Raytheon 2009 Annual Report Download - page 119

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
contributions are made, a funding credit is accumulated which can be used to offset future calculated required
contributions. The funding credit for our pension plans was $2.6 billion at December 31, 2009 and $2.4 billion at
December 31, 2008. We did not make any discretionary contributions in 2009, and made discretionary contributions of
$660 million and $900 million in 2008 and 2007, respectively. We made required contributions of $1,160 million, $542
million and $459 million in 2009, 2008 and 2007, respectively to our pension and other postretirement benefit plans. We
expect to make required contributions of approximately $1,140 million and $30 million to our pension and
postretirement benefit plans, respectively, in 2010. We will continue to periodically evaluate whether to make additional
discretionary contributions.
The table below reflects the total Pension Benefits expected to be paid from the plans or from our assets, including both
our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. Other
Benefits payments reflect our portion only.
(In millions)
Pension
Benefits
Other
Benefits
2010 $1,191 $ 69
2011 1,130 70
2012 1,114 69
2013 1,140 69
2014 1,166 70
Thereafter 6,721 351
We also maintain additional contractual pension benefits agreements for certain of our executive officers. The liability
was $31 million and $29 million at December 31, 2009 and 2008, respectively.
We maintain a defined contribution plan that includes a 401(k) plan and an employee stock ownership plan (ESOP).
Covered employees hired or rehired after January 1, 2007, are eligible for a Company contribution based on age and
service, instead of participating in our pension plans. These and other covered employees are eligible to contribute up to a
specific percentage of their pay to the plan. The Company matches the employee’s contribution, generally up to 3% or
4% of the employee’s pay, which is invested in the same way as employee contributions. Total expense for the Company
match was $269 million, $238 million and $230 million in 2009, 2008 and 2007, respectively.
At December 31, 2009, there was $10.3 billion invested in our defined contribution plan. At December 31, 2009, $1.4
billion of this was invested in the Company stock fund.
Note 15: Income Taxes
The provision for federal and foreign income taxes consisted of the following:
(In millions) 2009 2008 2007
Current income tax expense
Federal $669 $206 $317
Foreign 15 44 32
Deferred income tax expense
Federal 257 568 178
Foreign 12 65
Total $953 $824 $532
105