Raytheon 2014 Annual Report Download - page 30

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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, 2014 we owned, leased and/or utilized (through operating agreements) approximately 28.3 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 the total, approximately 50% was owned (or held under a long-term ground lease with
ownership of the improvements), approximately 45% was leased, and approximately 5% was Government owned. In addition
to the 28.3 million square feet of floor space described above, approximately 317,896 square feet of space was leased or
subleased by us to unrelated third parties.
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, 2014, our business segments had major operations at the following locations:
– Integrated Defense Systems—Huntsville, AL; Fullerton, CA; San Diego, CA; Andover, MA; Billerica, MA; Marlboro,
MA; Sudbury, MA; Tewksbury, MA; Woburn, MA; Maple Lawn, MD; Portsmouth, RI; Keyport, WA; Waterloo, Canada;
and Kiel, Germany.
– Intelligence, Information and Services—Chula Vista, CA; Aurora, CO; Orlando, FL; Indianapolis, IN; Burlington, MA;
Riverdale, MD; Troy, MI; Omaha, NE; State College, PA; Garland, TX; Dulles, VA; Norfolk, VA; and Springfield, VA.
– Missile Systems—Huntsville, AL; East Camden, AR; Tucson, AZ; Rancho Cucamonga, CA; Louisville, KY; Albuquerque,
NM; Farmington, NM; Dallas, TX; Richardson, TX; Midland, Canada; Harlow, United Kingdom; Glenrothes, Scotland;
and Malaga, Spain.
– Space and Airborne Systems—El Segundo, CA; Goleta, CA; Sunnyvale, CA; Largo, FL; Fort Wayne, IN; Cambridge,
MA; Forest, MS; Dallas, TX; and McKinney, TX.
– Corporate and Other—Billerica, MA; Waltham, MA; Garland, TX; Greenville, TX; Plano, TX; Arlington, VA; and Dulles,
VA.
A summary of the space owned, leased and/or utilized by us as of December 31, 2014, by business segment is as follows:
(In square feet) Leased Owned(1) Government Owned(2) Total(3)
Integrated Defense Systems 1,450,129 4,610,526 130,018 6,190,673
Intelligence, Information and Services 4,792,545 1,018,896 208,110 6,019,551
Missile Systems 2,460,401 2,743,435 1,225,573 6,429,409
Space and Airborne Systems 3,289,665 5,327,205 — 8,616,870
Corporate and Other(4) 645,557 368,781 859 1,015,197
Total square feet 12,638,297 14,068,843 1,564,560 28,271,700
(1) Ownership may include either fee ownership of land and improvements or a long-term ground lease with ownership of improvements.
(2) “Government Owned” means space owned by the U.S. or a foreign government utilized by us pursuant to an operating agreement with the U.S. or a
foreign government.
(3) Includes approximately 749,271 square feet of vacant space, but excludes approximately 317,896 square feet of space leased or subleased to unrelated
third parties.
(4) Includes business development, discontinued operations and Raytheon International, Inc.
ITEM 3. LEGAL PROCEEDINGS
We primarily engage in providing products and services under contracts with the U.S. Government and, to a lesser degree,
under direct foreign sales contracts, some of which the U.S. Government funds. As a U.S. Government contractor, we are
subject to many levels of audit and investigation by the U.S. Government relating to our contract performance and compliance