WALTHAM, Mass., Jan. 28, 2016 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) announced net sales for the fourth quarter 2015
of $6.3 billion, up 3 percent
compared to $6.1 billion in the
fourth quarter 2014. Fourth quarter 2015 EPS from continuing
operations was $1.85 compared to
$1.86 in the fourth quarter 2014.
Fourth quarter 2015 EPS from continuing operations included, as
expected, an $0.08 unfavorable impact
associated with acquisition accounting adjustments related to
Forcepoint™, formerly known as Raytheon|Websense.
Net sales in 2015 were $23.2
billion, up 2 percent compared to $22.8 billion in 2014. Full-year 2015 EPS from
continuing operations was $6.75
compared to $6.97 for the full-year
2014. Full-year 2015 EPS from continuing operations included, as
expected, a $0.25 unfavorable impact
associated with Forcepoint acquisition accounting adjustments and
acquisition-related costs discussed in further detail below.
"Raytheon delivered solid operating performance and returned to
growth in 2015. Strong bookings during the year from our global
customers position us well for continued growth in 2016," said
Thomas A. Kennedy, Raytheon Chairman
and CEO. "As we look ahead, we remain focused on creating value for
our shareholders and customers by delivering strong program
execution, while also investing in our future and pursuing a
balanced capital deployment strategy."
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 2015 was $813 million compared to $829 million for the fourth quarter 2014. Fourth
quarter 2015 operating cash flow from continuing operations was
after a $200 million pretax
discretionary cash contribution to the Company's pension plans
compared to $600 million in the
fourth quarter 2014. For the full-year 2015 and 2014, the Company
generated $2.3 billion and
$2.1 billion of operating cash flow
from continuing operations, respectively.
Summary Financial
Results
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4th
Quarter
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%
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Twelve
Months
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%
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($ in millions,
except per share data)
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2015
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2014
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Change
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2015
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2014
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Change
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Bookings
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$
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7,861
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$
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7,109
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10.6%
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$
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25,227
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$
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24,052
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4.9%
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Net Sales
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$
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6,328
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$
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6,143
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3.0%
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$
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23,247
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$
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22,826
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1.8%
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Income from
Continuing Operations attributable to
Raytheon
Company
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$
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558
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$
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576
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-3.1%
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$
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2,061
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$
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2,179
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-5.4%
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EPS from Continuing
Operations
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$
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1.85
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$
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1.86
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-0.5%
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$
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6.75
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$
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6.97
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-3.2%
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Operating Cash Flow
from Continuing Operations
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$
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813
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$
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829
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$
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2,346
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$
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2,064
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Workdays in Fiscal
Reporting Calendar
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61
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60
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249
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249
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The Company had bookings of $7.9
billion in the fourth quarter 2015, resulting in a
book-to-bill ratio of 1.24 in the quarter. Fourth quarter 2014
bookings were $7.1 billion. Full-year
2015 bookings were $25.2 billion,
resulting in a book-to-bill ratio of 1.09 for the year. Full-year
2014 bookings were $24.1 billion.
In the fourth quarter 2015, the Company repurchased 2.0 million
shares of common stock for $250
million. For the full-year 2015, the Company repurchased 9.0
million shares of common stock for $1.0
billion. Also, as previously announced in November 2015, 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 ended 2015 with $2.1
billion of net debt. Net debt is defined as total debt less
cash and cash equivalents and short-term investments.
Fourth quarter and full-year 2015 results include items related
to the Forcepoint transaction which are excluded from segment
operating performance since management does not consider those
items in evaluating the segment.
Forcepoint
Acquisition Accounting Adjustments and Acquisition-Related
Costs1
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4th Quarter
2015
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Twelve Months
2015
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($ in millions,
except per share data)
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Operating
Income
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EPS
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Operating
Income
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EPS
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Deferred Revenue
Adjustment2
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$
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(24)
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$
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(0.04)
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$
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(61)
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$
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(0.10)
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Amortization of
Acquired Intangibles
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$
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(24)
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$
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(0.04)
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$
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(58)
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$
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(0.10)
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Acquisition-Related
Costs
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$
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—
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$
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—
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$
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(26)
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$
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(0.05)
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Amounts excluded from segment results
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$
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(48)
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$
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(0.08)
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$
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(145)
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$
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(0.25)
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1See Attachment F for a
reconciliation of how each of these items is
calculated.
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2Deferred Revenue Adjustment
represents the impact of fair value adjustments to deferred revenue
related to Forcepoint including historical Raytheon Cyber Products
acquisitions.
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Backlog
($ in
millions)
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Period
Ending
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2015
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2014
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Backlog
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$
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34,669
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$
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33,571
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Funded
Backlog
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$
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25,060
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$
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23,092
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Backlog at the end of 2015 was $34.7
billion, an increase of approximately $1.1 billion compared to the end of 2014. Funded
backlog was $25.1 billion, an
increase of approximately $2.0
billion compared to the end of 2014.
Outlook
The Company has provided its financial outlook for 2016. Charts
containing additional information on the Company's 2016 outlook are
available on the Company's website at www.raytheon.com/ir.
Effective January 1, 2016, the
Company reclassified, for all business segments, acquisition
accounting adjustments related to the amortization of acquired
intangibles and adjustments to record acquired deferred revenue at
fair value, such that they will no longer be reported within the
business segments and will instead be reported in separate deferred
revenue adjustment and amortization of intangibles line items. The
2015 deferred revenue adjustment and amortization of acquired
intangibles in the table below have been recast to reflect this
change.
2016 Financial
Outlook
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2015
Actual
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2016
Outlook
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Net Sales
($B)
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23.2
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24.0 -
24.5
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Deferred Revenue
Adjustment ($M)1
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(61)
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(67)
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Amortization of
Acquired Intangibles ($M)1
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(107)
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(121)
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FAS/CAS Adjustment
($M)
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185
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428
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Interest Expense, net
($M)
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(222)
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(220) -
(230)
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Diluted Shares
(M)
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305
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296 - 298
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Effective Tax
Rate
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26.3%
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~30.0%
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EPS from Continuing
Operations
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6.75
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$6.80 -
$7.00
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Operating Cash Flow
from Continuing Operations ($B)
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2.3
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2.7 -
3.0
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1Deferred Revenue Adjustment and
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 for all business segments. 2015 Deferred Revenue Adjustment
and Amortization of Intangibles in the table above have been recast
under the new segment reporting methodology described above. Under
the prior method, the 2015 Deferred Revenue Adjustment and
Amortization of Intangibles were ($61M) and ($58M), respectively,
for the Forcepoint segment only. Additionally, the outlook above
includes the initial estimated impact of the Stonesoft &
Sidewinder acquisitions, which closed on January 13,
2016.
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Segment Results
The Company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); Space and Airborne Systems (SAS); and
Forcepoint.
Effective January 1, 2016, in
order to gain additional efficiencies, the Company reorganized the
IDS and IIS business segments to move certain air traffic systems,
border and critical infrastructure protection and highway tolling
programs from IDS to IIS.
The pro-forma attachments at the end of this release present
prior period segment data recasted to reflect these changes and the
acquisition accounting adjustments changes discussed above.
The business results discussed below do not reflect the changes
to segment reporting, because they became effective January 1, 2016:
Integrated Defense
Systems
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4th
Quarter
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Twelve
Months
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|
($ in
millions)
|
2015
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2014
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%
Change
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2015
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2014
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%
Change
|
Net Sales
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$
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1,711
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$
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1,627
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5%
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$
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6,375
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$
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6,085
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5%
|
Operating
Income
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$
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295
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$
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299
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-1%
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$
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917
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$
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974
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-6%
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Operating
Margin
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17.2%
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18.4%
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14.4%
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16.0%
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Integrated Defense Systems (IDS) had fourth quarter 2015 net
sales of $1,711 million, up 5 percent
compared to $1,627 million in the
fourth quarter 2014. The increase in net sales for the quarter was
primarily driven by higher sales on the Air Warfare Destroyer (AWD)
program and on certain international Patriot programs. IDS had
full-year 2015 net sales of $6,375
million, up 5 percent compared to $6,085 million in 2014. The increase in net sales
for the full-year was primarily driven by higher sales on
international Patriot programs.
IDS recorded $295 million of
operating income in the fourth quarter 2015 compared to
$299 million in the fourth quarter
2014. IDS recorded $917 million of
operating income in 2015 compared to $974
million in 2014. The change in operating income for the
full-year was primarily driven by the mix of international Patriot
programs.
During the quarter, IDS booked $255
million on the Zumwalt-class destroyer program for the U.S.
Navy. IDS also booked $189 million to
provide Consolidated Contractor Logistics Support (CCLS) and
$119 million for a radar sustainment
contract for the Missile Defense Agency (MDA), $134 million on the Standard Terminal Automation
Replacement System (STARS) program for the Federal Aviation
Administration (FAA), $81 million for
the AWD program for the Australian Navy, $78
million to provide advanced Patriot air and missile defense
capability for the U.S. Army, and $75
million to provide training and logistics support for an
international customer.
Intelligence,
Information and Services
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4th
Quarter
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|
Twelve
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
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%
Change
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2015
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2014
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%
Change
|
Net Sales
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$
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1,427
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$
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1,517
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-6%
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$
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5,733
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$
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5,889
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-3%
|
Operating
Income1
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$
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99
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$
|
131
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-24%
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$
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599
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$
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495
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NM
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Operating
Margin
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6.9%
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8.6%
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10.4%
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8.4%
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1
Twelve Months 2015 operating income includes the favorable $181
million impact of the first quarter 2015 eBorders
settlement.
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NM = Not
Meaningful
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Intelligence, Information and Services (IIS) had fourth quarter
2015 net sales of $1,427 million
compared to $1,517 million in the
fourth quarter 2014. The change in net sales for the quarter was
primarily driven by lower sales on an international classified
program. IIS had full-year 2015 net sales of $5,733 million compared to $5,889 million in 2014. The change in net sales
for the full-year was primarily driven by lower sales on training
programs and on an international classified program.
IIS recorded $99 million of
operating income in the fourth quarter 2015 compared to
$131 million in the fourth quarter
2014. Operating income for the quarter was impacted by higher costs
on an international classified program. IIS recorded $599 million of operating income in 2015 compared
to $495 million in 2014. The increase
in operating income for the full-year was primarily driven by the
eBorders settlement, which contributed $181
million to operating income in the first quarter 2015.
During the quarter, IIS booked $105
million on a contract to provide intelligence, surveillance
and reconnaissance (ISR) support to the U.S. Air Force and
$78 million to provide technology and
support for the Counter-Narcoterrorism Technology Program Office
(CNTPO). IIS also booked $475 million
on a number of classified contracts.
Missile
Systems
|
|
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4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
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|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
1,879
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|
$
|
1,719
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|
9%
|
|
$
|
6,556
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|
$
|
6,309
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4%
|
Operating
Income
|
$
|
258
|
|
$
|
212
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|
22%
|
|
$
|
867
|
|
$
|
800
|
|
8%
|
Operating
Margin
|
13.7%
|
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12.3%
|
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13.2%
|
|
12.7%
|
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Missile Systems (MS) had fourth quarter 2015 net sales of
$1,879 million, up 9 percent compared
to $1,719 million in the fourth
quarter 2014. The increase in net sales for the quarter was
primarily driven by higher sales on Paveway™. MS had full-year 2015
net sales of $6,556 million compared
to $6,309 million in 2014. The
increase in net sales for the full-year was driven by higher sales
spread across various production programs, including Paveway; the
Tube-launched, Optically-tracked, Wireless-guided (TOW®)
missiles program; and certain missile defense programs.
MS recorded $258 million of
operating income in the fourth quarter 2015 compared to
$212 million in the fourth quarter
2014. The increase in operating income for the quarter was
primarily due to higher volume and higher net program efficiencies
in 2015. MS recorded $867 million of
operating income in 2015 compared to $800
million in 2014. The increase in operating income for the
full-year was primarily due to a change in program mix, and higher
volume and net program efficiencies in 2015.
During the quarter, MS booked $870
million for Paveway, $580
million for Standard Missile-3 (SM-3®), $229
million for Phalanx Weapon Systems, $98
million for the Stinger® Weapon System,
$96 million for Evolved SeaSparrow
Missile (ESSM), and $90 million for
the Rolling Airframe Missile (RAM) program, all for U.S. and
international customers.
Space and Airborne
Systems
|
|
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|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
1,576
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|
$
|
1,660
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|
-5%
|
|
$
|
5,796
|
|
$
|
6,072
|
|
-5%
|
Operating
Income
|
$
|
231
|
|
$
|
217
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|
6%
|
|
$
|
794
|
|
$
|
846
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|
-6%
|
Operating
Margin
|
14.7%
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|
13.1%
|
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13.7%
|
|
13.9%
|
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|
Space and Airborne Systems (SAS) had fourth quarter 2015 net
sales of $1,576 million compared to
$1,660 million in the fourth quarter
2014. The change in net sales for the quarter was spread across
numerous programs. SAS had full-year 2015 net sales of $5,796 million compared to $6,072 million in 2014. The change in net sales
for the full-year was primarily due to lower sales on international
tactical radar systems programs.
SAS recorded $231 million of
operating income in the fourth quarter 2015 compared to
$217 million in the fourth quarter
2014. The increase in operating income for the quarter was
primarily due to favorable mix. SAS recorded $794 million of operating income in 2015 compared
to $846 million in 2014. The change
in operating income for the full-year was primarily due to higher
net program efficiencies in 2014.
During the quarter, SAS booked $102
million on the Navy Multiband Terminal (NMT) program,
$92 million for the production of
Active Electronically Scanned Array (AESA) radars for an
international customer, and $88
million to provide radar components for the U.S Air Force.
SAS also booked $371 million on a
number of classified contracts.
Forcepoint1
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4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net Sales
|
$
|
133
|
|
$
|
23
|
|
NM
|
|
$
|
328
|
|
$
|
104
|
|
NM
|
Operating
Income/(loss)
|
$
|
11
|
|
$
|
(1)
|
|
NM
|
|
$
|
30
|
|
$
|
11
|
|
NM
|
Operating
Margin
|
8.3%
|
|
(4.3)%
|
|
|
|
9.1%
|
|
10.6%
|
|
|
1
Excludes the unfavorable impact of the Forcepoint acquisition
accounting adjustments and certain acquisition-related costs. See
page 2 for more information on these items.
|
NM = Not
Meaningful
|
|
|
|
|
|
|
Forcepoint, formerly known as Raytheon|Websense, had fourth
quarter 2015 net sales of $133
million compared to $23
million in the fourth quarter 2014. Forcepoint had full-year
2015 net sales of $328 million
compared to $104 million in 2014.
Forcepoint recorded $11 million of
operating income in the fourth quarter 2015 compared to a loss of
$1 million in the fourth quarter
2014. Forcepoint recorded $30 million
of operating income in 2015 compared to $11
million in 2014.
The increase in net sales and operating income for both the
quarter and full-year was primarily due to the acquisition of
Websense in May 2015.
About Raytheon
Raytheon Company, with 2015 sales of $23
billion and 61,000 employees worldwide, is a technology and
innovation leader specializing in defense, civil government and
cybersecurity solutions. With a history of innovation spanning 94
years, Raytheon provides state-of-the-art electronics, mission
systems integration, capabilities in C5I (command, control,
communications, computing, cyber and intelligence), sensing,
effects and mission support services. Raytheon is headquartered in
Waltham, Mass. Visit us at
www.raytheon.com and follow us on Twitter @raytheon.
Conference Call on the Fourth Quarter and Full-Year 2015
Financial Results
Raytheon's financial results conference call will be held on
Thursday, January 28, 2016 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 (866)
543-6403 in the U.S. or (617) 213-8896 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 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 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; changes in government
procurement practices; the impact of competition; the ability to
develop products and technologies; the impact of potential security
and cyber threats, and other disruptions; the ability to recruit
and retain qualified personnel; 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 impact of financial markets and
global economic conditions; 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. This release and the
attachments may contain non-GAAP financial measures. In such event,
a GAAP reconciliation and a discussion of the Company's use of
these measures are included in this release or the attachments.
Investor Relations
Contact
Todd
Ernst
781.522.5141
Media Contact
Pam Erickson
781.522.5822
Attachment
A
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
Preliminary Statement
of Operations Information
|
|
|
|
|
|
|
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,328
|
|
|
$
|
6,143
|
|
|
$
|
23,247
|
|
|
$
|
22,826
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
4,808
|
|
|
4,662
|
|
|
17,574
|
|
|
17,295
|
|
General and administrative expenses
|
|
692
|
|
|
612
|
|
|
2,660
|
|
|
2,352
|
|
Total operating
expenses
|
|
5,500
|
|
|
5,274
|
|
|
20,234
|
|
|
19,647
|
|
Operating
income
|
|
828
|
|
|
869
|
|
|
3,013
|
|
|
3,179
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
Interest expense
|
|
58
|
|
|
55
|
|
|
233
|
|
|
213
|
|
Interest income
|
|
(2)
|
|
|
(2)
|
|
|
(11)
|
|
|
(10)
|
|
Other (income) expense,
net
|
|
(2)
|
|
|
(2)
|
|
|
4
|
|
|
(7)
|
|
Total non-operating
(income) expense, net
|
|
54
|
|
|
51
|
|
|
226
|
|
|
196
|
|
Income from
continuing operations before taxes
|
|
774
|
|
|
818
|
|
|
2,787
|
|
|
2,983
|
|
Federal and foreign
income taxes
|
|
220
|
|
|
238
|
|
|
733
|
|
|
790
|
|
Income from
continuing operations
|
|
554
|
|
|
580
|
|
|
2,054
|
|
|
2,193
|
|
Income (loss) from
discontinued operations, net of tax
|
|
13
|
|
|
6
|
|
|
13
|
|
|
65
|
|
Net income
|
|
567
|
|
|
586
|
|
|
2,067
|
|
|
2,258
|
|
Less: Net income
(loss) attributable to noncontrolling
|
|
|
|
|
|
|
|
|
interests in subsidiaries
|
|
(4)
|
|
|
4
|
|
|
(7)
|
|
|
14
|
|
Net income
attributable to Raytheon Company
|
|
$
|
571
|
|
|
$
|
582
|
|
|
$
|
2,074
|
|
|
$
|
2,244
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.85
|
|
|
$
|
1.86
|
|
|
$
|
6.76
|
|
|
$
|
6.98
|
|
Income (loss) from
discontinued operations, net of tax
|
|
0.04
|
|
|
0.02
|
|
|
0.04
|
|
|
0.21
|
|
Net income
|
|
1.89
|
|
|
1.88
|
|
|
6.81
|
|
|
7.19
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Raytheon
|
|
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.85
|
|
|
$
|
1.86
|
|
|
$
|
6.75
|
|
|
$
|
6.97
|
|
Income (loss) from
discontinued operations, net of tax
|
|
0.04
|
|
|
0.02
|
|
|
0.04
|
|
|
0.21
|
|
Net income
|
|
1.89
|
|
|
1.88
|
|
|
6.80
|
|
|
7.18
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
558
|
|
|
$
|
576
|
|
|
$
|
2,061
|
|
|
$
|
2,179
|
|
Income (loss) from
discontinued operations, net of tax
|
|
13
|
|
|
6
|
|
|
13
|
|
|
65
|
|
Net income
|
|
$
|
571
|
|
|
$
|
582
|
|
|
$
|
2,074
|
|
|
$
|
2,244
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
301.6
|
|
|
309.1
|
|
|
304.8
|
|
|
312.0
|
|
Diluted
|
|
302.1
|
|
|
309.7
|
|
|
305.2
|
|
|
312.6
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth 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
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,711
|
|
|
$
|
1,627
|
|
|
$
|
295
|
|
|
$
|
299
|
|
|
17.2%
|
|
18.4%
|
Intelligence,
Information and Services
|
|
1,427
|
|
|
1,517
|
|
|
99
|
|
|
131
|
|
|
6.9%
|
|
8.6%
|
Missile
Systems
|
|
1,879
|
|
|
1,719
|
|
|
258
|
|
|
212
|
|
|
13.7%
|
|
12.3%
|
Space and Airborne
Systems
|
|
1,576
|
|
|
1,660
|
|
|
231
|
|
|
217
|
|
|
14.7%
|
|
13.1%
|
Forcepoint(1)
|
|
133
|
|
|
23
|
|
|
11
|
|
|
(1)
|
|
|
8.3%
|
|
(4.3)%
|
Eliminations
|
|
(374)
|
|
|
(403)
|
|
|
(34)
|
|
|
(41)
|
|
|
|
|
|
Total business
segment
|
|
6,352
|
|
|
6,143
|
|
|
860
|
|
|
817
|
|
|
13.5%
|
|
13.3%
|
Acquisition
Accounting Adjustments(2)
|
|
(24)
|
|
|
—
|
|
|
(48)
|
|
|
(2)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
44
|
|
|
70
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(28)
|
|
|
(16)
|
|
|
|
|
|
Total
|
|
$
|
6,328
|
|
|
$
|
6,143
|
|
|
$
|
828
|
|
|
$
|
869
|
|
|
13.1%
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
(In millions, except
percentages)
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
6,375
|
|
|
$
|
6,085
|
|
|
$
|
917
|
|
|
$
|
974
|
|
|
14.4%
|
|
16.0%
|
Intelligence,
Information and Services
|
|
5,733
|
|
|
5,889
|
|
|
599
|
|
|
495
|
|
|
10.4%
|
|
8.4%
|
Missile
Systems
|
|
6,556
|
|
|
6,309
|
|
|
867
|
|
|
800
|
|
|
13.2%
|
|
12.7%
|
Space and Airborne
Systems
|
|
5,796
|
|
|
6,072
|
|
|
794
|
|
|
846
|
|
|
13.7%
|
|
13.9%
|
Forcepoint(1)
|
|
328
|
|
|
104
|
|
|
30
|
|
|
11
|
|
|
9.1%
|
|
10.6%
|
Eliminations
|
|
(1,480)
|
|
|
(1,633)
|
|
|
(159)
|
|
|
(166)
|
|
|
|
|
|
Total business
segment
|
|
23,308
|
|
|
22,826
|
|
|
3,048
|
|
|
2,960
|
|
|
13.1%
|
|
13.0%
|
Acquisition
Accounting Adjustments(2)
|
|
(61)
|
|
|
—
|
|
|
(119)
|
|
|
(6)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
185
|
|
|
286
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(101)
|
|
|
(61)
|
|
|
|
|
|
Total
|
|
$
|
23,247
|
|
|
$
|
22,826
|
|
|
$
|
3,013
|
|
|
$
|
3,179
|
|
|
13.0%
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes the unfavorable impact of the Forcepoint acquisition
accounting adjustments and certain acquisition-related costs. See
Attachment F for more information on these items.
|
(2)
Acquisition accounting adjustments are associated with Forcepoint
only and do not include the acquisition accounting adjustment
reclassification for all of our businesses described on the
following page.
|
Attachment B - Pro
Forma
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
Pro Forma Segment
Information
|
|
Full Year 2014, and
Quarters within and Full Year 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2016, we reorganized our Integrated Defense Systems (IDS) and
Intelligence, Information and Services (IIS) business segments to
move certain air traffic systems, border and critical
infrastructure protection and highway tolling programs from IDS to
IIS. Additionally, also effective January 1, 2016, we reclassified,
with respect to our IDS, IIS, Missile Systems (MS) and Space and
Airborne Systems (SAS) businesses, acquisition accounting
adjustments related to the amortization of acquired intangibles and
adjustments to record acquired deferred revenue at fair value from
the results of our business segments to the Acquisition Accounting
Adjustments line. Prior to January 1, 2016, only those acquisition
accounting adjustments associated with Forcepoint were reported in
the Acquisitions Accounting Adjustments line. The amounts and
presentation of our business segments, including corporate and
eliminations for intersegment activity set forth below reflect
these changes. Please see Attachment G for supplemental
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems(1)
|
|
$
|
1,558
|
|
|
$
|
1,417
|
|
|
$
|
1,565
|
|
|
$
|
1,307
|
|
|
$
|
5,847
|
|
|
$
|
5,600
|
|
|
Intelligence,
Information and Services(1)
|
|
1,537
|
|
|
1,519
|
|
|
1,594
|
|
|
1,461
|
|
|
6,111
|
|
|
6,222
|
|
|
Missile
Systems(1)
|
|
1,879
|
|
|
1,645
|
|
|
1,559
|
|
|
1,473
|
|
|
6,556
|
|
|
6,309
|
|
|
Space and Airborne
Systems(1)
|
|
1,576
|
|
|
1,446
|
|
|
1,416
|
|
|
1,358
|
|
|
5,796
|
|
|
6,075
|
|
|
Forcepoint(1)
|
|
133
|
|
|
114
|
|
|
57
|
|
|
24
|
|
|
328
|
|
|
104
|
|
|
Eliminations
|
|
(331)
|
|
|
(331)
|
|
|
(333)
|
|
|
(335)
|
|
|
(1,330)
|
|
|
(1,481)
|
|
|
Total business
segment
|
|
6,352
|
|
|
5,810
|
|
|
5,858
|
|
|
5,288
|
|
|
23,308
|
|
|
22,829
|
|
|
Acquisition
Accounting Adjustments
|
|
(24)
|
|
|
(27)
|
|
|
(10)
|
|
|
—
|
|
|
(61)
|
|
|
(3)
|
|
|
Total
|
|
$
|
6,328
|
|
|
$
|
5,783
|
|
|
$
|
5,848
|
|
|
$
|
5,288
|
|
|
$
|
23,247
|
|
|
$
|
22,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
Operating
Income
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems(1)
|
|
$
|
281
|
|
|
$
|
198
|
|
|
$
|
202
|
|
|
$
|
183
|
|
|
$
|
864
|
|
|
$
|
928
|
|
|
Intelligence,
Information and Services(1)
|
|
111
|
|
|
118
|
|
|
122
|
|
|
295
|
|
|
646
|
|
|
532
|
|
|
Missile
Systems(1)
|
|
258
|
|
|
219
|
|
|
184
|
|
|
207
|
|
|
868
|
|
|
801
|
|
|
Space and Airborne
Systems(1)
|
|
239
|
|
|
213
|
|
|
195
|
|
|
182
|
|
|
829
|
|
|
886
|
|
|
Forcepoint(1)
|
|
11
|
|
|
20
|
|
|
(1)
|
|
|
—
|
|
|
30
|
|
|
11
|
|
|
Eliminations
|
|
(29)
|
|
|
(42)
|
|
|
(36)
|
|
|
(33)
|
|
|
(140)
|
|
|
(149)
|
|
|
Total business
segment
|
|
871
|
|
|
726
|
|
|
666
|
|
|
834
|
|
|
3,097
|
|
|
3,009
|
|
|
Acquisition
Accounting Adjustments
|
|
(59)
|
|
|
(63)
|
|
|
(32)
|
|
|
(14)
|
|
|
(168)
|
|
|
(55)
|
|
|
FAS/CAS
Adjustment
|
|
44
|
|
|
43
|
|
|
49
|
|
|
49
|
|
|
185
|
|
|
286
|
|
|
Corporate
|
|
(28)
|
|
|
(9)
|
|
|
(35)
|
|
|
(29)
|
|
|
(101)
|
|
|
(61)
|
|
|
Total
|
|
$
|
828
|
|
|
$
|
697
|
|
|
$
|
648
|
|
|
$
|
840
|
|
|
$
|
3,013
|
|
|
$
|
3,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
Operating
Income
|
|
|
As a Percentage of
Net Sales
|
|
As a Percentage of
Net Sales
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems(1)
|
|
18.0%
|
|
14.0%
|
|
12.9%
|
|
14.0%
|
|
14.8%
|
|
16.6%
|
|
Intelligence,
Information and Services(1)
|
|
7.2%
|
|
7.8%
|
|
7.7%
|
|
20.2%
|
|
10.6%
|
|
8.6%
|
|
Missile
Systems(1)
|
|
13.7%
|
|
13.3%
|
|
11.8%
|
|
14.1%
|
|
13.2%
|
|
12.7%
|
|
Space and Airborne
Systems(1)
|
|
15.2%
|
|
14.7%
|
|
13.8%
|
|
13.4%
|
|
14.3%
|
|
14.6%
|
|
Forcepoint(1)
|
|
8.3%
|
|
17.5%
|
|
(1.8)%
|
|
—%
|
|
9.1%
|
|
10.6%
|
|
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
segment
|
|
13.7%
|
|
12.5%
|
|
11.4%
|
|
15.8%
|
|
13.3%
|
|
13.2%
|
|
Acquisition
Accounting Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
13.1%
|
|
12.1%
|
|
11.1%
|
|
15.9%
|
|
13.0%
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes the
unfavorable impact of acquisition accounting adjustments and
certain acquisition-related costs as shown on Attachment
G.
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
9,600
|
|
|
$
|
8,939
|
|
|
$
|
11,842
|
|
|
$
|
11,495
|
|
Intelligence,
Information and Services
|
|
2,294
|
|
|
2,854
|
|
|
5,154
|
|
|
5,825
|
|
Missile
Systems
|
|
7,998
|
|
|
6,992
|
|
|
10,885
|
|
|
9,269
|
|
Space and Airborne
Systems
|
|
4,692
|
|
|
4,259
|
|
|
6,309
|
|
|
6,930
|
|
Forcepoint
|
|
476
|
|
|
48
|
|
|
479
|
|
|
52
|
|
Total
|
|
$
|
25,060
|
|
|
$
|
23,092
|
|
|
$
|
34,669
|
|
|
$
|
33,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
$
|
7,861
|
|
|
$
|
7,109
|
|
|
$
|
25,227
|
|
|
$
|
24,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
$
|
497
|
|
|
$
|
468
|
|
|
$
|
1,954
|
|
|
$
|
1,852
|
|
Research and
development expenses
|
|
|
195
|
|
|
|
144
|
|
|
|
706
|
|
|
|
500
|
|
Total general and
administrative expenses
|
|
$
|
692
|
|
|
$
|
612
|
|
|
$
|
2,660
|
|
|
$
|
2,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment C - Pro
Forma
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Pro Forma Other
Information
|
|
|
|
|
|
|
|
Full Year 2014, and
Quarters within and Full Year 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2016, we reorganized our Integrated Defense Systems (IDS) and
Intelligence, Information and Services (IIS) business segments to
move certain air traffic systems, border and critical
infrastructure protection and highway tolling programs from IDS to
IIS. The amounts and presentation of our business segments set
forth below reflect this change.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
|
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
8,961
|
|
|
$
|
8,257
|
|
|
$
|
10,629
|
|
|
$
|
10,362
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
|
2,933
|
|
|
3,536
|
|
|
6,367
|
|
|
6,958
|
|
Missile
Systems
|
|
|
|
|
|
|
7,998
|
|
|
6,992
|
|
|
10,885
|
|
|
9,269
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
4,692
|
|
|
4,259
|
|
|
6,309
|
|
|
6,930
|
|
Forcepoint
|
|
|
|
|
|
|
476
|
|
|
48
|
|
|
479
|
|
|
52
|
|
Total
|
|
|
|
|
|
|
$
|
25,060
|
|
|
$
|
23,092
|
|
|
$
|
34,669
|
|
|
$
|
33,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
Bookings
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
$
|
1,754
|
|
|
$
|
657
|
|
|
$
|
2,650
|
|
|
$
|
1,328
|
|
|
$
|
6,389
|
|
|
$
|
6,174
|
|
Intelligence,
Information and Services
|
|
|
1,371
|
|
|
1,532
|
|
|
1,425
|
|
|
1,088
|
|
|
5,416
|
|
|
5,984
|
|
Missile
Systems
|
|
|
2,733
|
|
|
1,780
|
|
|
2,216
|
|
|
1,405
|
|
|
8,134
|
|
|
6,383
|
|
Space and Airborne
Systems
|
|
|
1,848
|
|
|
1,217
|
|
|
1,240
|
|
|
631
|
|
|
4,936
|
|
|
5,410
|
|
Forcepoint
|
|
|
155
|
|
|
129
|
|
|
49
|
|
|
19
|
|
|
352
|
|
|
101
|
|
Total
|
|
|
$
|
7,861
|
|
|
$
|
5,315
|
|
|
$
|
7,580
|
|
|
$
|
4,471
|
|
|
$
|
25,227
|
|
|
$
|
24,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
Fourth Quarter
2015
|
|
|
|
|
(In
millions)
|
|
|
|
|
31-Dec-15
|
|
31-Dec-14
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,328
|
|
|
$
|
3,222
|
|
Short-term
investments
|
872
|
|
|
1,497
|
|
Contracts in process,
net
|
5,564
|
|
|
4,985
|
|
Inventories
|
635
|
|
|
414
|
|
Prepaid expenses and other
current assets
|
413
|
|
|
161
|
|
Total current assets
|
9,812
|
|
|
10,279
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,005
|
|
|
1,935
|
|
Goodwill
|
14,731
|
|
|
13,061
|
|
Other assets,
net
|
2,733
|
|
|
2,441
|
|
Total assets
|
$
|
29,281
|
|
|
$
|
27,716
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
$
|
2,193
|
|
|
$
|
2,284
|
|
Accounts payable
|
1,402
|
|
|
1,250
|
|
Accrued employee
compensation
|
1,154
|
|
|
1,059
|
|
Other current
liabilities
|
1,377
|
|
|
1,159
|
|
Total current liabilities
|
6,126
|
|
|
5,752
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
7,140
|
|
|
6,918
|
|
Long-term
debt
|
5,330
|
|
|
5,325
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
355
|
|
|
—
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
Common stock
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
398
|
|
|
1,309
|
|
Accumulated other
comprehensive loss
|
(7,176)
|
|
|
(7,458)
|
|
Retained earnings
|
16,903
|
|
|
15,671
|
|
Total Raytheon Company stockholders' equity
|
10,128
|
|
|
9,525
|
|
Noncontrolling interests in
subsidiaries
|
202
|
|
|
196
|
|
Total equity
|
10,330
|
|
|
9,721
|
|
Total liabilities, redeemable noncontrolling interest and
equity
|
$
|
29,281
|
|
|
$
|
27,716
|
|
Attachment
E
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
(In
millions)
|
Dec 31,
2015
|
|
Dec 31,
2014
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
2,067
|
|
|
$
|
2,258
|
|
(Income) loss from
discontinued operations, net of tax
|
(13)
|
|
|
(65)
|
|
Income from
continuing operations
|
2,054
|
|
|
2,193
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing operations, net of acquisitions and
divestitures
|
|
|
|
Depreciation and
amortization
|
489
|
|
|
439
|
|
Stock-based
compensation
|
140
|
|
|
148
|
|
Deferred income
taxes
|
(56)
|
|
|
(60)
|
|
Tax benefit from
stock-based awards
|
(47)
|
|
|
(47)
|
|
Changes in assets and
liabilities
|
|
|
|
Contracts in process,
net and advance payments and billings in excess of costs
incurred
|
(637)
|
|
|
(162)
|
|
Inventories
|
(223)
|
|
|
(50)
|
|
Prepaid expenses and
other current assets
|
(28)
|
|
|
50
|
|
Accounts
payable
|
107
|
|
|
54
|
|
Income taxes
receivable/payable
|
(181)
|
|
|
(33)
|
|
Accrued employee
compensation
|
72
|
|
|
(20)
|
|
Other accrued
expenses
|
58
|
|
|
(33)
|
|
Accrued retiree
benefits
|
637
|
|
|
(367)
|
|
Other, net
|
(39)
|
|
|
(48)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
2,346
|
|
|
2,064
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
13
|
|
|
120
|
|
Net cash provided by
(used in) operating activities
|
2,359
|
|
|
2,184
|
|
Cash flows from
investing activities
|
|
|
|
Additions to
property, plant and equipment
|
(406)
|
|
|
(326)
|
|
Proceeds from sales
of property, plant and equipment
|
59
|
|
|
9
|
|
Additions to
capitalized internal use software
|
(51)
|
|
|
(54)
|
|
Purchases of
short-term investments
|
(1,392)
|
|
|
(2,914)
|
|
Sales of short-term
investments
|
209
|
|
|
882
|
|
Maturities of
short-term investments
|
1,793
|
|
|
1,523
|
|
Payments for
purchases of acquired companies, net of cash received
|
(1,954)
|
|
|
(427)
|
|
Other
|
(2)
|
|
|
(15)
|
|
Net cash provided by
(used in) investing activities
|
(1,744)
|
|
|
(1,322)
|
|
Cash flows from
financing activities
|
|
|
|
Dividends
paid
|
(797)
|
|
|
(735)
|
|
Issuance of long-term
debt, net of offering costs
|
—
|
|
|
592
|
|
Repurchases of common
stock under share repurchase programs
|
(1,000)
|
|
|
(750)
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(99)
|
|
|
(90)
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
2
|
|
Tax benefit from
stock-based awards
|
47
|
|
|
47
|
|
Sale of
noncontrolling interest in Forcepoint
|
343
|
|
|
—
|
|
Other
|
(3)
|
|
|
(2)
|
|
Net cash provided by
(used in) financing activities
|
(1,509)
|
|
|
(936)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(894)
|
|
|
(74)
|
|
Cash and cash
equivalents at beginning of the period
|
3,222
|
|
|
3,296
|
|
Cash and cash
equivalents at end of period
|
$
|
2,328
|
|
|
$
|
3,222
|
|
Attachment
F
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Supplemental EPS
Information
|
|
|
|
|
|
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
31-Dec-15
|
|
31-Dec-14
|
|
31-Dec-15
|
|
31-Dec-14
|
Per share impact of
the FAS/CAS Adjustment (A)
|
$
|
0.10
|
|
|
$
|
0.15
|
|
|
$
|
0.39
|
|
|
$
|
0.60
|
|
Per share impact of
Forcepoint deferred revenue adjustment (B)
|
(0.04)
|
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
Per share impact of
Forcepoint amortization of acquired intangible assets
(C)
|
(0.04)
|
|
|
—
|
|
|
(0.10)
|
|
|
(0.01)
|
|
Per share impact of
Forcepoint acquisition-related costs (D)
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Per share impact of
the eBorders settlement (E)
|
—
|
|
|
—
|
|
|
0.47
|
|
|
—
|
|
Per share impact of
the IRS tax settlement (F)
|
—
|
|
|
—
|
|
|
0.29
|
|
|
—
|
|
Per share impact of
the tax benefit of cash repatriation (G)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
44
|
|
|
$
|
70
|
|
|
$
|
185
|
|
|
$
|
286
|
|
|
|
Tax effect (at 35%
statutory rate)
|
(15)
|
|
|
(24)
|
|
|
(65)
|
|
|
(100)
|
|
|
After-tax
impact
|
29
|
|
|
46
|
|
|
120
|
|
|
186
|
|
|
Diluted
shares
|
302.1
|
|
|
309.7
|
|
|
305.2
|
|
|
312.6
|
|
|
Per share
impact
|
$
|
0.10
|
|
|
$
|
0.15
|
|
|
$
|
0.39
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
Forcepoint deferred
revenue adjustment (1)
|
$
|
(24)
|
|
|
$
|
—
|
|
|
$
|
(61)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(19)
|
|
|
—
|
|
|
(49)
|
|
|
—
|
|
|
|
Tax effect (at 35%
statutory rate)
|
7
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
After-tax
impact
|
(12)
|
|
|
—
|
|
|
(32)
|
|
|
—
|
|
|
Diluted
shares
|
302.1
|
|
|
—
|
|
|
305.2
|
|
|
—
|
|
|
Per share
impact
|
$
|
(0.04)
|
|
|
$
|
—
|
|
|
$
|
(0.10)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
(C)
|
Forcepoint
amortization of intangibles (1)
|
$
|
(24)
|
|
|
$
|
(2)
|
|
|
$
|
(58)
|
|
|
$
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(19)
|
|
|
(2)
|
|
|
(47)
|
|
|
(5)
|
|
|
|
Tax effect (at 35%
statutory rate)
|
7
|
|
|
1
|
|
|
16
|
|
|
2
|
|
|
After-tax
impact
|
(12)
|
|
|
(1)
|
|
|
(31)
|
|
|
(3)
|
|
|
Diluted
shares
|
302.1
|
|
|
309.7
|
|
|
305.2
|
|
|
312.6
|
|
|
Per share
impact
|
$
|
(0.04)
|
|
|
$
|
—
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Forcepoint
acquisition-related costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(26)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (2)
|
—
|
|
|
—
|
|
|
(25)
|
|
|
—
|
|
|
|
Tax effect (at 35%
statutory rate)
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
After-tax
impact
|
—
|
|
|
—
|
|
|
(16)
|
|
|
—
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
305.2
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.05)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
eBorders
settlement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
|
Tax effect (at 21%
blended global tax rate)
|
|
—
|
|
|
—
|
|
|
(38)
|
|
|
—
|
|
|
After-tax
impact
|
—
|
|
|
—
|
|
|
143
|
|
|
—
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
305.2
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.47
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F)
|
IRS tax
settlement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
305.2
|
|
|
—
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.29
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(G)
|
Tax benefit of cash
repatriation
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
—
|
|
|
312.6
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Forcepoint deferred
revenue adjustment and Forcepoint 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 Forcepoint, including historical Raytheon Cyber Products
acquisitions.
|
(2)
|
Forcepoint
acquisition-related costs include $6 million of costs for the
twelve months ended December 31, 2015 for which 80.3% is
attributable to Raytheon Company. The remaining $20 million for the
twelve months ended December 31, 2015 was 100% attributable to
Raytheon Company.
|
Attachment
G
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Supplemental
Information - Pro Forma Segment Results
|
|
|
|
|
|
|
|
|
Full Year 2014, and
Quarters within and Full Year 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below
provides additional information with respect to our net sales,
operating income, and operating income as a percentage of net sales
results for the periods below on a reported basis and on a pro
forma basis as set forth on Attachment B. Pro forma results reflect
the changes described on Attachment B that were effective January
1, 2016. The pro forma operating income as a percentage of net
sales may not foot due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
Net Sales As
Reported
|
$
|
1,711
|
|
$
|
1,533
|
|
$
|
1,698
|
|
$
|
1,433
|
|
$
|
6,375
|
|
$
|
6,085
|
Realignment of IDS
and IIS (1)
|
(153)
|
|
(116)
|
|
(133)
|
|
(126)
|
|
(528)
|
|
(485)
|
Net Sales - Pro
Forma
|
$
|
1,558
|
|
$
|
1,417
|
|
$
|
1,565
|
|
$
|
1,307
|
|
$
|
5,847
|
|
$
|
5,600
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income As
Reported
|
$
|
295
|
|
$
|
212
|
|
$
|
215
|
|
$
|
195
|
|
$
|
917
|
|
$
|
974
|
Realignment of IDS
and IIS (1)
|
(14)
|
|
(14)
|
|
(14)
|
|
(12)
|
|
(54)
|
|
(48)
|
Adjustment for
Amortization of Acquired Intangibles
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
2
|
Operating Income -
Pro Forma
|
$
|
281
|
|
$
|
198
|
|
$
|
202
|
|
$
|
183
|
|
$
|
864
|
|
$
|
928
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a
% of Net Sales As Reported
|
17.2%
|
|
13.8%
|
|
12.7%
|
|
13.6%
|
|
14.4%
|
|
16.0%
|
Realignment of IDS
and IIS (1)
|
0.8%
|
|
0.1%
|
|
0.2%
|
|
0.4%
|
|
0.4%
|
|
0.5%
|
Adjustment for
Amortization of Acquired Intangibles
|
—%
|
|
—%
|
|
0.1%
|
|
—%
|
|
—%
|
|
—%
|
Operating Income as a
% of Net Sales - Pro Forma
|
18.0%
|
|
14.0%
|
|
12.9%
|
|
14.0%
|
|
14.8%
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
Net Sales As
Reported
|
$
|
1,427
|
|
$
|
1,438
|
|
$
|
1,496
|
|
$
|
1,372
|
|
$
|
5,733
|
|
$
|
5,889
|
Realignment of IDS
and IIS (1)
|
110
|
|
81
|
|
98
|
|
89
|
|
378
|
|
333
|
Net Sales - Pro
Forma
|
$
|
1,537
|
|
$
|
1,519
|
|
$
|
1,594
|
|
$
|
1,461
|
|
$
|
6,111
|
|
$
|
6,222
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income As
Reported
|
$
|
99
|
|
$
|
108
|
|
$
|
108
|
|
$
|
284
|
|
$
|
599
|
|
$
|
495
|
Realignment of IDS
and IIS (1)
|
9
|
|
7
|
|
11
|
|
8
|
|
35
|
|
31
|
Adjustment for
Amortization of Acquired Intangibles
|
3
|
|
3
|
|
3
|
|
3
|
|
12
|
|
6
|
Operating Income -
Pro Forma
|
$
|
111
|
|
$
|
118
|
|
$
|
122
|
|
$
|
295
|
|
$
|
646
|
|
$
|
532
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a
% of Net Sales As Reported
|
6.9%
|
|
7.5%
|
|
7.2%
|
|
20.7%
|
|
10.4%
|
|
8.4%
|
Realignment of IDS
and IIS (1)
|
0.1%
|
|
0.1%
|
|
0.2%
|
|
(0.7)%
|
|
(0.1)%
|
|
0.1%
|
Adjustment for
Amortization of Acquired Intangibles
|
0.2%
|
|
0.2%
|
|
0.2%
|
|
0.2%
|
|
0.2%
|
|
0.1%
|
Operating Income as a
% of Net Sales - Pro Forma
|
7.2%
|
|
7.8%
|
|
7.7%
|
|
20.2%
|
|
10.6%
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
Net Sales As
Reported
|
$
|
1,879
|
|
$
|
1,645
|
|
$
|
1,559
|
|
$
|
1,473
|
|
$
|
6,556
|
|
$
|
6,309
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income As
Reported
|
$
|
258
|
|
$
|
219
|
|
$
|
183
|
|
$
|
207
|
|
$
|
867
|
|
$
|
800
|
Adjustment for
Amortization of Acquired Intangibles
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
1
|
Operating Income -
Pro Forma
|
$
|
258
|
|
$
|
219
|
|
$
|
184
|
|
$
|
207
|
|
$
|
868
|
|
$
|
801
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a
% of Net Sales As Reported
|
13.7%
|
|
13.3%
|
|
11.7%
|
|
14.1%
|
|
13.2%
|
|
12.7%
|
Adjustment for
Amortization of Acquired Intangibles
|
—%
|
|
—%
|
|
0.1%
|
|
—%
|
|
—%
|
|
—%
|
Operating Income as a
% of Net Sales - Pro Forma
|
13.7%
|
|
13.3%
|
|
11.8%
|
|
14.1%
|
|
13.2%
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
31-Dec-15
|
|
27-Sep-15
|
|
28-Jun-15
|
|
29-Mar-15
|
|
31-Dec-15
|
|
31-Dec-14
|
Net Sales As
Reported
|
$
|
1,576
|
|
$
|
1,446
|
|
$
|
1,416
|
|
$
|
1,358
|
|
$
|
5,796
|
|
$
|
6,072
|
Adjustment for
Deferred Revenue Adjustment
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
Net Sales - Pro
Forma
|
$
|
1,576
|
|
$
|
1,446
|
|
$
|
1,416
|
|
$
|
1,358
|
|
$
|
5,796
|
|
$
|
6,075
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income As
Reported
|
$
|
231
|
|
$
|
204
|
|
$
|
186
|
|
$
|
173
|
|
$
|
794
|
|
$
|
846
|
Adjustment for
Deferred Revenue Adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
Adjustment for
Amortization of Acquired Intangibles
|
8
|
|
9
|
|
9
|
|
9
|
|
35
|
|
37
|
Operating Income -
Pro Forma
|
$
|
239
|
|
$
|
213
|
|
$
|
195
|
|
$
|
182
|
|
$
|
829
|
|
$
|
886
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a
% of Net Sales As Reported
|
14.7%
|
|
14.1%
|
|
13.1%
|
|
12.7%
|
|
13.7%
|
|
13.9%
|
Adjustment for
Deferred Revenue Adjustment
|
—%
|
|
—%
|
|
—%
|
|
—%
|
|
—%
|
|
—%
|
Adjustment for
Amortization of Acquired Intangibles
|
0.5%
|
|
0.6%
|
|
0.6%
|
|
0.7%
|
|
0.6%
|
|
0.6%
|
Operating Income as a
% of Net Sales - Pro Forma
|
15.2%
|
|
14.7%
|
|
13.8%
|
|
13.4%
|
|
14.3%
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts adjusted
at IDS differ from amounts adjusted at IIS due to the elimination
of intercompany activity.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/raytheon-reports-solid-fourth-quarter-and-full-year-2015-results-300211040.html
SOURCE Raytheon Company