Raytheon 2004 Annual Report Download - page 52

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34
areas. The Company is committed to helping the U.S. Missile Defense Agency to develop an operational Ballistic
Missile Defense System. The Company’s broad array of solutions provides the capability to detect and respond to
threats at all three phases of the missile defense system. The Company’s programs addressing all three phases
include Ballistic Missile Defense System Radar, Space Tracking and Surveillance System, and Cobra Judy Radar.
The Kinetic Energy Interceptor addresses the boost phase. The Company’s programs addressing the midcourse
phase include Upgraded Early Warning Radars, Exo-Atmospheric Kill Vehicle, Sea-Based X-Band Radar, and
Standard Missile-3. Those addressing the terminal phase threat include the Patriot Air and Missile Defense System,
Terminal High-Altitude Area Defense (THAAD) Battle Management Command Control and Communication, and
THAAD Ground-Based Radar.
Precision Engagement The Company provides mission solutions across the entire precision engagement chain. The
Company’s customers are increasingly looking for mission solutions that address the need to operate jointly (across
services and between allied forces), work in a new net-centric paradigm, minimize collateral damage, and strike
time sensitive targets. The Company’s precision engagement systems include: F-15 and F/A-18 Active Electronically
Scanned Array radars, Advanced Medium Range Air-to-Air Missile, Miniature Air Launched Decoy, Situation
Awareness Data Link, UK Joint Effects Tactical Targeting System, NetFires, Joint Standoff Weapon, Paveway,
Tactical Tomahawk, F/A-18 Radar Warning Receiver, High Power Microwave, and High Energy Lasers.
Intelligence, Surveillance and Reconnaissance The Company’s sensing, processing, and dissemination technologies
effectively compress the information gap from hours to minutes. The Company provides integrated systems
solutions for observing, locating, processing, deciding, and disseminating actionable information, enabling
network-centric operations for decision makers. These abilities are crucial for war fighters to achieve information
dominance throughout the entire battlespace. The Company’s key ISR programs include: Global Hawk sensor
suite, Distributed Common Ground System, Space Based Radar, National Polar-orbiting Operational
Environmental Satellite Systems, Future Combat Systems Ground Sensor Integrator, and numerous classified
programs.
Homeland Security In the area of Homeland Security, the Company continues to leverage the technologies and
solutions it has developed for its traditional defense markets to provide solutions to homeland security customers.
Recent efforts have focused on the exploitation of the Company’s expertise in the collection and analysis of large
amounts of data. This has led to wins in border security, most notably US-VISIT, and in related areas.
The Company provides electronics for a wide range of missions and platforms and has several thousand active
programs with U.S. government and other customers. The Company believes that this diversification reduces some
of the risk and volatility often inherent in the defense industry.
The Company generally acts as a prime contractor or subcontractor on its programs. The funding of U.S.
government programs is subject to Congressional authorization and appropriation. While Congress generally
appropriates funds on a fiscal year basis, major defense programs are usually conducted under binding contracts
over multiple years. The termination of funding for a U.S. government program could result in a loss of future
revenues, which would have a negative effect on the Company’s financial position and results of operations. U.S.
government contracts are also subject to oversight audits and contain provisions for termination. Failure to comply
with U.S. government regulations could lead to suspension or debarment from U.S. government contracting.
Sales to the U.S. government may be affected by changes in procurement policies, budget considerations,
changing defense requirements, and political developments. The influence of these factors, which are largely
beyond the Company’s control, could impact the Company’s financial position or results of operations.