Raytheon 2012 Annual Report Download - page 79

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Credit Ratings—Three major corporate debt rating organizations, Fitch Ratings (Fitch), Moody’s Investors Service (Moody’s)
and Standard & Poor’s (S&P), assign ratings to our short-term and long-term debt. The following chart reflects the current
ratings assigned by each of these agencies as of December 31, 2012 to our short and long-term senior unsecured debt:
Short-Term Long-Term Senior
Rating Agency Debt Rating Debt Rating Outlook Date of Last Action
Fitch F2 A- Stable September 2008
Moody’s P-2 A3 Stable October 2011
S&P A-2 A- Stable September 2008
Shelf Registrations—We have an effective shelf registration with the SEC, filed in January 2013, which covers the registration
of debt securities, common stock, preferred stock and warrants.
CONTRACTUAL OBLIGATIONS
The following is a schedule of our contractual obligations outstanding at December 31, 2012:
Payment due by period
(In millions) Total
Less than
1 year
(2013)
1–3 years
(2014–2015)
3–5 years
(2016–2017)
After 5 years
(2018 and
thereafter)
Debt(1) $ 4,783 $ — $ — $ — $ 4,783
Interest payments 2,932 209 418 418 1,887
Operating leases 962 206 307 184 265
Purchase obligations 7,650 5,985 1,332 244 89
Total $16,327 $ 6,400 $ 2,057 $ 846 $ 7,024
(1) Debt includes scheduled principal payments only.
Purchase obligations in the table above represent enforceable and legally binding agreements with suppliers to purchase goods
or services. We enter into contracts with customers, primarily the U.S. Government, which entitle us to full recourse for costs
incurred, including purchase obligations, in the event the contract is terminated by the customer for convenience. These
purchase obligations are included above notwithstanding the amount for which we are entitled to full recourse from our
customers. The table above does not include required pension and other postretirement benefit contributions. We expect to
make required pension and other postretirement benefit contributions of approximately $800 million in 2013, exclusive of
any U.S. Government recovery. Amounts beyond 2012 for required pension and other postretirement benefit contributions
depend upon actuarial assumptions, actual plan asset performance and other factors described under pension costs in Critical
Accounting Estimates beginning on page 34. However, based solely on our current assumptions, we expect our funding
requirements to be approximately $1 billion in 2014, exclusive of any U.S. Government recovery, and slowly decreasing
thereafter.
Interest payments include interest on debt that is redeemable at our option.
As of December 31, 2012 and December 31, 2011, the total amount of unrecognized tax benefits for uncertain tax positions
and the accrual for the related interest, net of the federal benefit, was $141 million and $178 million, respectively, and was
included in accrued retiree benefits and other long-term liabilities. These amounts were not included in the table above because
we are unable to make a reasonably reliable estimate of when a cash settlement, if any, will occur with a tax authority as the
timing of examinations and ultimate resolutions of those examinations is uncertain.
OFF-BALANCE SHEET ARRANGEMENTS
At December 31, 2012, we had no significant off-balance sheet arrangements other than operating leases and guarantees to
third parties on behalf of our affiliates as described below in Commitments and Contingencies. Such arrangements are not
material to our overall liquidity or capital resources, market risk support or credit risk support as described below.