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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
 
ý
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2019.
o
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from______ to ______
Commission File Number 001-00812
RAYTHEON SAVINGS AND INVESTMENT PLAN
(Full title of the plan)
RAYTHEON TECHNOLOGIES CORPORATION
(Name of issuer of the securities held pursuant to the plan)
870 WINTER STREET, WALTHAM, MASSACHUSETTS 02451
(Address of issuer's principal executive offices)


Table of Contents





Raytheon Savings and Investment Plan
Financial Statements and Supplemental Schedule
To Accompany 2019 Form 5500
Annual Report of Employee Benefit Plan
Under Employee Retirement Income Security Act of 1974
December 31, 2019 and 2018



Table of Contents
Raytheon Savings and Investment Plan
Table of Contents to Financial Statements and Supplemental Schedule
December 31, 2019 and 2018



 
Page(s)
 
 
Financial Statements
 
 
 
 
 
 
 
 
 
Supplemental Schedule*
 
 
 
 
 
 
 
 
 
* Other supplemental schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.




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Table of Contents




Report of Independent Registered Public Accounting Firm

To the Administrator and Plan Participants of Raytheon Savings and Investment Plan

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of Raytheon Savings and Investment Plan (the "Plan") as of December 31, 2019 and December 31, 2018 and the related statement of changes in net assets available for benefits for the year ended December 31, 2019, including the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2019 and 2018, and the changes in net assets available for benefits for the year ended December 31, 2019 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental Information

The supplemental schedule of assets (held at end of year) as of December 31, 2019 has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental schedule is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.


/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts  
June 12, 2020

We have served as the Plan's auditor since at least 2002. We have not been able to determine the specific year we began serving as auditor of the Plan.



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Raytheon Savings and Investment Plan
Statements of Net Assets Available for Benefits
December 31, 2019 and 2018

 
 
2019
 
2018
Assets
 
 
 
 
Total investments at fair value (Notes 2 and 3)
 
$
18,790,792,949

 
$
15,140,986,416

 
 
 
 
 
Fully benefit-responsive investment contracts at contract value (Note 4)
 
1,840,186,647

 
1,856,576,488

 
 
 
 
 
Receivables
 
 
 
 
Notes receivable from participants
 
211,686,325

 
212,750,362

Receivables for securities sold
 
12,564,051

 
8,022,483

Accrued investment income and other receivables
 
14,798,615

 
42,625,276

Total receivables
 
239,048,991

 
263,398,121

 
 
 
 
 
Total assets
 
20,870,028,587

 
17,260,961,025

Liabilities
 
 
 
 
Payable for securities purchased
 
16,216,796

 
14,418,775

Accrued investment expenses and other payables
 
3,493,874

 
2,862,945

Total liabilities
 
19,710,670

 
17,281,720

 
 
 
 
 
Net assets available for benefits
 
$
20,850,317,917

 
$
17,243,679,305


The accompanying notes are an integral part of these financial statements.


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Raytheon Savings and Investment Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2019

 
 
2019
Additions to net assets attributable to:
 
 
 
 
 
Net appreciation of investments (Notes 2 and 3)
 
$
3,647,215,884

Interest and dividends
 
308,071,467

Interest income on notes receivable from participants (Note 2)
 
9,351,986

Other revenue (Note 5)
 
902,254

 
 
 
Contributions
 
 
Employee contributions
 
823,253,696

Employer contributions
 
357,379,114

 
 
1,180,632,810

Total additions
 
5,146,174,401

 
 
 
Deductions from net assets attributable to:
 
 
 
 
 
Distributions to participants
 
$
1,530,341,692

Administrative expenses
 
9,194,097

Total deductions
 
1,539,535,789

 
 
 
Increase in net assets available for benefits
 
3,606,638,612

Net assets, beginning of year
 
17,243,679,305

Net assets, end of year
 
$
20,850,317,917


The accompanying notes are an integral part of these financial statements.

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Table of Contents
Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018


1. Description of Plan

The following description of the Raytheon Savings and Investment Plan (the "Plan") provides only general information. Participants should refer to the Plan documents for a complete description of the Plan's provisions.

General
The Plan is a defined contribution plan covering the majority of employees of Raytheon Company (the "Company" or the "Plan Sponsor"). Most employees are immediately eligible to enroll in the Plan on the first day of service. The purpose of the Plan is to provide participants with a tax-effective means of meeting both short-term and long-term investment objectives. The portion of the Plan that is invested in employer stock is an employee stock ownership plan ("ESOP") that is intended to constitute a stock bonus plan as defined in the Internal Revenue Code of 1986 (the "Code") and that includes a cash or deferred arrangement. The remaining portion of the Plan is a profit-sharing plan that includes a cash or deferred arrangement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Plan's investments are held in the Raytheon Savings and Investment Plan Trust (the "Trust"). Amounts held in a participant's account are invested at the direction of the participant among the investment options made available under the Plan.

On April 3, 2020 (the "Merger Date"), the Company became a wholly-owned subsidiary of Raytheon Technologies Corporation ("RTC"). Prior to the Merger Date, the Plan's Coordinating Investment Fiduciary (who was appointed by the Company's Investment Committee) was responsible for determining the investment options available under the Plan, except that the Company's Investment Committee (which was appointed by the Company's Chief Executive Officer) was responsible for making determinations regarding the investment option that invested in common stock of the Company (the "Raytheon Stock Fund"). Before the Merger Date, the portion of the Plan that is an ESOP was invested in Raytheon Company common stock.

Upon the Merger Date, each share of common stock of Raytheon Company issued and outstanding immediately prior to the effective time was converted into the right to receive 2.3348 shares of RTC common stock (and, if applicable, cash in lieu of fractional shares), less any applicable withholding taxes, and the Raytheon Stock Fund was converted into the Raytheon Technologies Stock Fund, which invests in common stock of RTC. From and after the Merger Date, the Raytheon Technologies Defined Contribution Investment Committee (which is appointed by the Raytheon Technologies Pension Administration and Investment Committee) is responsible for determining the investment options available under the Plan (including determinations regarding the Raytheon Technologies Stock Fund). Effective on and after the Merger Date, the portion of the plan that is an ESOP is invested in RTC common stock.

Contributions and Deferrals
Eligible employees may contribute to the Plan up to 50% of their compensation, as defined in the Plan document. The Code limits eligible compensation the Plan may take into account to $280,000 for the 2019 plan year. Employee contributions, including rollovers, are invested based on participant investment elections. For 2019, the annual employee pretax elective deferral contributions for a participant cannot exceed $19,000, except for catch-up contributions. Participants also may make after tax contributions, but total employee (pretax and after tax) contributions and employer contributions may not exceed $56,000 for the 2019 plan year, except for catch-up contributions. A participant who is eligible to make elective pretax contributions and is at least age 50 by the end of 2019 may make pretax catch-up contributions up to $6,000. Participants may also make after tax Roth 401(k) contributions, which are aggregated with pretax contributions for purposes of the limits on contributions.

For most new employees, for the first five consecutive years of service, the Company matches 100% of the first 3% of eligible compensation that a participant contributes to the Plan each pay period. After the first five consecutive years of service, the Company matches 100% of the first 4% of eligible compensation. Matching Company contributions are made in cash and are invested based on the investment allocation elected by each participant.

Eligible employees hired or rehired on or after January 1, 2007 participate in the Retirement Income Savings Program ("RISP") (subject to the terms of any applicable collective bargaining agreements), in addition to having the right to participate in the other features of the Plan. Most employees hired after December 31, 2009 have a one-year waiting period for participation in RISP. Under RISP, the Company contributes a percentage of each RISP-eligible participant's compensation to the participant's RISP account in the Plan. The percentage contribution varies according to a schedule based on the participant's age at the most recent date of hire, years of service since the most recent date of hire and whether the participant's most recent date of hire was before or after December 31, 2009.

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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

Participants may invest contributions in increments of 1% in any combination of investment options available, subject to percentage limitations applicable to some funds. The investment options range from investments with an emphasis on preservation of capital to equity investments with an emphasis on capital gains. The underlying investments include investment contracts, registered investment companies, common collective trusts, Raytheon Company common stock, fixed income securities and other investments including a self-directed brokerage account.

Participant Accounts
Each participant account is credited with the participant's contributions, the Company's contributions and an allocation of Plan earnings (losses). The allocation of Plan earnings (losses) is based on the participant's account balance and the elected investment allocation. Administrative expenses payable by the Plan are either directly charged to participant accounts or are paid from the forfeiture account, by the Company, or from credits the Plan receives under the agreement with its record keeper, Fidelity Workplace Services LLC ("FWS"), which is an affiliate of the Plan's Trustee, Fidelity Management Trust Company ("FMTC" or the "Trustee").

Participants are not permitted to make a direct exchange from the Raytheon Fixed Income Fund (the "Fixed Income Fund"), a stable value fund specifically managed for the Plan, into a competing fund (such as a money market fund). Investors who wish to move money from the Fixed Income Fund to a competing fund must first make an exchange from the Fixed Income Fund to a non-competing fund for 90 days. After 90 days, participants may exchange from a non-competing fund into a competing fund.

Vesting
With the exception of RISP participants and certain union groups, all employee and most employer contributions and earnings (losses) thereon are immediately 100% vested for each participant who performs an hour of service on or after January 1, 1999. Most RISP participants become 100% vested in the employer RISP contributions after three years of service. Forfeitures of the non-vested portions of terminated participants' accounts are available to reduce Company contributions and pay administrative expenses. At December 31, 2019 and 2018, unallocated Plan forfeitures were $1,405,338 and $97,913, respectively. For the year ended December 31, 2019, forfeitures of $1,480,481 were used to reduce Company contributions and pay administrative expenses.
 
Notes Receivable from Participants
A participant may borrow a portion of the balance in the participant's account, other than the RISP account, subject to certain restrictions. The maximum amount of a loan is the lesser of one-half of the participant's vested account balance or $50,000, minus the participant's highest outstanding loan balance over the previous 12 months. The minimum loan is $500. Loans are secured by the balance in the participant's account and bear interest equal to the prime rate published in The Wall Street Journal on the last business day of the calendar quarter preceding the calendar quarter in which the loan is made. Loans must be repaid over a period of up to five years, except that if the loan is used to acquire the participant's principal residence, the repayment period may extend up to 15 years. Loan payments and interest payments are credited to the participant's account based on the participant's current investment election. At both December 31, 2019 and 2018, the interest rates on the outstanding loans ranged from approximately 3.25% to 9.50%.

Payment of Benefits
A participant may make certain in-service withdrawals including all or a portion of participant after tax contributions, and any rollover contributions and related earnings at any time, and all or a portion of participant pretax contributions, employer contributions and related earnings upon attainment of age 59 ½. Participants who have not reached age 59 ½ but who have participated in the Plan for five years or more may take withdrawals of their company matching contributions. For reasons of financial hardship, a participant may withdraw all or a portion of participant pretax contributions and related earnings subject to a reduction in the maximum participant contribution rate for the next six months. On termination of employment, a participant with a vested balance less than $1,000 will receive a lump-sum distribution unless the participant elects to defer distribution. If the vested balance is in excess of $1,000, a partial or lump-sum distribution can be requested at any time. If no distribution is requested the terminated participant will receive annual statutory distributions starting in the year in which the participant reaches the age of 70 ½, or the year of termination if later. The participant may elect to defer this initial payment until April 1 of the following year. Any excess over the annual statutory distributions may be deferred until the participant's death.

Participants who have investments in the Raytheon Stock Fund, which is primarily comprised of Raytheon Company common stock may elect to reinvest dividends within the Plan or, if vested, receive dividends in cash. Any dividends received in cash by participants will be subject to taxes in the year of receipt. Of the $28,379,116 in dividends earned by the Raytheon Stock Fund in 2019, $799,097 was received in cash by participants who elected the cash payment option.


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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

2. Summary of Significant Accounting Policies

Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of net assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from the estimates included in the financial statements.

Investment Valuation and Income Recognition
Fully benefit-responsive investment contracts ("FBRICs") are reported at contract value, which is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in FBRICs through the Fixed Income Fund.

Plan investments, other than FBRICs, are stated at fair value. See Note 3 for discussion of fair value measurements.
 
Security transactions are recorded on the trade date. Payables and receivables for outstanding purchases and sales represent trades which have occurred but have not yet settled and are recorded on the statements of net assets available for benefits.

Dividend income is recorded on the ex-dividend date. Income from other investments is recorded as earned on an accrual basis.

The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, excluding FBRICs, which consists of the realized gains (losses) and the unrealized appreciation (depreciation) on those investments.

Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued interest. No allowance for credit losses have been recorded as of December 31, 2019 or 2018. Participant loans that are classified as delinquent during the period are treated as distributions in that period based upon the terms of the Plan document.

Payment of Benefits
Benefits are recorded when paid.

Administrative Expenses
Expenses of administering the Plan such as loan processing, legal fees and other administrative fees are charged directly or indirectly to participant accounts. Those expenses of administering the Plan that are not charged to participant accounts are paid by the forfeiture account, by the Company, or from credits the Plan receives under the agreement with its record keeper, FWS.

Subsequent Events
The Plan has evaluated subsequent events through the time of filing this Form 11-K with the Securities and Exchange Commission.

Accounting Standards
In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("Topic 820"), which eliminates the disclosure requirement of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and modifies certain disclosure requirements related to Level 3 recurring and nonrecurring fair value measurements. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Plan intends to adopt the standard on the effective date of January 1, 2020. The Plan does not expect the standard to have a material impact on its financial statements or disclosures.

Other new pronouncements issued but not effective until after December 31, 2019 are not expected to have a material impact on the Plan's financial statements or disclosures.


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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

3. Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:
Level 1:
Quoted prices in active markets for identical assets or liabilities.
Level 2:
Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities.
Level 3:
Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities.

A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Certain investments that are measured at fair value using the net asset value per share ("NAV"), or its equivalent, practical expedient have not been classified in the fair value hierarchy.

Following is a description of valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 or 2018.

Investments in registered investment companies are valued at the closing net asset value reported on the last business day of the year. Investments in securities traded on a national securities exchange are valued at the exchange traded close.

The self-directed brokerage account is reported as a single type investment. Investments in the self-directed brokerage account consist of registered investment companies and exchange traded funds. These investments are valued in line with the fair value measurement levels described above.

The Plan invests in common collective trusts ("CCT") which are valued at the net asset value of the CCT. The NAV, as provided by the CCT's trustee or custodian, is net of fees and is based on the fair value of the underlying investments held by the CCT less its liabilities. Participant transactions (purchases and sales) may occur daily. If the Plan were to initiate a full redemption of the CCT, the CCT's trustee reserves the right to temporarily delay withdrawal from the trust in order to ensure that securities liquidations will be carried out in an orderly business manner.

For the years ended December 31, 2019 and 2018, there were no significant transfers between Levels 1 and 2 and no transfers into or out of Level 3.

The following tables set forth the investment assets of the Plan that were measured at fair value on a recurring basis by level within the fair value hierarchy.
 
Fair Value of Investment Assets as of 12/31/2019
 
Total
Level 1
Level 2
Level 3
Not Subject To Leveling (1)
 
 
 
 
 
 
Registered investment companies
$
5,237,637,221

$
5,237,637,221

$

$

$

Self-directed brokerage account
713,347,371

713,347,371




Raytheon Company common stock
2,127,734,949

2,127,734,949




Common collective trusts
10,712,073,408




10,712,073,408

          Total investments at fair value
$
18,790,792,949

$
8,078,719,541

$

$

$
10,712,073,408


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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

 
Fair Value of Investment Assets as of 12/31/2018
 
Total
Level 1
Level 2
Level 3
Not Subject To Leveling (1)
 
 
 
 
 
 
Registered investment companies
$
6,391,041,646

$
6,391,041,646

$

$

$

Self-directed brokerage account
592,321,056

592,321,056




Raytheon Company common stock
1,596,071,707

1,596,071,707




Common collective trusts
6,561,552,007




6,561,552,007

          Total investments at fair value
$
15,140,986,416

$
8,579,434,409

$

$

$
6,561,552,007

(1)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of net assets available for benefits.
 
4. Fully Benefit-Responsive Investment Contracts ("FBRICs")

For the plan years ended December 31, 2019 and 2018, the Plan included the Fixed Income Fund, which held FBRICs issued by American General Life Insurance Company, JP Morgan Chase Bank, Prudential Insurance Company of America, State Street Bank and Trust Company and Transamerica Premier Life Insurance Company. For the plan year ended December 31, 2019, the Fixed Income Fund also held FBRICs issued by Pacific Life Insurance Company. These FBRIC issuers are collectively referred to as the "FBRIC Providers."

The FBRICs make up the Synthetic Guaranteed Investment Contracts ("Synthetic GICs") and are designed to decrease volatility by providing the Fixed Income Fund with the ability to execute certain participant transactions at contract value through the use of FBRICs. Under the FBRICs, there is no immediate recognition of gains and losses on the Fixed Income Fund's investments. Instead gains and losses are recognized over time by periodically adjusting the interest rates credited to the Fixed Income Fund. This allows the Fixed Income Fund to credit a fixed interest rate for stated periods of time on investments which are subject to FBRICs.

Income from the FBRICs is reported net of administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value with certain restrictions related to the transfer of funds into a competing investment option. The Plan considers such factors as the benefit responsiveness of the investment contracts, the ability of the parties to the contracts to perform in accordance with the terms of the contracts and the likelihood of default by an issuer of an investment security in evaluating the components of the FBRICs.

The FBRICs accrue interest using a formula embedded in the contract called the "crediting rate." The FBRICs use the crediting rate formula to convert market value changes in the FBRICs' assets into income distributions in order to minimize the difference between the market and contract value of the FBRICs' assets over time. Using the crediting rate formula, an estimated future market value is calculated by compounding the Fixed Income Fund's current market value at the Fixed Income Fund's current yield to maturity for a period equal to the Fixed Income Fund's duration. The crediting rate is the discount rate that equates estimated future market value with the Fixed Income Fund's current contract value. The crediting rate is most impacted by the change in the annual effective yield to maturity of the underlying securities, but is also affected by the differential between the contract value and the market value of the wrapped investments. The difference is amortized over the duration of the investments. The magnitude of the impact of the contract value and the market value differential to the crediting rate is affected by the length of time between the reset period and the duration of the investments. Crediting rates are reset monthly. The FBRICs provide a guarantee that the crediting rate will not fall below 0%. Events disqualifying an underlying investment from being wrapped include, but are not limited to, bankruptcy, default or restricted liquidity of the security issuer.

The crediting rate, and hence the Fixed Income Fund's return, may be affected by many factors, including purchases and redemptions by participants. The precise impact on the Fixed Income Fund depends on whether the market value of the wrapped assets is higher or lower than the contract value of those assets. If the Fixed Income Fund experiences significant redemptions when the market value is below the contract value, the Fixed Income Fund's yield may be reduced significantly, to a level that is not competitive with other investment options. This may result in additional redemptions, which would tend to lower the crediting rate further. If redemptions continued, the Fixed Income Fund's yield could be reduced to zero. If redemptions continued thereafter, the Fixed

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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

Income Fund might have insufficient assets to meet redemption requests, at which point the Fixed Income Fund would require payments from the FBRICs Providers to pay further participant redemptions.

The Fixed Income Fund and the FBRICs purchased by the Fixed Income Fund are designed to pay all participant-initiated transactions at contract value. Participant-initiated transactions are those transactions allowed by the Plan (typically this would include withdrawals for benefits, loans or transfers to non-competing investment options within the Plan). However, the FBRICs limit the ability of the Fixed Income Fund to transact at contract value upon the occurrence of certain events. At this time, management believes the occurrence of any of these events is not probable. These events include:

1.
The Plan's failure to qualify under Section 401(a) or Section 401(k) of the Code.
2.
The establishment of a defined contribution plan that competes with the Plan for employee contributions.
3.
Any substantive modification of the Plan or the administration of the Plan that is not consented to by the FBRIC Provider.
4.
Complete or partial termination of the Plan.
5.
Any known change in law, regulation or administrative ruling applicable to the Plan that could have a material adverse effect on the Fixed Income Fund's cash flow.
6.
Any communication given to participants by the Plan Sponsor or any other Plan fiduciary that is designed to induce or influence participants not to invest in the Fixed Income Fund or to transfer assets out of the Fixed Income Fund.
7.
Exclusion of a material group of previously eligible employees from eligibility in the Plan.
8.
Any material early retirement program, group termination, group layoff, facility closing or similar program.
9.
Any transfer of assets from the Fixed Income Fund directly to a competing option.
10.
Bankruptcy of the Plan Sponsor or other Plan Sponsor events which cause a significant withdrawal from the Plan.

A FBRIC Provider may terminate a FBRIC at any time. In the event that the market value of the Fixed Income Fund's wrapped assets is below their contract value at the time of such termination, the Trustee may elect to keep the FBRIC in place until such time as the market value of the Fixed Income Fund's wrapped assets is equal to their contract value. A FBRIC Provider may also terminate a FBRIC if FMTC's investment management authority over the Fixed Income Fund is limited or terminated, as well as if all of the terms of the FBRIC fail to be met. In the event that the market value of the Fixed Income Fund's wrapped assets is below their contract value at the time of such termination, the terminating FBRIC Provider would not be required to make a payment to the Fixed Income Fund.

FBRICs generally impose conditions on both the Plan and the FBRIC Provider. If an event of default occurs and is not cured, the non-defaulting party may terminate the FBRIC. The following may cause the Plan to be in default: a breach of material obligation under the contract; a material misrepresentation; or a material amendment to the Plan agreement. The FBRIC Provider may be in default if it: breaches a material obligation under the FBRIC; makes a material misrepresentation; has a decline in its long-term credit rating below a threshold set forth in the FBRIC; or is acquired or reorganized and the successor issuer does not satisfy the investment or credit guidelines applicable to issuers. The FBRIC Providers' ability to meet their contractual obligations under the respective FBRICs may be affected by future economic and regulatory developments in the insurance and banking industries. If, in the event of default of a FBRIC Provider, the Plan was unable to obtain a replacement FBRIC, withdrawing participants may experience losses if the value of the Fixed Income Fund's assets no longer covered by the FBRIC is below contract value. The Plan may seek to add additional issuers over time to diversify the Plan's exposure to such risk, but there is no assurance that the Plan will be able to do so. The combination of the default of a FBRIC Provider and an inability to obtain a replacement FBRIC could render the Plan unable to achieve its objective of maintaining a stable contract value. The terms of a FBRIC generally provide for settlement of payments only upon termination of the FBRIC or total liquidation of the wrapped investments. Generally, payments will be made pro-rata, based on the percentage of investments covered by each FBRIC Provider. FBRIC termination occurs whenever the contract value or market value of the wrapped investments reaches zero or upon certain events of default. If the FBRIC terminates due to the default of the FBRIC Provider (other than a default occurring because of a decline in its rating), the FBRIC Provider will generally be required to pay to the Plan the excess, if any, of contract value over market value on the date of termination. If a FBRIC terminates due to a decline in the ratings of the FBRIC Provider, the FBRIC Provider may be required to pay to the Plan the cost of acquiring a replacement contract (i.e. replacement cost) within the meaning of the FBRIC. If the FBRIC terminates when the market value equals zero, the FBRIC Provider will pay the excess of contract value over market value to the Plan to the extent necessary for the Plan to satisfy participant-initiated withdrawal requests. FBRIC termination also may occur by either party upon election and notice.

The FBRIC Provider may elect to terminate the FBRIC for no reason by giving certain notice to the Trustee. If, at any time, prior to dates agreed to in each FBRIC for the receipt of such notice, the Trustee objects to such election, the Trustee shall be deemed

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Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

to have made an immunization election and the immunization provisions of the FBRIC apply. The immunization provision results in the wrapped portion of the Fixed Income Fund being managed according to more conservative immunization investment guidelines provided for in the FBRIC and the contract can terminate in segments over a period of time. In the event a FBRIC Provider sought to terminate its FBRIC or immunize its portion of the Fixed Income Fund, the Fund can seek to replace that FBRIC Provider with another financial institution.

Plans investing in FBRICs and fixed income securities are subject to a number of risks, including credit risk of underlying investments, risk associated with prepayment of collateralized mortgage obligations, risk that third parties will not perform under the FBRICs, risk associated with interest rate fluctuations and risk of losses caused by liquidation of contracts or investments to meet withdrawal demands.

5. Certain Transactions Involving Related Parties and Parties-In-Interest

The Trustee and the record keeper of the Plan are parties-in-interest with respect to the Plan. Certain Plan transactions involve the Trustee, the record keeper or other affiliates. For example, certain Plan investments are shares of registered investment companies managed by affiliates of the Trustee. The Plan also pays fees to the Trustee and the record keeper. In addition, the Plan has an agreement with the record keeper whereby certain credits are paid to the Trust by the record keeper and are held in Trust accounts until they are used to pay administrative expenses of the Plan or are allocated to the accounts of participants. For the year ended December 31, 2019, $902,254 of such credits were earned by the Trust.

Subject to the terms of the Plan document, the Plan makes certain loans to participants who are employees of the Company, and who are therefore parties-in-interest with respect to the Plan.

The Plan Sponsor is a party-in-interest with respect to the Plan. In accordance with the provisions of the Plan, the Trustee acts as the Plan's agent for purchases and sales of shares of Raytheon Company common stock. Purchases amounted to $31,930,907 and sales amounted to $123,097,975 for the year ended December 31, 2019. Dividend income from shares of Raytheon Company common stock amounted to $27,580,019 for the year ended December 31, 2019.

All of these transactions either fall outside the scope of, or are exempt from, ERISA's prohibited transaction rules.

6. Plan Termination

Although it has not expressed any intention to do so, the Company reserves the right under the Plan at any time to discontinue its contributions and to terminate the Plan subject to the provisions of ERISA. Upon termination of the Plan, all participants become fully vested in their accounts. In the event of Plan termination, after payment of all expenses and adjustment of accounts to reflect such expenses, fund losses or profits, and reallocations, each participant shall be entitled to receive all amounts in their account.

7. Federal Income Tax Status

The Internal Revenue Service ("IRS") has determined and informed the Company by letter dated June 25, 2012, that the design of the Plan meets the requirements for qualification under Code section 401(a), on which the tax exemption of the Trust under Code section 501(a) is based. The Plan has been amended since receiving the determination letter. The Company believes that the current design and operation of the Plan are consistent with preservation of the qualification of the Plan and exemption of the Trust in the context of applicable IRS procedures.

The Plan follows the provisions of uncertain tax positions that provide criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. The Plan may, from time to time, hold investments that give rise to certain tax liabilities. Based upon management's assessment, the Plan has not recognized any tax liabilities at December 31, 2019 or 2018. The Plan is subject to examinations by taxing jurisdictions. The Company believes the Plan is no longer subject to federal tax examination for years prior to 2016.

8. Risks and Uncertainties

The Plan provides for various investment options. These investment options are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment options of the Plan, it is reasonably possible

11

Table of Contents
Raytheon Savings and Investment Plan
Notes to Financial Statements
December 31, 2019 and 2018

that changes in the values of investment securities will occur and such change could materially affect participants' account balances and the Plan's financial statements.

Counterparty credit risk is the risk that a counterparty to a financial instrument will fail on a commitment that it has entered into with the Plan. The Plan minimizes concentrations of counterparty credit risk by undertaking transactions with multiple counterparties. The Plan's investment managers and FBRIC Providers have credit policies in place and the exposure to counterparty credit risk, as well as the creditworthiness of these counterparties, is monitored on an ongoing basis.

In December 2019, a novel strain of coronavirus ("COVID-19") was reported to have surfaced in Wuhan, China. In January 2020, COVID-19 began to spread to other regions of the world, including, among others, North America, Europe and the Middle East, and, in March 2020, was categorized as a pandemic by the World Health Organization. COVID-19 has adversely affected, and may continue to adversely affect economic activity globally, nationally and locally. Following the COVID-19 outbreak, the values of certain investment securities have declined significantly. These economic and market conditions and other effects of the COVID-19 outbreak may continue to adversely affect the Plan. The extent of the adverse impact of the COVID-19 outbreak on the Plan's participants' account balances and the amounts reported in the 2019 statement of net assets available for benefits cannot be predicted at this time.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress. The CARES Act contains several provisions that temporarily impact retirement plan sponsors and their participants, such as the waiver of required minimum distributions, a new hardship withdrawal option, increased loan limits, and a loan repayment pause option. The Plan has adopted certain relief provisions included in the CARES Act and continues to evaluate other provisions.


12

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

Investment Contracts
 
 
 
 
 
 
 
Abbvie Inc
 
3.6% 5/14/25
 
$
1,635,000

 
$
1,724,359

 
Abbvie Inc
 
3.2% 11/21/29 144A
 
5,835,000

 
5,932,295

 
Abbvie Inc
 
2.6% 5/14/20 144A
 
2,035,000

 
2,046,650

 
Abbvie Inc
 
2.5% 5/14/20
 
1,000,000

 
1,001,500

 
Abbvie Inc
 
2.3% 11/21/22 144A
 
1,100,000

 
1,105,218

 
ABN AMRO Bank
 
2.65% 01/21 144A
 
2,590,000

 
2,605,540

 
Ace Ina Holding
 
2.3% 11/03/20
 
255,000

 
255,892

 
Actavis Funding
 
3.45% 3/22
 
2,295,000

 
2,346,775

 
Actavis Funding
 
3% 3/12/20
 
1,029,000

 
1,029,753

 
AEP Texas Inc.
 
3.95% 6/1/28
 
930,000

 
1,010,063

 
AerCap Ireland
 
5% 10/21
 
1,052,000

 
1,102,757

 
AerCap Ireland
 
4.25% 07/01/20
 
645,000

 
651,484

 
AerCap Ireland
 
4.875% 1/16/24
 
464,000

 
502,638

 
AerCap Ireland
 
4.125% 7/3/23
 
312,000

 
329,409

 
AerCap Ireland
 
4.45% 12/16/21
 
246,000

 
256,318

 
AIB Group
 
4.263%/VAR 4/10/25 144A
 
865,000

 
915,577

 
AIG Global Funding
 
1.9% 10/06/21 1
 
990,000

 
990,456

 
AIG Global Funding
 
2.3% 7/1/22 144A
 
1,236,000

 
1,242,266

 
Air Lease Corp
 
3% 09/15/23
 
413,000

 
422,740

 
Air Lease Corp
 
3.5% 01/15/2022
 
2,035,000

 
2,090,545

 
Air Lease Corp
 
4.25% 2/1/24
 
987,000

 
1,058,099

 
Air Lease Corp
 
2.625% 07/01/22
 
600,000

 
606,653

 
Air Liquid
 
1.75% 9/27/21 144A
 
1,080,000

 
1,076,139

 
Alabama Economic Settlement Authority
 
3.163% 9/15/25
 
350,000

 
358,134

 
Ally Auto Receivable Trust
 
2.92% 11/22
 
785,000

 
789,775

 
Ally Auto Receivable Trust
 
1.74% 09/21
 
281,609

 
281,431

 
Ally Auto Receivable Trust
 
1.75% 12/21
 
594,838

 
594,414

 
Ally Wholesale Enterprises LLC
 
2.7% 01/17/2023
 
800,000

 
805,676

 
Ally Wholesale Enterprises LLC
 
3.29% 05/15/2023
 
1,030,000

 
1,048,112

 
Altria Group Inc
 
2.85% 8/09/22
 
520,000

 
529,775

 
Altria Group Inc
 
3.29% 05/15/2023
 
341,000

 
350,771

 
Altria Group Inc
 
3.8% 2/14/24
 
411,000

 
432,267

 
Ameren Corp
 
2.5% 9/15/24
 
480,000

 
483,735

 
American Electric Power
 
2.15% 11/13/20
 
522,000

 
522,994

 
American Express Co
 
3.375% 05/21
 
3,545,000

 
3,612,047

 
American Express Co
 
3.7% 08/03/23
 
1,020,000

 
1,071,692

 
American Express Co
 
2.75% 5/20/22
 
2,075,000

 
2,112,107

 
American Express Credit Account Master
 
2.99% 12/23
 
815,000

 
827,113

 
American Express Credit Account Master
 
3.06% 2/15/24
 
826,000

 
841,005

 
American Express Credit Account Master
 
2.67% 2/7/20
 
1,123,000

 
1,142,784


13

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
American Express Credit Account Master
 
2.99% 12/23
 
359,000

 
366,798

 
American Honda
 
0% 02/24
 
500,000

 
499,256

 
American International Group
 
4.125% 2/24
 
600,000

 
643,868

 
American International Group
 
3.3% 3/01/21
 
2,000,000

 
2,028,759

 
American Tower
 
3.3% 2/15/21
 
1,000,000

 
1,013,430

 
American Tower
 
2.25% 01/15/22
 
1,000,000

 
1,002,851

 
Amgen Inc
 
3.875% 11/15/21
 
2,085,000

 
2,150,278

 
Amphenol Corp
 
3.2% 4/1/24
 
145,000

 
150,337

 
Analog Devices, Inc.
 
2.95% 01/12/21
 
1,055,000

 
1,063,649

 
Anhueser-Busch
 
4.15% 1/23/25
 
793,000

 
862,737

 
Anhueser-Busch
 
3.3% 2/01/23
 
787,000

 
814,773

 
Anthem Inc
 
2.95% 12/01/22
 
555,000

 
567,467

 
Aon Corp
 
2.2% 11/15/22
 
244,000

 
245,012

 
APT Pipelines
 
3.875% 10/22 144A
 
1,315,000

 
1,365,807

 
Arch Capital Finance
 
4.011% 12/15/26
 
375,000

 
411,478

 
AT&T Inc
 
3% 6/30/22
 
580,000

 
592,603

 
AT&T Inc
 
3.8% 3/15/22
 
590,000

 
612,163

 
AT&T Inc
 
4.35% 3/1/29
 
5,370,000

 
5,966,254

 
AT&T Inc
 
2.8% 2/17/21
 
4,810,000

 
4,852,511

 
AT&T Inc
 
2.45% 6/30/20
 
397,000

 
398,346

 
AT&T Inc
 
3.6% 2/17/23
 
500,000

 
521,594

 
Ausgrid Finance
 
3.85% 5/1/23 144A
 
859,000

 
894,112

 
Australian and New Zealand Banking Group Limited
 
2.7% 11/16/20
 
1,690,000

 
1,702,180

 
Autozone, Inc.
 
3.125% 7/15/23
 
577,000

 
593,527

 
Avalonbay Communities
 
3.625% 10/1/20
 
209,000

 
210,670

 
Avolon Holdings
 
3.95% 7/1/24 144A
 
1,105,000

 
1,151,521

 
AXA Equitable Holdings, Inc
 
3.9% 4/20/23
 
77,000

 
80,644

 
Axis Specialty
 
5.875% 6/01/20
 
2,150,000

 
2,183,846

 
Baker Hughes
 
2.773% 12/15/22
 
1,375,000

 
1,401,758

 
Banco Santander, S.A.
 
3.848% 4/12/23
 
800,000

 
834,038

 
Banco Santander, S.A.
 
3ML+112 04/23
 
400,000

 
402,568

 
Banco Santander, S.A.
 
3.5% 4/11/22
 
1,600,000

 
1,643,000

 
Bank 2018-BN11 A2
 
3.784% 03/61
 
4,200,000

 
4,561,186

 
Bank of America Corp
 
3.289% 07/60
 
1,000,000

 
1,040,861

 
Bank of America Corp
 
3.3% 1/11/23
 
2,285,000

 
2,361,817

 
Bank of America Corp
 
4% 01/22/25
 
1,225,000

 
1,306,022

 
Bank of America Corp
 
3.95% 4/21/25
 
1,120,000

 
1,194,281

 
Bank of America Corp
 
4.45% 3/03/26
 
1,815,000

 
1,991,818

 
Bank of America Corp
 
VAR/3.824 1/20/28
 
2,740,000

 
2,946,835

 
Bank of America Corp
 
3.593%/VAR 07/28
 
1,560,000

 
1,651,844


14

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
Bank of America Corp
 
3.004%/VAR 12/20/23
 
6,302,000

 
6,453,869

 
Bank of America Corp
 
3ML+63 05/22
 
1,335,000

 
1,361,524

 
Bank of America Corp
 
3.456% VAR 3/15/25
 
1,090,000

 
1,137,833

 
Bank of America Corp
 
2.881%/VAR 4/24/23
 
1,050,000

 
1,068,164

 
Bank of America Corp
 
3.55%/VAR 3/24
 
1,500,000

 
1,556,742

 
Bank of America Corp
 
2.625% 4/19/21
 
1,500,000

 
1,514,023

 
Bank of America Corp
 
3.864% 07/23/2024
 
2,000,000

 
2,104,531

 
Bank of America Corp
 
2.456%/VAR 10/22/25
 
1,100,000

 
1,106,322

 
Bank of America Credit Card Trust
 
2.7% 07/17/2023
 
1,000,000

 
1,009,853

 
Bank of Montreal
 
1ML+39 10/21
 
3,695,000

 
3,765,725

 
Bank of New York Mellon
 
1.95% 8/22
 
1,310,000

 
1,329,591

 
Bank of Nova Scotia
 
1.84% 1/23
 
1,000,000

 
1,050,090

 
Bank of the West Auto Trust
 
2.7% 7/23
 
647,340

 
647,389

 
Bank of the West Auto Trust
 
3% 9/23
 
430,000

 
434,556

 
Bank of the West Auto Trust
 
2.43% 4/15/24
 
489,000

 
491,797

 
Bank of Montreal
 
3.75% 3/10/24 144A
 
1,290,000

 
1,362,546

 
Banque Federative du Credit Mutuel
 
3.75% 7/20/23 144A
 
1,290,000

 
1,352,019

 
Banque Federative du Credit Mutuel
 
2.125% 11/21/22 144A
 
1,075,000

 
1,075,900

 
Barclays plc
 
3.52% 12/15/22
 
4,455,630

 
4,434,703

 
Barclays plc
 
4.337% 01/10/28
 
2,045,000

 
2,192,116

 
Barclays plc
 
4.972/VAR 5/16/29
 
745,000

 
839,032

 
Barclays plc
 
3.684% 1/10/23
 
1,045,000

 
1,071,220

 
Barclays plc
 
4.61%/VAR 2/15/23
 
1,570,000

 
1,639,252

 
Barclays plc
 
3.2% 08/10/21
 
2,000,000

 
2,027,136

 
Barclays plc
 
4.338/VAR 05/16/2024
 
650,000

 
684,913

 
Barclays plc
 
3ML+161/VAR 5/7/25
 
650,000

 
682,746

 
Barclays plc
 
2.65% 01/11/21
 
850,000

 
855,431

 
BAT International Finance
 
3.5% 6/22 144A
 
500,000

 
513,490

 
Bay Area Toll Authority
 
2.574% 4/1/31
 
1,495,000

 
1,486,314

 
Bayer US Finance
 
3% 10/08/21 144A
 
1,115,000

 
1,129,006

 
BB&T Corporation
 
3.05% 6/20/22
 
1,590,000

 
1,628,990

 
BB&T Corporation
 
2.5% 8/1/24
 
460,000

 
465,513

 
Benchmark 2018-B2 Mortgage Trust A2
 
3.6623% 02/51
 
856,000

 
887,757

 
Benchmark 2018-B2 Mortgage Trust A3
 
3.5439% 02/51
 
5,000,000

 
5,232,387

 
Benchmark 2018-B7 Mortgage Trust A2
 
4.377% 05/53
 
513,000

 
548,464

 
Benchmark 2018-B7 Mortgage Trust A2
 
4.149% 1/15/52
 
593,000

 
629,887

 
Benchmark 2018-B8 Mortgage Trust A2
 
2.667% 12/15/72
 
4,400,000

 
4,421,016

 
Berkley (WR) Corporation
 
5.375% 9/15/20
 
1,300,000

 
1,329,056

 
Berkshire Hathaway Energy
 
2.8% 1/15/23
 
886,000

 
906,247

 
BMW Floorplan Master Owner Trust
 
3.15% 5/15/23 144A
 
753,000

 
764,743

 
BMW US Capital
 
2.95% 4/14/22 144A
 
1,865,000

 
1,899,992


15

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
BMW US Capital
 
2.7% 04/06/22 144A
 
937,000

 
949,212

 
BMW Vehicle Lease Trust
 
3.26% 7/20/21
 
416,000

 
419,782

 
BMW Vehicle Lease Trust
 
2.07% 10/20
 
128,910

 
128,909

 
BMW Vehicle Lease Trust
 
2.84% 11/22/21
 
603,000

 
607,824

 
BNP Paribas
 
2.819%/VAR 11/19/25 144A
 
1,085,000

 
1,096,852

 
Boeing Co
 
2.95% 2/1/30
 
2,395,000

 
2,447,862

 
Boston Scientific Corp
 
3.45% 3/1/24
 
338,000

 
353,387

 
BP Capital Markets America
 
3.79% 2/24
 
1,520,000

 
1,616,464

 
BP Capital Markets America
 
3.245% 05/06/22
 
625,000

 
644,847

 
BP Capital Markets America
 
3.216% 11/28/23
 
1,125,000

 
1,171,313

 
BPCE SA
 
2.75% 1/11/23 144A
 
995,000

 
1,010,613

 
BPCE SA
 
4% 09/12/23 144A
 
1,480,000

 
1,559,501

 
Braemar Hotels & Resorts Trust Series
 
1ML+82 06/35 144A
 
1,440,000

 
1,432,980

 
Braskem Netherlands Finance
 
4.5% 01/28 144A
 
750,000

 
746,445

 
Bristol Myers Squibb
 
3.625% 5/15/24 144A
 
4,375,000

 
4,620,210

 
Bristol Myers Squibb
 
3.4% 7/26/29 144A
 
1,800,000

 
1,923,562

 
Bristol Myers Squibb
 
2.6% 5/16/22 144 A
 
865,000

 
879,002

 
Bristol Myers Squibb
 
2.9% 7/26/24 144A
 
1,000,000

 
1,031,726

 
British American Tobacco
 
2.764% 08/15/22
 
4,575,000

 
4,640,156

 
British American Tobacco
 
2.789% 9/6/24
 
1,090,000

 
1,097,963

 
Broadcom Cayman Finance
 
3.625% 1/15/24
 
2,200,000

 
2,278,429

 
Broadcom Inc
 
3.125% 4/15/21 144A
 
120,000

 
121,432

 
Broadcom Inc
 
3.125% 10/15/22 144A
 
90,000

 
91,643

 
Burlington North Santa Fe
 
4.1% 6/21
 
2,000,000

 
2,053,634

 
Canadian Natural Resources
 
2.40% 10/1/25
 
720,000

 
728,640

 
Campbell Soup Company
 
3.65% 3/15/23
 
1,115,000

 
1,160,941

 
Canadian Imperial Bank
 
2.606%/VAR 7/22/23
 
1,610,000

 
1,626,765

 
Canadian Imperial Bank
 
2.55% 6/22
 
500,000

 
507,231

 
Canadian Natural Resources
 
2.95% 1/15/23
 
3,020,000

 
3,079,064

 
Canadian Natural Resources
 
3.45% 11/15/21
 
525,000

 
537,975

 
Canadian Pacer Auto Receivable Trust 2017-1A A3
 
2.05% 03/21
 
123,635

 
123,625

 
Canadian Pacer Auto Receivable Trust 2018-1A A3
 
3.088% 11/21 144A
 
546,657

 
548,342

 
Canadian Pacer Auto Receivable Trust 2018-2A A3
 
3.27% 12/22
 
648,000

 
656,134

 
Capital One Bank
 
2.95% 7/23/21
 
965,000

 
978,651

 
Capital One Bank
 
2.25% 9/13/21
 
1,445,000

 
1,451,122

 
Capital One Bank
 
2.65% 08/08/22
 
520,000

 
527,573

 
Capital One Bank
 
2.15% 9/6/22
 
295,000

 
295,456

 
Capital One Financial
 
3.45% 4/21
 
3,660,000

 
3,725,789

 
Capital One Financial
 
3.9% 1/29/24
 
835,000

 
884,981


16

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
Capital One Financial
 
2.5% 05/12/20
 
500,000

 
500,658

 
Capital One Financial
 
3.2% 01/30/2023
 
1,000,000

 
1,027,573

 
Capital One Multi-Asset Execution Trust
 
1.99% 07/23
 
1,494,000

 
1,495,581

 
Capital One Multi-Asset Execution Trust
 
2.08% 03/23
 
240,000

 
240,164

 
Capital One Multi-Asset Execution Trust
 
2.84% 12/15/24
 
1,156,000

 
1,179,440

 
CarMax
 
3.13% 6/15/23
 
1,278,000

 
1,296,197

 
CarMax
 
1.93% 03/22
 
623,372

 
623,144

 
CarMax
 
1.97% 04/22
 
720,738

 
720,780

 
CarMax
 
2.98% 01/23
 
1,607,000

 
1,623,078

 
CarMax
 
2.68% 3/15/24
 
1,280,000

 
1,296,069

 
CarMax
 
1.4% 8/21
 
166,773

 
166,502

 
CarMax
 
2.11% 10/17/22
 
292,069

 
292,358

 
CarMax
 
3.36% 09/23
 
524,000

 
534,536

 
CarMax
 
3.05% 3/15/24
 
721,000

 
732,941

 
CBS Corporation
 
4.3% 2/15/21
 
770,000

 
785,487

 
CDP Financial Inc
 
3.15% 7/24 144A
 
620,000

 
652,034

 
Celanese US Holdings
 
3.5% 5/8/24
 
685,000

 
707,798

 
CenterPoint Energy
 
2.5% 9/1/24
 
360,000

 
360,195

 
CenterPoint Energy
 
2.50% 09/01/22
 
189,000

 
190,476

 
CFCRE 2016-C4 Mortgage Trust A3
 
3.014% 05/58
 
2,500,000

 
2,562,615

 
CGDBB Commercial Mortgage Trust
 
1ML+79 7/28
 
1,900,170

 
1,898,383

 
Charter Communications Operating
 
4.908% 7/23/25
 
885,000

 
974,170

 
Charter Communications Operating
 
4.464% 7/23/22
 
3,445,000

 
3,619,619

 
Chase Issuance Trust
 
1ML+100 1/22
 
4,300,000

 
4,300,560

 
Chevron Phillips Chemical
 
2.45% 5/01/20 144A
 
347,000

 
347,323

 
Chevron Phillips Chemical
 
3.3% 5/23 144A
 
480,000

 
494,043

 
Cigna Corp
 
5.125% 6/15/20
 
1,350,000

 
1,368,294

 
Cigna Corp
 
4.375% 10/15/28
 
3,545,000

 
3,922,436

 
Cigna Corp
 
4% 2/15/22 144A
 
1,670,000

 
1,723,571

 
Cigna Corp
 
3.4% 9/17/21
 
730,000

 
747,070

 
Cigna Corp
 
3.75% 7/15/23
 
373,000

 
390,932

 
Cigna Corp
 
4.75% 11/15/21 144A
 
320,000

 
335,352

 
Citibank Credit Card Issuance Trust
 
1.86% 8/8/22
 
3,781,000

 
3,780,817

 
Citibank Credit Card Issuance Trust
 
2.49% 1/23
 
1,020,000

 
1,027,024

 
Citibank N.A.
 
3.05% 05/01/20
 
4,430,000

 
4,443,321

 
Citibank N.A.
 
3.165%/VAR 2/19/22
 
1,600,000

 
1,620,561

 
Citibank N.A.
 
2.844%/VAR 5/20/22
 
3,930,000

 
3,977,298

 
Citibank N.A.
 
2.1% 06/12/20
 
750,000

 
750,367

 
Citibank N.A.
 
3.65% 1/23/24
 
1,000,000

 
1,058,048

 
Citigroup Commercial Mortgage Trust
 
4.149% 1/10/36
 
7,545,000

 
8,013,652

 
Citigroup Commercial Mortgage Trust
 
3.024% 9/45
 
405,412

 
413,241


17

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
Citigroup Commercial Mortgage Trust
 
3.093% 04/46
 
111,000

 
113,663

 
Citigroup Commercial Mortgage Trust
 
4.371% 9/46
 
294,000

 
313,996

 
Citigroup Commercial Mortgage Trust
 
4.131% 11/46
 
383,000

 
406,759

 
Citigroup Commercial Mortgage Trust
 
3.477% 5/10/47
 
277,517

 
284,939

 
Citigroup Commercial Mortgage Trust
 
3.356% 7/47
 
645,613

 
674,060

 
Citigroup Commercial Mortgage Trust
 
3.368% 02/49
 
457,000

 
473,196

 
Citigroup Commercial Mortgage Trust
 
3.212% 4/50
 
388,000

 
393,733

 
Citigroup Inc
 
4.4% 6/10/25
 
1,080,000

 
1,172,906

 
Citigroup Inc
 
4.45% 9/29/27
 
965,000

 
1,061,957

 
Citigroup Inc
 
3.7% 1/12/26
 
4,390,000

 
4,677,352

 
Citigroup Inc
 
2.75% 04/25/2022
 
1,400,000

 
1,421,376

 
Citigroup Inc
 
2.976%/VAR 11/5/30
 
2,230,000

 
2,261,264

 
Citigroup Inc
 
2.876/VAR 07/24/23
 
995,000

 
1,012,253

 
Citigroup Inc
 
3.142%/VAR 1/24/23
 
2,116,000

 
2,159,065

 
Citigroup Inc
 
2.35% 8/02/21
 
1,000,000

 
1,005,918

 
Citigroup Inc
 
2.7% 10/27/2022
 
300,000

 
304,828

 
Citigroup Inc
 
2.312%/VAR 11/4/22
 
500,000

 
501,451

 
Citizens Bank
 
3.25% 2/14/22
 
2,005,000

 
2,053,921

 
Citizens Bank
 
2.55% 5/13/21
 
2,925,000

 
2,946,891

 
Citizens Bank
 
2.2% 05/26/20
 
1,120,000

 
1,120,557

 
Citizens Bank
 
2.65% 5/26/22
 
450,000

 
455,397

 
Citizens Bank
 
2.375% 7/28/21
 
76,000

 
76,355

 
CNH Equipment Trust
 
3.12% 07/17/2023
 
745,000

 
753,614

 
Comcast Corporation
 
3.375% 08/15/25
 
565,000

 
599,094

 
Comcast Corporation
 
3.95% 10/15/25
 
2,076,000

 
2,264,031

 
Comcast Corporation
 
3.7% 04/15/2024
 
1,000,000

 
1,065,440

 
COMM 13-CR12 A4
 
4.046% 10/46
 
3,600,000

 
3,799,297

 
COMM 14-UBS6 ASB
 
3.387% 12/47
 
194,999

 
199,640

 
COMM 15-CCRE24 A4
 
3.432% 8/55
 
4,300,000

 
4,500,448

 
COMM 15-CR23 ASB
 
3.257% 05/48
 
338,000

 
347,231

 
COMM 15-CR26 ASB
 
3.373% 10/48
 
222,000

 
229,443

 
COMM 2012-CR3 A3
 
2.822% 10/45
 
423,422

 
428,447

 
COMM 2012-CR3 ASB
 
2.372% 11/45
 
293,146

 
293,688

 
COMM 2012-LC4 A4
 
3.288% 12/44
 
893,976

 
908,146

 
COMM 2013-300P
 
4.353% 8/10/30
 
2,620,000

 
2,773,335

 
COMM 2013-CR12 A2
 
2.904% 10/46
 
55,397

 
55,359

 
COMM 2013-CR6 A4
 
3.101% 03/46
 
496,000

 
508,151

 
COMM 2013-CR7 A4
 
3.213% 03/46
 
511,860

 
525,311

 
COMM 2013-CR7 ASB
 
2.739% 03/46
 
2,445,555

 
2,469,436

 
COMM 2013-CR8 A5
 
3.612% 06/46
 
301,000

 
313,536

 
COMM 2015-CR22 A2
 
2.856% 3/48
 
101,598

 
101,533


18

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
COMM 2015-CR22 ASB
 
3.144% 3/48
 
318,000

 
325,631

 
COMM 2015-CR23 A2
 
2.852% 05/48
 
712,222

 
712,134

 
COMM 2015-CR25 A3
 
3.505% 8/48
 
3,445,893

 
3,610,572

 
COMM 2015-DC1 A4
 
3.078% 2/48
 
3,000,000

 
3,078,812

 
COMM 2015-PC1 A3
 
3.725% 7/50
 
4,000,000

 
4,061,746

 
Commonwealth Edison
 
3.4% 9/01/21
 
1,615,000

 
1,651,663

 
Commonwealth Edison
 
2.95% 08/15/27
 
1,040,000

 
1,076,465

 
Compass Bank
 
2.875% 6/29/22
 
1,992,000

 
2,019,498

 
Compass Bank
 
3.5% 6/11/21
 
610,000

 
620,446

 
Conagra Brands, Inc.
 
3.8% 10/22/21
 
1,000,000

 
1,031,670

 
Concho Resources Inc
 
3.75% 10/01/27
 
660,000

 
693,330

 
Consolidated Edison
 
2% 5/15/21
 
311,000

 
311,136

 
Constellation Brands, FRN
 
3ML+70 11/15/21
 
1,860,000

 
1,860,325

 
Corporacion Andina De Formento
 
2.125% 9/27/21
 
485,000

 
483,661

 
Corporacion Andina De Formento
 
2.75% 1/23
 
400,000

 
404,376

 
Cox Communications Inc
 
3.5% 8/15/27 144A
 
4,000,000

 
4,178,421

 
Credit Agricole S.A.
 
3.375% 1/22
 
1,500,000

 
1,534,373

 
Credit Agricole S.A.
 
3.75% 4/24/23 144A
 
820,000

 
857,250

 
Credit Suisse
 
3% 10/29/21
 
2,280,000

 
2,324,948

 
Credit Suisse
 
3.574% 1/23 144A
 
2,050,000

 
2,105,258

 
Credit Suisse
 
2.1% 11/12/21
 
1,492,000

 
1,498,617

 
Credit Suisse
 
2.593%/VAR 9/11/25 144A
 
801,000

 
803,244

 
Credit Suisse
 
3.45% 4/16/21
 
1,500,000

 
1,525,381

 
Credit Suisse Mortgage Capital
 
1ML+98.535 5/15/36 144A
 
2,690,000

 
2,695,622

 
CSAIL 2015-C2 A-SB Commerical Mortgage Trust
 
3.2241% 6/57
 
227,000

 
232,397

 
CSAIL 2017-CX9 A2 Commerical Mortgage Trust
 
3.0538% 9/15/50
 
641,000

 
651,645

 
CSAIL 2018-CX11 A-SB Commercial Mortgage Trust
 
4.0339% 4/51
 
2,400,000

 
2,578,334

 
CSAIL 2019-C15 Commercial Mortgage Trust
 
3.4505% 3/15/52
 
597,000

 
620,121

 
CVS Health Corporation
 
3.875% 7/20/25
 
2,000,000

 
2,128,182

 
CVS Health Corporation
 
5% 12/1/24
 
2,045,000

 
2,258,103

 
CVS Health Corporation
 
3.7% 03/09/23
 
7,479,000

 
7,785,823

 
CVS Health Corporation
 
4.1% 03/25/25
 
1,000,000

 
1,072,642

 
CVS Health Corporation
 
2.8% 7/20/20
 
338,000

 
338,958

 
CVS Health Corporation
 
2.125% 6/01/21
 
1,000,000

 
1,001,516

 
CVS Health Corporation
 
3.35% 03/09/21
 
755,000

 
767,378

 
Daimler Financial
 
3.1% 05/20 144A
 
740,000

 
742,435

 
Daimler Financial
 
3.35% 5/21 144A
 
1,230,000

 
1,248,950

 
Daimler Financial
 
3.4% 2/22/22 144A
 
1,065,000

 
1,090,812


19

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
Daimler Financial
 
2.55% 8/15/22 144A
 
1,090,000

 
1,097,636

 
Daimler Financial
 
2.25% 3/20 144A
 
387,000

 
387,096

 
Daimler Financial
 
2.45% 5/20 144A
 
750,000

 
750,988

 
Daimler Financial
 
2.3% 1/06/20 144A
 
1,000,000

 
999,982

 
Daimler Financial
 
2.85% 1/6/22 144A
 
504,000

 
510,027

 
Daimler Financial
 
2.3% 2/12/21 144A
 
500,000

 
500,874

 
DBGS BIOD Mortgage Trust
 
1ML+80.3 05/35
 
1,647,447

 
1,642,281

 
DBUBS Mortgage Trust
 
4.537% 7/44
 
734,342

 
749,842

 
Dell Equipment Finance Trust
 
3.18% 06/22
 
256,000

 
258,014

 
Delta Air Lines
 
3.625% 3/15/22
 
2,570,000

 
2,630,938

 
Delta Air Lines
 
2.9% 10/28/24
 
1,000,000

 
1,000,430

 
Deutsche Bank Ag
 
3.375% 5/12/21
 
1,760,000

 
1,773,598

 
Deutshce Telecom
 
1.95% 9/21 144A
 
1,340,000

 
1,339,680

 
Dexia Credit
 
2.25% 2/18/20 144A
 
2,250,000

 
2,250,971

 
Diamond Finance
 
5.45% 6/23 144A
 
939,000

 
1,017,931

 
Digital Realty
 
2.75% 2/1/23
 
312,000

 
315,110

 
Discover Bank
 
3.45% 7/27/26
 
250,000

 
259,405

 
Discover Bank
 
3.1% 6/20
 
1,247,000

 
1,251,638

 
Discover Bank
 
3.35% 2/06/23
 
500,000

 
515,784

 
Discover Card Execution Note Trust
 
1ML+60 12/26
 
1,660,000

 
1,667,208

 
Discover Card Execution Note Trust
 
1.88% 2/15/23
 
2,357,000

 
2,357,214

 
Discover Card Execution Note Trust
 
3.32% 3/24
 
1,038,000

 
1,063,500

 
Discover Card Execution Note Trust
 
3.04% 7/15/24
 
852,000

 
872,345

 
Discover Financial
 
3.75% 3/04/25
 
1,190,000

 
1,259,001

 
DNB Bank ASA
 
2.15% 12/2/22 144A
 
1,275,000

 
1,280,168

 
Dominion Energy Inc
 
2.715% 8/21
 
850,000

 
856,243

 
Dominion Resources Inc
 
0.962% 4/1/21
 
750,000

 
768,499

 
Dominion Resources Inc
 
2.5% 11/15/24
 
188,000

 
188,705

 
Dominion Resources Inc
 
2% 8/15/21
 
251,000

 
250,846

 
Dow Chemical
 
3% 11/15/22
 
1,425,000

 
1,456,468

 
DowDuPont Inc.
 
3.766% 11/15/20
 
380,000

 
385,246

 
DowDuPont Inc.
 
4.205% 11/15/23
 
1,030,000

 
1,101,072

 
Dr Horton Inc
 
2.55% 12/01/20
 
560,000

 
562,437

 
DTE Energy
 
2.25% 11/1/22
 
1,000,000

 
999,364

 
Duke Energy
 
3.95% 11/15/28
 
1,075,000

 
1,196,919

 
Duke Energy
 
1.8% 9/01/21
 
245,000

 
244,713

 
Duke Energy
 
3.05% 3/15/23
 
675,000

 
695,338

 
Ecopetrol S.A.
 
5.875% 09/18/2023
 
1,500,000

 
1,664,700

 
Electronic Arts
 
3.7% 3/01/21
 
1,080,000

 
1,100,012

 
Emera US Finance
 
2.7% 6/15/21
 
2,695,000

 
2,719,395

 
Enbridge Inc
 
2.9% 07/15/22
 
1,100,000

 
1,120,350


20

Table of Contents
Raytheon Savings and Investment Plan
Schedule H Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2019


Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
Shares/Units/ Principal

 
 Current Value

 
Energy Transfer Operating, LP
 
4.95% 06/15/28
 
570,000

 
623,860

 
Energy Transfer Operating, LP
 
5.5% 6/1/27
 
500,000

 
561,528

 
Enterprise Products
 
3.9% 2/15/24
 
2,035,000

 
2,159,497

 
Enterprise Products
 
2.85% 4/15/21
 
323,000

 
326,483

 
Enterprise Products
 
2.8% 02/15/2021
 
305,000

 
308,041

 
ERAC USA Finance
 
3.3% 10/22 144A
 
745,000

 
766,138

 
ERAC USA Finance
 
3.85% 11/24 144A
 
225,000

 
238,024

 
ERAC USA Finance
 
2.7% 11/1/23 144A
 
3,500,000

 
3,540,196

 
Erp Operating Lp
 
4.625% 12/15/21
 
15,000

 
15,668

 
Euro 90 Day Future
 
DEC20 EDZ0
 
(102
)
 
1,275

 
Evergy Inc
 
2.45% 9/15/24
 
810,000

 
814,097

 
Eversource Energy
 
2.5% 3/15/21
 
520,000

 
522,924

 
Eversource Energy
 
2.75% 3/15/22
 
574,000

 
582,344

 
Exelon Corporation
 
4.25% 6/15/22
 
1,290,000

 
1,348,744

 
Exelon Corporation
 
2.85% 6/15/20
 
1,111,000

 
1,113,473

 
Exelon Corporation
 
VAR 6/1/22
 
376,000

 
385,991

 
Experian Finance plc
 
2.75% 3/8/30 144A
 
1,795,000

 
1,765,710

 
Express Scripts
 
2.6% 11/20
 
180,000

 
181,000

 
Fannie Mae
 
2.375% 01/19/23
 
480,000

 
490,427

 
Fannie Mae
 
2.5% 2/5/24
 
270,000

 
278,128

 
Fannie Mae
 
G93-3 K 7% 2/23
 
9,347

 
9,817

 
Fannie Mae
 
6.625% 11/15/30
 
1,935,000

 
2,754,355

 
Fannie Mae
 
2001-7 PF 7% 3/31
 
2,166

 
2,499

 
Fannie Mae
 
2013-72 KE 3.5% 2/43
 
762,275

 
781,430

 
Fannie Mae
 
2015-M8 Ab2 2.829% 01/25
 
1,460,333

 
1,509,193

 
Fannie Mae
 
2016-M3 Ab2 2.606% 2/26
 
894,506

 
909,472

 
Fannie Mae
 
2016-M5 Ab2 2.375% 4/26
 
2,098,823

 
2,108,768

 
Fannie Mae
 
2016-M11 Ab2 2.254% 7/26
 
3,047,942

 
3,026,879

 
Fannie Mae
 
2016-M12 Ab2 2.362% 9/26
 
5,800,000

 
5,776,451

 
Fannie Mae
 
2018-M4 A1 VAR 11/27
 
2,118,047

 
2,194,998

 
Fannie Mae
 
2018-M7 A1 VAR 03/28
 
3,148,063

 
3,301,110

 
Fannie Mae
 
2018-M8 A1 VAR 09/27
 
3,602,436

 
3,827,158

 
Fannie Mae
 
2018-M14 A1 3.5778% 8/25/28
 
3,559,890

 
3,840,453

 
Fannie Mae
 
2018-M14 A2 VAR 08/28
 
3,100,000

 
</