Raytheon Corporation

Summary

Raytheon Company and its subsidiaries (Raytheon) designs, develops, manufactures, integrates, supports and provides a range of technologically advanced products, services and solutions for governmental and commercial customers in the United States and abroad.

The Company acts as a prime contractor or major subcontractor on numerous defense and related programs for the United States Government. The Company operates in seven principal business segments: Integrated Defense Systems (IDS); Intelligence and Information Systems (IIS); Missile Systems (MS); Network Centric Systems (NCS); Space and Airborne Systems (SAS); Technical Services (RTSC), and Aircraft. In July 2006, Raytheon acquired Virtual Technology Corporation, a developer of joint, net-enabled command and control and modeling and simulation solutions.

Integrated Defense Systems

IDS is engaged in mission systems integration, providing integrated air defense, maritime and joint battlespace solutions. IDS's international and domestic customer base includes the U.S. Missile Defense Agency (MDA) and the U.S. Armed Forces. IDS consists of business areas, which include Future Naval Capability; Integrated Air Defense (IAD); Missile Defense (MD); International Operations; Maritime Mission Systems (MMS), and Joint Battlespace Integration (JBI).

Future Naval Capability is primarily responsible for the Company's Detailed Design and Integration contract for the DD(X), the United States Navy's next generation, multi-mission naval destroyer. IAD provides air and missile defense (AMD) systems integration efforts within a joint integrated architecture enabling warfighters access to air, sea and ground-based sensors and communication systems, which link together weapons and battle management command and control in a seamless system of open architecture. MD provides mission system solutions for ballistic missile defense. MD's products include system integration, information management, sensor fusion, discrimination and sensor systems.

International Operations in coordination with the United States Government and United States Armed Forces, provides a range of capabilities across integrated air defense, missile defense, maritime and homeland security mission areas to foreign customers. MMS provides sensors to engage capabilities to United States and foreign navies. The MMS Undersea Systems business area includes various undersea sensors and mine countermeasure systems. JBI provides integrated capabilities in surveillance and maritime domain awareness, including maritime surveillance monitoring, situational awareness, knowledge management, information fusion and interoperability with a range of existing systems to detect, identify, track, fuse tracks and information, and disseminate actionable intelligence to appropriate responders.

Intelligence and Information Systems

IIS is a provider of systems, subsystems and software engineering services for national and tactical intelligence systems, as well as for homeland security and information technology (IT) solutions. Areas of concentration include processing, analysis and dissemination of signals and imagery, production of geospatial intelligence, command and control of airborne and space borne platforms, and integrated ground systems for weather and environmental programs. In addition, IIS delivers integrated solutions for government IT requirements and knowledge-driven homeland security solutions for customers worldwide. IIS customers include the United States Air Force and Navy, National Oceanic and Atmospheric Administration (NOAA), National Aeronautics and Space Administration (NASA), National Geospatial-Intelligence Agency (NGA), other federal, civilian and military customers and classified customers. IIS programs encompass a range of products from signal intelligence (SIGINT) sensors (used on platforms, such as the U-2 reconnaissance aircraft) to mission management systems (used to manage operation and data for platforms like the Global Hawk aircraft).

IIS consists of business areas, which include Strategic Imaging Systems (SIS); National Systems; Space Systems (SS); Operational Technologies and Solutions (OTS); Raytheon Information Solutions (RIS), and Tactical Intelligence Systems (TIS). SIS provides automated intelligence systems, information management and automated releasability dissemination systems; architecture design, development and integration; ground systems engineering support, operations/management, advanced data processing technology and algorithms, and multi-level security architecture and accreditation. National Systems business area provides systems and operational support for signals intelligence and multi-INT missions. SS provides satellite command and control software and provides mission and resource management, end-to-end information and network management, and modeling and simulation capabilities to its customers. Areas of concentration include: mission/resource management; real-time mission execution, signal processing and analysis; information management and knowledge discovery, and operations, maintenance and engineering (OM&E) support. SS also works with commercial customers as the ground systems integrator supporting satellites used to support hundreds of television channels to households around the world.

OTS provides information management systems, broadband broadcast systems and operations support through its capabilities, ranging from managing collection systems and large volumes of information securely, to providing operations support to customers at their respective sites. RIS provides IT solutions in technical computing, enterprise systems, e-Commerce and logistics management. TIS provides products and services relating to manned and unmanned SIGINT sensors, ground control of airborne SIGINT sensors, multi-INT ground systems, Unmanned Aerial Vehicle (UAV) ground stations and Intelligence, Surveillance and Reconnaissance (ISR) battle space management.

Missile Systems

MS is a missile manufacturer, developing and supporting a range of cutting edge solutions and products for the armed forces of the United States and other countries. MS consists of business areas, which include Naval Weapon Systems (NWS); Strike; Air-to-Air; Land Combat; Exoatmospheric Kill Vehicle (EKV), and Other MS business areas.

NWS provides defensive missiles and guided projectiles supporting the navies of over 30 countries. Strike business area provides products and services designed to enable United States Air Force and Navy customers to attack, suppress or destroy ground-based targets. Air-to-Air business area provides air-to-air missiles. Land Combat business area provides missiles to the United States Army and more than 25 United States allies. EKV business area focuses on producing the exoatmospheric kill vehicle, the intercept component of the Ground Based Interceptor (GBI) for the Ground Based Midcourse Defense (GMD) system. Other MS business areas include Kinetic Energy Interceptors, which focuses on designing and developing kinetic energy-based missiles that can intercept and destroy enemy ballistic missiles during their boost/ascent and mid-course phases of flight; Advanced Missile Defense, Directed Energy Weapons, which pursues opportunities in the missile defense and directed energy markets, including the development of new kill vehicles, NASA/space applications, discrimination, high-power microwave and high-energy laser systems, and Advanced Programs, which focuses on next generation technology, systems and solutions for a net-enabled battlespace to fill potential gaps in customers' capabilities.

Network Centric Systems

NCS develops and produces net-centric mission solutions for network sensors, command and control, communications and air traffic management, and homeland security. Customers include all branches of the United States Department of Defense (DoD), the Department of Homeland Security, the Federal Aviation Administration (FAA), other United States national security agencies, state and local governments and foreign customers. NCS consists of business areas, which include Integrated Communications Systems (ICS); Command and Control Systems (C2S); Combat Systems (CS); Precision Technologies and Components (PTC); Air Space Management and Homeland Security (AMHS); Thales-Raytheon Systems, LLC (TRS); Raytheon Systems Limited (RSL), and Raytheon Canada Limited (RCL).

ICS provides wireless, high-bandwidth and transformational communications solutions for its customers. C2S develops and provides integrated solutions, systems and supporting services. CS provides integrated ground-based surveillance and target engagement solutions. PTC provides precision optical and electronic solutions, electronic hardware and software products. AMHS provides integrated communications, navigation, surveillance and air traffic management system solutions for both civil and military customers. TRS is a joint venture between Thales Group and Raytheon. TRS combines the two companies' capabilities in Air Command and Control Systems (ACCS), Air Operations Centers and Battlefield Weapon Locating Radar and Military Air Surveillance Radar. RSL, Raytheon's United Kingdom subsidiary, designs, develops and manufactures a range of advanced systems for network-enabled operations, safety critical control functions and precision systems. RCL provides persistent surveillance radar for air traffic management systems.

Space and Airborne Systems

SAS designs and develops integrated systems and solutions for advanced missions, including unmanned aerial operations, electronic warfare, active electronically scanned array radars, airborne processors, weapon grade lasers, missile defense, and intelligence, surveillance and reconnaissance systems. SAS provides electro-optic/infrared sensors, airborne radars, solid-state high-energy lasers, precision guidance systems, electronic warfare systems, and space-qualified systems for civilian and military applications. SAS customers include the United States Navy, Air Force and Army, classified customers and commercial businesses. SAS consists business areas, which include Air Combat Avionics (ACA); Strategic Systems (SS); Precision Attack and Surveillance Systems (PASS); Integrated Airborne Systems (IAS); Electronic Warfare Systems (EWS); Advanced Products Center (APC); Advanced Concepts and Technologies (ACT), and Integrated Technology Programs (ITP).

ACA provides advanced fire control radar, processor solutions and technologies. SS provides space and space-qualified payloads for the intelligence, defense, and civil space communities. PASS provides maritime surveillance radars and electro-optical and infrared sensors for surveillance, reconnaissance and targeting mission support. IAS provides advanced intelligence, surveillance and reconnaissance (ISR) sensors and system solutions for multiple national and international customers and prime contractors. EWS provides aircraft/shipboard self-protection systems to counter threats and enhance survivability. APC provides high performance transmit/receive modules for multiple active array radars. ACT conducts internal research and development for SAS and contract research and development. ITP provides a range of product families and engineering services.

Technical Services

RTSC, headquartered in Reston, Virginia, provides technology solutions for defense, Federal government and commercial customers worldwide, specializing in mission support, counter-proliferation and counter-terrorism, customized engineering and manufacturing services and base and range operations. RTSC also provides logistics support to Raytheon products and systems in the field. RTSC customers include all branches of the United States Armed Forces, NASA, the U.S. National Science Foundation, other governmental agencies and foreign governments. RTSC consists business areas, including System and Product Support Solutions (SPSS); Logistics and Training Systems (LTS); Engineering & Production Support (EPS); Depot Operations (DO), and Polar Services.

SPSS also specializes in logistics systems engineering, as well as civil, logistics, reliability and maintenance and safety engineering. SPSS provides technical, installation, maintenance and site integration work on major command and control systems, including telecommunications upgrades. LTS provides logistics, supply chain management, training, classified and unclassified operations and maintenance support services. EPS offers a spectrum of engineering and limited-production services, including Capability Maturity Model Integration (CMMI) level 4 software engineering. DO operates repair and maintenance depots. Polar Services business area specializes in base and range services, providing science support, operations, IT and communications systems, logistics, and facilities engineering and construction services and support to the United States Antarctic Program (USAP).

Aircraft

Raytheon Aircraft Company (RAC) designs, develops, manufactures, markets and provides global support for business jets, turboprops and piston-powered aircraft for the world's commercial, fractional ownership and military aircraft markets. RAC markets its aircraft under its Beechcraft and Hawker brands. In 2005, RAC introduced six derivative aircraft models, including the Hawker 800Xpi, Beechcraft Premier IA, Beechcraft King Air C90GT, Beechcraft Bonanza G36, Beechcraft Baron G58 and an increased gross weight Beechcraft King Air 350.

RAC's jet line includes the Hawker 800Xpi midsize jet, the Hawker 400XP light jet, and the Beechcraft Premier IA entry level light jet. RAC's turboprop line includes the Beechcraft King Air 350, King Air B200 and King Air C90GT. RAC's piston powered aircraft line includes the twin engine Beechcraft Baron G58 and the single-engine Beechcraft Bonanza G36. In addition, the Beechcraft T-6A Texan II serves as the military trainer for the United States Air Force and United States Navy's Joint Primary Aircraft Training System (JPATS), as well as for certain foreign countries' air forces. RAC also markets, produces and supports a range of special mission aircraft for military and governments worldwide. RAC also operates a network of fixed-base operations (FBOs), providing business aviation services at airports throughout North America, the United Kingdom and Mexico. In addition, RAC provides and distributes spare parts through warehouses in Dallas, Texas and Liege, Belgium.

Other

The Other business segment consists of business areas, which include Flight Options LLC (FO); Raytheon Airline Aviation Services LLC (RAAS), and Raytheon Professional Services LLC (RPS). FO offers services in the fractional jet industry, including programs for ownership shares of new and used aircraft, aircraft leasing, and aircraft for certain time periods. RAAS manages the long-term wind-down of the Company's commuter aircraft business, which includes aircraft in inventory, leased aircraft and notes receivable for financed aircraft. RPS provides integrated learning solutions to commercial and government organizations worldwide.