Raytheon 2012 Annual Report Download - page 4

We also took advantage of attractive interest rates over the longer term by issuing $1.1
billion of 10-year debt at 2.5 percent, using the proceeds primarily to retire our 2014 and
2015 maturities. Our next debt maturity is not due until 2018. The company ended the
year with a strong balance sheet and net debt of $687 million.
As a technology and innovation leader, we continued our strategy of making acquisitions
that strengthen our capabilities and help us better meet customer needs. We acquired
SafeNet’s Government Solutions business, a world-class provider of encryption technol-
ogy that aligns well with Raytheon’s advanced strategic and tactical communications
capabilities. Additionally, our acquisition of Teligy, Inc. further extends our cybersecurity
offerings in wireless communications.
Global Technology and Innovation Leader
When we reflect on how far Raytheon has come since our founding, few in 1922 could
have envisioned the idea of doing things like intercepting a ballistic missile in space or
building radars powerful enough to essentially track a baseball hit out of Fenway Park in
Boston from the old diamond at Candlestick Park in San Francisco. These were once the
realm of science fiction, but no more: they are part of Raytheon’s rich heritage.
While our world has changed a lot since 1922, what remains steadfast is Raytheon’s
consistent focus on excellence in technology and innovation, and tackling some of our
customers’ hardest problems. It is what we are known for around the world, and why
our customers know they can count on us again and again for affordable and innovative
solutions. As a result, today we are seeing global demand for our capabilities in Missile
Defense, ISR (Intelligence, Surveillance and Reconnaissance), electronic warfare, cyber,
C3I (Command, Control, Communications and Intelligence) and training.
The exciting things we are doing today include continuing to break new ground with our
air and missile defense capabilities. Raytheon’s new-production Patriot Air and Missile
Defense system received the U.S. Army’s final stamp of approval in 2012 after undergo-
ing stringent testing, and we delivered the first upgraded Patriot radar for Kuwait. We
received $1.4 billion in Standard Missile-3 contract awards, and the U.S. Navy awarded
us a $313.8 million contract for low-rate initial production of Standard Missile-6 all-up
rounds. To meet this demand, we opened a new, state-of-the-art missile integration
facility in Huntsville, Ala., where we will complete final assembly and testing of SM-3
and SM-6 interceptors.
International
revenue was
26%
of our total 2012
revenue
2012
Safest year in
company history
Named one of
America’s most
COMMUNITY-
MINDED
companies
in The Civic 50
Our world has changed a lot since 1922.
What remains steadfast is Raytheon’s
consistent focus on excellence in technology
and innovation, and tackling some of our
customers’ hardest problems.
Our ISR capabilities provide customers with accurate, timely and actionable information
in many domains. In the air, our Advanced Targeting Forward Looking Infrared (ATFLIR)
pod surpassed more than one million hours of operational flight on the U.S. Navy’s F/A-18
Super Hornet aircraft. In space, Raytheon’s Visible Infrared Imager Radiometer Suite on
the Suomi NPP satellite has been providing meteorologists and climate scientists with out-
standing imagery for more precise forecasts and data, in addition to some truly stunning,
detailed images of Earth such as the “Blue Marble,” “White Marble” and “Black Marble.”