Raytheon 2009 Annual Report Download - page 71

We retained certain assets and liabilities of these disposed businesses. At December 31, 2009 and 2008, we had $71
million in non-current assets primarily related to our subordinated retained interest in general aviation finance
receivables previously sold by Raytheon Aircraft. At December 31, 2009 and 2008, we had $57 million and $77 million,
respectively, primarily in current liabilities related to various contract obligations, certain environmental liabilities,
aircraft lease obligations, non-income tax obligations and certain product liabilities. We also have certain income tax
obligations relating to these disposed businesses, which we include in our income tax disclosures. The Internal Revenue
Service (IRS) concluded a federal excise tax audit and assessed us additional excise tax related to the treatment of certain
Flight Options customer fees and charges, which we have appealed. We continue to believe that an unfavorable outcome
is not probable and expect that any potential liability will not have a material adverse effect on our financial position,
results of operations or liquidity. We also retained certain U.K. pension assets and obligations for a limited number of
U.K. pension plan participants as part of the Raytheon Aircraft sale, which we include in our pension disclosures.
No interest expense was allocated to discontinued operations in 2009, 2008 and 2007 since there was no debt specifically
attributable to discontinued operations or required to be repaid with proceeds from the sales.
FINANCIAL CONDITION AND LIQUIDITY
Overview
We pursue a capital deployment strategy that balances funding for growing our business, including capital expenditures,
acquisitions and research and development; managing our balance sheet, including debt repayments and pension
contributions; and returning cash to our stockholders, including dividend payments and share repurchases, as outlined
below. Our need for, cost of and access to funds are dependent on future operating results, as well as other external
conditions. We currently expect that cash and cash equivalents, cash flow from operations and other available financing
resources will be sufficient to meet anticipated operating, capital expenditure, investment, debt service and other
financing requirements during the next twelve months and for the foreseeable future.
During 2009, certain significant cash flows, discussed in more detail below, were as follows:
ⳮ$1,200 million of stock repurchases;
ⳮ$1,160 million of required contributions to our pension and other postretirement benefit plans;
ⳮ$496 million in proceeds from the issuance of long-term debt, net of offering costs;
ⳮ$474 million of long-term debt repayments;
ⳮ$473 million in dividend payments;
ⳮ$347 million for payments for additions to property, plant and equipment and capitalized internal use software;
ⳮ$334 million for business acquisitions, net of cash acquired; and
ⳮ$208 million of net federal and foreign tax payments.
In addition, the following table highlights selected measures of our liquidity and capital resources as of December 31,
2009 and 2008:
(In millions) 2009 2008
Cash and cash equivalents $2,642 $2,259
Working capital 2,345 2,268
Amount available under our credit facilities 1,479 2,160
The increase of $77 million in working capital in 2009 compared to 2008 was primarily due to an increase in contracts in
process driven by the timing of payments, partially offset by federal tax refunds as discussed below.
As discussed further below, in 2009 we replaced our $2.2 billion credit facility with $1.5 billion in credit facilities.
Operating Activities
(In millions) 2009 2008 2007
Cash provided by operating activities from continuing operations $2,745 $2,036 $1,249
Cash provided by operating activities 2,725 2,015 1,198
57