS Adjustment (A)
|
$
|
0.10
|
|
|
$
|
0.18
|
|
|
$
|
0.21
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
Raytheon|Websense deferred revenue adjustment (B)
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
Raytheon|Websense amortization of acquired intangible assets
(C)
|
(0.01)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
Raytheon|Websense acquisition related costs (D)
|
(0.05)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
Raytheon|Websense restructuring costs (E)
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of
the IRS tax settlement (F)
|
0.29
|
|
|
—
|
|
|
0.29
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
49
|
|
|
$
|
87
|
|
|
$
|
98
|
|
|
$
|
174
|
|
|
|
Tax effect (at 35%
statutory rate)
|
(17)
|
|
|
(31)
|
|
|
(34)
|
|
|
(61)
|
|
|
After-tax
impact
|
32
|
|
|
56
|
|
|
64
|
|
|
113
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
0.10
|
|
|
$
|
0.18
|
|
|
$
|
0.21
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
Raytheon|Websense
deferred revenue adjustment (1)
|
$
|
(10)
|
|
|
$
|
—
|
|
|
$
|
(10)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(8)
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
|
|
Tax effect (at 35%
statutory rate)
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
After-tax
impact
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
(0.02)
|
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
(C)
|
Raytheon|Websense
amortization of intangibles(1)
|
$
|
(8)
|
|
|
$
|
(1)
|
|
|
$
|
(10)
|
|
|
$
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(6)
|
|
|
(1)
|
|
|
(8)
|
|
|
(2)
|
|
|
|
Tax effect (at 35%
statutory rate)
|
2
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
After-tax
impact
|
(4)
|
|
|
(1)
|
|
|
(5)
|
|
|
(1)
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
(0.01)
|
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Raytheon|Websense
acquisition related costs
|
$
|
(23)
|
|
|
$
|
—
|
|
|
$
|
(25)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%) (2)
|
(22)
|
|
|
—
|
|
|
(24)
|
|
|
—
|
|
|
|
Tax effect (at 35%
statutory rate)
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
After-tax
impact
|
(14)
|
|
|
—
|
|
|
(16)
|
|
|
—
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
(0.05)
|
|
|
$
|
—
|
|
|
$
|
(0.05)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
Raytheon|Websense
restructuring costs
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(4)
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
|
Tax effect (at 35%
statutory rate)
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
After-tax
impact
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
(0.01)
|
|
|
$
|
—
|
|
|
$
|
(0.01)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F)
|
IRS tax
settlement
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
Diluted
shares
|
305.7
|
|
|
313.5
|
|
|
307.2
|
|
|
314.6
|
|
|
Per share
impact
|
$
|
0.29
|
|
|
$
|
—
|
|
|
$
|
0.29
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Raytheon|Websense
deferred revenue adjustment and Raytheon|Websense amortization of
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,
respectively, related to Raytheon|Websense, including historical
Raytheon Cyber Products acquisitions.
|
(2)
|
Raytheon|Websense
acquisition related costs include $6 million of costs for the three
and six months ended June 28, 2015 for which 80.3% is attributable
to Raytheon Company. The remaining $17 million and $19 million for
the three and six months ended June 28, 2015, respectively, were
100% attributable to Raytheon Company.
|
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Pam
Erickson
781.522.5822
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/raytheon-reports-solid-second-quarter-2015-results-300117457.html
SOURCE Raytheon Company