Raytheon 2009 Annual Report Download - page 75

Certain of our foreign subsidiaries maintain revolving bank lines of credit to provide them with a limited amount of
short-term liquidity, including the $150 million Raytheon United Kingdom Limited sub-line discussed above. In
addition, other uncommitted bank lines totaled approximately $15 million and $10 million at December 31, 2009 and
2008, respectively. There were no amounts outstanding under these lines of credit at December 31, 2009 and
December 31, 2008. Compensating balance arrangements are not material.
Credit Ratings—Three major corporate debt rating organizations, Fitch Ratings (Fitch), Moody’s Investors Service
(Moody’s) and Standard & Poor’s (S&P), assign ratings to our short-term and long-term debt. The following chart
reflects the current ratings assigned by each of these agencies as of December 31, 2009 to our short-term debt and long-
term senior unsecured debt:
Short-Term Long-Term Senior Debt
Rating Agency Debt Rating Outlook Date of Last Action
Fitch F2 A- Stable September 2008
Moody’s P-2 Baa1 Stable March 2007
S&P A-2 A- Stable September 2008
In September 2008, Fitch upgraded our long-term senior unsecured debt rating from BBB+ to A- and S&P upgraded our
long-term senior unsecured debt rating from BBB+ to A-.
Shelf Registrations—The total capacity of our current shelf registration, filed with the SEC in October 2008, is $3.0 billion,
of which $500 million was used to issue the fixed-rate long-term debt in 2009, as discussed above and $450 million was
used for the registration of common stock issuable under certain outstanding warrants issued in 2006.
During the recent downturn in global financial markets, some companies have experienced difficulties accessing their
cash equivalents, trading investment securities, drawing on revolvers, issuing debt and raising capital generally, which
have had a material adverse impact on their liquidity. Given our current cash position, credit ratings, cash needs and debt
structure, along with the type of short-term investments we have made, we have not experienced any material issues and
we continue to expect that our current liquidity, notwithstanding recent market conditions, will be sufficient to meet all
our anticipated needs during the next twelve months and for the foreseeable future.
CONTRACTUAL OBLIGATIONS
The following is a schedule of our contractual obligations outstanding at December 31, 2009:
(In millions) Total
Less than
1 year
(2010)
1 - 3 years
(2011- 2012)
4 - 5 years
(2013- 2014)
After 5 years
(2015 and
thereafter)
Debt(1) $ 2,336 $ — $ 333 $345 $1,658
Interest payments 1,426 132 276 212 806
Operating leases 1,046 267 332 163 284
Purchase obligations 8,481 5,908 2,288 202 83
Total $13,289 $6,307 $3,229 $922 $2,831
(1) Debt includes scheduled principal payments only.
Purchase obligations in the table above represent enforceable and legally binding agreements with suppliers to purchase
goods or services. We enter into contracts with customers, primarily the U.S. Government, which entitles us to full
recourse for costs incurred, including purchase obligations, in the event the contract is terminated by the customer for
convenience. These purchase obligations are included above notwithstanding the amount for which we are entitled to full
recourse from our customers. The table above does not include required pension and other postretirement contributions,
which we expect to make in 2010 of $1.2 billion, exclusive of any U.S. Government recovery.
The ERISA funding requirements will be replaced by the requirements under the Pension Protection Act of 2006. Under
the Pension Protection Act, companies will be required to fully fund their pension plans over a seven-year period. For
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