Raytheon 2011 Annual Report Download - page 16

8
works with DTRA on international counter proliferation and counterterrorism programs in the former Soviet Union. In addition,
MSO supports NASA's Neutral Buoyancy Lab (NBL) and Space Vehicle Mockup Facility at the Johnson Space Center and
has entered into a strategic partnership in support of NASA for commercializing the use of the NBL for safety training in
industries such as oil and gas.
Customized Engineering & Depot Support (CEDS)—CEDS provides a broad spectrum of engineering and limited-production
services, including Capability Maturity Model Integration for Development (CMMI-DEV®) Maturity Level 3 capability for
all engineering functions. CEDS also provides full life-cycle support for air, sea and land-based electronics and weapons. For
the V-22 Osprey aircraft program, CEDS manages the Systems Integration Lab, leads the software support activity, performs
updates to operational flight program software and provides mission planning software and training devices. CEDS also
provides integration and field support for a variety of podded aircraft systems, including the Shared Reconnaissance Pod,
which enables real-time, high-resolution imaging for F/A-18E/F air crews and air operation commanders. CEDS provides
upgrades and integration services to a number of air platforms, including the A-10, the HH-60, the B-52 and the F-16, and
ground-based platforms, including radars and tanks. CEDS is working with the U.S. Air Force and Air National Guard on the
Helmet Mounted Integrated Targeting (HMIT) system for pilots to enhance situational awareness that will be fully compatible
with U.S. military-standard airborne night vision systems. CEDS extends its Mission Support to Canada's military across
numerous platforms, including the Phalanx Close-In Weapon System, the SPS-49 Air Defense Radar and the APG-73 Radar.
Raytheon Professional Services (RPS)—RPS designs, implements and manages highly complex training solutions that align
an organization's training requirements with its core business needs. Using systems engineering practices, RPS applies
commercial solutions, processes, tools and training experts to make its training programs available anytime, anywhere. This
enables RPS clients to scale competencies and resources to meet the geographic, cultural and regulatory demands of their
distributed enterprise. RPS helps leading companies in numerous industries and countries rethink the way training is delivered
internally. RPS is a provider of apprenticeship training programs to the U.K. government and has renewed training support
programs with customers in the automotive industry including its key customer General Motors.
Raytheon Polar Services—Raytheon Polar Services is the prime operations and logistics contractor to the National Science
Foundation to support scientific research and maintain a geopolitical presence in Antarctica. It provides core business
applications, information security processes and oversight in accordance with stringent federal guidelines.
International Subsidiaries—We conduct the operations and activities of our business segments in certain countries through
international subsidiaries, including Raytheon Systems Limited (RSL) for the United Kingdom (U.K.), Raytheon Australia
and Raytheon Canada Limited (RCL). RSL designs, develops and manufactures advanced systems for network-enabled
operations, safety-critical control functions and precision systems for the U.K. Ministry of Defence and commercial air traffic
control organizations. Programs include the Airborne Standoff Radar (ASTOR), a world-class ground surveillance capability
(with SAS), and the Joint Effects Tactical Targeting System (JETTS) (with NCS). Raytheon Australia is a Mission Support
and mission systems integration provider to the Australian Government. Programs include the Air Warfare Destroyer contract
to design, develop and procure the combat system for the new Hobart Class destroyers (with IDS). Raytheon Australia also
manages the entire operations and maintenance requirements of the Canberra Deep Space Communication Complex and
provides design, integration and lifecycle operations and maintenance services for the Royal Australian Defense Force’s
aerospace capability (with TS). RCL provides persistent surveillance radar for air traffic management systems (primarily with
NCS).
Sales to the U.S. Government
Our total net sales to the U.S. Government, excluding foreign military sales, were $18.4 billion in 2011, $19.0 billion in 2010
and $19.2 billion in 2009, representing 74%, 76% and 77% of total net sales in 2011, 2010 and 2009, respectively. Foreign
military sales through the U.S. Government were $3.0 billion, $3.3 billion and $2.8 billion in 2011, 2010 and 2009, respectively.
Our principal U.S. Government customer is the DoD; other U.S. Government customers include Intelligence Community
agencies, the Departments of Homeland Security, Justice, State and Energy, NASA and the FAA.
U.S. Government Contracts and Regulation
We act as a prime contractor or major subcontractor for numerous U.S. Government programs. As a result, we are subject to
extensive regulations and requirements of the U.S. Government agencies and entities that govern these programs, including
with respect to the award, administration and performance of contracts under such programs. We are also subject to certain
unique business risks associated with U.S. Government program funding and appropriations and government contracts, and
with supplying technologically-advanced, cutting edge defense-related products and services to the U.S. Government.