WALTHAM, Mass., April 26,
2018 /PRNewswire/ -- Raytheon Company (NYSE: RTN) today
announced net sales for the first quarter 2018 of $6.3 billion, up 4.5 percent compared to
$6.0 billion in the first quarter
2017. First quarter 2018 EPS from continuing operations was
$2.20 compared to $1.73 in the first quarter 2017. The increase in
the first quarter 2018 EPS from continuing operations was primarily
driven by operational improvements and lower taxes.
"We delivered strong operating performance in the first quarter
with our sales, earnings per share and cash flow all ahead of our
expectations," said Thomas A.
Kennedy, Raytheon Chairman and CEO. "We continue to
position the company for the future by executing our strategy and
investing in advanced capabilities that align with our global
customers' evolving requirements."
Operating cash flow from continuing operations for the first
quarter 2018 was $283 million
compared to an outflow of $41 million
for the first quarter 2017. The increase in operating cash flow
from continuing operations in the first quarter 2018 was primarily
due to favorable collections and lower net cash taxes.
In the first quarter 2018, the company repurchased 1.9 million
shares of common stock for $400
million. In addition, as previously announced, Raytheon's
Board of Directors voted to increase the annual dividend rate by
8.8 percent, from $3.19 to
$3.47 per share, the fourteenth
consecutive annual dividend increase.
The company had bookings of $6.3
billion in the first quarter 2018, compared with
$5.7 billion in the first quarter
2017.
Summary Financial
Results
|
|
|
1st
Quarter
|
%
|
|
($ in millions,
except per share data)
|
2018
|
2017
|
Change
|
|
|
|
|
|
|
Bookings
|
$
|
6,311
|
$
|
5,688
|
11.0%
|
|
Net Sales
|
$
|
6,267
|
$
|
6,000
|
4.5%
|
|
Income from
Continuing Operations attributable to
|
|
|
|
|
|
|
Raytheon
Company
|
$
|
634
|
$
|
503
|
26.0%
|
|
EPS from Continuing
Operations
|
$
|
2.20
|
$
|
1.73
|
27.2%
|
|
Operating Cash Flow
from Continuing Operations
|
$
|
283
|
$
|
(41)
|
|
|
Workdays in Fiscal
Reporting Calendar
|
64
|
64
|
|
|
|
|
Backlog at the end of the first quarter 2018 was $38.1 billion, an increase of approximately
$2.1 billion or 5.8 percent compared
to the end of the first quarter 2017.
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
Ending
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018
|
Q1
2017
|
2017
|
|
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,139
|
$
|
36,054
|
$
|
38,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook
The company has updated its financial outlook for 2018. Charts
containing additional information on the company's 2018 outlook are
available on the company's website.
2018 Financial
Outlook
|
|
|
|
|
|
Current
|
|
Prior
(1/25/18)
|
|
Net Sales
($B)
|
26.5 -
27.0*
|
|
26.4 -
26.9
|
|
Deferred Revenue
Adjustment ($M)1
|
(10)
|
|
(10)
|
|
Amortization of
Acquired Intangibles ($M)1
|
(118)
|
|
(118)
|
|
FAS/CAS Operating
Adjustment ($M)2
|
1,416
|
|
1,416
|
|
Retirement Benefits
Non-service Expense, non-operating ($M)2
|
(958)
|
|
(958)
|
|
Interest Expense, net
($M)
|
(180) -
(185)
|
|
(180) -
(185)
|
|
Diluted Shares
(M)
|
287 - 289
|
|
287 - 289
|
|
Effective Tax
Rate
|
~18.0%*
|
|
~19.0%
|
|
EPS from Continuing
Operations
|
$9.70 -
$9.90*
|
|
$9.55 -
$9.75
|
|
Operating Cash Flow
from Continuing Operations ($B)
|
3.6 -
4.0
|
|
3.6 -
4.0
|
|
*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
As previously reported, in the first quarter 2018, the company
adopted the new retirement benefit standard, Accounting Standards
Update 2017-07. As a result, all components of FAS pension and
postretirement benefit expense, other than service costs, were
reclassified from operating income to non-operating income, with no
impact to net income. The outlook above reflects this
change.
|
|
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
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2018
|
2017
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,489
|
$
|
1,398
|
7%
|
|
Operating
Income
|
|
|
$
|
273
|
$
|
212
|
29%
|
|
Operating
Margin
|
|
|
18.3%
|
15.2%
|
|
|
Integrated Defense Systems (IDS) had first quarter 2018 net
sales of $1,489 million, up 7 percent
compared to $1,398 million in the
first quarter 2017. The increase in net sales for the quarter was
primarily driven by higher net sales from an international
Patriot® program awarded in the first quarter 2018.
IDS recorded $273 million of
operating income in the first quarter 2018 compared to $212 million in the first quarter 2017. The
increase in operating income for the quarter was primarily driven
by a favorable change in program mix and higher net program
efficiencies.
During the quarter, IDS booked over $2.0
billion to provide advanced Patriot air and missile defense
capabilities for the U.S. and multiple international customers,
including a previously announced direct commercial contract for
approximately $1.6 billion to a
member of the 15-nation Patriot partnership.
Intelligence,
Information and Services
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2018
|
2017
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,582
|
$
|
1,507
|
5%
|
|
Operating
Income
|
|
|
$
|
117
|
$
|
111
|
5%
|
|
Operating
Margin
|
|
|
7.4%
|
7.4%
|
|
|
Intelligence, Information and Services (IIS) had first quarter
2018 net sales of $1,582 million, up
5 percent compared to $1,507 million
in the first quarter 2017. The increase in net sales for the
quarter was primarily driven by higher net sales on classified and
training programs.
IIS recorded $117 million of
operating income in the first quarter 2018 compared to $111 million in the first quarter 2017.
During the quarter, IIS booked $80
million on domestic and foreign training programs in support
of Warfighter FOCUS activities. IIS also booked $514 million on a number of classified
contracts.
Missile
Systems
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2018
|
2017
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,848
|
$
|
1,756
|
5%
|
|
Operating
Income
|
|
|
$
|
212
|
$
|
216
|
(2)%
|
|
Operating
Margin
|
|
|
11.5%
|
12.3%
|
|
|
Missile Systems (MS) had first quarter 2018 net sales of
$1,848 million, up 5 percent compared
to $1,756 million in the first
quarter 2017. The increase in net sales for the quarter was
primarily driven by higher net sales on classified programs.
MS recorded $212 million of
operating income in the first quarter 2018 compared to $216 million in the first quarter 2017. As
expected, the decrease in operating margin for the quarter was
primarily due to a change in program mix.
During the quarter, MS booked $552
million for Advanced Medium-Range Air-to-Air Missiles
(AMRAAM®) for the U.S. Air Force, U.S. Navy, and
international customers; $186 million
for Small Diameter Bomb II (SDB II™) for the U.S. Air Force; and
$114 million for Commander's
Independent Thermal Viewers (CITV) for the U.S. Army and an
international customer. MS also booked $130
million on a number of classified contracts.
Space and Airborne
Systems
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2018
|
2017
|
%
Change
|
|
Net Sales
|
|
|
$
|
1,568
|
$
|
1,555
|
1%
|
|
Operating
Income
|
|
|
$
|
193
|
$
|
190
|
2%
|
|
Operating
Margin
|
|
|
12.3%
|
12.2%
|
|
|
Space and Airborne Systems (SAS) had first quarter 2018 net
sales of $1,568 million, up 1 percent
compared to $1,555 million in the
first quarter 2017.
SAS recorded $193 million of
operating income in the first quarter 2018 compared to $190 million in the first quarter 2017.
During the quarter, SAS booked $87
million on the next-generation Multi-Spectral Targeting
System (MTS) for the U.S. Air Force and $85
million for radar components for the U.S. Navy. SAS also
booked $356 million on a number of
classified contracts.
Forcepoint
|
|
|
|
|
1st
Quarter
|
|
|
($ in
millions)
|
|
|
2018
|
2017
|
%
Change
|
|
Net Sales
|
|
|
$
|
141
|
$
|
144
|
(2)%
|
|
Operating Income
(Loss)
|
|
|
$
|
(7)
|
$
|
16
|
NM
|
|
Operating
Margin
|
|
|
(5.0)%
|
11.1%
|
|
|
NM = Not
Meaningful
|
|
|
|
|
|
|
Forcepoint had first quarter 2018 net sales of $141 million compared to $144 million in the first quarter 2017.
Forcepoint recorded a loss of $7
million in the first quarter 2018 compared to operating
income of $16 million in the first
quarter 2017. As expected, the decrease in operating income for the
quarter was primarily driven by higher operating costs.
About Raytheon
Raytheon Company, with 2017 sales of
$25 billion and 64,000 employees, is
a technology and innovation leader specializing in defense, civil
government and cybersecurity solutions. With a history of
innovation spanning 96 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 First Quarter 2018 Financial
Results
Raytheon's financial results conference call will be
held on Thursday, April 26, 2018 at
9 a.m. ET. Participants will include
Thomas A. Kennedy, Chairman and CEO;
Anthony F. O'Brien, vice president
and CFO; and other company executives.
The dial-in number for the conference call will be (866)
270-6057 in the U.S. or (617) 213-8891 outside of the U.S. The
conference call will also be audiocast on the Internet at
www.raytheon.com/ir. Individuals may listen to the call and
download charts that will be used during the call. These charts
will be available for printing prior to the call.
Interested parties are encouraged to check the website ahead of
time to ensure their computers are configured for the audio stream.
Instructions for obtaining the free required downloadable software
are posted on the site.
Disclosure Regarding Forward-looking Statements
This
release and the attachments contain forward-looking statements,
including information regarding the company's financial outlook,
future plans, objectives, business prospects and anticipated
financial performance. These forward-looking statements are not
statements of historical facts and represent only the company's
current expectations regarding such matters. These statements
inherently involve a wide range of known and unknown risks and
uncertainties. The company's actual actions and results could
differ materially from what is expressed or implied by these
statements. Specific factors that could cause such a difference
include, but are not limited to: the company's dependence on the
U.S. government for a significant portion of its business and the
risks associated with U.S. government sales, including changes or
shifts in defense spending due to budgetary constraints, spending
cuts resulting from sequestration, a government shutdown, or
otherwise, uncertain funding of programs, potential termination of
contracts and performance under undefinitized contract awards;
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, 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; the ability to obtain timely
U.S. government approvals for international contracts; 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, including with respect to the provisional
impact of the Tax Cuts and Jobs Act of 2017; 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
First Quarter
2018
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
1-Apr-18
|
|
2-Apr-17
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,267
|
|
|
$
|
6,000
|
|
|
Operating
expenses
|
|
|
|
|
|
Cost of
sales
|
|
4,532
|
|
|
4,366
|
|
|
General and
administrative expenses
|
|
694
|
|
|
686
|
|
|
Total operating
expenses
|
|
5,226
|
|
|
5,052
|
|
|
Operating
income
|
|
1,041
|
|
|
948
|
|
|
Non-operating
(income) expense, net
|
|
|
|
|
|
Retirement benefits
non-service expense
|
|
239
|
|
|
207
|
|
|
Interest
expense
|
|
47
|
|
|
58
|
|
|
Interest
income
|
|
(7)
|
|
|
(5)
|
|
|
Other (income)
expense, net
|
|
5
|
|
|
(7)
|
|
|
Total non-operating
(income) expense, net
|
|
284
|
|
|
253
|
|
|
Income from
continuing operations before taxes
|
|
757
|
|
|
695
|
|
|
Federal and foreign
income taxes
|
|
133
|
|
|
198
|
|
|
Income from
continuing operations
|
|
624
|
|
|
497
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(1)
|
|
|
3
|
|
|
Net income
|
|
623
|
|
|
500
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests in
subsidiaries
|
|
(10)
|
|
|
(6)
|
|
|
Net income
attributable to Raytheon Company
|
|
$
|
633
|
|
|
$
|
506
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
2.20
|
|
|
$
|
1.73
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.01
|
|
|
Net income
|
|
2.20
|
|
|
1.74
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to Raytheon Company common
stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
2.20
|
|
|
$
|
1.73
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
0.01
|
|
|
Net income
|
|
2.19
|
|
|
1.74
|
|
|
|
|
|
|
|
|
Amounts attributable
to Raytheon Company common stockholders:
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
634
|
|
|
$
|
503
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(1)
|
|
|
3
|
|
|
Net income
|
|
$
|
633
|
|
|
$
|
506
|
|
|
|
|
|
|
|
|
Average shares
outstanding
|
|
|
|
|
|
Basic
|
|
288.5
|
|
|
292.5
|
|
|
Diluted
|
|
288.8
|
|
|
292.8
|
|
|
Attachment
B
Raytheon
Company
Preliminary Segment
Information
First Quarter
2018
(In millions, except
percentages)
|
|
|
|
Net Sales
|
|
Operating
Income
|
|
Operating
Income As a Percent of Net
Sales
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
1-Apr-18
|
|
2-Apr-17
|
|
1-Apr-18
|
|
2-Apr-17
|
|
1-Apr-18
|
|
2-Apr-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
$
|
1,489
|
|
|
$
|
1,398
|
|
|
$
|
273
|
|
|
$
|
212
|
|
|
18.3%
|
|
15.2%
|
|
Intelligence,
Information and Services
|
|
1,582
|
|
|
1,507
|
|
|
117
|
|
|
111
|
|
|
7.4%
|
|
7.4%
|
|
Missile
Systems
|
|
1,848
|
|
|
1,756
|
|
|
212
|
|
|
216
|
|
|
11.5%
|
|
12.3%
|
|
Space and Airborne
Systems
|
|
1,568
|
|
|
1,555
|
|
|
193
|
|
|
190
|
|
|
12.3%
|
|
12.2%
|
|
Forcepoint
|
|
141
|
|
|
144
|
|
|
(7)
|
|
|
16
|
|
|
(5.0)%
|
|
11.1%
|
|
Eliminations
|
|
(357)
|
|
|
(350)
|
|
|
(40)
|
|
|
(37)
|
|
|
|
|
|
|
Total business
segment
|
|
6,271
|
|
|
6,010
|
|
|
748
|
|
|
708
|
|
|
11.9%
|
|
11.8%
|
|
Acquisition
Accounting Adjustments
|
|
(4)
|
|
|
(10)
|
|
|
(33)
|
|
|
(42)
|
|
|
|
|
|
|
FAS/CAS Operating
Adjustment
|
|
—
|
|
|
—
|
|
|
354
|
|
|
315
|
|
|
|
|
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
(28)
|
|
|
(33)
|
|
|
|
|
|
|
Total
|
|
$
|
6,267
|
|
|
$
|
6,000
|
|
|
$
|
1,041
|
|
|
$
|
948
|
|
|
16.6%
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
C
Raytheon
Company
Other Preliminary
Information
First Quarter
2018
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
1-Apr-18
|
|
31-Dec-17
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Defense
Systems
|
|
|
|
$
|
10,160
|
|
|
$
|
9,186
|
|
|
|
Intelligence,
Information and Services
|
|
|
6,079
|
|
|
6,503
|
|
|
|
Missile
Systems
|
|
|
|
13,037
|
|
|
13,426
|
|
|
|
Space and Airborne
Systems
|
|
|
|
8,414
|
|
|
8,611
|
|
|
|
Forcepoint
|
|
|
|
449
|
|
|
484
|
|
|
|
Total
backlog
|
|
|
|
$
|
38,139
|
|
|
$
|
38,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Bookings
|
|
|
|
1-Apr-18
|
|
2-Apr-17
|
|
|
|
|
|
|
|
|
|
|
|
Total
bookings
|
|
|
|
$
|
6,311
|
|
|
$
|
5,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
General and
Administrative Expenses
|
|
|
|
1-Apr-18
|
|
2-Apr-17
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and
selling expenses
|
|
|
$
|
528
|
|
|
$
|
523
|
|
|
|
Research and
development expenses
|
|
|
166
|
|
|
163
|
|
|
|
Total general and
administrative expenses
|
|
|
$
|
694
|
|
|
$
|
686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
|
1-Apr-18
|
|
31-Dec-17
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
2,748
|
|
|
$
|
3,103
|
|
|
|
Restricted
cash
|
|
21
|
|
|
12
|
|
|
|
Total cash, cash
equivalents and restricted cash shown in Attachment E
|
|
$
|
2,769
|
|
|
$
|
3,115
|
|
|
|
Attachment
D
Raytheon
Company
Preliminary Balance
Sheet Information
First Quarter
2018
(In
millions)
|
|
|
|
|
|
|
|
|
|
1-Apr-18
|
|
31-Dec-17
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,748
|
|
|
$
|
3,103
|
|
|
|
Short-term
investments
|
—
|
|
|
297
|
|
|
|
Receivables,
net
|
1,639
|
|
|
1,324
|
|
|
|
Contract
assets
|
5,444
|
|
|
5,247
|
|
|
|
Inventories
|
640
|
|
|
594
|
|
|
|
Prepaid expenses and
other current assets
|
489
|
|
|
761
|
|
|
|
Total current
assets
|
10,960
|
|
|
11,326
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,478
|
|
|
2,439
|
|
|
|
Goodwill
|
14,871
|
|
|
14,871
|
|
|
|
Other assets,
net
|
2,188
|
|
|
2,224
|
|
|
|
Total
assets
|
$
|
30,497
|
|
|
$
|
30,860
|
|
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Commercial
paper
|
$
|
300
|
|
|
$
|
300
|
|
|
|
Contract
liabilities
|
2,949
|
|
|
2,927
|
|
|
|
Accounts
payable
|
1,255
|
|
|
1,519
|
|
|
|
Accrued employee
compensation
|
921
|
|
|
1,342
|
|
|
|
Other current
liabilities
|
1,354
|
|
|
1,260
|
|
|
|
Total current
liabilities
|
6,779
|
|
|
7,348
|
|
|
|
|
|
|
|
|
|
Accrued retiree
benefits and other long-term liabilities
|
8,238
|
|
|
8,287
|
|
|
|
Long-term
debt
|
4,751
|
|
|
4,750
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
492
|
|
|
512
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Raytheon Company
stockholders' equity
|
|
|
|
|
|
Common
stock
|
3
|
|
|
3
|
|
|
|
Additional
paid-in capital
|
—
|
|
|
—
|
|
|
|
Accumulated
other comprehensive loss(1)
|
(9,095)
|
|
|
(7,935)
|
|
|
|
Retained
earnings(1)
|
19,329
|
|
|
17,895
|
|
|
|
Total Raytheon Company
stockholders' equity
|
10,237
|
|
|
9,963
|
|
|
|
Noncontrolling
interests in subsidiaries
|
—
|
|
|
—
|
|
|
|
Total
equity
|
10,237
|
|
|
9,963
|
|
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
30,497
|
|
|
$
|
30,860
|
|
|
|
|
|
(1)
|
In the first quarter
2018 we adopted ASU 2018-02, Income Statement - Reporting
Comprehensive Income (Topic 220): Reclassification of Certain Tax
Effects from Accumulated Other Comprehensive Income. As a
result, we reclassified $1,451 million from accumulated other
comprehensive loss to retained earnings related to the
reclassification of stranded income tax effects of the Tax Cuts and
Jobs Act of 2017.
|
Attachment
E
Raytheon
Company
Preliminary Cash Flow
Information
First Quarter
2018
(In
millions)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
1-Apr-18
|
|
2-Apr-17
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
|
$
|
623
|
|
|
$
|
500
|
|
|
|
|
(Income) loss from
discontinued operations, net of tax
|
1
|
|
|
(3)
|
|
|
|
|
Income from
continuing operations
|
624
|
|
|
497
|
|
|
|
|
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
|
135
|
|
|
130
|
|
|
|
|
Stock-based
compensation
|
63
|
|
|
57
|
|
|
|
|
Deferred
income taxes
|
(77)
|
|
|
(54)
|
|
|
|
|
Changes in
assets and liabilities
|
|
|
|
|
|
|
Receivables,
net
|
(314)
|
|
|
(155)
|
|
|
|
|
Contract assets and
contract liabilities
|
(174)
|
|
|
(554)
|
|
|
|
|
Inventories
|
(46)
|
|
|
9
|
|
|
|
|
Prepaid expenses and
other current assets
|
138
|
|
|
125
|
|
|
|
|
Income taxes
receivable/payable
|
290
|
|
|
244
|
|
|
|
|
Accounts
payable
|
(167)
|
|
|
(219)
|
|
|
|
|
Accrued employee
compensation
|
(420)
|
|
|
(361)
|
|
|
|
|
Other current
liabilities
|
(60)
|
|
|
(1)
|
|
|
|
|
Accrued retiree
benefits
|
306
|
|
|
283
|
|
|
|
|
Other,
net
|
(15)
|
|
|
(42)
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
283
|
|
|
(41)
|
|
|
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
1
|
|
|
—
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
284
|
|
|
(41)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
(219)
|
|
|
(86)
|
|
|
|
|
Proceeds from sales
of property, plant and equipment
|
—
|
|
|
11
|
|
|
|
|
Additions to
capitalized internal use software
|
(12)
|
|
|
(16)
|
|
|
|
|
Purchases of
short-term investments
|
—
|
|
|
(399)
|
|
|
|
|
Maturities of
short-term investments
|
309
|
|
|
100
|
|
|
|
|
Payments for
purchases of acquired companies, net of cash received
|
—
|
|
|
(39)
|
|
|
|
|
Other
|
(1)
|
|
|
(1)
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
77
|
|
|
(430)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Dividends
paid
|
(230)
|
|
|
(215)
|
|
|
|
|
Net borrowings
(payments) on commercial paper
|
—
|
|
|
—
|
|
|
|
|
Repurchases of common
stock under share repurchase programs
|
(400)
|
|
|
(400)
|
|
|
|
|
Repurchases of common
stock to satisfy tax withholding obligations
|
(72)
|
|
|
(38)
|
|
|
|
|
Contribution from
noncontrolling interests in Forcepoint
|
—
|
|
|
8
|
|
|
|
|
Other
|
(5)
|
|
|
—
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
(707)
|
|
|
(645)
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(346)
|
|
|
(1,116)
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of the year
|
3,115
|
|
|
3,303
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
2,769
|
|
|
$
|
2,187
|
|
|
|
|
Raytheon Company
Global Headquarters
Waltham, Mass.
Investor Relations Contact
Kelsey DeBriyn
781.522.5141
Media Contact
Corinne Kovalsky
781.522.5899
View original content with
multimedia:http://www.prnewswire.com/news-releases/raytheon-reports-strong-first-quarter-2018-results-300636673.html
SOURCE Raytheon Company