Raytheon 2011 Annual Report Download - page 72

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Tax Payments—In 2011, we received federal tax refunds totaling $128 million, including the refund relating to the 2011 Tax
Settlement, and made $553 million in federal and net foreign tax payments and $12 million in net state tax payments. In 2010,
we received federal tax refunds totaling $96 million and made $433 million in federal and net foreign tax payments and $54
million in net state tax payments. In 2009, we received federal tax refunds totaling $350 million and made $558 million in
federal and net foreign tax payments, net of $69 million of overpayment credits. In 2009, we received state tax refunds totaling
$23 million and made $45 million in state tax payments. Federal and foreign tax payments for 2012 are expected to approximate
$725 million.
Pension Plan Contributions—We make both required and discretionary contributions to our pension plans. Required
contributions are primarily determined under the ERISA rules and are affected by the actual return on plan assets and plan
funded status. We made the following required and discretionary contributions to our pension plans during the years ended
December 31:
(In millions)
Required contributions
Discretionary contributions
Total
2011
$ 1,078
750
$ 1,828
2010
$ 1,152
750
$ 1,902
2009
$ 1,115
—
$ 1,115
Required contributions in 2011, 2010 and 2009 were relatively consistent year to year. We expect to make required contributions
to our pension plans of approximately $1.2 billion in 2012. We periodically evaluate whether to make additional discretionary
contributions. On January 1, 2011, we became subject to the funding requirements under the Pension Protection Act of 2006
(PPA), which amended ERISA. Under the PPA, we are required to fully fund our pension plans over a rolling seven-year
period, as determined annually based upon the funded status at the beginning of each year. Additionally, the recognition of
pension costs for government contractors under the CAS rules was impacted by CAS Harmonization. As discussed on page
35, CAS Harmonization is expected to increase our future CAS recovery, primarily in 2014 and beyond, which would positively
impact our cash flows.
Other postretirement benefit payments were $18 million, $32 million and $45 million in 2011, 2010 and 2009, respectively.
We made interest payments of $167 million, $134 million and $147 million in 2011, 2010 and 2009, respectively. The increase
in interest payments in 2011 compared to 2010 was primarily due to interest payments on the 1.625% notes, 3.125% notes,
and 4.875% notes issued in the fourth quarter of 2010. The decrease in interest payments in 2010 compared to 2009 was
primarily due to the repurchase, in the fourth quarter of 2009, of our 4.85% notes due 2011.
Investing Activities
(In millions)
Net cash provided by (used in) investing activities
2011
$(1,051)
2010
$(535)
2009
$(692)
The change of $516 million in net cash provided by (used in) investing activities in 2011 compared to 2010 was primarily
due to the acquisition of Applied Signal Technology, Inc., as described below. The change of $157 million in net cash provided
by (used in) investing activities in 2010 compared to 2009 was primarily due to the acquisition of BBN Technologies Corp.
and related entities in the fourth quarter of 2009 in which we paid $334 million, net of cash acquired, offset by 2010 acquisitions
of $152 million, net of cash acquired, described below.
Additions to property plant and equipment and capitalized internal use software—Additions to property, plant and equipment
and capitalized internal use software were as follows:
(In millions)
Additions to property, plant and equipment
Additions to capitalized internal use software
2011
$ 340
97
2010
$ 319
67
2009
$ 280
67