Raytheon 2011 Annual Report Download - page 74

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66
below, partially offset by $250 million of higher repurchases of common stock under our share repurchase programs and $678
million related to the repurchase of long-term debt described below.
Debt—In the fourth quarter of 2011, we received proceeds of $992 million for the issuance of $1.0 billion fixed rate long-
term debt.
In the fourth quarter of 2010, we received proceeds of $1,975 million for the issuance of $2.0 billion fixed rate long-term debt
and exercised our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $678 million of our long-term
debt due in 2012 and 2013 at a loss of $73 million pretax, $47 million after-tax, which is included in other (income) expense.
In the fourth quarter of 2009, we received proceeds of $496 million from the issuance of $500 million fixed-rate long-term
debt and exercised our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $474 million of our long-
term debt maturing in 2011 at a loss of $22 million pretax, $14 million after-tax, which is included in other (income) expense.
Stock Repurchases—Information on repurchases of our common stock under our share repurchase programs is as follows:
(In millions)
Amount of stock repurchased
Shares of stock repurchased
2011
$ 1,250
27.1
2010
$ 1,450
29.0
2009
$ 1,200
25.8
In March 2010, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding common
stock. In September 2011, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding
common stock. At December 31, 2011, we had approximately $2.2 billion remaining under these repurchase programs. Share
repurchases will take place from time to time at management’s discretion depending on market conditions.
In May 2010, our stockholders approved the Raytheon 2010 Stock Plan. Under the plan, we may grant restricted stock awards,
restricted stock units, stock grants, stock options and stock appreciation rights.
Cash Dividends—Our Board of Directors authorized the following cash dividends:
(In millions, except per share amounts)
Cash dividends per share
Total dividends paid
2011
$1.72
588
2010
$1.50
536
2009
$1.24
473
In March 2011, our Board of Directors authorized a 15% increase to our annual dividend payout rate from $1.50 to $1.72 per
share. In March 2010, our Board of Directors authorized a 21% increase in our annual dividend payout rate from $1.24 to
$1.50 per share. Dividends are subject to quarterly approval by our Board of Directors.
CAPITAL RESOURCES
Total debt was $4.6 billion at December 31, 2011, $3.6 billion at December 31, 2010 and $2.3 billion at December 31, 2009.
Our outstanding debt bears contractual interest at fixed interest rates ranging from 1.4% to 7.2% and matures at various dates
through 2041.
Cash and Cash Equivalents—Cash and cash equivalents were $4.0 billion and $3.6 billion at December 31, 2011 and
December 31, 2010, respectively. We invest cash in U.S. Treasuries; commercial paper of financial institutions and corporations
with a minimum long-term debt rating of AA- or Aa3 and minimum short-term debt rating of A-1 and P-1; AAA/Aaa rated
U.S. Treasury money market funds; and bank certificates of deposit and time deposits with a minimum long-term debt rating
of AA- or Aa3. Cash balances held at our foreign subsidiaries were approximately $450 million and $630 million at
December 31, 2011 and December 31, 2010, respectively. Earnings from our foreign subsidiaries are currently deemed to be
indefinitely reinvested. We do not expect such reinvestment to affect our liquidity and capital resources, and we continuously
evaluate our liquidity needs and ability to meet global cash requirements as a part of our overall capital deployment strategy.
Factors which affect our global capital deployment strategy include anticipated cash flows, the ability to repatriate cash in a
tax efficient manner, funding requirements for operations and investment activities, acquisitions and divestitures, and capital
market conditions.