Raytheon 2005 Annual Report Download - page 46

A summary of the owned and leased floor space at December 31, 2005, by business segment or other unit, follows:
(in square feet with 000’s omitted) Leased Owned*
Government
Owned Total
Integrated Defense Systems 2,742 2,835 120 5,697
Intelligence and Information Systems 3,589 1,055 — 4,644
Missile Systems 3,097 790 1,247 5,134
Network Centric Systems 3,708 4,329 — 8,037
Space and Airborne Systems 1,492 3,130 12 4,634
Technical Services 4,771 80 1,287 6,138
Aircraft 1,836 3,796 — 5,632
Flight Options LLC 138 125 — 263
Raytheon Airline Aviation Services LLC 484 279 — 763
Raytheon Professional Services LLC 131 — — 131
Raytheon United Kingdom 235 342 — 577
Raytheon International, Inc. 80 — — 80
Corporate, administration and services 323 150 — 473
Total 22,626 16,911 2,666 42,203
* Ownership may include either fee ownership of land and improvements or a long-term land lease with ownership of improvements.
ITEM 3. LEGAL PROCEEDINGS
Previously Reported Proceedings
In re Raytheon ERISA Litigation. As previously reported, in May 2003 two purported class action lawsuits captioned,
Benjamin Wall v. Raytheon Company et al. (Civil Action No. 03-10940-RGS), and Joseph I. Duggan, III v. Raytheon
Company et al. (Civil Action No. 03-10995-RGS), were filed in the U.S. District Court in Massachusetts on behalf of
participants in the Company’s savings and investment plans who invested in the Company’s stock between August 19,
1999 and May 27, 2003. The two class action complaints are brought pursuant to the Employee Retirement Income
Security Act (“ERISA”). Both complaints allege that the Company and certain officers and directors breached ERISA
fiduciary and co-fiduciary duties arising out of the Company’s savings and investment plans’ investment in Raytheon
stock. The Court consolidated these actions in September 2003. In April 2004, a second consolidated amended complaint
(the “Second Consolidated Amended ERISA Complaint”) was filed on behalf of participants and beneficiaries in the
Company’s savings and investment plans who invested in Raytheon stock since October 7, 1998. In October 2004, the
defendants filed a motion to dismiss the Second Consolidated Amended ERISA Complaint. In September 2005, the Court
heard the motion to dismiss but declined to decide the motion subject to a trial on a statute of limitations issue, which is
scheduled for June 2006.
Although the Company believes that it has meritorious defenses to the claims made in the above action and intends to
contest the matter vigorously, an adverse resolution of the matter could have a material adverse effect on the Company’s
financial position and results of operations. The Company is not presently able to reasonably estimate potential losses, if
any, related to the matter.
In re Raytheon Securities Litigation. As previously reported, in late 1999, the Company and two of its officers were named
as defendants in several class action lawsuits. These lawsuits were consolidated into a single complaint in June 2000, when
four additional former or present officers were named as defendants in a Consolidated and Amended Class Action
Complaint (the “Consolidated Complaint”) with the caption, In re: Raytheon Securities Litigation (Civil Action
No. 12142-PBS), filed in the U.S. District Court in Massachusetts. The Consolidated Complaint principally alleged that
the defendants violated federal securities laws by purportedly making misleading statements and by failing to disclose
material information concerning the Company’s financial performance during the class period. In May 2004, without
admitting any liability or wrongdoing, the Company reached an agreement to settle this class action lawsuit on behalf of
the Company and all individual defendants. The terms of the settlement included a cash payment of $210 million and the
issuance of warrants for the Company’s stock with a stipulated value of $200 million. The warrants will have a five-year
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