Raytheon 2010 Annual Report Download - page 70

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, $14 million after-tax, which is included in other
(income) expense. We made no debt repayments in 2008.
Stock Repurchases—Information on repurchases of our common stock under our share repurchase programs was as
follows:
(In millions) 2010 2009 2008
Amount of stock repurchased $1,450 $1,200 $1,700
Shares of stock repurchased 29.0 25.8 30.7
In March 2010, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding
common stock. At December 31, 2010, we had approximately $1.4 billion remaining under this repurchase program. All
previous repurchase programs had been completed as of December 31, 2010. Share repurchases will take place from time
to time at management’s discretion depending on market conditions.
In May 2010, our stockholders approved the Raytheon 2010 Stock Plan (the “Plan”). Under the Plan, we may grant
restricted stock awards, restricted stock units, stock grants, stock options and stock appreciation rights.
Cash Dividends—Our Board of Directors authorized the following cash dividends:
(In millions, except per share amounts) 2010 2009 2008
Cash dividends per share $1.50 $1.24 $1.12
Total dividends paid 536 473 460
In March 2010, our Board of Directors authorized a 21% increase to our annual dividend payout rate from $1.24 to $1.50
per share. In March 2009, our Board of Directors authorized an 11% increase in our annual dividend payout rate from
$1.12 to $1.24 per share. Dividends are subject to quarterly approval by our Board of Directors.
CAPITAL RESOURCES
Total debt was $3.6 billion at December 31, 2010 and $2.3 billion at December 31, 2009 and 2008. Our outstanding debt
bears contractual interest at fixed interest rates ranging from 1.6% to 7.2% and matures at various dates through 2040.
Cash and Cash Equivalents—Cash and cash equivalents were $3.6 billion and $2.6 billion at December 31, 2010 and
December 31, 2009, respectively. We invest cash in U.S. Treasuries; commercial paper of financial institutions and
corporations with a minimum long-term debt rating of AA- or Aa3 and minimum short-term debt rating of A-1 and P-1;
AAA/Aaa rated U.S. Treasury money market funds; and bank certificates of deposit and time deposits with a minimum
long-term debt rating of AA- or Aa3. Cash balances held at our foreign subsidiaries were approximately 15% of our total
cash balance at December 31, 2010 and December 31, 2009, and are deemed to be indefinitely reinvested.
Credit Facilities—In November 2010, we entered into a $500 million revolving credit facility maturing in 2012, replacing
the previous $500 million 364-day facility, which matured in November 2010. Under the facility we can borrow and
backstop commercial paper.
We have a $1.0 billion facility maturing in November 2012, $150 million of which is available to Raytheon United
Kingdom Limited, our U.K. subsidiary. Under the facility we can borrow, issue letters of credit and backstop commercial
paper.
Borrowings under these facilities bear interest at various rate options, including LIBOR plus a margin based on our credit
default swap spread, with minimum and maximum margins that are adjusted for our credit ratings. Based on our credit
ratings at December 31, 2010 borrowings under the $1.0 billion and $500 million facilities would bear interest at LIBOR
plus 100 basis points and 75 basis points, respectively, the minimum margin. The credit facilities are comprised of
commitments from approximately 25 separate highly rated lenders, each committing no more than 10% of the aggregate
of the facilities. As of December 31, 2010 and December 31, 2009, there were no borrowings outstanding under these
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