Raytheon Reports Solid Second Quarter 2013 Results

              Raytheon Reports Solid Second Quarter 2013 Results

-- Adjusted EPS(1) of $1.64, up 4 percent; EPS from continuing operations was
$1.50, up 6 percent

-- Adjusted Operating Margin(1) of 13.7 percent and reported operating margin
of 12.5 percent, both up 10 basis points

-- Net sales of $6.1 billion, up 2 percent

-- Increased full-year 2013 guidance for EPS

PR Newswire

WALTHAM, Mass., July 25, 2013

WALTHAM, Mass., July 25, 2013 /PRNewswire/ --Raytheon Company (NYSE: RTN)
announced second quarter 2013 Adjusted EPS^1 of $1.64 per diluted share
compared to $1.57 per diluted share in the second quarter 2012, up 4 percent.
Second quarter 2013 EPS from continuing operations was $1.50 compared to $1.41
in the second quarter 2012, up 6 percent. The second quarter 2012 Adjusted
EPS^1 has been revised to include the favorable $0.02 impact for the 2012
research and development (R&D) tax credit approved by Congress in January
2013. In addition, an unfavorable FAS/CAS Adjustment of $0.14 has been
excluded in both second quarters 2013 and 2012 Adjusted EPS^1. The increase in
both Adjusted EPS^1 and EPS from continuing operations was primarily driven by
operational improvements and capital deployment actions.

"Our world class technology and innovation have positioned us well to meet the
global security needs of our customers,and strong program execution drove
solid operating performance in the second quarter," said William H. Swanson,
Raytheon's Chairman and CEO.

Net sales for the second quarter 2013 were $6,115 million, up 2 percent from
$5,992 million in the second quarter 2012.

Operating cash flow from continuing operations for the second quarter 2013 was
an outflow of $41 million compared to an outflow of $259 million for the
second quarter 2012. The increase in operating cash flow from continuing
operations in the second quarter 2013 compared to the second quarter 2012 was
primarily due to the timing of required pension contributions.

In the second quarter 2013, the Company repurchased 3.4 million shares of
common stock for $225 million as part of its previously announced share
repurchase program. Year-to-date 2013, the Company repurchased 7.6 million
shares of common stock for $450 million.

The Company ended the second quarter 2013 with $1.3 billion of net debt. Net
debt is defined as total debt less cash and cash equivalents and short-term
investments.

_________________________________

^1 Adjusted EPS is diluted EPS from continuing operations attributable to
Raytheon Company common stockholders and Adjusted Operating Margin is total
operating margin, in each case, excluding the impact of the FAS/CAS
Adjustment, and from time to time, certain other items. In addition, the Q2
2012 Adjusted EPS amount has been revised to include the favorable $0.02
impact for the research and development (R&D) tax credit, approved by Congress
in January 2013, that relates to 2012. Adjusted EPS and Adjusted Operating
Margin are non-GAAP financial measures. See attachment F for a reconciliation
of these measures and a discussion of why the Company is presenting this
information.



Summary Financial Results
               2nd Quarter             %        Six Months          %
($ in
millions,      2013        2012        Change   2013      2012      Change
except per
share data)
Net Sales      $  6,115    $  5,992    2.1%     $ 11,994  $ 11,930  0.5%
Income from
Continuing
Operations
attributable   $  488      $  472      3.4%     $ 978     $ 922     6.1%
to

 Raytheon
Company
Adjusted       $  535      $  524      2.1%     $ 1,046   $ 1,026   1.9%
Income*
EPS from
Continuing     $  1.50     $  1.41     6.4%     $ 2.99    $ 2.74    9.1%
Operations
Adjusted EPS*  $  1.64     $  1.57     4.5%     $ 3.20    $ 3.05    4.9%
Operating Cash
Flow from      $  (41)     $  (259)             $ 381     $ (148)
Continuing
Operations
Workdays in
Fiscal         64          64                   127       128
Reporting
Calendar
* Adjusted Income is income from continuing operations attributable to
Raytheon Company common stockholders and Adjusted EPS is diluted EPS from
continuing operations attributable to Raytheon Company common stockholders, in
each case, excluding the after-tax impact of the FAS/CAS Adjustment and, from
time to time, certain other items. In addition to the FAS/CAS Adjustment, Six
Months 2013 Adjusted EPS excludes the $0.08 impact of the 2012 R&D tax credit.
In addition, the Q2 2012 and Six Months 2012 Adjusted EPS amounts have been
revised to include the favorable $0.02 and $0.04 impact, respectively, for the
2012 R&D tax credit. Adjusted Income and Adjusted EPS are non-GAAP financial
measures. See attachment F for a reconciliation of these measures and a
discussion of why the Company is presenting this information.



Bookings and Backlog

Bookings
($ in millions)                      2nd Quarter       Six Months
                                     2013     2012     2013     2012
Bookings $ 5,324  $ 6,157  $ 8,930  $ 11,319



Backlog
($ in millions)                  Period Ending
                                 Q2 2013   Q2 2012   2012
Backlog                          $ 32,435  $ 33,923  $ 36,181
Funded Backlog $ 22,169  $ 23,085  $ 24,047



The Company had bookings of $5.3 billion in the second quarter 2013 and ended
the second quarter 2013 with a backlog of $32.4 billion, compared to $33.9
billion at the end of the second quarter 2012.

Outlook

The Company has updated its financial outlook for 2013 and increased guidance
for EPS. The 2013 outlook reflects the Company's current expectations of the
effects of sequestration under the Budget Control Act (BCA) of 2011. Charts
containing additional information on the Company's 2013 outlook are available
on the Company's website at www.raytheon.com/ir.



2013 Financial Outlook
                                                 Current       Prior (4/25/13)
Net Sales ($B)                                   23.5 -       23.2 - 23.7
                                                 23.7*
FAS/CAS Adjustment ($M)                          (286)         (286)
Interest Expense, net ($M)                       (200) -       (200) - (210)
                                                 (210)
Diluted Shares (M)                               323 - 324*    324 - 327
Effective Tax Rate                               ~29%*        ~29.5%
EPS from Continuing Operations                   $5.51 -       $5.26 - $5.41
                                                 $5.61*
Adjusted EPS**                                   $6.00 -       $5.75 - $5.90
                                                 $6.10*
Operating Cash Flow from Continuing Operations   2.1 - 2.3    2.1 - 2.3
($B)
* Denotes change from prior guidance.
** Adjusted EPS is diluted EPS from continuing operations attributable to
Raytheon Company common stockholders, excluding the after-tax impact of the
FAS/CAS Adjustment and, from time to time, certain other items. In addition to
the FAS/CAS Adjustment, 2013 Adjusted EPS guidance also excludes the impact of
the 2012 R&D tax credit. See attachment F for a reconciliation of this measure
and a discussion of why the Company is presenting this information.



Segment Results

As previously announced, effective April 1, 2013, the Company consolidated its
structure. The new structure consists of the following four businesses:
Integrated Defense Systems (IDS); Intelligence, Information and Services
(IIS); Missile Systems (MS); and Space and Airborne Systems (SAS). The
Company's reportable segments for the second quarter ending June 30, 2013 are
consistent with the new structure. All segment data has been recast to
reflect this consolidation.



Integrated Defense
Systems
          2nd Quarter                        Six Months
($ in     2013           2012       % Change  2013           2012       %
millions)                                                               Change
Net Sales $      1,721   $  1,574   9%        $      3,317   $  3,152   5%
Operating $      326     $  269     21%       $      588     $  507     16%
Income
Operating 18.9%          17.1%                17.7%          16.1%
Margin



Integrated Defense Systems (IDS) had second quarter 2013 net sales of $1,721
million, up 9 percent compared to $1,574 million in the second quarter 2012.
The increase in net sales was primarily due to higher sales on various
international air and missile defense programs. IDS recorded $326 million of
operating income compared to $269 million in the second quarter 2012. The
increase in operating income was primarily driven by international programs.

During the quarter, IDS booked $93 million for in-service support for the
Collins class submarine for the Royal Australian Navy and $85 million on the
Standard Terminal Automation Replacement System (STARS) program for the
Federal Aviation Administration (FAA).



Intelligence, Information and
Services
          2nd Quarter                        Six Months
($ in     2013           2012       % Change  2013           2012       %
millions)                                                               Change
Net Sales $      1,570   $  1,597   -2%       $      3,091   $  3,185   -3%
Operating $      131     $  138     -5%       $      255     $  274     -7%
Income
Operating 8.3%           8.6%                 8.2%           8.6%
Margin



Intelligence, Information and Services (IIS) had second quarter 2013 net sales
of $1,570 million compared to $1,597 million in the second quarter 2012. IIS
recorded $131 million of operating income compared to $138 million in the
second quarter 2012.

During the quarter, IIS booked $582 million on domestic training programs and
$117 million on foreign training programs in support of Warfighter FOCUS
activities. IIS also booked $252 million on a number of classified contracts.



Missile Systems
          2nd Quarter                        Six Months
($ in     2013           2012       % Change  2013           2012       %
millions)                                                               Change
Net Sales $      1,690   $  1,580   7%        $      3,326   $  3,181   5%
Operating $      213     $  209     2%        $      427     $  430     -1%
Income
Operating 12.6%          13.2%                12.8%          13.5%
Margin



Missile Systems (MS) had second quarter 2013 net sales of $1,690 million, up 7
percent compared to $1,580 million in the second quarter 2012. The increase in
net sales was primarily driven by higher sales on Standard Missile-3 (SM-3)
and an international Paveway™ program. MS recorded $213 million of operating
income compared to $209 million in the second quarter 2012.

During the quarter, MS booked $543 million for Advanced Medium-Range
Air-to-Air Missiles (AMRAAM) for the U.S. Air Force, the U.S. Navy and
international customers, $228 million for SM-3 for the Missile Defense Agency
(MDA), $224 million for the Exoatmospheric Kill Vehicle (EKV) for the MDA,
$132 million for Paveway™ for international customers, and $98 million for the
Joint Stand-off Weapon (JSOW) for the U.S. Navy and international customers.



Space and Airborne Systems
          2nd Quarter                        Six Months
($ in     2013           2012       % Change  2013           2012       %
millions)                                                               Change
Net Sales $      1,620   $  1,709   -5%       $      3,202   $  3,325   -4%
Operating $      216     $  246     -12%      $      443     $  469     -6%
Income
Operating 13.3%          14.4%                13.8%          14.1%
Margin



Space and Airborne Systems (SAS) had second quarter 2013 net sales of $1,620
million compared to $1,709 million in the second quarter 2012. The change in
net sales was primarily due to lower volume on classified programs. SAS
recorded $216 million of operating income compared to $246 million in the
second quarter 2012. The change in operating income was primarily due to prior
year favorable program efficiencies, a change in contract mix and lower
volume.

During the quarter, SAS booked $78 million for the production of Electronic
Warfare Systems for an international customer. SAS also booked $351 million on
a number of classified contracts.

As previously announced on July 8, 2013, SAS was awarded $279 million to
develop the Next Generation Jammer (NGJ) for the U.S. Navy.

About Raytheon
Raytheon Company, with 2012 sales of $24 billion and 68,000 employees
worldwide, is a technology and innovation leader specializing in defense,
security and civil markets throughout the world. With a history of innovation
spanning 91 years, Raytheon provides state-of-the-art electronics, mission
systems integration and other capabilities in the areas of sensing; effects;
and command, control, communications and intelligence systems, as well as a
broad range of mission support services. Raytheon is headquartered in Waltham,
Mass. For more about Raytheon, visit us at www.raytheon.comand follow us on
Twitter @raytheon.

Conference Call on the Second Quarter 2013 Financial Results
Raytheon's financial results conference call will be held on Thursday,
July25, 2013 at 9 a.m. ET. Participants will include William H. Swanson,
Chairman and CEO; David C. Wajsgras, senior vice president and CFO; and other
Company executives.

The dial-in number for the conference call will be (866) 510-0712 in the U.S.
or (617) 597-5380 outside of the U.S. The conference call will also be
audiocast on the Internet at www.raytheon.com/ir. Individuals may listen to
the call and download charts that will be used during the call. These charts
will be available for printing prior to the call.

Interested parties are encouraged to check the website ahead of time to ensure
their computers are configured for the audio stream. Instructions for
obtaining the free required downloadable software are posted on the site.

Disclosure Regarding Forward-looking Statements
This release and the attachments contain forward-looking statements, including
information regarding the Company's financial outlook, future plans,
objectives, business prospects and anticipated financial performance. These
forward-looking statements are not statements of historical facts and
represent only the Company's current expectations regarding such matters.
These statements inherently involve a wide range of known and unknown risks
and uncertainties. The Company's actual actions and results could differ
materially from what is expressed or implied by these statements. Specific
factors that could cause such a difference include, but are not limited to:
the Company's dependence on the U.S. Government for a significant portion of
its business and the risks associated with U.S. Government sales, including
changes or shifts in defense spending due to budgetary constraints, spending
cuts resulting from sequestration under the Budget Control Act of 2011, or
otherwise, uncertain funding of programs, potential termination of contracts,
and difficulties in contract performance; the resolution of program
terminations; the ability to procure new contracts; the risks of conducting
business in foreign countries; the ability to comply with extensive
governmental regulation, including import and export policies, the Foreign
Corrupt Practices Act, the International Traffic in Arms Regulations, and
procurement and other regulations; the impact of competition; the ability to
develop products and technologies; the impact of changes in the financial
markets and global economic conditions; the risk that actual pension returns,
discount rates or other actuarial assumptions are significantly different than
the Company's assumptions; the risk of cost overruns, particularly for the
Company's fixed-price contracts; dependence on component availability,
subcontractor performance and key suppliers; risks of a negative government
audit; the use of accounting estimates in the Company's financial statements;
risks associated with acquisitions, dispositions, joint ventures and other
business arrangements; risks of an impairment of goodwill or other intangible
assets; the outcome of contingencies and litigation matters, including
government investigations; the ability to recruit and retain qualified
personnel; the impact of potential security and cyber threats, and other
disruptions; and other factors as may be detailed from time to time in the
Company's public announcements and Securities and Exchange Commission filings.
The Company undertakes no obligation to make any revisions to the
forward-looking statements contained in this release and the attachments or to
update them to reflect events or circumstances occurring after the date of
this release, including any acquisitions, dispositions or other business
arrangements that may be announced or closed after such date. This release and
the attachments also contain non-GAAP financial measures. A GAAP
reconciliation and a discussion of the Company's use of these measures are
included in this release or the attachments.



Attachment A

Raytheon Company

Preliminary
Statement of
Operations
Information

Second Quarter
2013
(In millions,
except per share  Three Months Ended                Six Months Ended
amounts)
                  30-Jun-13              01-Jul-12  30-Jun-13       01-Jul-12
Net sales         $              6,115   $  5,992   $      11,994   $  11,930
Operating
expenses
 Cost of sales  4,753                  4,652      9,358           9,311

Administrative    420                    404        828             809
and selling
expenses
 Research and
development       176                    194        336             362
expenses
Total operating   5,349                  5,250      10,522          10,482
expenses
Operating income  766                    742        1,472           1,448
Non-operating
(income)
expense, net
 Interest       53                     50         106             100
expense
 Interest       (3)                    (1)        (6)             (3)
income
 Other
(income)          3                      3          (4)             (5)
expense, net
Total
non-operating     53                     52         96              92
(income)
expense, net
Income from
continuing        713                    690        1,376           1,356
operations
before taxes
Federal and
foreign income    220                    219        387             431
taxes
Income from
continuing        493                    471        989             925
operations
Income (loss)
from
discontinued      —                      (1)        (2)             (3)
operations, net
of tax
Net income        493                    470        987             922
Less: Net income
(loss)
attributable to
noncontrolling
 interests in   5                      (1)        11              3
subsidiaries
Net income
attributable to   $              488     $  471     $      976      $  919
Raytheon Company
Basic earnings
(loss) per share
attributable to
Raytheon
Company common
stockholders:
 Income from
continuing        $              1.50    $  1.41    $      3.00     $  2.75
operations
 Income (loss)
from
discontinued      —                      —          (0.01)          (0.01)
operations, net
of tax
 Net income     1.50                   1.41       2.99            2.74
Diluted earnings
(loss) per share
attributable to
Raytheon
Company common
stockholders:
 Income from
continuing        $              1.50    $  1.41    $      2.99     $  2.74
operations
 Income (loss)
from
discontinued      —                      —          (0.01)          (0.01)
operations, net
of tax
 Net income     1.50                   1.41       2.99            2.73
Amounts
attributable to
Raytheon Company
common
stockholders:
Income from
continuing        $              488     $  472     $      978      $  922
operations
Income (loss)
from
discontinued      —                      (1)        (2)             (3)
operations, net
of tax
Net income     $              488     $  471     $      976      $  919
Average shares
outstanding
 Basic          324.9                  333.4      326.1           335.4
 Diluted        325.6                  334.4      326.9           336.5



Attachment B

Raytheon Company

Preliminary Segment Information

Second Quarter 2013
                                                           Operating Income
               Net Sales ^(1)        Operating Income      As a Percent of Net
                                     ^(1)                  Sales ^(1)
(In millions,
except         Three Months Ended    Three Months Ended    Three Months Ended
percentages)
               30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12
Integrated                                     
Defense           1,721   $  1,574   $  326        269       18.9%      17.1%
Systems        $                                $
Intelligence,
Information       1,570      1,597      131        138       8.3%       8.6%
and Services
Missile                      
Systems           1,690                 213        209       12.6%      13.2%
                             1,580
Space and                    
Airborne          1,620                 216        246       13.3%      14.4%
Systems                      1,709
FAS/CAS                      
Adjustment        —                     (72)       (71)
                             —
Corporate and     (486)      (468)      (48)       (49)
Eliminations
Total          $  6,115   $  5,992   $  766     $  742       12.5%      12.4%
^(1) These amounts are revised to reflect our segment consolidation.
                                                           Operating Income
               Net Sales ^(1)        Operating Income      As a Percent of Net
                                     ^(1)                  Sales ^(1)
(In millions,
except         Six Months Ended      Six Months Ended      Six Months Ended
percentages)
               30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12
Integrated
Defense        $  3,317   $  3,152   $  588     $  507       17.7%      16.1%
Systems
Intelligence,
Information       3,091      3,185      255        274       8.2%       8.6%
and Services
Missile           3,326      3,181      427        430       12.8%      13.5%
Systems
Space and
Airborne          3,202      3,325      443        469       13.8%      14.1%
Systems
FAS/CAS           —          —          (143)      (141)
Adjustment
Corporate and     (942)      (913)      (98)       (91)
Eliminations
Total          $  11,994  $  11,930  $  1,472   $  1,448     12.3%      12.1%
^(1) These amounts are revised to reflect our segment consolidation.



Attachment B - Pro Forma

Raytheon Company

Pro-Forma Segment Information

Full Year 2011, Quarters within and Full Year
2012, and First Quarter 2013
As previously announced, effective April 1, 2013, we consolidated our structure. Our new
structure consists of the following four businesses: Integrated Defense Systems (IDS);
Intelligence, Information and Services (IIS); Missile Systems (MS); and Space and Airborne
Systems (SAS). The amounts, discussion and presentation of our business segments, including
eliminations for intersegment activity as set forth in our Form 10-Q, reflect our new structure.
               Net Sales                                                   Net Sales
(In millions)  Three Months Ended                                          Twelve Months Ended
               31-Mar-13   31-Dec-12   30-Sep-12   01-Jul-12   01-Apr-12   31-Dec-12   31-Dec-11
Integrated
Defense        $   1,596   $   1,730   $   1,610   $   1,574   $   1,578   $  6,492    $ 6,441
Systems
Intelligence,
Information
and                1,521       1,603       1,547       1,597       1,588      6,335      6,470

 Services
Missile            1,636       1,781       1,677       1,580       1,601      6,639      6,801
Systems
Space and
Airborne           1,582       1,820       1,678       1,709       1,616      6,823      6,818
Systems
Corporate and      (456)       (495)       (467)       (468)       (445)      (1,875)    (1,739)
Eliminations
Total          $   5,879   $   6,439   $   6,045   $   5,992   $   5,938   $  24,414   $ 24,791
               Operating Income                                            Operating Income
(In millions)  Three Months Ended                                          Twelve Months Ended
               31-Mar-13   31-Dec-12   30-Sep-12   01-Jul-12   01-Apr-12   31-Dec-12   31-Dec-11
Integrated
Defense        $   262     $   262     $   278     $   269     $   238     $  1,047    $ 998
Systems
Intelligence,
Information
and                124         136         126         138         136        536        480

 Services
Missile            214         198         233         209         221        861        939
Systems
Space and
Airborne           227         283         236         246         223        988        951
Systems
FAS/CAS            (71)        (67)        (47)        (71)        (70)       (255)      (337)
Adjustment
Corporate and      (50)        (57)        (40)        (49)        (42)       (188)      (201)
Eliminations
Total          $   706     $   755     $   786     $   742     $   706     $  2,989    $ 2,830
               Operating Income                                           Operating Income
               As a Percent of Net Sales                                  As a Percent of Net
                                                                           Sales
               Three Months Ended                                         Twelve Months Ended
               31-Mar-13  31-Dec-12  30-Sep-12  01-Jul-12  01-Apr-12  31-Dec-12  31-Dec-11
Integrated
Defense            16.4%       15.1%       17.3%       17.1%       15.1%      16.1%      15.5%
Systems
Intelligence,
Information
and                8.2%        8.5%        8.1%        8.6%        8.6%       8.5%       7.4%

 Services
Missile            13.1%       11.1%       13.9%       13.2%       13.8%      13.0%      13.8%
Systems
Space and
Airborne           14.3%       15.5%       14.1%       14.4%       13.8%      14.5%      13.9%
Systems
FAS/CAS
Adjustment
Corporate and
Eliminations
Total             12.0%       11.7%       13.0%       12.4%       11.9%      12.2%      11.4%



Attachment C

Raytheon Company

Other Preliminary Information

Second Quarter 2013
(In millions)                    Funded Backlog ^(1)    Total Backlog ^(1)
                                 30-Jun-13  31-Dec-12  30-Jun-13  31-Dec-12
Integrated Defense Systems      $  8,295    $  9,188    $  9,913    $  11,656
Intelligence, Information and       2,531       2,848       5,754       6,409
Services 
Missile Systems                    6,789       7,535       9,695       10,676
Space and Airborne Systems         4,554       4,476       7,073       7,440
Total                           $  22,169   $  24,047   $  32,435   $  36,181
^(1) These amounts are revised to reflect segment consolidation.
                                 Bookings               Bookings
                                 Three Months Ended     Six Months Ended
                                 30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12
Total Bookings                  $  5,324    $  6,157    $  8,930    $  11,319



Attachment C - Pro Forma
Raytheon Company
Pro Forma Other Information
Full Year 2011, Quarters within and Full Year 2012, and
First Quarter 2013
As previously announced, effective April 1, 2013, we consolidated our structure. Our new
structure consists of the following four businesses: Integrated Defense Systems (IDS);
Intelligence, Information and Services (IIS); Missile Systems (MS); and Space and Airborne
Systems (SAS). The amounts, discussion and presentation of our business segments, including
eliminations for intersegment activity as set forth in our Form 10-Q, reflect our new structure.
(In millions) Funded Backlog
              31-Mar-13   31-Dec-12   30-Sep-12   01-Jul-12   01-Apr-12   31-Dec-11
Integrated
Defense       $  8,841    $  9,188    $  8,171    $  8,530    $  8,714    $  8,512
Systems
Intelligence,
Information   2,459       2,848       3,029       2,991       2,878       2,821
and Services
Missile       6,656       7,535       7,069       7,037       7,171       6,957
Systems
Space and
Airborne      4,567       4,476       4,617       4,527       4,207       4,172
Systems
Total         $  22,523   $  24,047   $  22,886   $  23,085   $  22,970   $  22,462
(In millions) Total Backlog
              31-Mar-13   31-Dec-12   30-Sep-12   01-Jul-12   01-Apr-12   31-Dec-11
Integrated
Defense       $  10,924   $  11,656   $  10,150   $  10,358   $  10,863   $  11,547
Systems
Intelligence,
Information   5,831       6,409       6,853       6,413       6,441       7,027
and Services
Missile       9,648       10,676      10,476      9,655       9,300       9,446
Systems
Space and
Airborne      7,143       7,440       7,536       7,497       7,699       7,292
Systems
Total         $  33,546   $  36,181   $  35,015   $  33,923   $  34,303   $  35,312
              Bookings                                                    Bookings
(In millions) Three Months Ended                                          Twelve Months Ended
              31-Mar-13   31-Dec-12   30-Sep-12   01-Jul-12   01-Apr-12   31-Dec-12   31-Dec-11
Integrated
Defense       $  926      $  3,229    $  1,361    $  1,148    $  895      $  6,633    $  7,605
Systems
Intelligence,
Information   830         1,189       1,870       1,520       891         5,470       6,158
and Services
Missile       811         1,947       2,418       1,977       1,452       7,794       6,747
Systems
Space and
Airborne      1,039       1,527       1,644       1,512       1,924       6,607       6,045
Systems
Total         $  3,606    $  7,892    $  7,293    $  6,157    $  5,162    $  26,504   $  26,555



Attachment D

Raytheon Company

Preliminary Balance Sheet Information

Second Quarter 2013
(In millions)
                                                    30-Jun-13       31-Dec-12
Assets
Current assets
 Cash and cash equivalents                        $      2,467    $  3,188
 Short-term investments                           995             856
 Contracts in process, net                        5,156           4,543
 Inventories                                      454             381
 Deferred taxes                                   90              96
 Prepaid expenses and other current assets        114             182
 Total current assets                          9,276           9,246
Property, plant and equipment, net                  1,924           1,986
Deferred taxes                                      1,140           1,367
Goodwill                                            12,764          12,756
Other assets, net                                   1,272           1,331
 Total assets                               $      26,376   $  26,686
Liabilities and Equity
Current liabilities
 Advance payments and billings in excess of costs $      2,140    $  2,398
incurred
 Accounts payable                                 1,164           1,348
 Accrued employee compensation                    927             1,014
 Other accrued expenses                           1,223           1,142
 Total current liabilities                     5,454           5,902
Accrued retiree benefits and other long-term        7,443           7,854
liabilities
Deferred taxes                                      10              9
Long-term debt                                      4,732           4,731
Equity
Raytheon Company stockholders' equity
 Common stock                                     3               3
 Additional paid-in capital                       2,526           2,928
 Accumulated other comprehensive loss             (7,464)         (7,788)
 Retained earnings                                13,503          12,883
 Total Raytheon Company stockholders' equity   8,568           8,026
 Noncontrolling interests in subsidiaries         169             164
 Total equity                                  8,737           8,190
 Total liabilities and equity               $      26,376   $  26,686



Attachment E

Raytheon Company

Preliminary Cash Flow
Information

Second Quarter 2013
(In millions)                  Three Months Ended       Six Months Ended
                               30-Jun-13     01-Jul-12  30-Jun-13    01-Jul-12
Net income                     $      493    $  470     $      987   $    922
Loss (income) from
discontinued operations, net   —             1          2            3
of tax
Income from continuing         493           471        989          925
operations
Depreciation                   77            81         151          158
Amortization                   36            35         70           70
Working capital (excluding     (489)         (442)      (1,282)      (1,343)
pension and income taxes)*
Other long-term liabilities    4             (28)       (11)         (26)
Pension and other              (45)          (313)      246          (59)
postretirement benefit plans
Other, net                     (117)         (63)       218          127
 Net operating cash flow  $      (41)   $  (259)   381          (148)
from continuing operations
Supplemental Cash Flow
Information
Capital spending               $      (56)   $  (67)    (105)        (137)
Internal use software spending (12)          (26)       (21)         (46)
Acquisitions                   (14)          —          (14)         —
Dividends                      (179)         (167)      (343)        (313)
Repurchases of common stock    (225)         (200)      (450)        (600)
* Working capital (excluding pension and income taxes) is a summation of
changes in: contracts in process, net and advance payments and billings in
excess of costs incurred, inventories, prepaid expenses and other current
assets, accounts payable, accrued employee compensation, and other accrued
expenses from the Consolidated Statements of Cash Flows.



Attachment F

Raytheon Company

Non-GAAP Financial Measures -
Adjusted EPS, Adjusted Income and
Adjusted Operating Margin

Second Quarter 2013
Adjusted EPS
Non-GAAP
Reconciliation
                                                             2013                    2013
(In millions,
except per                                                   Current Guidance        Prior Guidance
share
amounts)
                 Three Months Ended    Six Months Ended      Low end     High end    Low end     High end
                 30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12  of range    of range    of range    of range
Diluted EPS from
continuing
operations
attributable to
    Raytheon
    Company      $  1.50    $  1.41    $ 2.99     $  2.74    $ 5.51      $ 5.61      $ 5.26      $ 5.41
    common
    stockholders
Per share impact
of the FAS/CAS   0.14       0.14       0.28       0.27       0.57        0.58        0.57        0.57
Adjustment (A)
Per share impact
of the 2012
research and
development
    (R&D) tax    —          0.02       (0.08)     0.04       (0.08)      (0.08)      (0.08)      (0.08)
    credit (B)
Adjusted EPS     $  1.64    $  1.57    $ 3.20     $  3.05    $ 6.00      $ 6.10      $ 5.75      $ 5.90
(2), (3)
(A) FAS/CAS      $  72      $  71      $ 143      $  141     $ 286       $ 286       $ 286       $ 286
    Adjustment
     Tax    (25)       (25)       (50)       (49)       (100)       (100)       (100)       (100)
    effect (1)
    After-tax    47         46         93         92         186         186         186         186
    impact
    Diluted      325.6      334.4      326.9      336.5      324.0       323.0       327.0       324.0
    shares
    Per share    $  0.14    $  0.14    $ 0.28     $  0.27    $ 0.57      $ 0.58      $ 0.57      $ 0.57
    impact
(B) 2012 R&D tax $  —       $  6       $ (25)     $  12      $ (25)      $ (25)      $ (25)      $ (25)
    credit
    Diluted      —          334.4      326.9      336.5      324.0       323.0       327.0       324.0
    shares
    Per share    $  —       $  0.02    $ (0.08)   $  0.04    $ (0.08)    $ (0.08)    $ (0.08)    $ (0.08)
    impact
Adjusted Income
Non-GAAP
Reconciliation
(In millions)
                 Three Months Ended    Six Months Ended
                 30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12
Income from
continuing
operations
attributable to
Raytheon         $  488     $  472     $ 978      $  922

 Company
common
stockholders
FAS/CAS          47         46         93         92
Adjustment (1)
2012 R&D tax     —          6          (25)       12
credit
Adjusted Income  $  535     $  524     $ 1,046    $  1,026
(2), (4)
Adjusted Operating Margin
Non-GAAP Reconciliation
                                                             2013                    2013
                                                             Current Guidance        Prior Guidance
                 Three Months Ended    Six Months Ended      Low end     High end    Low end     High end
                 30-Jun-13  01-Jul-12  30-Jun-13  01-Jul-12  of range    of range    of range    of range
Operating Margin 12.5%      12.4%      12.3%      12.1%      11.7     %  11.8     %  11.4     %  11.6     %
Impact of the
FAS/CAS          1.2%       1.2%       1.2%       1.2%       1.2      %  1.2      %  1.2      %  1.2      %
Adjustment
Adjusted
Operating Margin 13.7%      13.6%      13.5%      13.3%      12.9     %  13.0     %  12.6     %  12.8     %
(2), (5)

(1) Tax effected at 35% federal statutory tax rate.
    These amounts are not measures of financial performance under U.S.
    generally accepted accounting principles (GAAP). They should be
    considered supplemental to and not a substitute for financial performance
    in accordance with GAAP and may not be defined and calculated by other
    companies in the same manner. These amounts exclude the FAS/CAS
    Adjustment and, from time to time, certain other items. We are providing
    these measures because management uses them for the purposes of
(2) evaluating and forecasting the Company's financial performance and
    believes that they provide additional insights into the Company's
    underlying business performance. We also believe that they allow
    investors to benefit from being able to assess our operating performance
    in the context of how our principal customer, the U.S. Government, allows
    us to recover pension and postretirement benefit (PRB) costs and to
    better compare our operating performance to others in the industry on
    that same basis. Amounts may not recalculate directly due to rounding.
    Adjusted EPS is diluted EPS from continuing operations attributable to
    Raytheon Company common stockholders excluding the EPS impact of the
    FAS/CAS Adjustment and, from time to time, certain other items. Six
    Months Ended 2013 Adjusted EPS also excludes the earnings per share
    impact of an R&D tax credit that relates to 2012. In addition, the Q2
(3) 2012 and Six Months Ended 2012 Adjusted EPS amount has been revised to
    include the favorable impact for the 2012 R&D tax credit. In January
    2013, Congress approved legislation that included the extension of the
    R&D tax credit. The legislation retroactively reinstated the R&D tax
    credit for 2012 and extended it through December 31, 2013. As a result,
    we recorded the 2012 benefit in the first quarter of 2013.
    Adjusted Income is income from continuing operations attributable to
    Raytheon Company common stockholders excluding the after-tax impact of
(4) the FAS/CAS Adjustment and, from time to time, certain other items. Six
    Months Ended 2013 Adjusted Income also excludes the R&D tax credit that
    relates to 2012, as discussed above. Q2 2012 and Six Months Ended 2012
    Adjusted Income also includes the 2012 R&D tax credit as discussed above.
    Adjusted Operating Margin is defined as total operating margin excluding
(5) the margin impact of the FAS/CAS Adjustment and, from time to time,
    certain other items.



Raytheon Company
Global Headquarters
Waltham, Mass.

Investor Relations Contact
Todd Ernst
781.522.5141

Media Contact
Jon Kasle
781.522.5110



SOURCE Raytheon Company

Website: http://www.raytheon.com
 
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