<PAGE>
STRICTLY CONFIDENTIAL
WLR&K DRAFT: 10/7/97
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): October 7, 1997
RAYTHEON COMPANY
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(Exact name of registrant as specified in its charter)
Delaware 1-2833 04-1760395
- ------------------------ ---------------- --------------
(State of Incorporation) (Commission File (IRS Employer
Number) Identification
Number)
141 Spring Street
Lexington, Massachusetts 02173
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781) 862-6600
<PAGE>
ITEM 5. OTHER EVENTS.
------------
As previously reported, on July 11, 1997, Raytheon completed its
acquisition of the Defense Systems and Electronics business ("TI Defense")
of Texas Instruments Incorporated. Certain unaudited interim financial
information for TI Defense for the period ended June 30, 1997 is set forth under
Item 7(a) below as Exhibit 99.1.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
------------------------------------------------------------------
(a) Financial Statements of Business Acquired
99.1 The unaudited statements of assets to be acquired and liabilities to be
assumed of TI Defense as of June 30, 1997 and the related statements of
income and cash flows for each of the three months ended June 30, 1997
and June 30, 1996.
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: October 8, 1997
RAYTHEON COMPANY
By /s/ Christoph L. Hoffmann
---------------------------
Christoph L. Hoffmann
Executive Vice President
and Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
99.1 The unaudited statements of assets to be acquired and liabilities
to be assumed of TI Defense as of June 30, 1997 and the related
statements of income and cash flows for each of the three months
ended June 30, 1997 and June 30, 1996.
<PAGE>
EXHIBIT 99.1
Defense Business
of Texas Instruments Incorporated
Statements of Assets to be Acquired and Liabilities to be Assumed
(In thousands of dollars)
(unaudited)
June 30, 1997
--------------------------
Assets
Current assets:
Accounts receivable $ 236,845
Inventories (net of progress billings) 217,478
Prepaid expenses 2,372
--------------------------
Total current assets 456,695
Property, plant, and equipment, at cost 740,840
Less accumulated depreciation (433,458)
--------------------------
Property, plant and equipment (net) 307,382
Other assets 41,946
--------------------------
Total assets $ 806,023
==========================
Liabilities
Current liabilities:
Accounts payable and accrued expenses 211,499
Accrued Profit Sharing/Health Care 9,600
Accrued retirement costs - current 53,000
--------------------------
Total current liabilities 274,099
Deferred Credits -
--------------------------
Accrued retirements costs 177,788
--------------------------
Total liabilities 451,887
--------------------------
Net assets $ 354,136
==========================
<PAGE>
Defense Business
of Texas Instruments Incorporated
Statements of Income
(In thousands of dollars)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
-------------------------------------------------
<S> <C> <C> <C> <C>
Net revenues $424,090 $454,099 $823,749 $860,214
Operating costs and expenses:
Costs of revenues 329,029 346,882 637,947 650,439
Marketing, general, and
administrative 27,525 33,207 55,594 64,813
Research and development 25,675 18,070 43,720 38,204
---------------------------------------------------
Total 382,229 398,159 737,261 753,456
---------------------------------------------------
Profit from operations 41,861 55,940 86,488 106,758
Other expense (net) (1,362) (670) (1,802) (1,518)
---------------------------------------------------
Income before provision for income
taxes 40,449 55,270 84,686 105,240
Provision for income taxes 15,096 20,721 31,968 39,455
--------------------------------------------------
Net income $ 25,403 $ 34,549 $ 52,718 $ 65,785
==================================================
</TABLE>
<PAGE>
Defense Business
of Texas Instruments Incorporated
Statements of Cash Flows
(In thousands of dollars)
(unaudited)
Six Months Ended
June 30
1997 1996
------------------------
Cash flows from operating activities:
Net income $ 52,718 $ 65,785
Depreciation 41,379 37,105
Deferred income taxes (9,051) (1,603)
(Increase) decrease in working capital:
Accounts receivable 41,209 11,761
Inventories 3,671 (96,327)
Prepaid expenses (1,287) (1,232)
Accounts payable and accrued expenses (6,144) (29,793)
Accrued retirement costs (503) 4,290
Increase (decrease) in noncurrent accrued 5,544 4,235
retirement costs
Other (37,294) 5,616
------------------------
Net cash provided by (used in) operating activities 90,242 (163)
Cash flows from investing activities:
Additions to property, plant and equipment (16,441) (40,510)
------------------------
Net cash (used in) investing activities (16,441) (40,510)
Cash flows from financing activities:
Net transfers (to) from Texas Instruments (73,801) 40,673
------------------------
Net cash provided by (used in) financing activities (73,801) 40,673
Net increase (decrease) in cash and cash equivalents - -
Cash and cash equivalents at beginning of period - -
------------------------
Cash and cash equivalents at end of period $ - $ -
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