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SECURITIES AND EXCHANGE COMMISSION

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PART IFINANCIAL INFORMATION
Item 1.Consolidated Financial Statements
Consolidated Balance Sheets (Unaudited) at October 1, 2017 and December 31, 20164
Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended October 1, 2017 and October 2, 20165
Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended October 1, 2017 and October 2, 20166
Consolidated Statements of Equity (Unaudited) for the Nine Months Ended October 1, 2017 and October 2, 20167
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended October 1, 2017 and October 2, 20168
Notes to Consolidated Financial Statements (Unaudited)9
Report of Independent Registered Public Accounting Firm33
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations34
Item 3.Quantitative and Qualitative Disclosures About Market Risk61
Item 4.Controls and Procedures62
PART IIOTHER INFORMATION
Item 1.Legal Proceedings63
Item 1A.Risk Factors63
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds63
Item 6.Exhibits64
Signatures65
(In millions, except per share amounts)Oct 1, 2017Dec 31, 2016
Assets
Current assets
Cash and cash equivalents$2,311
$3,303
Short-term investments
100
Receivables, net1,393
1,163
Contract assets5,892
5,041
Inventories693
608
Prepaid expenses and other current assets489
670
Total current assets10,778
10,885
Property, plant and equipment, net2,248
2,166
Goodwill14,878
14,788
Other assets, net2,374
2,399
Total assets$30,278
$30,238
Liabilities, Redeemable Noncontrolling Interest and Equity
Current liabilities
Commercial paper$300
$
Contract liabilities2,519
2,646
Accounts payable1,347
1,520
Accrued employee compensation1,165
1,234
Other current liabilities1,161
1,139
Total current liabilities6,492
6,539
Accrued retiree benefits and other long-term liabilities7,791
7,758
Long-term debt4,749
5,335
Commitments and contingencies (Note 10)


Redeemable noncontrolling interest (Note 8)389
449
Equity
Raytheon Company stockholders’ equity
Common stock, par value, $0.01 per share, 1,450 shares authorized, 289 and 293 shares outstanding at October 1, 2017 and December 31, 2016, respectively3
3
Additional paid-in capital

Accumulated other comprehensive loss(7,075)(7,411)
Retained earnings17,929
17,565
Total Raytheon Company stockholders’ equity10,857
10,157
Noncontrolling interests in subsidiaries

Total equity10,857
10,157
Total liabilities, redeemable noncontrolling interest and equity$30,278
$30,238
Three Months EndedNine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Net sales
Products$5,305
$5,061
$15,656
$14,990
Services979
953
2,909
2,855
Total net sales6,284
6,014
18,565
17,845
Operating expenses
Cost of sales—products3,872
3,705
11,531
10,948
Cost of sales—services818
769
2,374
2,329
General and administrative expenses736
710
2,212
2,153
Total operating expenses5,426
5,184
16,117
15,430
Operating income858
830
2,448
2,415
Non-operating (income) expense, net
Interest expense48
58
157
174
Interest income(4)(4)(14)(12)
Other (income) expense, net(2)(4)26
(7)
Total non-operating (income) expense, net42
50
169
155
Income from continuing operations before taxes816
780
2,279
2,260
Federal and foreign income taxes248
239
667
601
Income from continuing operations568
541
1,612
1,659
Income (loss) from discontinued operations, net of tax(1)1
2
1
Net income567
542
1,614
1,660
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries(5)(2)(17)(29)
Net income attributable to Raytheon Company$572
$544
$1,631
$1,689
Basic earnings per share attributable to Raytheon Company common stockholders:
Income from continuing operations$1.97
$1.84
$5.59
$5.68
Income (loss) from discontinued operations, net of tax

0.01

Net income1.97
1.84
5.60
5.68
Diluted earnings per share attributable to Raytheon Company common stockholders:
Income from continuing operations$1.97
$1.84
$5.59
$5.67
Income (loss) from discontinued operations, net of tax

0.01

Net income1.97
1.84
5.60
5.68
Amounts attributable to Raytheon Company common stockholders:
Income from continuing operations$573
$543
$1,629
$1,688
Income (loss) from discontinued operations, net of tax(1)1
2
1
Net income$572
$544
$1,631
$1,689
Dividends declared per share$0.7975
$0.7325
$2.3925
$2.1975
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
Net income$567
$542
$1,614
$1,660
Other comprehensive income (loss), before tax:
Pension and other postretirement benefit plans, net:
Net loss arising during period(497)(174)(497)(174)
Amortization of prior service cost included in net periodic cost1

3
2
Amortization of net actuarial loss included in net income327
267
890
758
Loss due to settlements
1

4
Pension and other postretirement benefit plans, net(169)94
396
590
Foreign exchange translation27
(32)71
(78)
Cash flow hedges3
8
11
16
Unrealized gains on investments and other, net
13

15
Other comprehensive income (loss), before tax(139)83
478
543
Income tax benefit (expense) related to items of other comprehensive income (loss)58
(40)(142)(223)
Other comprehensive income (loss), net of tax(81)43
336
320
Total comprehensive income486
585
1,950
1,980
Less: Comprehensive income (loss) attributable to noncontrolling interests in subsidiaries(5)(2)(17)(29)
Comprehensive income attributable to Raytheon Company$491
$587
$1,967
$2,009
Nine Months Ended October 1, 2017 and October 2, 2016 (in millions)Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Total Raytheon Company stockholders’ equity
Noncontrolling interests in subsidiaries(1)
Total equity
Balance at December 31, 2016$3
$
$(7,411)$17,565
$10,157
$
$10,157
Net income (loss)
1,631
1,631
1,631
Other comprehensive income (loss), net of tax336
336
336
Adjustment of redeemable noncontrolling interest to redemption value90
90
90
Distributions and other activity related to noncontrolling interests



Dividends declared2
(697)(695)(695)
Common stock plans activity122
122
122
Share repurchases(124)(660)(784)(784)
Balance at October 1, 2017$3
$
$(7,075)$17,929
$10,857
$
$10,857
Balance at December 31, 2015$3
$398
$(7,176)$16,956
$10,181
$202
$10,383
Net income (loss)1,689
1,689
(15)1,674
Other comprehensive income (loss), net of tax320
320
320
Adjustment of redeemable noncontrolling interest to redemption value(23)(23)(23)
Distributions and other activity related to noncontrolling interests(205)(205)(187)(392)
Dividends declared3
(653)(650)(650)
Common stock plans activity130
130
130
Share repurchases(531)(365)(896)(896)
Balance at October 2, 2016$3
$
$(6,856)$17,399
$10,546
$
$10,546
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Cash flows from operating activities
Net income$1,614
$1,660
(Income) loss from discontinued operations, net of tax(2)(1)
Income from continuing operations1,612
1,659
Adjustments to reconcile to net cash provided by (used in) operating activities from continuing operations, net of the effect of acquisitions and divestitures
Depreciation and amortization401
377
Stock-based compensation127
120
Gain on sale of equity method investment
(158)
Loss on repayment of long-term debt39

Deferred income taxes(137)(84)
Changes in assets and liabilities
Receivables, net(226)(64)
Contract assets and contract liabilities(962)(925)
Inventories(83)(37)
Prepaid expenses and other current assets148
252
Income taxes receivable/payable66
(78)
Accounts payable(191)52
Accrued employee compensation(68)(25)
Other current liabilities35
(59)
Accrued retiree benefits452
693
Other, net(90)(12)
Net cash provided by (used in) operating activities from continuing operations1,123
1,711
Net cash provided by (used in) operating activities from discontinued operations(1)
Net cash provided by (used in) operating activities1,122
1,711
Cash flows from investing activities
Additions to property, plant and equipment(323)(344)
Proceeds from sales of property, plant and equipment31
25
Additions to capitalized internal use software(49)(47)
Purchases of short-term investments(399)(472)
Maturities of short-term investments517
822
Payments for purchases of acquired companies, net of cash received(93)(57)
Other(2)(9)
Net cash provided by (used in) investing activities(318)(82)
Cash flows from financing activities
Dividends paid(679)(635)
Net borrowings (payments) on commercial paper300

Repayments of long-term debt(591)
Loss on repayment of long-term debt(38)
Repurchases of common stock under share repurchase programs(700)(801)
Repurchases of common stock to satisfy tax withholding obligations(84)(95)
Acquisition of noncontrolling interest in RCCS LLC
(90)
Contribution from noncontrolling interest in Forcepoint8
11
Other
(5)
Net cash provided by (used in) financing activities(1,784)(1,615)
Net increase (decrease) in cash, cash equivalents and restricted cash(980)14
Cash, cash equivalents and restricted cash at beginning of the year3,303
2,328
Cash, cash equivalents and restricted cash at end of period$2,323
$2,342
Three Months EndedTwelve Months Ended
(In millions, except per share amounts)Dec 31, 2016
Oct 2, 2016
Jul 3, 2016
Apr 3, 2016
Dec 31, 2016
Dec 31, 2015
Income from continuing operations after taxes$12
$18
$9
$
$39
$40
Net income12
18
9

39
40
Basic EPS attributable to Raytheon Company common stockholders:
Income from continuing operations after taxes$0.04
$0.05
$0.02
$
$0.10
$0.12
Net income0.04
0.05
0.02

0.11
0.11
Diluted EPS attributable to Raytheon Company common stockholders:
Income from continuing operations after taxes$0.03
$0.05
$0.03
$
$0.11
$0.12
Net income0.04
0.05
0.03

0.11
0.11
(In millions)Oct 1, 2017Dec 31, 2016
Cash and cash equivalents$2,311
$3,303
Restricted cash12

Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows$2,323
$3,303
Three Months EndedNine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Operating income$149
$114
$315
$269
Income from continuing operations attributable to Raytheon Company97
74
205
187
Diluted EPS from continuing operations attributable to Raytheon Company$0.33
$0.25
$0.70
$0.63
Three Months EndedNine Months Ended
Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings$0.79
$0.73
$2.39
$2.19
Undistributed earnings1.18
1.11
3.20
3.49
Total$1.97
$1.84
$5.59
$5.68
Diluted EPS attributable to Raytheon Company common stockholders:
Distributed earnings$0.80
$0.73
$2.39
$2.19
Undistributed earnings1.17
1.11
3.20
3.48
Total$1.97
$1.84
$5.59
$5.67
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Income from continuing operations attributable to participating securities$6
$7
$20
$23
Income (loss) from discontinued operations, net of tax attributable to participating securities(1)



Net income attributable to participating securities$6
$7
$20
$23
(1)Income (loss) from discontinued operations, net of tax attributable to participating securities was a loss of less than $1 million and income of less than $1 million in the third quarters of 2017 and 2016, respectively, and income of less than $1 million in the first nine months of 2017 and 2016.
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Shares for basic EPS(1)290.7
295.2
291.6
297.2
Effect of dilutive securities0.3
0.3
0.3
0.3
Shares for diluted EPS291.0
295.5
291.9
297.5
(1) Includes 3.2 million and 3.7 million participating securities in the third quarters of 2017 and 2016, respectively, and 3.5 million and 4.1 million participating securities in the first nine months of 2017 and 2016, respectively.
(In millions)Oct 1, 2017Dec 31, 2016
Materials and purchased parts$70
$66
Work in process608
532
Finished goods15
10
Total$693
$608
(In millions, except percentages)Oct 1, 2017Dec 31, 2016$ Change% Change
Contract assets$5,892
$5,041
$851
17 %
Contract liabilities—current(2,519)(2,646)127
(5)%
Contract liabilities—noncurrent(117)(128)11
(9)%
Net contract assets (liabilities)$3,256
$2,267
$989
44 %
(In millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint(1)
Total
Balance at December 31, 2016$1,702
$2,966
$4,154
$4,106
$1,860
$14,788
Acquisitions



85
85
Effect of foreign exchange rates and other3
1


1
5
Balance at October 1, 2017$1,705
$2,967
$4,154
$4,106
$1,946
$14,878
(1)At October 1, 2017, Forcepoint's fair value is estimated to exceed its net book value by approximately $630 million. As discussed in "Note 8: Forcepoint Joint Venture," we are required to determine Forcepoint's fair value on a quarterly basis due to the accounting related to the redeemable noncontrolling interest.
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Beginning balance$449
$355
Net income (loss)(17)(14)
Other comprehensive income (loss), net of tax(1)

Contribution from noncontrolling interest8
11
Adjustment of noncontrolling interest to redemption value(51)14
Ending balance$389
$366
(1)Other comprehensive income (loss), net of tax, was income of less than $1 million for the first nine months of 2017 and a loss of less than $1 million in the first nine months of 2016.
(In millions, except percentages)Oct 1, 2017Dec 31, 2016
Total remediation costs—undiscounted$205
$219
Weighted-average discount rate5.2%5.2%
Total remediation costs—discounted$141
$147
Recoverable portion92
92
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Beginning balance292.8
299.0
Stock plans activity1.1
1.6
Share repurchases(4.9)(7.0)
Ending balance289.0
293.6
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
$Shares
$Shares
Shares repurchased under our share repurchase programs$700
4.4
$801
6.2
Shares repurchased to satisfy tax withholding obligations84
0.5
95
0.8
Total share repurchases$784
4.9
$896
7.0
Pension and PRB plans, net(1)
Foreign exchange translation
Cash flow hedges(2)
Unrealized gains (losses) on investments and other, net(3)
Total
(In millions)
Balance at December 31, 2016$(7,234)$(175)$
$(2)$(7,411)
Before tax amount396
71
11

478
Tax (expense) or benefit(138)
(4)
(142)
Net of tax amount258
71
7

336
Balance at October 1, 2017$(6,976)$(104)$7
$(2)$(7,075)
Balance at December 31, 2015$(7,088)$(60)$(16)$(12)$(7,176)
Before tax amount590
(78)16
15
543
Tax (expense) or benefit(211)
(7)(5)(223)
Net of tax amount379
(78)9
10
320
Balance at October 2, 2016$(6,709)$(138)$(7)$(2)$(6,856)
(1)Pension and PRB plans, net, is shown net of tax benefits of $3,743 million and $3,881 million at October 1, 2017 and December 31, 2016, respectively.
(2)Cash flow hedges are shown net of tax expense of $3 million and tax benefit of $1 million at October 1, 2017 and December 31, 2016, respectively.
(3)Unrealized gains (losses) on investments and other, net are shown net of tax expense of $1 million at both October 1, 2017 and December 31, 2016.
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Service cost$122
$116
$355
$362
Interest cost281
274
815
819
Expected return on plan assets(342)(373)(1,032)(1,132)
Amounts reflected in net funded status61
17
138
49
Amortization of prior service cost included in net periodic pension expense2
1
4
3
Recognized net actuarial loss324
265
883
755
Loss due to settlements


3
Amounts reclassified during the period326
266
887
761
Net periodic pension expense (income)$387
$283
$1,025
$810
(In millions)Oct 1, 2017Dec 31, 2016
Long-term pension liabilities$7,110
$7,074
Long-term PRB liabilities362
358
Total long-term pension and PRB liabilities$7,472
$7,432
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Required pension contributions$574
$112
PRB contributions17
16
Three Months EndedNine Months Ended
Total Net Sales (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$1,391
$1,334
$4,251
$4,069
Intelligence, Information and Services1,543
1,534
4,605
4,653
Missile Systems1,945
1,770
5,602
5,199
Space and Airborne Systems1,597
1,590
4,760
4,582
Forcepoint170
167
452
443
Eliminations(355)(364)(1,077)(1,037)
Total business segment sales6,291
6,031
18,593
17,909
Acquisition Accounting Adjustments(7)(17)(28)(64)
Total$6,284
$6,014
$18,565
$17,845
Three Months EndedNine Months Ended
Intersegment Sales (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$13
$19
$45
$52
Intelligence, Information and Services159
169
509
501
Missile Systems36
34
101
102
Space and Airborne Systems140
133
406
367
Forcepoint7
9
16
15
Total$355
$364
$1,077
$1,037
Three Months EndedNine Months Ended
Operating Income (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$231
$211
$688
$733
Intelligence, Information and Services112
123
338
347
Missile Systems280
235
732
660
Space and Airborne Systems212
215
620
587
Forcepoint23
41
41
69
Eliminations(39)(42)(113)(109)
Total business segment operating income819
783
2,306
2,287
Acquisition Accounting Adjustments(39)(46)(123)(155)
FAS/CAS Adjustment78
104
295
318
Corporate
(11)(30)(35)
Total$858
$830
$2,448
$2,415
Three Months EndedNine Months Ended
Intersegment Operating Income (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$1
$1
$3
$2
Intelligence, Information and Services15
17
49
49
Missile Systems4
3
10
9
Space and Airborne Systems14
12
40
34
Forcepoint5
9
11
15
Total$39
$42
$113
$109
Three Months EndedNine Months Ended
FAS/CAS Adjustment Income (Expense) (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
FAS/CAS Pension Adjustment$81
$105
$299
$318
FAS/CAS PRB Adjustment(3)(1)(4)
FAS/CAS Adjustment$78
$104
$295
$318
Total Assets (in millions)Oct 1, 2017Dec 31, 2016
Integrated Defense Systems(1)$4,896
$4,573
Intelligence, Information and Services(1)4,251
4,315
Missile Systems(1)7,821
6,970
Space and Airborne Systems(1)6,674
6,564
Forcepoint(1)2,550
2,548
Corporate4,086
5,268
Total$30,278
$30,238
Three Months Ended October 1, 2017
Disaggregation of Total Net Sales(in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Other
Total
United States
Sales to the U.S. government(1)
Fixed-price contracts$165
$278
$744
$562
$45
$
$1,794
Cost-type contracts366
903
485
638
4

2,396
Direct commercial sales and other U.S. sales
Fixed-price contracts3
32

7
51

93
Cost-type contracts
1

1


2
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts47
43
98
28


216
Cost-type contracts32
11
15
5


63
Direct commercial sales and other foreign sales
Fixed-price contracts140
50
78
64
14

346
Cost-type contracts31





31
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts257
5
75
47


384
Cost-type contracts39

6
10


55
Direct commercial sales and other foreign sales
Fixed-price contracts245
5
281
50
6

587
Cost-type contracts






All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts1

27
14


42
Cost-type contracts5

21
1


27
Direct commercial sales and other foreign sales
Fixed-price contracts45
49
78
30
36

238
Cost-type contracts2
7
1



10
Total net sales1,378
1,384
1,909
1,457
156

6,284
Intersegment sales13
159
36
140
7
(355)
Acquisition Accounting Adjustments



7
(7)
Reconciliation to business segment sales$1,391
$1,543
$1,945
$1,597
$170
$(362)$6,284
Three Months Ended October 1, 2017
Total Net Sales by Geographic Areas (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
United States$534
$1,214
$1,229
$1,208
$100
$4,285
Asia/Pacific250
104
191
97
14
656
Middle East and North Africa541
10
362
107
6
1,026
All other (principally Europe)53
56
127
45
36
317
Total net sales$1,378
$1,384
$1,909
$1,457
$156
$6,284
Three Months Ended October 1, 2017
Total Net Sales by Major Customers (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Sales to the U.S. government(1)$531
$1,181
$1,229
$1,200
$49
$4,190
U.S. direct commercial sales and other U.S. sales3
33

8
51
95
Foreign military sales through the U.S. government381
59
242
105

787
Foreign direct commercial sales and other foreign sales(1)463
111
438
144
56
1,212
Total net sales$1,378
$1,384
$1,909
$1,457
$156
$6,284
Three Months Ended October 1, 2017
Total Net Sales by Contract Type (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Fixed-price contracts$903
$462
$1,381
$802
$152
$3,700
Cost-type contracts475
922
528
655
4
2,584
Total net sales$1,378
$1,384
$1,909
$1,457
$156
$6,284
Three Months Ended October 2, 2016
Disaggregation of Total Net Sales (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Other
Total
United States
Sales to the U.S. government(1)
Fixed-price contracts$188
$273
$639
$567
$35
$
$1,702
Cost-type contracts365
829
487
614
5

2,300
Direct commercial sales and other U.S. sales
Fixed-price contracts4
37
1
3
48

93
Cost-type contracts
5

1


6
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts42
54
90
27


213
Cost-type contracts30
33
14
1


78
Direct commercial sales and other foreign sales
Fixed-price contracts104
47
72
77
13

313
Cost-type contracts37





37
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts203
17
106
36


362
Cost-type contracts31
1
3
1


36
Direct commercial sales and other foreign sales
Fixed-price contracts266
13
183
90
5

557
Cost-type contracts1





1
All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts1

23
12


36
Cost-type contracts6

31
1


38
Direct commercial sales and other foreign sales
Fixed-price contracts34
50
86
27
35

232
Cost-type contracts3
6
1



10
Total net sales1,315
1,365
1,736
1,457
141

6,014
Intersegment sales19
169
34
133
9
(364)
Acquisition Accounting Adjustments



17
(17)
Reconciliation to business segment sales$1,334
$1,534
$1,770
$1,590
$167
$(381)$6,014
Three Months Ended October 2, 2016
Total Net Sales by Geographic Areas (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
United States$557
$1,144
$1,127
$1,185
$88
$4,101
Asia/Pacific213
134
176
105
13
641
Middle East and North Africa501
31
292
127
5
956
All other (principally Europe)44
56
141
40
35
316
Total net sales$1,315
$1,365
$1,736
$1,457
$141
$6,014
Three Months Ended October 2, 2016
Total Net Sales by Major Customers (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Sales to the U.S. government(1)$553
$1,102
$1,126
$1,181
$40
$4,002
U.S. direct commercial sales and other U.S. sales4
42
1
4
48
99
Foreign military sales through the U.S. government313
105
267
78

763
Foreign direct commercial sales and other foreign sales(1)445
116
342
194
53
1,150
Total net sales$1,315
$1,365
$1,736
$1,457
$141
$6,014
Three Months Ended October 2, 2016
Total Net Sales by Contract Type (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Fixed-price contracts$842
$491
$1,200
$839
$136
$3,508
Cost-type contracts473
874
536
618
5
2,506
Total net sales$1,315
$1,365
$1,736
$1,457
$141
$6,014
Nine Months Ended October 1, 2017
Disaggregation of Total Net Sales(in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Other
Total
United States
Sales to the U.S. government(1)
Fixed-price contracts$567
$798
$2,004
$1,605
$91
$
$5,065
Cost-type contracts1,123
2,676
1,475
2,018
10

7,302
Direct commercial sales and other U.S. sales
Fixed-price contracts6
102
1
19
147

275
Cost-type contracts1
5

2


8
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts131
131
285
70


617
Cost-type contracts104
40
49
8


201
Direct commercial sales and other foreign sales
Fixed-price contracts440
136
203
202
40

1,021
Cost-type contracts112

1



113
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts785
14
268
143


1,210
Cost-type contracts117
1
17
16


151
Direct commercial sales and other foreign sales
Fixed-price contracts701
18
778
140
17

1,654
Cost-type contracts






All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts3
3
89
34


129
Cost-type contracts16
1
61
4


82
Direct commercial sales and other foreign sales
Fixed-price contracts90
152
267
93
103

705
Cost-type contracts10
19
3



32
Total net sales4,206
4,096
5,501
4,354
408

18,565
Intersegment sales45
509
101
406
16
(1,077)
Acquisition Accounting Adjustments



28
(28)
Reconciliation to business segment sales$4,251
$4,605
$5,602
$4,760
$452
$(1,105)$18,565
Nine Months Ended October 1, 2017
Total Net Sales by Geographic Areas (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
United States$1,697
$3,581
$3,480
$3,644
$248
$12,650
Asia/Pacific787
307
538
280
40
1,952
Middle East and North Africa1,603
33
1,063
299
17
3,015
All other (principally Europe)119
175
420
131
103
948
Total net sales$4,206
$4,096
$5,501
$4,354
$408
$18,565
Nine Months Ended October 1, 2017
Total Net Sales by Major Customers (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Sales to the U.S. government(1)$1,690
$3,474
$3,479
$3,623
$101
$12,367
U.S. direct commercial sales and other U.S. sales7
107
1
21
147
283
Foreign military sales through the U.S. government1,156
190
769
275

2,390
Foreign direct commercial sales and other foreign sales(1)1,353
325
1,252
435
160
3,525
Total net sales$4,206
$4,096
$5,501
$4,354
$408
$18,565
Nine Months Ended October 1, 2017
Total Net Sales by Contract Type (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Fixed-price contracts$2,723
$1,354
$3,895
$2,306
$398
$10,676
Cost-type contracts1,483
2,742
1,606
2,048
10
7,889
Total net sales$4,206
$4,096
$5,501
$4,354
$408
$18,565
Nine Months Ended October 2, 2016
Disaggregation of Total Net Sales (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Other
Total
United States
Sales to the U.S. government(1)
Fixed-price contracts$565
$871
$1,887
$1,653
$72
$
$5,048
Cost-type contracts1,099
2,523
1,468
1,757
12

6,859
Direct commercial sales and other U.S. sales
Fixed-price contracts10
130
1
20
140

301
Cost-type contracts4
18

2


24
Asia/Pacific
Foreign military sales through the U.S. government
Fixed-price contracts103
138
236
86


563
Cost-type contracts86
50
53
5


194
Direct commercial sales and other foreign sales
Fixed-price contracts354
121
166
197
36

874
Cost-type contracts128

1



129
Middle East and North Africa
Foreign military sales through the U.S. government
Fixed-price contracts595
53
290
119


1,057
Cost-type contracts125
2
20
1


148
Direct commercial sales and other foreign sales
Fixed-price contracts800
66
604
244
12

1,726
Cost-type contracts1





1
All other (principally Europe)
Foreign military sales through the U.S. government
Fixed-price contracts8
1
82
28


119
Cost-type contracts18

78
4


100
Direct commercial sales and other foreign sales
Fixed-price contracts112
156
209
99
92

668
Cost-type contracts9
23
2



34
Total net sales4,017
4,152
5,097
4,215
364

17,845
Intersegment sales52
501
102
367
15
(1,037)
Acquisition Accounting Adjustments



64
(64)
Reconciliation to business segment sales$4,069
$4,653
$5,199
$4,582
$443
$(1,101)$17,845
Nine Months Ended October 2, 2016
Total Net Sales by Geographic Areas (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
United States$1,678
$3,542
$3,356
$3,432
$224
$12,232
Asia/Pacific671
309
456
288
36
1,760
Middle East and North Africa1,521
121
914
364
12
2,932
All other (principally Europe)147
180
371
131
92
921
Total net sales$4,017
$4,152
$5,097
$4,215
$364
$17,845
Nine Months Ended October 2, 2016
Total Net Sales by Major Customers (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Sales to the U.S. government(1)$1,664
$3,394
$3,355
$3,410
$84
$11,907
U.S. direct commercial sales and other U.S. sales14
148
1
22
140
325
Foreign military sales through the U.S. government935
244
759
243

2,181
Foreign direct commercial sales and other foreign sales(1)1,404
366
982
540
140
3,432
Total net sales$4,017
$4,152
$5,097
$4,215
$364
$17,845
Nine Months Ended October 2, 2016
Total Net Sales by Contract Type (in millions)Integrated Defense Systems
Intelligence, Information and Services
Missile Systems
Space and Airborne Systems
Forcepoint
Total
Fixed-price contracts$2,547
$1,536
$3,475
$2,446
$352
$10,356
Cost-type contracts1,470
2,616
1,622
1,769
12
7,489
Total net sales$4,017
$4,152
$5,097
$4,215
$364
$17,845
Three Months EndedNine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Operating income$149
$114
$315
$269
Income from continuing operations attributable to Raytheon Company97
74
205
187
Diluted earnings per share (EPS) from continuing operations attributable to Raytheon Company$0.33
$0.25
$0.70
$0.63
Three Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Net sales
Products$5,305
$5,061
84.4%84.2%
Services979
953
15.6%15.8%
Total net sales$6,284
$6,014
100.0%100.0%
Nine Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Net sales
Products$15,656
$14,990
84.3%84.0%
Services2,909
2,855
15.7%16.0%
Total net sales$18,565
$17,845
100.0%100.0%
Three Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Sales to the U.S. government(1)(2)$4,190
$4,002
67%67%
U.S. direct commercial sales and other U.S. sales95
99
2%1%
Foreign military sales through the U.S. government787
763
12%13%
Foreign direct commercial sales and other foreign sales(1)1,212
1,150
19%19%
Total net sales$6,284
$6,014
100%100%
(2)Includes sales to the U.S. Department of Defense (DoD) of $4,035 million, or 64% of total net sales, in the third quarter of 2017 and $3,848 million, or 64% of total net sales, in the third quarter of 2016.
Nine Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Sales to the U.S. government(1)(2)$12,367
$11,907
67%67%
U.S. direct commercial sales and other U.S. sales283
325
1%2%
Foreign military sales through the U.S. government2,390
2,181
13%12%
Foreign direct commercial sales and other foreign sales(1)3,525
3,432
19%19%
Total net sales$18,565
$17,845
100%100%
(2)Includes sales to the U.S. DoD of $11,841 million, or 64% of total net sales, in the first nine months of 2017 and $11,352 million, or 64% of total net sales, in the first nine months of 2016.
Three Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Cost of sales
Products$3,872
$3,705
61.6%61.6%
Services818
769
13.0%12.8%
Total cost of sales$4,690
$4,474
74.6%74.4%
Nine Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Cost of sales
Products$11,531
$10,948
62.1%61.4%
Services2,374
2,329
12.8%13.1%
Total cost of sales$13,905
$13,277
74.9%74.5%
Three Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Administrative and selling expenses$549
$531
8.7%8.8%
Research and development expenses187
179
3.0%3.0%
Total general and administrative expenses$736
$710
11.7%11.8%
Nine Months Ended% of Total Net Sales
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Administrative and selling expenses$1,654
$1,594
8.9%8.9%
Research and development expenses558
559
3.0%3.1%
Total general and administrative expenses$2,212
$2,153
11.9%12.1%
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Total operating expenses$5,426
$5,184
$16,117
$15,430
% of Total Net Sales86.3%86.2%86.8%86.5%
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Operating income$858
$830
$2,448
$2,415
% of Total Net Sales13.7%13.8%13.2%13.5%
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Non-operating (income) expense, net
Interest expense$48
$58
$157
$174
Interest income(4)(4)(14)(12)
Other (income) expense, net(2)(4)26
(7)
Total non-operating (income) expense, net$42
$50
$169
$155
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Federal and foreign income taxes$248
$239
$667
$601
Effective tax rate30.4%30.6%29.3%26.6%
Three Months EndedNine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Income from continuing operations attributable to Raytheon Company$573
$543
$1,629
$1,688
Diluted weighted-average shares outstanding291.0
295.5
291.9
297.5
Diluted EPS from continuing operations attributable to Raytheon Company$1.97
$1.84
$5.59
$5.67
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Beginning balance290.1
295.1
292.8
299.0
Stock plans activity

1.1
1.6
Share repurchases(1.1)(1.5)(4.9)(7.0)
Ending balance289.0
293.6
289.0
293.6
Three Months EndedNine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Net income attributable to Raytheon Company$572
$544
$1,631
$1,689
Diluted weighted-average shares outstanding291.0
295.5
291.9
297.5
Diluted EPS attributable to Raytheon Company$1.97
$1.84
$5.60
$5.68
Three Months EndedNine Months Ended
Bookings (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$412
$1,025
$3,274
$3,315
Intelligence, Information and Services1,910
1,731
5,017
4,583
Missile Systems2,501
1,932
5,999
5,455
Space and Airborne Systems1,948
2,060
4,481
6,479
Forcepoint186
175
406
395
Total$6,957
$6,923
$19,177
$20,227
Backlog (in millions)Oct 1, 2017Dec 31, 2016
Integrated Defense Systems$9,089
$10,159
Intelligence, Information and Services6,368
5,662
Missile Systems11,943
11,568
Space and Airborne Systems8,826
8,834
Forcepoint(1)450
486
Total$36,676
$36,709
Three Months EndedNine Months Ended
Total Net Sales (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$1,391
$1,334
$4,251
$4,069
Intelligence, Information and Services1,543
1,534
4,605
4,653
Missile Systems1,945
1,770
5,602
5,199
Space and Airborne Systems1,597
1,590
4,760
4,582
Forcepoint170
167
452
443
Eliminations(355)(364)(1,077)(1,037)
Total business segment sales6,291
6,031
18,593
17,909
Acquisition Accounting Adjustments(7)(17)(28)(64)
Total$6,284
$6,014
$18,565
$17,845
Three Months EndedNine Months Ended
EAC Adjustments (in millions)Oct 1, 2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
Gross favorable$321
$221
$786
$628
Gross unfavorable(172)(107)(471)(359)
Total net EAC adjustments$149
$114
$315
$269
Three Months EndedNine Months Ended
Operating Income (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$231
$211
$688
$733
Intelligence, Information and Services112
123
338
347
Missile Systems280
235
732
660
Space and Airborne Systems212
215
620
587
Forcepoint23
41
41
69
Eliminations(39)(42)(113)(109)
Total business segment operating income819
783
2,306
2,287
Acquisition Accounting Adjustments(39)(46)(123)(155)
FAS/CAS Adjustment78
104
295
318
Corporate
(11)(30)(35)
Total$858
$830
$2,448
$2,415
Integrated Defense Systems
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Total net sales$1,391
$1,334
4.3 %$4,251
$4,069
4.5 %
Total operating expenses

Cost of sales—labor532
487
9.2 %1,597
1,494
6.9 %
Cost of sales—materials and subcontractors420
436
(3.7)%1,304
1,371
(4.9)%
Other cost of sales and other operating expenses208
200
4.0 %662
471
40.6 %
Total operating expenses1,160
1,123
3.3 %3,563
3,336
6.8 %
Operating income$231
$211
9.5 %$688
$733
(6.1)%
Operating margin16.6%15.8%16.2%18.0%
Change in Operating Income (in millions)Three Months Ended Oct 1, 2017 Versus Three Months Ended Oct 2, 2016Nine Months Ended Oct 1, 2017 Versus Nine Months Ended Oct 2, 2016
Volume$6
$11
Net change in EAC adjustments12
57
Mix and other performance2
(113)
Total change in operating income$20
$(45)
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Bookings$412
$1,025
(59.8)%$3,274
$3,315
(1.2)%
Intelligence, Information and Services
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Total net sales$1,543
$1,534
0.6 %$4,605
$4,653
(1.0)%
Total operating expenses
Cost of sales—labor663
622
6.6 %1,970
1,914
2.9 %
Cost of sales—materials and subcontractors578
581
(0.5)%1,697
1,797
(5.6)%
Other cost of sales and other operating expenses190
208
(8.7)%600
595
0.8 %
Total operating expenses1,431
1,411
1.4 %4,267
4,306
(0.9)%
Operating income$112
$123
(8.9)%$338
$347
(2.6)%
Operating margin7.3%8.0%7.3%7.5%
Change in Operating Income (in millions)Three Months Ended Oct 1, 2017 Versus Three Months Ended Oct 2, 2016Nine Months Ended Oct 1, 2017 Versus Nine Months Ended Oct 2, 2016
Volume$1
$(4)
Net change in EAC adjustments
(4)
Mix and other performance(12)(1)
Total change in operating income$(11)$(9)
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Bookings$1,910
$1,731
10.3%$5,017
$4,583
9.5%
Missile Systems
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Total net sales$1,945
$1,770
9.9%$5,602
$5,199
7.8 %
Total operating expenses
Cost of sales—labor596
528
12.9%1,706
1,582
7.8 %
Cost of sales—materials and subcontractors787
770
2.2%2,413
2,123
13.7 %
Other cost of sales and other operating expenses282
237
19.0%751
834
(10.0)%
Total operating expenses1,665
1,535
8.5%4,870
4,539
7.3 %
Operating income$280
$235
19.1%$732
$660
10.9 %
Operating margin14.4%13.3%13.1%12.7%
Change in Operating Income (in millions)Three Months Ended Oct 1, 2017 Versus Three Months Ended Oct 2, 2016Nine Months Ended Oct 1, 2017 Versus Nine Months Ended Oct 2, 2016
Volume$18
$46
Net change in EAC adjustments25
23
Mix and other performance2
3
Total change in operating income$45
$72
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Bookings$2,501
$1,932
29.5%$5,999
$5,455
10.0%
Space and Airborne Systems
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Total net sales$1,597
$1,590
0.4 %$4,760
$4,582
3.9 %
Total operating expenses
Cost of sales—labor666
641
3.9 %1,991
1,866
6.7 %
Cost of sales—materials and subcontractors460
495
(7.1)%1,380
1,349
2.3 %
Other cost of sales and other operating expenses259
239
8.4 %769
780
(1.4)%
Total operating expenses1,385
1,375
0.7 %4,140
3,995
3.6 %
Operating income$212
$215
(1.4)%$620
$587
5.6 %
Operating margin13.3%13.5%13.0%12.8%
Change in Operating Income (in millions)Three Months Ended Oct 1, 2017 Versus Three Months Ended Oct 2, 2016Nine Months Ended Oct 1, 2017 Versus Nine Months Ended Oct 2, 2016
Volume$1
$21
Net change in EAC adjustments(2)(30)
Mix and other performance(2)42
Total change in operating income$(3)$33
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Bookings$1,948
$2,060
(5.4)%$4,481
$6,479
(30.8)%
Forcepoint
Three Months EndedNine Months Ended
(In millions, except percentages)Oct 1, 2017Oct 2, 2016% ChangeOct 1, 2017Oct 2, 2016% Change
Total net sales$170
$167
1.8 %$452
$443
2.0 %
Total operating expenses
Cost of sales29
28
3.6 %80
80
%
Selling and marketing64
48
33.3 %176
142
23.9 %
Research and development38
32
18.8 %105
96
9.4 %
General and administrative16
18
(11.1)%50
56
(10.7)%
Total operating expenses147
126
16.7 %411
374
9.9 %
Operating income (loss)$23
$41
(43.9)%$41
$69
(40.6)%
Operating margin13.5%24.6%9.1%15.6%
Cost of sales—labor and overhead costs associated with analytic and technical support services; infrastructure costs associated with maintaining our databases; and labor, materials and overhead costs associated with providing our product offerings.
Research and development—labor costs for the development and management of new and existing products; and related overhead costs.
General and administrative expenses—labor costs for our executive, finance and administrative personnel; third party professional service fees; and related overhead costs.
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Deferred revenue adjustment$(7)$(17)$(28)$(64)
Amortization of acquired intangibles(32)(29)(95)(91)
Total Acquisition Accounting Adjustments$(39)$(46)$(123)$(155)
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
Integrated Defense Systems$
$
$
$
Intelligence, Information and Services5
4
15
13
Missile Systems

1
1
Space and Airborne Systems3
4
8
13
Forcepoint24
21
71
64
Total$32
$29
$95
$91
Three Months EndedNine Months Ended
FAS/CAS Adjustment Income (Expense) (in millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
FAS/CAS Pension Adjustment$81
$105
$299
$318
FAS/CAS PRB Adjustment(3)(1)(4)
FAS/CAS Adjustment$78
$104
$295
$318
Three Months EndedNine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016Oct 1, 2017Oct 2, 2016
FAS (expense)$(387)$(283)$(1,025)$(810)
CAS expense468
388
1,324
1,128
FAS/CAS Pension Adjustment$81
$105
$299
$318
(In millions)Oct 1, 2017Dec 31, 2016
Cash and cash equivalents$2,311
$3,303
Short-term investments
100
Working capital4,286
4,346
Amount available under credit facilities950
1,250
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Net cash provided by (used in) operating activities from continuing operations$1,123
$1,711
Net cash provided by (used in) operating activities1,122
1,711
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Required pension contributions$574
$112
PRB contributions17
16
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Federal$520
$460
Foreign66
33
State23
27
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Additions to property, plant and equipment$323
$344
Additions to capitalized internal use software49
47
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
Purchases of short-term investments$(399)$(472)
Maturities of short-term investments517
822
Nine Months Ended
(In millions)Oct 1, 2017Oct 2, 2016
$Shares
$Shares
Shares repurchased under our share repurchase programs$700
4.4
$801
6.2
Shares repurchased to satisfy tax withholding obligations84
0.5
95
0.8
Total share repurchases$784
4.9
$896
7.0
Nine Months Ended
(In millions, except per share amounts)Oct 1, 2017Oct 2, 2016
Cash dividends declared per share$2.3925
$2.1975
Total dividends paid679
635
(In millions, except percentages)Oct 1, 2017Dec 31, 2016
Total remediation costs—undiscounted$205
$219
Weighted-average discount rate5.2%5.2%
Total remediation costs—discounted$141
$147
Recoverable portion92
92
Three Months EndedTwelve Months Ended
(In millions, except per share amounts)Dec 31, 2016
Oct 2, 2016
Jul 3, 2016
Apr 3, 2016
Dec 31, 2016
Dec 31, 2015
Income from continuing operations after taxes$12
$18
$9
$
$39
$40
Net income12
18
9

39
40
Basic EPS attributable to Raytheon Company common stockholders:
Income from continuing operations after taxes$0.04
$0.05
$0.02
$
$0.10
$0.12
Net income0.04
0.05
0.02

0.11
0.11
Diluted EPS attributable to Raytheon Company common stockholders:
Income from continuing operations after taxes$0.03
$0.05
$0.03
$
$0.11
$0.12
Net income0.04
0.05
0.03

0.11
0.11
(In millions)Oct 1, 2017Dec 31, 2016
Cash and cash equivalents$2,311
$3,303
Restricted cash12

Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows$2,323
$3,303
PeriodTotal Number ofSharesPurchased (1)
AveragePrice Paidper Share
Total Number ofShares Purchasedas Part of PubliclyAnnounced Plan
Approximate DollarValue (in billions)of Shares thatMay Yet Be PurchasedUnder the Plan (2)
July (July 3, 2017 - July 30, 2017)5,690
$169.45

$1.1
August (July 31, 2017 - August 27, 2017)242,583
173.14
242,581
1.1
September (August 28, 2017 - October 1, 2017)879,846
181.76
869,378
0.9
Total1,128,119
$179.84
1,111,959
(1)Includes shares purchased related to activity under our stock plans. Such activity during the third quarter of 2017 includes the surrender by employees of 16,160 shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees.

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