Raytheon 2012 Annual Report Download - page 29

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Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our profitability.
We are subject to income taxes in the United States and many foreign jurisdictions. Significant judgment is required in
determining our worldwide provision for income taxes. In the ordinary course of our business, there are many transactions
and calculations where the ultimate tax determination is uncertain. Furthermore, changes in domestic or foreign income tax
laws and regulations, or their interpretation, could result in higher or lower income tax rates assessed or changes in the taxability
of certain sales or the deductibility of certain expenses, thereby affecting our income tax expense and profitability. In addition,
we regularly are under audit by tax authorities. The final determination of tax audits and any related litigation could be
materially different from our historical income tax provisions and accruals. Additionally, changes in the geographic mix of
our sales could also impact our tax liabilities and affect our income tax expense and profitability.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We and our subsidiaries operate in a number of plants, laboratories, warehouses and office facilities in the U.S. and abroad.
As of December 31, 2012, we owned, leased and/or utilized (through operating agreements) approximately 29 million square
feet of floor space for manufacturing, engineering, research, administration, sales and warehousing, approximately 93% of
which was located in the U.S. Of such total, approximately 47% was owned (or held under a long-term ground lease with
ownership of the improvements), approximately 48% was leased, and approximately 5% was made available under facilities
contracts for use in the performance of U. S. Government contracts. Of the 29 million square feet of floor space owned, leased
and/or utilized by us, approximately 417,218 square feet was leased or subleased to unrelated third parties. In addition to the
29 million square feet, we owned or leased approximately 775,674 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 appropriate for our existing real
estate requirements.
As of December 31, 2012, our business segments had major operations at the following locations:
– Integrated Defense Systems—Huntsville, AL; San Diego, CA; Andover, MA; Billerica, MA; Sudbury, MA; Tewksbury,
MA; Woburn, MA; Maple Lawn, MD; 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—Huntsville, AL; 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; Cambridge, MA; Marlboro, 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; Sunnyvale, CA; Forest, MS; Dallas, TX; and McKinney
TX.
– Technical Services—Chula Vista, CA; Orlando, FL; Indianapolis, IN; Burlington, MA; Troy, MI; Dulles, VA; Norfolk,
VA; and Canberra, Australia.
– Corporate and Other—Billerica, MA; Waltham, MA; Garland, TX; Greenville, TX; Plano, TX; Arlington, VA; and Dulles,
VA .