Raytheon 2004 Annual Report Download - page 34

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16
Most of the laws governing environmental matters include criminal provisions. If the Company were convicted
of a violation of the Federal Clean Air Act or the Clean Water Act, the facility or facilities involved in the violation
would be placed by the EPA on the “Excluded Parties List” maintained by the Government Services Administration.
The listing would continue until the EPA concluded that the cause of the violation had been cured. Listed facilities
cannot be used in performing any U.S. Government contract awarded during any period of listing by the EPA.
Additional information regarding the effect of compliance with environmental protection requirements and the
resolution of environmental claims against the Company and its operations is contained in “Risk Factors and
Forward-Looking Statements” immediately below, in Item 3 “Legal Proceedings”, in “Commitments and
Contingencies” within Item 7 of this Form 10-K and in “Note L – Commitments and Contingencies” within Item 8
of this Form 10-K.
RISK FACTORS AND FORWARD-LOOKING STATEMENTS
An investment in our common stock or debt securities includes risks and uncertainties. Investors should consider
the following factors carefully, in addition to the other information included in this Form 10-K, before purchasing
our securities.
This filing and the information we are incorporating by reference, including any statements relating to the
Company’s future plans, objectives, and projected future financial performance, contain or are based on, forward-
looking statements within the meaning of federal securities laws. Specifically, statements that are not historical
facts, including statements accompanied by words such as “believe,” “expect,” “estimate,” “intend,” or “plan,”
variations of these words, and similar expressions, are intended to identify forward-looking statements and convey
the uncertainty of future events or outcomes. The Company cautions readers that any such forward-looking
statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of
risks, and actual results may differ materially. Given these uncertainties, you should not rely on forward-looking
statements.
We heavily depend on our government contracts, which are only partially funded, subject to immediate
termination and heavily regulated and audited, and the termination or failure to fund one or more of these contracts
could have a negative impact on our operations.
We act as prime contractor or major subcontractor for many different Government programs. Over its lifetime,
a program may be implemented by the award of many different individual contracts and subcontracts. The funding
of Government programs is subject to congressional appropriations. Although multiple year contracts may be
planned in connection with major procurements, Congress generally appropriates funds on a fiscal year basis even
though a program may continue for several years. Consequently, programs are often only partially funded initially,
and additional funds are committed only as Congress makes further appropriations. The termination of funding
for a Government program would result in a loss of anticipated future revenues attributable to that program. That
could have a negative impact on our operations. In addition, the termination of a program or failure to commit
funds to a prospective program or a program already started could increase our overall costs of doing business.
Generally, Government contracts are subject to oversight audits by Government representatives and contain
provisions permitting termination, in whole or in part, without prior notice at the Government’s convenience upon
the payment of compensation only for work done and commitments made at the time of termination. We can give
no assurance that one or more of our Government contracts will not be terminated under these circumstances.
Also, we can give no assurance that we would be able to procure new Government contracts to offset the revenues
lost as a result of any termination of our contracts. As our revenues are dependent on our procurement,
performance and payment under our contracts, the loss of one or more critical contracts could have a negative
impact on our financial condition.