Raytheon 2005 Annual Report Download - page 90

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Investments, which are included in other assets, consisted of the following at December 31:
(In millions)
2005
Ownership % 2005 2004
Equity method investments:
Thales-Raytheon Systems Co. Ltd. 50.0 $102 $87
HRL Laboratories, LLC 33.3 31 30
Indra ATM S.L. — —12
TelASIC Communications 17.1 —3
Other n/a 67
139 139
Other investments 710
Total $146 $149
In 2001, the Company formed a joint venture, Thales-Raytheon Systems (TRS) that has two major operating subsidiaries,
one of which the Company controls and consolidates. TRS is a system of systems integrator and provides fully
customized solutions through the integration of command and control centers, radars, and communication networks.
HRL Laboratories is a scientific research facility whose staff engages in the areas of space and defense technologies.
TelASIC Communications delivers high performance, cost-effective radio frequency (RF), analog mixed signal, and
digital solutions for both the commercial and defense electronics markets.
In 2005, the Company sold its interest in Indra ATM S.L., a Spanish joint venture, for $59 million, and recorded a gain of
$45 million.
In 1995, through the acquisition of E-Systems, Inc., the Company invested in Space Imaging and had a 31% equity
investment in Space Imaging LLC. In the first quarter of 2003, the Company paid $130 million related to a Space Imaging
credit facility that matured in March 2003 for which the Company had guaranteed and accrued for in a prior year. In
exchange for this payment, the Company received a note from Space Imaging for this amount that the Company has
valued at zero. In January 2006, substantially all of the assets of Space Imaging were sold. The Company received total
proceeds of approximately $25 million which will be recorded as other income.
In addition, the Company has entered into joint ventures formed specifically to facilitate a teaming arrangement between
two contractors for the benefit of the customer, generally the U.S. government, whereby the Company receives a
subcontract from the joint venture in the joint venture’s capacity as prime contractor. Accordingly, the Company records
the work it performs for the joint venture as operating activity. Joint ventures are not subject to the Company’s internal
control structure.
Certain joint ventures and equity and cost method investments are not listed separately in the table above as the
Company’s investment in these entities is less than $5 million. Information for these joint ventures and investments has
not been separately disclosed since they are not material either individually or in the aggregate.
68