Raytheon Reports Strong Third Quarter 2017 Results
- Bookings of $7.0 billion; backlog of $36.7 billion
- Net sales of $6.3 billion, up 4.5 percent
- EPS from continuing operations of $1.97
- Operating cash flow from continuing operations of $382 million
- Updated full-year 2017 guidance
WALTHAM, Mass., Oct. 26, 2017 /PRNewswire/ -- Raytheon Company (NYSE: RTN) today announced net sales for the third quarter 2017 of $6.3 billion, up 4.5 percent compared to $6.0 billion in the third quarter 2016. Third quarter 2017 EPS from continuing operations was $1.97 compared to $1.84 in the third quarter 2016. The increase in the third quarter 2017 EPS from continuing operations was primarily driven by operational improvements.
"We delivered strong bookings and solid operating performance in the third quarter," said Thomas A. Kennedy, Raytheon Chairman and CEO. "Global customer demand drove an increase in our backlog, which positions us well for continued growth in 2018."
Operating cash flow from continuing operations for the third quarter 2017 was $382 million compared to $640 million for the third quarter 2016. As expected, the change in operating cash flow from continuing operations was primarily due to higher required pension contributions in the third quarter 2017, partially offset by the timing of collections.
In the third quarter 2017, the company repurchased 1.1 million shares of common stock for $200 million. Year-to-date 2017, the company repurchased 4.4 million shares of common stock for $700 million.
Bookings in the third quarter 2017 were $7.0 billion, slightly higher than the third quarter 2016. Backlog at the end of the third quarter 2017 was $36.7 billion, an increase of approximately $950 million compared to the third quarter 2016.
| Summary Financial Results |
|||||||||||
| 3rd Quarter |
% |
Nine Months |
% |
||||||||
| ($ in millions, except per share data) |
2017 |
2016 |
Change |
2017 |
2016 |
Change |
|||||
| Bookings |
$ |
6,957 |
$ |
6,923 |
0.5% |
$ |
19,177 |
$ |
20,227 |
-5.2% |
|
| Net Sales |
$ |
6,284 |
$ |
6,014 |
4.5% |
$ |
18,565 |
$ |
17,845 |
4.0% |
|
| Income from Continuing Operations attributable to |
$ |
573 |
$ |
543 |
5.5% |
$ |
1,6291 |
$ |
1,6882 |
-3.5% |
|
| EPS from Continuing Operations |
$ |
1.97 |
$ |
1.84 |
7.1% |
$ |
5.591 |
$ |
5.672 |
-1.4% |
|
| Operating Cash Flow from Continuing Operations |
$ |
382 |
$ |
640 |
$ |
1,123 |
$ |
1,711 |
|||
| Workdays in Fiscal Reporting Calendar |
62 |
63 |
190 |
192 |
|||||||
| 1 Nine months 2017 Income from Continuing Operations attributable to Raytheon Company and EPS from Continuing Operations included the $25 million after-tax ($39 million pretax) and $0.09 unfavorable impact, respectively, related to the early retirement of debt in the second quarter 2017. |
|||||||||||
| 2 Nine months 2016 Income from Continuing Operations attributable to Raytheon Company and EPS from Continuing Operations included the tax-free gain of $158 million and $0.53 impact, respectively, for the second quarter 2016 TRS transaction. |
|||||||||||
| Backlog |
|||||||||||||
| Period Ending |
|||||||||||||
| ($ in millions) |
Q3 2017 |
Q3 2016 |
2016 |
||||||||||
| Backlog |
$ |
36,676 |
$ |
35,726 |
$ |
36,709 |
|||||||
Outlook
The company has updated its financial outlook for 2017. Charts containing additional information on the company's 2017 outlook are available at www.raytheon.com/ir.
| 2017 Financial Outlook |
|||
| Current |
Prior (7/27/17) |
||
| Net Sales ($B) |
25.3 - 25.6* |
25.1 - 25.6 |
|
| Deferred Revenue Adjustment ($M)1 |
(33) |
(33) |
|
| Amortization of Acquired Intangibles ($M)1 |
(127) |
(127) |
|
| FAS/CAS Adjustment ($M)2 |
389* |
428 |
|
| Interest Expense, net ($M) |
(185) - (190)* |
(196) - (201) |
|
| Diluted Shares (M) |
~292 |
~292 |
|
| Effective Tax Rate |
~30.0%* |
~30.5% |
|
| EPS from Continuing Operations |
$7.45 - $7.55* |
$7.35 - $7.50 |
|
| Operating Cash Flow from Continuing Operations ($B) |
2.8 - 3.1 |
2.8 - 3.1 |
|
| *Denotes change from prior guidance |
|||
| 1 Deferred Revenue Adjustment and Amortization of Acquired Intangibles represent the unfavorable impact of the acquisition accounting adjustments to record acquired deferred revenue at fair value and the amortization of acquired intangible assets for all business segments. |
|||
| 2 The full-year 2017 FAS/CAS Adjustment reflects a $39 million ($0.09 per share) reduction, of which $26 million ($0.06 per share) was recorded in Q3 2017 and $13 million ($0.03 per share) is expected to be recorded in Q4 2017. This is due to the annual update in Q3 2017 of the actuarial estimates for pension and other postretirement benefit plans. |
|||
Segment Results
The company's reportable segments are: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint™.
| Integrated Defense Systems |
|||||||||||||||
| 3rd Quarter |
Nine Months |
||||||||||||||
| ($ in millions) |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
|||||||||
| Net Sales |
$ |
1,391 |
$ |
1,334 |
4% |
$ |
4,251 |
$ |
4,069 |
4% |
|||||
| Operating Income1 |
$ |
231 |
$ |
211 |
9% |
$ |
688 |
$ |
733 |
NM |
|||||
| Operating Margin1 |
16.6% |
15.8% |
16.2% |
18.0% |
|||||||||||
| 1 Nine months 2016 operating income and operating margin include the $158 million tax-free gain from the second quarter |
|||||||||||||||
| NM = Not Meaningful |
Integrated Defense Systems (IDS) had third quarter 2017 net sales of $1,391 million, up 4 percent compared to $1,334 million in the third quarter 2016. The increase in net sales for the quarter was primarily driven by higher net sales on an international early warning radar program awarded in the first quarter 2017.
IDS recorded $231 million of operating income in the third quarter 2017 compared to $211 million in the third quarter 2016. The increase in operating income for the quarter was primarily driven by higher net program efficiencies and higher volume.
| Intelligence, Information and Services |
|||||||||||||
| 3rd Quarter |
Nine Months |
||||||||||||
| ($ in millions) |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
|||||||
| Net Sales |
$ |
1,543 |
$ |
1,534 |
1% |
$ |
4,605 |
$ |
4,653 |
-1% |
|||
| Operating Income |
$ |
112 |
$ |
123 |
-9% |
$ |
338 |
$ |
347 |
-3% |
|||
| Operating Margin |
7.3% |
8.0% |
7.3% |
7.5% |
|||||||||
Intelligence, Information and Services (IIS) had third quarter 2017 net sales of $1,543 million compared to $1,534 million in the third quarter 2016.
IIS recorded $112 million of operating income in the third quarter 2017 compared to $123 million in the third quarter 2016. The change in operating margin was primarily due to a change in program mix and other performance.
During the quarter, IIS booked $469 million on domestic and foreign training programs in support of Warfighter FOCUS activities and $104 million to provide intelligence, surveillance and reconnaissance (ISR) support to the U.S. Air Force. IIS also booked $686 million on a number of classified contracts.
| Missile Systems |
|||||||||||||
| 3rd Quarter |
Nine Months |
||||||||||||
| ($ in millions) |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
|||||||
| Net Sales |
$ |
1,945 |
$ |
1,770 |
10% |
$ |
5,602 |
$ |
5,199 |
8% |
|||
| Operating Income |
$ |
280 |
$ |
235 |
19% |
$ |
732 |
$ |
660 |
11% |
|||
| Operating Margin |
14.4% |
13.3% |
13.1% |
12.7% |
|||||||||
Missile Systems (MS) had third quarter 2017 net sales of $1,945 million, up 10 percent compared to $1,770 million in the third quarter 2016. The increase in net sales for the quarter was primarily driven by higher net sales on the Paveway™ and Excalibur® programs.
MS recorded $280 million of operating income in the third quarter 2017 compared to $235 million in the third quarter 2016. The increase in operating income for the quarter was primarily driven by higher net program efficiencies and higher volume.
During the quarter, MS booked $492 million for the Redesigned Kill Vehicle (RKV) program; $348 million for Tube-launched, Optically-tracked, Wireless-guided (TOW®) missiles; $206 million for Paveway; $145 million for Tomahawk; $136 million for Excalibur; $102 million for Standard Missile-3 (SM-3®); $91 million for Javelin; and $79 million for Horizontal Technology Integration (HTI) forward-looking infrared kits. MS also booked $427 million on a number of classified contracts.
| Space and Airborne Systems |
||||||||||||||||
| 3rd Quarter |
Nine Months |
|||||||||||||||
| ($ in millions) |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
||||||||||
| Net Sales |
$ |
1,597 |
$ |
1,590 |
— |
$ |
4,760 |
$ |
4,582 |
4% |
||||||
| Operating Income |
$ |
212 |
$ |
215 |
-1% |
$ |
620 |
$ |
587 |
6% |
||||||
| Operating Margin |
13.3% |
13.5% |
13.0% |
12.8% |
||||||||||||
Space and Airborne Systems (SAS) had third quarter 2017 net sales of $1,597 million compared to $1,590 million in the third quarter 2016.
SAS recorded $212 million of operating income in the third quarter 2017 compared to $215 million in the third quarter 2016.
During the quarter, SAS booked approximately $200 million on classified and unclassified space programs and $84 million for radar components for the U.S. Navy and the Royal Australian Air Force. SAS also booked $435 million on a number of other classified contracts.
| Forcepoint |
|||||||||||||
| 3rd Quarter |
Nine Months |
||||||||||||
| ($ in millions) |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
|||||||
| Net Sales |
$ |
170 |
$ |
167 |
2% |
$ |
452 |
$ |
443 |
2% |
|||
| Operating Income |
$ |
23 |
$ |
41 |
-44% |
$ |
41 |
$ |
69 |
-41% |
|||
| Operating Margin |
13.5% |
24.6% |
9.1% |
15.6% |
|||||||||
Forcepoint had third quarter 2017 net sales of $170 million compared to $167 million in the third quarter 2016.
Forcepoint recorded $23 million of operating income in the third quarter 2017 compared to $41 million in the third quarter 2016. The decrease in operating income for the quarter was primarily driven by investments in sales and marketing.
About Raytheon
Raytheon Company, with 2016 sales of $24 billion and 63,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 95 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts. Follow us on Twitter.
Conference Call on the Third Quarter 2017 Financial Results
Raytheon's financial results conference call will be held on Thursday, October 26, 2017 at 9 a.m. ET. Participants will include Thomas A. Kennedy, Chairman and CEO; Anthony F. O'Brien, vice president and CFO; and other company executives.
The dial-in number for the conference call will be (877) 280-4957 in the U.S. or (857) 244-7314 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, a government shutdown, or otherwise, uncertain funding of programs and potential termination of contracts; difficulties in contract performance; the resolution of program terminations; the ability to procure new contracts; the risks of conducting business in foreign countries; the unpredictability of timing of international bookings; the ability to comply with extensive governmental regulation and obtain approvals, including export and import requirements such as the International Traffic in Arms Regulations and the Export Administration Regulations, anti-bribery and anti-corruption requirements including the Foreign Corrupt Practices Act, industrial cooperation agreement obligations, and procurement and other regulations; changes in government procurement practices; the impact of competition; the ability to develop products and technologies, and the impact of associated investments and costs; the ability to recruit and retain qualified personnel; the impact of potential security and cyber threats, and other disruptions; the risk that actual pension returns, discount rates or other actuarial assumptions, including the long-term return on asset assumption, are significantly different than the company's current assumptions; the risk of cost overruns, particularly for the company's fixed-price contracts; dependence on component availability, subcontractor and partner performance and key suppliers; risks of a negative government audit; risks associated with acquisitions, investments, dispositions, joint ventures and other business arrangements; the ability to grow in the government and commercial cybersecurity markets; risks of an impairment of goodwill or other intangible assets; the impact of financial markets and global economic conditions; the use of accounting estimates in the company's financial statements; the outcome of contingencies and litigation matters, including government investigations; the risk of environmental liabilities; 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.
| Attachment A |
||||||||||||||||
| Raytheon Company |
||||||||||||||||
| Preliminary Statement of Operations Information |
||||||||||||||||
| Third Quarter 2017 |
||||||||||||||||
| (In millions, except per share amounts) |
||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
|||||||||||||
| Net sales |
$ |
6,284 |
$ |
6,014 |
$ |
18,565 |
$ |
17,845 |
||||||||
| Operating expenses |
||||||||||||||||
| Cost of sales |
4,690 |
4,474 |
13,905 |
13,277 |
||||||||||||
| General and administrative expenses |
736 |
710 |
2,212 |
2,153 |
||||||||||||
| Total operating expenses |
5,426 |
5,184 |
16,117 |
15,430 |
||||||||||||
| Operating income |
858 |
830 |
2,448 |
2,415 |
||||||||||||
| Non-operating (income) expense, net |
||||||||||||||||
| Interest expense |
48 |
58 |
157 |
174 |
||||||||||||
| Interest income |
(4) |
(4) |
(14) |
(12) |
||||||||||||
| Other (income) expense, net |
(2) |
(4) |
26 |
(7) |
||||||||||||
| Total non-operating (income) expense, net |
42 |
50 |
169 |
155 |
||||||||||||
| Income from continuing operations before taxes |
816 |
780 |
2,279 |
2,260 |
||||||||||||
| Federal and foreign income taxes |
248 |
239 |
667 |
601 |
||||||||||||
| Income from continuing operations |
568 |
541 |
1,612 |
1,659 |
||||||||||||
| Income (loss) from discontinued operations, net of tax |
(1) |
1 |
2 |
1 |
||||||||||||
| Net income |
567 |
542 |
1,614 |
1,660 |
||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests |
(5) |
(2) |
(17) |
(29) |
||||||||||||
| Net income attributable to Raytheon Company |
$ |
572 |
$ |
544 |
$ |
1,631 |
$ |
1,689 |
||||||||
| Basic earnings per share attributable to Raytheon Company |
||||||||||||||||
| Income from continuing operations |
$ |
1.97 |
$ |
1.84 |
$ |
5.59 |
$ |
5.68 |
||||||||
| Income (loss) from discontinued operations, net of tax |
— |
— |
0.01 |
— |
||||||||||||
| Net income |
1.97 |
1.84 |
5.60 |
5.68 |
||||||||||||
| Diluted earnings per share attributable to Raytheon Company |
||||||||||||||||
| Income from continuing operations |
$ |
1.97 |
$ |
1.84 |
$ |
5.59 |
$ |
5.67 |
||||||||
| Income (loss) from discontinued operations, net of tax |
— |
— |
0.01 |
— |
||||||||||||
| Net income |
1.97 |
1.84 |
5.60 |
5.68 |
||||||||||||
| Amounts attributable to Raytheon Company common |
||||||||||||||||
| Income from continuing operations |
$ |
573 |
$ |
543 |
$ |
1,629 |
$ |
1,688 |
||||||||
| Income (loss) from discontinued operations, net of tax |
(1) |
1 |
2 |
1 |
||||||||||||
| Net income |
$ |
572 |
$ |
544 |
$ |
1,631 |
$ |
1,689 |
||||||||
| Average shares outstanding |
||||||||||||||||
| Basic |
290.7 |
295.2 |
291.6 |
297.2 |
||||||||||||
| Diluted |
291.0 |
295.5 |
291.9 |
297.5 |
||||||||||||
| Attachment B |
||||||||||||||||||||||
| Raytheon Company |
||||||||||||||||||||||
| Preliminary Segment Information |
||||||||||||||||||||||
| Third Quarter 2017 |
||||||||||||||||||||||
| (In millions, except percentages) |
||||||||||||||||||||||
| Operating Income |
||||||||||||||||||||||
| Net Sales |
Operating Income |
As a Percent of Net Sales |
||||||||||||||||||||
| Three Months Ended |
Three Months Ended |
Three Months Ended |
||||||||||||||||||||
| 1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
|||||||||||||||||
| Integrated Defense Systems |
$ |
1,391 |
$ |
1,334 |
$ |
231 |
$ |
211 |
16.6 |
% |
15.8 |
% |
||||||||||
| Intelligence, Information and Services |
1,543 |
1,534 |
112 |
123 |
7.3 |
% |
8.0 |
% |
||||||||||||||
| Missile Systems |
1,945 |
1,770 |
280 |
235 |
14.4 |
% |
13.3 |
% |
||||||||||||||
| Space and Airborne Systems |
1,597 |
1,590 |
212 |
215 |
13.3 |
% |
13.5 |
% |
||||||||||||||
| Forcepoint |
170 |
167 |
23 |
41 |
13.5 |
% |
24.6 |
% |
||||||||||||||
| Eliminations |
(355) |
(364) |
(39) |
(42) |
||||||||||||||||||
| Total business segment |
6,291 |
6,031 |
819 |
783 |
13.0 |
% |
13.0 |
% |
||||||||||||||
| Acquisition Accounting Adjustments |
(7) |
(17) |
(39) |
(46) |
||||||||||||||||||
| FAS/CAS Adjustment |
— |
— |
78 |
104 |
||||||||||||||||||
| Corporate |
— |
— |
— |
(11) |
||||||||||||||||||
| Total |
$ |
6,284 |
$ |
6,014 |
$ |
858 |
$ |
830 |
13.7 |
% |
13.8 |
% |
||||||||||
| Operating Income |
||||||||||||||||||||||
| Net Sales |
Operating Income |
As a Percent of Net Sales |
||||||||||||||||||||
| Nine Months Ended |
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||||
| 1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
|||||||||||||||||
| Integrated Defense Systems |
$ |
4,251 |
$ |
4,069 |
$ |
688 |
$ |
733 |
16.2 |
% |
18.0 |
% |
||||||||||
| Intelligence, Information and Services |
4,605 |
4,653 |
338 |
347 |
7.3 |
% |
7.5 |
% |
||||||||||||||
| Missile Systems |
5,602 |
5,199 |
732 |
660 |
13.1 |
% |
12.7 |
% |
||||||||||||||
| Space and Airborne Systems |
4,760 |
4,582 |
620 |
587 |
13.0 |
% |
12.8 |
% |
||||||||||||||
| Forcepoint |
452 |
443 |
41 |
69 |
9.1 |
% |
15.6 |
% |
||||||||||||||
| Eliminations |
(1,077) |
(1,037) |
(113) |
(109) |
||||||||||||||||||
| Total business segment |
18,593 |
17,909 |
2,306 |
2,287 |
12.4 |
% |
12.8 |
% |
||||||||||||||
| Acquisition Accounting Adjustments |
(28) |
(64) |
(123) |
(155) |
||||||||||||||||||
| FAS/CAS Adjustment |
— |
— |
295 |
318 |
||||||||||||||||||
| Corporate |
— |
— |
(30) |
(35) |
||||||||||||||||||
| Total |
$ |
18,565 |
$ |
17,845 |
$ |
2,448 |
$ |
2,415 |
13.2 |
% |
13.5 |
% |
||||||||||
| Attachment C |
|||||||||||||||||
| Raytheon Company |
|||||||||||||||||
| Other Preliminary Information |
|||||||||||||||||
| Third Quarter 2017 |
|||||||||||||||||
| (In millions) |
|||||||||||||||||
| Backlog |
1-Oct-17 |
31-Dec-16 |
|||||||||||||||
| Integrated Defense Systems |
$ |
9,089 |
$ |
10,159 |
|||||||||||||
| Intelligence, Information and Services |
6,368 |
5,662 |
|||||||||||||||
| Missile Systems |
11,943 |
11,568 |
|||||||||||||||
| Space and Airborne Systems |
8,826 |
8,834 |
|||||||||||||||
| Forcepoint |
450 |
486 |
|||||||||||||||
| Total backlog |
$ |
36,676 |
$ |
36,709 |
|||||||||||||
| Three Months Ended |
Nine Months Ended |
||||||||||||||||
| Bookings |
1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
|||||||||||||
| Total bookings |
$ |
6,957 |
$ |
6,923 |
$ |
19,177 |
$ |
20,227 |
|||||||||
| Three Months Ended |
Nine Months Ended |
||||||||||||||||
| General and Administrative Expenses |
1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
|||||||||||||
| Administrative and selling expenses |
$ |
549 |
$ |
531 |
$ |
1,654 |
$ |
1,594 |
|||||||||
| Research and development expenses |
187 |
179 |
558 |
559 |
|||||||||||||
| Total general and administrative expenses |
$ |
736 |
$ |
710 |
$ |
2,212 |
$ |
2,153 |
|||||||||
| Cash, Cash Equivalents and Restricted Cash |
1-Oct-17 |
31-Dec-16 |
|||||||||||||||
| Cash and cash equivalents |
$ |
2,311 |
$ |
3,303 |
|||||||||||||
| Restricted cash |
12 |
— |
|||||||||||||||
| Total cash, cash equivalents and restricted cash shown in Attachment E |
$ |
2,323 |
$ |
3,303 |
|||||||||||||
| Attachment D |
|||||||
| Raytheon Company |
|||||||
| Preliminary Balance Sheet Information |
|||||||
| Third Quarter 2017 |
|||||||
| (In millions) |
|||||||
| 1-Oct-17 |
31-Dec-16 |
||||||
| Assets |
|||||||
| Current assets |
|||||||
| Cash and cash equivalents |
$ |
2,311 |
$ |
3,303 |
|||
| Short-term investments |
— |
100 |
|||||
| Receivables, net |
1,393 |
1,163 |
|||||
| Contract assets |
5,892 |
5,041 |
|||||
| Inventories |
693 |
608 |
|||||
| Prepaid expenses and other current assets |
489 |
670 |
|||||
| Total current assets |
10,778 |
10,885 |
|||||
| Property, plant and equipment, net |
2,248 |
2,166 |
|||||
| Goodwill |
14,878 |
14,788 |
|||||
| Other assets, net |
2,374 |
2,399 |
|||||
| Total assets |
$ |
30,278 |
$ |
30,238 |
|||
| Liabilities, Redeemable Noncontrolling Interest and Equity |
|||||||
| Current liabilities |
|||||||
| Commercial paper |
$ |
300 |
$ |
— |
|||
| Contract liabilities |
2,519 |
2,646 |
|||||
| Accounts payable |
1,347 |
1,520 |
|||||
| Accrued employee compensation |
1,165 |
1,234 |
|||||
| Other current liabilities |
1,161 |
1,139 |
|||||
| Total current liabilities |
6,492 |
6,539 |
|||||
| Accrued retiree benefits and other long-term liabilities |
7,791 |
7,758 |
|||||
| Long-term debt |
4,749 |
5,335 |
|||||
| Redeemable noncontrolling interest |
389 |
449 |
|||||
| Equity |
|||||||
| Raytheon Company stockholders' equity |
|||||||
| Common stock |
3 |
3 |
|||||
| Additional paid-in capital |
— |
— |
|||||
| Accumulated other comprehensive loss |
(7,075) |
(7,411) |
|||||
| Retained earnings |
17,929 |
17,565 |
|||||
| Total Raytheon Company stockholders' equity |
10,857 |
10,157 |
|||||
| Noncontrolling interests in subsidiaries |
— |
— |
|||||
| Total equity |
10,857 |
10,157 |
|||||
| Total liabilities, redeemable noncontrolling interest and equity |
$ |
30,278 |
$ |
30,238 |
|||
| Attachment E |
|||||||
| Raytheon Company |
|||||||
| Preliminary Cash Flow Information |
|||||||
| Third Quarter 2017 |
|||||||
| (In millions) |
|||||||
| Nine Months Ended |
|||||||
| 1-Oct-17 |
2-Oct-16 |
||||||
| Cash flows from operating activities |
|||||||
| Net income |
$ |
1,614 |
$ |
1,660 |
|||
| (Income) loss from discontinued operations, net of tax |
(2) |
(1) |
|||||
| Income from continuing operations |
1,612 |
1,659 |
|||||
| Adjustments to reconcile to net cash provided by (used in) operating activities from continuing |
|||||||
| Depreciation and amortization |
401 |
377 |
|||||
| Stock-based compensation |
127 |
120 |
|||||
| Gain on sale of equity method investment |
— |
(158) |
|||||
| Loss on repayment of long-term debt |
39 |
— |
|||||
| Deferred income taxes |
(137) |
(84) |
|||||
| Changes in assets and liabilities |
|||||||
| Receivables, net |
(226) |
(64) |
|||||
| Contract assets and contract liabilities |
(962) |
(925) |
|||||
| Inventories |
(83) |
(37) |
|||||
| Prepaid expenses and other current assets |
148 |
252 |
|||||
| Income taxes receivable/payable |
66 |
(78) |
|||||
| Accounts payable |
(191) |
52 |
|||||
| Accrued employee compensation |
(68) |
(25) |
|||||
| Other current liabilities |
35 |
(59) |
|||||
| Accrued retiree benefits |
452 |
693 |
|||||
| Other, net |
(90) |
(12) |
|||||
| Net cash provided by (used in) operating activities from continuing operations |
1,123 |
1,711 |
|||||
| Net cash provided by (used in) operating activities from discontinued operations |
(1) |
— |
|||||
| Net cash provided by (used in) operating activities |
1,122 |
1,711 |
|||||
| Cash flows from investing activities |
|||||||
| Additions to property, plant and equipment |
(323) |
(344) |
|||||
| Proceeds from sales of property, plant and equipment |
31 |
25 |
|||||
| Additions to capitalized internal use software |
(49) |
(47) |
|||||
| Purchases of short-term investments |
(399) |
(472) |
|||||
| Maturities of short-term investments |
517 |
822 |
|||||
| Payments for purchases of acquired companies, net of cash received |
(93) |
(57) |
|||||
| Other |
(2) |
(9) |
|||||
| Net cash provided by (used in) investing activities |
(318) |
(82) |
|||||
| Cash flows from financing activities |
|||||||
| Dividends paid |
(679) |
(635) |
|||||
| Net borrowings (payments) on commercial paper |
300 |
— |
|||||
| Repayments of long-term debt |
(591) |
— |
|||||
| Loss on repayment of long-term debt |
(38) |
— |
|||||
| Repurchases of common stock under share repurchase programs |
(700) |
(801) |
|||||
| Repurchases of common stock to satisfy tax withholding obligations |
(84) |
(95) |
|||||
| Acquisition of noncontrolling interest in RCCS LLC |
— |
(90) |
|||||
| Contribution from noncontrolling interests in Forcepoint |
8 |
11 |
|||||
| Other |
— |
(5) |
|||||
| Net cash provided by (used in) financing activities |
(1,784) |
(1,615) |
|||||
| Net increase (decrease) in cash, cash equivalents and restricted cash |
(980) |
14 |
|||||
| Cash, cash equivalents and restricted cash at beginning of the year |
3,303 |
2,328 |
|||||
| Cash, cash equivalents and restricted cash at end of period |
$ |
2,323 |
$ |
2,342 |
|||
| Attachment F |
|||||||||||||||||||
| Raytheon Company |
|||||||||||||||||||
| Supplemental EPS Information |
|||||||||||||||||||
| Third Quarter 2017 |
|||||||||||||||||||
| (In millions, except per share amounts) |
|||||||||||||||||||
| Three Months Ended |
Nine Months Ended |
||||||||||||||||||
| 1-Oct-17 |
2-Oct-16 |
1-Oct-17 |
2-Oct-16 |
||||||||||||||||
| Per share impact of early debt retirement (A) |
$ |
— |
$ |
— |
$ |
0.09 |
$ |
— |
|||||||||||
| Per share impact of TRS transaction (B) |
— |
— |
— |
0.53 |
|||||||||||||||
| (A) Early debt retirement |
$ |
— |
$ |
— |
$ |
39 |
$ |
— |
|||||||||||
| Tax effect (at 35% statutory rate) |
— |
— |
(14) |
— |
|||||||||||||||
| After-tax impact |
— |
— |
25 |
— |
|||||||||||||||
| Diluted shares |
— |
— |
291.9 |
— |
|||||||||||||||
| Per share impact |
$ |
— |
$ |
— |
$ |
0.09 |
$ |
— |
|||||||||||
| (B) TRS transaction |
$ |
— |
$ |
— |
$ |
— |
$ |
158 |
|||||||||||
| Diluted shares |
— |
— |
— |
297.5 |
|||||||||||||||
| Per share impact |
$ |
— |
$ |
— |
$ |
— |
$ |
0.53 |
|||||||||||
Raytheon Company
Global Headquarters
Watham, Mass.
Investor Relations Contact
Todd Ernst
781.522.5141
Media Contact
Corinne Kovalsky
781.522.5899
SOURCE Raytheon Company
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