PAGE 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K
/X/ Annual Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [Fee Required] for the fiscal year ended
December 31, 1993.
/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 [No Fee Required] for the
transition period from............... to ..............
Commission File Number 1-2833
RAYTHEON COMPANY
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 04-1760395
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S.
Employer Identification No.)
141 SPRING STREET, LEXINGTON, MASSACHUSETTS 02173
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (617) 862-6600
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock, $1.00 par value New York Stock Exchange
Preferred Stock, No par value Chicago Stock Exchange
Pacific Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes ..X. No ...
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
The aggregate market value of the voting stock held by non-affiliates of
the Registrant, as of February 27, 1994, was approximately
$8,310,052,324. For purposes of this disclosure, non-affiliates are
deemed to be all persons other than members of the Board of Directors of
the Registrant.
Number of shares of Common Stock outstanding as of February 28, 1994:
135,074,691<PAGE>
PAGE 2
Documents incorporated by reference and made a part of this Form 10-K:
Portions of Raytheon's Annual Report to Stockholders Part I, Part II,
for the fiscal year ended December 31, 1993 Part IV
Portions of the Proxy Statement for Raytheon's Part III
1994 Annual Meeting which will be filed with the
Commission within 120 days of the close of
Raytheon's fiscal year<PAGE>
PAGE 3
PART I
ITEM 1. BUSINESS
GENERAL
Raytheon is a diversified, international, multi-industry, technology-
based company. Its principal business is the design, manufacture and sale
of electronic devices, equipment and systems for government and commercial
use. Through a diversification program begun in 1964, Raytheon has
expanded into aircraft products, energy and environmental services, major
appliances and textbook publishing. In recent years, the Company's
strategy has been to strengthen its commercial businesses through
consolidation, operational improvement and acquisitions and to diversify
core defense technologies into commercial markets while remaining a strong
defense company.
Sales to the United States Government (the "Government"), principally to
the Department of Defense, were $4.501 billion in 1993 and $4.666 billion
in 1992 representing 48.9% of total sales in 1993 and 51.5% in 1992. Of
these sales, $779 million in 1993 and $579 million in 1992 represented
purchases made by the Government on behalf of foreign governments.
Raytheon's businesses are organized into four segments: Electronics,
Aircraft Products, Energy and Environmental and Major Appliances.
ELECTRONICS SEGMENT
The Electronics segment consists of several business units that work
primarily on government contracts: Missile Systems Division, Equipment
Division, Electromagnetic Systems Division, Research Division and the
Advanced Device Center. The principal contributor to electronic sales and
earnings in recent years has been and continues to be sales to the United
States and foreign governments of air defense missile systems, subsystems
and components. The Patriot Air Defense System, the Company's largest
program, had sales of $1.248 billion, $1.209 billion and $1.265 billion,
in 1993, 1992 and 1991, respectively.
Other products and services sold directly or indirectly to the
Government include: ship and land based radar systems for surveillance,
target identification, tracking, fire control, navigation, air traffic
control and weather observation; sonar systems; communications systems;
electronic countermeasures systems and electronic components (see Backlog
Discussion, p. 6). Some of the Government's procurement is for non-
military use such as air traffic control and weather observation.
Raytheon acts as a prime contractor or major subcontractor for many
different Government programs including those that involve the development
and production of new or improved weapons or other types of electronics
systems or major components of such systems. Over its lifetime, a program
may be implemented by the award of many different individual contracts and
subcontracts.<PAGE>
PAGE 4
The funding of Government programs is usually subject to congressional
appropriations. Although multi-year contracts may be authorized in
connection with major procurements, Congress generally appropriates funds
on a fiscal year basis even though a program may continue for many years.
Consequently, programs are often only partially funded initially, and
additional funds are committed only as Congress makes further
appropriations. The Government is required to adjust equitably a contract
price for additions or reductions in scope or other changes ordered by it.
Generally, Government contracts have provisions for audit, price
redetermination and other profit and cost controls and limitations and may
be terminated, in whole or in part, without prior notice at the
Government's convenience upon the payment of compensation only for work
done and commitments made at the time of termination. In the event of
termination, the contractor may also receive some allowance for profit on
the work performed. The right to terminate for convenience has not had any
significant effect upon Raytheon's business in light of its total
Government business.
Raytheon's Government business is performed under both cost
reimbursement and fixed price prime contracts and subcontracts. Cost
reimbursement contracts provide for the reimbursement of allowable costs
plus the payment of a fee. These contracts fall into two basic types: (i)
cost plus fixed fee contracts which provide for the payment of a fixed fee
irrespective of the final cost of performance, and (ii) cost plus
incentive fee contracts which provide for increases or decreases in the
fee, within specified limits, based upon actual results as compared to
contractual targets relating to such factors as cost, performance and
delivery schedule. Under cost reimbursement type contracts, Raytheon is
reimbursed periodically for allowable costs and is paid a portion of the
fee based on contract progress. Some costs incident to performing
contracts have been made partially or wholly unallowable by statute or
regulation. Examples are charitable contributions, travel costs in excess
of government rates and certain litigation defense costs.
Raytheon's fixed price contracts are either firm fixed price contracts
or fixed price incentive contracts. Under firm fixed price contracts,
Raytheon agrees to perform the contract for a fixed price and as a result
benefits from cost savings and carries the burden of cost overruns. Under
fixed price incentive contracts, Raytheon shares with the Government
savings accrued from contracts performed for less than target costs and
costs incurred in excess of targets up to a negotiated ceiling price
(which is higher than the target cost) and carries the entire burden of
costs exceeding the negotiated ceiling price. Under such incentive
contracts, Raytheon's profit may also be adjusted up or down depending
upon whether specified performance objectives are met. Under firm fixed
price and fixed price incentive type contracts, Raytheon usually receives
progress payments monthly from the Government generally in amounts
equalling 85% of costs incurred under the contract. For contracts and
modifications issued after November 11, 1993, progress payments may not
exceed 75% of incurred costs. This rate may be adjusted from time to time
on the basis of the Short Term Commercial Borrowing Rate published by the<PAGE>
PAGE 5
Federal Reserve. The remaining amount, including profits or incentive
fees, is billed upon delivery and final acceptance of end items under the
contract.
Raytheon's Government business is subject to specific procurement
regulations and a variety of socio-economic and other requirements.
Failure to comply with such regulations and requirements could lead to
suspension or debarment, for cause, from Government contracting or
subcontracting for a period of time. Among the causes for debarment are
violations of various statutes, including those related to employment
practices, the protection of the environment, the accuracy of records and
the recording of costs. Raytheon has not, at any time, been debarred or
suspended.
Under many Government contracts, Raytheon is required to maintain
facility and personnel security clearances complying with Department of
Defense ("DOD") requirements.
Companies such as Raytheon, which are engaged in supplying defense-
related equipment to the Government, are subject to certain business risks
peculiar to that industry. Among these are: the cost of obtaining trained
and skilled employees; the uncertainty and instability of prices for raw
materials and supplies; the problems associated with advanced designs,
which may result in unforeseen technological difficulties and cost
overruns; and the intense competition and the constant necessity for
improvement in facilities and personnel training. Sales to the Government
may be affected by changes in procurement policies, budget considerations,
changing concepts of national defense, political developments abroad and
other factors.
As a result of the 1985 Balanced Budget and Emergency Deficit Reduction
Control Act, the federal deficit and changing world order conditions, DOD
budgets have been subject to increasing pressure resulting in an
uncertainty as to the future effects of DOD budget cuts. Raytheon has,
nonetheless, maintained a solid foundation of tactical defense systems
which meet the needs of the United States and its allies, as well as
serving a broad government program base and wide range of commercial
electronics businesses. These factors lead management to believe that
there is high probability of continuation of Raytheon's current major
tactical defense programs.
During the first quarter of 1994 the Company's Board of Directors
approved a company-wide restructuring plan designed to help maintain the
Company's competitive position in a shrinking defense market and improve
productivity in its commercial businesses. The plan will be implemented
over a two-year period and will result in a one-time, pre-tax charge of
$250 million ($162 million after tax). The major elements of the plan
include the costs of employee separations and relocations, facility
consolidations and facility and equipment disposals.
The Electronics segment's commercial group consists of Raytheon Marine
Company, Seiscor Technologies, the Semiconductor Division, Switchcraft,
Inc., BSG-Schalttechnik GmbH & Company and REMCO, S.A. In addition,<PAGE>
PAGE 6
D.C.Heath and Company is part of the group. Electronic products sold to
commercial customers include: marine collision avoidance systems; marine
radiotelephones, radars, autopilots and "Fathometer " depth sounders; and
components such as semiconductor devices, transistors, diodes, integrated
circuits, electronic controls for automobiles and appliances, switches,
jacks and plugs. Some electronic products are manufactured and assembled
for Raytheon outside of the United States.
Raytheon's D.C. Heath and Company division publishes school and college
textbooks and educational software.
AIRCRAFT PRODUCTS SEGMENT
Raytheon's Aircraft Products segment consists of Raytheon Corporate
Jets, Inc. and Beech Aircraft Corporation. Raytheon Corporate Jets was
formed in 1993 to acquire the assets of the Corporate Jets business of
British Aerospace plc, and Beech was acquired in 1980.
Raytheon Corporate Jets designs, manufactures, services and supports the
"Hawker(TM)" 800 and "Hawker(TM)" 1000 medium-sized business jets, which
are sold in domestic and international markets. More than 850 Hawker
aircraft of various models have been sold throughout the world since the
product line was introduced in 1960 as the de Havilland 125.
Beech, founded in 1932, designs, manufactures, services and supports
piston-powered, jetprop and light jet aircraft for the world's business,
military and regional airline markets. The single engine piston-powered
Beechcraft Bonanza introduced in 1947 enjoys the distinction of the
longest continuous production of any aircraft in history. Beech also
produces the twin-engine piston-powered Baron, several models of turbine-
powered aircraft in the Starship and King Air jetprop product lines, and
the Beechjet light business jet and its military counterpart, the T-1A
Jayhawk Trainer sold to the United States Air Force. The Beech 1900D is a
stand-up cabin 19-passenger aircraft sold to commuter airlines and
corporate customers. Beech also produces two missile target drones for
the United States and its allied forces. Beech operates fixed base
operations at airports throughout the United States and supports military
aircraft throughout the world.
ENERGY AND ENVIRONMENTAL SEGMENT
The Energy and Environmental segment is comprised of operating
subsidiaries of Raytheon Engineers & Constructors International, Inc.,
including Raytheon Engineers & Constructors, Inc., Raytheon Service
Company and Cedarapids, Inc. Raytheon Engineers & Constructors -- formed
in 1993 to consolidate the operations of United Engineers & Constructors
and The Badger Company -- designs, constructs and maintains petroleum,
petrochemical, chemical processing, cogeneration facilities, electrical
generating and industrial plants, and infrastructure projects.
The former Badger operations, both domestically and through subsidiaries
in The Netherlands and elsewhere, specialize in the engineering, design
and construction of petroleum refining, lube oil, petrochemical,<PAGE>
PAGE 7
fertilizer, chemical, plastics, synthetic fuels and environmental
treatment plants. Customers include many of the world's largest
petroleum, petrochemical and chemical companies.
The former United Engineers operations, domestically and
internationally, are engaged in the design, construction and maintenance
of electricity generating fossil fuel and nuclear plants, electrical
substations, metals manufacturing and processing plants and other types of
heavy industrial plants. In addition, Raytheon Engineers & Constructors
provides engineering services relating to facility and site planning,
environmental assessment and design studies. It also designs and
constructs specialty process, pharmaceutical and biotechnology plants.
Customers include a number of major utility companies, industrial concerns
and the Department of Energy.
Raytheon Engineers & Constructors undertakes some engineering and
construction projects on a firm fixed price basis ("lump sum turnkey"),
and as a result benefits from cost savings and carries the burden of cost
overruns.
During 1993 Raytheon Engineers & Constructors acquired selected assets
of Gibbs & Hill, Harbert Construction Company and Ebasco Services, Inc.,
providing additional resources in power, infrastructure, construction and
quality assurance.
Cedarapids, Inc. designs and manufactures a wide range of stationary and
portable aggregate producing equipment, asphalt paving equipment, mixing
plants and soil remediation systems.
Raytheon Service Company offers worldwide engineering, construction,
installation, operation, maintenance, environmental and training services
and supports and maintains other complex military and industrial systems.
MAJOR APPLIANCES SEGMENT
The Major Appliances segment, which consists of Amana Refrigeration,
Inc. and Speed Queen Company, manufactures and sells household and
commercial appliances under the Amana, Speed Queen, Caloric, Modern Maid,
Sunray and Menumaster brand names. Products include refrigerators,
freezers, microwave ovens, gas and electric ranges, washing machines,
dryers, and other laundry products as well as other central heating and
air conditioning products and home appliances. These products are sold to
dealers, distributors and home builders for resale to the customer or for
incorporation into new homes and apartments.
Financial information about Operations by Business Segments and
Operations by Geographic Areas is contained on page 41 of Raytheon's
1993 Annual Report to Stockholders and is incorporated herein by
reference.
BACKLOG
Raytheon's backlog of orders at December 31, 1993 was $7.756 billion<PAGE>
PAGE 8
compared with $7.273 billion at the end of 1992. The 1993 amount includes
funded backlog of $4.519 billion from the Government compared with $5.311
billion at the end of 1992. Normally, the Government funds its major
programs only to the dollar level appropriated annually by Congress, even
though the total estimated program values are considerably greater.
Accordingly, Raytheon's Government funded backlog represents only that
amount which has been appropriated and against which Raytheon can be
reimbursed for work performed.
Approximately $996 million of the overall backlog figure represents the
unperformed portion of multi-year direct orders from foreign governments,
principally for air defense systems or components thereof and related
services. Approximately $713 million of the overall backlog represents
non-government foreign backlog, $604 million of which relates to Raytheon
Engineers and Constructors' Rayong refinery project.
Aircraft Products backlog was to $1.082 billion at the end of 1993
versus $1.028 billion at the end of 1992.
Backlog in the Energy and Environmental segment was $1.824 billion at
the end of 1993 compared with $906 million at the end of 1992. The
increase was due primarily to the Ebasco acquisition. Design and
construction contracts in this segment typically take from eighteen months
to several years to perform.
Approximately $2.292 billion of the $7.756 billion 1993 year-end backlog
is not expected to be filled during the following twelve months.
RESEARCH AND DEVELOPMENT
During 1993, Raytheon derived net sales of $686.2 million ($672.6
million in 1992 and $586.2 million in 1991) pursuant to Government
contracts for research and development. In addition, during 1993 Raytheon
expended $279.4 million on research and development efforts compared with
$289.9 million in 1992 and $278.5 million in 1991. These expenditures
principally have been for product development for the Government and for
aircraft products. Approximately 10,100 employees (10,400 for 1992), of
whom 4,600 (4,800 for 1992) hold engineering or scientific degrees, were
actively engaged in research and development at the end of 1993.
SUPPLIERS
Delivery of raw materials and supplies to Raytheon is generally
satisfactory. Raytheon is sometimes dependent, for a variety of reasons,
upon sole-source suppliers for procurement requirements. However,
Raytheon has experienced no significant difficulties in meeting production
and delivery obligations because of delays in delivery or reliance on such
suppliers.
COMPETITION
The military and commercial industries in which Raytheon operates are<PAGE>
PAGE 9
highly competitive in both military and commercial areas. Raytheon's
competitors range from highly resourceful small concerns, which engineer
and produce specialized items, to large, diversified firms. Products are
subject to an unpredictable and often high degree of obsolescence. The
Electronics segment is a direct participant in most major areas of
development in the defense, space, information gathering, data reduction
and automation fields. Technical superiority and reputation, price,
delivery schedules, financing and reliability are principal competitive
factors considered by electronics customers. About half of the 50 largest
defense contractors in the United States are competitors in the
Electronics segment. At the present time, the Office of the Secretary of
Defense (the undersecretary of Defense for Acquisition) is reviewing the
Army's selection of the ERINT missile to satisfy the requirements of the
Patriot Advanced Capability - 3 (PAC-3). If this decision is upheld, it
is expected that Patriot's multimode development by the Company would
continue as a risk reduction measure for the Army. The Company would
continue to produce the Patriot Ground and Support equipment and would
remain as Patriot System integrator.
Competition in the Aircraft Products segment comes from a number of
domestic and foreign jet, turboprop and piston aircraft manufacturers.
Principal elements of competition in the industry are price, operating
costs, reliability, cabin size and comfort, product quality, speed and
service support.
In the Energy and Environmental segment it is estimated that about 15
firms compete for major business opportunities worldwide. Competition is
based primarily upon technical superiority, project experience and price.
The ability to arrange or otherwise provide financing to customers is
sometimes significant in attracting or retaining clients.
In the Major Appliances segment, quality, warranty, price, advertising
and marketing are all competitive factors. Approximately 24 firms compete
with Raytheon in the appliance field. Of these, Raytheon considers four
firms to be significant competitors.
PATENTS AND LICENSES
In most of the businesses in which Raytheon is engaged, patents are
prevalent. Raytheon and its subsidiaries own a large number of United
States and foreign patents and patent applications. In addition, rights
under the patents and inventions of others have been acquired through
licenses.
Raytheon's patent position is deemed adequate for the conduct of its
businesses. Should additional rights be desirable, Raytheon believes that
in most instances they can be acquired on reasonable terms. It is
Raytheon's policy to enforce its own patent rights and to respect the
rights of others. Typically there are a number of infringement claims
pending or threatened both by and against Raytheon. In the opinion of
management, these claims will be disposed of in a satisfactory manner.<PAGE>
PAGE 10
EMPLOYMENT
At December 31, 1993, Raytheon had 63,800 employees compared with 63,900
employees at the end of 1992. During 1993 the employment level declined
by 5,800 people and 5,700 people were added as a result of acquisitions.
Subsidiaries of Raytheon Engineers & Constructors International, Inc. and
certain other subsidiaries have craft employees engaged for individual
projects not included in Raytheon's employee count. Raytheon considers
its employee relations to be generally satisfactory. Raytheon has, for
the most part, successfully negotiated labor agreements without
significant work stoppages. Over the past ten years, Raytheon has
experienced only one work stoppage: a two-week stoppage at its Amana, Iowa
facility.
FOREIGN SALES
Of total sales, Raytheon's sales to customers outside the United States
were 18.4%, 18.7% and 17.7% in 1993, 1992 and 1991, respectively. These
sales were principally in the fields of air defense systems, air traffic
control systems, sonar systems, aircraft products, petrochemical power and
industrial plant design and construction, electronic equipment, computer
software and systems, personnel training, equipment maintenance, and
microwave communication. Financing, to the extent needed for foreign
manufacturing and sales, is generally sought in the countries concerned.
Sales and income from international operations are subject to changes in
currency values, domestic and foreign government policies (including
requirements to expend a portion of program funds in-country) and
regulations, embargoes and international hostilities. Exchange
restrictions imposed by various countries could restrict the transfer of
funds between countries and between Raytheon and its subsidiaries.
Raytheon generally has been able to protect itself against most undue
risks through insurance, foreign exchange contracts, contract provisions,
government guarantees or progress payments.
On occasion Raytheon utilizes the services of sales representatives and
distributors in connection with foreign sales. Such representatives and
distributors normally are paid either commissions or granted resale
discounts in return for services rendered in connection with obtaining
orders.
Licenses are required from Government agencies under the Export
Administration Act, the Trading with the Enemy Act of 1917 and the Arms
Export Control Act of 1976 (formerly the Foreign Military Sales Act) for
export from the United States of many of Raytheon's products. In the case
of certain sales of defense equipment and services to foreign governments,
the Government's Executive Branch must notify Congress at least 30 days
prior to authorizing such sales. During that time, Congress may take
action to block the proposed sale.
ITEM 2. PROPERTIES
Raytheon and its subsidiaries operate in a number of plants,<PAGE>
PAGE 11
laboratories and office facilities in the United States and abroad.
Raytheon's manufacturing, engineering, research, administrative, sales
and storage floor space aggregated approximately 30.2 million square feet
at December 31, 1993, more than 90% of which was located in the United
States. Of such total, 59% was owned, 30% was held pursuant to long-term
leases, 5% was held pursuant to short-term leases and 6% was Government-
owned. Raytheon's facilities are suitable and adequate for its current
level of business. In connection with a recently announced restructuring
plan, certain facilities will be disposed of following consolidation.
Raytheon maintains a wide-spread energy conservation effort in
cooperation with Federal and state agencies. While Raytheon's businesses
generally utilize clean manufacturing processes, such processes at times
utilize chemicals, solvents, gases and other materials which could be
hazardous. Several states have adopted "right-to-know" legislation
entitling employees and, to a lesser extent, the public to information
concerning such materials. Discharge of effluents and smoke particles are
regulated by Federal and state agencies and frequently require permits.
Discharge in excess of permit limitations may result in fines.
Enforcement proceedings may be brought by citizen groups as well as
government agencies. In the opinion of management, Raytheon complies with
these regulations in all material respects.
ITEM 3. LEGAL PROCEEDINGS
The Company is involved in various stages of investigation and cleanup
relative to remediation of various sites. All appropriate costs incurred
in connection therewith have been expensed. Due to the complexity of
environmental laws and regulations, the varying costs and effectiveness of
alternative cleanup methods and technologies, the uncertainty of insurance
coverage and the unresolved extent of the Company's responsibility, it is
not possible to determine the ultimate outcome of these matters. However,
in the opinion of management, any liability will not have a material
effect on the Company's financial position or results of operations after
giving effect to provisions already recorded.
As previously reported, in 1989 Beech was cited by the EPA, Region VII
(Kansas City Office) for its failure to comply with a Wastewater Discharge
Permit and applicable regulations. Beech has entered into a Consent
Decree pursuant to which it will pay a civil penalty of $521,735 and
install paint booth centrifuges at its Wichita facility.
Accidents involving personal injuries and property damage occur in
general aviation travel. When permitted by appropriate government
agencies, Beech investigates accidents related to Beech products involving
fatalities or serious injuries. Through a relationship with FlightSafety
International, Beech provides initial and recurrent pilot and maintenance
training services to reduce the frequency of accidents involving its
products.
Beech is a defendant in a number of product liability lawsuits which
allege personal injury and property damage and seek substantial recoveries<PAGE>
PAGE 12
including, in some cases, punitive and exemplary damages. Beech maintains
partial insurance coverage against such claims and maintains a level of
uninsured risk determined by management to be prudent. (See Note J to
Raytheon's Financial Statements for the years ended December 31, 1993,
1992 and 1991.)
The insurance policies for product liability coverage held by Beech do
not exclude punitive damages, and it is the position of Beech and its
counsel that punitive damage claims are therefore covered. Historically,
the defense of punitive damage claims has been undertaken and paid by
insurance carriers. Under the law of some states, however, insurers are
not required to respond to judgments for punitive damages. Nevertheless,
to date there have been no judgments for punitive damages sustained
against Beech.
Defense contractors are subject to many levels of audit and
investigation. Among agencies which oversee contract performance are:
the Defense Contract Audit Agency, the Inspector General, the Defense
Criminal Investigative Service, the General Accounting Office, and the
Department of Justice and Congressional Committees. The Department of
Justice from time to time has convened grand juries to investigate
possible irregularities by Raytheon in governmental contracting.
Various claims and legal proceedings generally incidental to the normal
course of business are pending or threatened against the Company. While
the Company cannot predict the outcome of any of these matters, in the
opinion of management, any liability arising from them will not have a
material effect on the Company's financial position, liquidity or results
of operations after giving effect to provisions already recorded.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable.
SUBSTITUTE ITEM 4. EXECUTIVE OFFICERS OF REGISTRANT AS OF
MARCH 1, 1994
Max E. Bleck. Director since November 1990 and President since March
1991. Prior to assuming his present position, Mr. Bleck served as
President and Chief Executive Officer - Beech Aircraft Corporation from
1987. Age: 66
Philip W. Cheney. Vice President - Engineering since February 1990.
Prior to assuming his present position, Dr. Cheney served as Program
Manager - AMRAAM, Missile Systems Division from January 1985. Age: 58
Stanley L. Clark. Vice President and Group Executive - Commercial
Electronics Group since May 1992. Prior to assuming his present position,
Mr. Clark served as Group Executive - Commercial Electronics Group from
January 1992 and as President of Raytheon Marine Company from February
1983. Age: 50
Peter R. D'Angelo. Vice President - Corporate Controller since February<PAGE>
PAGE 13
1992. Prior to assuming his present position, Mr. D'Angelo served as
Controller - Missile Systems Division from 1984. Age: 55
Herbert Deitcher. Senior Vice President - Treasurer since November 1989.
Age: 60
David S. Dwelley. Vice President - Strategic Business Development since
April 1991. Prior to assuming his present position, Mr. Dwelley served as
Vice President - President, Raytheon Europe Limited from 1989. Age: 54
John F. Harding. Vice President - Contracts since October 1988. Age: 55
Christoph L. Hoffmann. Senior Vice President - Law, Human Resources and
Corporate Administration, and Secretary since February 1994. Prior to
assuming his present position, Mr. Hoffmann served as Vice President,
Secretary and General Counsel from July 1991 and as Senior Vice President,
General Counsel and Secretary of Pneumo Abex Corporation from 1986. Age:
49
Thomas D. Hyde. Vice President and General Counsel since February 1994.
Prior to assuming his present position, Mr. Hyde served as Assistant
General Counsel from August 1992, as Senior Vice President, General
Counsel and Chief Financial Officer of MNC Financial Inc. Special Assets
Bank from 1991, and as Vice President, Finance Manville Sales Corporation
from 1988. Age: 45
Charles Q. Miller. Senior Vice President and Group Executive - Chairman
and Chief Executive Officer of Raytheon Engineers & Constructors
International, Inc. since March 1993. Prior to assuming his present
position, Mr. Miller served as President, United Engineers & Constructors,
Inc. from 1990 and as Vice President-General Manager of Stearns-Rogers
Division from 1989. Age: 48
John R. Pasquariello. Vice President - President and Chief Executive
Officer of Cedarapids Inc. since September 1993. Prior to assuming his
present position, Mr. Pasquariello served as Vice President -
Environmental Quality from 1992, as Vice President-Manufacturing and
Environmental Quality from April 1990 and as Vice President-Manufacturing
from 1979. Age: 64
Dennis J. Picard. Director since 1989 and Chairman and Chief Executive
Officer since March 1991. Prior to assuming his present position, Mr.
Picard served as President from 1989. Age: 61
C. Dale Reis. Vice President and General Manager - Equipment Division
since September 1993. Prior to assuming his present position, Mr. Reis
served as Vice President-General Manager, Submarine Signal Division from
October 1990 and Manager-Equipment Development Laboratories, Equipment
Division from 1988. Age: 48
Sheldon Rutstein. Senior Vice President - Chief Financial Officer since
February 1992. Mr. Rutstein also serves as Chief Accounting Officer. <PAGE>
PAGE 14
Prior to assuming his present position, Mr. Rutstein served as Senior Vice
President-Controller from 1989. Age: 59
Robert A. Skelly. Vice President - Assistant to the Executive Office.
Prior to assuming his present position, Mr. Skelly served as Vice
President-Administration, Environmental Quality and Procurement since
September 1992, as Vice President-Public and Financial Relations from
January 1991 and as Assistant to the President from August 1989. Age: 51
Robert L. Swam. Senior Vice President, Group Executive - Appliance Group
since January 1992. Prior to assuming his present position, Mr. Swam was
an independent consultant from 1989. Age 53
William H. Swanson. Senior Vice President - General Manager, Missile
Systems Division since August 1990. Prior to assuming his present
position, Mr. Swanson served as Vice President - Assistant General
Manager-Operations, Missile Systems Division from 1989. Age: 45
Arthur E. Wegner. Senior Vice President - Chairman and Chief Executive
Officer of Beech Aircraft Corporation since July 1993. Prior to assuming
his present position, Mr. Wegner served as Executive Vice President and
President of the Aerospace/Defense Sector of United Technologies
Corporation from 1989. Age: 56
Edmund B. Woollen. Vice President - Government Marketing since December
1992. Prior to assuming his present position, Mr. Woollen served as Vice
President-Corporate Marketing from October 1990 and as Director of
Marketing, Government Group from 1986. Age: 49
Each executive officer was elected by the Board of Directors to serve
for a term of one year and until his successor is elected and qualified or
until his earlier removal, resignation or death.
PART II
Item 5. Market For Registrant's Common Equity and Related Stockholder
Matters
This information is contained in the Annual Report to Stockholders
for the year ended December 31, 1993 on page 1, on page 40 under
the caption "Quarterly Financial Data" and on the back cover and
is incorporated herein by reference.
Item 6. Selected Financial Data
This information is included in the "Ten Year Statistical Summary"
contained in the Annual Report to Stockholders for the year ended
December 31, 1993 on pages 42 and 43 and is incorporated herein by
reference.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations<PAGE>
PAGE 15
This information is contained in the Annual Report to Stockholders
for the year ended December 31, 1993 on pages 35 through 40 and is
incorporated herein by reference.
Item 8. Financial Statements and Supplemental Data
Financial statements and supplementary data of the Registrant are
contained in the Annual Report to Stockholders for the year ended
December 31, 1993 on pages 44 through 59 and are incorporated
herein by reference. Schedules required under Regulation S-X are
filed as "Financial Statement Schedules" pursuant to Item 14
hereof.
Item 9. Changes in and Disagreements with Accountants and Financial
Disclosure
None.
Item 10. Directors and Executive Officers of the Registrant
Information regarding the directors of the Registrant is contained
in the definitive proxy statement of the Registrant for the annual
meeting of stockholders to be held May 25, 1994 on pages 2 and 3
under the caption "Election of Directors" and is incorporated
herein by reference. See Part I, Substitute Item 4 of this Form
10-K for information regarding the executive officers of the
Registrant.
Item 11. Executive Compensation
This information is contained in the definitive proxy statement of
the Registrant for the annual meeting of stockholders to be held
May 25, 1994 beginning with the caption "Executive Compensation"
on pages 6 through 9 and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and
Management
This information is contained in the definitive proxy statement of
the Registrant for the annual meeting of stockholders to be held
May 25, 1994 under the caption "Security Ownership" on pages 4 and
5 and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
This information is contained in the definitive proxy statement of
the Registrant for the annual meeting of stockholders to be held
May 25, 1994 under the caption "Other Information" on page 15 and
is incorporated herein by reference.
PART IV<PAGE>
PAGE 16
Item 14. Exhibits, Financial Statement Schedules and Reports on
Form 8-K
(a) Financial Statements and Schedules
(1) The following financial statements of Raytheon Company and
Subsidiaries Consolidated, as contained in Raytheon's 1993 Annual
Report to Stockholders, are hereby incorporated by reference:
Balance Sheets at December 31, 1993 and 1992
Statements of Income for the Years Ended
December 31, 1993, 1992 and 1991
Statements of Stockholders' Equity for the
Years Ended December 31, 1993, 1992 and 1991
Statements of Cash Flows for the Years Ended
December 31, 1993, 1992 and 1991
(2) The following schedules are included in this report:
Schedule II - Amounts Receivable from Employees for the
Three Years Ended December 31, 1993
Schedule V - Property, Plant and Equipment for the
Three Years Ended December 31, 1993
Schedule VI - Accumulated Depreciation, Depletion and
Amortization of Property, Plant and
Equipment for the Three Years Ended
December 31, 1993
Schedule VIII - Reserves for the Three Years Ended
December 31, 1993
Schedule IX - Short-Term Borrowing for the Three Years
Ended December 31, 1993
Schedules I, III, IV, VII, X, XI, XII and XIII are omitted because they
are not required, not applicable, or the information is otherwise
included.
(b) Reports on Form 8-K
On June 9, 1993, the Company filed a Form 8-K reporting the
acquisition by Raytheon Company of the business of Corporate Jets
Inc.
(c) Exhibits
(3.1) Raytheon Company Certificate of Incorporation, as amended through<PAGE>
PAGE 17
July 1, 1987, heretofore filed as an Exhibit to Registration
Statement No. 33-15396, is hereby incorporated by reference.
(3.2) Raytheon Company By-Laws, as amended through August 22, 1990,
heretofore filed as an Exhibit to Raytheon's Form 10-K for the
year ended December 31, 1990, are hereby incorporated by
reference.
(4) On July 3, 1986, the Company filed a registration statement on
Form 8-A, which form was amended on June 28, 1988, describing
certain rights that may accrue to stockholders in the event that a
person or group acquires beneficial ownership of 20% or more of
the Company's outstanding capital stock or commences a tender or
exchange offer that would result in such person or group owning
25% or more of such outstanding capital stock. Said Registration
Statement is hereby incorporated by reference.
(10.1) Raytheon's 1976 Stock Option Plan, filed as an exhibit to
Raytheon's Registration Statement No. 33-23449 on Form S-8, is
hereby incorporated by reference.
(10.2) Raytheon's 1991 Stock Plan, filed as an exhibit to Raytheon's 1991
Form 10-K, is hereby incorporated by reference.
(13) Raytheon's 1993 Annual Report to Stockholders (furnished for the
information of the Commission and not to be deemed "filed" as part
of this Report except to the extent that portions thereof are
expressly incorporated by reference).
(22) Subsidiaries of Raytheon Company
(24.1) Consent of Independent Accountants
(24.2) Report of Independent Accountants
(28.1) Annual Report on Form 11-K for the (To be filed at a
Raytheon Savings and Investment Plan later date under
Form 8)
(28.2) Annual Report on Form 11-K for the (To be filed at a
Raytheon Savings and Investment Plan later date under
for Specified Hourly Payroll Employees Form 8)
(28.3) Annual Report on Form 11-K for the (To be filed at a
Caloric Savings and Investment Plan later date under
Form 8)
(28.4) Annual Report on Form 11-K for the (To be filed at a
Badger Company, Inc. Savings and later date under
Investment Plan Form 8)<PAGE>
PAGE 18
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
RAYTHEON COMPANY
By: /s/ Thomas D. Hyde
Thomas D. Hyde
Vice President and General Counsel for the Registrant
Dated: March 23, 1994<PAGE>
PAGE 19
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
SIGNATURES TITLE DATE
Chairman of the Board
Dennis J. Picard and Director (Principal March 23, 1994
(Dennis J. Picard) Executive Officer)
Max E. Bleck President and Director March 23, 1994
(Max E. Bleck)
Charles F. Adams Director March 23, 1994
(Charles F. Adams)
Francis H. Burr Director March 23, 1994
(Francis H. Burr)
Ferdinand Colloredo-Mansfeld Director March 23, 1994
(Ferdinand Colloredo-Mansfeld)
Theodore L. Eliot, Jr. Director March 23, 1994
(Theodore L. Eliot, Jr.)
Barbara B. Hauptfuhrer Director March 23, 1994
(Barbara B. Hauptfuhrer)
Richard D. Hill Director March 23, 1994
(Richard D. Hill)
James N. Land, Jr. Director March 23, 1994
(James N. Land, Jr.)
Thomas L. Phillips Director March 23, 1994
(Thomas L. Phillips)
Warren B. Rudman Director March 23, 1994
(Warren B. Rudman)
Joseph J. Sisco Director March 23, 1994
(Joseph J. Sisco)
Alfred M. Zeien Director March 23, 1994
(Alfred M. Zeien)
Sheldon Rutstein Senior Vice President - March 23, 1994
(Sheldon Rutstein) Chief Financial Officer
(Chief Accounting Officer)<PAGE>
PAGE 20
<TABLE> RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
-----------------------------------------------
SCHEDULE II - AMOUNTS RECEIVABLE FROM EMPLOYEES
FOR THE THREE YEARS ENDED DECEMBER 31, 1993
---------------------------------------------
<CAPTION> (In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
Balance at Deductions Balance at close of period
beginning Amounts Amounts
Name of debtor of period Additions collected written off Current Non-current
---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1993
<S> <C> <C> <C> <C> <C> <C>
Elizabeth H. Allen (4) $ - $475 $475 $ - $ - $ -
Max E. Bleck (1) 800 - - - 800 -
Tom B. Burgher (2) 23 - 7 - 7 9
Larry R. Capps (3) 31 - 31 - - -
Kenneth A. Dickerson (4) 430 - 430 - - -
James V. DiLorenzo (5) 155 - 19 - 21 115
Edward C. Douglas (6) 288 - 11 - 12 265
S. Robert Foley (7) 141 - 141 - - -
David W. Gerety (9) 64 - 27 - 12 25
Ronald J. Lazarto (10) 5 - 5 - - -
Charles Q. Miller (20) - 175 - - 175 -
C. Dale Reis (11) 100 - 100 - - -
Gerard A. Smith (7) 70 - 70 - - -
Robert L. Swam (13) 250 - 30 - 40 180
Frank D. Umanzio (14) 189 - - - 189 -
(continued next page)<PAGE>
PAGE 21
SCHEDULE II - AMOUNTS RECEIVABLE FROM EMPLOYEES
---------------------------------------------
(In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
Balance at Deductions Balance at close of period
beginning Amounts
Name of debtor of period Additions collected written off Current Non-current
---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1992
<S> <C> <C> <C> <C> <C> <C>
Max E. Bleck (1) $800 $ - $ - $ - $800 $ -
Tom B. Burgher (2) 255 - 232 - 8 15
Larry R. Capps (3) - 130 99 - 31 -
Kenneth A. Dickerson (4) 430 - - - 430 -
James V. DiLorenzo (5) 172 - 17 - 19 136
Edward C. Douglas (6) 299 - 11 - 11 277
S. Robert Foley (7) 175 - 34 - 25 116
Chet E. Foraker (8) 136 - 136 - - -
David W. Gerety (9) 150 - 86 - 10 54
Richard B. Johnston (8) - 155 155 - - -
Ronald J. Lazarto (10) 150 - 145 - 5 -
C. Dale Reis (11) 120 - 20 - 20 80
Richard A. Rom (12) 24 - 24 - - -
Gerard A. Smith (7) 102 - 32 - 34 36
Robert L. Swam (13) - 250 - - 30 220
Frank D. Umanzio (14) 189 - - - 189 -
(continued next page)<PAGE>
PAGE 22
SCHEDULE II - AMOUNTS RECEIVABLE FROM EMPLOYEES
----------------------------------------------
(continued)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
Balance at Deductions Balance at close of period
beginning Amounts
Name of debtor of period Additions collected written off Current Non-current
---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1991
<S> <C> <C> <C> <C> <C> <C>
Max E. Bleck (1) $ - $ 800 $ - $ - $800 $ -
Jay T. Bluestein (15) 120 - - 120 - -
Tom B. Burgher (4) - 255 - - 255 -
Kenneth A. Dickerson (4) 430 - - - 430 -
James V. DiLorenzo (5) 187 - 15 - 17 155
Edward C. Douglas (6) 302 - 3 - 15 284
Richard J. Foley (8) - 400 400 - - -
S. Robert Foley (7) - 305 130 - 26 149
Chet E. Foraker (8) - 136 - - 136 -
Thomas M. Gallagher (8) 160 - 160 - - -
David W. Gerety (9) - 150 - - 38 112
Ronald D. Kalp (16) 178 - 128 50 - -
Ronald J. Lazarto (4) 150 - - - 150 -
Robert J. Minton (17) 104 - - 104 - -
C. Dale Reis (11) 168 287 335 - 20 100
Richard A. Rom (12) 34 - 10 - 11 13
John T. Rowntree (8) 65 - 65 - - -
Gerard A. Smith (7) 131 - 29 - 32 70
Frank D. Umanzio (14) - 189 - - 189 -
(continued next page)<PAGE>
PAGE 23
SCHEDULE II - AMOUNTS RECEIVABLE FROM EMPLOYEES
----------------------------------------------
(continued)
1. Non-interest bearing loan for the purchase of employee's home in Massachusetts, repayable upon the
employee selling the home or ending his employment. Raytheon holds a mortgage on the home.
2. Non-interest bearing loan made on a demand note was reduced by a partial principal payment and
converted to a non-interest bearing installment term loan commencing in January 1993. Raytheon holds
a mortgage on the home of this employee.
3. Non-interest bearing loan made on a demand note was reduced by a partial principal payment. Raytheon
holds a mortgage on the home of this employee.
4. Non-interest bearing loan made on a demand note to be paid on the sale of the first home.
5. Non-interest bearing installment loan with annual installments commencing February 15, 1990 and
continuing through February 15, 1999. Raytheon Company holds a mortgage on the home of this employee.
6. Interest bearing loan made on a demand note to be paid on the sale of the first home. Raytheon
Company holds mortgages on both homes of this employee. Employee pays $2600 per month as partial
payment of principal and interest until sale of either home is completed.
7. Non-interest bearing interim loan was reduced by the proceeds from the sale of the employee's home and
converted to a non-interest bearing installment loan with annual installments. The balance was
prepaid when the employee left the company.
8. Non-interest bearing loan made on a demand note to be paid upon the sale of the first home. Raytheon
Company held a mortgage on the homes of these employees.
9. Interest bearing loan made on a demand note was reduced by partial principal payment and converted to
a non-interest bearing installment term loan commencing February 1992 and maturing in March 1997 which
was modified in 1993 as a result of the prepayment of part of the principal. Raytheon holds a
mortgage on the home of this employee.
(continued next page)<PAGE>
PAGE 24
SCHEDULE II - AMOUNTS RECEIVABLE FROM EMPLOYEES
-----------------------------------------------
(continued)
10. Interest bearing loan made on a demand note which was paid on the sale of the first home. Raytheon
Company held a mortgage on the home of this employee.
11. Borrowing on a non-interest bearing line of credit enabled relocated employee to build a new home.
Upon completion of construction, the loan was converted to an interest free installment term loan with
a value of $117,170 and with annual installments commencing in 1992 and continuing through 1996. The
loan was liquidated in 1993.
12. Non-interest bearing loan made on a demand note was reduced by partial principal payment and converted
to a non-interest bearing installment term loan with monthly payments commencing in September, 1990
and was paid in full in 1992. Raytheon Company held a mortgage on the home of this employee.
13. Non-interest bearing installment term loan maturing in February 1997. Raytheon holds a mortgage on
the home of this employee.
14. Relocation loan, part of which is interest bearing, was made to the employee to be repaid in January,
1994, unless either home is sold earlier. Raytheon Company holds mortgages on two homes of this
employee.
15. Non-interesting bearing loans made on demand notes and involving employee relocations. Amount was
written off in 1991 based upon multiple relocation agreements made with employee.
16. Non-interest bearing 10-year installment loan was partially repaid in July, 1991 with the balance
being written off pursuant to a severance agreement with the employee. Raytheon Company held a
mortgage on the two homes of this former employee.
17. Interest bearing loan made on a demand note to be paid on the sale of the first home. Raytheon
Company held a mortgage on the home in Georgia of this former employee. Amount was charged to a
reserve in 1991.
18. Non-interest bearing installment loan with balance due paid in February 1990. Raytheon Company held a
mortgage on the home of this employee.
19. Non-interest bearing 8-year installment loan with balance due paid in May 1990. Raytheon Company held
a mortgage on the home of this employee.
20. Non-interest bearing loan made on a demand note. In January 1994, the employee's home was sold and
the loan reduced to an installment term loan. The remaining installment in the amount of $17,279 is
payable in January 1995.<PAGE>
PAGE 25
RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
----------------------------------------------
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
FOR THE THREE YEARS ENDED DECEMBER 31, 1993
-------------------------------------------
(In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
Balance at Other changes Balance
beginning Additions add (deduct) at end
Classification of period at cost Retirements Note (1) of period
------------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1993:
<S> <C> <C> <C> <C> <C>
Land $ 46,254 $ 1,642 $ 350 $ <50> $ 47,496
Building and leasehold improvements 888,039 29,847 12,368 <719> 904,799
Machinery and equipment 2,482,229 256,135 158,203 <1,766> 2,578,395
Equipment leased to others 61,636 22,678 24,671 - 59,643
---------- -------- -------- --------- ----------
$3,478,158 $310,302(2) $195,592 $ <2,535> $3,590,333
========== ======== ======== ========= ==========
Year ended December 31, 1992:
<S> <C> <C> <C> <C> <C>
Land $ 47,082 $ 290 $ 674 $ <444> $ 46,254
Building and leasehold improvements 870,458 33,324 9,709 <6,034> 888,039
Machinery and equipment 2,614,297 227,726 337,883 <21,911> 2,482,229
Equipment leased to others 67,518 46,386 52,268 - 61,636
---------- --------- -------- --------- ----------
$3,599,355 $ 307,726 $400,534 $ <28,389> $3,478,158
========== ========= ======== ========= ==========
Year ended December 31, 1991:
<S> <C> <C> <C> <C> <C>
Land $ 47,892 $ 184 $ 587 $ <407> $ 47,082
Building and leasehold improvements 877,908 19,796 22,610 <4,636> 870,458
Machinery and equipment 2,512,663 297,347 165,944 <29,769> 2,614,297
Equipment leased to others 46,400 31,209 10,091 - 67,518
---------- --------- -------- --------- ----------
$3,484,863 $ 348,536 $199,232 $ <34,812> $3,599,355
========== ========= ======== ========= ==========
Note (1) - Includes foreign exchange translation adjustments.
Note (2) - Includes additions from acquisitions recorded under the purchase method. See Note Q of Notes to Financial
Statements on page 58 of the Company's 1993 Annual Report to Stockholders.<PAGE>
PAGE 26
RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
----------------------------------------------
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
OF PROPERTY, PLANT AND EQUIPMENT
FOR THE THREE YEARS ENDED DECEMBER 31, 1993
--------------------------------------------
(In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
Additions
Balance at charged to Other changes Balance
beginning costs and add (deduct) at end
Description of period expenses Retirements Note (1) of period
-----------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1993:
<S> <C> <C> <C> <C> <C>
Land $ - $ - $ - $ - $ -
Building and leasehold improvements 328,501 38,859 7,866 <1,594> 357,900
Machinery and equipment 1,721,062 243,555 162,311 187 1,802,493
Equipment leased to others 8,550 4,704 5,400 - 7,854
---------- --------- --------- ----------- ----------
$2,058,113 $ 287,118 $ 175,577 $ <1,407> $2,168,247
========== ========= ========= =========== ==========
Year ended December 31, 1992:
<S> <C> <C> <C> <C> <C>
Land $ - $ - $ - $ - $ -
Building and leasehold improvements 298,205 39,105 6,151 <2,658> 328,501
Machinery and equipment 1,763,159 255,981 281,819 <16,259> 1,721,062
Equipment leased to others 21,473 7,047 19,970 - 8,550
---------- --------- --------- ----------- ----------
$2,082,837 $ 302,133 $ 307,940 $ <18,917> $2,058,113
========== ========= ========= =========== ==========
Year ended December 31, 1991:
<S> <C> <C> <C> <C> <C>
Land $ - $ - $ - $ - $ -
Building and leasehold improvements 273,776 38,073 12,434 <1,210> 298,205
Machinery and equipment 1,657,644 263,658 136,987 <21,156> 1,763,159
Equipment leased to others 21,362 4,386 4,275 - 21,473
---------- --------- -------- ---------- -----------
$1,952,782 $ 306,117 $153,696 $ <22,366> $ 2,082,837
========== ========= ======== ========== ===========
Note (1) - Includes foreign exchange translation adjustments.
Note (2) - See Note A of Notes to Financial Statements on page 48 of the Company's 1993 Annual Report to Stockholders,
which is hereby incorporated by reference, for discussion on method of depreciation and amortization.<PAGE>
PAGE 27
RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
----------------------------------------------
SCHEDULE VIII - RESERVES
FOR THE THREE YEARS ENDED DECEMBER 31, 1993
-------------------------------------------
(In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
Additions
Balance at Balance at
beginning Charged to costs Charged to other Deductions end of
Description of period and expenses accounts Note (1) period
--------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1993:
<S> <C> <C> <C> <C> <C>
Allowance for doubtful $20,023 $ 4,586 - $(1,282) $25,891
accounts receivable
Year ended December 31, 1992:
<S> <C> <C> <C> <C> <C>
Allowance for doubtful $19,229 $10,336 - $ 9,542 $20,023
accounts receivable
Year ended December 31, 1991:
<S> <C> <C> <C> <C> <C>
Allowance for doubtful $16,916 $ 7,651 - $ 5,338 $19,229
accounts receivable
Note (1) - Uncollectible accounts and adjustments, less recoveries<PAGE>
PAGE 28
RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
---------------------------------------------
SCHEDULE IX - SHORT TERM BORROWINGS
FOR THE THREE YEARS ENDED DECEMBER 31, 1993
-------------------------------------------
(In thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
Category of Maximum month- Average amount Weighted average
aggregate Balance Weighted average end amount out- outstanding interest rate
short-term at end interest rate at standing during during the during the
borrowings of period end of period (2) the period period (3) period (3)
------------------------------------------------------------------------------------------------------------------------
1993:
<S> <C> <C> <C> <C> <C>
Notes Payable $ 27,187 (1) 6.01% $ 42,593 $ 25,966 6.77%
Commercial Paper 844,990 3.35 1,063,570 851,799 3.09
All categories 872,177 3.43 1,084,252 877,765 3.20
1992:
<S> <C> <C> <C> <C> <C>
Notes Payable $ 16,492 (1) 8.71% $ 35,527 $ 35,039 8.03%
Commercial Paper 688,297 3.42 1,245,025 1,080,670 3.74
All categories 704,789 3.54 1,305,460 1,115,709 3.87
1991:
<S> <C> <C> <C> <C> <C>
Notes Payable $ 56,493 (1) 10.05% $ 103,135 $ 72,245 10.15%
Commercial Paper 1,043,973 4.83 1,453,244 1,356,778 5.96
All categories 1,100,466 5.10 1,567,627 1,429,023 6.17
Note (1) - In addition to this amount, lines of credit with certain commercial banks exist as a standby facility to
support the issuance of commercial paper by the company. These lines of credit were $1.108 billion, $1.120
billion, and $1.440 billion as of December 31, 1993, 1992, and 1991, respectively. Through December 31,
1993, there have been no borrowings under these lines of credit.
(2) - The weighted average interest rate at the end of each year is calculated by multiplying the actual interest
rate times the principal amounts of all short-term debt instruments outstanding at December 31. This total
calculated interest amount is then divided by the total outstanding debt to arrive at the weighted average
interest rate.
(3) - The weighted average interest rate during each year is determined by dividing the interest expense for the
year by the average short-term debt during the year. The average short-term bank debt is determined by
averaging the outstanding balances at the beginning of the year and at the end of each quarter (a five point
weighted average). The average balance in commercial paper is determined based on amounts outstanding at
the end of each day.
/TABLE
<PAGE>
PAGE 1
INDEX TO EXHIBITS
(3A) Articles of Incorporation Incorporated by Reference
(3B) Bylaws Incorporated by Reference
(4) Instruments Defining the Rights of
Security Holders Incorporated by Reference
(10.1) 1976 Stock Option Plan Incorporated by Reference
(10.2) 1991 Stock Option Plan Incorporated by Reference
(13) Annual Report to Security Holders Filed On Form SE
(March 29, 1994)
(22) Subsidiaries of the Registrant Page 29
(24.1) Consent of Independent Accountants Page 30
(24.2) Report of Independent Accountants Page 31
(28.1) Annual Report on Form 11-K for the (To be filed at a later
Raytheon Savings and Investment Plan date under Form 8)
(28.2) Annual Report on Form 11-K for the (To be filed at a later
Raytheon Savings and Investment Plan date under Form 8)
for Specified Hourly Payroll Employees
(28.3) Annual Report on Form 11-K for the (To be filed at a later
Caloric Savings and Investment Plan date under Form 8)
(28.4) Annual Report on Form 11-K for the (To be filed at a later
Badger Company, Inc. Savings and date under Form 8)
Investment Plan<PAGE>
PAGE 1
EXHIBIT 22
SUBSIDIARIES OF THE REGISTRANT
Subsidiary Where Organized Percentage Owned
----------- --------------- ----------------
Amana Refrigeration, Inc. Delaware 100%
Beech Aircraft Corporation Kansas 100%
Cedarapids, Inc. Iowa 100%
Raytheon Engineers &
Constructors, Inc. Delaware 100%
Raytheon Service Company Delaware 100%<PAGE>
PAGE 1
EXHIBIT 24.1
CONSENT OF
INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration
Statements of Raytheon Company and Subsidiaries Consolidated on Form S-8
(File Nos. 2-55841, 2-87308, 2-93903, 2-93871, 33-3720, 33-3723, 33-5650,
33-10811, 33-14165, 33-15242, 33-15396, 33-15397, 33-15398, 33-21454, 33-
21741, 33-22211, 33-23449, 33-23751, 33-24695, 33-49041 and 33-49033) and
on Form S-3 (File Nos. 33-49045 and 33-49269) of our reports dated January
20, 1994, except as to information presented in Note Q for which the date
is March 8, 1994, on our audits of the consolidated financial statements
and financial statement schedules of Raytheon Company and Subsidiaries
Consolidated as of December 31, 1993 and 1992, and for each of the three
years in the period ended December 31, 1993 which reports are incorporated
by reference or included in this Annual Report on Form 10-K.
Coopers & Lybrand
Boston, Massachusetts
March 28, 1994<PAGE>
PAGE 1
EXHIBIT 24.2
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders
Raytheon Company:
Our report on the consolidated financial statements of Raytheon
Company and Subsidiaries Consolidated has been incorporated by reference
in this Form 10-K from page 59 of the 1993 Annual Report to Shareholders
of Raytheon Company. In connection with our audits of such financial
statements, we have also audited the related financial statement schedules
listed in Item 14(a) of this Form 10-K.
In our opinion, the financial statement schedules referred to above,
when considered in relation to the basic financial statements taken as a
whole, present fairly, in all material respects, the information required
to be included therein.
Coopers & Lybrand
Boston, Massachusetts
January 20, 1994, except for the
information presented in Note Q for
which the date is March 8, 1994.<PAGE>
