WALTHAM, Mass., Jan. 26,
2017 /PRNewswire/ -- Raytheon Company (NYSE: RTN) today announced
net sales for the fourth quarter 2016 of $6.2 billion compared to $6.3 billion in the fourth quarter
20151. Fourth quarter 2016 EPS from continuing
operations was $1.84 compared to
$1.85 in the fourth quarter 2015.
Fourth quarter 2016 EPS from continuing operations included a
favorable FAS/CAS Adjustment of $0.26
compared to a favorable FAS/CAS Adjustment of $0.10 in the fourth quarter 2015.
The Company made a pretax discretionary pension plan
contribution in both the fourth quarter 2016 and the fourth quarter
2015, discussed further below, which had an unfavorable tax-related
EPS impact of $0.04 and $0.02, respectively. The 2016 discretionary
pension plan contribution was not included in the Company's prior
guidance.
Net sales in 2016 were $24.1
billion, up 3.5 percent compared to $23.2 billion in 2015. Full-year 2016 EPS from
continuing operations was $7.44
compared to $6.75 for the full-year
2015.
"I'm pleased with the Company's operating performance in
2016. We delivered solid sales and earnings growth by
executing our strategy and investing in advanced capabilities that
align with our global customers' evolving requirements," said
Thomas A. Kennedy, Raytheon Chairman
and CEO. "Strong domestic and international bookings throughout the
year drove an increase in our backlog, which positions us well for
growth in the future."
The Company generated strong operating cash flow for both the
fourth quarter and full-year. Operating cash flow from continuing
operations for the fourth quarter 2016 was $1.1 billion compared to $0.8 billion for the fourth quarter 2015. Fourth
quarter 2016 operating cash flow from continuing operations
included a $500 million pretax
discretionary cash contribution to the Company's pension plans
compared to $200 million in the
fourth quarter 2015. For the full-year 2016 and 2015, the Company
generated $2.9 billion and
$2.3 billion of operating cash flow
from continuing operations, respectively.
1Fourth
quarter 2016 had 4 fewer work days than fourth quarter
2015.
|
Summary Financial
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
%
|
|
Twelve
Months
|
%
|
($ in millions,
except per share data)
|
2016
|
2015
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$
|
7,577
|
|
$
|
7,861
|
|
-3.6%
|
|
$
|
27,836
|
|
|
$
|
25,227
|
|
|
10.3%
|
Net Sales
|
$
|
6,238
|
|
$
|
6,328
|
|
-1.4%
|
|
$
|
24,069
|
|
|
$
|
23,247
|
|
|
3.5%
|
Income from
Continuing Operations attributable to Raytheon Company
|
$
|
544
|
|
$
|
558
|
|
-2.5%
|
|
$
|
2,210
|
1
|
|
$
|
2,061
|
2
|
|
7.2%
|
EPS from Continuing
Operations
|
$
|
1.84
|
|
$
|
1.85
|
|
-0.5%
|
|
$
|
7.44
|
1
|
|
$
|
6.75
|
2
|
|
10.2%
|
Operating Cash Flow
from Continuing Operations
|
$
|
1,141
|
|
$
|
813
|
|
|
|
$
|
2,852
|
|
|
$
|
2,346
|
|
|
|
Workdays in Fiscal
Reporting Calendar
|
57
|
|
61
|
|
|
|
249
|
|
|
249
|
|
|
|
1
Twelve months 2016 Income from Continuing Operations
attributable to Raytheon Company and EPS from Continuing Operations
included the tax-free gain of $158 million and $0.53 impact,
respectively, for the second quarter 2016 TRS
transaction.
|
2
Twelve months 2015 Income from Continuing Operations
attributable to Raytheon Company and EPS from Continuing Operations
included the favorable $181 million pretax ($143 million after-tax)
and $0.47 impact, respectively, for the first quarter 2015 eBorders
settlement.
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The Company had bookings of $7.6
billion in the fourth quarter 2016, resulting in a
book-to-bill ratio of 1.21. Fourth quarter 2015 bookings were
$7.9 billion. Full-year 2016 bookings
were a record $27.8 billion,
resulting in a book-to-bill ratio of 1.16. Full-year 2015 bookings
were $25.2 billion.
Backlog
|
|
|
|
($ in
millions)
|
Period
Ending
|
|
2016
|
|
2015
|
Backlog
|
$
|
36,855
|
|
|
$
|
34,669
|
|
Funded
Backlog
|
$
|
25,604
|
|
|
$
|
25,060
|
|
Backlog at the end of 2016 was $36.9
billion, an increase of approximately $2.2 billion or 6 percent compared to the end of
2015. Funded backlog was $25.6
billion, an increase of approximately $0.5 billion compared to the end of 2015.
In the fourth quarter 2016, the Company repurchased 0.7 million
shares of common stock for $100
million. For the full-year 2016, the Company repurchased 6.9
million shares of common stock for $900
million.
Outlook
The Company has provided its financial outlook for 2017. Charts
containing additional information on the Company's 2017 outlook are
available on the Company's website at www.raytheon.com/ir.
Effective January 1, 2017, the
Company adopted the new revenue recognition standard utilizing the
full retrospective transition method. Under this method, the
standard was applied to each prior reporting period presented and
the cumulative effect of applying the standard was recognized at
the earliest period shown. The impact of adopting the new standard
on the Company's 2015 and 2016 net sales and operating income was
not material. The 2016 net sales, effective tax rate and EPS from
continuing operations in the financial outlook table below have
been recast to reflect this change.
2017 Financial
Outlook
|
|
|
|
|
|
|
2016
Actual
|
|
2017
|
|
As
Reported
|
|
New Rev
Rec1
|
|
Outlook1
|
Net Sales
($B)
|
24.1
|
|
24.1
|
|
24.8 -
25.3
|
Deferred Revenue
Adjustment ($M)2
|
(77)
|
|
(77)
|
|
(33)
|
Amortization of
Acquired Intangibles ($M)2
|
(121)
|
|
(121)
|
|
(127)
|
FAS/CAS Adjustment
($M)
|
435
|
|
435
|
|
428
|
Interest Expense, net
($M)
|
(216)
|
|
(216)
|
|
(216) -
(221)
|
Diluted Shares
(M)
|
297
|
|
297
|
|
291 - 293
|
Effective Tax
Rate
|
28.3%
|
|
28.3%
|
|
~31.5%
|
EPS from Continuing
Operations3
|
$7.44
|
|
$7.55
|
|
$7.20 -
$7.35
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.9
|
|
2.9
|
|
2.8 -
3.1
|
1
Effective January 1, 2017, the Company adopted the new revenue
recognition standard, Accounting Standards Update 2014-09. The 2016
Actuals - New Rev Rec and the 2017 Outlook above reflect this
change.
|
2
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, respectively, for
all of the business segments.
|
3
2016 EPS from Continuing Operations included the $0.53 tax-free
gain for the second quarter TRS transaction.
|
Segment Results
The Company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); Space and Airborne Systems (SAS); and
Forcepoint.
The pro-forma attachments at the end of this release present
prior period consolidated and segment data recast to reflect the
adoption of the new revenue recognition standard discussed above.
The business results discussed below do not reflect these changes,
because they became effective January 1,
2017.
Integrated Defense
Systems
|
|
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|
|
|
|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Net Sales
|
$
|
1,406
|
|
|
$
|
1,558
|
|
|
-10%
|
|
$
|
5,476
|
|
|
$
|
5,847
|
|
|
-6%
|
Operating
Income1
|
$
|
219
|
|
|
$
|
281
|
|
|
-22%
|
|
$
|
950
|
|
|
$
|
864
|
|
|
NM
|
Operating
Margin1
|
15.6
|
%
|
|
18.0
|
%
|
|
|
|
17.3
|
%
|
|
14.8
|
%
|
|
|
1
Twelve months 2016 operating income and operating margin include
the $158 million tax-free gain from the second quarter TRS
transaction.
|
NM = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense Systems (IDS) had fourth quarter 2016 net
sales of $1,406 million compared to
$1,558 million in the fourth quarter
2015. IDS had full-year 2016 net sales of $5,476 million compared to $5,847 million in 2015. The change in net sales
for both the quarter and the full-year was primarily driven by
lower net sales on an international communications program and on
the Air Warfare Destroyer (AWD) program. In addition, the full-year
was also driven by lower net sales on various missile defense radar
production programs.
IDS recorded $219 million of
operating income in the fourth quarter 2016 compared to
$281 million in the fourth quarter
2015. The change in operating income for the quarter was primarily
driven by a favorable contract modification on the AWD program in
the fourth quarter 2015 and lower volume in the fourth quarter
2016. IDS recorded $950 million of
operating income in 2016 compared to $864
million in 2015. Operating income for the full-year 2016
included the $158 million tax-free
gain from the second quarter TRS transaction.
During the quarter, IDS booked approximately $1.0 billion to provide advanced Patriot air and
missile defense capabilities for multiple international customers.
IDS booked $189 million to provide
Consolidated Contractor Logistics Support (CCLS) and $144 million on the AN/TPY-2 radar sustainment
program for the Missile Defense Agency (MDA). IDS also booked
$110 million on the Air and Missile
Defense Radar (AMDR) program for the U.S. Navy.
Intelligence,
Information and Services
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Net Sales
|
$
|
1,518
|
|
|
$
|
1,537
|
|
|
-1%
|
|
$
|
6,194
|
|
|
$
|
6,111
|
|
|
1%
|
Operating
Income1
|
$
|
121
|
|
|
$
|
111
|
|
|
9%
|
|
$
|
467
|
|
|
$
|
646
|
|
|
NM
|
Operating
Margin1
|
8.0
|
%
|
|
7.2
|
%
|
|
|
|
7.5
|
%
|
|
10.6
|
%
|
|
|
1
Twelve months 2015 operating income and operating margin include
the favorable $181 million impact for the first quarter eBorders
settlement.
|
NM = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
Intelligence, Information and Services (IIS) had fourth quarter
2016 net sales of $1,518 million
compared to $1,537 million in the
fourth quarter 2015. IIS had full-year 2016 net sales of
$6,194 million compared to
$6,111 million in 2015. The change in
net sales for the full-year was primarily driven by higher net
sales on cybersecurity and special mission programs.
IIS recorded $121 million of
operating income in the fourth quarter 2016 compared to
$111 million in the fourth quarter
2015. The change in operating income for the quarter was primarily
driven by higher net program efficiencies in the fourth quarter
2016. IIS recorded $467 million of
operating income in 2016 compared to $646
million in 2015. Operating income for the full-year 2015
included the favorable $181 million
impact for the first quarter eBorders settlement.
During the quarter, IIS booked $90
million on domestic and foreign training programs in support
of Warfighter FOCUS activities. IIS also booked $448 million on a number of classified
contracts.
Missile
Systems
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Net Sales
|
$
|
1,895
|
|
|
$
|
1,879
|
|
|
1%
|
|
$
|
7,071
|
|
|
$
|
6,556
|
|
|
8%
|
Operating
Income
|
$
|
260
|
|
|
$
|
258
|
|
|
1%
|
|
$
|
916
|
|
|
$
|
868
|
|
|
6%
|
Operating
Margin
|
13.7
|
%
|
|
13.7
|
%
|
|
|
|
13.0
|
%
|
|
13.2
|
%
|
|
|
Missile Systems (MS) had fourth quarter 2016 net sales of
$1,895 million compared to
$1,879 million in the fourth quarter
2015. MS had full-year 2016 net sales of $7,071 million compared to $6,556 million in 2015. The increase in net sales
for the full-year was primarily driven by higher net sales on the
Paveway™ program.
MS recorded $260 million of
operating income in the fourth quarter 2016 compared to
$258 million in the fourth quarter
2015. MS recorded $916 million of
operating income in 2016 compared to $868
million in 2015. The increase in operating income for the
full-year was primarily due to higher volume in 2016.
During the quarter, MS booked $362
million for Paveway™, $309
million for Tomahawk, $259
million for the Rolling Airframe Missile (RAM™) program,
$208 million for the
Stinger® weapon system, $193
million for Evolved Seasparrow Missiles (ESSM®),
$141 million for Standard Missile-3
(SM-3®), $114 million for
Phalanx® close-in weapon systems, $76 million for Miniature Air Launched Decoy
(MALD®), and $76 million
for the David's Sling weapon system's Stunner Missile. MS also
booked $175 million for the
Hypersonic Air-breathing Weapon Concept (HAWC) program for the
Defense Advanced Research Projects Agency (DARPA) and the U.S. Air
Force.
Space and Airborne
Systems
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Net Sales
|
$
|
1,612
|
|
|
$
|
1,576
|
|
|
2%
|
|
$
|
6,199
|
|
|
$
|
5,796
|
|
|
7%
|
Operating
Income
|
$
|
231
|
|
|
$
|
239
|
|
|
-3%
|
|
$
|
817
|
|
|
$
|
829
|
|
|
-1%
|
Operating
Margin
|
14.3
|
%
|
|
15.2
|
%
|
|
|
|
13.2
|
%
|
|
14.3
|
%
|
|
|
Space and Airborne Systems (SAS) had fourth quarter 2016 net
sales of $1,612 million compared to
$1,576 million in the fourth quarter
2015. The increase in net sales for the quarter was primarily
driven by higher net sales on an electronic warfare systems program
and an international classified program. SAS had full-year 2016 net
sales of $6,199 million compared to
$5,796 million in 2015. The increase
in net sales for the full-year was primarily due to higher net
sales on classified programs.
SAS recorded $231 million of
operating income in the fourth quarter 2016 compared to
$239 million in the fourth quarter
2015. SAS recorded $817 million of
operating income in 2016 compared to $829
million in 2015. The change in operating income for
the quarter and the full-year was primarily driven by a change in
program mix.
During the quarter, SAS booked $610
million for the production of Active Electronically Scanned
Array (AESA) radars, $81 million to
provide radar components and $75
million on a cryptographic modernization program, all for
both U.S. and international customers. SAS also booked $467 million on a number of classified
contracts.
Forcepoint
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
|
|
Twelve
Months
|
|
|
($ in
millions)
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Net Sales
|
$
|
143
|
|
|
$
|
133
|
|
|
8%
|
|
$
|
566
|
|
|
$
|
328
|
|
|
NM
|
Operating
Income
|
$
|
11
|
|
|
$
|
11
|
|
|
-
|
|
$
|
51
|
|
|
$
|
30
|
|
|
NM
|
Operating
Margin
|
7.7
|
%
|
|
8.3
|
%
|
|
|
|
9.0
|
%
|
|
9.1
|
%
|
|
|
NM = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
Forcepoint had fourth quarter 2016 net sales of $143 million, up 8 percent compared to
$133 million in the fourth quarter
2015. The increase in net sales for the quarter was primarily
driven by the acquisition of Stonesoft in the first quarter of
2016. Forcepoint recorded $11 million
of operating income in both the fourth quarter 2016 and in the
fourth quarter 2015.
Forcepoint had full-year 2016 net sales of $566 million compared to $328 million in 2015. Forcepoint recorded
$51 million of operating income in
2016 compared to $30 million in 2015.
The increase in both net sales and operating income for the
full-year was primarily due to the acquisition of Websense in the
second quarter of 2015 and Stonesoft in the first quarter of
2016.
About Raytheon
Raytheon Company, with 2016 sales of $24
billion and 63,000 employees, is a technology and innovation
leader specializing in defense, civil government and cybersecurity
solutions. With a history of innovation spanning 95 years, Raytheon
provides state-of-the-art electronics, mission systems integration,
C5ITM products and services, sensing, effects, and
mission support for customers in more than 80 countries. Raytheon
is headquartered in Waltham,
Massachusetts. Follow us on Twitter.
Conference Call on the Fourth Quarter and Full-Year 2016
Financial Results
Raytheon's financial results conference call will be held on
Thursday, January 26, 2017 at
9 a.m. ET. Participants will include
Thomas A. Kennedy, Chairman and CEO;
Anthony F. O'Brien, vice president
and CFO; and other Company executives.
The dial-in number for the conference call will be (800)
510-9691 in the U.S. or (617) 614-3453 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 and potential termination
of contracts; 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, and the impact of associated investments and costs;
the ability to recruit and retain qualified personnel; the impact
of potential security and cyber threats, and other disruptions; the
risk that actual pension returns, discount rates or other actuarial
assumptions, including the long-term return on asset assumption,
are significantly different than the Company's current assumptions;
the risk of cost overruns, particularly for the Company's
fixed-price contracts; dependence on component availability,
subcontractor and partner performance and key suppliers; risks of a
negative government audit; risks associated with acquisitions,
investments, dispositions, joint ventures and other business
arrangements; the ability to grow in the government and commercial
cybersecurity markets; risks of an impairment of goodwill or other
intangible assets; the impact of financial markets and global
economic conditions; the use of accounting estimates in the
Company's financial statements; the outcome of contingencies and
litigation matters, including government investigations; the risk
of environmental liabilities; and other factors as may be detailed
from time to time in the Company's public announcements and
Securities and Exchange Commission filings. The Company undertakes
no obligation to make any revisions to the forward-looking
statements contained in this release and the attachments or to
update them to reflect events or circumstances occurring after the
date of this release, including any acquisitions, dispositions or
other business arrangements that may be announced or closed after
such date.
Attachment
A
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
Preliminary Statement
of Operations Information
|
|
|
|
|
|
|
|
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,238
|
|
|
$
|
6,328
|
|
|
$
|
24,069
|
|
|
$
|
23,247
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
4,655
|
|
|
4,808
|
|
|
17,947
|
|
|
17,574
|
|
General and
administrative expenses
|
|
721
|
|
|
692
|
|
|
2,882
|
|
|
2,660
|
|
Total operating
expenses
|
|
5,376
|
|
|
5,500
|
|
|
20,829
|
|
|
20,234
|
|
Operating
income
|
|
862
|
|
|
828
|
|
|
3,240
|
|
|
3,013
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
58
|
|
|
58
|
|
|
232
|
|
|
233
|
|
Interest
income
|
|
(4)
|
|
|
(2)
|
|
|
(16)
|
|
|
(11)
|
|
Other (income)
expense, net
|
|
1
|
|
|
(2)
|
|
|
(6)
|
|
|
4
|
|
Total non-operating
(income) expense, net
|
|
55
|
|
|
54
|
|
|
210
|
|
|
226
|
|
Income from
continuing operations before taxes
|
|
807
|
|
|
774
|
|
|
3,030
|
|
|
2,787
|
|
Federal and foreign
income taxes
|
|
266
|
|
|
220
|
|
|
857
|
|
|
733
|
|
Income from
continuing operations
|
|
541
|
|
|
554
|
|
|
2,173
|
|
|
2,054
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
13
|
|
|
1
|
|
|
13
|
|
Net income
|
|
541
|
|
|
567
|
|
|
2,174
|
|
|
2,067
|
|
Less: Net income
(loss) attributable to noncontrolling interests in
subsidiaries
|
|
(3)
|
|
|
(4)
|
|
|
(37)
|
|
|
(7)
|
|
Net income
attributable to Raytheon Company
|
|
$
|
544
|
|
|
$
|
571
|
|
|
$
|
2,211
|
|
|
$
|
2,074
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.84
|
|
|
$
|
1.85
|
|
|
$
|
7.45
|
|
|
$
|
6.76
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
Net income
|
|
1.84
|
|
|
1.89
|
|
|
7.45
|
|
|
6.81
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.84
|
|
|
$
|
1.85
|
|
|
$
|
7.44
|
|
|
$
|
6.75
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
Net income
|
|
1.84
|
|
|
1.89
|
|
|
7.44
|
|
|
6.80
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
544
|
|
|
$
|
558
|
|
|
$
|
2,210
|
|
|
$
|
2,061
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
13
|
|
|
1
|
|
|
13
|
|
Net income
|
|
$
|
544
|
|
|
$
|
571
|
|
|
$
|
2,211
|
|
|
$
|
2,074
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
294.2
|
|
|
301.6
|
|
|
296.5
|
|
|
304.8
|
|
Diluted
|
|
294.5
|
|
|
302.1
|
|
|
296.8
|
|
|
305.2
|
|
Attachment A - Pro
Forma
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary Statement
of Operations Information
|
|
|
|
|
|
|
Full Year 2015, and
Quarters within and Full Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2017, we adopted Accounting Standards Update (ASU) 2014-09, Revenue
from Contracts with Customers (Topic 606). The amounts and
presentation of our statement of operations information set forth
below reflect these changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,279
|
|
|
$
|
6,014
|
|
|
$
|
6,029
|
|
|
$
|
5,802
|
|
|
$
|
24,124
|
|
|
$
|
23,321
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
4,688
|
|
|
4,474
|
|
|
4,362
|
|
|
4,441
|
|
|
17,965
|
|
|
17,608
|
|
General and
administrative expenses
|
|
711
|
|
|
710
|
|
|
695
|
|
|
748
|
|
|
2,864
|
|
|
2,646
|
|
Total operating
expenses
|
|
5,399
|
|
|
5,184
|
|
|
5,057
|
|
|
5,189
|
|
|
20,829
|
|
|
20,254
|
|
Operating
income
|
|
880
|
|
|
830
|
|
|
972
|
|
|
613
|
|
|
3,295
|
|
|
3,067
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
58
|
|
|
58
|
|
|
58
|
|
|
58
|
|
|
232
|
|
|
233
|
|
Interest
income
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
(16)
|
|
|
(11)
|
|
Other (income)
expense, net
|
|
1
|
|
|
(4)
|
|
|
(1)
|
|
|
(2)
|
|
|
(6)
|
|
|
4
|
|
Total non-operating
(income) expense, net
|
|
55
|
|
|
50
|
|
|
53
|
|
|
52
|
|
|
210
|
|
|
226
|
|
Income from
continuing operations before taxes
|
|
825
|
|
|
780
|
|
|
919
|
|
|
561
|
|
|
3,085
|
|
|
2,841
|
|
Federal and foreign
income taxes
|
|
272
|
|
|
239
|
|
|
205
|
|
|
157
|
|
|
873
|
|
|
747
|
|
Income from
continuing operations
|
|
553
|
|
|
541
|
|
|
714
|
|
|
404
|
|
|
2,212
|
|
|
2,094
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
1
|
|
|
1
|
|
|
13
|
|
Net income
|
|
553
|
|
|
542
|
|
|
713
|
|
|
405
|
|
|
2,213
|
|
|
2,107
|
|
Less: Net income
(loss) attributable to noncontrolling interests in
subsidiaries
|
|
(2)
|
|
|
(2)
|
|
|
(4)
|
|
|
(23)
|
|
|
(31)
|
|
|
(3)
|
|
Net income
attributable to Raytheon Company
|
|
$
|
555
|
|
|
$
|
544
|
|
|
$
|
717
|
|
|
$
|
428
|
|
|
$
|
2,244
|
|
|
$
|
2,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.88
|
|
|
$
|
1.84
|
|
|
$
|
2.41
|
|
|
$
|
1.43
|
|
|
$
|
7.55
|
|
|
$
|
6.88
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
Net income
|
|
1.88
|
|
|
1.84
|
|
|
2.41
|
|
|
1.43
|
|
|
7.56
|
|
|
6.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.87
|
|
|
$
|
1.84
|
|
|
$
|
2.41
|
|
|
$
|
1.43
|
|
|
$
|
7.55
|
|
|
$
|
6.87
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
Net income
|
|
1.88
|
|
|
1.84
|
|
|
2.41
|
|
|
1.43
|
|
|
7.55
|
|
|
6.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
555
|
|
|
$
|
543
|
|
|
$
|
718
|
|
|
$
|
427
|
|
|
$
|
2,243
|
|
|
$
|
2,097
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
1
|
|
|
1
|
|
|
13
|
|
Net income
|
|
$
|
555
|
|
|
$
|
544
|
|
|
$
|
717
|
|
|
$
|
428
|
|
|
$
|
2,244
|
|
|
$
|
2,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
294.2
|
|
|
295.2
|
|
|
297.3
|
|
|
299.2
|
|
|
296.5
|
|
|
304.8
|
|
Diluted
|
|
294.5
|
|
|
295.5
|
|
|
297.6
|
|
|
299.6
|
|
|
296.8
|
|
|
305.2
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth 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
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,406
|
|
|
$
|
1,558
|
|
|
$
|
219
|
|
|
$
|
281
|
|
|
15.6
|
%
|
|
18.0
|
%
|
Intelligence,
Information and Services
|
|
1,518
|
|
|
1,537
|
|
|
121
|
|
|
111
|
|
|
8.0
|
%
|
|
7.2
|
%
|
Missile
Systems
|
|
1,895
|
|
|
1,879
|
|
|
260
|
|
|
258
|
|
|
13.7
|
%
|
|
13.7
|
%
|
Space and Airborne
Systems
|
|
1,612
|
|
|
1,576
|
|
|
231
|
|
|
239
|
|
|
14.3
|
%
|
|
15.2
|
%
|
Forcepoint
|
|
143
|
|
|
133
|
|
|
11
|
|
|
11
|
|
|
7.7
|
%
|
|
8.3
|
%
|
Eliminations
|
|
(323)
|
|
|
(331)
|
|
|
(32)
|
|
|
(29)
|
|
|
|
|
|
Total business
segment
|
|
6,251
|
|
|
6,352
|
|
|
810
|
|
|
871
|
|
|
13.0
|
%
|
|
13.7
|
%
|
Acquisition
Accounting Adjustments
|
|
(13)
|
|
|
(24)
|
|
|
(43)
|
|
|
(59)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
117
|
|
|
44
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(22)
|
|
|
(28)
|
|
|
|
|
|
Total
|
|
$
|
6,238
|
|
|
$
|
6,328
|
|
|
$
|
862
|
|
|
$
|
828
|
|
|
13.8
|
%
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
5,476
|
|
|
$
|
5,847
|
|
|
$
|
950
|
|
|
$
|
864
|
|
|
17.3
|
%
|
|
14.8
|
%
|
Intelligence,
Information and Services
|
|
6,194
|
|
|
6,111
|
|
|
467
|
|
|
646
|
|
|
7.5
|
%
|
|
10.6
|
%
|
Missile
Systems
|
|
7,071
|
|
|
6,556
|
|
|
916
|
|
|
868
|
|
|
13.0
|
%
|
|
13.2
|
%
|
Space and Airborne
Systems
|
|
6,199
|
|
|
5,796
|
|
|
817
|
|
|
829
|
|
|
13.2
|
%
|
|
14.3
|
%
|
Forcepoint
|
|
566
|
|
|
328
|
|
|
51
|
|
|
30
|
|
|
9.0
|
%
|
|
9.1
|
%
|
Eliminations
|
|
(1,360)
|
|
|
(1,330)
|
|
|
(141)
|
|
|
(140)
|
|
|
|
|
|
Total business
segment
|
|
24,146
|
|
|
23,308
|
|
|
3,060
|
|
|
3,097
|
|
|
12.7
|
%
|
|
13.3
|
%
|
Acquisition
Accounting Adjustments
|
|
(77)
|
|
|
(61)
|
|
|
(198)
|
|
|
(168)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
435
|
|
|
185
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(57)
|
|
|
(101)
|
|
|
|
|
|
Total
|
|
$
|
24,069
|
|
|
$
|
23,247
|
|
|
$
|
3,240
|
|
|
$
|
3,013
|
|
|
13.5
|
%
|
|
13.0
|
%
|
Attachment B - Pro
Forma
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
Full Year 2015, and
Quarters within and Full Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2017, we adopted Accounting Standards Update (ASU) 2014-09, Revenue
from Contracts with Customers (Topic 606). The amounts and
presentation of our segment information set forth below reflect
these changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Net Sales
|
(In
millions)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,460
|
|
|
$
|
1,334
|
|
|
$
|
1,399
|
|
|
$
|
1,336
|
|
|
$
|
5,529
|
|
|
$
|
5,848
|
|
Intelligence,
Information and Services
|
|
1,516
|
|
|
1,534
|
|
|
1,587
|
|
|
1,532
|
|
|
6,169
|
|
|
6,137
|
|
Missile
Systems
|
|
1,897
|
|
|
1,770
|
|
|
1,706
|
|
|
1,723
|
|
|
7,096
|
|
|
6,569
|
|
Space and Airborne
Systems
|
|
1,600
|
|
|
1,590
|
|
|
1,547
|
|
|
1,445
|
|
|
6,182
|
|
|
5,814
|
|
Forcepoint
|
|
143
|
|
|
167
|
|
|
137
|
|
|
139
|
|
|
586
|
|
|
344
|
|
Eliminations
|
|
(324)
|
|
|
(364)
|
|
|
(326)
|
|
|
(347)
|
|
|
(1,361)
|
|
|
(1,330)
|
|
Total business
segment
|
|
6,292
|
|
|
6,031
|
|
|
6,050
|
|
|
5,828
|
|
|
24,201
|
|
|
23,382
|
|
Acquisition
Accounting Adjustments
|
|
(13)
|
|
|
(17)
|
|
|
(21)
|
|
|
(26)
|
|
|
(77)
|
|
|
(61)
|
|
Total
|
|
$
|
6,279
|
|
|
$
|
6,014
|
|
|
$
|
6,029
|
|
|
$
|
5,802
|
|
|
$
|
24,124
|
|
|
$
|
23,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
Operating
Income
|
(In
millions)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
238
|
|
|
$
|
211
|
|
|
$
|
376
|
|
|
$
|
146
|
|
|
$
|
971
|
|
|
$
|
859
|
|
Intelligence,
Information and Services
|
|
120
|
|
|
123
|
|
|
120
|
|
|
104
|
|
|
467
|
|
|
648
|
|
Missile
Systems
|
|
261
|
|
|
235
|
|
|
233
|
|
|
192
|
|
|
921
|
|
|
877
|
|
Space and Airborne
Systems
|
|
221
|
|
|
215
|
|
|
205
|
|
|
167
|
|
|
808
|
|
|
851
|
|
Forcepoint
|
|
21
|
|
|
41
|
|
|
10
|
|
|
18
|
|
|
90
|
|
|
56
|
|
Eliminations
|
|
(33)
|
|
|
(42)
|
|
|
(34)
|
|
|
(33)
|
|
|
(142)
|
|
|
(140)
|
|
Total business
segment
|
|
828
|
|
|
783
|
|
|
910
|
|
|
594
|
|
|
3,115
|
|
|
3,151
|
|
Acquisition
Accounting Adjustments
|
|
(43)
|
|
|
(46)
|
|
|
(51)
|
|
|
(58)
|
|
|
(198)
|
|
|
(168)
|
|
FAS/CAS
Adjustment
|
|
117
|
|
|
104
|
|
|
109
|
|
|
105
|
|
|
435
|
|
|
185
|
|
Corporate
|
|
(22)
|
|
|
(11)
|
|
|
4
|
|
|
(28)
|
|
|
(57)
|
|
|
(101)
|
|
Total
|
|
$
|
880
|
|
|
$
|
830
|
|
|
$
|
972
|
|
|
$
|
613
|
|
|
$
|
3,295
|
|
|
$
|
3,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
As a Percentage of
Net Sales
|
|
Operating
Income
As a Percentage of
Net Sales
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
16.3%
|
|
15.8%
|
|
26.9%
|
|
10.9%
|
|
17.6%
|
|
14.7%
|
Intelligence,
Information and Services
|
|
7.9%
|
|
8.0%
|
|
7.6%
|
|
6.8%
|
|
7.6%
|
|
10.6%
|
Missile
Systems
|
|
13.8%
|
|
13.3%
|
|
13.7%
|
|
11.1%
|
|
13.0%
|
|
13.4%
|
Space and Airborne
Systems
|
|
13.8%
|
|
13.5%
|
|
13.3%
|
|
11.6%
|
|
13.1%
|
|
14.6%
|
Forcepoint
|
|
14.7%
|
|
24.6%
|
|
7.3%
|
|
12.9%
|
|
15.4%
|
|
16.3%
|
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
segment
|
|
13.2%
|
|
13.0%
|
|
15.0%
|
|
10.2%
|
|
12.9%
|
|
13.5%
|
Acquisition
Accounting Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
14.0%
|
|
13.8%
|
|
16.1%
|
|
10.6%
|
|
13.7%
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
Funded
Backlog
|
|
Total
Backlog
|
|
|
|
|
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
8,438
|
|
|
$
|
8,961
|
|
|
$
|
10,224
|
|
|
$
|
10,629
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
2,340
|
|
|
2,933
|
|
|
5,663
|
|
|
6,367
|
|
Missile
Systems
|
|
|
|
|
|
|
9,008
|
|
|
7,998
|
|
|
11,617
|
|
|
10,885
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
5,286
|
|
|
4,692
|
|
|
8,819
|
|
|
6,309
|
|
Forcepoint
|
|
|
|
|
|
|
532
|
|
|
476
|
|
|
532
|
|
|
479
|
|
Total
|
|
|
|
|
|
|
$
|
25,604
|
|
|
$
|
25,060
|
|
|
$
|
36,855
|
|
|
$
|
34,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Bookings
|
|
|
|
|
|
|
$
|
7,577
|
|
|
$
|
7,861
|
|
|
$
|
27,836
|
|
|
$
|
25,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
|
|
|
|
$
|
525
|
|
|
$
|
497
|
|
|
$
|
2,127
|
|
|
$
|
1,954
|
|
Research and
development expenses
|
|
|
|
|
|
196
|
|
|
195
|
|
|
755
|
|
|
706
|
|
Total general and
administrative expenses
|
|
|
|
|
|
$
|
721
|
|
|
$
|
692
|
|
|
$
|
2,882
|
|
|
$
|
2,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment C - Pro
Forma
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2015, and
Quarters within and Full Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2017, we adopted Accounting Standards Update (ASU) 2014-09, Revenue
from Contracts with Customers (Topic 606). The amounts and
presentation of our other information set forth below reflect these
changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
Remaining
Performance
Obligations
(Total
Backlog)
|
|
|
|
|
|
|
|
|
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
|
|
|
$
|
10,159
|
|
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
|
|
|
|
5,662
|
|
|
|
Missile
Systems
|
|
|
|
|
|
|
|
|
|
11,568
|
|
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
|
|
|
8,834
|
|
|
|
Forcepoint
|
|
|
|
|
|
|
|
|
|
486
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
36,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
Bookings
|
(In
millions)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
2,062
|
|
|
$
|
1,025
|
|
|
$
|
1,273
|
|
|
$
|
1,017
|
|
|
$
|
5,377
|
|
|
$
|
6,389
|
|
Intelligence,
Information and Services
|
|
980
|
|
|
1,731
|
|
|
1,599
|
|
|
1,253
|
|
|
5,563
|
|
|
5,319
|
|
Missile
Systems
|
|
2,439
|
|
|
1,932
|
|
|
1,891
|
|
|
1,632
|
|
|
7,894
|
|
|
8,149
|
|
Space and Airborne
Systems
|
|
1,935
|
|
|
2,060
|
|
|
2,217
|
|
|
2,202
|
|
|
8,414
|
|
|
4,936
|
|
Forcepoint
|
|
166
|
|
|
175
|
|
|
123
|
|
|
97
|
|
|
561
|
|
|
352
|
|
Total
|
|
$
|
7,582
|
|
|
$
|
6,923
|
|
|
$
|
7,103
|
|
|
$
|
6,201
|
|
|
$
|
27,809
|
|
|
$
|
25,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
Fourth Quarter
2016
|
|
|
|
|
(In
millions)
|
|
|
|
|
31-Dec-16
|
|
31-Dec-15
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
3,303
|
|
|
$
|
2,328
|
|
Short-term
investments
|
100
|
|
|
872
|
|
Contracts in process,
net
|
6,202
|
|
|
5,564
|
|
Inventories
|
659
|
|
|
635
|
|
Prepaid expenses and
other current assets
|
414
|
|
|
413
|
|
Total current
assets
|
10,678
|
|
|
9,812
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,166
|
|
|
2,005
|
|
Goodwill
|
14,788
|
|
|
14,731
|
|
Other assets,
net
|
2,420
|
|
|
2,733
|
|
Total
assets
|
$
|
30,052
|
|
|
$
|
29,281
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
Current
liabilities
|
|
|
|
Advance payments and
billings in excess of costs incurred
|
$
|
2,239
|
|
|
$
|
2,193
|
|
Accounts
payable
|
1,520
|
|
|
1,402
|
|
Accrued employee
compensation
|
1,234
|
|
|
1,154
|
|
Other current
liabilities
|
1,434
|
|
|
1,377
|
|
Total current
liabilities
|
6,427
|
|
|
6,126
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
7,775
|
|
|
7,140
|
|
Long-term
debt
|
5,335
|
|
|
5,330
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
449
|
|
|
355
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon Company
stockholders' equity
|
|
|
|
Common
stock
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
—
|
|
|
398
|
|
Accumulated other
comprehensive loss
|
(7,411)
|
|
|
(7,176)
|
|
Retained
earnings
|
17,474
|
|
|
16,903
|
|
Total Raytheon Company
stockholders' equity
|
10,066
|
|
|
10,128
|
|
Noncontrolling
interests in subsidiaries
|
—
|
|
|
202
|
|
Total
equity
|
10,066
|
|
|
10,330
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
30,052
|
|
|
$
|
29,281
|
|
Attachment D - Pro
Forma
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
December 31,
2016
|
|
|
Effective January 1,
2017, we adopted Accounting Standards Update (ASU) 2014-09, Revenue
from Contracts with Customers (Topic 606). The amounts and
presentation of our balance sheet information set forth below
reflect these changes.
|
|
|
(In
millions)
|
|
|
31-Dec-16
|
Assets
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
|
3,303
|
|
Short-term
investments
|
100
|
|
Receivables,
net
|
1,163
|
|
Contract
assets
|
5,041
|
|
Inventories
|
608
|
|
Prepaid expenses and
other current assets
|
670
|
|
Total current
assets
|
10,885
|
|
|
|
Property, plant and
equipment, net
|
2,166
|
|
Goodwill
|
14,788
|
|
Other assets,
net
|
2,399
|
|
Total
assets
|
$
|
30,238
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
Current
liabilities
|
|
Contract
liabilities
|
$
|
2,646
|
|
Accounts
payable
|
1,520
|
|
Accrued employee
compensation
|
1,234
|
|
Other current
liabilities
|
1,139
|
|
Total current
liabilities
|
6,539
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
7,758
|
|
Long-term
debt
|
5,335
|
|
|
|
Redeemable
noncontrolling interest
|
449
|
|
|
|
Equity
|
|
Raytheon Company
stockholders' equity
|
|
Common
stock
|
3
|
|
Additional paid-in
capital
|
—
|
|
Accumulated other
comprehensive loss
|
(7,411)
|
|
Retained
earnings
|
17,565
|
|
Total Raytheon Company
stockholders' equity
|
10,157
|
|
Noncontrolling
interests in subsidiaries
|
—
|
|
Total
equity
|
10,157
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
30,238
|
|
Attachment
E
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
(In
millions)
|
31-Dec-16
|
|
31-Dec-15
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
2,174
|
|
|
$
|
2,067
|
|
(Income) loss from
discontinued operations, net of tax
|
(1)
|
|
|
(13)
|
|
Income from
continuing operations
|
2,173
|
|
|
2,054
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing operations, net of acquisitions and
divestitures
|
|
|
|
Depreciation and
amortization
|
515
|
|
|
489
|
|
Stock-based
compensation
|
151
|
|
|
140
|
|
Gain on sale of
equity method investment
|
(158)
|
|
|
—
|
|
Deferred income
taxes
|
109
|
|
|
(56)
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
(47)
|
|
Changes in assets and
liabilities
|
|
|
|
Contracts in process,
net and advance payments and billings in excess of costs
incurred
|
(593)
|
|
|
(637)
|
|
Inventories
|
(23)
|
|
|
(223)
|
|
Prepaid expenses and
other current assets
|
181
|
|
|
(28)
|
|
Income taxes
receivable/payable
|
(185)
|
|
|
(181)
|
|
Accounts
payable
|
152
|
|
|
107
|
|
Accrued employee
compensation
|
77
|
|
|
72
|
|
Other current
liabilities
|
(6)
|
|
|
58
|
|
Accrued retiree
benefits
|
419
|
|
|
637
|
|
Other, net
|
40
|
|
|
(39)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
2,852
|
|
|
2,346
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
—
|
|
|
13
|
|
Net cash provided by
(used in) operating activities
|
2,852
|
|
|
2,359
|
|
Cash flows from
investing activities
|
|
|
|
Additions to
property, plant and equipment
|
(561)
|
|
|
(406)
|
|
Proceeds from sales
of property, plant and equipment
|
34
|
|
|
59
|
|
Additions to
capitalized internal use software
|
(64)
|
|
|
(51)
|
|
Purchases of
short-term investments
|
(472)
|
|
|
(1,392)
|
|
Sales of short-term
investments
|
—
|
|
|
209
|
|
Maturities of
short-term investments
|
1,184
|
|
|
1,793
|
|
Payments for
purchases of acquired companies, net of cash received
|
(57)
|
|
|
(1,954)
|
|
Other
|
(11)
|
|
|
(2)
|
|
Net cash provided by
(used in) investing activities
|
53
|
|
|
(1,744)
|
|
Cash flows from
financing activities
|
|
|
|
Dividends
paid
|
(850)
|
|
|
(797)
|
|
Repurchases of common
stock under share repurchase programs
|
(900)
|
|
|
(1,000)
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(96)
|
|
|
(99)
|
|
Acquisition of
noncontrolling interest in RCCS LLC
|
(90)
|
|
|
—
|
|
Contribution from
noncontrolling interests in Forcepoint
|
11
|
|
|
—
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
47
|
|
Sale of
noncontrolling interest in Forcepoint
|
—
|
|
|
343
|
|
Other
|
(5)
|
|
|
(3)
|
|
Net cash provided by
(used in) financing activities
|
(1,930)
|
|
|
(1,509)
|
|
Net increase
(decrease) in cash and cash equivalents
|
975
|
|
|
(894)
|
|
Cash and cash
equivalents at beginning of the year
|
2,328
|
|
|
3,222
|
|
Cash and cash
equivalents at end of period
|
$
|
3,303
|
|
|
$
|
2,328
|
|
Attachment E - Pro
Forma
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
|
|
Preliminary Cash Flow
Information
|
|
|
|
|
|
|
Full Year 2015, and
Quarters within and Full Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1,
2017, we adopted Accounting Standards Update (ASU) 2014-09, Revenue
from Contracts with Customers (Topic 606). The amounts and
presentation of our cash flow information set forth below reflect
these changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(In
millions)
|
31-Dec-16
|
|
2-Oct-16
|
|
3-Jul-16
|
|
3-Apr-16
|
|
31-Dec-16
|
|
31-Dec-15
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
553
|
|
|
$
|
542
|
|
|
$
|
713
|
|
|
$
|
405
|
|
|
$
|
2,213
|
|
|
$
|
2,107
|
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
(1)
|
|
|
(13)
|
|
Income from
continuing operations
|
553
|
|
|
541
|
|
|
714
|
|
|
404
|
|
|
2,212
|
|
|
2,094
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing operations, net of acquisitions and
divestitures
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
138
|
|
|
130
|
|
|
123
|
|
|
124
|
|
|
515
|
|
|
489
|
|
Stock-based
compensation
|
31
|
|
|
31
|
|
|
35
|
|
|
54
|
|
|
151
|
|
|
140
|
|
Gain on sale of
equity method investment
|
—
|
|
|
—
|
|
|
(158)
|
|
|
—
|
|
|
(158)
|
|
|
—
|
|
Deferred income
taxes
|
217
|
|
|
(31)
|
|
|
(23)
|
|
|
(30)
|
|
|
133
|
|
|
(42)
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47)
|
|
Changes in assets and
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
82
|
|
|
186
|
|
|
(156)
|
|
|
(94)
|
|
|
18
|
|
|
12
|
|
Contracts assets and
contract liabilities
|
280
|
|
|
(433)
|
|
|
(197)
|
|
|
(295)
|
|
|
(645)
|
|
|
(656)
|
|
Inventories
|
27
|
|
|
(23)
|
|
|
(55)
|
|
|
41
|
|
|
(10)
|
|
|
(187)
|
|
Prepaid expenses and
other current assets
|
(47)
|
|
|
122
|
|
|
(13)
|
|
|
143
|
|
|
205
|
|
|
(61)
|
|
Income taxes
receivable/payable
|
(107)
|
|
|
(142)
|
|
|
(125)
|
|
|
189
|
|
|
(185)
|
|
|
(181)
|
|
Accounts
payable
|
100
|
|
|
3
|
|
|
92
|
|
|
(43)
|
|
|
152
|
|
|
107
|
|
Accrued employee
compensation
|
102
|
|
|
18
|
|
|
308
|
|
|
(351)
|
|
|
77
|
|
|
72
|
|
Other current
liabilities
|
18
|
|
|
17
|
|
|
(33)
|
|
|
(43)
|
|
|
(41)
|
|
|
17
|
|
Accrued retiree
benefits
|
(274)
|
|
|
248
|
|
|
224
|
|
|
221
|
|
|
419
|
|
|
637
|
|
Other, net
|
21
|
|
|
(27)
|
|
|
10
|
|
|
5
|
|
|
9
|
|
|
(48)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
1,141
|
|
|
640
|
|
|
746
|
|
|
325
|
|
|
2,852
|
|
|
2,346
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
—
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
|
13
|
|
Net cash provided by
(used in) operating activities
|
1,141
|
|
|
640
|
|
|
745
|
|
|
326
|
|
|
2,852
|
|
|
2,359
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
(217)
|
|
|
(107)
|
|
|
(87)
|
|
|
(150)
|
|
|
(561)
|
|
|
(406)
|
|
Proceeds from sales
of property, plant and equipment
|
9
|
|
|
24
|
|
|
—
|
|
|
1
|
|
|
34
|
|
|
59
|
|
Additions to
capitalized internal use software
|
(17)
|
|
|
(21)
|
|
|
(14)
|
|
|
(12)
|
|
|
(64)
|
|
|
(51)
|
|
Purchases of
short-term investments
|
—
|
|
|
—
|
|
|
(472)
|
|
|
—
|
|
|
(472)
|
|
|
(1,392)
|
|
Sales of short-term
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
Maturities of
short-term investments
|
362
|
|
|
223
|
|
|
472
|
|
|
127
|
|
|
1,184
|
|
|
1,793
|
|
Payments for
purchases of acquired companies, net of cash received
|
—
|
|
|
—
|
|
|
—
|
|
|
(57)
|
|
|
(57)
|
|
|
(1,954)
|
|
Other
|
(2)
|
|
|
(15)
|
|
|
6
|
|
|
—
|
|
|
(11)
|
|
|
(2)
|
|
Net cash provided by
(used in) investing activities
|
135
|
|
|
104
|
|
|
(95)
|
|
|
(91)
|
|
|
53
|
|
|
(1,744)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
(215)
|
|
|
(216)
|
|
|
(218)
|
|
|
(201)
|
|
|
(850)
|
|
|
(797)
|
|
Repurchases of common
stock under share repurchase programs
|
(99)
|
|
|
(199)
|
|
|
(202)
|
|
|
(400)
|
|
|
(900)
|
|
|
—
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(1)
|
|
|
(3)
|
|
|
(58)
|
|
|
(34)
|
|
|
(96)
|
|
|
(1,000)
|
|
Acquisition of
noncontrolling interest in RCCS LLC
|
—
|
|
|
—
|
|
|
(90)
|
|
|
—
|
|
|
(90)
|
|
|
(99)
|
|
Contribution from
noncontrolling interests in Forcepoint
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
Tax benefit from
stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
Sale of
noncontrolling interest in Forcepoint
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(5)
|
|
|
(3)
|
|
Net cash provided by
(used in) financing activities
|
(315)
|
|
|
(418)
|
|
|
(568)
|
|
|
(629)
|
|
|
(1,930)
|
|
|
(1,509)
|
|
Net increase
(decrease) in cash and cash equivalents
|
961
|
|
|
326
|
|
|
82
|
|
|
(394)
|
|
|
975
|
|
|
(894)
|
|
Cash and cash
equivalents at beginning of the year
|
2,342
|
|
|
2,016
|
|
|
1,934
|
|
|
2,328
|
|
|
2,328
|
|
|
3,222
|
|
Cash and cash
equivalents at end of period
|
$
|
3,303
|
|
|
$
|
2,342
|
|
|
$
|
2,016
|
|
|
$
|
1,934
|
|
|
$
|
3,303
|
|
|
$
|
2,328
|
|
Attachment
F
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Supplemental EPS
Information
|
|
|
|
|
|
|
|
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
31-Dec-16
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-15
|
Per share impact of
the FAS/CAS Adjustment (A)
|
$
|
0.26
|
|
|
$
|
0.10
|
|
|
$
|
0.95
|
|
|
$
|
0.39
|
|
Per share impact of
the TRS transaction (B)
|
—
|
|
|
—
|
|
|
0.53
|
|
|
—
|
|
Per share impact of
the eBorders settlement (C)
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.47
|
|
Per share impact of
discretionary pension contributions (D)
|
0.04
|
|
|
0.02
|
|
|
0.04
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
FAS/CAS
Adjustment
|
$
|
117
|
|
|
$
|
44
|
|
|
$
|
435
|
|
|
$
|
185
|
|
|
|
Tax effect (at 35%
statutory rate)
|
(41)
|
|
|
(15)
|
|
|
(152)
|
|
|
(65)
|
|
|
After-tax
impact
|
76
|
|
|
29
|
|
|
283
|
|
|
120
|
|
|
Diluted
shares
|
294.5
|
|
|
302.1
|
|
|
296.8
|
|
|
305.2
|
|
|
Per share
impact
|
$
|
0.26
|
|
|
$
|
0.10
|
|
|
$
|
0.95
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
TRS
transaction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158
|
|
|
$
|
—
|
|
|
Diluted
shares
|
|
—
|
|
|
—
|
|
|
296.8
|
|
|
—
|
|
|
Per share
impact
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.53
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
eBorders
settlement
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181
|
|
|
|
Tax effect (at 21%
blended global tax rate)
|
—
|
|
|
5
|
|
|
—
|
|
|
(38)
|
|
|
After-tax
impact
|
—
|
|
|
5
|
|
|
—
|
|
|
143
|
|
|
Diluted
shares
|
|
—
|
|
|
302.1
|
|
|
—
|
|
|
305.2
|
|
|
Per share
impact
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Tax impact of
discretionary pension contribution
|
$
|
13
|
|
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
5
|
|
|
Diluted
shares
|
|
294.5
|
|
|
302.1
|
|
|
296.8
|
|
|
305.2
|
|
|
Per share
impact
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Raytheon Company
Global Headquarters
Waltham, Mass.
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Corinne Kovalsky
781.522.5899
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/raytheon-reports-strong-fourth-quarter-and-full-year-2016-results-300397095.html
SOURCE Raytheon Company