Raytheon Technologies (RTX) 2006年年度報告「NYSE」.pdf

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1、Raytheon 2006 Annual Report Raytheon leadership team:(left to right)Bryan J.Even,Thomas M.Culligan,Taylor W.Lawrence(seated),Michael D.Keebaugh,Jay B.Stephens,Rebecca R.Rhoads,David C.Wajsgras,Louise L.Francesconi,William H.Swanson,Daniel L.Smith,Keith J.Peden(seated),Colin J.R.Schottlaender,Pamela

2、A.Wickham,Jon C.Jones,John D.Harris II,Lawrence J.Harrington(seated),Charles E.Franklin WILLIAM H.SWANSONChairman andChief Executive Offi cerRaytheon CompanyBARBARA M.BARRETTInternational Business andAviation AttorneyVERNON E.CLARKRetired Chief of Naval OperationsU.S.NavyFERDINAND COLLOREDO-MANSFELD

3、Retired Chairman andChief Executive Offi cerCabot Industrial TrustJOHN M.DEUTCHInstitute ProfessorMassachusetts Instituteof TechnologyFREDERIC M.POSESChairman andChief Executive Offi cerAmerican StandardCompanies,Inc.MICHAEL C.RUETTGERS*Retired Chairman andChief Executive Offi cerEMC CorporationRONA

4、LD L.SKATESRetired President andChief Executive Offi cerData General CorporationWILLIAM R.SPIVEYRetired President andChief Executive Offi cerLuminent,Inc.LINDA G.STUNTZPartnerStuntz,Davis&Staffi er,P.C.*Lead Director Board of DirectorsLeadership Team WILLIAM H.SWANSONChairman andChief Executive Offi

5、 cerRaytheon CompanyTHOMAS M.CULLIGANSenior Vice PresidentBusiness Development,RIIRaytheon CompanyBRYAN J.EVENPresidentTechnical ServicesLOUISE L.FRANCESCONIPresidentMissile SystemsCHARLES E.FRANKLINVice President Company Evaluation TeamRaytheon CompanyLAWRENCE J.HARRINGTONVice PresidentInternal Aud

6、itRaytheon CompanyJOHN D.HARRIS IIVice PresidentContracts and Supply ChainRaytheon CompanyJON C.JONESPresidentSpace and Airborne SystemsMICHAEL D.KEEBAUGHPresidentIntelligence andInformation SystemsTAYLOR W.LAWRENCEVice PresidentEngineering,Technologyand Mission AssuranceRaytheon CompanyKEITH J.PEDE

7、NSenior Vice PresidentHuman ResourcesRaytheon CompanyREBECCA R.RHOADSVice President andChief Information Offi cerRaytheon CompanyCOLIN J.R.SCHOTTLAENDERPresidentNetwork Centric SystemsDANIEL L.SMITHPresidentIntegrated Defense SystemsJAY B.STEPHENSSenior Vice President General Counsel and SecretaryRa

8、ytheon CompanyDAVID C.WAJSGRASSenior Vice President andChief Financial Offi cerRaytheon CompanyPAMELA A.WICKHAMVice PresidentCorporate Affairsand CommunicationsRaytheon CompanyYears ended December 31 2004 2005 2006Dollars in millions,except per share amountsBacklog$29,905$31,528$33,838 Net Sales 17,

9、825 19,038 20,291 Operating Income 1,301 1,512 1,840 Net Income 417 871 1,283 Diluted EPS from Continuing Operations 0.85 1.80 2.46 Operating Cash Flow from Continuing Operations 1,689 2,313 2,469 Dividends Declared per Share 0.80 0.88 0.96 Net Debt1 4,595 3,254 1,505 Net Debt to Net Capital2 30.3%2

10、3.3%11.9%Return on Invested Capital3 5.2%5.9%7.6%BACKLOG NET SALES OPERATING INCOME ROIC3 NET DEBT1Dollars in billions1 Net debt is defined as total debt less cash and cash equivalents.2 Net capital is defined as net debt plus equity.3 ROIC is not a measure of financial performance under GAAP.For de

11、tails about the companys calculation of ROIC,see page 106 of this report.Raytheon Financial Highlights04 05 06$29.9$31.5$33.8$17.8$19.0$20.3$1.3$1.5$1.85.2%5.9%7.6%$4.6$3.3$1.5104 05 0604 05 0604 05 0604 05 062Dear Fellow Shareholders,Performance,relationships and solutions:These are the pillars tha

12、t have supported the companys progress and these are the principles,combined with our process discipline,that continue to deliver strong results.Two thousand six was a year of record bookings,backlog and operating cash fl ow from continuing operations for the company,a year in which we achieved“orga

13、nically”-driven sales growth of 7 percent as well as a 37 percent increase in diluted earnings per share from continuing operations.It was a year in which net debt total debt less cash and cash equivalents was reduced by$1.7 billion to a year-end level of$1.5 billion,the lowest level in more than 12

14、 years.We also improved our return on invested capital(ROIC)from 5.9 percent in 2005 to 7.6 percent in 2006,a 29 percent increase with more than 19,000 employees trained in ROIC to date and additional employees planned for 2007.It was a year in which the company took strategic steps to focus on our

15、core government and defense businesses,announcing in December a defi nitive agreement to sell Raytheon Aircraft Company.We thank the team at Raytheon Aircraft for building on the Hawker and Beechcraft brands.It was also announced that,subject to the closing of the transaction,the Board of Directors

16、authorized an increase in the current share repurchase program by an additional$750 million and the early retirement of approximately$1 billion in debt,in addition to approximately$685 million of scheduled maturities in 2007.Our long-term senior unsecured credit rating was upgraded by Standard&Poors

17、 to BBB+in December,by Fitch to BBB+in early January 2007 and by Moodys to Baa1 in early March 2007.And it was a year in which the companys stock price increased more than 30 percent.Building On Our StrengthsWhile we are pleased with our companys progress in 2006,our teams focus continues to be on t

18、he future success of our customers and stockholders.We believe that the way to do this is to draw on our technology,systems engineering expertise and our world-class talent to provide outstanding solutions to our customers in government and industry,in countries around the world,and especially to th

19、ose who are serving on the front lines in harms way;their needs are a priority for our company.One of the key drivers of these solutions,and of the companys growth,is innovation.At Raytheon,technology and innovation are the companys heritage and our foundation for the future.In the pages that follow

20、,we will show you many of our capabilities,including our ability to integrate multiple systems to deliver a solu-tion for our customers mission needs.We call this core competency Mission Systems Integration.One of the more unique characteristics of our company is our diverse portfolio of programs an

21、d capabilities,a portfolio that ranges from serving as national team integrator for the U.S.Navys Zumwalt Class Destroyer program,to participation in thousands of programs in 80 countries around the world.In some instances we are team leaders,in others we are partners with prime contractors,in other

22、s still we are suppliers or providers of Mission Support solutions.3“Performance,relationships and solutions:These are the pillars that have supported the companys progressand these are the principles,combined with our process discipline,that continue to deliver strong results.”The common denominato

23、r in every contract is our innovative strength,customer focus and our depth of experience in the customer environment.Raytheons Fundamentals For The Future To develop,integrate and apply our capabilities effectively,to drive innovation,to meet our customers needs,to achieve growth,to enhance shareho

24、lder value,we must retain,attract and develop the best talent.These fundamentals start with a core foundation in ethics,because that is essential to earning and maintain-ing the trust of our customers.We know that bad things happen to good people,but when they do,our team knows it is important to ra

25、ise ones hand at the earliest stage and ask for help.As part of this awareness process,we are continuing the transition I mentioned in last years letter from an ethics“training”regimen to focus more specifi cally on ongoing,lifelong ethics“education.”We believe good companies identify issues early a

26、nd then apply the proper resources for resolution.To ethics,we add a culture of learning,because companies that depend on innovation must draw upon the skills of lifelong learners.And a key element of the learning process is embedded in our Raytheon Six Sigma efforts.With each project and each emplo

27、yee experience,we learn more about process improvement and about providing value to the customer.Raytheon Six Sigma is now part of our DNA structure,and it continues to evolve to meet the needs of the business and our customers.We are also using our learning initiatives to reinforce the skills that

28、have made us successful in the past and to add new capabilities necessary to remain successful.We have initiated the Raytheon Certifi ed Systems Architect program that is training and certify-ing a new generation of technical leaders to be capable of designing and integrating the mission solutions o

29、f the future.We have a number of certifi ed architects supported by close to 3,000 engineers trained in the principles of systems engineering and hundreds of lead systems engineers who have completed our extensive Systems Engineering Technical Development program.These training initiatives continue

30、to improve our capabilities,expand our ranks of systems architecture and systems engineering experts,and provide the core skills required to grow our company.We surround all of these fundamentals with a focus on diversity of thought,as well as of gender,age,race,sexual preference and all the aspects

31、 that together make each of us unique.The companys focus on inclusive-ness and the external recognition we have received are very gratifying,but the journey continues.We will continue to pick up the pace of this important journey.To continue to be world-class innovators,we also must continue to valu

32、e different ideas and put a premium on respect,which our team defi nes as acknowledging ones presence,valuing ones opinion,providing ongoing feedback,showing appreciation and explaining why we do what we do.This is about all of Raytheons team members being valued members of a great team.Looking Ahea

33、dIf we are to secure our companys position and our ability to continue to meet the needs of our customers we not only need to think about our talent requirements today and tomorrow,but also the day after tomorrow.4How do we retain and attract generations of outstanding talent?How do we ensure that t

34、he talent pipeline remains full well into the future?For technology companies like Raytheon,this is clearly a strategic business issue.As co-chair of the Business-Higher Education Forums initiative on Securing Americas Leadership in Science,Technology,Engineering and Mathematics,I can report to you

35、that many companies and institutions are responding to this challenge.At Raytheon,we are using a multipronged approach:sponsoring MATHCOUNTS,which emphasizes math enrichment,partnering with VolunteerMatch and MATHCOUNTS to connect interested employees with opportunities to support math in their comm

36、unities,investing in our Raytheon Scholars program for college scholarship assistance to children of employees,sponsoring FIRST Robotics school teams and scholarships,and moving forward with our major national initiative,MathMovesU,aimed at inspiring interest and excitement in math among middle scho

37、ol students across the country.Were just one voice,but many companies and many industries are looking at this issue,and together,we hope to make a difference in the lives of young students,showing them that the path that focuses on math and science leads to an exciting and rewarding future and we ho

38、pe to our door.Those Who ServeFirst,last and always,we want you to know that we are well aware of the context for all of our activities.These are uncertain times:Our men and women in uniform are deployed right now in harms way.Our international allies and friends are important partners in defense an

39、d security around the world.Ours is a culture that has enormous respect for service:A number of our employees are reservists on active duty and many others are veterans themselves,as were generations of Raytheon people before them.It is our goal in the years ahead to honor this commitment,to build o

40、n the pillars of performance,relationships and solutions,to maintain process discipline and to stay totally focused on contributing to the success of our customers,continuing to earn the trust of our shareholders,and creating and empowering innovative teams committed to excellence.Thank you for your

41、 confi dence in us.As always,a proud member of the Raytheon team,William H.SwansonChairman and Chief Executive Offi cerMarch 20075Raytheon is a global technology company that provides innovative solutions to customers in 80 nations.Our domain knowledge and technological leadership have created expan

42、ding opportunities in four core defense markets:Sensing:technologies that acquire data and create the information needed for effective battlespace decisions.C3I(Command,Control,Communications and Intelligence):integrated systems that optimize operational planning and execution.Effects:technologies t

43、hat achieve specifi c actions or outcomes.Mission Support:total life-cycle solutions that ensure NoDoubt performance.Through strategic vision,disciplined management and world-class talent,Raytheon is delivering operational advantages for customers every day while helping them prepare for the mission

44、s of tomorrow.SensingSensing technologies are the foundation of effective battlespace decisions.Sensors acquire precise situational data across air,space and underwater domains,providing timely information for battlefi eld commanders and defense systems to take appropriate action.At Raytheon,Sensing

45、 technologies span the full electromagnetic spectrum to provide a broad range of capabilities,including traditional Radio Frequency(RF)and Electro-optical(EO)sensors,as well as hyperspectral,acoustic and ultraviolet sensors.Our RF capabilities are used in radars,missile seekers,communications,electr

46、onic warfare and directed-energy weapons.Current examples include our Active Electronically Scanned Array(AESA)radars being produced for the U.S.Air Forces F-15 and B-2 aircraft and for the U.S.Navys F/A-18 fi ghter jet.We are also preparing for the next-generation radar through our continuing devel

47、opment of gallium nitride semiconductor technology.Our EO technologies expand the visible battlespace,enable night vision and support precision strike missions.In 2006 Raytheon passed a major milestone in the use of EO technology for space-based missile tracking with the delivery of the fi rst Block

48、 VI infrared sensor payload for the Missile Defense Agencys Space Tracking and Surveillance System.Airborne Stand-Off Radar(ASTOR)System7 7Photo:ASTOR offers continuous surveillance from the Royal Air Force Sentinel R Mk1 aircraft and integrated ground stations.The Airborne Stand-Off Radar(ASTOR)pro

49、gram,for which Raytheon is prime contractor to the U.K.s Ministry of Defence,is expected to provide the most advanced airborne ground surveillance capability in the world when it enters service.ASTORs dual-mode radar detects both moving and static targets from long standoff distances,protecting airc

50、raft and crew while providing 24-hour,all-weather surveillance and reconnaissance.Shown publicly for the fi rst time at last years Farnborough International Air Show,ASTOR performed superbly in extensive airborne testing during 2006,with precise in-flight imagery exceeding expectations.In 2006,Rayth

51、eon also delivered the ASTOR training system and the fi rst ground station units.C3IC3I(Command,Control,Communications and Intelligence)systems provide integrated,multidimensional support to decision makers on and off the battlefi eld,enhancing their ability to direct and control assigned resources

52、to accomplish a mission.C3I systems transform raw data into actionable intelligence for a better,safer world.Raytheons C3I capabilities are extensive and continue to expand.They include situational awareness,surveillance,intelligence and analysis,communications,mission planning,battle management com

53、mand and control,sensors and payloads,and integrated ground solutions.A major C3I landmark in 2006 was our successful demonstration of our Communications Network Radio System(CNRS),a mobile ad hoc network that can establish itself autonomously on a battlefi eld and heal itself if damaged.We also suc

54、cessfully simulated the command and control of three unmanned vehicles from a single ground station.And as an example of our expansion into adjacent markets,Raytheon was awarded a contract to provide the Florida Turnpike Enterprise with an open-road tolling system on its highways based on our comman

55、d and control technologies.9Distributed Common Ground System(DCGS)Photo:DCGS terminal at Raytheon Intelligence and Information SystemsThrough our U.S.Air Force Distributed Common Ground System(DCGS)Block 10.2 program,Raytheon supports U.S.and coalition forces with continuous and secure on-demand int

56、elligence brokering that can help change the course of events in hours,minutes or even seconds.The DCGS program marks a signifi cant step forward in distributed intelligence,surveillance and reconnaissance systems,enabling worldwide,real-time information sharing.The systems open architecture and Web

57、-based DCGS Integration Backbone(DIB)will allow all military services to share intelligence seamlessly,no matter where forces are located.EffectsMilitary missions achieve their objectives through a variety of Effects,from striking targets to disabling hostile information systems.The specifi city of

58、the Effects generated requires sophisticated and highly tailored supporting technology.This includes directed-energy weapons in addition to traditional missiles and precision-guided munitions.Raytheon capabilities span the gamut of current and emerging Effects technologies.Our technologies range fro

59、m using missiles as a node on a network to directed-energy urban warfare and other lethal and nonlethal systems and applications.Supporting capabilities include advanced airframes,guidance and navigation systems,high-resolution sensors,and targeting and netted systems.Examples of Raytheons innovativ

60、e Effects technologies include our 2006 development of a vertically launched loitering missile and the development of an active protection system that will destroy rocket-propelled grenades at close range.We also won an award to deliver wireless versions of the Tube-launched,Optically-tracked,Wire-g

61、uided(TOW)anti-tank missile.1111Exoatmospheric Kill Vehicle(EKV)Photo:Space Operations facility at Raytheon Missile SystemsThe Exoatmospheric Kill Vehicle(EKV)was one of two Raytheon components that played key roles in the hit-to-kill destruction of a ballistic missile target in last years test of t

62、he Missile Defense Agencys Ground-based Midcourse Defense(GMD)system.The EKV intercepted a ballistic missile target in space over the eastern Pacific Ocean.The test marked the first launch from an operational GMD site and demonstrated the EKVs ability to successfully detect,track,discriminate and de

63、stroy a target in space.The other Raytheon component,an Upgraded Early Warning Radar(UEWR)system at Beale Air Force Base in California,supported the intercept by successfully providing information to the GMD Ground Fire Control.The GMD system is designed to protect all 50 U.S.states against limited

64、ballistic missile attack by intercepting long-range ballistic missiles during the midcourse or ballistic phase of their fl ight,before reentry into the earths atmosphere.GMD interceptors are in silos today in Fort Greely,Alaska,and Vandenberg Air Force Base,California.Mission SupportTodays technolog

65、y makes it possible to accomplish extraordinary missions,but technology alone cannot guarantee success.The crucial role of Mission Support starts long before operations are conceived and encompasses every aspect of execution.Only through total life-cycle support can customers be sure that each missi

66、on will have the right products,systems and capabilities at the right place,at the right time,every time.Raytheon Mission Support services provide integrated,customized solutions that span the entire mission life cycle including not only the full breadth of Raytheon technologies,but also third-party

67、 and next-generation readiness support.Our ReadiLog Integrated Solution Sets draw on a combination of technology and business process engineering disciplines.Condition-Based Maintenance;Integrated Supply Chain Management;Obsolescence Management;Training and Performance Support;Total Asset Visibility

68、;Integrated Information Management;Logistics Modeling,Simulation and Visualization;and Performance-Based Logistics all work together in a net-enabled manner to help customers stay on top of every issue and ensure mission success.1313Land-Based Phalanx Weapon SystemPhoto:Land-Based Phalanx Weapon Sys

69、tem For the U.S.Armys ground forces,mission success of Raytheons Land-Based Phalanx Weapon System depends heavily on preparation,support and development.Our design engineering and Mission Support engineers enhance customer acceptance testing,installation and initial checkout.Raytheons distance suppo

70、rt to the Army includes a full warranty backed by replacement parts and technical expertise to maximize system availability.Near real-time reporting from the theater continually flows through our corrective action channels resulting in process,design and software enhancements.Remote equipment monito

71、ring of the deployed systems allows us to correctly analyze and update software and hardware in spiral development.InternationalGovernment and defense customers in 80 nations on every continent rely on Raytheon for state-of-the-art integrated mission systems.Our people and technology address some of

72、 the worlds most compelling needs,ranging from missile defense in north Asia,to homeland security in the Middle East,command and control in Europe,and naval systems on the Pacifi c Rim.With our global companies in the United Kingdom and Australia,we can tailor our technology into unique mission syst

73、ems to serve customers anywhere in the world.Raytheon is now building on a legacy of world-class aviation and space systems to penetrate new market opportunities in India.Overall,Raytheons international customers constitute an important part of our total business.The relative stability of internatio

74、nal defense outlays and the growing value of interoperability with U.S.and NATO systems are creating additional opportunities to extend Raytheon technology while contributing to a safer,more stable world.15Photo:Patriot launcherPatriot Air and Missile Defense SystemFor people in many regions around

75、the world,the word“Patriot”has become increasingly synonymous with“security.”Raytheons Patriot Air and Missile Defense System is in place on three continents to protect ground forces and civilians under threat of hostile attack from the air.From Europe to the Middle East and Asia,governments are now

76、 turning to the most advanced Patriot confi gurations.Today,our nine international Patriot partners consist of The Netherlands,Germany,Greece,Spain,Israel,Saudi Arabia,Kuwait,Japan and Taiwan.Successfully proven in combat during both Operation Desert Storm and Operation Iraqi Freedom,Patriot is a lo

77、ng-range,high-altitude,all-weather system designed to defeat advanced threats,including aircraft and cruise and tactical ballistic missiles.16Raytheon supports approximately 14,000 contractsthrough a unique level of technology andinnovation in three areas:our core markets,a commitment to Mission Ass

78、urance,and our Mission Systems Integration capability.In our core markets,Raytheons Sensing,C3I,Effects and Mission Support capabilities all serve a single purpose to help our customers overcome every challenge and achieve success on their own terms.By taking an integrated approach across the compan

79、y,we have brought our Mission Assurance promise of NoDoubt performance to unprecedented levels.17Mission Systems Integration refers to the integration of multiple systems to deliver a single solution that meets our customers most urgent mission needs.As a leader in technologies that are critical to

80、customer success,our domain knowledge enables solutions that allow us to identify the elements that need to be connected,while our systems engineering capabilities help our customers connect the elements to achieve the mission.On the following pages,you will learn more about each of our businesses a

81、nd the services and solutions they provide to meet the diverse needs of our customers.18Integrated Defense SystemsDan Smith,PresidentPhoto:(top)Zumwalt Ship Mission Center,Portsmouth,R.I.Photo:(bottom)IDS employees at the Missile Defense Center,Woburn,Mass.Integrated Defense Systems(IDS),with 2006 s

82、ales of$4.2 billion,is a leading provider of integrated joint battlespace and homeland security solutions.IDS largest single program is the Zumwalt Class Destroyer.Raytheon serves as the national team integrator for the ship,integrating Zumwalts sensing;command,control,communications and intelligenc

83、e;and effects capabilities with Mission Support.Raytheon has successfully designed and proven key technologies for Zumwalt.The Zumwalt destroyer will carry Raytheon-designed high-tech sonar,radar,computing and communications systems.The Raytheon Total Ship Computing Environment(TSCE)is the foundatio

84、n of the Navys Family of Ships strategy and will be implemented to improve the capability of the U.S.Navy fl eet.TSCE is refl ected in the Ship Mission Center,the“nerve center”of Zumwalt.Raytheon IDS is also providing mission solutions for a multilayered Ballistic Missile Defense System,integrating

85、surveillance,intelligence and missile defense solutions to protect the U.S.,deployed forces,friends and allies.Critical Raytheon capabilities include discrimination solutions and X-Band radar technologies.Intelligence and Information SystemsMike Keebaugh,President19Photo:(top)The new National Oceani

86、c and Atmospheric Administration Satellite Operations Facility,from which Raytheon engineers will plan,manage and control operations.Photo:(bottom)IIS employees scanning satellite communications in support of military operations,Falls Church,Va.Intelligence and Information Systems(IIS),with 2006 sal

87、es of$2.6 billion,provides U.S.government and international customers with innovative Command,Control,Communications and Intelligence(C3I)solutions to meet the demands for modern intelligence,surveillance and reconnaissance technologies to support military operations.IIS is rapidly establishing itse

88、lf as the premier provider of actionable environmental intelligence,as shown in 2006 by its work for the National Polar-orbiting Operational Environmental Satellite System(NPOESS).This advanced system will monitor global environmental conditions for weather analysis and forecasting in support of mil

89、itary operations,civil applications and scientifi c research.IIS role spans the entire NPOESS ground segment,including command,control and communications,interface data processing and fi eld terminalsall the way from design and development through operations and sustainment.Another 2006 milestone wa

90、s IIS attainment of a Capability Maturity Model Integration Level 3 rating for systems engineering,software engineering,integrated product and process development,and supplier sourcing.By achieving this rating,IIS placed in the top 3.5 percent of all appraisals recorded by the Carnegie Mellon Softwa

91、re Engineering Institute.Missile SystemsLouise Francesconi,President20Photo:(top)U.S.Navy F/A-18 loaded with AMRAAM,Sidewinder and HARM missiles.Photo courtesy of Daniel Rychcik.Photo:(bottom)MS employee in the Space Operations facility,Tucson,Ariz.Missile Systems(MS),with 2006 sales of$4.5 billion,

92、is a leading producer of missile systems for U.S.and allied forces.Focusing on rapid,high-quality,affordable solutions,the business provides revolutionary technologies to increase warfi ghting capability in the evolving battlespace.MS Advanced Medium-Range Air-to-Air Missile(AMRAAM)continues to be o

93、ne of the most carried air-to-air missiles in the U.S.arsenal and is now deployed in 32 countries around the world.Last year,MS also delivered the fi rst production rounds of the GPS-guided Excalibur projectile,providing unprecedented accuracy for U.S.Army and Marine Corps artillery,and it responded

94、 to urgent warfi ghter needs with a Land-Based Phalanx Weapon System to counter rockets,artillery and mortars.The business again demonstrated its advanced missile defense technologies with successful tests of its Exoatmospheric Kill Vehicle(EKV)and Standard Missile-3.Applying its technologies to new

95、 markets,Raytheon earned a homeland security contract award for MS Vigilant Eagle system,which uses directed energy to protect aircraft from shoulder-fi red missiles.Network Centric SystemsColin Schottlaender,President21Photo:(top)The Improved Target Acquisition System(ITAS)continues to meet warfi g

96、hter needs in operations around the world.Photo:(bottom)NCS team member testing an antenna feed for the Navy Multiband Terminal,Marlborough,Mass.Network Centric Systems(NCS),with 2006 sales of$3.6 billion,is driving transformation by providing networked systems and net-centric integration to militar

97、y,federal and civil customers worldwide.This years results refl ect high demand for the reconnaissance and fi re control systems NCS provides to support the warfi ghter in Iraq and Afghanistan.NCS also enjoyed success in developing new capabilities,including an active protection system,which will pr

98、otect military vehicles against rocket-propelled grenades and other threats.Considerable progress continues in other defense markets and in applying NCS innovative technology and capabilities in new markets,including highway tolling and border and homeland security.Another success that reinforces NC

99、S overall Command,Control,Communications and Intelligence(C3I)and network-centric operations capabilities is the Battle Control System fi elded in 2006.This program modernizes and expands NORADs(North American Aerospace Defense Command)ability to monitor all air traffi c entering and fl ying within

100、North Americas airspace to better protect against possible terrorist threats.Space and Airborne SystemsJon Jones,President22Photo:(top)Active Electronically Scanned Array(AESA)radar on F-15C,Elmendorf Air Force Base,Alaska.Photo courtesy of Brian Wolff.Photo:(bottom)SAS employees in the antenna test

101、 facility,El Segundo,Calif.Space and Airborne Systems(SAS),with 2006 sales of$4.3 billion,is a world leader in space and aviation sensing technology for radar and electro-optical infrared systems and a major provider of integrated solutions for domestic and international customers.SAS offers unmatch

102、ed situational awareness to aviators,integrating the Active Electronically Scanned Array(AESA)radar,the digital radar warning receiver,and the Advanced Targeting Forward-Looking Infrared(ATFLIR)pod.Strength as a systems integrator positions SAS to lead an international team that recently delivered t

103、he fi rst units of the Airborne Stand-Off Radar(ASTOR)program to the United Kingdom.The terrain-following and avoidance radars SAS provides for special operations aircraft further showcase the business as a customer-focused mission systems integrator and innovator.A world leader in advanced electro-

104、optical and infrared space sensors,SAS provides unparalleled actionable intelligence to Department of Defense,national and civil customers.Integrated with surveillance radar capabilities,SAS sensor suite makes the Global Hawk unmanned aircraft one of the worlds most effective providers of reliable,t

105、ime-critical data to our nations warfi ghters.Technical Services Bryan Even,President23Photo:(top)The cockpit simulator located in the V-22 Mission Systems Integration facility in Indianapolis,Ind.Photo:(bottom)TS engineers at Raytheons Mission Support facility in Burlington,Mass.Technical Services(

106、TS),with 2006 sales of$2 billion,provides technology solutions for defense,federal and commercial customers worldwide.The business specializes in counter-proliferation and counter-terrorism,base and range operations,customized engineering and manufacturing services,and Mission Support.Working closel

107、y with the customer for more than 20 years,TS has provided systems and software engineering solutions to ensure that the V-22 tiltrotor aircraft is ready to meet evolving mission requirements.Developing mission planning and maintenance-processing systems in concert with integrating additional hardwa

108、re and software capabilities into the aircraft are part of the TS role in ensuring V-22 mission readiness.TS multilingual,worldwide experience across a spectrum of training environments provides the capability to sense and predict customer needs and design effective training solutions.Scenario-drive

109、n,force-on-force training systems,part of the Live Training Program for the U.S.Army,provide realistic combat training for deploying soldiers.A proven depot-level reparables management solution provides increased readiness,reliability and quality for warfi ghters across the globe.TS state-of-the-art

110、 business-to-business technologies are used to effi ciently manage materiel and improve response and delivery time on the Secondary Reparable work for the U.S.Marine Corps.CommunityAt Raytheon were committed to creating lasting change through strategic charitable giving.We focus our giving on the co

111、mmunities where we live and work,addressing current needs and creating new opportunities.While our fi rst priority is math and science education,we also support other charitable causes through corporate and employee giving,scholarships and volunteerism.The Raytheon Disaster Relief Fund provides gran

112、ts for general disaster relief and for employees who have faced catastrophic events.Through our Fund in Support of Our Troops,we provide grants to benefi t American troops and their families.Our signature program in support of math and science education is MathMovesU,which provides scholarships and

113、grants to help students make the connection between math and exciting careers.We also provide scholarships to FIRST Robotics competitors who plan to major in math,science or technology in college.And through our Matching Gifts for Education Program,we double the value of contributions our employees

114、make to public and private schools,colleges and universities.We also participate in VolunteerMatch,a national Web-based program that unites Raytheon employee volunteers with nonprofit organizations such as MATHCOUNTS,which promotes middle school math.MathMovesU1325Photo:Middle school students from E

115、l Segundo,Calif.,are astronauts for the day during Raytheons El Segundo MathMovesU Day.Raytheons MathMovesU initiative is aimed at improving math and science education among middle school-agedstudents in America by inspiring them to getexcited about math.The MathMovesU program combines student inter

116、est in exciting careers with grant money and awards to generate excitement in math.In the first year of the program,Raytheon announced$1 million in student scholarships and teacher grants related to the MathMovesU initiative.While MathMovesU is most certainly an education program,its not based in th

117、e classroom but on the Internet,where students get their entertainment and information.At MathMovesU.com,middle school students,parents and teachers can go online for weekly math contests,scholarship information and curriculum materials from MATHCOUNTS,a leading promoter of middle school math achiev

118、ement.By highlighting“cool”careers,Raytheon hopes to make a difference in the lives of young students,showing them that excellence in math and science can lead to an exciting future.2006 Form 10-KUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-KANNUAL REPORT PURSUANT TO SE

119、CTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the fiscal year ended December 31,2006.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 Registrant as Specified

120、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 area code)Securities r

121、egistered 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 seasoned issuer,as define

122、d in Rule 405 of the Securities Act of1933.Yes No Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of theSecurities Exchange Act of 1934.Yes No Indicate by check mark whether the Registrant(1)has filed all reports required to be filed by

123、 Section 13 or 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 if disclosure of delinquent

124、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 amendment to this Form 10-K.Indicate by check mark whether t

125、he Registrant is a large accelerated filer,an accelerated filer or a non-accelerated filer.See definition of“accelerated filer and large accelerated filer”in Rule 12b-2 of the Securities Exchange Act of 1934.Large accelerated filer Accelerated filer Non-accelerated filer Indicate by check mark wheth

126、er the Registrant is a shell company(as defined in Rule 12b-2 of the Securities ExchangeAct of 1934).Yes No The aggregate market value of the voting stock held by non-affiliates of the Registrant as of June 25,2006,wasapproximately$19.8 billion.The number of shares of Common Stock outstanding as of

127、January 19,2007 was 446,193,000.Documents incorporated by reference and made a part of this Form 10-K:Portions of the Registrants Definitive Proxy Statement for its 2007 Annual Meeting of Stockholders are incorporatedby reference in Part III of this Form 10-K.Fin_001-108_8413.pdf 12/25/07 10:06:58 P

128、MINDEXPART IItem 1.Business.3Item 1A.Risk Factors.15Item 1B.Unresolved Staff Comments.23Item 2.Properties.23Item 3.Legal Proceedings.24Item 4.Submission of Matters to a Vote of Security Holders.25Executive Officers of the Registrant.25PART IIItem 5.Market for Registrants Common Equity and Related St

129、ockholder Matters and Issuer Purchases ofEquity Securities.28Item 6.Selected Financial Data.30Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.31Item 7A.Quantitative and Qualitative Disclosures About Market Risk.53Item 8.Financial Statements and Supplementa

130、ry Data.54Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.98Item 9A.Controls and Procedures.98Item 9B.Other Information.98PART IIIItem 10.Directors,Executive Officers and Corporate Governance.98Item 11.Executive Compensation.99Item 12.Security Ownership of

131、 Certain Beneficial Owners and Management and Related Stockholder Matters.99Item 13.Certain Relationships and Related Transactions,and Director Independence.99Item 14.Principal Accountant Fees and Services.99PART IVItem 15.Exhibits and Financial Statement Schedules.992Fin_001-108_8413.pdf 22/25/07 1

132、0:06:58 PMFin_001-108_8413.pdf 22/25/07 10:22:58 PMPART IITEM 1.BUSINESSGeneralRaytheon Company and its subsidiaries are an industry leader in defense and government electronics,space,informationtechnology and technical services.We design,develop,manufacture,integrate,support and provide a wide rang

133、e oftechnologically advanced products,services and solutions for governmental and commercial customers in the UnitedStates and abroad.We act as a prime contractor or major subcontractor on numerous defense and related programs forthe U.S.government,which accounted for 84%of our sales in 2006.We were

134、 founded in 1922 and are currently incorporated in the state of Delaware.We are the surviving company of the1997 merger of HE Holdings,Inc.and Raytheon Company.Our principal executive offices are located at 870 WinterStreet,Waltham,Massachusetts 02451.In December 2006,we entered into a definitive ag

135、reement to sell our wholly-owned subsidiary,Raytheon AircraftCompany,which constitutes substantially all of our Aircraft business segment with the exception of certain retaineditems.As a result,Raytheon Aircraft is presented as discontinued operations in this Form 10-K and,unless otherwiseindicated,

136、is not included in the discussion below,which pertains to our continuing operations.For further informationregarding Raytheon Aircraft and our discontinued operations,see“Note 2:Discontinued Operations”within Item 8 ofthis Form 10-K.Business SegmentsWe currently operate in six principal business seg

137、ments:?Integrated Defense Systems(IDS)?Intelligence and Information Systems(IIS)?Missile Systems(MS)?Network Centric Systems(NCS)?Space and Airborne Systems(SAS)?Technical Services(TS)We also have three other businesses which we combine and disclose as Other.Revenue and other financial informationre

138、garding our business segments is set forth on pages 40-46 of this Form 10-K.Integrated Defense Systems(IDS)IDS,headquartered in Tewksbury,Massachusetts,is a leading provider ofintegrated joint battlespace(e.g.space,air,surface and subsurface)and homeland security solutions.IDS leverages itscore doma

139、in knowledge and key capabilities in sensors,command and control,and effects,to deliver mission assuredsolutions for ballistic missile defense,air defense,naval and maritime,and homeland security applications,which enablesituational awareness and joint integrated fires.During 2006,IDS,as the prime m

140、ission systems equipment integrator for all electronic and combat systems of the DDG1000 Zumwalt Class Destroyer program(DDG 1000),continued to make significant progress on the program,providingkey deliverables and completing a number of major reviews and assessments.IDS also expanded its internatio

141、nalbusiness,particularly through sales of its Patriot Air&Missile Defense System,and continued to evolve its products andtechnologies for use in other markets,such as homeland security.For example,IDS is using its technology to provideadvanced spectroscopic portal nuclear detectors to a homeland sec

142、urity customer.IDS is also leveraging its radiofrequency capabilities to develop,with a partner,an economical and environmentally friendly method of extracting oilfrom oil shale reserves.IDS key customers include the U.S.Navy,Army,Air Force and Marine Corps,the U.S.Missile Defense Agency andDepartme

143、nt of Homeland Security.Key international customers include Japan,Saudi Arabia,Taiwan,Australia,Germany and the United Kingdom.3Fin_001-108_8413.pdf 32/25/07 10:06:58 PMFin_001-108_8413.pdf 32/25/07 10:22:58 PMIDS consists of the following business areas:?Future Naval Capability(FNC)FNC is the leade

144、r in the U.S.Navys Open Architecture initiative,serving asprime contractor and developer of the Navys newest and most capable combat system for the Zumwalt class destroyerunder the DDG 1000 Zumwalt Class Destroyer program.FNC is responsible for the design and production of DDG1000 developed mission

145、systems equipment,which includes radar,sonar,computing environment,software,hardwareand associated electronics systems.FNC expects to leverage the joint system integration capabilities and technologiesdeveloped for DDG 1000 to forward-fit future naval surface combatants and backfit the U.S.Navys fam

146、ily of ships.?IntegratedAirDefense(IAD)IAD provides integrated whole-life air defense systems which enablewarfighters to sense,detect and engage threats through air and ground-based sensors and command and controlsystems.IAD is also leading the development of netted sensor solutions which efficientl

147、y provide a single integratedpicture from data from non-collocated sensors.IAD produces systems and solutions such as the Patriot Air&MissileDefense System,a long-range,high-altitude system designed to defeat advance threats,including aircraft,tacticalballistic missiles and cruise missiles;Joint Lan

148、d Attack Cruise Missile Defense Elevated Netted Sensor(JLENS),atheater-based,advanced sensor system that provides long-endurance,over-the-horizon detection and trackingcapabilities required to defeat the threat of cruise missiles;and Surface Launched,Advanced Medium Range Air to AirMissile(SL-AMRAAM

149、),a state-of-the-art air defense system designed to defeat current and emerging cruise missilesand a wide range of air breathing threats.?Missile Defense(MD)MD provides joint system solutions and intelligence support for ballistic missile defense.MDs key capabilities and solutions include system int

150、egration,information management,fusion,discrimination,testand sensor systems.MD provides Early Warning Radars,which enable threat detection,tracking and classification,and the X-band Family-of-Radars,which enable precision tracking and discrimination of ballistic missile threats,forthe Ballistic Mis

151、sile Defense System(BMDS).?International OperationsThis business area provides whole-life systems and solutions to key internationalcustomers that deliver a wide range of capabilities in integrated air defense,missile defense and naval systems.Thisbusiness area also leverages tools,processes and sub

152、ject matter expertise developed on major U.S.programs to providesuch capabilities to IDS international locations,including Raytheon Anschtz in Germany and Raytheon Australia.This business area is involved in certain international Patriot Air&Missile Defense System and SL-AMRAAMprograms,and the Austr

153、alian Air Warfare Destroyer(AWD)program under which IDS provides system transmitters,associated hardware and spares for the AN/SPY-1D(V)radar for the AWD.?Maritime Mission Systems(MMS)MMS provides a broad array of sensors and effectors for anti-submarineand mine warfare mission areas,advanced combat

154、 systems for submarines and amphibious ships,high performancefire control systems for surface combatants and ship integration technologies for domestic and international naval andmaritime customers.MMS provides the BYG-1 combat system,an integrated system of tactical control,weaponscontrol and tacti

155、cal network subsystems,to all U.S.submarines,as well as Australias Collins class submarines.MMSalso serves as the U.S.Navys sole industrial partner on both heavyweight and lightweight torpedoes,providingmanufacturing,design engineering and support services expertise.?Joint Battlespace Integration(JB

156、I)JBI provides integrated capabilities in surveillance and multi-domainawareness,knowledge management,information fusion and interoperability with a broad range of existing productsto detect,identify,track and disseminate actionable intelligence.JBI produces the Relocatable Over The HorizonRadar(ROT

157、HR)system,a long range,land based,wide area surveillance system and the ATHENA Data Fusionsystem,an information infrastructure that enables the integration of a wide range of information from a variety ofsensors and other sources.Intelligence and Information Systems(IIS)IIS,headquartered in Garland,

158、Texas,is a leading provider ofnational and tactical intelligence systems and information solutions for U.S.and foreign government clients.IIS leveragesits command,control and communications technologies and its capabilities in intelligence and information systems toprovide integrated ground systems

159、for signal and image intelligence and weather and climate systems,command andcontrol solutions for air/space platforms,operations,maintenance and engineering(OM&E)services,and informationtechnology and homeland security solutions.4Fin_001-108_8413.pdf 42/25/07 10:06:59 PMFin_001-108_8413.pdf 42/25/0

160、7 10:22:58 PMDuring 2006,IIS continued to grow its classified business,gaining numerous contracts on major classified programs.IISalso continued to work on a broad range of cutting-edge programs,including developing the Distributed CommonGround System(DCGS)Integrated Backbone,providing worldwide sup

161、port for the U-2 reconnaissance aircraft,assistingthe National Aeronautics and Space Administration(NASA)with scientific and engineering services and creating newcontrol systems for unmanned vehicles.In addition,IIS earned a Capability Maturity Model Integration(CMMI)Level3 certification across the

162、business,the newest standard for benchmarking best practices for product and servicedevelopment in the defense industry.Operating in four key market areas,DoD/civil space,Intelligence,Surveillance and Reconnaissance(ISR),Federalinformation technology,and homeland security,IIS serves a variety of cus

163、tomers including,the U.S.Air Force and Navy,the National Oceanic and Atmospheric Administration(NOAA),NASA and the National Geospatial-Intelligence Agency(NGA),as well as other federal,civil,military and international customers.IIS also partners with the intelligencecommunity to provide intelligence

164、 solutions under numerous classified programs.IIS consists of the following business areas:?Strategic Intelligence Systems(SIS)SIS provides system engineering,development,integration and life cyclesupport of complex,large-scale,commercial-off-the-shelf-based systems for commercial and proprietary im

165、agingcustomers.Under a proprietary program,SIS provides program management and engineering support to the NationalReconnaissance Office.?National Systems(NS)NS provides systems and operational support for signals intelligence(SIGINT)andmulti-intelligence(multi-INT)missions.Areas of concentration inc

166、lude mission/resource management,real-timemission execution,signal processing and analysis,information management and knowledge discovery,and OM&Esupport.?Space Systems(SS)SS provides satellite command and control software and provides mission and resourcemanagement,end-to-end information and networ

167、k management,and modeling and simulation capabilities to itscustomers.SS is developing the fully integrated global ground system that speeds data delivery for the National Polar-orbiting Operational Environmental Satellite System(NPOESS),a satellite system used to monitor globalenvironmental conditi

168、ons and collect and disseminate data related to weather,atmosphere,oceans,land and near-space environment.?OperationalTechnologiesandSolutions(OTS)OTS provides information management systems,broadband broadcast systems and operations support through its diverse capabilities.These capabilities includ

169、emanaging state-of-the-art collection systems and products for human intelligence(HUMINT),managing largevolumes of information securely and reliably,and providing operations support to intelligence community customers.OTS works on numerous classified programs.?Raytheon Information Solutions(RIS)RIS

170、provides information technology solutions in high performanceand technical computing,enterprise systems,e-Commerce,logistics management,and scientific and engineering services.RIS is developing a self-verifying device combining biometrics and radio frequency technology under the US-VISITprogram,an i

171、ntegrated,automated system to track the entry and exit of visitors in and out of the U.S.?Tactical Intelligence Systems(TIS)TIS provides products and services relating to manned and unmannedSIGINT sensors,ground control of airborne SIGINT sensors,multi-INT ground systems,Unmanned Aerial Vehicle(UAV)

172、ground stations and Intelligence,Surveillance and Reconnaissance(ISR)battle space management.Inconnection with the U.S.Air Force Distributed Common Ground System(DCGS)10.2 program to modernize the AirForces distributed ISR systems,TIS developed the DCGS Integration Backbone(DIB),an open architecture

173、 designedto allow seamless intelligence data sharing and collaboration among the various military services and our allies.TheDIB is currently being used by all four U.S.military services and has been identified as the future standard for DoDISR systems.Missile Systems(MS)MS,headquartered in Tucson,A

174、rizona,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 airframes,5Fin_001-108_8413.pdf 52/25/07 10:06:59 PMFin_001-108_8413.pdf 52/25/07 10:22:58 PMguidance and navigation systems,high-resoluti

175、on sensors,targeting and netted systems,MS has developed and supports abroad range of cutting edge weapon systems that includes missiles,smart munitions,projectiles,kinetic kill vehicles,space vehicles and directed energy effectors.During 2006,MS continued to demonstrate its missile defense capabili

176、ty with several significant test successes,includingone of the sea-based system with Standard Missile-3 and one of the ground-based system that incorporates theExoatmospheric Kill Vehicle.MS also provided a rapid response to warfighter needs with a land-based Phalanx system tocounter rockets,artille

177、ry and mortar threats.In addition,MS continued to develop and evolve its technologies for newapplications and other markets,earning a Department of Homeland Security award for its Vigilant Eagle protectionsystem to protect commercial and military airfields from the threat of surface-to-air missiles.

178、MS major customers include the U.S.Navy,Army,Air Force,Marine Corps and the armed forces of more than 40 alliednations.MS consists of the following business areas:?Naval Weapon Systems(NWS)The NWS business area provides layered defense capability and naval surfacefire support for the navies of more

179、than 30 countries.NWS develops,manufactures and supports the Standard Missilefamily of weapons with capabilities ranging from anti-air warfare to ballistic missile defense.This business area alsoproduces the Phalanx Close-in Weapon System,the Rolling Airframe Missile and the Evolved SeaSparrow/Sparr

180、owfamily of missiles for ship self-defense against air and surface threats.It is also developing the Extended Range GuidedMunition,which will provide the U.S.Marine Corps with an extended range,precision accuracy fire support weaponusing an evolution of existing shipboard gun systems.NWS continues t

181、o evolve its products and technologies toencompass the full spectrum of threats,including the protection of land bases to counter terrorist threats.?StrikeThis business area provides products and services designed to enable U.S.Air Force and Navy customers toattack,suppress and destroy ground-based

182、targets,including the Joint Standoff Weapon,High-speed Anti-RadiationMissile,Maverick precision strike missile,Paveway family of laser-guided“smart”bombs and Tomahawk CruiseMissile,an advanced surface-or sub-launched cruise missile with loitering and network communication capability.This business ar

183、ea is also developing the Miniature Air Launched Decoy,a small,low-cost cruise missile that serves asa decoy to confuse enemy sensors.?Air-to-AirThis business area provides air dominance capability for U.S.forces and international partners throughits family of air-to-air missiles and airborne sensor

184、s.Programs include AIM-9X,a joint U.S.Navy and Air Forceprogram for the development and fielding of the latest member of the Sidewinder short-range missile family.Thisbusiness area also produces the HARM Targeting System and the Advanced Medium-Range Air-to-Air Missile(AMRAAM),a state-of-the-art,hig

185、hly dependable and battle proven air-to-air missile that also has a surface-to-airlaunch application.?Land CombatThis business area provides missiles to the U.S.Army and Marine Corps and more than 40 U.S.allies and is focusing on accelerating the deployment of precision munitions capability to land

186、combat forces andexpanding its mission support capabilities.This business area provides the Stinger weapon system for air defense,theTOW family of anti-armor and anti-fortification weapons,the Javelin fire-and-forget anti-tank weapon and Excalibur,a new GPS-guided projectile designed to provide orga

187、nic indirect precision fires for ground forces.It is alsodeveloping the Non-Line of Sight Launch System Precision Attack Missile,a networked weapon system for precisefires against moving and stationary targets.?Exoatmospheric Kill Vehicle(EKV)This business area focuses on producing the exoatmospheri

188、c killvehicle,the intercept component of the Ground Based Interceptor for the Ground-based Midcourse Defense system,designed to protect the U.S.against limited ballistic missile attacks and is part of the Ballistic Missile Defense System(BMDS).The EKV consists of a multi-spectral sensor in a flight

189、package,used to detect,discriminate and destroyincoming warheads carrying weapons of mass destruction.?Other MS business areas include Kinetic Energy Interceptors(KEI),Advanced Missile Defense/Directed Energy Weapons(AMD/DEW)and Advanced Programs.KEI focuses on designing and developing kinetic energ

190、y-based missiles that can6Fin_001-108_8413.pdf 62/25/07 10:06:59 PMFin_001-108_8413.pdf 62/25/07 10:22:59 PMintercept and destroyenemyballisticmissilesduringtheirboost/ascentandmid-coursephasesofflight.AMD/DEWpursuesopportunities in the missile defense and directed energy markets,including the devel

191、opment of new missile defensesolutions,NASA/space applications,modeling/simulation and discrimination capabilities,high power microwave and highenergy laser systems.Advanced Programs focuses on the development and early introduction of next generation end-to-endsystemsolutions,architecturesandmissio

192、ncapabilitiesforthewarfighter.Network Centric Systems(NCS)NCS,headquartered in McKinney,Texas,develops and produces net-centricmission solutions for networked sensors,command and control communications,and air traffic and homeland security.NCS capabilities include network centric operations,mission

193、systems integration and recognized excellence in groundsensors,communications,command and control,and air traffic control systems.During 2006,NCS acquired Houston Associates,Inc.,a developer and provider of mission-critical,high-performancenetworks,network-centric command and control infrastructure

194、applications and enterprise management services,andVirtual Technology Corporation,a provider of distributed systems software and systems engineering services andinteroperability solutions.Both companies complement NCS network systems capabilities portfolio.NCS also expandedits business in the emergi

195、ng homeland security market for border and perimeter security,winning a contract to developand implement the Perimeter Intrusion Detection System(PIDS)for the Port Authority of New York and New Jersey.NCS major customers include the U.S.Army,Air Force,Navy and Marine Corps,and the Federal AviationAd

196、ministration(FAA),as well as numerous international customers.NCS consists of the following business areas:?AirSpace Management and Homeland Security(AMHS)AMHS provides integrated communications,navigation,surveillance and air traffic management system solutions for both military and civil customers

197、,includingthe FAA and international customers in more than 50 countries.AMHS is leading the architecture development of theNextGen,which will provide net-centric solutions to significantly enhance the safety,efficiency and capacity of theU.S.air traffic control system.AMHS this year was awarded cont

198、racts to provide open road tolling systems for theFlorida Turnpike Toll System and the Texas Department of Transportation and continued to work on numeroussystems internationally.AMHS also provides solutions to the market for border and perimeter security,includingPIDS.?Integrated Communications Sys

199、tems(ICS)ICS offers wireless,high-bandwidth and transformationalcommunications solutions that enable connectivity for net-centric operations(NCO)and the Global InformationGrid(GIG).ICS solutions provide mission assurance to its customers with satellite,point-to-point and networkedcommunications serv

200、ices that are effective on land,sea and air.These solutions include the Enhanced PositionLocation Reporting System(EPLRS),an integrated networking system that provides robust,high-speed battlefieldcommunications for warfighters,and the U.S.Navy Multiband Terminal(NMT),a single terminal for the U.S.N

201、avysnext generation satellite communications.?Command and Control Systems(C2S)C2S develops and provides integrated solutions,systems andsupporting services to deliver network-centric warfare capabilities to the U.S.Army and Navy and other customers.C2S agile and responsive integrated command and con

202、trol systems provide functionality for such solutions as thePersistent Surveillance and Dissemination System of Systems(PSDS2),which utilizes innovative commercialoff-the-shelf technologies to integrate existing field systems,forming a contextual picture upon which the warfightercan act.C2S also ser

203、ves as the U.S.Armys Future Combat Systems(FCS)Ground Sensor Integrator(GSI),managingand integrating sensor and spiral development of future netted battlefield capabilities.?Combat Systems(CS)CS provides integrated ground-based surveillance and target engagement solutionsdesigned to provide a signif

204、icant advantage to the U.S.Army and Marine Corps warfighters.CS is developing groundsensor capabilities for the FCS,including the new Active Protection System,a key element in the full-spectrum suite of“hit avoidance”technologies.In addition,CS provides Long Range Advanced Scout Surveillance System(

205、LRAS3),along-range multi-sensor system which provides the ability to detect,identify and geo-locate distant targets.?PrecisionTechnologiesandComponents(PTC)PTC provides precision optical and electronicsolutions,electronic hardware and software products that enhance the interoperability of communicat

206、ions systems7Fin_001-108_8413.pdf 72/25/07 10:06:59 PMFin_001-108_8413.pdf 72/25/07 10:22:59 PMand a broad range of imaging capabilities,including visible to infrared focal plane arrays for thermal imaging,earthremote sensing and astronomy applications from its Raytheon Vision Systems and ELCAN prod

207、uct line.PTC alsoprovides design and manufacturing of strategic mechanical products and services through its Raytheon PrecisionManufacturing product line.?Thales-Raytheon Systems,LLC(TRS)TRS is a joint venture between Thales Group and Raytheon.TRScombines the two companies capabilities in Air Comman

208、d and Control Systems(ACCS),Air Operations Centers,Battlefield Weapon Locating Radar and Military Air Surveillance Radar to provide cost-effective solutions for militaryair operations centers and joint operations centers.TRS builds the Firefinder Weapon Locating Radar system for theU.S.Army and inte

209、rnational customers,as well as the U.S.Battle Control System(BCS).?Other NCS business areas include Raytheon Systems Limited(RSL),Raytheons U.K.subsidiary,and RaytheonCanada Limited(RCL).RSL designs,develops and manufactures a wide range of advanced systems for network-enabled operations,safety crit

210、ical control functions and precision systems for customers such as the U.K.Ministry ofDefence and commercial air traffic control organizations across the world.Programs include Joint Effects TacticalTargeting System(JETTS),supported by NCS.RSL also supports the U.K.activities of Raytheons other busi

211、nesssegments.RCL provides persistent surveillance radar for air traffic management systems for the U.S.Air Force,theFAA and other international air navigation service providers.Space and Airborne Systems(SAS)SAS,headquartered in El Segundo,California,is a leader in the design anddevelopment of integ

212、rated systems and solutions for advanced missions,including traditional and non-traditionalintelligence,surveillance and reconnaissance,precision engagement,unmanned aerial operations,special forcesoperations and space.Leveraging advanced concepts,state-of-the-art technologies and mission systems kn

213、owledge,SASprovides electro-optic/infrared sensors,airborne radars for surveillance and fire control applications,lasers,precisionguidance systems,electronic warfare systems and space-qualified systems for civilian and military applications.During 2006,SAS,as the prime contractor of a team with EADS

214、 CASA North America,submitted a major proposal forthe Joint Cargo Aircraft(JCA)program managed by the U.S.Army and Air Force,which we anticipate will be decided inearly 2007.The JCA will be a new transport aircraft that can perform rapid-response intra-theater missions with cargo,equipment and soldi

215、ers,and would represent a key Mission System Integration(MSI)role for the business.The businessalso won a contract for system design and development,including an option for six low-rate initial production units,ofthe Silent Knight Radar,a K-band terrain-following and terrain-avoidance multi-mode rad

216、ar to help U.S.SpecialOperations aircraft infiltrate dangerous areas undetected and at night with reduced risks of crashing while flying at lowaltitudes.Additionally,SAS won a risk reduction contract for the Alternative Infrared Space System(AIRSS),a programthat could ultimately replace the Space Ba

217、sed Infrared System(SBIRS)High.SAS predominantly provides products and services to the U.S.Navy,Air Force and Army,as well as classified andinternational customers.SAS consists of the following business areas:?Air Combat Avionics(ACA)ACA provides advanced fire control radar,processor solutions and t

218、echnologiesto customers including the U.S.Navy,U.S.Air Force and foreign governments.ACA provides both mechanicallyscanned radars and Active Electronically Scanned Array(AESA)radars for the U.S.Air Forces F-15 and B-2 aircraftand for the U.S.Navys F/A-18 fighter jet.In addition,ACAs advanced airborn

219、e processors form the basis of themission computer/signal processing systems in the F-16,F/A-22 and F-35 aircraft.?Strategic Systems(SS)SS provides space and space-qualified sensor payloads for intelligence,defense and civilspace applications.This business areas customers and programs are predominan

220、tly classified.Non-classifiedprograms include the Space Tracking and Surveillance System(STSS),a system for midcourse tracking anddissemination of objects,and the Visible Infrared Imager Radiometer Suite(VIIRS),which will provide advancedimaging and radiometric capabilities onboard the National Pola

221、r-orbiting Operational Environmental Satellite System(NPOESS).8Fin_001-108_8413.pdf 82/25/07 10:06:59 PMFin_001-108_8413.pdf 82/25/07 10:22:59 PM?Precision Attack and Surveillance Systems(PASS)PASS provides maritime surveillance radars,terrainfollowing/terrain avoidance(TF/TA)radars and electro-opti

222、cal and infrared sensors for surveillance,reconnaissanceand targeting mission support,including the APY-10 radar for the U.S.Navys Multi-Mission Maritime Aircraft andthe ASQ-228 ATFLIR targeting pod for the F/A-18.?Integrated Airborne Systems(IAS)IAS provides advanced intelligence,surveillance and r

223、econnaissance(ISR)sensors and system solutions for domestic and international customers.IAS provides the Enhanced IntegratedSensor Suite(EISS)for the Global Hawk unmanned aerial system,which enables Global Hawk to scan largegeographic areas and produce outstanding high-resolution reconnaissance imag

224、ery.IAS also provides through RSL thedual mode Synthetic Aperture Radar/Moving Target Indicator(SAR/MTI)sensor for the Airborne Stand-Off Radar(ASTOR)program for the U.K.Ministry of Defence,which enables high-resolution images and the monitoring ofhostile forces.Additionally,IAS is expanding its cap

225、abilities in Mission Systems Integration with pursuits such as JointCargo Aircraft(JCA).?Electronic Warfare Systems(EWS)EWS provides aircraft and shipboard self-protection systems to counterthreats and enhance platform and force survivability,including ALE-50 and Advanced Towed Decoys,andALR-67(V)3

226、Radar Warning Receiver.?Other SAS business areas include Advanced Products Center(APC),Advanced Concepts and Technologies(ACT)andIntegrated Technology Programs(ITP).APC designs and manufactures high performance transmit/receive modulesand transmit/receive integrated microwave modules(T/RIMMs)for mul

227、tiple AESA radars.ACT conducts internalresearch and development for SAS and contract research and development for customers,including the U.S.Air ForceResearch Lab and the Defense Advanced Research Projects Agency(DARPA).ITP provides a wide range ofstate-of-the-art product families and engineering s

228、ervices in support of the DoDs recent efforts to transform thecapabilities and structure of the U.S.armed forces,including a variety of sophisticated GPS systems and anti-jamsolutions for many customers including the U.S Air Force and Navy.Technical Services(TS)TS,headquartered in Reston,Virginia,pr

229、ovides technology solutions for defense,federalgovernment and commercial customers worldwide,specializing in Mission Supporttotal life-cycle support that predictscustomer needs,senses potential problems and responds proactively with appropriate solutions,as well as homelandsecurity,customized engine

230、ering and manufacturing services and base and range operations.TS also provides lifecyclelogistics support to Raytheon products and systems in the field.During 2006,TS continued deploying its Mission Support ReadiLogTMIntegrated Solution Sets,including condition-based maintenance;integrated informat

231、ion management;integrated supply chain management;logistics modeling,simulation and visualization;obsolescence management;performance-based logistics;total asset visibility;training andperformance solutions.These solution sets are Raytheon technologies for implementing Mission Support and aredesigne

232、d to enable customers to more efficiently address their logistics transformation challenges.TS customers include all branches of the U.S.Armed Forces,NASA,the FAA,the U.S.National Science Foundation,Department of Energy,the Transportation Security Administration and other agencies of the Department

233、of HomelandSecurity,and certain international governments.TS consists of the following business areas:?System and Product Support Solutions(SPSS)SPSS,which leads Mission Support,provides logisticssystems engineering,as well as civil,logistics,reliability and maintenance and safety engineering.SPSS a

234、lso providestechnical,installation,maintenance and site integration work on major command and control systems includingtelecommunication upgrades at more than 5,000 FAA facilities.SPSS also specializes in the installation,diagnostics,maintenance and upgrades of Raytheon products and systems at custo

235、mer facilities and works with the FAA andTransportation Security Administration on certain domestic homeland security programs.?LogisticsandTrainingSystems(LTS)LTS provides logistics,supply chain management,training,classified and unclassified operations and maintenance support services.Programs inc

236、lude U.S.Army Live Training,in9Fin_001-108_8413.pdf 92/25/07 10:06:59 PMFin_001-108_8413.pdf 92/25/07 10:22:59 PMwhich LTS provides engineering and technical services,lifecycle management and operations and maintenanceservices in support of field training at more than 20 sites.LTS also works with th

237、e U.S.Defense Threat ReductionAgency on international counter-proliferation and counter-terrorism programs.?Engineering&Production Support(EPS)EPS provides a broad spectrum of engineering and limited-production services,including Capability Maturity Model Integration(CMMI)level 5 software engineerin

238、g and level3 systems engineering.EPS participates with the software support activity for the V-22 platform.Additionally,EPSprovides mission systems and avionics software for the U.S.Marine Corps MV-22 assault aircraft and the U.S.AirForces CV-22 aircraft.EPS also designed and provides integration an

239、d field support for the Shared ReconnaissancePod,which provides real-time,high-resolution imaging to F/A-18E/F air crews and air operation commanders insupport of pre-mission intelligence,post-mission damage assessment and real-time target tasking and retasking.?Depot Operations(DO)DO provides full

240、lifecycle support for electronics and weapons,both sea and landbased.DO performs support on numerous platforms including the WSC-6 surface search radar,SeasparrowlauncherMK 29 Guided Missile Launching System,Kidd Class Destroyer and the U.S.Navys Extremely HighFrequency Satellite Program,a performan

241、ce-based logistics program.DO also supports the National Ignition Facilityat Lawrence Livermore National Laboratory,which develops advanced laser and fusion technologies.?Other TS business areas include Raytheon Australia and Raytheon Polar Services(Raytheon Polar).RaytheonAustralia is a Mission Sup

242、port and mission systems integration provider to the Australian Government,managing theentire operations and maintenance requirements of the Canberra Deep Space Communication Complex andproviding design,integration and lifecycle operations and maintenance services for the Royal Australian DefenseFor

243、ces aerospace capability.Raytheon Polar specializes in providing science support,operations,informationtechnology and communications systems,logistics and facilities engineering and construction services and support tothe United States Antarctic Program(USAP)for the National Science Foundation.Other

244、Other consists of the following businesses:?Flight Options LLC(FO)FO offers services in the fractional and membership segment in the for hire jetindustry,including programs for ownership shares of new and used aircraft,aircraft leasing and prepaid hourlymembership programs.?Raytheon Airline Aviation

245、 Services LLC(RAAS)RAAS manages the long-term orderly wind-down ofour commuter aircraft business,which includes aircraft in inventory,leased aircraft and notes receivable for financedaircraft.?Raytheon Professional Services LLC(RPS)RPS provides integrated learning solutions to commercial andgovernme

246、nt organizations worldwide.Sales to the U.S.GovernmentOur net sales to the U.S.government,principally the DoD,were$17.0 billion in 2006,$15.7 billion in 2005 and$14.6billion in 2004,representing 84%,83%and 82%of total sales in 2006,2005 and 2004,respectively.Included in U.S.government sales were for

247、eign military sales of$1.3 billion,$1.1 billion and$1.0 billion in 2006,2005 and 2004,respectively.Government Contracts and RegulationWe act as a prime contractor or major subcontractor for numerous U.S.government programs.As a result,we are subject toextensive regulations and requirements of the U.

248、S government agencies and entities which govern these programs,includingwith respect to the award,administration and performance of contracts under such programs.We are also subject to certainunique business risks associated with the U.S.government program funding and appropriations and government c

249、ontractsand with supplying technologically-advanced,cutting edge defense-related products and services to the U.S.government.U.S.government contracts generally are subject to the Federal Acquisition Regulation(FAR),which sets forth policies,procedures and requirements for the acquisition of goods an

250、d services by the U.S.government,agency-specificregulations that implement or supplement FAR,such as the DoDs Defense Federal Acquisition Regulation(DFAR)and10Fin_001-108_8413.pdf 102/25/07 10:07:00 PMFin_001-108_8413.pdf 102/25/07 10:23:00 PMother applicable laws and regulations.These regulations i

251、mpose a broad range of requirements,many of which areunique to government contracting,including various procurement,import and export,security,contract pricing andcost,contract termination and adjustment,and audit requirements.A contractors failure to comply with theseregulations and requirements co

252、uld result in reductions of the value of contracts,contract modifications or termination,and the assessment of penalties and fines and lead to suspension or debarment,for cause,from government contractingor subcontracting for a period of time.In addition,government contractors are also subject to ro

253、utine audits andinvestigations by U.S.government agencies such as the Defense Contract Audit Agency(DCAA).These agencies review acontractors performance under its contracts,cost structure and compliance with applicable laws,regulations andstandards.The DCAA also reviews the adequacy of and a contrac

254、tors compliance with its internal control systems andpolicies,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

255、 Factors”of this Form 10-K.U.S.government contracts include both cost reimbursement and fixed price contracts.Cost reimbursement contractsprovide for the reimbursement of allowable costs plus the payment of a fee.These contracts fall into three basic types:(i)cost plus fixed fee contracts which prov

256、ide for the payment of a fixed fee irrespective of the final cost of performance,(ii)cost plus incentive fee contracts which provide for increases or decreases in the fee,within specified limits,basedupon actual results as compared to contractual targets relating to such factors as cost,performance

257、and delivery schedule,and(iii)cost plus award fee contracts which provide for the payment of an award fee determined at the discretion of thecustomer based upon the performance of the contractor against pre-established criteria.Under cost reimbursement typecontracts,the contractor is reimbursed peri

258、odically for allowable costs and is paid a portion of the fee based on contractprogress.Some costs incident to performing contracts have been made partially or wholly unallowable for reimbursementby statute,FAR or other regulation.Examples of such costs include charitable contributions,certain merge

259、r andacquisition costs,lobbying costs and certain litigation 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 specific scope of work for a fixed price and as a result,benefi

260、ts 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 targets upto a negotiated ceiling price(which is higher than

261、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 objectives are met.Under firm fixed-price and fixed-priceincentiv

262、e 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 undergovernment contracts.The remaining amount,including profits or incentive fees,is

263、billed upon delivery and acceptanceof end items under the contract.For a discussion of certain risks associated with fixed price contracts,see Item 1A“RiskFactors”of this Form 10-K.U.S.government contracts generally also permit the government to terminate the contract,in whole or in part,withoutprio

264、r 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 allowance forprofit on the work performed.If a contract is terminated for default,the

265、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 hadany material adverse effect upon our operations or financial condition in light of our total government and defensebusiness.For a discussi

266、on 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 on a fiscal year basis even tho

267、ugh a program may extend across several fiscal years.Consequently,programs are often only partially funded initially and additional funds are committed only as Congress makesfurther appropriations.The contracts and subcontracts under a program generally are subject to termination or adjustmentif app

268、ropriations for such programs are not available or change.The U.S.government is required to adjust equitably acontract price for additions or reductions in scope or other changes ordered by it.For a discussion of the risks associatedwith program funding and appropriations,see Item 1A“Risk Factors”an

269、d“Overview”within Item 7 of this Form 10-K.11Fin_001-108_8413.pdf 112/25/07 10:07:00 PMFin_001-108_8413.pdf 112/25/07 10:23:00 PMIn addition,because we are engaged in supplying technologically-advanced,cutting edge defense-related products andservices to the U.S.government,we are subject to certain

270、business risks,some of which are specific to our industry.Theserisks include:the cost of obtaining and retaining trained and skilled employees;the uncertainty and instability of pricesfor raw materials and supplies;the problems associated with advanced designs,which may result in unforeseentechnolog

271、ical difficulties and cost overruns;and the intense competition and the constant necessity for improvement infacilities and personnel training.Our sales to the U.S.government may be affected by changes in procurement policies,budget considerations,changing concepts of national defense,political deve

272、lopments abroad and other factors.SeeItem 1A“Risk Factors”and“Overview”within Item 7 of this Form 10-K for a more detailed discussion of these and otherrelated risks.We,principally through our IIS and SAS business segments,are also involved in government programs which areclassified by the U.S.gover

273、nment and cannot be specifically described 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 oth

274、er government programsand products.We are subject to similar government regulations and contract requirements with respect to our sales to non-U.S.customers.See“International Sales”on page 13 of this Form 10-K for more information regarding our sales outside ofthe U.S.and Item 1A“Risk Factors”for a

275、discussion of the risks associated with international sales.See“Sales to the U.S.Government”on page 10 of this Form 10-K for information regarding the percentage of ourrevenues generated from sales to the U.S.government.BacklogOur backlog of orders was$33.8 billion at December 31,2006 and$31.5 billi

276、on at December 31,2005.The 2006 amountincludes backlog of approximately$29.9 billion from the U.S.government compared with$27.0 billion at the end of2005.Approximately$3.5 billion and$0.4 billion of the 2006 backlog amount represents direct foreign governmentbacklog and non-government foreign backlo

277、g,respectively.Approximately$18.2 billion of the 2006 year-end backlog isnot expected to be filled during the following twelve months.These amounts include both funded backlog(unfilled firmorders for products for which funding has been both authorized and appropriated)and unfunded backlog(firm order

278、sfor which funding has not yet been appropriated).For additional information related to backlog figures,see“SegmentResults”within Item 7 of this Form 10-K.Research and DevelopmentWe conduct extensive research and development activities to continually enhance our existing products and services anddev

279、elop new products and services to meet our customers changing needs and requirements and to address new marketopportunities.During 2006,we expended$464 million on research and development efforts compared with$430 millionin 2005 and$413 million in 2004.These expenditures principally have been for pr

280、oduct development for the U.S.government,including bid and proposal efforts related to government programs.We also conduct funded research anddevelopment activities under government contracts which are included in net sales.For additional information related toour research and development activities

281、,see“Note 1:Accounting Policies”within Item 8 of this Form 10-K.Raw Materials,Suppliers and SeasonalityWe are dependent upon the delivery of materials by suppliers and the assembly of major components and subsystems bysubcontractors used in our products.Some products require relatively scarce raw ma

282、terials.In addition,in connectionwith our government and defense business,we must comply with specific procurement requirements which may,ineffect,limit the suppliers and subcontractors we may utilize.In some instances,for a variety of reasons,we are dependenton sole-source suppliers.We enter into l

283、ong-term or volume purchase agreements with certain suppliers and take otheractions to ensure the availability of needed materials,components and subsystems.We generally have not experiencedmaterial difficulties in procuring the necessary raw materials,components and other supplies for our products.

284、In recent years,our revenues in the second half of the year have generally exceeded revenues in the first half.The timingof government awards,the availability of government funding and product deliveries are among the factors affecting theperiods in which revenues are recorded.We expect this trend t

285、o continue in 2007.12Fin_001-108_8413.pdf 122/25/07 10:07:00 PMFin_001-108_8413.pdf 122/25/07 10:23:00 PMCompetitionWe directly participate in most major areas of development in the defense and government electronics,space,information technology and technical services and support markets.Technical s

286、uperiority,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 extensive or

287、 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 a result of

288、 thisconsolidation,we frequently partner on various programs with our major suppliers,some of whom are,from time totime,competitors on other programs.Patents and LicensesWe own an intellectual property portfolio which includes,by way of example,many United States and foreign patents,aswell as unpate

289、nted know-how,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 also license our intellectual property to others.Whil

290、e 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 material adverse effect on ourbusiness,taken as a whole

291、.EmploymentAs of December 31,2006 and December 31,2005,we had approximately 80,000 employees,including the employees ofRaytheon Aircraft.Approximately 15%of our employees are unionized.We consider our union-managementrelationships to be generally satisfactory.However,from November 2006 to January 20

292、07,members of the InternationalAssociation of Machinists at a Missile Systems site conducted a work stoppage.During 2006,no other work stoppageshave occurred at any of our sites.In addition,in March 2006,pilots at Flight Options voted to be represented by theInternational Brotherhood of Teamsters.Fl

293、ight Options is engaged in good faith negotiations with the union to reach amutually acceptable initial labor agreement for its pilots.International SalesOur sales to customers outside the U.S.were$3.7 billion or 18%of total sales in 2006,$3.4 billion or 18%of total sales in2005 and$3.3 billion or 1

294、8%of total sales in 2004.Included in sales to customers outside the U.S.were foreign militarysales through the U.S.government of$1.3 billion,$1.1 billion and$1.0 billion,in 2006,2005 and 2004,respectively.International sales were principally in the fields of air defense systems,air traffic control s

295、ystems,electronic equipment,computer software and systems,personnel training,equipment maintenance and microwave communication.Generally,we finance our foreign subsidiary working capital requirements in the applicable countries.Sales and income frominternational operations and investments are subjec

296、t to changes in currency values,domestic and foreign governmentpolicies(including requirements to expend a portion of program funds in-country)and regulations,embargoes andinternational hostilities.Exchange restrictions imposed by various countries could restrict the transfer of funds betweencountri

297、es and between Raytheon and its subsidiaries.We have acted to protect ourself against most undue risks throughinsurance,foreign exchange contracts,contract provisions,government guarantees or progress payments.See revenuesderived from external customers and long-lived assets by geographical areas se

298、t forth in“Note 15:Business SegmentReporting”within Item 8 of this Form 10-K.In connection with certain foreign sales,we utilize the services of sales representatives 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

299、 license by either the U.S.Department ofState under the Arms Export Control Act of 1976(formerly the Foreign Military Sales Act),the U.S.Department ofCommerce under the Export Administration Act and its implementing regulations as kept in force by the InternationalEmergency Economic Powers Act of 19

300、77(“IEEPA”),or the U.S.Department of the Treasury under IEEPA or theTrading with the Enemy Act of 1917.Such licenses may be denied for reasons of U.S.national security or foreign policy.In the case of certain exports of defense equipment and services,the Department of State must notify Congress at l

301、east 1513Fin_001-108_8413.pdf 132/25/07 10:07:00 PMFin_001-108_8413.pdf 132/25/07 10:23:00 PMor 30 days(depending on the identity of the country that will utilize the equipment and services)prior to authorizingsuch exports.During that time,the Congress may take action to block or delay a proposed ex

302、port by joint resolutionwhich is subject to Presidential veto.Additional information regarding the risks associated with our international business is contained in Item 1A“RiskFactors”of this Form 10-K.Environmental RegulationOur operations are subject to and affected by a variety of federal,state a

303、nd 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 formerly ownedoperating facilities or at sit

304、es 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 incurred in the future due to the uncertain

305、ties regarding theextent of the required cleanup and the status of the law,regulations and their interpretations.In order to assess the potential impact on our financial statements,management estimates the possible remediation coststhat reasonably could be incurred by us.Such estimates take into con

306、sideration the professional judgment of ourenvironmental professionals and,when necessary,consultation with outside environmental specialists.If we are ultimately found to have liability at those sites where we have been designated a PRP,we expect that the actualcosts of remediation will be shared w

307、ith 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 basis,the costs and expenses for investigation and remediation of hazardous materials.Under existing environm

308、ental laws,however,responsible parties may be jointly and severally liable and,therefore,potentially liable for the full cost offunding such remediation.In the unlikely event that we are required to fund the entire cost of such remediation,thestatutory framework provides that we may pursue rights of

309、 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 possibility that we may recover some of these environmental costs from insurance policies or from other PRPs,because n

310、either manner of recovery is deemed probable.We manage various government-owned facilities on behalf of the U.S.government.At such facilities,environmentalcompliance and remediation costs have historically been the responsibility of the government and we relied(andcontinue to rely with respect to pa

311、st practices)upon government funding to pay 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 th

312、econtractor,depending on the contract and the 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 violation of theFederal Clean

313、 Air Act or the Clean Water Act,the facility or facilities involved in the violation would be placed by theEPA on the“Excluded Parties List”maintained by the Government Services Administration.The listing would continueuntil the EPA concluded that the cause of the violation had been cured.Listed fac

314、ilities cannot be used in performing anyU.S.government contract awarded during any period of listing by the EPA.Additional information regarding the effect of compliance with environmental protection requirements and theresolution of environmental claims against Raytheon and its operations is contai

315、ned in Item 1A“Risk Factors,”Item 3“Legal Proceedings,”“Commitments and Contingencies”within Item 7 and“Note 12:Commitments andContingencies”within Item 8 of this Form 10-K.Available Information and Stock Exchange CertificationOur Internet address is .The content on our website is available for info

316、rmation purposes only.Itshould not be relied upon for investment purposes,nor is it incorporated by reference into this Form 10-K.14Fin_001-108_8413.pdf 142/25/07 10:07:00 PMFin_001-108_8413.pdf 142/25/07 10:23:00 PMWe make available free of charge on or through our Internet website under the headin

317、g“Investor Relations,”our annualreport on Form 10-K,quarterly reports on Form 10-Q,current 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.Copies of our key cor

318、porate governance documents,including our Governance Principles,Certificate ofIncorporation,By-laws and charters for the Audit Committee,Management Development and Compensation Committee,Governance and Nominating Committee and Public Affairs Committee of Board of Directors and code of ethics entitle

319、d“Standards of Business Ethics and Conduct”are also available on our website.Stockholders may request free copies of thesedocuments from the Investor Relations Department by writing to Raytheon Company,Investor Relations,870 WinterStreet,Waltham,MA 02451,or by calling(781)522-5123 or by sending an e

320、mail request to .We filed our annual CEO certification with the New York Stock Exchange on May 25,2006.ITEM 1A.RISK FACTORSThis Form 10-K and the information we are incorporating by reference contain forward-looking statements within themeaning of federal securities laws,including information regard

321、ing our anticipated sale of Raytheon Aircraft Company,2007 financial outlook,future plans,objectives,business prospects and anticipated financial performance.You canidentify these statements by the fact that they include words such as“will,”“believe,”“anticipate,”“expect,”“estimate,”“intend,”“plan,”

322、or variations of these words,or similar expressions.These forward-looking statements are notstatements of historical facts and represent only our current expectations regarding such matters.These statementsinherently involve a wide range of known and unknown uncertainties.Our actual actions and resu

323、lts could differmaterially from what is expressed or implied by these statements.Specific factors that could cause such a differenceinclude,but are not limited to,those set forth below and other important factors disclosed previously and from time totime in our other filings with the Securities and

324、Exchange Commission.Given these factors,as well as other variables thatmay affect our operating results,you should not rely on forward-looking statements,assume that past financialperformance will be a reliable indicator of future performance,nor use historical trends to anticipate results or trends

325、 infuture periods.We expressly disclaim any obligation or intention to provide updates to the forward-looking statementsand the estimates and assumptions associated with them.The consummation of our sale of Raytheon Aircraft Company is subject to risks and uncertainties,including thesatisfaction or

326、waiver of specified closing conditions by both parties.In December 2006,we entered into a definitive agreement to sell our wholly-owned subsidiary,Raytheon AircraftCompany.The transaction is subject to certain closing conditions,including the receipt of certain regulatory approvalsand the absence of

327、 events occurring that would have a material adverse effect(as defined in the definitive agreement)onRaytheon Aircraft,and is expected to be consummated during the first half of 2007.In the event that the RaytheonAircraft sale,as contemplated,is not consummated,Raytheon Aircrafts business could be n

328、egatively impacted bycustomer and employee concerns arising from the uncertainty of the situation.Additionally,the market value of ourcommon stock,which may assume and reflect the consummation of the announced Raytheon Aircraft sale,may fluctuateand be volatile.We depend on the U.S.government for a

329、significant portion of our business and changes in government defense spendingcould have severe consequences on our financial position,results of operations and business.Raytheon Aircraft,which derives a substantial majority of its revenues from the sale of business aircraft to commercialcustomers,i

330、s our only principal business that is not predominantly a government defense business.Accordingly,in theevent that our sale of Raytheon Aircraft is consummated,our dependence upon the U.S.government for business wouldincrease.In 2006,with Raytheon Aircraft presented as discontinued operations and th

331、erefore no longer included in ournet sales,U.S.government sales accounted for approximately 84%of our total net sales.U.S.government sales includedforeign military sales of$1.3 billion,$1.1 billion and$1.0 billion in 2006,2005 and 2004,respectively.Our revenues from the U.S.government largely result

332、 from contracts awarded to us under various U.S.governmentprograms,primarily defense-related programs.The funding of our programs is subject to the overall U.S.governmentbudget and appropriation decisions and processes which are driven by numerous factors,including geo-political events15Fin_001-108_

333、8413.pdf 152/25/07 10:07:00 PMFin_001-108_8413.pdf 152/25/07 10:23:01 PMand macroeconomic conditions,and are beyond our control.While the overall level of U.S.defense spending hasincreased in recent years for numerous reasons,including increases in funding of operations in Iraq and Afghanistan andthe U.S.Department of Defenses military transformation initiatives,we can give no assurance that such