Raytheon 2010 Annual Report Download - page 107

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
We maintain a defined contribution plan that includes a 401(k) plan. 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 401(k) 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 $275 million, $269 million and $238
million in 2010, 2009 and 2008, respectively.
At December 31, 2010 and December 31, 2009, there was $11.2 billion and $10.3 billion invested in our defined
contribution plan, respectively. At December 31, 2010 and December 31, 2009, $1.1 billion and $1.4 billion of this was
invested in the Company stock fund, respectively.
We also maintain additional contractual pension benefits agreements for certain of our executive officers. The liability
was $32 million and $31 million at December 31, 2010 and December 31, 2009, respectively.
Contributions and Benefit Payments
We make both discretionary and required contributions to our pension plans. Required contributions were primarily
determined under the ERISA and are affected by the actual return on plan assets and plan funded status through
December 31, 2010.
We made required contributions of $1,183 million, $1,160 million and $542 million in 2010, 2009 and 2008, respectively,
to our pension and other postretirement benefit plans. We expect to make required contributions of $1,073 million and
$21 million to our pension and other postretirement benefit plans, respectively, in 2011. We made discretionary
contributions of $750 million in 2010 and $660 million in 2008. We did not make any discretionary contributions in
2009. 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
Benefit payments reflect our portion only.
(In millions)
Pension
Benefits
Other
Benefits
2011 $1,163 $ 64
2012 1,152 63
2013 1,200 63
2014 1,234 63
2015 1,262 63
Thereafter 7,141 308
Defined-Benefit Retirement Plan Summary Financial Information
The tables below outline the components of net periodic benefit cost and related actuarial assumptions of our domestic
and foreign Pension Benefits and Other Benefits plans.
Components of Net Periodic Benefit Cost Pension Benefits
(In millions) 2010 2009 2008
Service cost $ 442 $ 401 $ 396
Interest cost 1,058 1,031 1,013
Expected return on plan assets (1,215) (1,221) (1,213)
Amounts reflected in net funded status 285 211 196
Amortization of prior service credit 13 13 14
Recognized net actuarial loss 596 422 313
Loss due to curtailments/settlements 2—1
Amounts reclassified during the year 611 435 328
Net periodic benefit cost $ 896 $ 646 $ 524
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