Raytheon 2011 Annual Report Download - page 73

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We expect our property, plant and equipment and capitalized internal use software expenditures to be approximately $360
million and $95 million, respectively, in 2012, consistent with the anticipated needs of our business and for specific investments
including program capital assets and facility improvements.
Acquisitions—In pursuing our business strategies, we acquire and make investments in certain businesses that meet strategic
and financial criteria, and divest of certain non-core businesses, investments and assets when appropriate.
(In millions)
Payments for purchases of acquired companies, net of cash acquired
2011
$ 645
2010
$ 152
2009
$ 334
On January 31, 2011, we acquired Applied Signal Technology, Inc., subsequently renamed Raytheon Applied Signal
Technology, Inc. (RAST) for $500 million in cash, net of $25 million of cash and cash equivalents acquired, and exclusive
of retention and management incentive payments. RAST provides advanced intelligence, surveillance, and reconnaissance
(ISR) solutions to enhance global security. The acquisition is part of our strategy to extend and enhance our Space and Airborne
Systems (SAS) offerings related to certain classified and Department of Defense markets. In connection with this acquisition,
we recorded $387 million of goodwill, all of which was allocated to the Company's SAS segment, primarily related to expected
synergies from combining operations and the value of RAST's assembled workforce, and $89 million in intangible assets,
primarily related to contractual relationships, license agreements and trade names with a weighted average life of seven years.
Additionally, in 2011, we acquired Henggeler Computer Consultants Inc., Pikewerks Corporation and substantially all of the
assets of Ktech Corporation for an aggregate of $145 million in cash, net of cash acquired. The Henggeler Computer Consultant
Inc. and Pikewerks Corporation acquisitions enhance our cybersecurity and information assurance capabilities at Intelligence
and Information Systems (IIS). The Ktech Corporation acquisition is part of our strategy to extend and enhance our Missile
Systems (MS) offerings. In connection with these acquisitions, we have preliminarily recorded $112 million of goodwill,
primarily related to expected synergies from combining operations and the value of the existing workforce, and $26 million
of intangible assets, primarily related to customer relationships, trade names and technology with an initial estimated weighted-
average life of seven years. We expect to complete the purchase price allocation process for the Henggeler Computer Consultant
Inc. and Pikewerks Corporation acquisitions in the first quarter of 2012 when we receive final valuation results and complete
our review.
In 2010, we acquired Trusted Computer Solutions Inc., Technology Associates Inc. and substantially all of the assets of an
Australian company, Compucat Research Pty. Ltd, for an aggregate of $152 million in cash, net of cash acquired. These
acquisitions enhance our cybersecurity and information assurance capabilities. In connection with these acquisitions, we
recorded $125 million of goodwill, primarily related to expected synergies from combining operations and the value of the
existing workforce, and $28 million of intangible assets, primarily related to technology, trade names and customer relationships
with a weighted-average life of five years.
In 2009, we acquired BBN Technologies Corp. and related entities which enhances our advanced networking, speech and
language technologies, information technologies, sensor systems and cybersecurity, for $334 million in cash, net of $22 million
of cash acquired, exclusive of retention and management incentive payments. In connection with this acquisition, we recorded
$254 million of goodwill, primarily related to expected synergies from combining operations and the value of the workforce,
and $70 million in intangible assets, primarily related to technology, contractual backlog and trade name with a weighted-
average life of eight years.
Financing Activities
(In millions)
Net cash provided by (used in) financing activities
2011
$(694)
2010
$(411)
2009
$(1,650)
We have used cash provided by operating activities, and proceeds from the issuance of new debt in 2011 and 2010 as our
primary source for the repayment of debt, payment of dividends and the repurchase of our common stock. The change of $283
million in net cash provided by (used in) financing activities in 2011 compared to 2010 was primarily due to the lower net
proceeds from debt issuances and debt repayments in 2011 compared to 2010, and the lower level of warrants exercised in
2011 compared to 2010. The change of $1,239 million in net cash provided by (used in) financing activities in 2010 compared
to 2009 was primarily due to the issuance of $2.0 billion fixed rate long-term debt in the fourth quarter of 2010, as described