Raytheon 2007 Annual Report Download - page 51

We face certain significant risk exposures and potential liabilities that may not be adequately covered by indemnity or
insurance.
A significant portion of our business relates to designing, developing and manufacturing advanced defense and
technology systems and products. New technologies may be untested or unproven. In addition, we may incur significant
liabilities that are unique to our products and services, including missile systems, command and control systems, border
security systems, and air traffic management systems. In some, but not all, circumstances, we may be entitled to
indemnification from our customers, either through contractual provisions, qualification of our products and services by
the Department of Homeland Security under the SAFETY Act provisions of the Homeland Security Act of 2002, or
otherwise. While we maintain insurance for certain risks, the amount of our insurance coverage may not be adequate to
cover all claims or liabilities, and it is not possible to obtain insurance to protect against all operational risks and
liabilities. Accordingly, we may be forced to bear substantial costs resulting from risks and uncertainties of our business
which would negatively impact our results of operations and financial condition.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We operate in a number of plants, laboratories, warehouses and office facilities in the United States and abroad.
As of December 31, 2007, we owned, leased or utilized through operating agreements approximately 31.2 million square
feet of floor space for manufacturing, engineering, research, administration, sales and warehousing, approximately 93%
of which was located in the United States. Approximately 42% of this amount was owned (or held under a long term
ground lease with ownership of the improvements), approximately 53% was leased and approximately 5% was made
available under facilities contracts for use in the performance of U.S. government contracts. Of the 31.2 million square
feet of floor space owned, leased or utilized through operating agreements by us, approximately 1.7 million square feet
was subleased to unrelated third parties. In addition to the 31.2 million square feet, we had approximately 0.1 million
square feet of floor space that was vacant.
There are no major encumbrances on any of our facilities other than financing arrangements which in the aggregate are
not material. Management believes our properties have been well maintained, are suitable and adequate for us to operate
at present levels, and the productive capacity and extent of utilization of the facilities are appropriate for our existing real
estate requirements.
As of December 31, 2007, our business segments had major operations at the following locations:
ⳮIntegrated Defense Systems—Huntsville, AL; San Diego, CA; Andover, MA; Billerica, MA; Sudbury, MA; Tewksbury,
MA; Woburn, MA; Portsmouth, RI; Keyport, WA; and Kiel, Germany.
ⳮIntelligence and Information Systems—Aurora, CO; Landover, MD; Linthicum, MD; Omaha, NE; State College, PA;
Garland, TX; Falls Church, VA; Reston, VA; Springfield, VA; and Uxbridge, England.
ⳮMissile Systems—East Camden, AR; Tucson, AZ; Rancho Cucamonga, CA; Louisville, KY; and Farmington, NM.
ⳮNetwork Centric Systems—Fullerton, CA; Goleta, CA; Largo, FL; St. Petersburg, FL; Ft. Wayne, IN; Marlboro, MA;
Towson, MD; Dallas, TX; McKinney, TX; Plano, TX; Richardson, TX; Midland, Ontario, Canada; Waterloo, Ontario,
Canada; Harlow, England and Malaga, Spain.
ⳮSpace and Airborne Systems—El Segundo, CA; Goleta, CA; Long Beach, CA; Forest, MS; Dallas, TX; McKinney, TX;
and Glenrothes, Scotland.
ⳮTechnical Services—Chula Vista, CA; Long Beach, CA; Pomona, CA; Van Nuys, CA; Indianapolis, IN; Burlington,
MA; Troy, MI; Norfolk, VA; Reston, VA; Canberra, Australia; and Christchurch, New Zealand.
ⳮCorporate—Billerica, MA; Waltham, MA; Garland, TX; Plano, TX; and Arlington, VA.
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