Raytheon 2007 Annual Report Download - page 52

A summary of the space owned, leased and utilized by us as of December 31, 2007, by business segment is as follows:
Leased Owned(1)
Gov’t
Owned(2) Total(3)
Integrated Defense Systems 2,259,000 2,952,000 69,000 5,280,000
Intelligence and Information Systems 2,520,000 941,000 — 3,461,000
Missile Systems 2,724,000 1,136,000 1,202,000 5,062,000
Network Centric Systems 2,044,000 3,749,000 — 5,793,000
Space and Airborne Systems 3,272,000 3,898,000 — 7,170,000
Technical Services 3,152,000 184,000 161,000 3,497,000
Corporate 564,000 406,000 — 970,000
Totals 16,535,000 13,266,000 1,432,000 31,233,000
(1) Ownership may include either fee ownership of land and improvements or a long term land lease with ownership of improvements.
(2) Space utilized by us pursuant to an operating agreement (e.g. government-owned, contractor-operated).
(3) Excludes approximately 145,000 square feet of vacant space.
ITEM 3. LEGAL PROCEEDINGS
We are primarily engaged in providing products and services under contracts with the U.S. government and, to a lesser
degree, under direct foreign sales contracts, some of which are funded by the U.S. government. These contracts are
subject to extensive legal and regulatory requirements and, from time to time, agencies of the U.S. government investigate
whether our operations are being conducted in accordance with these requirements. U.S. government investigations of
us, whether relating to these contracts or conducted for other reasons, could result in administrative, civil or criminal
liabilities, including repayments, fines or penalties being imposed upon us, the suspension of government export licenses
or the suspension or debarment from future U.S. government contracting. U.S. government investigations often take
years to complete and many result in no adverse action against us. Government contractors are also subject to many
levels of audit and investigation. Agencies that oversee contract performance include: the Defense Contract Audit Agency,
the Inspector General of the Department of Defense and other departments and agencies, the Government Accountability
Office, the Department of Justice and Congressional Committees. The Department of Justice, from time to time, has
convened grand juries to investigate possible irregularities by us.
We are involved in various stages of investigation and cleanup related to remediation of various environmental sites. All
appropriate costs expected to be incurred in connection therewith have been accrued. Due to the complexity of
environmental laws and regulations, the varying costs and effectiveness of alternative cleanup methods and technologies,
the uncertainty of insurance coverage and the unresolved extent of our responsibility, it is difficult to determine the
ultimate outcome of these matters. However, we do not expect any additional liability to have a material effect on our
financial position, results of operations or liquidity. We have disclosed additional information regarding the effect of
compliance with environmental protection requirements and the resolution of environmental claims against us and our
operations in “Environmental Regulation” within Item 1, Item 1A. “Risk Factors,” “Commitments and Contingencies”
within Item 7 and “Note 12: Commitments and Contingencies” within Item 8 of this Form 10-K.
Various other claims and legal proceedings generally incidental to the normal course of business are pending or
threatened against us. While we cannot predict the outcome of these matters, we do not expect any liability arising from
them will have a material adverse effect on our financial position, results of operations or liquidity.
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