Raytheon Technologies (RTX) 2009年年度報告「NYSE」.pdf

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1、Raytheon 2009 Annual ReportWilliam H.SwansonChairman andChief Executive OfficerRaytheon CompanyThomas M.CulliganSenior Vice PresidentBusiness Development,RIIRaytheon CompanyLynn A.DuglePresident Intelligence and Information SystemsLawrence J.HarringtonVice PresidentInternal AuditRaytheon CompanyJohn

2、 D.Harris IIPresidentTechnical ServicesMichael M.HoefflerVice PresidentEvaluation TeamRaytheon CompanyJon C.Jones*PresidentSpace and Airborne SystemsTaylor W.Lawrence,Ph.D.PresidentMissile SystemsKeith J.PedenSenior Vice PresidentHuman ResourcesRaytheon CompanyRebecca R.RhoadsVice President andChief

3、 Information OfficerRaytheon CompanyMark E.RussellVice PresidentEngineering,Technology and Mission AssuranceRaytheon CompanyColin J.R.SchottlaenderPresidentNetwork Centric SystemsDaniel L.SmithPresidentIntegrated Defense SystemsJay B.StephensSenior Vice PresidentGeneral Counsel and SecretaryRaytheon

4、 CompanyDavid C.WajsgrasSenior Vice President and Chief Financial Officer Raytheon CompanyPamela A.WickhamVice PresidentCorporate Affairs and CommunicationsRaytheon CompanyDavid WilkinsVice President Contracts and Supply Chain Raytheon CompanyRichard R.YusePresident Space and Airborne SystemsWilliam

5、 H.SwansonChairman and Chief Executive OfficerRaytheon CompanyVernon E.ClarkAdmiralChief of Naval OperationsU.S.Navy(Ret.)John M.DeutchInstitute ProfessorMassachusetts Institute of TechnologyStephen J.HadleyPrincipal The RiceHadley Group,LLC Frederic M.PosesRetired Chairman and Chief Executive Offic

6、erTrane,Inc.Michael C.Ruettgers*Retired Chairman and Chief Executive OfficerEMC CorporationRonald L.SkatesRetired President and Chief Executive OfficerData General CorporationWilliam R.SpiveyRetired President and Chief Executive OfficerLuminent,Inc.Linda G.StuntzPartnerStuntz,Davis&Staffier,P.C.*Lea

7、d Director2010 Board of Directors2010 Leadership Team*On March 6,2010 we were all saddened to hear of the sudden passing of Jon Jones,a Raytheon vice president who served as president of our Space and Airborne Systems business.Jon was a valued contributor to Raytheon for 33 years,an outstanding lead

8、er within our company,industry and community,and someone who exhibited all of the companys values.During his distinguished career at Raytheon,his leadership supported programs of utmost importance to our men and women in uniform,as well as our employees.Jon Jones was a true patriot.Our deepest condo

9、lences go out to all of Jons family and friends.In an environment full of challenges,Raytheon delivered another year of outstanding performance in 2009.Staying true to our vision and values,we executed at a world-class level through 8,000 programs and 15,000 contracts,bringing Mission Assurance to o

10、ur customers and solid growth to our shareholders.Our domain knowledge,technological leadership and culture of innovation con-tinue to create expanding opportunities globally.Our 75,000 customer-focused employees continue to bring forth new solutions at an accelerating pace.Above all,our commitment

11、to the people we serve continues to inspire us to outperform our customer expectations and contribute to a safer,healthier world.Ray_AR_Cov_2009.indd 193/30/10 10:49:11 AM1Years ended December 31 2007 2008 2009In millions,except per share amounts and percentagesNet Sales$21,301$23,174$24,881Operatin

12、g Income 2,354 2,620 3,042Income from Continuing Operations(Adjusted in 2007)1 1,500 1,698 1,977Diluted EPS from Continuing Operations 3.29 3.93 4.89(Attributable to Raytheon Company Common Stockholders)(Adjusted in 2007)1Operating Cash Flow from Continuing Operations 1,249 2,036 2,745Dividends Decl

13、ared per Share 1.02 1.12 1.24Debt to Capital 15.2%20.1%19.0%Return on Invested Capital(Adjusted in 2007)1 10.5%11.1%12.2%Raytheon Financial HighlightsNet Sales (1)2007 income from continuing operations,diluted EPS from continuing operations attributable to Raytheon Company common stockholders and re

14、turn on invested capital have all been adjusted to exclude the$219 million or$0.49 per diluted share favorable adjustment due to certain tax-related benefits.These measures are non-GAAP financial measures.Please see the page that precedes the back cover of this report for a reconciliation of these m

15、easures to GAAP and a discussion of why the Company is presenting this information.In billions,except per share amounts and percentagesROIC (Adjusted in 2007)1$19.7$21.3$23.2$24.9$18.5$2.0$2.6$2.4$3.0$4.8912.2%$1.6$3.2910.5%$3.9311.1%$2.629.8%$1.978.2%0506070809050607080905060708090506070809Diluted

16、EPS from Continuing Operations(Adjusted in 2007)1Operating IncomeRAY_AR09_3.30.10_text_pps.indd 14/2/10 1:36:52 PM2Raytheon had another strong year in 2009results that build on our past success and strengthen the foundation on which we will strive to be even better in the future.I believe that our a

17、ccomplishments in 2009,as well as during the last several years,are rooted in Raytheons Vision,Strategy,Goals and Values(VSGVs).Our VSGVs are reflected in our focus on the customer,in our technology and innovation leadership,in our commitment to execution,and in the positive spirit of our employees

18、as measured by our employee opinion survey.By generating world-class ideas and putting these ideas into action,we seek to provide our men and women in uniform and others with the systems and services they need to be safe and to succeed,and to enable the success of all of our stakeholders around the

19、world.In a challenging environment for many businesses,we had the right strategic focus,the right processes and the right talent in place to meet our customers needs,to grow,and to build on our reputation for corporate responsibility.This focus is reflected in our strong results for 2009in a book-to

20、-bill ratio greater than one and a year-end backlog of$37 billion,which bodes well for the future.For the year,we had a 7 percent increase in salesand international sales,including foreign military sales,represented 21 percent of the total.International bookings were also strong,representing 30 perc

21、ent of total bookings.Earnings per share from continuing operations were up 24 percent,cash flow was robust,and we continued to improve our return on invested capital(ROIC),by 10 percent from 2008 to 2009.The company maintains a strong focus on program execution and the prudent management of capital

22、 and investments.This focus maximizes operating income and cash,and continues to improve ROIC.It allows us to pursue a capital deployment strategy that balances funding for growing our business,pension stability and returning cash to our shareholders through dividend payments and share repurchasesre

23、purchases that totaled 25.8 million shares for$1.2 billion in 2009.Diverse Portfolio Aligned With Global Customer NeedsOur portfolio is strong,broad-based and aligned with our customers priorities,both in the United States and around the world.One example of this alignment is in Missile Defense,wher

24、e the U.S.administration has identified our Standard Missile-3 and X-Band Radar as critical elements in missile defense systems for the United States and its allies.Other countries,too,have confirmed their need for world-class capabilities.In air and missile defense in 2009,Raytheon received Foreign

25、 Military Sales contract awards totaling$1.1 billion to fund new production of the combat-proven Patriot Air and Missile Defense System.We are seeing strong support,domestically and interna-tionally,in another key strategic area:our Intelligence,Surveillance and Reconnaissance work,particularly in t

26、he classified arena.In Homeland Security,Raytheons engineers meld the worlds finest sensor,command and control and com-munications systems into innovative Homeland Security technology solutions that protect people on continents around the world.We focus our strengths on some of the worlds most urgen

27、t needs in border security,identity management,Cybersecurity,aviation security and critical infrastructure protection.Our team crafts customer require-ments into tested and proven solutions to address some of the worlds most compelling needs.Our training solutions span commercial,civilian govern-men

28、t and military,both domestically and worldwide.We are providing training support to every active U.S.soldier through a contract with the U.S.Army,to every Federal Aviation Administration air traffic controller,and to every NASA astronaut.We are seeing increased demand in the international training m

29、arketplace,a growth opportunity.2009 was a year in which the growing importance of Cyber-security was clear.Raytheons Cybersecurity solutions are setting new standards in this emerging marketplace,capabili-ties that have been enhanced through a series of acquisitions these last few years in insider

30、threat software,vulnerability assessments and information operations,and infrastructure protection,engineering,research and analysis.In 2009,we acquired BBN Technologies,a leader in technology development with expertise spanning speech and language processing,privacy and security systems,networking,

31、data mining,distributed systems and surveillance systems;and in early 2010,Raytheon Australia acquired business assets owned by Compucat Research Pty Ltd to enhance Raytheons ability to meet the future information security needs of the Australian intelligence community.This focus on expanding our po

32、rtfolio with key technolo-gies and personneland integrating acquisitions with our core competencieshas secured our position as a world-leading expert in Cybersecurity products and services.As our world becomes ever more dependent on the electronic systems that support and protect us,our leadership i

33、s positioned to provide a strategic benefit for years to come.As we step back and look at the companys strategies and capabilities,they are well aligned with our customers needs.Our innovative technologies are used across platforms,both new and already in-service,a position that gives us,and our cus

34、tomers,considerable flexibility.We are able to both forward-fit and backward-fit our solutions to enhance our customers capabilities.And,we are well positioned to support our customers as their needs evolve today and in the future.Dear Fellow Shareholders,RAY_AR09_3.30.10_text_pps.indd 24/2/10 1:36:

35、52 PM3World-Class Talent and TechnologyAs we focus on customer success,it is essential that we retain,attract and develop world-class talent.We are doing so,and we were honored to have been named to Fortune Magazines 2009 list of the Top 25 Companies for Leaders in North America,reinforcing our effo

36、rts in all aspects of leadership development.We are committed to treating employees with respect,to leveraging our diversity efforts as a competitive advantage,and to continuing our leadership in diversity.For the fifth consecutive year,the company achieved a score of 100 percent on the Human Rights

37、 Campaign Corporate Equality Index,recognizing our achievements in creating an inclusive and open environment.Securing the STEM Talent PipelineWe also believe it is important to continue to demonstrate leadership in helping secure the science,technology,engineering and mathematics(STEM)pipeline for

38、the future.In 2009,Raytheons MathMovesU program achieved several milestones in our efforts to inspire students to develop and sustain an interest in math and science:We opened the Sum of all Thrills interactive experience at Epcot at the Walt Disney World Resort,which enables students of all ages to

39、 custom-design their own virtual ride using mathematical tools and then experience the ride in a robotic simulator;we demonstrated the STEM Education Model,a simulation and modeling tool that we gifted to the Business-Higher Education Forum for use by researchers,policymakers and educators to explor

40、e ways to strengthen STEM outcomes;and we served as the title sponsor of the MATHCOUNTS National Competition,hosting 228 of the nations top middle school math students in a competition that was every bit as intense as a sports playoff game.Equally gratifying was the tremendous turnout of Raytheon vo

41、lunteers in support of 180 MathMovesU-related events throughout the year,events that reached more than 50,000 students and an equal number of parents and teachers.Our community efforts have never been stronger.Corporate Responsibility Corporate responsibility is reflected in the things we stand for

42、as a companyin,for example,our sound corporate governance framework and our innovative ethics education initiatives.In 2009,we built on our established engagement around ethics education by introducing the“Ethics Checkpoint”decision-making tool.Corporate responsibility means valuing people,providing

43、 our employees with a healthy and safe work environment.Raytheons Mission:Health program offers comprehensive health and wellness services and resources to employees and their families.Our workplace safety activities are guided by one overriding goal:to achieve an injury-free workplace.Our 2009 inju

44、ry rates were the lowest ever achieved at Raytheon,but we will not be satisfied until we reach our ultimate goal of zero injuries.Corporate responsibility means sustainability:our commit-ment to future generations to protect our environment and conserve natural resources.Sustainability takes many fo

45、rms at Raytheon including eliminating waste,recycling,conserv-ing energy,reducing greenhouse gas emissions and develop-ing environmental solutions.In early 2010,Raytheon received for the third year in a row the U.S.Environmental Protection Agencys/Department of Energys ENERGY STAR Sustained Excellen

46、ce Award,the highest honor given to ENERGY STAR partners.In 2009,energy consumption declined on an absolute basis by almost 3 percent,and it has declined 13 percent since 2002.When measured on a“per dollar revenue”basis,the company reduced its energy use by 10 percent in 2009 and by 38 percent since

47、 2002.This is a journey and every step forward is a step that matters.To this end,the front portion of our Annual Report is considerably shorter this year and therefore more eco-friendly.I would invite you to visit R to learn more about our systems and services.Vision,Strategy,Goals and ValuesAll th

48、at we strive to accomplish in the year ahead starts with our VSGVs.This is the foundation of our commitment to the safety and success of our men and women in uniform and all of our customers around the world.This is also the foundation for our focus on the success of our shareholders,employees,commu

49、nities,and all of our stakeholders.Our Vision is“to be the most admired defense and aerospace systems supplier through world-class people and technology.”Our company is 88 years young.We know that we are involved in something larger than ourselves,and you have our commitment that the entire Raytheon

50、 teamnow 75,000 strongwill work our hardest to continue to earn your confidence.A proud member of the Raytheon team for 38 years,William H.Swanson Chairman and Chief Executive OfficerMarch 2010STRATEGYGOALSVALUESVISIONRAY_AR09_3.30.10_text_pps.indd 34/6/10 4:57:38 PM4Top-flight talent and proven pro

51、cesses turn innovative thinking into robust solutions at Raytheon.Fueled by diversity and driven by customer needs,the flow of ideas encompasses air,land,sea,space and cyberspace to solve problems,protect against threats and help our customers succeed.From innovative solutions in Sensing,Effects,C3I

52、 and Mission Supportfrom Homeland Security to Cybersecurityfor customers around the worldat Raytheon,Customer Success Is Our Mission.SolutionsInnovativeVisit for more detailed information.RAY_AR09_3.30.10_text_pps.indd 44/2/10 1:36:54 PM5Sensing:Raytheon Advanced Combat Radar(RACR);Effects:Rolling A

53、irframe Missile(RAM);C3I:Distributed Common Ground System(DCGS);Mission Support:Marksman-ship Training(Photo courtesy U.S.Army);International:Australias Hobart Class Air Warfare Destroyer;Homeland Security:Integrated solutions that safeguard populations and protect assets;Cybersecurity:Information a

54、ssurance for communication systemsEffectsSensingMission SupportC3IHomeland SecurityInternationalCybersecurityRAY_AR09_3.30.10_text_pps.indd 54/6/10 4:57:40 PM6Integrated Defense SystemsDan SmithPresidentLynn DuglePresidentCybersecurityTaylor LawrencePresidentIntelligence and Information SystemsMissi

55、le SystemsIntegrated Defense Systems,with 2009 sales of$5.5 billion,is a global integrator of defense systems.It pro-vides innovative and affordable solu-tions to international and domestic customers through domain expertise,systems integration and superior program management.In 2009,IDS continued i

56、ts focus on integrated air and missile defense,land and sea-based radars,current and future naval capabilities,advancing future naval combatants and the development of innovative technologies for core and growth opportunities.Intelligence and Information Systems,with 2009 sales of$3.2 billion,design

57、s,delivers,secures and supports highly critical intelligence and informa-tion system missions throughout the world.IIS serves four key global markets:Intelligence,Surveillance and Reconnaissance;Cybersecurity;environmental;and civil security.IIS provides end-to-end systems to pro-cess data at near r

58、eal-time speed and scale,enabling decision makers across the globe to focus on the most critical threats and opportunities.Missile Systems,with 2009 sales of$5.6 billion,is the world leader in the design,development and produc-tion of missile systems for U.S.and allied forces.Through a continued foc

59、us on innovation,performance and growth,MS is realizing its vision of becoming the global leader of innova-tive weapon systems and solutions.In 2009,MS continued its focus on global growth.More than 25 percent of Missile Systems sales are to interna-tional customers.BusinessesCenturion(Photo courtes

60、y U.S.Army)Patriot RadarRAY_AR09_3.30.10_text_pps.indd 64/6/10 4:57:46 PM7Jon JonesPresidentResponderRick YusePresidentAir Traffic Control Optimum Training Solution(ATCOTS)Colin SchottlaenderPresidentCivil Communications Solutions Network Centric SystemsSpace and Airborne SystemsTechnical ServicesNe

61、twork Centric Systems,with 2009 sales of$4.8 billion,provides net-worked decision solutions through world-class technology and people.Highlights in 2009 include innovative advances in networked communica-tions and sensing technologies,and further penetration of transporta-tion and security markets a

62、round the world.NCS continues to build upon its leadership positions in providing integrated communications,sensing,and command and control solutions for its customers.Space and Airborne Systems,with 2009 sales of$4.6 billion,is an international leader in providing air dominance,persistent battle sp

63、ace awareness and space solutions.In 2009,its scalable,adaptable RACR was successfully installed in an F-16,opening new global radar markets;while Common Sensor Payload provides continuous,clear and accurate surveillance for the U.S.Army.To meet the need for affordable,rapidly deployable space senso

64、rs,SAS unveiled its Responder multimission payload line.Technical Services,with 2009 sales of$3.2 billion,provides technical,scientific and professional services for defense,federal and commercial customers worldwide.Key programs include the Federal Aviation Adminis-trations Air Traffic Control Opti

65、mum Training Solution(ATCOTS)con-tract,which maintains and improves controller training,and the U.S.Armys Warfighter Field Operations Customer Support(FOCUS)activi-ties,which train warfighters in 500 locations worldwide.RAY_AR09_3.30.10_text_pps.indd 74/7/10 2:38:25 PM8Award HighlightsRaytheon was n

66、amed to Fortune Magazines 2009 list of Top 25 Companies for Leaders in North America.The award reinforces Raytheons efforts in all aspects of leader-ship development,including learning,talent management,succession planning,performance development,compensation,diversity,coaching and mentoring.Raytheo

67、n was recognized by the American Productivity and Quality Center as a 2009 Best Practice Partner for its succession management practices.The award recognizes Raytheon as a leader in succession planning,which identifies and monitors talent to address the future needs of the organization using availab

68、le talent.The National Business Group on Health named Raytheon one of the nations leading corporations for innovative programs promoting a healthy workplace.The Best Employers for Healthy Lifestyles award recognizes its Mission:Health wellness program.Raytheon received the U.S.Environmental Protecti

69、on Agencys/U.S.Department of Energys 2010 ENERGY STAR Sustained Excellence Award,the highest honor given to ENERGY STAR partners.For the fifth consecutive year,Raytheon has achieved a score of 100 percent on the Human Rights Campaign(HRC)Corporate Equality Index,recognizing achievements the company

70、has made in creating an inclusive and open environment for all employees.Raytheon was honored by CIO Magazine as a recipient of the 2009 CIO 100,an annual award that recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information tech

71、nology.The readers of Careers&the disABLED,Minority Engineer and Equal Opportunity Magazines once again honored Raytheon for its commitment to recruiting,hiring and promoting a positive work environment for their respective audiences.For the second consecutive year,Raytheon received the Aerospace In

72、dustries Associa-tions Worker Safety Excellence Award in the Missile and Space Vehicles category for its outstanding safety program at Raytheon Missile Systems.Raytheon received recognition for its innovative ethics education activities in 2009.The company was honored with a Bronze Telly Award for i

73、ts“Speaking Up”video vignette,which encouraged employees to bring forward ethical concerns.In October,we unveiled our interactive Sum of all Thrills experience to enthusiastic crowds at INNOVENTIONS at Epcot at the Walt Disney World Resort.Guests custom-design their own virtual thrill ride in either

74、 a roller coaster,bobsled or jet plane using mathematical tools,an innovative touch-screen table and a robotic simulator.The exhibit marks a new level of outreach to the next generation of math and science leaders,who can also take virtual rides at MathMovesU.com.Sum of all Thrills at INNOVENTIONS a

75、t Epcot at the Walt Disney World ResortRAY_AR09_3.30.10_text_pps.indd 84/6/10 4:57:51 PM92009 Form 10-KRAY_AR09_3.30.10_text_pps.indd 94/2/10 1:37:06 PM2009 Form 10-K RAY_AR09_3.30.10_text_pps.indd 104/2/10 1:37:06 PMUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-K ANNUAL

76、 REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the fiscal year ended December 31,2009.TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the transition period fromtoCommission File Number 1-13699RAYTHEON COMPANY(Exact Name of Re

77、gistrant as Specified in its Charter)Delaware95-1778500(State or Other Jurisdiction of Incorporation or Organization)(I.R.S.Employer Identification No.)870 Winter Street,Waltham,Massachusetts 02451(Address of Principal Executive Offices)(Zip Code)(781)522-3000(Registrants telephone number,including

78、area code)Securities registered pursuant to Section 12(b)of the Act:Title of Each ClassName of Each Exchange on Which RegisteredCommon Stock,$.01 par valueNew York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known sea

79、soned issuer,as defined in Rule 405 of the SecuritiesAct.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of theAct.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or

80、 15(d)of theSecurities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the Registrant wasrequired to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted elect

81、ronically and posted on its corporate Web site,ifany,every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(232.405 ofthis chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit andpost such files).

82、Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not containedherein,and will not be contained,to the best of registrants knowledge,in definitive proxy or information statementsincorporated by reference in Part III of this Form 10-K or any am

83、endment to this Form 10-K.Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,ora smaller reporting company.See the definitions of“large accelerated filer,”“accelerated filer”and“smaller reportingcompany”in Rule 12b-2 of the Exchang

84、e Act.Largeacceleratedfiler Acceleratedfiler Non-acceleratedfiler Smallerreportingcompany Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the ExchangeAct).Yes No The aggregate market value of the voting stock held by non-affiliates of the Registrant as of

85、 June 28,2009,wasapproximately$16.7 billion.The number of shares of Common Stock outstanding as of February 16,2010 was 379,083,000.Documents incorporated by reference and made a part of this Form 10-K:Portions of the Registrants Definitive Proxy Statement for its 2010 Annual Meeting of Stockholders

86、 are incorporatedby reference in Part III of this Form 10-K.INDEXPART IItem 1.Business.1Item 1A.Risk Factors.13Item 1B.Unresolved Staff Comments.21Item 2.Properties.21Item 3.Legal Proceedings.22Item 4.Submission of Matters to a Vote of Security Holders.23Executive Officers of the Registrant.23PART I

87、IItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases ofEquity Securities.25Item 6.Selected Financial Data.28Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.29Item 7A.Quantitative and Qualitative Disclosures About Ma

88、rket Risk.65Item 8.Financial Statements and Supplementary Data.67Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.113Item 9A.Controls and Procedures.113Item 9B.Other Information.113PART IIIItem 10.Directors,Executive Officers and Corporate Governance.113Ite

89、m 11.Executive Compensation.114Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.114Item 13.Certain Relationships and Related Transactions,and Director Independence.114Item 14.Principal Accountant Fees and Services.114PART IVItem 15.Exhibits and F

90、inancial Statement Schedules.114SIGNATURES.121PART IITEM 1.BUSINESSGeneralRaytheon Company,together with its subsidiaries,is a technology and innovation leader specializing in defense,homeland security and other government markets throughout the world.We provide state-of-the-art electronics,missions

91、ystems integration and other capabilities in the areas of sensing,effects,and command,control,communications andintelligence systems(C3I),as well as a wide range of mission support services.We serve both domestic and internationalcustomers,principally as a prime contractor on a broad portfolio of de

92、fense and related programs for governmentcustomers.We were founded in 1922 and have grown internally and through a number of acquisitions.We are incorporated in thestate of Delaware.Our principal executive offices are located at 870 Winter Street,Waltham,Massachusetts 02451.In this section,we descri

93、be our business,including our business segments,product lines,customers,operations and otherconsiderations.We also discuss some of our notable initiatives and achievements in 2009,such as certain key contractawards,new product introductions and acquisitions.Business SegmentsWe operate in six busines

94、s segments:?Integrated Defense Systems;?Intelligence and Information Systems;?Missile Systems;?Network Centric Systems;?Space and Airborne Systems;and?Technical Services.Revenue and other financial information regarding our business segments is set forth on pages 44-57 of this Form 10-K.Integrated D

95、efense Systems(IDS)IDS,headquartered in Tewksbury,Massachusetts,is a leader in global capabilitiesintegration,providing affordable,integrated solutions to a broad international and domestic customer base.IDSleverages its core domain knowledge and capabilities in sensors,command,control and communica

96、tion(C3),effects andmission support,to provide integrated naval,air and missile defense and civil security response solutions.Key domesticcustomers include the U.S.Navy,Army and Air Force,and the U.S.Missile Defense Agency(MDA).Key internationalcustomers include Japan,Saudi Arabia,United Arab Emirat

97、es(UAE),Taiwan,Australia,Germany,Korea and Finland.In 2009,IDS,as the prime contractor for the Patriot Air&Missile Defense System,a long-range,high-altitude systemdesigned to defeat advanced threats,provided Patriot Configuration 3 upgrades to the U.S.Army as well as major PatriotSystem upgrades and

98、 sales to international customers,including the UAE and Taiwan.IDS also continued to serve as theprime mission systems integrator for all electronic and combat systems of the Zumwalt Class Destroyer program(DDG1000),successfully delivering elements of mission systems equipment for the first two ship

99、s while receiving the initialaward for a third ship.IDS successfully completed a capabilities demonstration with the first flight of the Joint LandAttack Cruise Missile Defense Elevated Netted Sensor(JLENS),a theater-based,advanced sensor system that provideslong-endurance,over-the-horizon detection

100、 and tracking capabilities required to defeat the threat of cruise missiles.IDS has the following principal product lines:?Seapower Capability Systems(SCS)SCS is leading the U.S.Navys Open Architecture initiative,serving asprime contractor of the Navys newest and most capable mission systems for the

101、 Zumwalt class destroyer under theDDG 1000 program.SCS is designing and producing DDG 1000 mission systems equipment,which includes the TotalShip Computing Environment,radar,sonar,associated electronics systems and the software and hardware for these1systems.These capabilities are planned to be leve

102、raged across the U.S.Navys family of ships.SCS also providessensors and effectors for anti-submarine and mine warfare mission areas,advanced combat systems for submarinesand amphibious ships,high performance fire control systems for surface combatants and ship integration technologiesfor domestic an

103、d international naval and maritime customers.SCS is the integrator for weapon systems to all U.S.submarines as well as to Australias Collins class submarines.?National and Theater Security Programs(NTSP)NTSP provides integrated whole-life air and missiledefense systems which enable warfighters to se

104、nse,detect and engage threats through air and ground-based sensorsand command and control systems as well as joint system solutions and intelligence support for air and ballisticmissile defense.NTSP produces systems and solutions such as JLENS;Early Warning Radars,including the X-bandFamily-of-Radar

105、s,which enable threat detection,precision tracking,discrimination and classification of ballisticmissile threats;and Surface Launched Advanced Medium Range Air to Air Missile(SL-AMRAAM),a state-of-the-artair defense system serving as a key link in a layered approach to air and missile defense.NTSP a

106、lso provides integratedcapabilities in surveillance and multi-domain awareness,knowledge management,decision support and informationfusion through a broad range of solutions to detect,identify,track and disseminate actionable information.?Patriot Programs(PP)PP,as the prime contractor,designs,develo

107、ps and produces the Patriot Air&MissileDefense System,which serves as the foundation of the U.S.Armys integrated air and missile defense against theescalating tactical ballistic missile threat.PP also provides the Patriot system to key international customers.IDS wasrecently awarded new contracts to

108、 build Patriot systems for the UAE and Taiwan,which will serve as the foundationfor future capabilities.In addition,PP provides the HAWK XXI system,an advanced air defense system against low-tomedium-altitude air threats with advanced fire control and battle management,to international and coalition

109、partners.?Global Business Operations(GBO)GBO consists of a number of related IDS products and operations,including Raytheon Sarcos,Raytheon Solipsys and Raytheon Anschtz,and other international locations.GBOprovides a wide spectrum of capabilities,including integrated Command and Control(C2)solution

110、s for the domesticand international defense and homeland security markets,naval system capabilities for military and commercialmarkets worldwide,netted sensor solutions which efficiently provide a single integrated picture from data provided bymany sensors,and Advanced Robotics such as the Exoskelet

111、on Robotic Suit and the Multi-Dimensional Mobile Robot(snake).In Australia,GBO supports combat system design,development and procurement for major internationalprograms such as the Hobart class Air Warfare Destroyer(AWD),and the Collins Class submarine.GBO leveragestools,processes and subject matter

112、 expertise developed on major U.S.programs to provide such capabilities to IDSinternational locations.Intelligence and Information Systems(IIS)IIS,headquartered in Garland,Texas,is a leading provider ofintelligence and information solutions specializing in ground processing,unmanned ground systems,c

113、ybersecuritysolutions,homeland/civil security and other markets.Approximately half of its business is for classified customers.Otherkey customers include the U.S.Intelligence Community,U.S.Department of Defense(DoD)agencies,the Federal Bureauof Investigations(FBI),the National Oceanographic and Atmo

114、spheric Association(NOAA),and the United KingdomHome Office.In 2009,IIS reorganized its business operations to better respond to market shifts and changes in the customerenvironment.As a result,IIS operates under the six product lines discussed below,serving customers in the followingmarkets:Intelli

115、gence,Surveillance and Reconnaissance(ISR),DoD/Civil Space,Intelligence Operations Support,Cybersecurity,Environmental Solutions and Civil Security.IIS continued to perform under key programs including theDistributed Common Ground Systems(DCGS)10.2 where the company has created and continues to mana

116、ge aworldwide,network-centric enterprise for real-time information and intelligence sharing for the DoD,IntelligenceCommunity,and Coalition partners;the FBI National Data Exchange in which Raytheon connects federal,state and locallaw enforcement personnel across numerous jurisdictions;and the United

117、 Kingdom e-Borders program where Raytheonis building the largest,most comprehensive visitor management capability in the world.Additionally,IIS continued tostrengthen its capabilities in cybersecurity and was awarded numerous contracts in this area from a variety of customers.2IIS has the following

118、principal product lines:?Mission Operations Solutions(MOS)MOS provides integrated mission support and systems engineeringfor civil,intelligence and defense agencies,as well as international governments.MOS helps agencies translatetechnological breakthroughs into innovative mission-critical solutions

119、.Its scalable,secure and integrated businesssystems are focused on delivering enterprise-wide performance improvement and reliable results.Core competenciesinclude business excellence,mission critical operations,mission systems engineering,enterprise solutions andinfrastructure services.?Operational

120、TechnologiesandSolutions(OTS)OTSprovidescutting-edgemanagementanddissemination of massive volumes of intelligence data,as well as intelligence operations support capabilities forHuman Intelligence(HUMINT),Open Source Intelligence(OSINT),wireless and close access collection forintelligence,law enforc

121、ement and other government agencies.OTS also has strong capabilities in geospatial,geologicand technical analysis and support.?GroundEnterpriseSolutions(GES)GES primarily supports classified programs in support of theIntelligence Community.GES capabilities include ground systems for GEOINT and SIGIN

122、T systems,large-scale dataprocessing and exploitation,storage architectures and high performance data handling and processing systems.?Defense and Civil Mission Solutions(DCMS)DCMS provides multi-INT ground systems,unmannedsystems technology,environmental information management systems and satellite

123、 command and control.Additionally,DCMS provide large-scale information processing,information integration and visualization systems forintelligence,satellite and space-based programs for commercial and DoD customers.?Information Security Solutions(ISS)ISS is focused on providing information security

124、 solutions andservices to government and Fortune 500 customers worldwide.Through ISS,Raytheon combines its legacyinformation assurance business with three key acquisitions to provide leading cybersecurity offerings,including ActiveDefenseprotecting mission critical systems against a wide range of in

125、ternal and external threats.ISS capabilities areused to counter sophisticated and dangerous advanced persistent threats in the world.?Advanced ProgramsAdvanced Programs is a dynamic,niche organization focused on growing business in next-generation classified systems.It provides innovative solutions

126、that address current complex problems for U.S.intelligence and operational commands.Missile Systems(MS)MS,headquartered in Tucson,Arizona,is a premier developer and producer of missilesystems for the armed forces of the U.S.and other allied nations.Leveraging its key capabilities in advanced airfram

127、es,guidance and navigation systems,high-resolution sensors,targeting and netted systems,MS develops and supports abroad range of cutting edge weapon systems,including missiles,smart munitions,close in weapons systems,projectiles,kinetic kill vehicles and directed energy effectors.Key customers inclu

128、de the U.S.Navy,Army,Air Force and MarineCorps,the MDA and the armed forces of more than 40 allied nations.In 2009,MS continued to demonstrate its missile systems capabilities with several significant test successes and contractawards.The Standard Missile 3(SM-3)program conducted several successful

129、flight tests and achieved majordevelopment milestones during the year.SM-3 is a key element of the U.S.Governments Missile Defense strategy.TheStandard Missile 6(SM-6)extended range anti-air warfare missile program also achieved a number of developmentmilestones,which led to the first low rate initi

130、al production(LRIP)award from the U.S.Navy.MS had a number of keyinternational program wins including the selection of the Rolling Airframe Missile(RAM)and Phalanx system by SouthKorea to equip its new FFX class frigate.MS,through its participation in the NetFires LLC,completed the first movingtarge

131、t test flight of the Non Line-of-Sight-Launch System(NLOS-LS),a modular,networked weapon system for flexibleprecision fire against moving and stationary targets,taking the missile system closer to completion of the developmentphase.MS also completed development of the newest variant of the Advanced

132、Medium-Range Air-to-Air Missile(AMRAAM),which will provide the warfighter with the most capable beyond-visual range air-to-air missile ever fielded.3MS has the following principal product lines:?Naval Weapon Systems(NWS)NWS products and services provide layered defense capability and navalsurface fi

133、re support for the navies of more than 30 countries,providing highly effective ship defense across multipleplatforms.NWS leverages its capabilities to provide forward operating base defense for the U.S.Army,Air Force andMarine Corps.NWS develops,manufactures and supports the Standard Missile family

134、of weapons with capabilitiesranging from anti-air warfare to ballistic missile defense.In addition,NWS produces the Phalanx Close-in WeaponSystem(Afloat and Ashore),RAM,SeaRAM and the Evolved Sea Sparrow/Sparrow family of missiles for ship self-defense against air and surface threats.SeaRAM integrat

135、es the RAM into the Phalanx mount and has been installed onthe Littoral Combat Ship.Additionally,NWS is expanding its commitment to international cooperative endeavorswith our international partners and continues to evolve its products and technologies to encompass the full spectrumof threats,includ

136、ing the protection of land bases and high value infrastructure sites to counter terrorist threats.?Air Warfare Systems(AWS)AWS products and services enable U.S.Armed Forces and its internationalcustomers to attack,suppress and destroy air and ground-based targets.Products include the AMRAAM,astate-o

137、f-the-art,highly dependable and battle proven air-to-air missile that also has a surface-to-air launchapplication;Tomahawk Cruise Missile,an advanced surface-or sub-launched cruise missile with loitering andnetwork communication capability;the Joint Standoff Weapon,a family of air-to-ground weapons

138、that employ anintegrated GPS/Inertial Navigation system that guides the weapon to the target;the Paveway family of laser andGPS-guided“smart”bombs;the AIM-9X Sidewinder short range air-to-air missile;miniature air-launched decoy(MALD);the High-speed Anti-Radiation Missile(HARM),the HARM Targeting Sy

139、stem;and the Maverickprecision strike missile.?Land CombatLand Combat provides precision missiles and projectiles to the U.S.Army and Marine Corps andmore than 40 U.S.allies and focuses on accelerating the deployment of precision munitions capability to land combatforces and expanding its mission su

140、pport capabilities.Land Combat provides the Stinger weapon system for airdefense,the Tube-launched,Optically-tracked,Wireless guided(TOW)weapon system,a long-range precision anti-armor/anti-fortification/anti-amphibious landing weapon system;the Javelin a shoulder fired,fire-and-forget anti-tank wea

141、pon and Excalibur,a GPS-guided artillery round designed to provide organic indirect precision fire forground forces.Land Combat is also developing the NLOSLS Precision Attack Missile,a networked weapon systemfor precise fire against moving and stationary targets,and the Shoulder-Launched Multi-Purpo

142、se Assault Weapon(SMAW II)for the U.S.Marine Corps.?Exoatmospheric Kill Vehicle(EKV)EKV focuses on producing the exoatmospheric kill vehicle,which isthe intercept component of the Ground Based Interceptor for the Ground-based Midcourse Defense system designedto protect the U.S.against limited ballis

143、tic missile attacks and is part of the Ballistic Missile Defense System(BMDS).The EKV consists of a multi-spectral sensor in a flight package,used to detect,discriminate and destroy incomingwarheads carrying weapons of mass destruction.?Other MS product lines include Advanced Missiles and Unmanned S

144、ystems(AM&US)and Advanced Security andDirected Energy Systems(AS&DES).AM&US focuses on the development and early introduction of next generationend-to-end system solutions supporting the Air Warfare Systems,Naval Warfare Systems and Land Combat productlines,as well as leading our entry into Unmanned

145、 Systems.AS&DES pursues opportunities in the missile defense anddirected energy markets,including the development of new missile defense solutions,National Aeronautics and SpaceAdministration(NASA)/space applications,Information Operations/Information Assurance(IO/IA),modeling/simulation and discrim

146、ination capabilities,high power microwave and high energy laser systems.Network Centric Systems(NCS)NCS,headquartered in McKinney,Texas,is a leading provider of net-centricmission solutions for government and civil customers.NCS leverages its capabilities in networking,command andcontrol,and communi

147、cations to develop and produce solutions for customers including the U.S.Army,Air Force,Navyand Marine Corps and other government customers,as well as numerous international customers.In 2009,NCS had several key initiatives in certain focus markets,including U.S.Army modernization,international andd

148、omestic homeland security,civil communications and transportation solutions.NCS was awarded the India4Geosynchronous Augmented Navigation System(GAGAN)contract to provide the worlds most advancedtransportation air navigation system.This award follows the 2008 award of the Joint Precision Approach an

149、d LandingSystem(JPALS)contract for the U.S.Navy,solidifying NCS position as a leader in Satellite Based Augmentation Systems(SBAS).NCS was awarded an open road tolling project with the State of Florida,one of the largest of such projects in theU.S.NCS also worked closely with the U.S.Army to tailor

150、battlefield sensor,communications,command and control,and netted-lethality solutions developed for the Future Combat Systems(FCS)program for deployment into othercurrent force platforms such as the Stryker and Abrams,as well as planning for the future Ground Combat Vehicle underthe U.S.Armys Brigade

151、 Combat Team(BCT)Modernization initiative.NCS also demonstrated MAINGATE,a DefenseAdvanced Research Agency(DARPA)program,which integrates legacy and future combat radios into a single networkand positions NCS as the backbone communications provider for future tactical networks.In 2009,NCS acquired B

152、BNTechnologies Corp.and related entities.Raytheon BBN Technologies,is a strategic research partner with the DoD and aprovider of critical solutions for national defense and security missions such as the Wireless Network After Next(WNaN)program to develop scalable,adaptive,ad hoc networks that use ve

153、ry inexpensive yet flexible software radios and includeDisruption Tolerant Networking(DTN)technologies that allow the nodes to store packets temporarily during linkoutages.Raytheon BBN Technologies also provides Boomerang,a deployed sniper detection system that provides real-time target directions t

154、o combat teams.NCS has the following principal product lines:?Combat Systems(CS)CS provides integrated ground-based surveillance and target engagement solutionsdesigned to provide a significant advantage to the U.S.Army and Marine Corps warfighters.CS develops advancedground sensor capabilities for

155、the U.S.Armys BCT Modernization program such as the Mast Mounted Sensor(MMS)and the Multi-Function Radio Frequency System(MFRFS).CS also developed the Active Protection System(APS)which destroys rocket-propelled grenades or anti-tank missiles targeting combat vehicles.In addition,CS provides theLong

156、 Range Advanced Scout Surveillance System(LRAS3),a long-range multi-sensor system which provides theability to detect,identify and geo-locate distant targets,and is now networked to enable multi-sensor improvedaccuracy.Other CS systems include the Integrated Target Acquisition System(ITAS)which incr

157、eases target detection,acquisition,recognition and engagement ranges and HTI 2nd Generation FLIR(Horizontal Technology IntegrationForward Looking Infrared)systems which provide the host vehicle the capability to detect,recognize,acquire andengage targets at extended ranges.?Integrated Communications

158、 Systems(ICS)ICS offers wireless,high-bandwidth and transformationalcommunication solutions for every DoD agency,and for civil and international customers.These solutions enableconnectivity for Net-centric Operations(NCO)and the Global Information Grid(GIG)and provide missionassurance to customers w

159、ith satellite,point-to-point and networked communications services that are effective onland,sea,undersea,air and space.Solutions include the Enhanced Position Location Reporting System(EPLRS),anintegrated networking system that provides robust,high-speed battlefield communications for warfighters;t

160、he SecureMobile Anti-Jam Reliable Tactical Terminal(SMART-T),a low-cost,extremely high frequency(EHF)satelliteterminal that provides robust,low probability-of-detection,jam-resistant,multi-channel communications in supportof the field commander;and the U.S.Navy Multi-band Terminal(NMT),a single term

161、inal for the U.S.Navys nextgeneration satellite communications.ICS also includes Raytheon BBN Technologies and its advanced networking andcybersecurity technologies and capabilities.?Command and Control Systems(C2S)C2S develops,delivers and supports domestic and internationalmilitary and civil custo

162、mers,including the Federal Aviation Administration(FAA),Department of Transportation andDoD,with integrated networked command and control(C2)systems encompassing ground,air,space and securitysystems.Command and Control systems are designed to securely capture,present and tailor actionable knowledge

163、inreal-time to meet the needs of decision makers(e.g.military commander,air traffic controller,border patrol)tominimize information overload and enable rapid decisions.C2S ground,air and space capabilities include integratedcommunications,navigation,surveillance,air traffic management and open road

164、tolling systems.C2S productsinclude the U.S.Armys Advanced Field Artillery Tactical Data System(AFATDS)and Joint Automated DeepOperations Coordination System(JADOCS),which provide for the command and control of battlefield weapons,effects and operations.C2S also is continuing to develop advanced air

165、space management capabilities with the FAA5certified Wide Area Augmentation System(WAAS),Japans Multifunction Transport Satellite-based AugmentationSystem(MSAS)and Indias GAGAN to improve airspace design flexibility and efficiency by removing routedependency on ground-based navigational aids.C2S is

166、developing open road tolling systems for both the FloridaTurnpike Toll System and the Texas Department of Transportation.Additionally,C2S is developing andimplementing the Perimeter Intrusion Detection System(PIDS)at four airports under the Port Authority of NewYork and New Jersey,and executing prog

167、rams for Middle East-based commercial,oil,gas and petrochemicalcompanies to improve security of their most critical infrastructure.?Thales-Raytheon Systems,LLC(TRS)TRS is a joint venture between Thales Group and Raytheon.TRScombines the two companies capabilities in Air Command and Control Systems(A

168、CCS),Air Operations Centers,Battlefield Weapon Locating Radars and Military Air Surveillance Radars to provide cost-effective solutions formilitary air operations centers and joint operations centers.Solutions include the Firefinder Weapon Locating Radarsystem for the U.S.Army and international cust

169、omers,the U.S.Battle Control System(BCS),a next-generation airsovereignty command and control system,and the NATO ACCS.?Operations and Precision Components(OPC)OPC provides a broad range of imaging capabilities,including next-generation X-ray,visible,infrared,and millimeter wave focal plane arrays f

170、or thermal imaging,earthremote sensing and astronomy applications,as well as precision optical and electronic solutions,electronic hardwareand software products that enhance the interoperability of communications systems,through its Raytheon VisionSystems and ELCAN products.OPC also designs and manu

171、factures strategic precision mechanical and electroniccomponents and provides related services through its Raytheon Precision Manufacturing products.Customers includethe DoD,NASA and international customers.Space and Airborne Systems(SAS)SAS,headquartered in El Segundo,California,is a leader in the

172、design anddevelopment of integrated systems and solutions for advanced missions,including traditional and non-traditionalintelligence,surveillance and reconnaissance(ISR),precision engagement,unmanned aerial operations and space.Leveraging advanced concepts,state-of-the-art technologies and mission

173、systems knowledge,SAS provides electro-optical/infrared sensors,airborne radars for surveillance and fire control applications,lasers,precision guidance systems,processors,electronic warfare systems and space-qualified systems for civil and military applications.Key customersinclude the U.S.Navy,Air

174、 Force and Army,as well as classified and international customers.In 2009,SAS secured a prime development contract to equip the U.S.Navys P-8A Poseidon with the Advanced AirborneSensor,the follow-on to the Littoral Surveillance Radar System.SAS also won a key contract in electronic warfare fromthe U

175、.S.Navy for a technology maturation study of next-generation jammer capability to replace the current ALQ-99jamming system on the EA-18G Growler aircraft.In the international market,SAS was awarded a contract to supplyAPG-63 fire control radars and support equipment for the Japan Air Self-Defense Fo

176、rce and a Swiss Air Force contract toprovide Advanced Targeting Forward Looking Infrared(ATFLIR)pod systems and spares.Under a contract award fromDARPA,SAS will develop ultra-lightweight active electronically scanned array(AESA)radar to equip an experimentalIntegrated Sensor Is Structure airship.Add

177、itionally,SAS had successful launches and clear images with sharp spectralinformation from the Advanced Responsive Tactically Effective Military Imaging Sensor(ARTEMIS)aboard U.S.AirForces TacSat-3 satellite,from the Mini-RF sensor aboard NASAs Lunar Reconnaissance Orbiter(LRO)and a successfulSeptem

178、ber launch of two Space Tracking and Surveillance System payloads aboard a Delta II rocket.In March,SASshipped the NASA Aerosol Polarimetry Sensor for integration with the Glory spacecraft.SAS has the following principal product lines:?Tactical Airborne Systems(TAS)TAS designs and manufactures cost-

179、effective,high-performance airdominance solutions for tactical and strategic platforms,delivering trusted,actionable information and missionassurance.TAS provides sensors and integrated avionics systems using advanced fire control radars,electronic warfareand processor technologies to customers incl

180、uding the U.S.Navy,Air Force and Marine Corps and foreigngovernments.TAS produces radars using either mechanically scanned or AESA antennas for the U.S.Air Forces F-15and B-2 aircraft and for the U.S.Navys F/A-18 and EA-18G aircraft.TAS also provides electronic technologycapabilities for aircraft an

181、d shipboard self-protection systems to counter threats while enhancing platform and force6survivability including advanced towed decoys,radar warning receivers,jammers and integrated electronic warfaresystems.In addition,TAS advanced airborne processors form the basis of the mission computer/signal

182、processingsystems in the F-16,F-22 and F-35 aircraft.?Intelligence,Surveillance and Reconnaissance Systems(ISRS)ISRS designs and manufacturessensor,surveillance and targeting solutions that enable actionable information for strike,persistent surveillance andspecial mission applications.ISRS provides

183、 maritime and overland surveillance radars,terrain following/terrainavoidance radars and electro-optical/infrared sensors to customers including every branch in the DoD,theDepartment of Homeland Security(DHS)and foreign governments.The ISRS portfolio includes the APY-10 radar forthe U.S.Navys Multi-

184、Mission Maritime Aircraft,the AAS-44(V)forward looking infrared sensor for the U.S.NavysH-60 helicopters,the Multi-spectral Targeting System for the U.S.Air Forces Predator unmanned aerial system(UAS)and the ASQ-228 ATFLIR targeting pod for the F/A-18 Hornet and Super Hornets.ISRS also provides the

185、EnhancedIntegrated Sensor Suite for the Global Hawk UAS,which enables the Global Hawk to scan large geographic areas andproduce outstanding high-resolution reconnaissance imagery.In addition,ISRS provides integrated solutions for alltiers of airborne intelligence,surveillance and reconnaissance syst

186、ems,including the dual mode Synthetic ApertureRadar/Moving Target Indicator sensor for the ASTOR program for the U.K.Ministry of Defence,which enables high-resolution images and the monitoring of hostile forces.?Space Systems(SS)SS designs and manufactures space and space-qualified sensor payloads f

187、or large nationalprograms and develops innovative solutions for emerging intelligence,defense and civil space applications.SSprovides electro-optical,infrared,radio frequency and laser space-based sensors to customers including branches ofthe DoD,MDA,NASA,classified customers and foreign governments

188、.Its non-classified programs include the VisibleInfrared Imager Radiometer Suite,which will provide advanced imaging and radiometric capabilities onboard theNational Polar-orbiting Operational Environmental Satellite System,and ARTEMIS,a sophisticated hyperspectralimaging sensor for the U.S.Air Forc

189、e Research Laboratory(AFRL).?Other SAS product lines include Advanced Concepts and Technologies(ACT)and Integrated Technology Programs(ITP).ACT conducts internal research and development for SAS and contract research and development forcustomers,including AFRL and DARPA.ITP provides a wide range of

190、state-of-the-art product families andengineering services in support of the DoDs recent efforts to transform the capabilities and structure of the U.S.Armed Forces,including a variety of sophisticated GPS systems and anti-jam solutions for many customers,includingthe U.S.Air Force and Navy.Technical

191、 Services(TS)TS,headquartered in Reston,Virginia,provides a full spectrum of technical,scientificand professional services to defense,federal,international and commercial customers worldwide.It specializes intraining,logistics,engineering services,product support and operational support services.TS

192、provides solutions formission support,homeland security,space,civil aviation,counterproliferation and counterterrorism markets.Keycustomers include all branches of the U.S.Armed Forces,as well as the DHS,NASA,FAA,Department of Energy,Defense Threat Reduction Agency(DTRA)and international governments

193、.In 2009,TS continued to expand its Global Training Solutions capabilities and offerings domestically and internationally.During the first contract year,the TS-led Air Traffic Control Optimum Training Solution(ATCOTS)program trainedmore than 5,000 FAA air traffic controllers.As a key supplier to the

194、 Metrix Consortium,Raytheon also began EarlyTraining Transformation for the U.K.Ministry of Defence as the prelude to the Defence Training Rationalisationprogram,a program to transform specialist training across the U.K.military.In addition,the TS-led Warfighter FieldOperations Customer Support(FOCU

195、S)activities have been providing integrated training and training support,primarily to the U.S.Army,at numerous locations around the world for nearly two years.TS has the following principal product lines:?Integrated Support Solutions(ISS)ISS supports systems and products from design to deployment,p

196、roviding outsourced services to the mission support,civil aviation,homeland security and threat reduction markets.ISS offers a range of capabilities including engineering services,field support,integrated logistics support,training,7maintenance,installation and integration services for U.S.and inter

197、national government customers and contractors.ISS also specializes in installation,maintenance and upgrades of Raytheon products at customer facilities.As part ofthis effort,ISS provides support to NASAs Neutral Buoyancy Lab and Space Vehicle Mockup Facility at the JohnsonSpace Center and also works

198、 with DTRA on international counterproliferation and counterterrorism programs in theformer Soviet Union.?Customized Engineering&Depot Support(CEDS)CEDS provides a broad spectrum of engineeringand limited-production services.CEDS provides Capability Maturity Model Integration for Development(CMMI-DE

199、V)Maturity Level 3 capability for all engineering functions.For the V-22 Osprey aircraft program,CEDS managesthe Systems Integration Lab,leads the software support activity,performs updates to operational flight profile softwareand provides mission planning software and training devices.CEDS also pr

200、ovides integration and field support for theShared Reconnaissance Pod,which enables real-time,high-resolution imaging for F/A-18E/F air crews and airoperation commanders.CEDS provides upgrades and integration services to a number of air platforms,including theA-10,the HH-60,the B-52 and the F-16,and

201、 ground-based platforms,including radars and tanks.CEDS also providesfull life-cycle support for air,sea and land-based electronics and weapons.CEDS also provides Mission Support toCanadas military across numerous platforms,including the Phalanx Close-In Weapon System,the SPS-49 AirDefense Radar and

202、 the APG-73 Radar.?Warfighter FOCUSThe TS-led Warrior Training Alliance(WTA)operates the Warfighter FOCUS activities andprovides integrated operational training support,primarily to the U.S.Army.TS is leading a team of subcontractorson this 10-year program which is composed of various contracts for

203、education,virtual and live training,includingoperational training for domestic and foreign locations,most of which are individually bid and awarded.The WTAprovides integrated turnkey,life-cycle training services and support worldwide.Work performed by the WTAincludes:support for training exercises a

204、nd operations;maintenance for all training and range systems;curriculumdevelopment and instruction;management oversight and administration for contractor activities;and supply supportfor all government-owned property and material.?Raytheon Professional Services(RPS)RPS excels at designing,implementi

205、ng and managing highlycomplex training solutions that align an organizations employees,customers and partners.Using systems engineeringpractices,RPS applies commercial solutions,processes,tools and training experts to make its training programsavailable anytime,anywhere.This enables RPS clients to s

206、cale competencies and resources to meet the geographic,cultural and regulatory demands of their distributed enterprise.RPS helps leading companies in numerous countriesrethink the way training is delivered internally.RPS clients include General Motors Corporation,NASA and the FAA.?Raytheon Polar Ser

207、vicesRaytheon Polar Services is the prime operations and logistics contractor to theNational Science Foundation to support scientific research and maintain a geopolitical presence in Antarctica.Itprovides core business applications,information security processes and oversight in accordance with stri

208、ngent federalguidelines.International SubsidiariesWe conduct the operations and activities of our business segments in certaincountries through international subsidiaries,including Raytheon Systems Limited(RSL)for the U.K.,Raytheon Australiaand Raytheon Canada Limited(RCL).RSL designs,develops and m

209、anufactures advanced systems for network-enabledoperations,safety critical control functions and precision systems for the U.K.Ministry of Defence,U.K.Home Officeand commercial air traffic control organizations.Programs include e-Borders,an advanced border control and securityprogram(with IIS),the A

210、irborne Standoff Radar(ASTOR),a world-class ground surveillance capability(with SAS)andthe Joint Effects Tactical Targeting System(JETTS)(with NCS).Raytheon Australia is a Mission Support and missionsystems integration provider to the Australian Government.Programs include the Air Warfare Destroyer

211、contract todesign,develop and procure the combat system for the new Hobart Class destroyers(with IDS).Raytheon Australia alsomanages the entire operations and maintenance requirements of the Canberra Deep Space Communication Complex andprovides design,integration and lifecycle operations and mainten

212、ance services for the Royal Australian Defense Forcesaerospace capability(with TS).RCL provides persistent surveillance radar for air traffic management systems(primarilywith NCS).8Sales to the U.S.GovernmentOur total net sales to the U.S.Government were$22.0 billion in 2009,$20.2 billion in 2008 an

213、d$18.3 billion in 2007,representing 88%,87%and 86%of total net sales in 2009,2008 and 2007,respectively.Included in U.S.Governmentsales were foreign military sales through the U.S.Government of$2.8 billion,$1.8 billion and$1.5 billion in 2009,2008and 2007,respectively.Our principal U.S.Government cu

214、stomer is the DoD;other U.S.Government customers includethe Departments of Homeland Security,Justice,State and Energy,Intelligence Community agencies,NASA and the FAA.U.S.Government Contracts and RegulationWe act as a prime contractor or major subcontractor for numerous U.S.Government programs.As a

215、result,we aresubject to extensive regulations and requirements of the U.S.Government agencies and entities which govern theseprograms,including with respect to the award,administration and performance of contracts under such programs.Weare also subject to certain unique business risks associated wit

216、h U.S.Government program funding and appropriationsand government contracts and with supplying technologically-advanced,cutting edge defense-related products andservices to the U.S.Government.U.S.Government contracts generally are subject to the Federal Acquisition Regulation(FAR),which sets forth p

217、olicies,procedures and requirements for the acquisition of goods and services by the U.S.Government,agency-specificregulations that implement or supplement FAR,such as the DoDs Defense Federal Acquisition Regulation Supplement(DFARS)and other applicable laws and regulations.These regulations impose

218、a broad range of requirements,many ofwhich are unique to government contracting,including various procurement,import and export,security,contractpricing and cost,contract termination and adjustment,and audit requirements.A contractors failure to comply withthese regulations and requirements could re

219、sult in reductions to the value of contracts,contract modifications ortermination,and the assessment of penalties and fines and lead to suspension or debarment,for cause,from governmentcontracting or subcontracting for a period of time.In addition,government contractors are also subject to routine a

220、uditsand investigations by U.S.Government agencies such as the Defense Contract Audit Agency(DCAA).These agenciesreview a contractors performance under its contracts,cost structure and compliance with applicable laws,regulationsand standards.The DCAA also reviews the adequacy of and a contractors co

221、mpliance with its internal control systemsand policies,including the contractors purchasing,property,estimating,compensation and management informationsystems.For a discussion of certain risks associated with compliance with U.S.Government contract regulations andrequirements,see Item 1A“Risk Factor

222、s”of this Form 10-K.U.S.Government contracts include both cost reimbursement and fixed price contracts.Cost reimbursement contracts,subject to a contract-ceiling amount in certain cases,provide for the reimbursement of allowable costs plus the paymentof a fee.These contracts fall into three basic ty

223、pes:(i)cost plus fixed fee contracts which provide for the payment of afixed fee irrespective of the final cost of performance,(ii)cost plus incentive fee contracts which provide for increases ordecreases in the fee,within specified limits,based upon actual results as compared to contractual targets

224、 relating to suchfactors as cost,performance and delivery schedule,and(iii)cost plus award fee contracts which provide for the paymentof an award fee determined at the discretion of the customer based upon the performance of the contractor againstpre-established criteria.Under cost reimbursement typ

225、e contracts,the contractor is reimbursed periodically for allowablecosts and is paid a portion of the fee based on contract progress.Some costs incident to performing contracts have beenmade partially or wholly unallowable for reimbursement by statute,FAR or other regulation.Examples of such costsin

226、clude charitable contributions,certain merger and acquisition costs,lobbying costs,interest expense and certainlitigation defense costs.Fixed-price contracts are either firm fixed-price contracts or fixed-price incentive contracts.Under firm fixed-pricecontracts,the contractor agrees to perform a sp

227、ecific scope of work for a fixed price and as a result,benefits from costsavings and carries the burden of cost overruns.Under fixed-price incentive contracts,the contractor shares with thegovernment savings accrued from contracts performed for less than target costs and costs incurred in excess of

228、targets upto a negotiated ceiling price(which is higher than the target cost)and carries the entire burden of costs exceeding thenegotiated ceiling price.Accordingly,under such incentive contracts,the contractors profit may also be adjusted up ordown depending upon whether specified performance obje

229、ctives are met.Under firm fixed-price and fixed-priceincentive type contracts,the contractor usually receives either milestone payments equaling up to 90%of the contractprice or monthly progress payments from the government generally in amounts equaling 80%of costs incurred under9government contract

230、s.The remaining amount,including profits or incentive fees,is billed upon delivery and acceptanceof end items under the contract.For a discussion of certain risks associated with fixed price and cost reimbursementcontracts,see Item 1A“Risk Factors”of this Form 10-K.U.S.Government contracts generally

231、 also permit the government to terminate the contract,in whole or in part,withoutprior notice,at the governments convenience or for default based on performance.If a contract is terminated forconvenience,the contractor is generally entitled to payments for its allowable costs and will receive some a

232、llowance forprofit on the work performed.If a contract is terminated for default,the contractor is generally entitled to payments forits work that has been accepted by the government.The U.S.Governments right to terminate its contracts has not had amaterial adverse effect upon our operations or fina

233、ncial condition.For a discussion of the risks associated with the U.S.Governments right to terminate its contracts,see Item 1A“Risk Factors”of this Form 10-K.U.S.Government programs generally are implemented by the award of individual contracts and subcontracts.Congressgenerally appropriates funds o

234、n a fiscal year basis even though a program may extend across several fiscal years.Consequently,programs are often only partially funded initially and additional funds are committed only as Congressmakes further appropriations.The contracts and subcontracts under a program generally are subject to t

235、ermination forconvenience or adjustment if appropriations for such programs are not available or change.The U.S.Government isrequired to equitably adjust a contract price for additions or reductions in scope or other changes ordered by it.For adiscussion of the risks associated with program funding

236、and appropriations,see Item 1A“Risk Factors”and“Overview”within Item 7 of this Form 10-K.In addition,because we are engaged in supplying technologically-advanced,cutting edgedefense-related products and services to the U.S.Government,we are subject to certain business risks,some of which arespecific

237、 to our industry.These risks include:the cost of obtaining and retaining trained and skilled employees;theuncertainty and instability of prices for raw materials and supplies;the problems associated with advanced designs,whichmay result in unforeseen technological difficulties and cost overruns;and

238、the intense competition and the constantnecessity for improvement in facilities and personnel training.Our sales to the U.S.Government may be affected bychanges in procurement policies,budget considerations,changing concepts of national defense,political developmentsabroad and other factors.See Item

239、 1A“Risk Factors”and“Overview”within Item 7 of this Form 10-K for a moredetailed discussion of these and other related risks.We are also involved in U.S.Government programs,principally through our IIS and SAS business segments,which areclassified by the U.S.Government and cannot be specifically desc

240、ribed in this Form 10-K.The operating results of theseclassified programs are included in our consolidated financial statements.The business risks and considerationsassociated with these classified programs generally do not differ materially from those of our other U.S.Governmentprograms and product

241、s.Total classified sales were 13%,12%and 13%of total net sales in 2009,2008 and 2007,respectively.We are subject to government regulations and contract requirements which may differ from U.S.Government regulationwith respect to our sales to non-U.S.customers.See“International Sales”below for more in

242、formation regarding our salesoutside of the U.S.and Item 1A“Risk Factors”for a discussion of the risks associated with international sales.See“Sales to the U.S.Government”on page 9 of this Form 10-K for information regarding the percentage of ourrevenues generated from sales to the U.S.Government.In

243、ternational SalesOur sales to customers outside the U.S.were$5.3 billion or 21%of total net sales in 2009,$4.6 billion or 20%of total netsales in 2008,and$4.2 billion or 20%of total net sales in 2007.Included in sales to customers outside the U.S.wereforeign military sales through the U.S.Government

244、 of$2.8 billion,$1.8 billion and$1.5 billion,in 2009,2008 and 2007,respectively.International sales were principally in the fields of air defense systems,missile systems,airborne radars,navalsystems,air traffic control systems,missile defense systems,electronic equipment,computer software and system

245、s,homeland security solutions,personnel training,equipment maintenance and microwave communication and otherproducts and services permitted under the International Traffic in Arms Regulations(ITAR).Generally,we finance ourforeign subsidiary working capital requirements in the applicable countries.Sa

246、les and income from international10operations and investments are subject to U.S.Government laws,regulations and policies,including the ITAR and theForeign Corrupt Practices Act and the export laws and regulations described below,as well as foreign government laws,regulations and procurement policie

247、s and practices,which may differ from U.S.Government regulation,includingimport-export control,investments,exchange controls,repatriation of earnings and requirements to expend a portion ofprogram funds in-country.In addition,embargoes,international hostilities and changes in currency values can als

248、oimpact our international sales.Exchange restrictions imposed by various countries could restrict the transfer of fundsbetween countries and between Raytheon and its subsidiaries.We have acted to protect ourselves against most unduerisks through insurance,foreign exchange contracts,contract provisio

249、ns,government guarantees and/or progresspayments.See revenues derived from external customers and long-lived assets by geographical area set forth in“Note 16:Business Segment Reporting”within Item 8 of this Form 10-K.In connection with certain foreign sales,we utilize the services of sales represent

250、atives who are paid commissions inreturn for services rendered.The export from the U.S.of many of our products may require the issuance of a license by either the U.S.Department ofState under the Arms Export Control Act of 1976(formerly the Foreign Military Sales Act)and its implementingregulations

251、under the ITAR,the U.S.Department of Commerce under the Export Administration Act and itsimplementing regulations as kept in force by the International Emergency Economic Powers Act of 1977(IEEPA),and/orthe U.S.Department of the Treasury under IEEPA or the Trading with the Enemy Act of 1917.Such lic

252、enses may bedenied for reasons of U.S.national security or foreign policy.In the case of certain exports of defense equipment andservices,the Department of State must notify Congress at least 15-60 days(depending on the identity of the importingcountry that will utilize the equipment and services)pr

253、ior to authorizing such exports.During that time,Congress maytake action to block or delay a proposed export by joint resolution which is subject to Presidential veto.Additional information regarding the risks associated with our international business is contained in Item 1A“RiskFactors”of this For

254、m 10-K.BacklogOur backlog of orders was$36.9 billion at December 31,2009 and$38.9 billion at December 31,2008.The 2009 amountincludes backlog of approximately$30.3 billion from the U.S.Government compared with$33.0 billion at the end of2008.Approximately$5.6 billion and$0.6 billion of the 2009 backl

255、og amount represents direct foreign governmentbacklog and non-government foreign backlog,respectively.Approximately$18.5 billion of the 2009 year-end backlog isnot expected to be filled during the following twelve months.These amounts include both funded backlog(unfilledorders for which funding is a

256、uthorized,appropriated and contractually obligated by the customer)and unfunded backlog(firm orders for which funding has not been appropriated or obligated to us).For additional information related tobacklog figures,see“Segment Results”within Item 7 of this Form 10-K.Research and DevelopmentWe cond

257、uct extensive research and development activities to continually enhance our existing products and services anddevelop new products and services to meet our customers changing needs and requirements and address new marketopportunities.During 2009,we expended$565 million on research and development e

258、fforts compared with$517 millionin 2008 and$502 million in 2007.These expenditures principally have been for product development for the U.S.Government,including bid and proposal efforts related to U.S.Government programs.We also conduct funded researchand development activities under U.S.Government

259、 contracts which are included in net sales.For additional informationrelated to our research and development activities,see“Note 1:Summary of Significant Accounting Policies”withinItem 8 of this Form 10-K.Raw Materials,Suppliers and SeasonalityWe are dependent upon the delivery of materials by suppl

260、iers and the assembly of major components and subsystems bysubcontractors used in our products.Some products require relatively scarce raw materials.In addition,we must complywith specific procurement requirements which may,in effect,limit the suppliers and subcontractors we may utilize.Insome insta

261、nces,for a variety of reasons,we are dependent on sole-source suppliers.We enter into long-term or volumepurchase agreements with certain suppliers and take other actions to ensure the availability of needed materials,11components and subsystems.We generally have not experienced material difficultie

262、s in procuring the necessary rawmaterials,components and other supplies for our products.In recent years,our revenues in the second half of the year have generally exceeded revenues in the first half.The timingof U.S.Government awards,the availability of U.S.Government funding and product deliveries

263、 are among the factorsaffecting the periods in which revenues are recorded.We expect this trend to continue in 2010.CompetitionWe directly participate in most major areas of development in the defense and government electronics,space,information technology and technical services and support markets.

264、Technical superiority,reputation,price,pastperformance,delivery schedules,financing and reliability are among the principal competitive factors considered bycustomers in these markets.We compete worldwide with a number of U.S.and international companies in these markets,some of which may have more e

265、xtensive or more specialized engineering,manufacturing and marketing capabilities thanwe do in some areas.The on-going consolidation of the U.S.and global defense,space and aerospace industries continuesto intensify competition and has reduced the number of principal prime contractors in the U.S.As

266、a result of thisconsolidation,we frequently partner on various programs with our major suppliers,some of whom are,from time totime,competitors on other programs.In addition,projected U.S.defense spending levels for periods beyond the near-term are uncertain and difficult to predict.Changes in U.S.de

267、fense spending may potentially limit certain future marketopportunities.See Item 1A“Risk Factors”and“Overview”within Item 7 of this Form 10-K for a more detaileddiscussion of these and other related risks.Patents and LicensesWe own an intellectual property portfolio which includes many United States

268、 and foreign patents,as well as unpatentedknow-how,data,software,trademarks and copyrights,all of which contribute to the preservation of our competitiveposition in the market.In certain instances,we have augmented our technology base by licensing the proprietaryintellectual property of others.We al

269、so license our intellectual property to others.While our intellectual property rightsin the aggregate are important to the operation of Raytheon,we do not believe that any existing patent,license or otherintellectual property right is of such importance that its loss or termination would have a mate

270、rial adverse effect on ourbusiness,taken as a whole.EmploymentAs of December 31,2009,we had approximately 75,000 employees.Approximately 7%of our employees are unionized.We consider our union-management relationships to be generally satisfactory.Environmental RegulationOur operations are subject to

271、and affected by a variety of federal,state and local environmental protection laws andregulations.We have provided for the estimated cost to complete remediation where we have determined that it isprobable that we will incur such costs in the future to address the environmental impact at current or

272、formerly ownedoperating facilities or at sites where we have been named a Potentially Responsible Party(PRP)by the EnvironmentalProtection Agency(EPA)or similarly designated by other environmental agencies.It is difficult to estimate the timingand ultimate amount of environmental cleanup costs to be

273、 incurred in the future due to the uncertainties regarding theextent of the required cleanup,the discovery and application of innovative remediation technologies,and the status of thelaw,regulations and their interpretations.In order to assess the potential impact on our consolidated financial state

274、ments,we estimate the possible remediationcosts that we could reasonably incur.Such estimates take into consideration the professional judgment of ourenvironmental professionals and,in most cases,consultations with outside environmental specialists.If we are ultimately found to have liability at tho

275、se sites where we have been designated a PRP,we expect that the actualcosts of remediation will be shared with other liable PRPs.Generally,PRPs that are ultimately determined to beresponsible parties are strictly liable for site clean-up and usually agree among themselves to share,on an allocated ba

276、sis,the costs and expenses for investigation and remediation of hazardous materials.Under existing environmental laws,however,responsible parties may be jointly and severally liable and,therefore,potentially liable for the full cost of12funding such remediation.In the unlikely event that we are requ

277、ired to fund the entire cost of such remediation,thestatutory framework provides that we may pursue rights of contribution from the other PRPs.The amounts we record donot reflect the unlikely event that we would be required to fund the entire cost of such remediation,nor do they reflectthe possibili

278、ty that we may recover some of these environmental costs from insurance policies or from other PRPs,because neither manner of recovery is deemed probable.However,a portion of these costs are eligible for future recoverythrough the pricing of our products and services to the U.S.Government.We manage

279、various government-owned facilities on behalf of the U.S.Government.At such facilities,environmentalcompliance and remediation costs have historically been primarily the responsibility of the government and we relied(and continue to rely with respect to past practices)upon government funding to pay

280、such costs.While the governmentremains responsible for capital and operating costs associated with environmental compliance,responsibility for finesand penalties associated with environmental noncompliance are typically borne by either the government or thecontractor,depending on the contract and th

281、e relevant facts.Fines and penalties are unallowable costs under thecontracts pursuant to which such facilities are managed.Most of the laws governing environmental matters include criminal provisions.If we were convicted of a criminalviolation of certain federal environmental statutes,including the

282、 Federal Clean Air Act and the Clean Water Act,thefacility or facilities involved in the violation would be placed by the EPA on the“Excluded Parties List”maintained by theGovernment Services Administration.The listing would continue until the EPA concluded that the cause of the violationhad been cu

283、red.Listed facilities cannot be used in performing any U.S.Government contract awarded during any periodof listing by the EPA.Additional information regarding the effect of compliance with environmental protection requirements and theresolution of environmental claims against Raytheon and its operat

284、ions is contained in Item 1A“Risk Factors,”Item 3“LegalProceedings,”“CommitmentsandContingencies”withinItem 7and“Note11:CommitmentsandContingencies”within Item 8 of this Form 10-K.Available InformationOur Internet address is .The content on our website is available for informational purposes only.Yo

285、ushould not rely upon such content for investment purposes and such content is not incorporated by reference into thisForm 10-K.We make available free of charge on or through our Internet website under the heading“Investor Relations,”our annualreport on Form 10-K,quarterly reports on Form 10-Q,curre

286、nt reports on Form 8-K and amendments to those reports assoon as reasonably practicable after we electronically file such material with,or furnish it to,the Securities and ExchangeCommission.We also make available on or through our website copies of our key corporate governance documents,including o

287、ur Governance Principles,Certificate of Incorporation,By-laws and charters for the Audit Committee,Management Development and Compensation Committee,Governance and Nominating Committee and Public AffairsCommittee of the Board of Directors and our code of ethics entitled“Standards of Business Ethics

288、and Conduct”.Stockholders may request free copies of these documents from our Investor Relations Department by writing toRaytheon Company,Investor Relations,870 Winter Street,Waltham,MA 02451,or by calling(781)522-5123 or bysending an email request to .ITEM 1A.RISK FACTORSThis Form 10-K and the info

289、rmation we are incorporating by reference contain forward-looking statements within themeaning of federal securities laws,including information regarding our 2010 financial outlook,future plans,objectives,business prospects,trends and anticipated financial performance including with respect to our l

290、iquidity and capitalresources,our pension expense and funding,our unrecognized tax benefits and the outcome of legal proceedings,claims,investigations,commitments and contingencies,as well as information regarding domestic and international defensespending and budgets.You can identify these statemen

291、ts by the fact that they include words such as“will,”“believe,”“anticipate,”“expect,”“estimate,”“intend,”“plan,”or variations of these words,or similar expressions.These forward-looking statements are not statements of historical facts and represent only our current expectations regarding such13matt

292、ers.These statements inherently involve a wide range of known and unknown uncertainties.Our actual actions andresults could differ materially from what is expressed or implied by these statements.Specific factors that could causesuch a difference include,but are not limited to,those set forth below

293、and other important factors disclosed previouslyand from time to time in our other filings with the Securities and Exchange Commission.Given these factors,as well asother variables that may affect our operating results,you should not rely on forward-looking statements,assume that pastfinancial perfo

294、rmance will be a reliable indicator of future performance,nor use historical trends to anticipate results ortrends in future periods.We expressly disclaim any obligation or intention to provide updates to the forward-lookingstatements and the estimates and assumptions associated with them.We depend

295、on the U.S.Government for a substantial portion of our business and changes in government defense spendingcould have consequences on our financial position,results of operations and business.In 2009,U.S.Government sales accounted for approximately 88%of our total net sales.U.S.Government sales inclu

296、dedforeign military sales through the U.S.Government of$2.8 billion in 2009.Our revenues from the U.S.Governmentlargely result from contracts awarded to us under various U.S.Government programs,primarily defense-relatedprograms with the Department of Defense(DoD),as well as a broad range of programs

297、 with the Department ofHomeland Security,the Intelligence Community and other departments and agencies.The funding of our programs issubject to the overall U.S.Government budget and appropriation decisions and processes which are driven by numerousfactors,including geo-political events and macroecon

298、omic conditions,and are beyond our control.The overall level ofU.S.defense spending has increased in recent years for numerous reasons,including increases in funding of operations inIraq and Afghanistan and the DoDs modernization initiatives.Looking forward,we expect overall defense spending toincre

299、ase in the near term,albeit at lower rates than in recent years.However,projected defense spending levels areuncertain and become increasingly difficult to predict for periods beyond the near-term due to numerous factors,including the external threat environment,funding for on-going operations in Ir

300、aq and Afghanistan,future priorities ofthe Administration and the overall health of the U.S.and world economies and the state of governmental finances.Significant changes in defense spending could have long-term consequences for our size and structure.In addition,changes in government priorities and

301、 requirements could impact the funding,or the timing of funding,of our programswhich could negatively impact our results of operations and financial condition.Our financial performance is dependent on our ability to perform our U.S.Government contracts,which are subject touncertain levels of funding

302、 and termination.Our financial performance is dependent on our performance under our U.S.Government contracts.While we areinvolved in numerous programs and are party to thousands of U.S.Government contracts,the termination of one ormore large contracts,whether due to lack of funding,for convenience,

303、or otherwise,or the occurrence of delays,costoverruns and product failures in connection with one or more large contracts,could negatively impact our results ofoperations and financial condition.Furthermore,we can give no assurance that we would be able to procure new U.S.Government contracts to off

304、set the revenues lost as a result of termination of any of our contracts.The funding of U.S.Government programs is subject to congressional appropriations.Congress generally appropriatesfunds on a fiscal year basis even though a program may extend over several fiscal years.Consequently,programs are

305、oftenonly partially funded initially and additional funds are committed only as Congress makes further appropriations.Ifappropriations for one of our programs become unavailable,or are reduced or delayed,our contract or subcontractunder such program may be terminated or adjusted by the government,wh

306、ich could have a negative impact on ourfuture sales under such contract or subcontract.From time to time,when a formal appropriation bill has not been signedinto law before the end of the U.S.Governments fiscal year,Congress may pass a continuing resolution that authorizesagencies of the U.S.Governm

307、ent to continue to operate,generally at the same funding levels from the prior year,but doesnot authorize new spending initiatives,during a certain period.During such period(or until the regular appropriationbills are passed),delays can occur in procurement of products and services due to lack of fu

308、nding,and these delays canaffect our results of operations during the period of delay.In addition,U.S.Government contracts generally also permit the government to terminate the contract,in whole or inpart,without prior notice,at the governments convenience or for default based on performance.If one

309、of our contracts14is terminated for convenience,we would generally be entitled to payments for our allowable costs and would receivesome allowance for profit on the work performed.If one of our contracts is terminated for default,we would generally beentitled to payments for our work that has been a

310、ccepted by the government.A termination arising out of our defaultcould expose us to liability and have a negative impact on our ability to obtain future contracts and orders.Furthermore,on contracts for which we are a subcontractor and not the prime contractor,the U.S.Government could terminate the

311、prime contract for convenience or otherwise,irrespective of our performance as a subcontractor.Our government contracts also typically involve the development,application and manufacture of advanced defense andtechnology systems and products aimed at achieving challenging goals.New technologies may

312、be untested or unproven.In some instances,product requirements or specifications may be modified.As a result,we may experience technologicaland other performance difficulties,which may result in delays,setbacks,cost overruns and product failures,inconnection with performing our government contracts.

313、Our international business is subject to geo-political and economic factors,regulatory requirements and other risks.Our international business exposes us to geo-political and economic factors,regulatory requirements and other risksassociated with doing business in foreign countries.These risks diffe

314、r from and potentially may be greater than thoseassociated with our domestic business.In addition,our exposure to such risks may increase if our international businesscontinues to grow as we anticipate.Our international business is sensitive to changes in the priorities and budgets of international

315、customers,which may bedriven by changes in threat environments and potentially volatile worldwide economic conditions,regional and localeconomic and political factors,as well as U.S.foreign policy.Our international sales are subject to U.S.laws,regulationsand policies,including the International Tra

316、ffic in Arms Regulations(ITAR)and the Foreign Corrupt Practices Act andother export laws and regulations.They are also subject to local government laws,regulations and procurement policiesand practices which may differ from U.S.Government regulations,including regulations relating to import-exportco

317、ntrol,investments,exchange controls and repatriation of earnings,as well as to varying currency,geo-political andeconomic risks.Our international contracts may include requirements on specific in-country purchases,manufacturingagreements or financial support obligations,known as offsets,and provide

318、for penalties if we fail to meet suchrequirements.We also are exposed to risks associated with using foreign representatives and consultants for internationalsales and operations and teaming with international subcontractors,partners and suppliers in connection withinternational programs.As a result

319、 of these factors,we could experience award and funding delays on internationalprograms and could incur losses on such programs which could negatively impact our results of operations and financialcondition.Sales of our products outside of the U.S.require U.S.Government authorization and such author

320、izations may be delayedor withheld.Due to the nature of our products,we must first obtain licenses and authorizations from various U.S.Governmentagencies before we are permitted to sell our products outside of the U.S.For example,the U.S.Department of State mustnotify Congress at least 15-60 days,de

321、pending on the size and location of the sale,prior to authorizing certain sales ofdefense equipment and services to foreign governments.During that time,Congress may take action to block theproposed sale.We can give no assurance that we will continue to be successful in obtaining the necessary licen

322、ses orauthorizations or that Congress will not prevent or delay certain sales.Any significant impairment of our ability to sellproducts outside of the U.S.could negatively impact our results of operations and financial condition.Competition within our markets may reduce our revenues and market share

323、.We operate in highly competitive markets and our competitors may have more extensive or more specialized engineering,manufacturing and marketing capabilities than we do in some areas.We anticipate increasing competition in our coremarkets as a result of defense industry consolidation,which has enab

324、led companies to enhance their competitive positionand ability to compete against us.In addition,as discussed in more detail above,projected U.S.defense spending levelsfor periods beyond the near-term are uncertain and difficult to predict.Changes in U.S.defense spending may potentially15limit certa

325、in future market opportunities.We are also facing increasing competition in our domestic and internationalmarkets from foreign and multinational firms.Additionally,some customers,including the DoD,are increasingly turningto commercial contractors,rather than traditional defense contractors,for infor

326、mation technology and other supportwork.If we are unable to continue to compete successfully against our current or future competitors,we may experiencedeclines in revenues and market share which could negatively impact our results of operations and financial condition.Our future success depends on

327、our ability to develop new offerings and technologies for our current and future markets.To achieve our business strategies and continue to grow our revenues and operating profit,we must successfully developnew or adapt or modify our existing offerings and technologies for our current core defense m

328、arkets and our futuremarkets,including adjacent and emerging markets.Accordingly,our future performance depends on a number offactors,including our ability to:?Identify emerging technological trends in our current and future markets;?Identify additional uses for our existing technology to address cu

329、stomer needs in our current and future markets;?Develop and maintain competitive products and services for our current and future markets;?Enhance our offerings by adding innovative features that differentiate our offerings from those of our competitors;?Develop and manufacture and bring solutions t

330、o market quickly at cost-effective prices;and?Effectively structure our businesses,through the use of joint ventures,teaming agreements and other forms ofalliances,to reflect the competitive environment.We believe that,in order to remain competitive in the future,we will need to continue to invest s

331、ignificant financialresources to develop new and adapt or modify our existing offerings and technologies,including through internalresearch and development,acquisitions and joint ventures or other teaming arrangements.These expenditures coulddivert our attention and resources from other projects,and

332、 we cannot be sure that these expenditures will ultimately leadto the timely development of new offerings and technologies.Due to the design complexity of our products,we may inthe future experience delays in completing the development and introduction of new products.Any delays could result inincre

333、ased costs of development or deflect resources from other projects.In addition,there can be no assurance that themarket for our offerings will develop or continue to expand as we currently anticipate.The failure of our technology togain market acceptance could significantly reduce our revenues and harm our business.Furthermore,we cannot be surethat our competitors will not develop competing techno