Raytheon 2006 Annual Report Download - page 120

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Prior to January 1, 2005, we made an annual contribution to our common stock fund of approximately one-half of one
percent of salaries and wages, subject to certain limitations, of most U.S. salaried and hourly employees (Company
Contributions). Effective January 1, 2005, we discontinued the annual contribution to our common stock fund. The
contribution for 2005 was made in April 2006. Total expense for the Company Contributions was $1 million, $25 million
and $23 million and the number of shares allocated to participant accounts was 18,000, 660,000 and 762,000 in 2006,
2005 and 2004, respectively.
We purchased shares on the open market for the Company Match and Company Contributions in 2006 and 2005. We
funded a portion of the Company Match and Company Contributions in 2004 and through the issuance of common
stock.
At December 31, 2006, there was $10.3 billion invested in our defined contribution plan. At December 31, 2006, there
was $1.9 billion invested in our common stock fund, over which there are no restrictions, effective July 1, 2006.
Note 15: Business Segment Reporting
Reportable segments, which are organized based on capabilities and technologies, include: Integrated Defense Systems,
Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems and
Technical Services, together with our Other category.
Integrated Defense Systems provides ballistic missile defense, naval and maritime and homeland security solutions.
Intelligence and Information Systems provides integrated ground systems for signal and image intelligence and weather
and climate systems, command and control solutions for air/space platforms, operations, maintenance and engineering
(OM&E) services and information technology and homeland security solutions.
Missile Systems provides a broad range of weapon systems, including missiles, smart munitions, projectiles, kinetic kill
vehicles and directed energy effectors.
Network Centric Systems provides net-centric mission solutions for networked sensors, command and control
communications, air traffic management and homeland security.
Space and Airborne Systems provides integrated systems and solutions for advanced missions including surveillance and
reconnaissance, precision engagement, unmanned aerial operations, special force operations and space.
Technical Services provides technology solutions for defense, federal government and commercial customers worldwide,
specializing in counter-proliferation and counter-terrorism, base and range operations, customized engineering and
manufacturing services and mission support.
We also have three other business segments consisting of Flight Options LLC, Raytheon Airline Aviation Services LLC
and Raytheon Professional Services LLC, which we combine and disclose in the Other category.
Segment net sales and operating income generally include intersegment sales and profit recorded at cost plus a specified
fee, which may differ from what the selling entity would be able to obtain on external sales. Corporate and Eliminations
includes certain Company-wide accruals and intersegment sales and profit eliminations.
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