Raytheon 2003 Annual Report Download - page 65

P63 333 RAYTHEON COMPANY 333
REPORT OF INDEPENDENT AUDITORS
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To the Board of Directors and Stockholders of Raytheon Company
In our opinion, the accompanying consolidated balance sheets
and the related consolidated statements of operations, stock-
holders’ equity and cash flows present fairly, in all material
respects, the financial position of Raytheon Company and its
subsidiaries at December 31, 2003 and 2002, and the results of
their operations and their cash flows for each of the three years
in the period ended December 31, 2003 in conformity with
accounting principles generally accepted in the United States of
America. These financial statements are the responsibility of the
Company’s management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial state-
ments are free of material misstatement. An audit includes exam-
ining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by manage-
ment, and evaluating the overall financial statement presen-
tation. We believe that our audits provide a reasonable basis for
our opinion.
As discussed in Note A to the consolidated financial state-
ments, in 2002 the Company changed its method of accounting for
goodwill and other intangible assets in accordance with Statement
of Financial Accounting Standards No. 142, Goodwill and Other
Intangible Assets, and its method of accounting for long-lived
assets and discontinued operations in accordance with Statement
of Financial Accounting Standards No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
Boston, Massachusetts
January 26, 2004, except as to the second paragraph of Note B as
to which the date is February 23, 2004, the last paragraph of
Note J as to which the date is February 11, 2004 and the last para-
graph of Note K as to which the date is March 1, 2004
COMPANY RESPONSIBILITY FOR FINANCIAL STATEMENTS
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The financial statements and related information contained in this
Annual Report have been prepared by and are the responsibility of
the Company’s management. The Company’s financial statements
have been prepared in conformity with accounting principles gen-
erally accepted in the United States of America and reflect judg-
ments and estimates as to the expected effects of transactions and
events currently being reported. The Company’s management is
responsible for the integrity and objectivity of the financial state-
ments and other financial information included in this Annual
Report. To meet this responsibility, the Company maintains a sys-
tem of internal accounting controls to provide reasonable assur-
ance that assets are safeguarded and that transactions are
properly executed and recorded. The system includes policies and
procedures, internal audits, and Company officers’ reviews.
The Audit Committee of the Board of Directors is composed
solely of outside directors. The Audit Committee meets periodically
and, when appropriate, separately with representatives of the inde-
pendent auditors, Company officers, and the internal auditors to
monitor the activities of each.
Upon recommendation of the Audit Committee, Pricewater-
houseCoopers LLP, independent auditors, were selected by the
Board of Directors to audit the Company’s financial statements
and their report follows.
Senior Vice President and Chairman and
Chief Financial Officer Chief Executive Officer