WALTHAM, Mass., Oct. 26,
2017 /PRNewswire/ -- Raytheon Company (NYSE: RTN) today
announced net sales for the third quarter 2017 of $6.3 billion, up 4.5 percent compared to
$6.0 billion in the third quarter
2016. Third quarter 2017 EPS from continuing operations was
$1.97 compared to $1.84 in the third quarter 2016. The increase in
the third quarter 2017 EPS from continuing operations was primarily
driven by operational improvements.
"We delivered strong bookings and solid operating performance in
the third quarter," said Thomas A.
Kennedy, Raytheon Chairman and CEO. "Global customer
demand drove an increase in our backlog, which positions us well
for continued growth in 2018."
Operating cash flow from continuing operations for the third
quarter 2017 was $382 million
compared to $640 million for the
third quarter 2016. As expected, the change in operating cash flow
from continuing operations was primarily due to higher required
pension contributions in the third quarter 2017, partially offset
by the timing of collections.
In the third quarter 2017, the company repurchased 1.1 million
shares of common stock for $200
million. Year-to-date 2017, the company repurchased 4.4
million shares of common stock for $700
million.
Bookings in the third quarter 2017 were $7.0 billion, slightly higher than the third
quarter 2016. Backlog at the end of the third quarter 2017 was
$36.7 billion, an increase of
approximately $950 million compared
to the third quarter 2016.
Summary Financial
Results
|
|
3rd
Quarter
|
%
|
|
Nine
Months
|
%
|
($ in millions,
except per share data)
|
2017
|
2016
|
Change
|
|
2017
|
2016
|
Change
|
|
|
|
|
|
|
|
|
Bookings
|
$
|
6,957
|
$
|
6,923
|
0.5%
|
|
$
|
19,177
|
$
|
20,227
|
-5.2%
|
Net Sales
|
$
|
6,284
|
$
|
6,014
|
4.5%
|
|
$
|
18,565
|
$
|
17,845
|
4.0%
|
Income from
Continuing Operations attributable to
Raytheon Company
|
$
|
573
|
$
|
543
|
5.5%
|
|
$
|
1,6291
|
$
|
1,6882
|
-3.5%
|
EPS from Continuing
Operations
|
$
|
1.97
|
$
|
1.84
|
7.1%
|
|
$
|
5.591
|
$
|
5.672
|
-1.4%
|
Operating Cash Flow
from Continuing Operations
|
$
|
382
|
$
|
640
|
|
|
$
|
1,123
|
$
|
1,711
|
|
Workdays in Fiscal
Reporting Calendar
|
62
|
63
|
|
|
190
|
192
|
|
1
Nine months 2017 Income from Continuing Operations attributable
to Raytheon Company and EPS from Continuing Operations included the
$25 million after-tax ($39 million pretax) and $0.09 unfavorable
impact, respectively, related to the early retirement of debt in
the second quarter 2017.
|
2
Nine months 2016 Income from Continuing Operations attributable
to Raytheon Company and EPS from Continuing Operations included the
tax-free gain of $158 million and $0.53 impact, respectively, for
the second quarter 2016 TRS transaction.
|
|
Backlog
|
|
|
|
|
|
|
|
|
|
|
Period
Ending
|
($ in
millions)
|
|
|
Q3
2017
|
|
Q3
2016
|
|
2016
|
Backlog
|
|
|
$
|
36,676
|
|
|
$
|
35,726
|
|
|
$
|
36,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook
The company has updated its financial outlook for 2017. Charts
containing additional information on the company's 2017 outlook are
available at www.raytheon.com/ir.
2017 Financial
Outlook
|
|
|
|
|
Current
|
|
Prior
(7/27/17)
|
Net Sales
($B)
|
25.3 -
25.6*
|
|
25.1 -
25.6
|
Deferred Revenue
Adjustment ($M)1
|
(33)
|
|
(33)
|
Amortization of
Acquired Intangibles ($M)1
|
(127)
|
|
(127)
|
FAS/CAS Adjustment
($M)2
|
389*
|
|
428
|
Interest Expense, net
($M)
|
(185) -
(190)*
|
|
(196) -
(201)
|
Diluted Shares
(M)
|
~292
|
|
~292
|
Effective Tax
Rate
|
~30.0%*
|
|
~30.5%
|
EPS from Continuing
Operations
|
$7.45 -
$7.55*
|
|
$7.35 -
$7.50
|
Operating Cash Flow
from Continuing Operations ($B)
|
2.8 -
3.1
|
|
2.8 -
3.1
|
*Denotes
change from prior guidance
|
1 Deferred Revenue
Adjustment and Amortization of Acquired 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.
|
2
The full-year 2017 FAS/CAS Adjustment reflects a $39 million
($0.09 per share) reduction, of which $26 million ($0.06 per share)
was recorded in Q3 2017 and $13 million ($0.03 per share) is
expected to be recorded in Q4 2017. This is due to the annual
update in Q3 2017 of the actuarial estimates for pension and other
postretirement benefit plans.
|
Segment Results
The company's reportable segments are: Integrated Defense
Systems (IDS); Intelligence, Information and Services (IIS);
Missile Systems (MS); Space and Airborne Systems (SAS); and
Forcepoint™.
Integrated Defense
Systems
|
|
|
|
3rd
Quarter
|
|
|
Nine
Months
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
|
2017
|
2016
|
%
Change
|
Net Sales
|
|
|
$
|
1,391
|
$
|
1,334
|
4%
|
|
$
|
4,251
|
$
|
4,069
|
4%
|
Operating
Income1
|
|
|
$
|
231
|
$
|
211
|
9%
|
|
$
|
688
|
$
|
733
|
NM
|
Operating
Margin1
|
|
|
16.6%
|
15.8%
|
|
|
16.2%
|
18.0%
|
|
1
Nine months 2016 operating income and operating margin include
the $158 million tax-free gain from the second quarter
2016 TRS transaction.
|
NM = Not
Meaningful
|
Integrated Defense Systems (IDS) had third quarter 2017 net
sales of $1,391 million, up 4 percent
compared to $1,334 million in the
third quarter 2016. The increase in net sales for the quarter was
primarily driven by higher net sales on an international early
warning radar program awarded in the first quarter 2017.
IDS recorded $231 million of
operating income in the third quarter 2017 compared to $211 million in the third quarter 2016. The
increase in operating income for the quarter was primarily driven
by higher net program efficiencies and higher volume.
Intelligence,
Information and Services
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
Nine
Months
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
|
2017
|
2016
|
%
Change
|
Net Sales
|
|
|
$
|
1,543
|
$
|
1,534
|
1%
|
|
$
|
4,605
|
$
|
4,653
|
-1%
|
Operating
Income
|
|
|
$
|
112
|
$
|
123
|
-9%
|
|
$
|
338
|
$
|
347
|
-3%
|
Operating
Margin
|
|
|
7.3%
|
8.0%
|
|
|
7.3%
|
7.5%
|
|
Intelligence, Information and Services (IIS) had third quarter
2017 net sales of $1,543 million
compared to $1,534 million in the
third quarter 2016.
IIS recorded $112 million of
operating income in the third quarter 2017 compared to $123 million in the third quarter 2016. The
change in operating margin was primarily due to a change in program
mix and other performance.
During the quarter, IIS booked $469
million on domestic and foreign training programs in support
of Warfighter FOCUS activities and $104
million to provide intelligence, surveillance and
reconnaissance (ISR) support to the U.S. Air Force. IIS also booked
$686 million on a number of
classified contracts.
Missile
Systems
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
Nine
Months
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
|
2017
|
2016
|
%
Change
|
Net Sales
|
|
|
$
|
1,945
|
$
|
1,770
|
10%
|
|
$
|
5,602
|
$
|
5,199
|
8%
|
Operating
Income
|
|
|
$
|
280
|
$
|
235
|
19%
|
|
$
|
732
|
$
|
660
|
11%
|
Operating
Margin
|
|
|
14.4%
|
13.3%
|
|
|
13.1%
|
12.7%
|
|
Missile Systems (MS) had third quarter 2017 net sales of
$1,945 million, up 10 percent
compared to $1,770 million in the
third quarter 2016. The increase in net sales for the quarter was
primarily driven by higher net sales on the Paveway™ and
Excalibur® programs.
MS recorded $280 million of
operating income in the third quarter 2017 compared to $235 million in the third quarter 2016. The
increase in operating income for the quarter was primarily driven
by higher net program efficiencies and higher volume.
During the quarter, MS booked $492
million for the Redesigned Kill Vehicle (RKV) program;
$348 million for Tube-launched,
Optically-tracked, Wireless-guided (TOW®) missiles;
$206 million for Paveway;
$145 million for Tomahawk;
$136 million for Excalibur;
$102 million for Standard Missile-3
(SM-3®); $91 million for
Javelin; and $79 million for
Horizontal Technology Integration (HTI) forward-looking infrared
kits. MS also booked $427 million on
a number of classified contracts.
Space and Airborne
Systems
|
|
|
|
|
3rd
Quarter
|
|
Nine
Months
|
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
|
2017
|
2016
|
%
Change
|
Net Sales
|
|
|
$
|
1,597
|
$
|
1,590
|
|
—
|
|
$
|
4,760
|
$
|
4,582
|
|
4%
|
Operating
Income
|
|
|
$
|
212
|
$
|
215
|
|
-1%
|
|
$
|
620
|
$
|
587
|
|
6%
|
Operating
Margin
|
|
|
13.3%
|
13.5%
|
|
|
|
13.0%
|
12.8%
|
|
|
Space and Airborne Systems (SAS) had third quarter 2017 net
sales of $1,597 million compared to
$1,590 million in the third quarter
2016.
SAS recorded $212 million of
operating income in the third quarter 2017 compared to $215 million in the third quarter 2016.
During the quarter, SAS booked approximately $200 million on classified and unclassified space
programs and $84 million for radar
components for the U.S. Navy and the Royal Australian Air Force.
SAS also booked $435 million on a
number of other classified contracts.
Forcepoint
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
Nine
Months
|
|
($ in
millions)
|
|
|
2017
|
2016
|
%
Change
|
|
2017
|
2016
|
%
Change
|
Net Sales
|
|
|
$
|
170
|
$
|
167
|
2%
|
|
$
|
452
|
$
|
443
|
2%
|
Operating
Income
|
|
|
$
|
23
|
$
|
41
|
-44%
|
|
$
|
41
|
$
|
69
|
-41%
|
Operating
Margin
|
|
|
13.5%
|
24.6%
|
|
|
9.1%
|
15.6%
|
|
Forcepoint had third quarter 2017 net sales of $170 million compared to $167 million in the third quarter 2016.
Forcepoint recorded $23 million of
operating income in the third quarter 2017 compared to $41 million in the third quarter 2016. The
decrease in operating income for the quarter was primarily driven
by investments in sales and marketing.
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, C5I™
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 Third Quarter 2017 Financial
Results
Raytheon's financial results conference call will be
held on Thursday, October 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 (877)
280-4957 in the U.S. or (857) 244-7314 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
|
|
|
|
|
|
|
|
|
Third Quarter
2017
|
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,284
|
|
|
$
|
6,014
|
|
|
$
|
18,565
|
|
|
$
|
17,845
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
4,690
|
|
|
4,474
|
|
|
13,905
|
|
|
13,277
|
|
General and
administrative expenses
|
|
736
|
|
|
710
|
|
|
2,212
|
|
|
2,153
|
|
Total operating
expenses
|
|
5,426
|
|
|
5,184
|
|
|
16,117
|
|
|
15,430
|
|
Operating
income
|
|
858
|
|
|
830
|
|
|
2,448
|
|
|
2,415
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
48
|
|
|
58
|
|
|
157
|
|
|
174
|
|
Interest
income
|
|
(4)
|
|
|
(4)
|
|
|
(14)
|
|
|
(12)
|
|
Other (income)
expense, net
|
|
(2)
|
|
|
(4)
|
|
|
26
|
|
|
(7)
|
|
Total non-operating
(income) expense, net
|
|
42
|
|
|
50
|
|
|
169
|
|
|
155
|
|
Income from
continuing operations before taxes
|
|
816
|
|
|
780
|
|
|
2,279
|
|
|
2,260
|
|
Federal and foreign
income taxes
|
|
248
|
|
|
239
|
|
|
667
|
|
|
601
|
|
Income from
continuing operations
|
|
568
|
|
|
541
|
|
|
1,612
|
|
|
1,659
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(1)
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Net income
|
|
567
|
|
|
542
|
|
|
1,614
|
|
|
1,660
|
|
Less: Net income
(loss) attributable to noncontrolling interests
in subsidiaries
|
|
(5)
|
|
|
(2)
|
|
|
(17)
|
|
|
(29)
|
|
Net income
attributable to Raytheon Company
|
|
$
|
572
|
|
|
$
|
544
|
|
|
$
|
1,631
|
|
|
$
|
1,689
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Raytheon Company
common stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.97
|
|
|
$
|
1.84
|
|
|
$
|
5.59
|
|
|
$
|
5.68
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Net income
|
|
1.97
|
|
|
1.84
|
|
|
5.60
|
|
|
5.68
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Raytheon Company
common stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
1.97
|
|
|
$
|
1.84
|
|
|
$
|
5.59
|
|
|
$
|
5.67
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Net income
|
|
1.97
|
|
|
1.84
|
|
|
5.60
|
|
|
5.68
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common
stockholders:
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
573
|
|
|
$
|
543
|
|
|
$
|
1,629
|
|
|
$
|
1,688
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(1)
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Net income
|
|
$
|
572
|
|
|
$
|
544
|
|
|
$
|
1,631
|
|
|
$
|
1,689
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
290.7
|
|
|
295.2
|
|
|
291.6
|
|
|
297.2
|
|
Diluted
|
|
291.0
|
|
|
295.5
|
|
|
291.9
|
|
|
297.5
|
|
Attachment
B
|
|
|
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
Preliminary Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except
percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,391
|
|
|
$
|
1,334
|
|
|
$
|
231
|
|
|
$
|
211
|
|
|
16.6
|
%
|
|
15.8
|
%
|
Intelligence,
Information and Services
|
|
1,543
|
|
|
1,534
|
|
|
112
|
|
|
123
|
|
|
7.3
|
%
|
|
8.0
|
%
|
Missile
Systems
|
|
1,945
|
|
|
1,770
|
|
|
280
|
|
|
235
|
|
|
14.4
|
%
|
|
13.3
|
%
|
Space and Airborne
Systems
|
|
1,597
|
|
|
1,590
|
|
|
212
|
|
|
215
|
|
|
13.3
|
%
|
|
13.5
|
%
|
Forcepoint
|
|
170
|
|
|
167
|
|
|
23
|
|
|
41
|
|
|
13.5
|
%
|
|
24.6
|
%
|
Eliminations
|
|
(355)
|
|
|
(364)
|
|
|
(39)
|
|
|
(42)
|
|
|
|
|
|
Total business
segment
|
|
6,291
|
|
|
6,031
|
|
|
819
|
|
|
783
|
|
|
13.0
|
%
|
|
13.0
|
%
|
Acquisition
Accounting Adjustments
|
|
(7)
|
|
|
(17)
|
|
|
(39)
|
|
|
(46)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
78
|
|
|
104
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11)
|
|
|
|
|
|
Total
|
|
$
|
6,284
|
|
|
$
|
6,014
|
|
|
$
|
858
|
|
|
$
|
830
|
|
|
13.7
|
%
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
Net Sales
|
|
Operating
Income
|
|
As a Percent of Net
Sales
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
4,251
|
|
|
$
|
4,069
|
|
|
$
|
688
|
|
|
$
|
733
|
|
|
16.2
|
%
|
|
18.0
|
%
|
Intelligence,
Information and Services
|
|
4,605
|
|
|
4,653
|
|
|
338
|
|
|
347
|
|
|
7.3
|
%
|
|
7.5
|
%
|
Missile
Systems
|
|
5,602
|
|
|
5,199
|
|
|
732
|
|
|
660
|
|
|
13.1
|
%
|
|
12.7
|
%
|
Space and Airborne
Systems
|
|
4,760
|
|
|
4,582
|
|
|
620
|
|
|
587
|
|
|
13.0
|
%
|
|
12.8
|
%
|
Forcepoint
|
|
452
|
|
|
443
|
|
|
41
|
|
|
69
|
|
|
9.1
|
%
|
|
15.6
|
%
|
Eliminations
|
|
(1,077)
|
|
|
(1,037)
|
|
|
(113)
|
|
|
(109)
|
|
|
|
|
|
Total business
segment
|
|
18,593
|
|
|
17,909
|
|
|
2,306
|
|
|
2,287
|
|
|
12.4
|
%
|
|
12.8
|
%
|
Acquisition
Accounting Adjustments
|
|
(28)
|
|
|
(64)
|
|
|
(123)
|
|
|
(155)
|
|
|
|
|
|
FAS/CAS
Adjustment
|
|
—
|
|
|
—
|
|
|
295
|
|
|
318
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(35)
|
|
|
|
|
|
Total
|
|
$
|
18,565
|
|
|
$
|
17,845
|
|
|
$
|
2,448
|
|
|
$
|
2,415
|
|
|
13.2
|
%
|
|
13.5
|
%
|
Attachment
C
|
|
|
|
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
Other Preliminary
Information
|
|
|
|
|
|
|
|
|
|
Third Quarter
2017
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
|
|
|
1-Oct-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
|
|
|
$
|
9,089
|
|
|
$
|
10,159
|
|
Intelligence,
Information and Services
|
|
|
|
|
|
6,368
|
|
|
5,662
|
|
Missile
Systems
|
|
|
|
|
|
|
11,943
|
|
|
11,568
|
|
Space and Airborne
Systems
|
|
|
|
|
|
|
8,826
|
|
|
8,834
|
|
Forcepoint
|
|
|
|
|
|
|
450
|
|
|
486
|
|
Total
backlog
|
|
|
|
|
|
|
$
|
36,676
|
|
|
$
|
36,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Bookings
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
|
|
Total
bookings
|
|
|
$
|
6,957
|
|
|
$
|
6,923
|
|
|
$
|
19,177
|
|
|
$
|
20,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
General and
Administrative Expenses
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
$
|
549
|
|
|
$
|
531
|
|
|
$
|
1,654
|
|
|
$
|
1,594
|
|
Research and
development expenses
|
|
187
|
|
|
179
|
|
|
558
|
|
|
559
|
|
Total general and
administrative expenses
|
|
$
|
736
|
|
|
$
|
710
|
|
|
$
|
2,212
|
|
|
$
|
2,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
|
|
|
1-Oct-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
|
2,311
|
|
|
$
|
3,303
|
|
Restricted
cash
|
|
|
|
12
|
|
|
—
|
|
Total cash, cash
equivalents and restricted cash shown in Attachment E
|
|
|
|
$
|
2,323
|
|
|
$
|
3,303
|
|
Attachment
D
|
|
|
|
Raytheon
Company
|
|
Preliminary Balance
Sheet Information
|
|
Third Quarter
2017
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
1-Oct-17
|
|
31-Dec-16
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,311
|
|
|
$
|
3,303
|
|
Short-term
investments
|
—
|
|
|
100
|
|
Receivables,
net
|
1,393
|
|
|
1,163
|
|
Contract
assets
|
5,892
|
|
|
5,041
|
|
Inventories
|
693
|
|
|
608
|
|
Prepaid expenses and
other current assets
|
489
|
|
|
670
|
|
Total current
assets
|
10,778
|
|
|
10,885
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,248
|
|
|
2,166
|
|
Goodwill
|
14,878
|
|
|
14,788
|
|
Other assets,
net
|
2,374
|
|
|
2,399
|
|
Total
assets
|
$
|
30,278
|
|
|
$
|
30,238
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
Current
liabilities
|
|
|
|
Commercial
paper
|
$
|
300
|
|
|
$
|
—
|
|
Contract
liabilities
|
2,519
|
|
|
2,646
|
|
Accounts
payable
|
1,347
|
|
|
1,520
|
|
Accrued employee
compensation
|
1,165
|
|
|
1,234
|
|
Other current
liabilities
|
1,161
|
|
|
1,139
|
|
Total current
liabilities
|
6,492
|
|
|
6,539
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
7,791
|
|
|
7,758
|
|
Long-term
debt
|
4,749
|
|
|
5,335
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
389
|
|
|
449
|
|
|
|
|
|
Equity
|
|
|
|
Raytheon Company
stockholders' equity
|
|
|
|
Common
stock
|
3
|
|
|
3
|
|
Additional paid-in
capital
|
—
|
|
|
—
|
|
Accumulated other
comprehensive loss
|
(7,075)
|
|
|
(7,411)
|
|
Retained
earnings
|
17,929
|
|
|
17,565
|
|
Total Raytheon Company
stockholders' equity
|
10,857
|
|
|
10,157
|
|
Noncontrolling
interests in subsidiaries
|
—
|
|
|
—
|
|
Total
equity
|
10,857
|
|
|
10,157
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
30,278
|
|
|
$
|
30,238
|
|
Attachment
E
|
|
|
|
Raytheon
Company
|
|
Preliminary Cash Flow
Information
|
|
|
|
Third Quarter
2017
|
|
|
|
(In
millions)
|
|
|
|
|
Nine Months
Ended
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
1,614
|
|
|
$
|
1,660
|
|
(Income) loss from
discontinued operations, net of tax
|
(2)
|
|
|
(1)
|
|
Income from
continuing operations
|
1,612
|
|
|
1,659
|
|
Adjustments to
reconcile to net cash provided by (used in) operating activities
from continuing
operations, net of the effect of acquisitions and
divestitures
|
|
|
|
Depreciation
and amortization
|
401
|
|
|
377
|
|
Stock-based
compensation
|
127
|
|
|
120
|
|
Gain on sale of
equity method investment
|
—
|
|
|
(158)
|
|
Loss on
repayment of long-term debt
|
39
|
|
|
—
|
|
Deferred income
taxes
|
(137)
|
|
|
(84)
|
|
Changes in
assets and liabilities
|
|
|
|
Receivables,
net
|
(226)
|
|
|
(64)
|
|
Contract assets and
contract liabilities
|
(962)
|
|
|
(925)
|
|
Inventories
|
(83)
|
|
|
(37)
|
|
Prepaid expenses and
other current assets
|
148
|
|
|
252
|
|
Income taxes
receivable/payable
|
66
|
|
|
(78)
|
|
Accounts
payable
|
(191)
|
|
|
52
|
|
Accrued employee
compensation
|
(68)
|
|
|
(25)
|
|
Other current
liabilities
|
35
|
|
|
(59)
|
|
Accrued retiree
benefits
|
452
|
|
|
693
|
|
Other,
net
|
(90)
|
|
|
(12)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
1,123
|
|
|
1,711
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
(1)
|
|
|
—
|
|
Net cash provided by
(used in) operating activities
|
1,122
|
|
|
1,711
|
|
Cash flows from
investing activities
|
|
|
|
Additions to
property, plant and equipment
|
(323)
|
|
|
(344)
|
|
Proceeds from sales
of property, plant and equipment
|
31
|
|
|
25
|
|
Additions to
capitalized internal use software
|
(49)
|
|
|
(47)
|
|
Purchases of
short-term investments
|
(399)
|
|
|
(472)
|
|
Maturities of
short-term investments
|
517
|
|
|
822
|
|
Payments for
purchases of acquired companies, net of cash received
|
(93)
|
|
|
(57)
|
|
Other
|
(2)
|
|
|
(9)
|
|
Net cash provided by
(used in) investing activities
|
(318)
|
|
|
(82)
|
|
Cash flows from
financing activities
|
|
|
|
Dividends
paid
|
(679)
|
|
|
(635)
|
|
Net borrowings
(payments) on commercial paper
|
300
|
|
|
—
|
|
Repayments of
long-term debt
|
(591)
|
|
|
—
|
|
Loss on repayment of
long-term debt
|
(38)
|
|
|
—
|
|
Repurchases of common
stock under share repurchase programs
|
(700)
|
|
|
(801)
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(84)
|
|
|
(95)
|
|
Acquisition of
noncontrolling interest in RCCS LLC
|
—
|
|
|
(90)
|
|
Contribution from
noncontrolling interests in Forcepoint
|
8
|
|
|
11
|
|
Other
|
—
|
|
|
(5)
|
|
Net cash provided by
(used in) financing activities
|
(1,784)
|
|
|
(1,615)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(980)
|
|
|
14
|
|
Cash, cash
equivalents and restricted cash at beginning of the year
|
3,303
|
|
|
2,328
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
2,323
|
|
|
$
|
2,342
|
|
Attachment
F
|
|
|
|
|
|
Raytheon
Company
|
|
|
|
|
|
|
|
Supplemental EPS
Information
|
|
|
|
|
|
|
|
Third Quarter
2017
|
|
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
1-Oct-17
|
|
2-Oct-16
|
|
1-Oct-17
|
|
2-Oct-16
|
|
|
|
|
|
|
|
|
Per share impact of
early debt retirement (A)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.09
|
|
|
$
|
—
|
|
Per share impact of
TRS transaction (B)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Early debt retirement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
Tax
effect (at 35% statutory rate)
|
—
|
|
|
—
|
|
|
(14)
|
|
|
—
|
|
After-tax
impact
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
Diluted
shares
|
—
|
|
|
—
|
|
|
291.9
|
|
|
—
|
|
Per
share impact
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.09
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) TRS transaction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158
|
|
Diluted
shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
297.5
|
|
Per
share impact
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.53
|
|
Raytheon Company
Global Headquarters
Watham, Mass.
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Corinne
Kovalsky
781.522.5899
View original
content:http://www.prnewswire.com/news-releases/raytheon-reports-strong-third-quarter-2017-results-300543567.html
SOURCE Raytheon Company