Monday, January 28, 2013

Raytheon 4Q 2012 Non-GAAP Earnings down 11% and Annual 2012 Earnings Flat

Below here are reconciliations of Raytheon's Earnings as Reported and its Non-GAAP Adjusted Earnings for both the 4Qs of 2012 and 2011 and for annual 2012 and 2011:


4Q 4Q %
Annual Annual %

2012 2011 Decrease
2012 2011 Change

mil $s mil $s

mil $s mil $s








Net Income from continuing operations attributable to common shares, as reported 466 539 -14%
1,889 1,848 2%








Adjustments:














FAS/CAS Pension Charge 44 54

166 219








Loss on Early Debt Retirement 19


19









UK Border Agency Charge




60








Favorable Tax Settlement




(60)








Non-GAAP Adjusted Net Income 529 593 -11%
2,074 2,067 0%

And from the most recent 2011 Proxy Statement filed with the SEC, below here is the executive compensation information for William Swanson, the Chairman and CEO of Raytheon:




Non-equity Increase



Incentive In All


Stock Plan Pension Other Total
Year Salary Awards Compensation Value Compensation Compensation
000s 000s 000s 000s 000s 000s







2011 1,370 10,291 3,000 1,770 440 16,871
2010 1,328 10,458 2,800 3,518 489 18,593
2009 1,298 10,353 3,050 3,533 462 18,696
3 Yr Total 3,996 31,102 8,850 8,821 1,391 54,160

Raytheon's CEO's compensation is not nearly as extravagant as that of other large US Defense Contractor CEOs.

But try telling that to the many underemployed US citizens, who are working two or three part-time jobs making just above minimum wage.  After all, Raytheon's CEO had Total Stock Awards of $31.1 mil, Total Increase in Pension Value of $8.9 mil, and Total Compensation of $54.2 mil, all in the three years from 2009 to 2011.

Raytheon gets a substantial portion of its Revenues and Earnings from the US Government, thus also from US taxpayers.

When you review many of the above compensation elements of Raytheon's CEO, it's difficult for me to understand why the Business Roundtable is now strongly lobbying for both Social Security and Medicare Benefits for retirees to be delayed until Age 70, especially when US Government spending to US Defense Contractors has been so excessive.