Raytheon 2011 Annual Report Download - page 29

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In addition to the 29.4 million square feet, we had approximately 640,000 square feet of floor space that was vacant.
There are no major encumbrances on any of our facilities other than financing arrangements, which in the aggregate, are not
material. In the opinion of management, our properties have been well maintained, are suitable and adequate for us to operate
at present levels, and the productive capacity and extent of utilization of the facilities are adequate for the existing real estate
requirements of the Company.
As of December 31, 2011, our business segments had major operations at the following locations:
– Integrated Defense Systems—Huntsville, AL; San Diego, CA; Andover, MA; Billerica, MA; Maple Lawn, MD; Sudbury,
MA; Tewksbury, MA; Woburn, MA; Portsmouth, RI; Keyport, WA; and Kiel, Germany.
– Intelligence and Information Systems—Aurora, CO; Riverdale, MD; Omaha, NE; State College, PA; Garland, TX; Dulles,
VA; Reston, VA; and Springfield, VA.
– Missile Systems—East Camden, AR; Tucson, AZ; Rancho Cucamonga, CA; Louisville, KY; Albuquerque, NM; and
Farmington, NM.
– Network Centric Systems—Fullerton, CA; Goleta, CA; Largo, FL; Ft. Wayne, IN; Marlboro, MA; Cambridge, MA;
Dallas, TX; McKinney, TX; Plano, TX; Richardson, TX; Midland, Ontario, Canada; Waterloo, Ontario, Canada;
Harlow, England; Malaga, Spain; and Glenrothes, Scotland.
– Space and Airborne Systems—El Segundo, CA; Goleta, CA; Forest, MS; Dallas, TX; McKinney TX; and Sunnyvale,
CA.
– Technical Services—Chula Vista, CA; Orlando, FL; Indianapolis, IN; Burlington, MA; Troy, MI; Dulles, VA; Norfolk,
VA; Canberra, Australia; and Christchurch, New Zealand.
– Corporate—Billerica, MA; Waltham, MA; Garland, TX; Plano, TX; Arlington, VA; and Dulles, VA.
A summary of the space owned, leased and/or utilized by us as of December 31, 2011, by business segment is as follows:
Integrated Defense Systems
Intelligence and Information Systems
Missile Systems
Network Centric Systems
Space and Airborne Systems
Technical Services
Corporate
Totals
Leased
1,400,293
2,296,462
2,719,067
2,191,510
2,558,004
2,531,224
567,756
14,264,316
Owned(1)
3,929,461
783,877
1,166,901
3,381,421
3,723,713
215,183
402,494
13,603,050
Government
Owned(2)
109,566
—
1,246,237
—
—
207,804
—
1,563,607
Total(3)
5,439,320
3,080,339
5,132,205
5,572,931
6,281,717
2,954,211
970,250
29,430,973
(1) Ownership may include either fee ownership of land and improvements or a long-term land lease with ownership of improvements.
(2) “Government Owned” means space owned by the U.S. or a foreign government utilized by the Company pursuant to an operating agreement with the
U.S. or a foreign government (GOCO).
(3) Excludes approximately 639,661 square feet of vacant space, and includes 399,834 square feet of space leased or subleased to unrelated third parties.
ITEM 3. LEGAL PROCEEDINGS
We primarily engage in providing products and services under contracts with the U.S. Government and, to a lesser degree,
under direct foreign sales contracts, some of which the U.S. Government funds. These contracts are subject to extensive legal
and regulatory requirements and, from time to time, agencies of the U.S. Government investigate whether our operations are
being conducted in accordance with these requirements. U.S. Government investigations of us, whether relating to these
contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments,
fines or penalties being imposed upon us, the suspension of government export licenses or the suspension or debarment from
future U.S. Government contracting. U.S. Government investigations often take years to complete and many result in no
adverse action against us. Government contractors are also subject to many levels of audit and investigation. Agencies that
oversee contract performance include: the Defense Contract Audit Agency, the Defense Contract Management Agency, the
Inspector General of the Department of Defense and other departments and agencies, the Government Accountability Office,
the Department of Justice (DoJ) and Congressional Committees. The DoJ, from time to time, has convened grand juries to
investigate possible irregularities by us. We also provide products and services to customers outside of the U.S. and those
sales are subject to local government laws, regulations and procurement policies and practices. Our compliance with such