Raytheon 2009 Annual Report Download - page 33

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an annual basis and is also tested whenever events and circumstances indicate that goodwill may be impaired. Any excess
goodwill resulting from the impairment test must be written off in the period of determination. Intangible assets (other
than goodwill) are generally amortized over the useful life of such assets. In addition, from time to time, we may acquire
or make an investment in a business which will require us to record goodwill based on the purchase price and the value of
the acquired assets. We may subsequently experience unforeseen issues with such business which adversely affect the
anticipated returns of the business or value of the intangible assets and trigger an evaluation of the recoverability of the
recorded goodwill and intangible assets for such business. Future determinations of significant write-offs of goodwill or
intangible assets as a result of an impairment test or any accelerated amortization of other intangible assets could have a
negative impact on our results of operations and financial condition.
The outcome of litigation in which we have been named as a defendant is unpredictable and an adverse decision in any
such matter could have a material adverse effect on our financial position or results of operations.
We are defendants in a number of litigation matters and are subject to various other claims, demands and investigations.
These matters may divert financial and management resources that would otherwise be used to benefit our operations.
No assurances can be given that the results of these matters will be favorable to us. An adverse resolution or outcome of
any of these lawsuits, claims, demands or investigations could have a negative impact on our financial condition, results
of operations and liquidity.
We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel
could seriously harm our business.
Due to the specialized nature of our business, our future performance is highly dependent upon the continued services of
our key engineering personnel and executive officers, the development of additional management personnel and the
hiring of new qualified engineering, manufacturing, marketing, sales and management personnel for our operations.
Competition for personnel is intense, and we may not be successful in attracting or retaining qualified personnel. In
addition, certain personnel may be required to receive security clearance and substantial training in order to work on
certain programs or perform certain tasks. The loss of key employees, our inability to attract new qualified employees or
adequately train employees, or the delay in hiring key personnel could seriously harm our business, results of operations
and financial condition.
Our business could be negatively impacted by security threats and other disruptions.
As a U.S. defense contractor, we face certain security threats, including threats to our information technology
infrastructure, attempts to gain access to our proprietary or classified information, and threats to physical security. These
types of events could disrupt our operations, require significant management attention and resources, and could
negatively impact our reputation among our customers and the public, which could have a negative impact on our
financial condition, results of operations and liquidity.
Some of our workforce is represented by labor unions so our business could be harmed in the event of a prolonged work
stoppage.
Approximately 5,600 of our employees are unionized, which represents approximately 7% of our employee-base at
December 31, 2009. As a result, we may experience work stoppages, which could adversely affect our business. We cannot
predict how stable our union relationships will be or whether we will be able to successfully negotiate successor
agreements without impacting our financial condition. In addition, the presence of unions may limit our flexibility in
dealing with our workforce. Work stoppages could negatively impact our ability to manufacture our products on a timely
basis, which could negatively impact our results of operations and financial condition.
We may be unable to adequately protect our intellectual property rights, which could affect our ability to compete.
We own many U.S. and foreign patents and patent applications, and have rights in unpatented know-how, data, software,
trademarks and copyrights. The U.S. Government has licenses under certain of our patents and certain other intellectual
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