1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): January 30, 2003 RAYTHEON COMPANY ----------------- (Exact name of registrant as specified in its charter) Delaware 1-13699 95-1778500 -------- ------- ---------- (State of Incorporation) (Commission File Number) (IRS Employer Identification Number) 141 Spring Street Lexington, Massachusetts 02421 ------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (781) 862-6600
2 Item 9. Regulation FD Disclosure We are filing this Form 8-K to disclose changes in the way we will report our segment results beginning in the first quarter of 2003. On August 30, 2002, we announced that we would realign our government and defense businesses into six segments. In addition, on December 19, 2002, we announced that our Commercial Electronics businesses would be reassigned to the new government and defense businesses. Raytheon Aircraft Company will continue to be reported separately. Accordingly, beginning in the first quarter of 2003, we will report our financial results in the following segments: o Integrated Defense Systems (IDS) o Intelligence and Information Systems (IIS) o Missile Systems (MS) o Network Centric Systems (NCS) o Space and Airborne Systems (SAS) o Technical Services (TS) o Aircraft (RAC) Also beginning in the first quarter of 2003, we will change the way we report pension expense or income in our segment results. Statement of Financial Accounting Standards (SFAS) No. 87, Employers' Accounting for Pensions, outlines the methodology used to determine pension expense or income for financial reporting purposes, which is not necessarily indicative of the funding requirements of pension plans, which are determined by other factors. A major factor for determining pension funding requirements are Cost Accounting Standards (CAS) that proscribe the allocation to and recovery of pension costs on U.S. government contracts. We will report the difference between our SFAS No. 87 (FAS) pension expense or income and our CAS pension expense as a separate line item in our segment results called FAS/CAS Income Adjustment. Our individual segment results will now only include pension expense as determined under CAS, which can generally be recovered through the pricing of products and services to the U.S. government. Previously, our individual segment results included FAS pension expense or income, which consisted of CAS pension expense and an adjustment to reconcile CAS pension expense to FAS pension expense or income. The following information reflects our segment results during 2001 and 2002 as though we had operated our business in the realigned structure consisting of IDS, IIS, MS, NCS, SAS, TS and RAC during those periods. In addition, the individual segment results below include pension expense as determined under CAS. Also included below is information relating to 2001 operating income in the realigned segment structure excluding goodwill amortization, which was discontinued January 1, 2002, in accordance with SFAS No. 142, Goodwill and Other Intangible Assets.
3 2002 Segment Results Net Sales ====================================================================== (In millions) Q1 Q2 Q3 Q4 Total - ---------------------------------------------------------------------- Integrated Defense Systems 591 598 542 635 2,366 Intelligence and Information Systems 417 457 485 528 1,887 Missile Systems 727 729 792 790 3,038 Network Centric Systems 748 760 759 824 3,091 Space and Airborne Systems 707 798 803 935 3,243 Technical Services 528 505 556 544 2,133 Aircraft 494 526 451 687 2,158 Corporate and Eliminations (301) (278) (296) (281) (1,156) - ---------------------------------------------------------------------- Total 3,911 4095 4,092 4,662 16,760 ====================================================================== Operating Income ====================================================================== (In millions) Q1 Q2 Q3 Q4 Total - ---------------------------------------------------------------------- Integrated Defense Systems 71 72 69 77 289 Intelligence and Information Systems 37 42 45 56 180 Missile Systems 94 92 96 92 374 Network Centric Systems 73 58 63 84 278 Space and Airborne Systems 85 108 109 126 428 Technical Services 35 6 36 39 116 Aircraft (53) 11 (11) 2 (51) FAS/CAS Income Adjustment 52 52 53 53 210 Corporate and Eliminations (41) 13 (5) (37) (70) - --------------------------------------------------------------------- Total 353 454 455 492 1,754 ===================================================================== Operating Cash Flow ===================================================================== (In millions) Q1 Q2 Q3 Q4 Total - --------------------------------------------------------------------- Integrated Defense Systems (123) 58 56 203 194 Intelligence and Information Systems (47) 11 46 111 121 Missile Systems (101) 2 37 238 176 Network Centric Systems (128) 44 49 123 88 Space and Airborne Systems (77) 125 111 (6) 153 Technical Services 22 82 27 43 174 Aircraft 34 (70) (81) 68 (49) Corporate 214 175 156 218 763 - --------------------------------------------------------------------- Total (206) 427 401 998 1,620 ===================================================================== Capital Expenditures ===================================================================== (In millions) Q1 Q2 Q3 Q4 Total - --------------------------------------------------------------------- Integrated Defense Systems 19 15 15 26 75 Intelligence and Information Systems 7 6 5 12 30 Missile Systems 8 9 13 16 46 Network Centric Systems 12 26 11 30 79 Space and Airborne Systems 22 31 18 51 122 Technical Services 1 4 6 10 21 Aircraft 16 14 28 27 85 - --------------------------------------------------------------------- Total 85 105 96 172 458 =====================================================================
4 Depreciation and Amortization ===================================================================== (In millions) Q1 Q2 Q3 Q4 Total - --------------------------------------------------------------------- Integrated Defense Systems 10 11 10 13 44 Intelligence and Information Systems 6 7 8 7 28 Missile Systems 11 12 12 11 46 Network Centric Systems 15 13 15 17 60 Space and Airborne Systems 14 16 18 21 69 Technical Services 3 3 3 3 12 Aircraft 29 25 26 25 105 - --------------------------------------------------------------------- Total 88 87 92 97 364 ===================================================================== Identifiable Assets =================================================================== (In millions) Q1 Q2 Q3 Q4 - ------------------------------------------------------------------- Integrated Defense Systems 1,821 1,813 1,792 1,612 Intelligence and Information Systems 1,942 1,977 1,999 1,926 Missile Systems 4,570 4,634 4,640 4,429 Network Centric Systems 3,986 3,931 3,921 3,914 Space and Airborne Systems 3,889 3,871 3,814 3,875 Technical Services 1,472 1,405 1,392 1,372 Aircraft 3,183 2,987 2,967 3,891 Corporate 4,780 5,072 4,004 2,333 - ------------------------------------------------------------------- Total 25,643 25,690 24,529 23,352 ===================================================================
5 2001 Segment Results ============================================================================== (In millions) Q1 Q2 Q3 Q4 Total - ------------------------------------------------------------------------------ Integrated Defense Systems 568 584 539 574 2,265 Intelligence and Information 391 421 430 494 1,736 Systems Missile Systems 704 718 741 738 2,901 Network Centric Systems 671 723 696 775 2,865 Space and Airborne Systems 568 686 672 812 2,738 Technical Services 483 499 524 549 2,055 Aircraft 638 768 449 717 2,572 Corporate and Eliminations (251) (302) (296) (266) (1,115) - ------------------------------------------------------------------------------ Total 3,772 4,097 3,755 4,393 16,017 ============================================================================== Operating Income ============================================================================ (In millions) Q1 Q2 Q3 Q4 Total - ---------------------------------------------------------------------------- Integrated Defense Systems 46 56 59 77 238 Intelligence and Information 25 33 31 50 139 Systems Missile Systems 57 65 63 72 257 Network Centric Systems 58 62 47 79 246 Space and Airborne Systems 66 73 98 102 339 Technical Services 27 31 30 35 123 Aircraft (14) 12 (774) (46) (822) FAS/CAS Income Adjustment 97 99 94 96 386 Corporate and Eliminations (48) (36) (12) (44) (140) - ---------------------------------------------------------------------------- Total 314 395 (364) 421 766 ============================================================================ Operating Cash Flow ============================================================================ (In millions) Q1 Q2 Q3 Q4 Total - ---------------------------------------------------------------------------- Integrated Defense Systems 19 14 22 72 127 Intelligence and Information (86) 22 31 76 43 Systems Missile Systems 37 (21) (4) 281 293 Network Centric Systems (57) 16 13 87 59 Space and Airborne Systems 2 60 82 71 215 Technical Services (29) 2 13 (43) (57) Aircraft (242) (74) (260) 118 (458) Corporate (70) 67 (10) (71) (84) - ---------------------------------------------------------------------------- Total (426) 86 (113) 591 138 ============================================================================
6 Capital Expenditures =========================================================================== (In millions) Q1 Q2 Q3 Q4 Total - --------------------------------------------------------------------------- Integrated Defense Systems 20 19 21 29 89 Intelligence and Information 10 13 10 16 49 Systems Missile Systems 4 3 7 23 37 Network Centric Systems 20 19 8 26 73 Space and Airborne Systems 14 17 26 50 107 Technical Services 1 0 1 1 3 Aircraft 26 21 32 24 103 - --------------------------------------------------------------------------- Total 95 92 105 169 461 =========================================================================== Depreciation and Amortization =========================================================================== (In millions) Q1 Q2 Q3 Q4 Total - --------------------------------------------------------------------------- Integrated Defense Systems 18 15 19 10 62 Intelligence and Information 15 16 17 16 64 Systems Missile Systems 36 36 36 35 143 Network Centric Systems 29 30 31 32 122 Space and Airborne Systems 26 30 27 39 122 Technical Services 8 8 8 7 31 Aircraft 32 34 32 35 133 - --------------------------------------------------------------------------- Total 164 169 170 174 677 =========================================================================== Identifiable Assets ================================================================= (In millions) Q1 Q2 Q3 Q4 - ----------------------------------------------------------------- Integrated Defense Systems 1,786 1,765 1,714 1,706 Intelligence and Information 2,001 2,017 1,976 1,916 Systems Missile Systems 4,755 4,842 4,728 4,412 Network Centric Systems 4,041 4,155 3,939 3,904 Space and Airborne Systems 4,128 4,037 3,861 3,848 Technical Services 1,487 1,473 1,401 1,503 Aircraft 3,377 3,404 3,181 3,126 Corporate 3,350 3,526 4,411 4,727 - ----------------------------------------------------------------- Total 24,925 25,219 25,211 25,142 =================================================================
7 2001 Segment Results Operating Income excluding Goodwill Amortization ====================================================================== (In millions) Q1 Q2 Q3 Q4 Total - ---------------------------------------------------------------------- Integrated Defense Systems 51 60 64 81 256 Intelligence and Information 35 43 41 59 178 Systems Missile Systems 81 90 88 97 356 Network Centric Systems 75 79 64 95 313 Space and Airborne Systems 86 92 117 121 416 Technical Services 34 37 36 41 148 Aircraft (12) 14 (772)(1) (44) (814)(1) FAS/CAS Income Adjustment 97 100 94 96 387 Corporate and Eliminations (48) (36) (11) (45) (140) - ---------------------------------------------------------------------- Total 399 479 (279) 501 1,100 ====================================================================== SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: January 30, 2003 RAYTHEON COMPANY By: /s/ John W. Kapples John W. Kapples Vice President and Secretary