Raytheon 2007 Annual Report Download - page 119

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
the employee’s contribution, up to a maximum of generally between 3% and 4% of the employee’s pay (Company
Match). Prior to January 1, 2005, the Company Match was made through a contribution to the Company stock fund.
Effective January 1, 2005, the Company Match was invested in the same way as employee contributions. Total expense for
the Company Match was $230 million, $189 million and $190 million in 2007, 2006 and 2005, respectively.
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 (Company Contributions). Effective January 1, 2005, we discontinued the
annual contribution to our common stock fund for most U.S. salaried and hourly employees. The contribution for 2005 was
made in April 2006. Total expense for the Company Contributions was less than $1 million, $1 million and $25 million and the
number of shares allocated to participant accounts was 9,000, 18,000 and 660,000 in 2007, 2006 and 2005, respectively. We
purchased shares on the open market for the Company Contributions in 2007, 2006 and 2005.
Effective January 1, 2007, all eligible newly-hired or rehired employees participate in a new defined contribution plan in
lieu of our existing pension plans, subject to any applicable collective bargaining agreements. The total expense for the
Company contributions to this plan in 2007 was $9 million. Our current eligible employees will continue to participate in
our existing pension plans without any changes to level of benefits or payment options.
At December 31, 2007, there was $11.0 billion invested in our defined contribution plan. At December 31, 2007, there
was $1.9 billion invested in our common stock fund, over which there are no restrictions.
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.
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. Included in the results of NCS is the equity income
from TRS, Ltd. and the minority interest in TRS, LLC as discussed in Note 7, Other Assets, net.
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.
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.
Effective on the date of the sale of Flight Options LLC (FO) in 2007, we reorganized the remaining businesses that we
formerly disclosed in the Other category to realign our capabilities and technologies. As discussed above, FO is accounted
for as a discontinued operation. Also, our Raytheon Professional Services business was transferred to Technical Services.
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