Raytheon 2006 Annual Report Download - page 43

We make available free of charge on or through our Internet website under the heading “Investor Relations,” our annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as
soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange
Commission. Copies of our key corporate governance documents, including our Governance Principles, Certificate of
Incorporation, By-laws and charters for the Audit Committee, Management Development and Compensation Committee,
Governance and Nominating Committee and Public Affairs Committee of Board of Directors and code of ethics entitled
“Standards of Business Ethics and Conduct” are also available on our website. Stockholders may request free copies of these
documents from the Investor Relations Department by writing to Raytheon Company, Investor Relations, 870 Winter
Street, Waltham, MA 02451, or by calling [phone] or by sending an email request to [email protected].
We filed our annual CEO certification with the New York Stock Exchange on May 25, 2006.
ITEM 1A. RISK FACTORS
This Form 10-K and the information we are incorporating by reference contain forward-looking statements within the
meaning of federal securities laws, including information regarding our anticipated sale of Raytheon Aircraft Company,
2007 financial outlook, future plans, objectives, business prospects and anticipated financial performance. You can
identify these statements by the fact that they include words such as “will,” “believe,” “anticipate,” “expect,” “estimate,”
“intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are not
statements of historical facts and represent only our current expectations regarding such matters. These statements
inherently involve a wide range of known and unknown uncertainties. Our actual actions and results could differ
materially from what is expressed or implied by these statements. Specific factors that could cause such a difference
include, but are not limited to, those set forth below and other important factors disclosed previously and from time to
time in our other filings with the Securities and Exchange Commission. Given these factors, as well as other variables that
may affect our operating results, you should not rely on forward-looking statements, assume that past financial
performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in
future periods. We expressly disclaim any obligation or intention to provide updates to the forward-looking statements
and the estimates and assumptions associated with them.
The consummation of our sale of Raytheon Aircraft Company is subject to risks and uncertainties, including the
satisfaction or waiver of specified closing conditions by both parties.
In December 2006, we entered into a definitive agreement to sell our wholly-owned subsidiary, Raytheon Aircraft
Company. The transaction is subject to certain closing conditions, including the receipt of certain regulatory approvals
and the absence of events occurring that would have a material adverse effect (as defined in the definitive agreement) on
Raytheon Aircraft, and is expected to be consummated during the first half of 2007. In the event that the Raytheon
Aircraft sale, as contemplated, is not consummated, Raytheon Aircraft’s business could be negatively impacted by
customer and employee concerns arising from the uncertainty of the situation. Additionally, the market value of our
common stock, which may assume and reflect the consummation of the announced Raytheon Aircraft sale, may fluctuate
and be volatile.
We depend on the U.S. government for a significant portion of our business and changes in government defense spending
could have severe consequences on our financial position, results of operations and business.
Raytheon Aircraft, which derives a substantial majority of its revenues from the sale of business aircraft to commercial
customers, is our only principal business that is not predominantly a government defense business. Accordingly, in the
event that our sale of Raytheon Aircraft is consummated, our dependence upon the U.S. government for business would
increase. In 2006, with Raytheon Aircraft presented as discontinued operations and therefore no longer included in our
net sales, U.S. government sales accounted for approximately 84% of our total net sales. U.S. government sales included
foreign military sales of $1.3 billion, $1.1 billion and $1.0 billion in 2006, 2005 and 2004, respectively.
Our revenues from the U.S. government largely result from contracts awarded to us under various U.S. government
programs, primarily defense-related programs. The funding of our programs is subject to the overall U.S. government
budget and appropriation decisions and processes which are driven by numerous factors, including geo-political events
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