Raytheon 2011 Annual Report Download - page 112

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
104
As of December 31, 2011 and December 31, 2010 all outstanding options were fully vested and exercisable. No options
vested during the years ended December 31, 2011 and December 31, 2010.
The following table summarizes information about stock options outstanding and exercisable at December 31, 2011:
(Share amounts in thousands)
Exercise Price Range
$27.29 to $31.45
$31.55 to $41.50
$43.24 to $44.45
Total
Options Outstanding and Exercisable
Shares
1,648
241
2,509
4,398
Weighted-
Average
Remaining
Contractual
Life (In
Years)
1.4
1.7
0.4
0.8
Weighted-
Average
Exercise
Price
$31.19
$35.42
$44.44
$38.98
Shares exercisable at the corresponding weighted-average exercise price at December 31, 2011, 2010 and 2009, were 4.4
million at $38.98, 6.5 million at $37.23 and 8.7 million at $35.28, respectively.
Note 14: Pension and Other Employee Benefits
We have pension plans covering the majority of our employees, including certain employees in foreign countries (Pension
Benefits). Our primary pension obligations relate to our domestic IRS qualified pension plans. We also provide certain health
care and life insurance benefits to retired employees and to eligible employees upon retirement through other postretirement
benefit plans (Other Benefits).
The fair value of plan assets for our domestic and foreign Pension Benefit plans was $14,931 million and $621 million at
December 31, 2011, respectively, and $14,502 million and $597 million at December 31, 2010, respectively.
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 $273 million, $275 million and $269 million in 2011,
2010 and 2009, respectively.
At December 31, 2011 and December 31, 2010, there was $11.0 billion and $11.2 billion invested in our defined contribution
plan, respectively. At December 31, 2011 and December 31, 2010, $1.1 billion of these amounts were invested in the Company
stock fund.
We also maintain additional contractual pension benefits agreements for certain of our executive officers. The liability
associated with such agreements was $35 million and $32 million at December 31, 2011 and December 31, 2010, respectively.
Contributions and Benefit Payments
We make required contributions and from time to time discretionary contributions to our pension plans. Required contributions
were primarily determined under the ERISA, as amended by the Pension Protection Act of 2006, and are affected by the actual
return on plan assets and plan funded status.
We made required contributions of $1,096 million, $1,184 million and $1,160 million in 2011, 2010 and 2009, respectively,
to our pension and other postretirement benefit plans. We expect to make required contributions of $1,162 million and $21
million to our pension and other postretirement benefit plans, respectively, in 2012. We made discretionary contributions of
$750 million in 2011 and 2010. We did not make any discretionary contributions in 2009. We periodically evaluate whether
to make additional discretionary contributions.