WALTHAM, Mass., April 28, 2016 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) announced net sales for the first quarter 2016
of $5.8 billion, up 9 percent
compared to $5.3 billion in the first
quarter 2015.
First quarter 2016 EPS from continuing operations was
$1.43 compared to $1.78 in the first quarter 2015. First quarter
2016 EPS from continuing operations included, as expected, an
$0.08 unfavorable impact associated
with acquisition accounting adjustments related to
Forcepoint™, partially offset by a tax benefit of
$0.05 from adopting the new
accounting standard for stock compensation, which was not in the
Company's prior financial outlook. First quarter 2016 EPS from
continuing operations included a favorable FAS/CAS Adjustment of
$0.23 compared to a favorable FAS/CAS
Adjustment of $0.10 in the first
quarter 2015. In addition, first quarter 2015 EPS from continuing
operations included a $0.42 favorable
impact for the eBorders settlement with the U.K. Home Office.
"Raytheon had a good start to 2016 with bookings, sales, EPS and
cash flow ahead of our expectations in the quarter," said
Thomas A. Kennedy, Raytheon Chairman
and CEO. "Demand from our global customers continues to be strong,
with particular strength in bookings from domestic as well as the
Middle East and North Africa region."
Operating cash flow from continuing operations for the first
quarter 2016 was $325 million
compared to $55 million for the first
quarter 2015. The increase in operating cash flow from continuing
operations in the first quarter 2016 was primarily due to the
timing of collections and tax payments.
Summary Financial
Results
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
%
|
($ in millions,
except per share data)
|
2016
|
2015
|
|
Change
|
|
|
|
|
|
Bookings
|
$
|
6,201
|
$
|
4,471
|
|
38.7%
|
Net Sales
|
$
|
5,763
|
$
|
5,288
|
|
9.0%
|
Income from
Continuing Operations attributable to
Raytheon
Company
|
$
|
428
|
$
|
551
|
1
|
-22.3%
|
EPS from Continuing
Operations
|
$
|
1.43
|
$
|
1.78
|
1
|
-19.7%
|
Operating Cash Flow
from Continuing Operations
|
$
|
325
|
$
|
55
|
|
|
Workdays in Fiscal
Reporting Calendar
|
65
|
61
|
|
|
1
First quarter 2015 Income from Continuing Operations
attributable to Raytheon Company and EPS from Continuing Operations
included the favorable $181 million pretax ($131 million after-tax)
and $0.42 impact, respectively, for the eBorders
settlement.
|
The Company had bookings of $6.2
billion in the first quarter 2016, resulting in a
book-to-bill ratio of 1.08 in the quarter. First quarter 2015
bookings were $4.5 billion.
In the first quarter 2016, the Company repurchased 3.2 million
shares of common stock for $400
million. In addition, as previously announced, the Company's
Board of Directors voted to increase the Company's annual dividend
rate by 9.3 percent from $2.68 to
$2.93 per share, the twelfth
consecutive annual dividend increase.
The Company ended the first quarter 2016 with $2.7 billion of net debt. Net debt is defined as
total debt less cash and cash equivalents and short-term
investments.
Backlog
|
|
|
|
|
($ in
millions)
|
Period
Ending
|
|
Q1
2016
|
Q1
2015
|
2015
|
Backlog
|
$
|
34,768
|
$
|
32,485
|
$
|
34,669
|
Funded
Backlog
|
$
|
26,168
|
$
|
23,723
|
$
|
25,060
|
Backlog at the end of the first quarter 2016 was $34.8 billion, an increase of approximately
$2.3 billion compared to the end of
the first quarter 2015. Funded backlog was $26.2 billion, an increase of approximately
$2.4 billion compared to the end of
the first quarter 2015.
Outlook
The Company has updated its financial outlook for 2016. Charts
containing additional information on the Company's 2016 outlook are
available on the Company's website at www.raytheon.com/ir.
2016 Financial
Outlook
|
|
|
|
|
Current
|
|
Prior
(1/28/16)
|
Net Sales
($B)
|
24.0 -
24.5
|
|
24.0 -
24.5
|
Deferred Revenue
Adjustment ($M)1
|
(77)*
|
|
(67)
|
Amortization of
Acquired Intangibles ($M)1
|
(121)
|
|
(121)
|
FAS/CAS Adjustment
($M)
|
428
|
|
428
|
Interest Expense, net
($M)
|
(220) -
(230)
|
|
(220) -
(230)
|
Diluted Shares
(M)
|
296 - 298
|
|
296 - 298
|
Effective Tax
Rate
|
~28.5%*
|
|
~30.0%
|
EPS from Continuing
Operations
|
$6.93 -
$7.13*
|
|
$6.80 -
$7.00
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.7 -
3.0
|
|
2.7 -
3.0
|
* Denotes change
from prior guidance
|
|
|
|
1
Deferred 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.
|
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.
As previously reported, effective January
1, 2016, the Company reclassified, for all business
segments, acquisition accounting adjustments such that they are no
longer reported within the business segments and are instead
reported in separate deferred revenue adjustment and amortization
of acquired intangibles line items. In addition, as previously
reported, effective January 1, 2016,
the Company reorganized the IDS and IIS business segments. The
business results that follow reflect the above changes.
Integrated Defense
Systems
|
|
1st
Quarter
|
|
($ in
millions)
|
2016
|
2015
|
%
Change
|
Net Sales
|
$
|
1,337
|
$
|
1,307
|
2%
|
Operating
Income
|
$
|
147
|
$
|
183
|
-20%
|
Operating
Margin
|
11.0%
|
14.0%
|
|
Integrated Defense Systems (IDS) had first quarter 2016 net
sales of $1,337 million, up 2 percent
compared to $1,307 million in the
first quarter 2015. The increase in net sales for the quarter was
primarily driven by higher sales on certain international Patriot
programs.
IDS recorded $147 million of
operating income in the first quarter 2016 compared to $183 million in the first quarter 2015. The
change in operating income for the quarter was primarily driven by
a $36 million unfavorable program
adjustment. This program is included in one of the Company's joint
ventures. As such, approximately 50 percent of the unfavorable
impact is reversed on the Company's income statement on the net
loss attributable to noncontrolling interest line. The adjustment
is related to costs to replace or repair defective shelters built
by one of our subcontractors on an international command and
control program in the first quarter 2016. The company is
pursuing recovery of these costs.
During the quarter, IDS booked $191
million to provide Patriot engineering services support for
U.S. and international customers and $84
million to provide advanced Patriot air and missile defense
capability for the U.S. Army. IDS also booked $198 million on a classified program.
Intelligence,
Information and Services
|
|
1st
Quarter
|
|
($ in
millions)
|
2016
|
2015
|
%
Change
|
Net Sales
|
$
|
1,493
|
$
|
1,461
|
2%
|
Operating
Income1
|
$
|
100
|
$
|
295
|
NM
|
Operating
Margin
|
6.7%
|
20.2%
|
|
1
First quarter 2015 operating income includes the favorable $181
million impact of the eBorders settlement.
|
NM = Not
Meaningful
|
Intelligence, Information and Services (IIS) had first quarter
2016 net sales of $1,493 million, up
2 percent compared to $1,461 million
in the first quarter 2015. The increase in net sales for the
quarter was primarily driven by higher sales on cybersecurity and
special missions programs.
IIS recorded $100 million of
operating income in the first quarter 2016 compared to $295 million in the first quarter 2015. First
quarter 2015 operating income included the favorable $181 million impact of the eBorders
settlement.
During the quarter, IIS booked $301
million for a U.S. Air Force program. IIS also booked
$555 million on a number of
classified contracts.
Missile
Systems
|
|
1st
Quarter
|
|
($ in
millions)
|
2016
|
2015
|
%
Change
|
Net Sales
|
$
|
1,720
|
$
|
1,473
|
17%
|
Operating
Income
|
$
|
192
|
$
|
207
|
-7%
|
Operating
Margin
|
11.2%
|
14.1%
|
|
Missile Systems (MS) had first quarter 2016 net sales of
$1,720 million, up 17 percent
compared to $1,473 million in the
first quarter 2015. The increase in net sales for the quarter was
primarily driven by higher sales on the Paveway™ and Advanced
Medium-Range Air-to-Air Missile (AMRAAM®) programs.
MS recorded $192 million of
operating income in the first quarter 2016 compared to $207 million in the first quarter 2015. The
decrease in operating income for the quarter was primarily driven
by higher net program efficiencies and a favorable resolution of a
contractual issue in the first quarter 2015, as well as an
unfavorable change on incentive fees on a missile defense program
in the first quarter 2016. This was partially offset by higher
volume and a favorable change in program mix in the first quarter
2016.
During the quarter, MS booked $646
million for AMRAAM for the U.S. Air Force, U.S. Navy and
international customers. MS also booked $272
million for Standard Missile-6 (SM-6™) for the U.S. Navy and
$225 million for Paveway for the U.S.
Air Force and international customers.
Space and Airborne
Systems
|
|
1st
Quarter
|
|
($ in
millions)
|
2016
|
2015
|
%
Change
|
Net Sales
|
$
|
1,450
|
$
|
1,358
|
7%
|
Operating
Income
|
$
|
173
|
$
|
182
|
-5%
|
Operating
Margin
|
11.9%
|
13.4%
|
|
Space and Airborne Systems (SAS) had first quarter 2016 net
sales of $1,450 million, up 7 percent
compared to $1,358 million in the
first quarter 2015. The increase in net sales for the quarter was
primarily driven by higher sales on classified programs, including
an international program.
SAS recorded $173 million of
operating income in the first quarter 2016 compared to $182 million in the first quarter 2015. The
change in operating income for the quarter was primarily due to a
change in program mix.
During the quarter, SAS booked over $650
million on an international classified contract and
$553 million on the Joint Polar
Satellite System (JPSS) program for NASA. SAS also booked
$470 million on a number of domestic
classified contracts.
Shortly after the quarter close, SAS received a $1.0 billion award on the Next Generation Jammer
(NGJ) program for the U.S. Navy.
Forcepoint
|
|
1st
Quarter
|
|
($ in
millions)
|
2016
|
2015
|
%
Change
|
Net Sales
|
$
|
136
|
$
|
24
|
NM
|
Operating
Income
|
$
|
14
|
$
|
—
|
NM
|
Operating
Margin
|
10.3%
|
—
|
|
NM = Not
Meaningful
|
|
|
|
Forcepoint had first quarter 2016 net sales of $136 million compared to $24 million in the first quarter 2015. Forcepoint
recorded $14 million of operating
income in the first quarter 2016. The increase in net sales and
operating income for the quarter was primarily due to the
acquisitions of Websense in May 2015
and Stonesoft in January 2016.
About Raytheon
Raytheon Company, with 2015 sales of $23
billion and 61,000 employees, 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,
C5I™ products and services, sensing, effects, and
mission support for customers in more than 80 countries. Raytheon
is headquartered in Waltham, Mass.
Visit us at www.raytheon.com and follow us on Twitter
@raytheon.
Conference Call on the First Quarter 2016 Financial
Results
Raytheon's financial results conference call will be held on
Thursday, April 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)
202-0886 in the U.S. or (617) 213-8841 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; risks associated with acquisitions, investments,
dispositions, joint ventures and other business arrangements; the
ability to grow in the government and commercial cybersecurity
markets; risks of an impairment of goodwill or other intangible
assets; the use of accounting estimates in the Company's financial
statements; 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
|
|
|
|
|
First Quarter
2016
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
|
3-Apr-16
|
|
29-Mar-15
|
|
|
|
|
|
Net sales
|
|
$
|
5,763
|
|
|
$
|
5,288
|
|
Operating
expenses
|
|
|
|
|
Cost of sales
|
|
4,400
|
|
|
3,833
|
|
General and administrative
expenses
|
|
751
|
|
|
615
|
|
Total operating
expenses
|
|
5,151
|
|
|
4,448
|
|
Operating
income
|
|
612
|
|
|
840
|
|
Non-operating
(income) expense, net
|
|
|
|
|
Interest expense
|
|
58
|
|
|
58
|
|
Interest income
|
|
(4)
|
|
|
(4)
|
|
Other (income) expense,
net
|
|
(2)
|
|
|
(2)
|
|
Total non-operating
(income) expense, net
|
|
52
|
|
|
52
|
|
Income from
continuing operations before taxes
|
|
560
|
|
|
788
|
|
Federal and foreign
income taxes
|
|
156
|
|
|
234
|
|
Income from
continuing operations
|
|
404
|
|
|
554
|
|
Income (loss) from
discontinued operations, net of tax
|
|
1
|
|
|
—
|
|
Net income
|
|
405
|
|
|
554
|
|
Less: Net income
(loss) attributable to noncontrolling
|
|
|
|
|
interests in subsidiaries
|
|
(24)
|
|
|
3
|
|
Net income
attributable to Raytheon Company
|
|
$
|
429
|
|
|
$
|
551
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Raytheon
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.43
|
|
|
$
|
1.79
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
Net income
|
|
1.43
|
|
|
1.79
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Raytheon
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.43
|
|
|
$
|
1.78
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
Net income
|
|
1.43
|
|
|
1.79
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
stockholders:
|
|
|
|
|
Income from continuing
operations
|
|
$
|
428
|
|
|
$
|
551
|
|
Income (loss) from
discontinued operations, net of tax
|
|
1
|
|
|
—
|
|
Net income
|
|
$
|
429
|
|
|
$
|
551
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
Basic
|
|
299.2
|
|
|
308.2
|
|
Diluted
|
|
299.6
|
|
|
308.6
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
3-Apr-16
|
|
29-Mar-15
|
|
3-Apr-16
|
|
29-Mar-15
|
|
3-Apr-16
|
|
29-Mar-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,337
|
|
|
$
|
1,307
|
|
|
$
|
147
|
|
|
$
|
183
|
|
|
11.0%
|
|
14.0%
|
Intelligence,
Information and Services
|
|
1,493
|
|
|
1,461
|
|
|
100
|
|
|
295
|
|
|
6.7%
|
|
20.2%
|
Missile
Systems
|
|
1,720
|
|
|
1,473
|
|
|
192
|
|
|
207
|
|
|
11.2%
|
|
14.1%
|
Space and Airborne
Systems
|
|
1,450
|
|
|
1,358
|
|
|
173
|
|
|
182
|
|
|
11.9%
|
|
13.4%
|
Forcepoint
|
|
136
|
|
|
24
|
|
|
14
|
|
|
—
|
|
|
10.3%
|
|
—%
|
Eliminations
|
|
(347)
|
|
|
(335)
|
|
|
(33)
|
|
|
(33)
|
|
|
|
|
|
Total business
segment
|
|
5,789
|
|
|
5,288
|
|
|
593
|
|
|
834
|
|
|
10.2%
|
|
15.8%
|
Acquisition
Accounting Adjustments
|
|
(26)
|
|
|
—
|
|
|
(58)
|
|
|
(14)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
105
|
|
|
49
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(28)
|
|
|
(29)
|
|
|
|
|
|
Total
|
|
$
|
5,763
|
|
|
$
|
5,288
|
|
|
$
|
612
|
|
|
$
|
840
|
|
|
10.6%
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
|
|
|
|
3-Apr-16
|
|
31-Dec-15
|
|
3-Apr-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
8,776
|
|
|
$
|
8,961
|
|
|
$
|
10,242
|
|
|
$
|
10,629
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
2,962
|
|
|
2,933
|
|
|
6,075
|
|
|
6,367
|
|
Missile
Systems
|
|
|
|
|
|
|
8,332
|
|
|
7,998
|
|
|
10,822
|
|
|
10,885
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
5,618
|
|
|
4,692
|
|
|
7,147
|
|
|
6,309
|
|
Forcepoint
|
|
|
|
|
|
|
480
|
|
|
476
|
|
|
482
|
|
|
479
|
|
Total
|
|
|
|
|
|
|
$
|
26,168
|
|
|
$
|
25,060
|
|
|
$
|
34,768
|
|
|
$
|
34,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
3-Apr-16
|
|
29-Mar-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
|
|
|
|
|
|
|
|
|
$
|
6,201
|
|
|
$
|
4,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
3-Apr-16
|
|
29-Mar-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
|
|
|
|
|
|
|
|
$
|
552
|
|
|
$
|
473
|
|
Research and
development expenses
|
|
|
|
|
|
|
|
|
|
199
|
|
|
142
|
|
Total general and
administrative expenses
|
|
|
|
|
|
|
|
|
|
$
|
751
|
|
|
$
|
615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
First Quarter
2016
|
|
|
|
|
(In
millions)
|
|
|
|
|
3-Apr-16
|
|
31-Dec-15
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,934
|
|
|
$
|
2,328
|
|
Short-term
investments
|
711
|
|
|
872
|
|
Contracts in process,
net
|
5,882
|
|
|
5,564
|
|
Inventories
|
637
|
|
|
635
|
|
Prepaid expenses and other
current assets
|
195
|
|
|
413
|
|
Total current assets
|
9,359
|
|
|
9,812
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,018
|
|
|
2,005
|
|
Goodwill
|
14,791
|
|
|
14,731
|
|
Other assets,
net
|
2,661
|
|
|
2,733
|
|
Total assets
|
$
|
28,829
|
|
|
$
|
29,281
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
Current
liabilities
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
$
|
2,136
|
|
|
$
|
2,193
|
|
Accounts payable
|
1,304
|
|
|
1,402
|
|
Accrued employee
compensation
|
803
|
|
|
1,154
|
|
Other current
liabilities
|
1,506
|
|
|
1,377
|
|
Total current liabilities
|
5,749
|
|
|
6,126
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
7,108
|
|
|
7,140
|
|
Long-term
debt
|
5,332
|
|
|
5,330
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
330
|
|
|
355
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
Common stock
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
30
|
|
|
398
|
|
Accumulated other
comprehensive loss
|
(7,050)
|
|
|
(7,176)
|
|
Retained earnings
|
17,141
|
|
|
16,903
|
|
Total Raytheon Company stockholders' equity
|
10,124
|
|
|
10,128
|
|
Noncontrolling interests in
subsidiaries
|
186
|
|
|
202
|
|
Total equity
|
10,310
|
|
|
10,330
|
|
Total liabilities, redeemable noncontrolling interest and
equity
|
$
|
28,829
|
|
|
$
|
29,281
|
|
Attachment
E
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
First Quarter
2016
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
3-Apr-16
|
|
29-Mar-15
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
405
|
|
|
$
|
554
|
|
(Income) loss from
discontinued operations, net of tax
|
(1)
|
|
|
—
|
|
Income from
continuing operations
|
404
|
|
|
554
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing operations, net of acquisitions and
divestitures
|
|
|
|
Depreciation and
amortization
|
124
|
|
|
107
|
|
Stock-based
compensation
|
54
|
|
|
51
|
|
Deferred income
taxes
|
(38)
|
|
|
(94)
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
(18)
|
|
Changes in assets and
liabilities
|
|
|
|
Contracts in process,
net and advance payments and billings in excess of costs
incurred
|
(362)
|
|
|
(586)
|
|
Inventories
|
—
|
|
|
(93)
|
|
Prepaid expenses and
other current assets
|
149
|
|
|
(190)
|
|
Income taxes
receivable/payable
|
189
|
|
|
326
|
|
Accounts
payable
|
(43)
|
|
|
(112)
|
|
Accrued employee
compensation
|
(351)
|
|
|
(157)
|
|
Other accrued
expenses
|
(37)
|
|
|
8
|
|
Accrued retiree
benefits
|
221
|
|
|
267
|
|
Other, net
|
15
|
|
|
(8)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
325
|
|
|
55
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
1
|
|
|
1
|
|
Net cash provided by
(used in) operating activities
|
326
|
|
|
56
|
|
Cash flows from
investing activities
|
|
|
|
Additions to
property, plant and equipment
|
(150)
|
|
|
(55)
|
|
Proceeds from sales
of property, plant and equipment
|
1
|
|
|
4
|
|
Additions to
capitalized internal use software
|
(12)
|
|
|
(13)
|
|
Purchases of
short-term investments
|
—
|
|
|
(148)
|
|
Sales of short-term
investments
|
—
|
|
|
135
|
|
Maturities of
short-term investments
|
127
|
|
|
250
|
|
Payments for
purchases of acquired companies, net of cash received
|
(57)
|
|
|
(6)
|
|
Other
|
—
|
|
|
(31)
|
|
Net cash provided by
(used in) investing activities
|
(91)
|
|
|
136
|
|
Cash flows from
financing activities
|
|
|
|
Dividends
paid
|
(201)
|
|
|
(186)
|
|
Repurchases of common
stock under share repurchase programs
|
(400)
|
|
|
(300)
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(34)
|
|
|
(40)
|
|
Contribution from
noncontrolling interests
|
11
|
|
|
—
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
18
|
|
Other
|
(5)
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(629)
|
|
|
(508)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(394)
|
|
|
(316)
|
|
Cash and cash
equivalents at beginning of the period
|
2,328
|
|
|
3,222
|
|
Cash and cash
equivalents at end of period
|
$
|
1,934
|
|
|
$
|
2,906
|
|
Attachment
F
|
Raytheon
Company
|
Supplemental EPS
Information
|
First Quarter
2016
|
|
(In millions, except
per share amounts)
|
Three Months
Ended
|
|
3-Apr-16
|
|
29-Mar-15
|
Per share impact of
the FAS/CAS Adjustment (A)
|
$
|
0.23
|
|
|
$
|
0.10
|
|
Per share impact of
Forcepoint acquisition accounting adjustments (B)
|
(0.08)
|
|
|
—
|
|
Per share impact of
all other acquisition accounting adjustments (excluding Forcepoint)
(C)
|
(0.02)
|
|
|
(0.03)
|
|
Per share impact of
adoption of new accounting standard for stock compensation
(D)
|
0.05
|
|
|
—
|
|
Per share impact of
the eBorders settlement (E)
|
—
|
|
|
0.42
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
105
|
|
|
$
|
49
|
|
|
Tax effect (at 35% statutory rate)
|
(37)
|
|
|
(17)
|
|
|
After-tax
impact
|
68
|
|
|
32
|
|
|
Diluted
shares
|
299.6
|
|
|
308.6
|
|
|
Per share
impact
|
$
|
0.23
|
|
|
$
|
0.10
|
|
|
|
|
|
|
(B)
|
Forcepoint deferred
revenue adjustment
|
$
|
(26)
|
|
|
$
|
—
|
|
|
Forcepoint
amortization of acquired intangibles
|
(22)
|
|
|
(2)
|
|
|
Total Forcepoint
acquisition accounting adjustments
|
(48)
|
|
|
(2)
|
|
|
|
|
|
|
|
Amount attributable
to Raytheon Company (80.3%)
|
(39)
|
|
|
(2)
|
|
|
Tax effect (at 35% statutory rate)
|
14
|
|
|
1
|
|
|
After-tax
impact
|
(25)
|
|
|
(1)
|
|
|
Diluted
shares
|
299.6
|
|
|
308.6
|
|
|
Per share
impact
|
$
|
(0.08)
|
|
|
$
|
—
|
|
|
|
|
|
|
(C)
|
IDS amortization of
acquired intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
IIS amortization of
acquired intangibles
|
(5)
|
|
|
(3)
|
|
|
MS amortization of
acquired intangibles
|
—
|
|
|
—
|
|
|
SAS amortization of
acquired intangibles
|
(5)
|
|
|
(9)
|
|
|
Total all other
acquisition accounting adjustments (excluding
Forcepoint)
|
(10)
|
|
|
(12)
|
|
|
Tax effect (at 35% statutory rate)
|
3
|
|
|
4
|
|
|
After-tax
impact
|
(7)
|
|
|
(8)
|
|
|
Diluted
shares
|
299.6
|
|
|
308.6
|
|
|
Per share
impact
|
$
|
(0.02)
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
(D)
|
Adoption of new
accounting standard for stock compensation
|
$
|
16
|
|
|
$
|
—
|
|
|
Diluted
shares
|
299.6
|
|
|
—
|
|
|
Per share
impact
|
$
|
0.05
|
|
|
$
|
—
|
|
|
|
|
|
|
(E)
|
eBorders
settlement
|
$
|
—
|
|
|
$
|
181
|
|
|
Tax effect (at 27.7% blended global tax rate)
|
—
|
|
|
(50)
|
|
|
After-tax
impact
|
—
|
|
|
131
|
|
|
Diluted
shares
|
—
|
|
|
308.6
|
|
|
Per share
impact
|
$
|
—
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/raytheon-reports-solid-first-quarter-2016-results-300258609.html
SOURCE Raytheon Company