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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Raytheon Co | NYSE:RTN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 116.96 | 0 | 01:00:00 |
FORM 10-Q
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended April 2, 2017
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
to
|
Delaware
|
|
95-1778500
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
|
ý
|
|
Accelerated filer
|
|
o
|
Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
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|
Smaller reporting company
|
|
o
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|
|
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Emerging growth company
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|
o
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Page
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PART I
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 1.
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||
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Item 1A.
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||
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Item 2.
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Item 6.
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(In millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Assets
|
|
|
|
|
||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,186
|
|
|
$
|
3,303
|
|
Short-term investments
|
|
399
|
|
|
100
|
|
||
Receivables, net
|
|
1,319
|
|
|
1,163
|
|
||
Contract assets
|
|
5,555
|
|
|
5,041
|
|
||
Inventories
|
|
599
|
|
|
608
|
|
||
Prepaid expenses and other current assets
|
|
457
|
|
|
670
|
|
||
Total current assets
|
|
10,515
|
|
|
10,885
|
|
||
Property, plant and equipment, net
|
|
2,146
|
|
|
2,166
|
|
||
Goodwill
|
|
14,825
|
|
|
14,788
|
|
||
Other assets, net
|
|
2,383
|
|
|
2,399
|
|
||
Total assets
|
|
$
|
29,869
|
|
|
$
|
30,238
|
|
|
|
|
|
|
||||
Liabilities, Redeemable Noncontrolling Interest and Equity
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Notes payable and current portion of long-term debt
|
|
$
|
251
|
|
|
$
|
—
|
|
Contract liabilities
|
|
2,605
|
|
|
2,646
|
|
||
Accounts payable
|
|
1,282
|
|
|
1,520
|
|
||
Accrued employee compensation
|
|
871
|
|
|
1,234
|
|
||
Other current liabilities
|
|
1,298
|
|
|
1,139
|
|
||
Total current liabilities
|
|
6,307
|
|
|
6,539
|
|
||
Accrued retiree benefits and other long-term liabilities
|
|
7,743
|
|
|
7,758
|
|
||
Long-term debt
|
|
5,086
|
|
|
5,335
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|
|||
|
|
|
|
|
||||
Redeemable noncontrolling interest (Note 8)
|
|
349
|
|
|
449
|
|
||
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Raytheon Company stockholders’ equity
|
|
|
|
|
||||
Common stock, par value, $0.01 per share, 1,450 shares authorized, 291 and 293 shares outstanding at April 2, 2017 and December 31, 2016, respectively
|
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
|
—
|
|
|
—
|
|
||
Accumulated other comprehensive loss
|
|
(7,218
|
)
|
|
(7,411
|
)
|
||
Retained earnings
|
|
17,599
|
|
|
17,565
|
|
||
Total Raytheon Company stockholders’ equity
|
|
10,384
|
|
|
10,157
|
|
||
Noncontrolling interests in subsidiaries
|
|
—
|
|
|
—
|
|
||
Total equity
|
|
10,384
|
|
|
10,157
|
|
||
Total liabilities, redeemable noncontrolling interest and equity
|
|
$
|
29,869
|
|
|
$
|
30,238
|
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Net sales
|
|
|
|
|
||||
Products
|
|
$
|
5,044
|
|
|
$
|
4,826
|
|
Services
|
|
956
|
|
|
976
|
|
||
Total net sales
|
|
6,000
|
|
|
5,802
|
|
||
Operating expenses
|
|
|
|
|
||||
Cost of sales—products
|
|
3,756
|
|
|
3,639
|
|
||
Cost of sales—services
|
|
774
|
|
|
802
|
|
||
General and administrative expenses
|
|
729
|
|
|
748
|
|
||
Total operating expenses
|
|
5,259
|
|
|
5,189
|
|
||
Operating income
|
|
741
|
|
|
613
|
|
||
Non-operating (income) expense, net
|
|
|
|
|
||||
Interest expense
|
|
58
|
|
|
58
|
|
||
Interest income
|
|
(5
|
)
|
|
(4
|
)
|
||
Other (income) expense, net
|
|
(7
|
)
|
|
(2
|
)
|
||
Total non-operating (income) expense, net
|
|
46
|
|
|
52
|
|
||
Income from continuing operations before taxes
|
|
695
|
|
|
561
|
|
||
Federal and foreign income taxes
|
|
198
|
|
|
157
|
|
||
Income from continuing operations
|
|
497
|
|
|
404
|
|
||
Income (loss) from discontinued operations, net of tax
|
|
3
|
|
|
1
|
|
||
Net income
|
|
500
|
|
|
405
|
|
||
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries
|
|
(6
|
)
|
|
(23
|
)
|
||
Net income attributable to Raytheon Company
|
|
$
|
506
|
|
|
$
|
428
|
|
|
|
|
|
|
||||
Basic earnings per share attributable to Raytheon Company common stockholders:
|
|
|
|
|
||||
Income from continuing operations
|
|
$
|
1.73
|
|
|
$
|
1.43
|
|
Income (loss) from discontinued operations, net of tax
|
|
0.01
|
|
|
—
|
|
||
Net income
|
|
1.74
|
|
|
1.43
|
|
||
Diluted earnings per share attributable to Raytheon Company common stockholders:
|
|
|
|
|
||||
Income from continuing operations
|
|
$
|
1.73
|
|
|
$
|
1.43
|
|
Income (loss) from discontinued operations, net of tax
|
|
0.01
|
|
|
—
|
|
||
Net income
|
|
1.74
|
|
|
1.43
|
|
||
Amounts attributable to Raytheon Company common stockholders:
|
|
|
|
|
||||
Income from continuing operations
|
|
$
|
503
|
|
|
$
|
427
|
|
Income (loss) from discontinued operations, net of tax
|
|
3
|
|
|
1
|
|
||
Net income
|
|
$
|
506
|
|
|
$
|
428
|
|
|
|
|
|
|
||||
Dividends declared per share
|
|
$
|
0.7975
|
|
|
$
|
0.7325
|
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
|
Apr 3, 2016
|
|
||
Net income
|
$
|
500
|
|
|
$
|
405
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
||||
Pension and other postretirement benefit plans, net:
|
|
|
|
||||
Amortization of prior service cost included in net periodic cost
|
1
|
|
|
1
|
|
||
Amortization of net actuarial loss included in net income
|
281
|
|
|
246
|
|
||
Pension and other postretirement benefit plans, net
|
282
|
|
|
247
|
|
||
Foreign exchange translation
|
11
|
|
|
(33
|
)
|
||
Cash flow hedges
|
(2
|
)
|
|
4
|
|
||
Unrealized gains (losses) on investments and other, net
|
—
|
|
|
2
|
|
||
Other comprehensive income (loss), before tax
|
291
|
|
|
220
|
|
||
Income tax benefit (expense) related to items of other comprehensive income (loss)
|
(98
|
)
|
|
(94
|
)
|
||
Other comprehensive income (loss), net of tax
|
193
|
|
|
126
|
|
||
Total comprehensive income
|
693
|
|
|
531
|
|
||
Less: Comprehensive income (loss) attributable to noncontrolling interests in subsidiaries
|
(6
|
)
|
|
(23
|
)
|
||
Comprehensive income attributable to Raytheon Company
|
$
|
699
|
|
|
$
|
554
|
|
Three Months Ended April 2, 2017 and
April 3, 2016 (in millions) |
|
Common stock
|
|
|
Additional paid-in capital
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
Retained earnings
|
|
|
Total Raytheon Company stockholders’ equity
|
|
|
Noncontrolling interests in subsidiaries
(1)
|
|
|
Total equity
|
|
|||||||
Balance at December 31, 2016
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(7,411
|
)
|
|
$
|
17,565
|
|
|
$
|
10,157
|
|
|
$
|
—
|
|
|
$
|
10,157
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
506
|
|
|
506
|
|
|
|
|
506
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
193
|
|
|
|
|
193
|
|
|
|
|
193
|
|
|||||||||||
Adjustment of redeemable noncontrolling interest to redemption value
|
|
|
|
|
|
|
|
139
|
|
|
139
|
|
|
|
|
139
|
|
|||||||||||
Distributions and other activity related to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Dividends declared
|
|
|
|
1
|
|
|
|
|
(232
|
)
|
|
(231
|
)
|
|
|
|
(231
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
58
|
|
|
|
|
|
|
58
|
|
|
|
|
58
|
|
|||||||||||
Share repurchases
|
|
|
|
(59
|
)
|
|
|
|
(379
|
)
|
|
(438
|
)
|
|
|
|
(438
|
)
|
||||||||||
Balance at April 2, 2017
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(7,218
|
)
|
|
$
|
17,599
|
|
|
$
|
10,384
|
|
|
$
|
—
|
|
|
$
|
10,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2015
|
|
$
|
3
|
|
|
$
|
398
|
|
|
$
|
(7,176
|
)
|
|
$
|
16,956
|
|
|
$
|
10,181
|
|
|
$
|
202
|
|
|
$
|
10,383
|
|
Net income (loss)
|
|
|
|
|
|
|
|
428
|
|
|
428
|
|
|
(17
|
)
|
|
411
|
|
||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
126
|
|
|
|
|
126
|
|
|
|
|
126
|
|
|||||||||||
Adjustment of redeemable noncontrolling interest to carrying value
|
|
|
|
|
|
|
|
25
|
|
|
25
|
|
|
|
|
25
|
|
|||||||||||
Distributions and other activity related to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Dividends declared
|
|
|
|
2
|
|
|
|
|
(220
|
)
|
|
(218
|
)
|
|
|
|
(218
|
)
|
||||||||||
Common stock plans activity
|
|
|
|
64
|
|
|
|
|
|
|
64
|
|
|
|
|
64
|
|
|||||||||||
Share repurchases
|
|
|
|
(434
|
)
|
|
|
|
|
|
(434
|
)
|
|
|
|
(434
|
)
|
|||||||||||
Balance at April 3, 2016
|
|
$
|
3
|
|
|
$
|
30
|
|
|
$
|
(7,050
|
)
|
|
$
|
17,189
|
|
|
$
|
10,172
|
|
|
$
|
186
|
|
|
$
|
10,358
|
|
(1)
|
Excludes redeemable noncontrolling interest which is not considered equity. See "Note 8: Forcepoint Joint Venture" for additional information.
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
500
|
|
|
$
|
405
|
|
(Income) loss from discontinued operations, net of tax
|
|
(3
|
)
|
|
(1
|
)
|
||
Income from continuing operations
|
|
497
|
|
|
404
|
|
||
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
|
|
130
|
|
|
124
|
|
||
Stock-based compensation
|
|
57
|
|
|
54
|
|
||
Deferred income taxes
|
|
(54
|
)
|
|
(30
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
||||
Receivables, net
|
|
(155
|
)
|
|
(94
|
)
|
||
Contract assets and contract liabilities
|
|
(554
|
)
|
|
(295
|
)
|
||
Inventories
|
|
9
|
|
|
41
|
|
||
Prepaid expenses and other current assets
|
|
125
|
|
|
143
|
|
||
Income taxes receivable/payable
|
|
244
|
|
|
189
|
|
||
Accounts payable
|
|
(219
|
)
|
|
(43
|
)
|
||
Accrued employee compensation
|
|
(361
|
)
|
|
(351
|
)
|
||
Other current liabilities
|
|
(1
|
)
|
|
(43
|
)
|
||
Accrued retiree benefits
|
|
283
|
|
|
221
|
|
||
Other, net
|
|
(42
|
)
|
|
5
|
|
||
Net cash provided by (used in) operating activities from continuing operations
|
|
(41
|
)
|
|
325
|
|
||
Net cash provided by (used in) operating activities from discontinued operations
|
|
—
|
|
|
1
|
|
||
Net cash provided by (used in) operating activities
|
|
(41
|
)
|
|
326
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Additions to property, plant and equipment
|
|
(86
|
)
|
|
(150
|
)
|
||
Proceeds from sales of property, plant and equipment
|
|
11
|
|
|
1
|
|
||
Additions to capitalized internal use software
|
|
(16
|
)
|
|
(12
|
)
|
||
Purchases of short-term investments
|
|
(399
|
)
|
|
—
|
|
||
Maturities of short-term investments
|
|
100
|
|
|
127
|
|
||
Payments for purchases of acquired companies, net of cash received
|
|
(39
|
)
|
|
(57
|
)
|
||
Other
|
|
(1
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
|
(430
|
)
|
|
(91
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Dividends paid
|
|
(215
|
)
|
|
(201
|
)
|
||
Repurchases of common stock under share repurchase programs
|
|
(400
|
)
|
|
(400
|
)
|
||
Repurchases of common stock to satisfy tax withholding obligations
|
|
(38
|
)
|
|
(34
|
)
|
||
Contribution from noncontrolling interest in Forcepoint
|
|
8
|
|
|
11
|
|
||
Other
|
|
—
|
|
|
(5
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(645
|
)
|
|
(629
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
(1,116
|
)
|
|
(394
|
)
|
||
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
|
|
$
|
2,187
|
|
|
$
|
1,934
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||
(In millions, except per share amounts)
|
Dec 31, 2016
|
|
|
Oct 2, 2016
|
|
|
Jul 3, 2016
|
|
|
Apr 3, 2016
|
|
|
Dec 31, 2016
|
|
|
Dec 31, 2015
|
|
||||||
Income from continuing operations after taxes
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
40
|
|
Net income
|
12
|
|
|
18
|
|
|
9
|
|
|
—
|
|
|
39
|
|
|
40
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations after taxes
|
$
|
0.04
|
|
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
0.12
|
|
Net income
|
0.04
|
|
|
0.05
|
|
|
0.02
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
||||||
Diluted EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations after taxes
|
$
|
0.03
|
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
Net income
|
0.04
|
|
|
0.05
|
|
|
0.03
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Cash and cash equivalents
|
|
$
|
2,186
|
|
|
$
|
3,303
|
|
Restricted cash included within prepaid expenses and other current assets
|
|
1
|
|
|
—
|
|
||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows
|
|
$
|
2,187
|
|
|
$
|
3,303
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Operating income
|
$
|
54
|
|
|
$
|
21
|
|
Income from continuing operations attributable to Raytheon Company
|
35
|
|
|
25
|
|
||
Diluted EPS from continuing operations attributable to Raytheon Company
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
|
Three Months Ended
|
||||||
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Basic EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
||||
Distributed earnings
|
|
$
|
0.80
|
|
|
$
|
0.73
|
|
Undistributed earnings
|
|
0.93
|
|
|
0.70
|
|
||
Total
|
|
$
|
1.73
|
|
|
$
|
1.43
|
|
Diluted EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
||||
Distributed earnings
|
|
$
|
0.80
|
|
|
$
|
0.73
|
|
Undistributed earnings
|
|
0.93
|
|
|
0.70
|
|
||
Total
|
|
$
|
1.73
|
|
|
$
|
1.43
|
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Income from continuing operations attributable to participating securities
|
$
|
7
|
|
|
$
|
7
|
|
Income from discontinued operations, net of tax attributable to participating securities
(1)
|
—
|
|
|
—
|
|
||
Net income attributable to participating securities
|
$
|
7
|
|
|
$
|
7
|
|
(1)
|
Income from discontinued operations, net of tax attributable to participating securities was
income of less than $1 million for the
first quarters of 2017 and 2016
.
|
|
Three Months Ended
|
||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||
Shares for basic EPS
(1)
|
292.5
|
|
|
299.2
|
|
Dilutive effect of LTPP and RSUs
|
0.3
|
|
|
0.4
|
|
Shares for diluted EPS
|
292.8
|
|
|
299.6
|
|
(1)
|
Includes
4.1 million
and
4.8 million
participating securities for the
three
months ended
April 2, 2017
and
April 3, 2016
, respectively.
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Materials and purchased parts
|
|
$
|
67
|
|
|
$
|
66
|
|
Work in process
|
|
520
|
|
|
532
|
|
||
Finished goods
|
|
12
|
|
|
10
|
|
||
Total
|
|
$
|
599
|
|
|
$
|
608
|
|
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
|
$ change
|
|
% change
|
|||||||
Contract assets
|
|
$
|
5,555
|
|
|
$
|
5,041
|
|
|
$
|
514
|
|
|
10.2
|
%
|
Contract liabilities—current
|
|
(2,605
|
)
|
|
(2,646
|
)
|
|
41
|
|
|
(1.5
|
)%
|
|||
Contract liabilities—noncurrent
|
|
(117
|
)
|
|
(128
|
)
|
|
11
|
|
|
(8.6
|
)%
|
|||
Net contract assets (liabilities)
|
|
$
|
2,833
|
|
|
$
|
2,267
|
|
|
$
|
566
|
|
|
25.0
|
%
|
(In millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
(1)
|
|
|
Total
|
|
||||||
Balance at December 31, 2016
|
|
$
|
1,702
|
|
|
$
|
2,966
|
|
|
$
|
4,154
|
|
|
$
|
4,106
|
|
|
$
|
1,860
|
|
|
$
|
14,788
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
36
|
|
||||||
Effect of foreign exchange rates and other
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Balance at April 2, 2017
|
|
$
|
1,703
|
|
|
$
|
2,966
|
|
|
$
|
4,154
|
|
|
$
|
4,106
|
|
|
$
|
1,896
|
|
|
$
|
14,825
|
|
(1)
|
At
April 2, 2017
, Forcepoint's fair value is estimated to exceed its net book value by approximately
$360 million
.
As discussed in "Note 8: Forcepoint Joint Venture", we are required to determine Forcepoint's fair value on a quarterly basis due to the accounting related to the redeemable noncontrolling interest.
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Beginning balance
|
|
$
|
449
|
|
|
$
|
355
|
|
Net income (loss)
|
|
(6
|
)
|
|
(6
|
)
|
||
Other comprehensive income (loss), net of tax
(1)
|
|
—
|
|
|
—
|
|
||
Contribution from noncontrolling interest
|
|
8
|
|
|
11
|
|
||
Adjustment of noncontrolling interest to redemption value
|
|
(102
|
)
|
|
—
|
|
||
Adjustment of noncontrolling interest to carrying value
|
|
—
|
|
|
(25
|
)
|
||
Ending balance
|
|
$
|
349
|
|
|
$
|
335
|
|
(1)
|
Other comprehensive income (loss), net of tax, was
income of less than
$1 million
for the
three
months ended
April 2, 2017
and a loss of less than
$1 million
for the three months ended
April 3, 2016
.
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Carrying value of long-term debt
(1)
|
|
$
|
5,337
|
|
|
$
|
5,335
|
|
Fair value of long-term debt
(2)
|
|
5,848
|
|
|
5,848
|
|
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Total remediation costs—undiscounted
|
|
$
|
216
|
|
|
$
|
219
|
|
Weighted average discount rate
|
|
5.2
|
%
|
|
5.2
|
%
|
||
Total remediation costs—discounted
|
|
$
|
153
|
|
|
$
|
147
|
|
Recoverable portion
|
|
96
|
|
|
92
|
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Guarantees
|
|
$
|
206
|
|
|
$
|
190
|
|
Letters of credit
|
|
2,420
|
|
|
2,345
|
|
||
Surety bonds
|
|
127
|
|
|
127
|
|
|
|
Three Months Ended
|
||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||
Beginning balance
|
|
292.8
|
|
|
299.0
|
|
Stock plans activity
|
|
1.1
|
|
|
1.4
|
|
Share repurchases
|
|
(2.9
|
)
|
|
(3.5
|
)
|
Ending balance
|
|
291.0
|
|
|
296.9
|
|
|
|
Three Months Ended
|
||||||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||||
|
|
$
|
Shares
|
|
|
$
|
Shares
|
|
||||
Shares repurchased under our share repurchase programs
|
|
$
|
400
|
|
2.7
|
|
|
$
|
400
|
|
3.2
|
|
Shares repurchased to satisfy tax withholding obligations
|
|
38
|
|
0.2
|
|
|
34
|
|
0.3
|
|
||
Total share repurchases
|
|
$
|
438
|
|
2.9
|
|
|
$
|
434
|
|
3.5
|
|
|
Pension and PRB plans, net
(1)
|
|
|
Foreign exchange translation
|
|
|
Cash flow hedges
(2)
|
|
|
Unrealized gains (losses) on investments and other, net
(3)
|
|
|
Total
|
|
|||||
|
|
|
|
|
|||||||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2016
|
$
|
(7,234
|
)
|
|
$
|
(175
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(7,411
|
)
|
Before tax amount
|
282
|
|
|
11
|
|
|
(2
|
)
|
|
—
|
|
|
291
|
|
|||||
Tax (expense) or benefit
|
(99
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(98
|
)
|
|||||
Net of tax amount
|
183
|
|
|
11
|
|
|
(1
|
)
|
|
—
|
|
|
193
|
|
|||||
Balance at April 2, 2017
|
$
|
(7,051
|
)
|
|
$
|
(164
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
(7,218
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2015
|
$
|
(7,088
|
)
|
|
$
|
(60
|
)
|
|
$
|
(16
|
)
|
|
$
|
(12
|
)
|
|
$
|
(7,176
|
)
|
Before tax amount
|
247
|
|
|
(33
|
)
|
|
4
|
|
|
2
|
|
|
220
|
|
|||||
Tax (expense) or benefit
|
(91
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(94
|
)
|
|||||
Net of tax amount
|
156
|
|
|
(33
|
)
|
|
2
|
|
|
1
|
|
|
126
|
|
|||||
Balance at April 3, 2016
|
$
|
(6,932
|
)
|
|
$
|
(93
|
)
|
|
$
|
(14
|
)
|
|
$
|
(11
|
)
|
|
$
|
(7,050
|
)
|
(1)
|
The pension and PRB plans, net, is shown net of tax benefits of
$3,782 million
and
$3,881 million
at
April 2, 2017
and
December 31, 2016
, respectively.
|
(2)
|
The cash flow hedges are shown net of tax benefits of
$2 million
and
$1 million
at
April 2, 2017
and
December 31, 2016
, respectively.
|
(3)
|
The unrealized gains (losses) on investments and other, net are shown net of tax expense of
$1 million
at
April 2, 2017
and
December 31, 2016
.
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Marketable securities held in trust
|
|
$
|
575
|
|
|
$
|
550
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Service cost
|
|
$
|
117
|
|
|
$
|
123
|
|
Interest cost
|
|
267
|
|
|
272
|
|
||
Expected return on plan assets
|
|
(345
|
)
|
|
(379
|
)
|
||
Amounts reflected in net funded status
|
|
39
|
|
|
16
|
|
||
Amortization of prior service cost included in net periodic pension expense
|
|
1
|
|
|
1
|
|
||
Recognized net actuarial loss
|
|
279
|
|
|
245
|
|
||
Loss due to settlements
|
|
—
|
|
|
3
|
|
||
Amounts reclassified during the period
|
|
280
|
|
|
249
|
|
||
Net periodic pension expense (income)
|
|
$
|
319
|
|
|
$
|
265
|
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Long-term pension liabilities
|
|
$
|
7,065
|
|
|
$
|
7,074
|
|
Long-term PRB liabilities
|
|
360
|
|
|
358
|
|
||
Total long-term pension and PRB liabilities
|
|
$
|
7,425
|
|
|
$
|
7,432
|
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Required pension contributions
|
$
|
37
|
|
|
$
|
43
|
|
PRB contributions
|
5
|
|
|
5
|
|
|
Three Months Ended
|
||||||
Total Net Sales
(in millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
$
|
1,398
|
|
|
$
|
1,336
|
|
Intelligence, Information and Services
|
1,507
|
|
|
1,532
|
|
||
Missile Systems
|
1,756
|
|
|
1,723
|
|
||
Space and Airborne Systems
|
1,555
|
|
|
1,445
|
|
||
Forcepoint
|
144
|
|
|
139
|
|
||
Eliminations
|
(350
|
)
|
|
(347
|
)
|
||
Total business segment sales
|
6,010
|
|
|
5,828
|
|
||
Acquisition Accounting Adjustments
|
(10
|
)
|
|
(26
|
)
|
||
Total
|
$
|
6,000
|
|
|
$
|
5,802
|
|
|
|
Three Months Ended
|
||||||
Intersegment Sales
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
15
|
|
|
$
|
17
|
|
Intelligence, Information and Services
|
|
177
|
|
|
167
|
|
||
Missile Systems
|
|
28
|
|
|
35
|
|
||
Space and Airborne Systems
|
|
126
|
|
|
125
|
|
||
Forcepoint
|
|
4
|
|
|
3
|
|
||
Total
|
|
$
|
350
|
|
|
$
|
347
|
|
|
|
Three Months Ended
|
||||||
Operating Income
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
212
|
|
|
$
|
146
|
|
Intelligence, Information and Services
|
|
111
|
|
|
104
|
|
||
Missile Systems
|
|
216
|
|
|
192
|
|
||
Space and Airborne Systems
|
|
190
|
|
|
167
|
|
||
Forcepoint
|
|
16
|
|
|
18
|
|
||
Eliminations
|
|
(37
|
)
|
|
(33
|
)
|
||
Total business segment operating income
|
|
708
|
|
|
594
|
|
||
Acquisition Accounting Adjustments
|
|
(42
|
)
|
|
(58
|
)
|
||
FAS/CAS Adjustment
|
|
108
|
|
|
105
|
|
||
Corporate
|
|
(33
|
)
|
|
(28
|
)
|
||
Total
|
|
$
|
741
|
|
|
$
|
613
|
|
|
|
Three Months Ended
|
||||||
Intersegment Operating Income
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
1
|
|
|
$
|
—
|
|
Intelligence, Information and Services
|
|
17
|
|
|
16
|
|
||
Missile Systems
|
|
3
|
|
|
3
|
|
||
Space and Airborne Systems
|
|
13
|
|
|
12
|
|
||
Forcepoint
|
|
3
|
|
|
2
|
|
||
Total
|
|
$
|
37
|
|
|
$
|
33
|
|
|
|
Three Months Ended
|
||||||
FAS/CAS Adjustment Income (Expense)
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
FAS/CAS Pension Adjustment
|
|
$
|
109
|
|
|
$
|
105
|
|
FAS/CAS PRB Adjustment
|
|
(1
|
)
|
|
—
|
|
||
FAS/CAS Adjustment
|
|
$
|
108
|
|
|
$
|
105
|
|
Total Assets
(in millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Integrated Defense Systems
(1)
|
|
$
|
4,782
|
|
|
$
|
4,573
|
|
Intelligence, Information and Services
(1)
|
|
4,323
|
|
|
4,315
|
|
||
Missile Systems
(1)
|
|
7,456
|
|
|
6,970
|
|
||
Space and Airborne Systems
(1)
|
|
6,553
|
|
|
6,564
|
|
||
Forcepoint
(1)
|
|
2,520
|
|
|
2,548
|
|
||
Corporate
|
|
4,235
|
|
|
5,268
|
|
||
Total
|
|
$
|
29,869
|
|
|
$
|
30,238
|
|
(1)
|
Total assets includes intangible assets.
Related amortization expense is included in Acquisition Accounting Adjustments.
|
|
|
Three Months Ended April 2, 2017
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
185
|
|
|
$
|
263
|
|
|
$
|
604
|
|
|
$
|
531
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
1,605
|
|
Cost-type contracts
|
|
370
|
|
|
861
|
|
|
483
|
|
|
662
|
|
|
3
|
|
|
—
|
|
|
2,379
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
2
|
|
|
26
|
|
|
—
|
|
|
7
|
|
|
53
|
|
|
—
|
|
|
88
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
44
|
|
|
43
|
|
|
71
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|||||||
Cost-type contracts
|
|
34
|
|
|
17
|
|
|
17
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
158
|
|
|
37
|
|
|
47
|
|
|
74
|
|
|
12
|
|
|
—
|
|
|
328
|
|
|||||||
Cost-type contracts
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
269
|
|
|
5
|
|
|
104
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
418
|
|
|||||||
Cost-type contracts
|
|
38
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
223
|
|
|
6
|
|
|
233
|
|
|
52
|
|
|
6
|
|
|
—
|
|
|
520
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
—
|
|
|
2
|
|
|
26
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||||
Cost-type contracts
|
|
5
|
|
|
—
|
|
|
17
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
11
|
|
|
54
|
|
|
119
|
|
|
33
|
|
|
34
|
|
|
—
|
|
|
251
|
|
|||||||
Cost-type contracts
|
|
5
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||||
Total net sales
|
|
1,383
|
|
|
1,330
|
|
|
1,728
|
|
|
1,429
|
|
|
130
|
|
|
—
|
|
|
6,000
|
|
|||||||
Intersegment sales
|
|
15
|
|
|
177
|
|
|
28
|
|
|
126
|
|
|
4
|
|
|
(350
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(10
|
)
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
1,398
|
|
|
$
|
1,507
|
|
|
$
|
1,756
|
|
|
$
|
1,555
|
|
|
$
|
144
|
|
|
$
|
(360
|
)
|
|
$
|
6,000
|
|
|
|
Three Months Ended April 2, 2017
|
||||||||||||||||||||||
Total Net Sales by Geographic Areas
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
557
|
|
|
$
|
1,160
|
|
|
$
|
1,087
|
|
|
$
|
1,200
|
|
|
$
|
78
|
|
|
$
|
4,082
|
|
Asia/Pacific
|
|
275
|
|
|
97
|
|
|
135
|
|
|
94
|
|
|
12
|
|
|
613
|
|
||||||
Middle East and North Africa
|
|
530
|
|
|
11
|
|
|
343
|
|
|
92
|
|
|
6
|
|
|
982
|
|
||||||
All other (principally Europe)
|
|
21
|
|
|
62
|
|
|
163
|
|
|
43
|
|
|
34
|
|
|
323
|
|
||||||
Total net sales
|
|
$
|
1,383
|
|
|
$
|
1,330
|
|
|
$
|
1,728
|
|
|
$
|
1,429
|
|
|
$
|
130
|
|
|
$
|
6,000
|
|
|
|
Three Months Ended April 2, 2017
|
||||||||||||||||||||||
Total Net Sales by Major Customers
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government
(1)
|
|
$
|
555
|
|
|
$
|
1,124
|
|
|
$
|
1,087
|
|
|
$
|
1,193
|
|
|
$
|
25
|
|
|
$
|
3,984
|
|
U.S. direct commercial sales and other
|
|
2
|
|
|
36
|
|
|
—
|
|
|
7
|
|
|
53
|
|
|
98
|
|
||||||
Foreign military sales through the U.S. government
|
|
390
|
|
|
67
|
|
|
241
|
|
|
70
|
|
|
—
|
|
|
768
|
|
||||||
Foreign direct commercial sales and other
(1)
|
|
436
|
|
|
103
|
|
|
400
|
|
|
159
|
|
|
52
|
|
|
1,150
|
|
||||||
Total net sales
|
|
$
|
1,383
|
|
|
$
|
1,330
|
|
|
$
|
1,728
|
|
|
$
|
1,429
|
|
|
$
|
130
|
|
|
$
|
6,000
|
|
|
|
Three Months Ended April 2, 2017
|
||||||||||||||||||||||
Total Net Sales by Contract Type
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
892
|
|
|
$
|
436
|
|
|
$
|
1,204
|
|
|
$
|
763
|
|
|
$
|
127
|
|
|
$
|
3,422
|
|
Cost-type contracts
|
|
491
|
|
|
894
|
|
|
524
|
|
|
666
|
|
|
3
|
|
|
2,578
|
|
||||||
Total net sales
|
|
$
|
1,383
|
|
|
$
|
1,330
|
|
|
$
|
1,728
|
|
|
$
|
1,429
|
|
|
$
|
130
|
|
|
$
|
6,000
|
|
|
|
Three Months Ended April 3, 2016
|
||||||||||||||||||||||||||
Disaggregation of Total Net Sales
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Other
|
|
|
Total
|
|
|||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales to the U.S. government
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
$
|
179
|
|
|
$
|
268
|
|
|
$
|
649
|
|
|
$
|
529
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
1,644
|
|
Cost-type contracts
|
|
377
|
|
|
855
|
|
|
479
|
|
|
545
|
|
|
4
|
|
|
—
|
|
|
2,260
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
6
|
|
|
39
|
|
|
—
|
|
|
10
|
|
|
45
|
|
|
—
|
|
|
100
|
|
|||||||
Cost-type contracts
|
|
1
|
|
|
12
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||||
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
19
|
|
|
42
|
|
|
80
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|||||||
Cost-type contracts
|
|
29
|
|
|
2
|
|
|
13
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
120
|
|
|
34
|
|
|
36
|
|
|
55
|
|
|
11
|
|
|
—
|
|
|
256
|
|
|||||||
Cost-type contracts
|
|
45
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||||
Middle East and North Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
190
|
|
|
8
|
|
|
100
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
340
|
|
|||||||
Cost-type contracts
|
|
49
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
246
|
|
|
7
|
|
|
177
|
|
|
56
|
|
|
3
|
|
|
—
|
|
|
489
|
|
|||||||
Cost-type contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
All other (principally Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign military sales through the U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
7
|
|
|
1
|
|
|
34
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|||||||
Cost-type contracts
|
|
7
|
|
|
—
|
|
|
21
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|||||||
Direct commercial sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed-price contracts
|
|
39
|
|
|
88
|
|
|
89
|
|
|
34
|
|
|
28
|
|
|
—
|
|
|
278
|
|
|||||||
Cost-type contracts
|
|
5
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||||
Total net sales
|
|
1,319
|
|
|
1,365
|
|
|
1,688
|
|
|
1,320
|
|
|
110
|
|
|
—
|
|
|
5,802
|
|
|||||||
Intersegment sales
|
|
17
|
|
|
167
|
|
|
35
|
|
|
125
|
|
|
3
|
|
|
(347
|
)
|
|
—
|
|
|||||||
Acquisition Accounting Adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
(26
|
)
|
|
—
|
|
|||||||
Reconciliation to business segment sales
|
|
$
|
1,336
|
|
|
$
|
1,532
|
|
|
$
|
1,723
|
|
|
$
|
1,445
|
|
|
$
|
139
|
|
|
$
|
(373
|
)
|
|
$
|
5,802
|
|
|
|
Three Months Ended April 3, 2016
|
||||||||||||||||||||||
Total Net Sales by Geographic Areas
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
United States
|
|
$
|
563
|
|
|
$
|
1,174
|
|
|
$
|
1,128
|
|
|
$
|
1,085
|
|
|
$
|
68
|
|
|
$
|
4,018
|
|
Asia/Pacific
|
|
213
|
|
|
78
|
|
|
130
|
|
|
89
|
|
|
11
|
|
|
521
|
|
||||||
Middle East and North Africa
|
|
485
|
|
|
15
|
|
|
285
|
|
|
98
|
|
|
3
|
|
|
886
|
|
||||||
All other (principally Europe)
|
|
58
|
|
|
98
|
|
|
145
|
|
|
48
|
|
|
28
|
|
|
377
|
|
||||||
Total net sales
|
|
$
|
1,319
|
|
|
$
|
1,365
|
|
|
$
|
1,688
|
|
|
$
|
1,320
|
|
|
$
|
110
|
|
|
$
|
5,802
|
|
|
|
Three Months Ended April 3, 2016
|
||||||||||||||||||||||
Total Net Sales by Major Customers
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Sales to the U.S. government
(1)
|
|
$
|
556
|
|
|
$
|
1,123
|
|
|
$
|
1,128
|
|
|
$
|
1,074
|
|
|
$
|
23
|
|
|
$
|
3,904
|
|
U.S. direct commercial sales and other
|
|
7
|
|
|
51
|
|
|
—
|
|
|
11
|
|
|
45
|
|
|
114
|
|
||||||
Foreign military sales through the U.S. government
|
|
301
|
|
|
53
|
|
|
256
|
|
|
90
|
|
|
—
|
|
|
700
|
|
||||||
Foreign direct commercial sales and other
(1)
|
|
455
|
|
|
138
|
|
|
304
|
|
|
145
|
|
|
42
|
|
|
1,084
|
|
||||||
Total net sales
|
|
$
|
1,319
|
|
|
$
|
1,365
|
|
|
$
|
1,688
|
|
|
$
|
1,320
|
|
|
$
|
110
|
|
|
$
|
5,802
|
|
|
|
Three Months Ended April 3, 2016
|
||||||||||||||||||||||
Total Net Sales by Contract Type
(in millions)
|
|
Integrated Defense Systems
|
|
|
Intelligence, Information and Services
|
|
|
Missile Systems
|
|
|
Space and Airborne Systems
|
|
|
Forcepoint
|
|
|
Total
|
|
||||||
Fixed-price contracts
|
|
$
|
806
|
|
|
$
|
487
|
|
|
$
|
1,165
|
|
|
$
|
771
|
|
|
$
|
106
|
|
|
$
|
3,335
|
|
Cost-type contracts
|
|
513
|
|
|
878
|
|
|
523
|
|
|
549
|
|
|
4
|
|
|
2,467
|
|
||||||
Total net sales
|
|
$
|
1,319
|
|
|
$
|
1,365
|
|
|
$
|
1,688
|
|
|
$
|
1,320
|
|
|
$
|
110
|
|
|
$
|
5,802
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
Apr 2, 2017
|
|
|
Apr 3, 2016
|
|
||
Operating income
|
$
|
54
|
|
|
$
|
21
|
|
Income from continuing operations attributable to Raytheon Company
|
35
|
|
|
25
|
|
||
Diluted earnings per share (EPS) from continuing operations attributable to Raytheon Company
|
$
|
0.12
|
|
|
$
|
0.08
|
|
(% of segment total external net sales)
|
IDS
|
|
IIS
|
|
MS
|
|
SAS
|
|
Forcepoint
|
|
Products
|
90
|
%
|
50
|
%
|
95
|
%
|
95
|
%
|
90
|
%
|
Services
|
10
|
%
|
50
|
%
|
5
|
%
|
5
|
%
|
10
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||
Net sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
5,044
|
|
|
$
|
4,826
|
|
|
84.1
|
%
|
|
83.2
|
%
|
Services
|
956
|
|
|
976
|
|
|
15.9
|
%
|
|
16.8
|
%
|
||
Total net sales
|
$
|
6,000
|
|
|
$
|
5,802
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||
Sales to the U.S. government
(1)(2)
|
$
|
3,984
|
|
|
$
|
3,904
|
|
|
66
|
%
|
|
67
|
%
|
U.S. direct commercial sales and other
|
98
|
|
|
114
|
|
|
2
|
%
|
|
2
|
%
|
||
Foreign military sales through the U.S. government
|
768
|
|
|
700
|
|
|
13
|
%
|
|
12
|
%
|
||
Foreign direct commercial sales and other
(1)
|
1,150
|
|
|
1,084
|
|
|
19
|
%
|
|
19
|
%
|
||
Total net sales
|
$
|
6,000
|
|
|
$
|
5,802
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Excludes foreign military sales through the U.S. government.
|
(2)
|
Includes sales to the U.S. Department of Defense (DoD) of
$3,782 million
, or
63%
of total net sales, in the
first quarter of 2017
and
$3,715 million
, or
64%
of total net sales, in the
first quarter of 2016
.
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||
Cost of sales
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
3,756
|
|
|
$
|
3,639
|
|
|
62.6
|
%
|
|
62.7
|
%
|
Services
|
774
|
|
|
802
|
|
|
12.9
|
%
|
|
13.8
|
%
|
||
Total cost of sales
|
$
|
4,530
|
|
|
$
|
4,441
|
|
|
75.5
|
%
|
|
76.5
|
%
|
|
Three Months Ended
|
|
% of Total Net Sales
|
||||||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||
Administrative and selling expenses
|
$
|
558
|
|
|
$
|
549
|
|
|
9.3
|
%
|
|
9.5
|
%
|
Research and development expenses
|
171
|
|
|
199
|
|
|
2.9
|
%
|
|
3.4
|
%
|
||
Total general and administrative expenses
|
$
|
729
|
|
|
$
|
748
|
|
|
12.2
|
%
|
|
12.9
|
%
|
|
Three Months Ended
|
||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Total operating expenses
|
$
|
5,259
|
|
|
$
|
5,189
|
|
% of Total Net Sales
|
87.7
|
%
|
|
89.4
|
%
|
|
Three Months Ended
|
||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Operating income
|
$
|
741
|
|
|
$
|
613
|
|
% of Total Net Sales
|
12.4
|
%
|
|
10.6
|
%
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Non-operating (income) expense, net
|
|
|
|
||||
Interest expense
|
$
|
58
|
|
|
$
|
58
|
|
Interest income
|
(5
|
)
|
|
(4
|
)
|
||
Other (income) expense, net
|
(7
|
)
|
|
(2
|
)
|
||
Total non-operating (income) expense, net
|
$
|
46
|
|
|
$
|
52
|
|
|
Three Months Ended
|
||||||
(In millions, except percentages)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Federal and foreign income taxes
|
$
|
198
|
|
|
$
|
157
|
|
Effective tax rate
|
28.5
|
%
|
|
28.0
|
%
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Income from continuing operations
|
$
|
497
|
|
|
$
|
404
|
|
|
Three Months Ended
|
||||||
(In millions)
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Net income
|
$
|
500
|
|
|
$
|
405
|
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Income from continuing operations attributable to Raytheon Company
|
|
$
|
503
|
|
|
$
|
427
|
|
Diluted weighted-average shares outstanding
|
|
292.8
|
|
|
299.6
|
|
||
Diluted EPS from continuing operations attributable to Raytheon Company
|
|
$
|
1.73
|
|
|
$
|
1.43
|
|
|
|
Three Months Ended
|
||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||
Beginning balance
|
|
292.8
|
|
|
299.0
|
|
Stock plans activity
|
|
1.1
|
|
|
1.4
|
|
Share repurchases
|
|
(2.9
|
)
|
|
(3.5
|
)
|
Ending balance
|
|
291.0
|
|
|
296.9
|
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Net income attributable to Raytheon Company
|
|
$
|
506
|
|
|
$
|
428
|
|
Diluted weighted-average shares outstanding
|
|
292.8
|
|
|
299.6
|
|
||
Diluted EPS attributable to Raytheon Company
|
|
$
|
1.74
|
|
|
$
|
1.43
|
|
|
|
Three Months Ended
|
||||||
Bookings
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
1,631
|
|
|
$
|
1,017
|
|
Intelligence, Information and Services
|
|
1,734
|
|
|
1,253
|
|
||
Missile Systems
|
|
743
|
|
|
1,632
|
|
||
Space and Airborne Systems
|
|
1,475
|
|
|
2,202
|
|
||
Forcepoint
|
|
105
|
|
|
97
|
|
||
Total
|
|
$
|
5,688
|
|
|
$
|
6,201
|
|
Backlog
(in millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Integrated Defense Systems
|
|
$
|
10,304
|
|
|
$
|
10,159
|
|
Intelligence, Information and Services
|
|
5,965
|
|
|
5,662
|
|
||
Missile Systems
|
|
10,517
|
|
|
11,568
|
|
||
Space and Airborne Systems
|
|
8,817
|
|
|
8,834
|
|
||
Forcepoint
(1)
|
|
451
|
|
|
486
|
|
||
Total
|
|
$
|
36,054
|
|
|
$
|
36,709
|
|
(1)
|
Forcepoint total backlog excludes the unfavorable impact of
$35 million
and
$45 million
at
April 2, 2017
and
December 31, 2016
, respectively, related to the Acquisition Accounting Adjustments to record acquired deferred revenue at fair value.
|
|
|
Three Months Ended
|
||||||
Total Net Sales
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
1,398
|
|
|
$
|
1,336
|
|
Intelligence, Information and Services
|
|
1,507
|
|
|
1,532
|
|
||
Missile Systems
|
|
1,756
|
|
|
1,723
|
|
||
Space and Airborne Systems
|
|
1,555
|
|
|
1,445
|
|
||
Forcepoint
|
|
144
|
|
|
139
|
|
||
Eliminations
|
|
(350
|
)
|
|
(347
|
)
|
||
Total business segment sales
|
|
6,010
|
|
|
5,828
|
|
||
Acquisition Accounting Adjustments
|
|
(10
|
)
|
|
(26
|
)
|
||
Total
|
|
$
|
6,000
|
|
|
$
|
5,802
|
|
|
Three Months Ended
|
||||||
EAC Adjustments
(in millions)
|
Apr 2, 2017
|
|
|
Apr 3, 2016
|
|
||
Gross favorable
|
$
|
229
|
|
|
$
|
179
|
|
Gross unfavorable
|
(175
|
)
|
|
(158
|
)
|
||
Total net EAC adjustments
|
$
|
54
|
|
|
$
|
21
|
|
|
|
Three Months Ended
|
||||||
Operating Income
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
212
|
|
|
$
|
146
|
|
Intelligence, Information and Services
|
|
111
|
|
|
104
|
|
||
Missile Systems
|
|
216
|
|
|
192
|
|
||
Space and Airborne Systems
|
|
190
|
|
|
167
|
|
||
Forcepoint
|
|
16
|
|
|
18
|
|
||
Eliminations
|
|
(37
|
)
|
|
(33
|
)
|
||
Total business segment operating income
|
|
708
|
|
|
594
|
|
||
Acquisition Accounting Adjustments
|
|
(42
|
)
|
|
(58
|
)
|
||
FAS/CAS Adjustment
|
|
108
|
|
|
105
|
|
||
Corporate
|
|
(33
|
)
|
|
(28
|
)
|
||
Total
|
|
$
|
741
|
|
|
$
|
613
|
|
Integrated Defense Systems
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Total net sales
|
|
$
|
1,398
|
|
|
$
|
1,336
|
|
|
4.6
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|||||
Cost of sales—labor
|
|
535
|
|
|
509
|
|
|
5.1
|
%
|
||
Cost of sales—materials and subcontractors
|
|
419
|
|
|
453
|
|
|
(7.5
|
)%
|
||
Other cost of sales and other operating expenses
|
|
232
|
|
|
228
|
|
|
1.8
|
%
|
||
Total operating expenses
|
|
1,186
|
|
|
1,190
|
|
|
(0.3
|
)%
|
||
Operating income
|
|
$
|
212
|
|
|
$
|
146
|
|
|
45.2
|
%
|
Operating margin
|
|
15.2
|
%
|
|
10.9
|
%
|
|
|
Change in Operating Income
(in millions)
|
|
Three Months Ended Apr 2, 2017 Versus Three Months Ended Apr 3, 2016
|
|||||||||
Volume
|
|
|
|
$
|
—
|
|
|
|
|||
Net change in EAC adjustments
|
|
|
|
40
|
|
|
|
||||
Mix and other performance
|
|
|
|
26
|
|
|
|
||||
Total change in operating income
|
|
|
|
$
|
66
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Bookings
|
|
$
|
1,631
|
|
|
$
|
1,017
|
|
|
60.4
|
%
|
Intelligence, Information and Services
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Total net sales
|
|
$
|
1,507
|
|
|
$
|
1,532
|
|
|
(1.6
|
)%
|
Total operating expenses
|
|
|
|
|
|
|
|||||
Cost of sales—labor
|
|
656
|
|
|
642
|
|
|
2.2
|
%
|
||
Cost of sales—materials and subcontractors
|
|
546
|
|
|
596
|
|
|
(8.4
|
)%
|
||
Other cost of sales and other operating expenses
|
|
194
|
|
|
190
|
|
|
2.1
|
%
|
||
Total operating expenses
|
|
1,396
|
|
|
1,428
|
|
|
(2.2
|
)%
|
||
Operating income
|
|
$
|
111
|
|
|
$
|
104
|
|
|
6.7
|
%
|
Operating margin
|
|
7.4
|
%
|
|
6.8
|
%
|
|
|
Change in Operating Income
(in millions)
|
|
Three Months Ended Apr 2, 2017 Versus Three Months Ended Apr 3, 2016
|
|||||||||
Volume
|
|
|
|
$
|
(2
|
)
|
|
|
|||
Net change in EAC adjustments
|
|
|
|
(8
|
)
|
|
|
||||
Mix and other performance
|
|
|
|
17
|
|
|
|
||||
Total change in operating income
|
|
|
|
$
|
7
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Bookings
|
|
$
|
1,734
|
|
|
$
|
1,253
|
|
|
38.4
|
%
|
Missile Systems
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Total net sales
|
|
$
|
1,756
|
|
|
$
|
1,723
|
|
|
1.9
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|||||
Cost of sales—labor
|
|
549
|
|
|
526
|
|
|
4.4
|
%
|
||
Cost of sales—materials and subcontractors
|
|
781
|
|
|
647
|
|
|
20.7
|
%
|
||
Other cost of sales and other operating expenses
|
|
210
|
|
|
358
|
|
|
(41.3
|
)%
|
||
Total operating expenses
|
|
1,540
|
|
|
1,531
|
|
|
0.6
|
%
|
||
Operating income
|
|
$
|
216
|
|
|
$
|
192
|
|
|
12.5
|
%
|
Operating margin
|
|
12.3
|
%
|
|
11.1
|
%
|
|
|
Change in Operating Income
(in millions)
|
|
Three Months Ended Apr 2, 2017 Versus Three Months Ended Apr 3, 2016
|
|||||||||
Volume
|
|
|
|
$
|
1
|
|
|
|
|||
Net change in EAC adjustments
|
|
|
|
6
|
|
|
|
||||
Mix and other performance
|
|
|
|
17
|
|
|
|
||||
Total change in operating income
|
|
|
|
$
|
24
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Bookings
|
|
$
|
743
|
|
|
$
|
1,632
|
|
|
(54.5
|
)%
|
Space and Airborne Systems
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Total net sales
|
|
$
|
1,555
|
|
|
$
|
1,445
|
|
|
7.6
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|||||
Cost of sales—labor
|
|
666
|
|
|
600
|
|
|
11.0
|
%
|
||
Cost of sales—materials and subcontractors
|
|
442
|
|
|
392
|
|
|
12.8
|
%
|
||
Other cost of sales and other operating expenses
|
|
257
|
|
|
286
|
|
|
(10.1
|
)%
|
||
Total operating expenses
|
|
1,365
|
|
|
1,278
|
|
|
6.8
|
%
|
||
Operating income
|
|
$
|
190
|
|
|
$
|
167
|
|
|
13.8
|
%
|
Operating margin
|
|
12.2
|
%
|
|
11.6
|
%
|
|
|
Change in Operating Income
(in millions)
|
|
Three Months Ended Apr 2, 2017 Versus Three Months Ended Apr 3, 2016
|
|||||||||
Volume
|
|
|
|
$
|
11
|
|
|
|
|||
Net change in EAC adjustments
|
|
|
|
(5
|
)
|
|
|
||||
Mix and other performance
|
|
|
|
17
|
|
|
|
||||
Total change in operating income
|
|
|
|
$
|
23
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Bookings
|
|
$
|
1,475
|
|
|
$
|
2,202
|
|
|
(33.0
|
)%
|
Forcepoint
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Total net sales
|
|
$
|
144
|
|
|
$
|
139
|
|
|
3.6
|
%
|
Total operating expenses
|
|
|
|
|
|
|
|||||
Cost of sales
|
|
25
|
|
|
24
|
|
|
4.2
|
%
|
||
Selling and marketing
|
|
54
|
|
|
46
|
|
|
17.4
|
%
|
||
Research and development
|
|
32
|
|
|
32
|
|
|
—
|
%
|
||
General and administrative
|
|
17
|
|
|
19
|
|
|
(10.5
|
)%
|
||
Total operating expenses
|
|
128
|
|
|
121
|
|
|
5.8
|
%
|
||
Operating income (loss)
|
|
$
|
16
|
|
|
$
|
18
|
|
|
(11.1
|
)%
|
Operating margin
|
|
11.1
|
%
|
|
12.9
|
%
|
|
|
|
|
Three Months Ended
|
|||||||||
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
% Change
|
|||||
Bookings
|
|
$
|
105
|
|
|
$
|
97
|
|
|
8.2
|
%
|
•
|
Cost of sales—labor and overhead costs associated with analytic and technical support services; infrastructure costs associated with maintaining our databases; and labor, materials and overhead costs associated with providing our product offerings.
|
•
|
Selling and marketing—labor costs related to personnel engaged in selling and marketing and customer support functions; costs related to public relations, advertising, promotions and travel; and related overhead costs.
|
•
|
Research and development—labor costs for the development and management of new and existing products; and related overhead costs.
|
•
|
General and administrative expenses—labor costs for our executive, finance and administrative personnel; third party professional service fees; and related overhead costs.
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Deferred revenue adjustment
|
|
$
|
(10
|
)
|
|
$
|
(26
|
)
|
Amortization of acquired intangibles
|
|
(32
|
)
|
|
(32
|
)
|
||
Total Acquisition Accounting Adjustments
|
|
$
|
(42
|
)
|
|
$
|
(58
|
)
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Integrated Defense Systems
|
|
$
|
—
|
|
|
$
|
—
|
|
Intelligence, Information and Services
|
|
5
|
|
|
5
|
|
||
Missile Systems
|
|
—
|
|
|
—
|
|
||
Space and Airborne Systems
|
|
3
|
|
|
5
|
|
||
Forcepoint
|
|
24
|
|
|
22
|
|
||
Total
|
|
$
|
32
|
|
|
$
|
32
|
|
|
|
Three Months Ended
|
||||||
FAS/CAS Adjustment Income (Expense)
(in millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
FAS/CAS Pension Adjustment
|
|
$
|
109
|
|
|
$
|
105
|
|
FAS/CAS PRB Adjustment
|
|
(1
|
)
|
|
—
|
|
||
FAS/CAS Adjustment
|
|
$
|
108
|
|
|
$
|
105
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
FAS (expense)
|
|
$
|
(319
|
)
|
|
$
|
(265
|
)
|
CAS expense
|
|
428
|
|
|
370
|
|
||
FAS/CAS Pension Adjustment
|
|
$
|
109
|
|
|
$
|
105
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Corporate
|
|
$
|
(33
|
)
|
|
$
|
(28
|
)
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Cash and cash equivalents
|
|
$
|
2,186
|
|
|
$
|
3,303
|
|
Short-term investments
|
|
399
|
|
|
100
|
|
||
Working capital
|
|
4,208
|
|
|
4,346
|
|
||
Amount available under credit facilities
|
|
1,250
|
|
|
1,250
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Net cash provided by (used in) operating activities from continuing operations
|
|
$
|
(41
|
)
|
|
$
|
325
|
|
Net cash provided by (used in) operating activities
|
|
(41
|
)
|
|
326
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Required pension contributions
|
|
$
|
37
|
|
|
$
|
43
|
|
PRB contributions
|
|
5
|
|
|
5
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
|
|||
Net cash provided by (used in) investing activities
|
|
$
|
(430
|
)
|
|
$
|
(91
|
)
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Additions to property, plant and equipment
|
|
$
|
86
|
|
|
$
|
150
|
|
Additions to capitalized internal use software
|
|
16
|
|
|
12
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Purchases of short-term investments
|
|
$
|
(399
|
)
|
|
$
|
—
|
|
Maturities of short-term investments
|
|
100
|
|
|
127
|
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Payments for purchases of acquired companies, net of cash acquired
|
|
$
|
(39
|
)
|
|
$
|
(57
|
)
|
|
|
Three Months Ended
|
||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Net cash provided by (used in) financing activities
|
|
$
|
(645
|
)
|
|
$
|
(629
|
)
|
|
|
Three Months Ended
|
||||||||||
(In millions)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||||||
|
|
$
|
Shares
|
|
|
$
|
Shares
|
|
||||
Shares repurchased under our share repurchase programs
|
|
$
|
400
|
|
2.7
|
|
|
$
|
400
|
|
3.2
|
|
Shares repurchased to satisfy tax withholding obligations
|
|
38
|
|
0.2
|
|
|
34
|
|
0.3
|
|
||
Total share repurchases
|
|
$
|
438
|
|
2.9
|
|
|
$
|
434
|
|
3.5
|
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Apr 3, 2016
|
||||
Cash dividends declared per share
|
|
$
|
0.7975
|
|
|
$
|
0.7325
|
|
Total dividends paid
|
|
215
|
|
|
201
|
|
(In millions, except percentages)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Total remediation costs—undiscounted
|
|
$
|
216
|
|
|
$
|
219
|
|
Weighted average discount rate
|
|
5.2
|
%
|
|
5.2
|
%
|
||
Total remediation costs—discounted
|
|
$
|
153
|
|
|
$
|
147
|
|
Recoverable portion
|
|
96
|
|
|
92
|
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Guarantees
|
|
$
|
206
|
|
|
$
|
190
|
|
Letters of credit
|
|
2,420
|
|
|
2,345
|
|
||
Surety bonds
|
|
127
|
|
|
127
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||
(In millions, except per share amounts)
|
Dec 31, 2016
|
|
|
Oct 2, 2016
|
|
|
Jul 3, 2016
|
|
|
Apr 3, 2016
|
|
|
Dec 31, 2016
|
|
|
Dec 31, 2015
|
|
||||||
Income from continuing operations after taxes
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
40
|
|
Net income
|
12
|
|
|
18
|
|
|
9
|
|
|
—
|
|
|
39
|
|
|
40
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations after taxes
|
$
|
0.04
|
|
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
0.12
|
|
Net income
|
0.04
|
|
|
0.05
|
|
|
0.02
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
||||||
Diluted EPS attributable to Raytheon Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations after taxes
|
$
|
0.03
|
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
Net income
|
0.04
|
|
|
0.05
|
|
|
0.03
|
|
|
—
|
|
|
0.11
|
|
|
0.11
|
|
(In millions)
|
|
Apr 2, 2017
|
|
Dec 31, 2016
|
||||
Cash and cash equivalents
|
|
$
|
2,186
|
|
|
$
|
3,303
|
|
Restricted cash included within prepaid expenses and other current assets
|
|
1
|
|
|
—
|
|
||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows
|
|
$
|
2,187
|
|
|
$
|
3,303
|
|
(In millions, except percentages)
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
Thereafter
|
|
|
Total
|
|
|
Fair Value
|
|
||||||||
Fixed-rate debt
|
|
$
|
—
|
|
|
$
|
591
|
|
|
$
|
—
|
|
|
$
|
1,500
|
|
|
$
|
—
|
|
|
$
|
3,292
|
|
|
$
|
5,383
|
|
|
$
|
5,848
|
|
Average interest rate
|
|
—
|
|
|
6.549
|
%
|
|
—
|
|
|
3.550
|
%
|
|
—
|
|
|
4.229
|
%
|
|
4.295
|
%
|
|
|
Period
|
Total Number of
Shares
Purchased
(1)
|
|
|
Average
Price Paid
per Share
|
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan
|
|
|
Approximate Dollar
Value (in billions)
of Shares that
May Yet Be Purchased
Under the Plan
(2)
|
|
||
January (January 1, 2017 - January 29, 2017)
|
7,799
|
|
|
$
|
145.70
|
|
|
—
|
|
|
$
|
1.6
|
|
February (January 30, 2017 - February 26, 2017)
|
2,671,987
|
|
|
149.71
|
|
|
2,671,944
|
|
|
1.2
|
|
||
March (February 27, 2017 - April 2, 2017)
|
97,621
|
|
|
155.90
|
|
|
—
|
|
|
1.2
|
|
||
Total
|
2,777,407
|
|
|
$
|
149.92
|
|
|
2,671,944
|
|
|
|
(1)
|
Includes shares purchased related to activity under our stock plans. Such activity during the
first quarter of 2017
includes the surrender by employees of
105,463
shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees.
|
(2)
|
In November 2015, our Board of Directors authorized the repurchase of up to
$2.0 billion
of our outstanding common stock.
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following materials from Raytheon Company’s Quarterly Report on Form 10-Q for the quarter ended April 2, 2017, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.*
|
*
|
filed electronically herewith
|
**
|
furnished electronically herewith, and not filed
|
RAYTHEON COMPANY
|
||
|
|
|
By:
|
/s/ Michael J. Wood
|
|
|
Michael J. Wood
|
|
|
Vice President, Controller and Chief Accounting Officer
|
|
|
Principal Accounting Officer
|
1 Year Raytheon Chart |
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