WALTHAM, Mass., April 24, 2014 /PRNewswire/ -- Raytheon
Company (NYSE: RTN) announced first quarter 2014 EPS from
continuing operations of $1.87
compared to $1.49 in the first
quarter 2013. First quarter 2014 Adjusted EPS1 was
$1.43 per diluted share compared to
$1.56 per diluted share in the first
quarter 2013. The first quarter 2014 Adjusted EPS1
excluded the previously announced $0.25 favorable tax impact from cash repatriation
in the first quarter 2014. In addition, the first quarter 2014
Adjusted EPS1 excluded a favorable FAS/CAS Adjustment of
$0.18, compared with an unfavorable
FAS/CAS Adjustment of $0.14 in the
first quarter 2013. The first quarter 2013 Adjusted EPS1
also excluded $0.08 associated with
the impact of the 2012 research and development (R&D) tax
credit approved by Congress in January
2013.
"Raytheon delivered solid operating performance in the first
quarter," said Thomas A. Kennedy,
Raytheon's CEO. "Our longstanding focus on operational
excellence, consistent program performance and a portfolio of
affordable and innovative solutions provides a strong foundation
for ongoing value creation for our global customers and
shareholders."
_____________________________
1 Adjusted EPS is diluted EPS from continuing
operations attributable to Raytheon Company common stockholders,
and Adjusted Operating Margin is total operating margin; in each
case, excluding the impact of the FAS/CAS Adjustment, and from time
to time, certain other items. First quarter 2014 Adjusted EPS
excluded the $0.25 favorable tax
impact of approximately $80 million
resulting from cash repatriation in the first quarter 2014. First
quarter 2013 Adjusted EPS excluded the $0.08 impact of the 2012 research and development
(R&D) tax credit, approved by Congress in January 2013 that relates to 2012. Adjusted EPS
and Adjusted Operating Margin are non-GAAP financial measures. See
attachment F for a reconciliation of these measures and a
discussion of why the Company is presenting this information.
|
Summary Financial
Results
|
|
1st
Quarter
|
|
%
|
($ in millions,
except per share data)
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
Net Sales
|
$
|
5,508
|
|
$
|
5,879
|
|
-6.3%
|
Income from
Continuing Operations attributable to
Raytheon
Company
|
$
|
589
|
|
$
|
490
|
|
20.2%
|
Adjusted
Income*
|
$
|
452
|
|
$
|
511
|
|
-11.5%
|
EPS from Continuing
Operations
|
$
|
1.87
|
|
$
|
1.49
|
|
25.5%
|
Adjusted
EPS*
|
$
|
1.43
|
|
$
|
1.56
|
|
-8.3%
|
Operating Cash Flow
from Continuing Operations
|
$
|
659
|
|
$
|
422
|
|
|
Workdays in Fiscal
Reporting Calendar
|
62
|
|
63
|
|
|
|
|
|
|
|
|
* Adjusted Income
is income from continuing operations attributable to Raytheon
Company common stockholders, and Adjusted EPS is diluted EPS from
continuing operations attributable to Raytheon Company common
stockholders; in each case, excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items.
First quarter 2014 Adjusted Income and Adjusted EPS excluded the
approximately $80 million and $0.25 impact, respectively, of a
favorable tax impact resulting from cash repatriation in the first
quarter 2014. First quarter 2013 Adjusted Income and Adjusted EPS
excluded the $25 million and $0.08 impact, respectively, of the
2012 R&D tax credit. See attachment F for a reconciliation of
these measures and a discussion of why the Company is presenting
this information.
|
|
Net sales for the first quarter 2014 were $5.5 billion compared to $5.9 billion in the first quarter 2013. Net sales
for the first quarter 2014 were in-line with the Company's prior
financial guidance.
The Company generated strong operating cash flow for the first
quarter 2014. Operating cash flow from continuing operations for
the first quarter 2014 was $659
million compared to $422
million for the first quarter 2013. The increase in
operating cash from continuing operations in the first quarter 2014
was primarily due to the timing of collections.
In the first quarter 2014, the Company repurchased 2.1 million
shares of common stock for $200
million. In addition, as previously announced, the Company's
Board of Directors voted to increase the Company's annual dividend
rate by 10 percent from $2.20 to
$2.42 per share, the tenth
consecutive annual dividend increase.
The Company ended the first quarter 2014 with $204 million of net debt. Net debt is defined as
total debt less cash and cash equivalents and short-term
investments.
Bookings and Backlog
|
Bookings
|
|
|
|
|
Backlog
|
|
|
|
|
|
($ in
millions)
|
1st
Quarter
|
|
($ in
millions)
|
Period
Ending
|
|
2014
|
|
2013
|
|
|
Q1
2014
|
Q1
2013
|
|
2013
|
Bookings
|
$
|
4,293
|
|
$
|
3,606
|
|
Backlog
|
$
|
32,183
|
|
$
|
33,546
|
|
$
|
33,685
|
|
|
|
|
|
Funded
Backlog
|
$
|
22,745
|
|
$
|
22,523
|
|
$
|
23,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company had bookings of $4.3
billion in the first quarter 2014, and ended the first
quarter 2014 with a backlog of $32.2
billion and a funded backlog of $22.7
billion, an increase of $222
million compared to the first quarter 2013.
Outlook
The Company is reaffirming its prior financial outlook for 2014.
Charts containing additional information on the Company's 2014
outlook are available on the Company's website at
www.raytheon.com/ir.
|
2014 Financial
Outlook
|
|
|
|
|
|
Net Sales
($B)
|
|
22.5 -
23.0
|
FAS/CAS Adjustment
($M)
|
|
346
|
Interest Expense, net
($M)
|
|
(200) -
(210)
|
Diluted Shares
(M)
|
|
312 - 314
|
Effective Tax
Rate
|
|
Approx.
28.5%
|
EPS from Continuing
Operations
|
|
$6.74 -
$6.89
|
Adjusted
EPS*
|
|
$5.76 -
$5.91
|
Operating Cash Flow
from Continuing Operations ($B)
|
|
2.3 -
2.5
|
|
|
|
* Adjusted EPS is
diluted EPS from continuing operations attributable to Raytheon
Company common stockholders, excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items. In
addition to the FAS/CAS Adjustment, 2014 Adjusted EPS guidance also
excludes the $0.25 favorable tax impact of approximately $80
million resulting from cash repatriation in the first quarter 2014.
See attachment F for a reconciliation of this measure and a
discussion of why the Company is presenting this
information.
|
|
Segment Results
The Company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); and Space and Airborne Systems (SAS).
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
|
|
2014
|
|
2013
|
|
%
Change
|
Net Sales
|
|
|
|
|
$
|
1,481
|
|
$
|
1,596
|
|
-7%
|
Operating
Income
|
|
|
|
|
$
|
226
|
|
$
|
262
|
|
-14%
|
Operating
Margin
|
|
|
|
|
15.3%
|
|
16.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense Systems (IDS) had first quarter 2014 net
sales of $1,481 million compared to
$1,596 million in the first quarter
2013. The change in net sales was primarily due to the scheduled
completion of certain production phases on two international
Patriot programs.
IDS recorded $226 million of
operating income compared to $262
million in the first quarter 2013. The change in operating
income was primarily driven by lower volume as well as higher net
program efficiencies in the first quarter 2013.
During the quarter, IDS booked $515
million to provide advanced Patriot air and missile defense
capability for Kuwait. IDS also
booked $98 million to provide Patriot
engineering services support for U.S. and international
customers.
|
|
|
|
|
|
|
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2014
|
|
2013
|
|
%
Change
|
Net Sales
|
|
|
$
|
1,450
|
|
$
|
1,521
|
|
-5%
|
Operating
Income
|
|
|
$
|
125
|
|
$
|
124
|
|
1%
|
Operating
Margin
|
|
|
8.6%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence, Information and Services (IIS) had first quarter
2014 net sales of $1,450 million
compared to $1,521 million in the
first quarter 2013. The change in net sales was primarily due to
lower volume on training programs.
IIS recorded $125 million of
operating income compared to $124
million in the first quarter 2013.
During the quarter, IIS booked $111
million on the Joint Polar Satellite System (JPSS) program
for NASA and $104 million on training
programs in support of Warfighter FOCUS activities, including
$59 million on domestic programs and
$45 million on foreign programs. IIS
also booked $535 million on a number
of classified contracts, including $195
million for a cyber solution for an international
customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
|
|
|
|
2014
|
|
2013
|
|
%
Change
|
Net Sales
|
|
|
|
|
|
|
$
|
1,574
|
|
$
|
1,636
|
|
-4%
|
Operating
Income
|
|
|
|
|
|
|
$
|
208
|
|
$
|
214
|
|
-3%
|
Operating
Margin
|
|
|
|
|
|
|
13.2%
|
|
13.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missile Systems (MS) had first quarter 2014 net sales of
$1,574 million compared to
$1,636 million in the first quarter
2013. The change in net sales was primarily driven by lower sales
on U.S. Army programs.
MS recorded $208 million of
operating income compared to $214
million in the first quarter 2013. The change in operating
income was primarily due to lower volume.
During the quarter, MS booked $479
million for Standard Missile-3 (SM-3™) for the Missile
Defense Agency (MDA). MS also booked $164
million for Paveway™ and $86
million for Maverick missiles for international
customers.
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
|
|
2014
|
|
2013
|
|
%
Change
|
Net Sales
|
|
|
|
|
$
|
1,398
|
|
$
|
1,582
|
|
-12%
|
Operating
Income
|
|
|
|
|
$
|
190
|
|
$
|
227
|
|
-16%
|
Operating
Margin
|
|
|
|
|
13.6%
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Space and Airborne Systems (SAS) had first quarter 2014 net
sales of $1,398 million compared to
$1,582 million in the first quarter
2013. The change in net sales was primarily due to lower volume on
tactical communications systems programs and on classified
programs.
SAS recorded $190 million of
operating income compared to $227
million in the first quarter 2013. The change in operating
income was primarily due to lower volume and contract mix.
During the quarter, SAS booked $116
million to provide radar spares for an international
customer and $81 million for software
enhancements to Active Electronically Scanned Array (AESA) radars
for the U.S. Air Force. SAS also booked $216
million on a number of classified contracts.
About Raytheon
Raytheon Company, with 2013 sales of
$24 billion and 63,000 employees
worldwide, is a technology and innovation leader specializing in
defense, security and civil markets throughout the world. With a
history of innovation spanning 92 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 cyber
security 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 First Quarter 2014 Financial
Results
Raytheon's financial results conference call will
be held on Thursday, April 24, 2014
at 9 a.m. ET. Participants will
include Thomas A. Kennedy, CEO;
David C. Wajsgras, senior vice
president and CFO; and other Company executives.
The dial-in number for the conference call will be (866)
953-6857 in the U.S. or (617) 399-3481 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 ability to
comply with extensive governmental regulation, including import and
export policies, the Foreign Corrupt Practices Act, the
International Traffic in Arms Regulations, and procurement and
other regulations; the impact of competition; the ability to
develop products and technologies; the impact of changes in the
financial markets and global economic conditions; the risk that
actual pension returns, discount rates or other actuarial
assumptions are significantly different than the Company's
assumptions; the risk of cost overruns, particularly for the
Company's fixed-price contracts; dependence on component
availability, subcontractor performance and key suppliers; risks of
a negative government audit; the use of accounting estimates in the
Company's financial statements; risks associated with acquisitions,
dispositions, joint ventures and other business arrangements; risks
of an impairment of goodwill or other intangible assets; the
outcome of contingencies and litigation matters, including
government investigations; the ability to recruit and retain
qualified personnel; the impact of potential security and cyber
threats, and other disruptions; and other factors as may be
detailed from time to time in the Company's public announcements
and Securities and Exchange Commission filings. The Company
undertakes no obligation to make any revisions to the
forward-looking statements contained in this release and the
attachments or to update them to reflect events or circumstances
occurring after the date of this release, including any
acquisitions, dispositions or other business arrangements that may
be announced or closed after such date. This release and the
attachments also contain non-GAAP financial measures. A GAAP
reconciliation and a discussion of the Company's use of these
measures are included in this release or the attachments.
Raytheon Company
Global
Headquarters
Waltham,
Mass.
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Dave Desilets
781.522.5855
Attachment
A
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Statement
of Operations Information
|
|
|
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
5,508
|
|
|
$
|
5,879
|
|
Operating
expenses
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
4,161
|
|
|
4,605
|
|
General and administrative
expenses
|
|
|
|
559
|
|
|
568
|
|
Total operating
expenses
|
|
|
|
4,720
|
|
|
5,173
|
|
Operating
income
|
|
|
|
788
|
|
|
706
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
Interest expense
|
|
|
|
51
|
|
|
53
|
|
Interest income
|
|
|
|
(3)
|
|
|
(3)
|
|
Other (income) expense,
net
|
|
|
|
—
|
|
|
(7)
|
|
Total non-operating
(income) expense, net
|
|
|
|
48
|
|
|
43
|
|
Income from
continuing operations before taxes
|
|
|
|
740
|
|
|
663
|
|
Federal and foreign
income taxes
|
|
|
|
147
|
|
|
167
|
|
Income from
continuing operations
|
|
|
|
593
|
|
|
496
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
7
|
|
|
(2)
|
|
Net income
|
|
|
|
600
|
|
|
494
|
|
Less: Net income
attributable to noncontrolling
|
|
|
|
|
|
|
interests in subsidiaries
|
|
|
|
4
|
|
|
6
|
|
Net income
attributable to Raytheon Company
|
|
|
|
$
|
596
|
|
|
$
|
488
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Raytheon
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
|
$
|
1.87
|
|
|
$
|
1.50
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
0.02
|
|
|
(0.01)
|
|
Net income
|
|
|
|
1.89
|
|
|
1.49
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Raytheon
|
|
|
|
|
|
|
Company common
stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
|
$
|
1.87
|
|
|
$
|
1.49
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
0.02
|
|
|
(0.01)
|
|
Net income
|
|
|
|
1.89
|
|
|
1.49
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
|
|
|
|
|
|
|
stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
|
$
|
589
|
|
|
$
|
490
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
7
|
|
|
(2)
|
|
Net income
|
|
|
|
$
|
596
|
|
|
$
|
488
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
Basic
|
|
|
|
315.0
|
|
|
327.4
|
|
Diluted
|
|
|
|
315.8
|
|
|
328.2
|
|
Attachment
B
|
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Raytheon
Company
|
|
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|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
(1)
|
|
Operating Income
(1)
|
|
As a Percent of Net
Sales (1)
|
(In millions, except
percentages)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
30-Mar-14
|
|
31-Mar-13
|
|
30-Mar-14
|
|
31-Mar-13
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,481
|
|
|
$
|
1,596
|
|
|
$
|
226
|
|
|
$
|
262
|
|
|
15.3
|
%
|
|
16.4
|
%
|
Intelligence,
Information and Services
|
|
1,450
|
|
|
1,521
|
|
|
125
|
|
|
124
|
|
|
8.6
|
%
|
|
8.2
|
%
|
Missile
Systems
|
|
1,574
|
|
|
1,636
|
|
|
208
|
|
|
214
|
|
|
13.2
|
%
|
|
13.1
|
%
|
Space and Airborne
Systems
|
|
1,398
|
|
|
1,582
|
|
|
190
|
|
|
227
|
|
|
13.6
|
%
|
|
14.3
|
%
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
87
|
|
|
(71)
|
|
|
|
|
|
Corporate and
Eliminations
|
|
(395)
|
|
|
(456)
|
|
|
(48)
|
|
|
(50)
|
|
|
|
|
|
Total
|
|
$
|
5,508
|
|
|
$
|
5,879
|
|
|
$
|
788
|
|
|
$
|
706
|
|
|
14.3
|
%
|
|
12.0
|
%
|
(1) 2013 amounts have
been revised to reflect our April 1, 2013 segment
consolidation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
30-Mar-14
|
|
31-Dec-13
|
|
30-Mar-14
|
|
31-Dec-13
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
$
|
8,977
|
|
|
$
|
9,397
|
|
|
$
|
10,596
|
|
|
$
|
10,916
|
|
Intelligence,
Information and Services
|
|
2,585
|
|
|
2,592
|
|
|
5,579
|
|
|
5,856
|
|
Missile
Systems
|
|
|
6,564
|
|
|
6,859
|
|
|
8,667
|
|
|
9,162
|
|
Space and Airborne
Systems
|
|
|
4,619
|
|
|
4,166
|
|
|
7,341
|
|
|
7,751
|
|
Total
|
|
|
$
|
22,745
|
|
|
$
|
23,014
|
|
|
$
|
32,183
|
|
|
$
|
33,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
|
$
|
4,293
|
|
|
$
|
3,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and
Administrative
Expenses
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
$
|
448
|
|
|
$
|
461
|
|
|
|
|
|
Research and
development expenses
|
|
$
|
111
|
|
|
$
|
107
|
|
|
|
|
|
Total general and
administrative expenses
|
|
$
|
559
|
|
|
$
|
568
|
|
|
|
|
|
Attachment
D
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
Preliminary Balance
Sheet Information
|
|
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
30-Mar-14
|
|
31-Dec-13
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
3,036
|
|
|
$
|
3,296
|
|
Short-term
investments
|
|
|
1,495
|
|
|
1,001
|
|
Contracts in process,
net
|
|
|
5,211
|
|
|
4,870
|
|
Inventories
|
|
|
363
|
|
|
363
|
|
Prepaid expenses and other
current assets
|
|
|
334
|
|
|
286
|
|
Total current assets
|
|
|
10,439
|
|
|
9,816
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
1,902
|
|
|
1,937
|
|
Goodwill
|
|
|
12,765
|
|
|
12,764
|
|
Other assets,
net
|
|
|
1,435
|
|
|
1,450
|
|
Total assets
|
|
|
$
|
26,541
|
|
|
$
|
25,967
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
|
|
$
|
2,612
|
|
|
$
|
2,350
|
|
Accounts payable
|
|
|
1,078
|
|
|
1,178
|
|
Accrued employee
compensation
|
|
|
867
|
|
|
1,068
|
|
Other accrued
expenses
|
|
|
1,422
|
|
|
1,214
|
|
Total current liabilities
|
|
|
5,979
|
|
|
5,810
|
|
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
|
|
4,244
|
|
|
4,226
|
|
Long-term
debt
|
|
|
4,735
|
|
|
4,734
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Raytheon
Company stockholders' equity
|
|
|
|
|
|
Common stock
|
|
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
1,795
|
|
|
1,972
|
|
Accumulated other
comprehensive loss
|
|
|
(4,962)
|
|
|
(5,113)
|
|
Retained earnings
|
|
|
14,582
|
|
|
14,173
|
|
Total Raytheon Company stockholders' equity
|
|
|
11,418
|
|
|
11,035
|
|
Noncontrolling interests in
subsidiaries
|
|
|
165
|
|
|
162
|
|
Total equity
|
|
|
11,583
|
|
|
11,197
|
|
Total liabilities and equity
|
|
|
$
|
26,541
|
|
|
$
|
25,967
|
|
Attachment
E
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
(In
millions)
|
Three Months
Ended
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
Net income
|
$
|
600
|
|
|
$
|
494
|
|
(Income) loss from
discontinued operations, net of tax
|
(7)
|
|
|
2
|
|
Income from
continuing operations
|
593
|
|
|
496
|
|
|
|
|
|
Depreciation
|
73
|
|
|
74
|
|
Amortization
|
34
|
|
|
34
|
|
Working capital
(excluding pension and income taxes)*
|
(530)
|
|
|
(793)
|
|
Other long-term
liabilities
|
(12)
|
|
|
(15)
|
|
Pension and other
postretirement benefit plans
|
180
|
|
|
291
|
|
Other, net
|
321
|
|
|
335
|
|
Net operating cash flow from continuing operations
|
$
|
659
|
|
|
$
|
422
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Capital
spending
|
$
|
(39)
|
|
|
$
|
(49)
|
|
Internal use software
spending
|
(12)
|
|
|
(9)
|
|
Purchases of
short-term investments
|
(1,345)
|
|
|
(201)
|
|
Sales of short-term
investments
|
457
|
|
|
—
|
|
Maturities of
short-term investments
|
400
|
|
|
153
|
|
Dividends
|
(174)
|
|
|
(164)
|
|
Repurchases of common
stock under stock repurchase programs
|
(200)
|
|
|
(225)
|
|
|
|
|
|
|
|
|
|
* 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 accrued expenses from the Consolidated Statements of Cash
Flows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
F
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures - Adjusted EPS, Adjusted Income and Adjusted Operating
Margin
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
2014
Guidance
|
|
Three Months
Ended
|
|
Low end
|
|
High end
|
|
30-Mar-14
|
|
31-Mar-13
|
|
of range
|
|
of range
|
Diluted EPS from
continuing operations attributable to Raytheon Company common
stockholders
|
$
|
1.87
|
|
$
|
1.49
|
|
$
|
6.74
|
|
$
|
6.89
|
Per share impact of
the FAS/CAS Adjustment (A)
|
(0.18)
|
|
0.14
|
|
(0.72)
|
|
(0.72)
|
Per share impact of
the tax benefit of cash repatriation (B)
|
(0.25)
|
|
—
|
|
(0.25)
|
|
(0.26)
|
Per share impact of
the 2012 research and development (R&D) tax credit
(C)
|
—
|
|
(0.08)
|
|
—
|
|
—
|
Adjusted EPS (2),
(3)
|
$
|
1.43
|
|
$
|
1.56
|
|
$
|
5.76
|
|
$
|
5.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
(87)
|
|
$
|
71
|
|
$
|
(346)
|
|
$
|
(346)
|
|
Tax effect (1)
|
30
|
|
(25)
|
|
121
|
|
121
|
|
After-tax
impact
|
(57)
|
|
46
|
|
(225)
|
|
(225)
|
|
Diluted
shares
|
315.8
|
|
328.2
|
|
314.0
|
|
312.0
|
|
Per share
impact
|
$
|
(0.18)
|
|
$
|
0.14
|
|
$
|
(0.72)
|
|
$
|
(0.72)
|
|
|
|
|
|
|
|
|
(B)
|
Tax benefit of cash
repatriation
|
$
|
(80)
|
|
$
|
—
|
|
$
|
(80)
|
|
$
|
(80)
|
|
Diluted
shares
|
315.8
|
|
—
|
|
314.0
|
|
312.0
|
|
Per share
impact
|
$
|
(0.25)
|
|
$
|
—
|
|
$
|
(0.25)
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
(C)
|
2012 R&D tax
credit
|
$
|
—
|
|
$
|
(25)
|
|
$
|
—
|
|
$
|
—
|
|
Diluted
shares
|
—
|
|
328.2
|
|
—
|
|
—
|
|
Per share
impact
|
$
|
—
|
|
$
|
(0.08)
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Adjusted Income
Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
30-Mar-14
|
|
31-Mar-13
|
|
|
|
|
Income from
continuing operations attributable to Raytheon Company common
stockholders
|
$
|
589
|
|
$
|
490
|
|
|
|
|
FAS/CAS Adjustment
(1)
|
(57)
|
|
46
|
|
|
|
|
Tax benefit of cash
repatriation
|
(80)
|
|
—
|
|
|
|
|
2012 R&D tax
credit
|
—
|
|
(25)
|
|
|
|
|
Adjusted Income (2),
(4)
|
$
|
452
|
|
$
|
511
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Margin Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
Guidance
|
|
Three Months
Ended
|
|
Low end
|
|
High end
|
|
30-Mar-14
|
|
31-Mar-13
|
|
of range
|
|
of range
|
Operating
Margin
|
14.3%
|
|
12.0%
|
|
14.1%
|
|
14.3%
|
FAS/CAS
Adjustment
|
(1.6)%
|
|
1.2%
|
|
(1.5)%
|
|
(1.5)%
|
Adjusted Operating
Margin (2), (5)
|
12.7%
|
|
13.2%
|
|
12.6%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
(1)
|
Tax effected at 35%
federal statutory tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
These amounts are not
measures of financial performance under U.S. generally accepted
accounting principles (GAAP). They should be considered
supplemental to and not a substitute for financial performance in
accordance with GAAP and may not be defined and calculated by other
companies in the same manner. These amounts exclude the FAS/CAS
Adjustment and, from time to time, certain other items. We are
providing these measures because management uses them for the
purposes of evaluating and forecasting the Company's financial
performance and believes that they provide additional insights into
the Company's underlying business performance. We also believe that
they allow investors to benefit from being able to assess our
operating performance in the context of how our principal customer,
the U.S. Government, allows us to recover pension and
postretirement benefit (PRB) costs and to better compare our
operating performance to others in the industry on that same basis.
Amounts may not recalculate directly due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Adjusted EPS is
diluted EPS from continuing operations attributable to Raytheon
Company common stockholders excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items.
Three Months Ended March 30, 2014 and Guidance Adjusted EPS
excludes the $0.25 impact of a net tax benefit of approximately $80
million resulting from cash repatriation in connection with a
transaction with a foreign subsidiary in January 2014. Three Months
Ended March 31, 2013 Adjusted EPS excludes the earnings per share
impact of an R&D tax credit that relates to 2012. In January
2013, Congress approved legislation that included the extension of
the R&D tax credit. The legislation retroactively reinstated
the R&D tax credit for 2012 and extended it through December
31, 2013. As a result, we recorded the 2012 benefit in the first
quarter of 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Adjusted Income is
income from continuing operations attributable to Raytheon Company
common stockholders excluding the after-tax impact of the FAS/CAS
Adjustment and, from time to time, certain other items. Three
Months Ended March 30, 2014 Adjusted Income also excludes the net
tax benefit as discussed above. Three Months Ended March 31, 2013
Adjusted Income also excludes the R&D tax credit that relates
to 2012, as discussed above.
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Adjusted Operating
Margin is defined as total operating margin excluding the margin
impact of the FAS/CAS Adjustment and, from time to time, certain
other items.
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Raytheon Company