Raytheon 2009 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2009 Raytheon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
transactions for comparable securities and various relationships between securities which are generally recognized by
institutional traders. Investments in private equity funds, hedge funds and private real estate funds are estimated at fair
market value which primarily utilizes net asset values reported by the investment manager. The pension investment team
reviews independently appraised values, audited financial statements and additional pricing information to evaluate the
net asset values. For the very limited group of securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to reflect fair value, additional information is
obtained from the investment manager and evaluated internally to determine whether any adjustments are required to
reflect fair value.
The fair value of the Company’s domestic pension plan assets by asset category and by level (as described in Note 9: Fair
Value Measurement) at December 31, 2009 were as follows:
Fair Value Measurements at December 31, 2009
(In millions) Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents(1) $ 2,042 $ 987 $1,055 $ —
U.S. equity
All capitalization(2) 3,158 2,999 159 —
U.S. equity hedge funds(3) 145 — 145 —
International equity(2)
Developed markets 1,435 1,418 17 —
Emerging markets 745 619 126 —
Fixed income securities
U.S. Government bonds or treasuries 750 750 — —
U.S. Agency securities 43 — 43 —
Corporate bonds
Investment grade bonds(4) 1,963 29 1,934 —
Non-investment grade bonds(4) 325 — 325 —
Emerging market debt 214 — 214 —
Sovereign debt 81 — 81 —
Fixed income hedge funds(3) 472 — 300 172
Real estate
Private real estate funds 125 — — 125
Public real estate securities 143 143 — —
Real estate hedge funds(3) 71 — 71 —
Other funds
Commodity 67 — 67 —
Currency 104 — 104 —
Private equity funds(5) 242 — — 242
Hedge funds(3) 293 — 293 —
Insurance contracts 22 — — 22
Payable for securities lending collateral(6) (233) — (233) —
Other(7) 87 21 — 66
Total $12,294 $6,966 $4,701 $627
(1) Cash and cash equivalents were predominantly held in a highly liquid short term investment fund. Fund investments at December 31, 2009 were
primarily short term direct treasury instruments, including treasuries, agencies, treasury backed commercial paper and treasury collateralized
overnight repurchase agreements. Included in the fund is excess cash in investment manager accounts. This cash is available for immediate use and
is used to fund daily operations and execute the investment policy. This amount is not considered to be part of the cash target allocation set forth
in the investment policy.
(2) U.S. and International equity securities primarily include investments across the capitalization spectrum of large, medium and small market
capitalization stocks.
99