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PART I
ITEM 1. BUSINESS
General
Raytheon Company and its subsidiaries (“Raytheon” or the “Company”), with worldwide 2005 sales of $21.9 billion, is
an industry leader in defense and government electronics, space, information technology, technical services, and business
and special mission aircraft. Raytheon designs, develops, manufactures, integrates, supports and provides a wide range of
technologically advanced products, services and solutions for governmental and commercial customers in the United
States and abroad. The Company acts as a prime contractor or major subcontractor on numerous defense and related
programs for the U.S. government, which accounted for 74% of the Company’s sales in 2005.
Raytheon was founded in 1922 and is currently incorporated in the state of Delaware. The Company is the surviving
company of the 1997 merger of HE Holdings, Inc. and Raytheon Company. The Company’s principal executive offices
are located at 870 Winter Street, Waltham, Massachusetts 02451.
Business Segments
The Company operates in seven principal business segments: Integrated Defense Systems (IDS); Intelligence and
Information Systems (IIS); Missile Systems (MS); Network Centric Systems (NCS); Space and Airborne Systems (SAS);
Technical Services (RTSC); and Aircraft. The Company’s IDS, IIS, MS, NCS, SAS, RTSC segments and portions of the
Aircraft segment are primarily engaged in government and defense work. Revenues and other financial information of
the Company’s business segments are set forth on pages 39-43 of this report.
Integrated Defense Systems (IDS)—IDS, headquartered in Tewksbury, Massachusetts, is a leader in mission
systems integration, providing integrated air defense, maritime and joint battlespace solutions. IDS’s international and
domestic customer base includes the U.S. Missile Defense Agency (MDA) and the U.S. Armed Forces. IDS consists of the
following business areas:
Future Naval Capability—This business area is primarily responsible for the Company’s Detailed Design and
Integration contract for the DD(X), the U.S. Navy’s next generation, multi-mission naval destroyer. Under the DD(X)
contract, IDS is developing a fully integrated Ship System capability which will enable the U.S. Navy’s “family of ships”
strategy. This capability includes design of the Combat Systems Suite as well as design and oversight of the Total Ship’s
Computing Environment Infrastructure in which all on-board systems will operate.
Integrated Air Defense (IAD)—IAD provides air and missile defense (AMD) systems integration efforts within a
joint integrated architecture enabling warfighters access to air, sea and ground-based sensors and communication systems
which link together weapons and battle management command and control in a seamless system of open architecture.
This business area produces system of systems engineering solutions, architecture and product capabilities such as: the
Patriot Air & Missile Defense System; Joint Land Attack Cruise Missile Defense Elevated Netted Sensor (JLENS); Surface
Launched, Advanced Medium Range Air to Air Missile (SL-AMRAAM); Complementary Low Altitude Weapon System
(CLAWS); Common Aviation Command & Control System (CAC2S); and Rapid Aerostat Initial Deployment (RAID)
Force Protection Systems. IAD’s primary customer is the U.S. Department of Defense (the “DoD”).
Missile Defense (MD)—MD provides mission system solutions for ballistic missile defense. MD’s key capabilities
and products include system integration, information management, sensor fusion, discrimination, and sensor systems.
MD is the premier provider of Early Warning Radars (for threat detection, track and classification) and X-band
Family-of-Radars (for precision track and discrimination of ballistic missile threats) for the Ballistic Missile Defense
System (BMDS) currently under development by the MDA. MD also leads the Company’s efforts in the development and
implementation of discrimination technology and solutions.
International Operations—This business area, in coordination with the U.S. government and U.S. Armed Forces,
provides a wide range of capabilities across integrated air defense, missile defense, maritime and homeland security
mission areas to foreign customers. International Operations provides these capabilities worldwide and has local
presences in Australia, Germany, Saudi Arabia and Japan.
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