Raytheon 2009 Annual Report Download - page 73

Additions to property plant and equipment and capitalized internal use software—Information on our additions to
property, plant and equipment were as follows:
(In millions) 2009 2008 2007
Additions to property, plant and equipment $280 $304 $313
Additions to capitalized internal use software 67 74 85
We expect our capital and internal use software expenditures to be approximately $410 million and $140 million,
respectively, in 2010, consistent with the anticipated growth of our business and for specific investments including
program capital assets and facility improvements.
In pursuing our business strategies, we acquire and make investments in certain businesses that meet strategic and
financial criteria, and divest of certain non-core businesses, investments and assets when appropriate.
Acquisitions—In October 2009, we acquired BBN which enhances our advanced networking, speech and language
technologies, information technologies, sensor systems and cybersecurity, for $334 million in cash, net of $22 million of
cash acquired, exclusive of retention and management incentive payments. In 2008, we acquired Telemus Solutions, Inc.
and SI Government Solutions, which enhance our cybersecurity capabilities, for an aggregate of $52 million in cash. In
2007, we acquired Oakley Networks, Inc., which enhanced our cybersecurity capabilities, and the robotics technologies
and capabilities of Sarcos for an aggregate of $211 million, exclusive of retention and management incentive payments for
future services.
Divestitures—In 2007, we received pretax net proceeds of $3,143 million related to our sales of Raytheon Aircraft and
Flight Options.
Financing Activities
(In millions) 2009 2008 2007
Net cash used in financing activities $(1,650) $(1,994) $(3,510)
We have used cash provided by operating activities, proceeds from the sale of Raytheon Aircraft in 2007 and proceeds
from the issuance of new debt in 2009 as our primary source for the repayment of debt, payment of dividends and the
repurchase of our common stock. The decrease of $344 million in net cash used in financing activities in 2009 compared
to 2008 was primarily due to $500 million of lower repurchases of common stock under our share repurchase program,
partially offset by a $112 million reduction in activity under common stock plans due to lower stock option exercises, as
further discussed below.
Debt—In the fourth quarter of 2009, we received proceeds of $496 million from the issuance of $500 million fixed-rate
long-term debt and exercised our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $474
million of our long-term debt maturing in 2011 at a loss of $22 million pretax, which is included in other expense, net.
We made no debt repayments in 2008 compared to $1,724 million in 2007. Our 2007 debt repayments consisted of the
retirement of $685 million of current maturities and the exercise of our call rights to repurchase, at prices based on fixed
spreads to U.S. Treasuries, $1,039 million of our long-term debt maturing between 2008-2010 at a loss of $59 million
pretax, which is included in other expense, net. Our next principal payment of debt of $333 million is due in 2012.
Stock Repurchases—Information on our repurchases of our common stock under our share repurchase programs was as
follows:
(In millions) 2009 2008 2007
Amount of stock repurchased $1,200 $1,700 $1,642
Shares of stock repurchased 25.8 30.7 28.7
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