Raytheon 2004 Annual Report Download - page 29

11
Range operations capabilities include engineering, design, installation, and testing of instrumentation
modifications, real-time mission data processing, test planning support, systems and software engineering, and
total base support. Supply chain management expertise includes inventory management, warehousing and
distribution. Remote site logistics capabilities include life support, training, requirements analysis and facilities/
equipment operations and maintenance. LTS is a major contractor to the Defense Threat Reduction Agency
(DTRA). LTS also operates and maintains range instrumentation installed on the U.S. Army’s training ranges
around the world.
Price, performance, and innovative service solutions are among the principal competitive factors considered by
RTSC’s customers, which include all branches of the U.S. Armed Forces, NASA, NSF and foreign governments.
RTSC relies upon its past performance, reputation, service expertise and pricing to compete for business.
Aircraft. Raytheon Aircraft Company (RAC), headquartered in Wichita, Kansas designs, develops, manufactures,
markets and provides aftermarket support for business jets, turboprops and piston-powered aircraft for the world’s
Commercial, Fractional Ownership, and Military aircraft markets.
RAC had 2004 net sales of $2.4 billion.
RAC’s major products and initiatives currently include:
• Aircraft and aviation services in the general aviation market, including a network of fixed-base operations
(FBO’s) providing business aviation services at airports throughout North America and in the United
Kingdom and Mexico;
• Supply of spare parts through it’s parts distribution business;
• Marketing, production and support of a piston-powered aircraft line that includes the single-engine
Beechcraft Bonanza A36 and the twin-engine Beechcraft Baron 58 aircraft;
• Marketing, production and support of the Beechcraft King Air turboprop series of aircraft which includes the
Beechcraft King Air C90B, B200 and 350;
• Marketing, production and support of the Hawker 400XP light jet, the Hawker 800XP mid-size business jet
and the Beechcraft Premier 1 entry level business jet;
• Development of a new super mid-size business jet, the Hawker Horizon, which received provisional type
certification in December 2004;
• Marketing, production and support of special mission aircraft including military versions of the Beechcraft
King Air and the Hawker 800XP and its predecessor aircraft;
• Aircraft training systems, including the Beechcraft T6-A trainer previously selected as the next generation
trainer for the U.S. Air Force and Navy under the Joint Primary Aircraft Training System (JPATS).
Price, financing, operating costs, product reliability, cabin size and comfort, product quality, travel range and
speed, and product support are among the principal competitive factors considered by RAC’s customers.
Other. The Other segment is comprised of Flight Options LLC (FO), Raytheon Airline Aviation Services LLC
(RAAS), and Raytheon Professional Services LLC (RPS). FO offers services in the fractional jet industry. RAAS
manages the Company’s commuter aircraft business. RPS provides integrated learning solutions to commercial and
government organizations worldwide.
SALES TO THE UNITED STATES GOVERNMENT
Sales to the United States Government (the “Government”), principally to the Department of Defense (“DoD”),
were $15.0 billion in 2004 and $13.4 billion in 2003, representing 74% of total sales in 2004 and 74% of total sales
in 2003.