Transcript Annual Meeting 2008

Association of Raytheon
Retirees, Inc.
Annual Meeting May 10, 2012
Agenda
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Introduction: Bob Hamilton
Business Meeting
Retiree Medical: Joe DeAmbrose
Pension Status: Al Swenson
 Break
Membership: Mel Weinzimer
Financial : Dave MacLellan
Communications: Bob Hamilton
Computer Security : John Rudy
 Break
Guest Speaker: Bill Marcley, Zumwalt Program Manager
Raffle: Mel Weinzimer
Adjourn Formal Meeting
Lunch and Socialize, General Discussions
2
Director
Your Directors
Years at
Raytheon
Raytheon Background
Term
(yrs.)
Bill Burditt
38
International Business Mgmt.
3
Joe DeAmbrose
30
Director, Taxation
4
Evans Cheeseman
31
Manager, Pension Administration
4
Bob Hamilton
27
Programs Manager
3
Dave MacLellan
37
Corporate Tax Department
4
Jack O’Halloran
32
Manufacturing Manager
3
John Rudy
41
IT/Engineering Management
4
Al Swenson
34
Controller, Director of Internal Audit
3
Mel Weinzimer
38
Director, Surveillance Programs
4
And Dr.James Small in Tucson and Donna Agostino, our
Office Manager
3
Your Directors
4
In Memoriam
Samuel Ameen
Stan Bernstein
Daniel Bradley
Robert P Brown
Dr. Apostle G.
Cardiasmenos
John Caufield
Domienic Cerasuolo
Harold Coffin
Ray DiPerna
Armand Dube
Alfred Elkhill
Raymond J. Estlick
Richard Fagen
Gerard A. Gagnon
Richard E. Gorton Sr.
Wally Haigh
Arthur La Haise
Walter Hicks
Alvin Lloyd Hodder
Dick Kiesinger
Arthur LaHaise
Robert A Lawson
Jack Linane
Gerald H. Maurice
Maj. Gen. Charles F.
Means
Neil Moore
James Morash
Bruno Resteghini
Jacqueline Reidy
Timothy L. Richardson
Robert C. Shuppert
Charlie Stahley
Sid Stark
Paul J. Surette
G D Sutcliffe
Bill Thibodeau
Cynthia Warden
Ernie Neilsen
Donald O'Connor John Poulos
5
Financial Overview of
Retiree Medical
and Life Insurance
Joe DeAmbrose
6
Life Insurance
Primarily Legacy Raytheon
10% of Pre-Retirement Coverage
Funding-Retired Lives Reserve
Met Group Life Policy A26808-G
Funding Estimate--$50M-$100M
Met Life Certificate
7
Medical Financial Highlights
(Millions)
2004-2007
2008
2009
2010
VEBA Assets
$287.5
$202.6
$217.4
$230.1
Pension Assets
$185.4
$141.6
$170.5
$186.7
Total Assets
$472.9
$344.2
$387.9
$416.8
Total Liability
$891.1
$691.3
$687.5
$618.1
Unfunded
Liability
$390.9
$347.1
$299.6
$201.3
Participants
27,522
22,557
22,588
20,759
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Medical Financial Highlights
Other Medical Data
(Millions)
2005-2007
2008
2009
2010
$111.8
$73.8
$67.3
$60.1
Raytheon Contributions
$44.5
$18.2
$24.6
$18.9
Employee Contributions
$54.1
$38.2
$33.6
$32.1
Actuarial Gains
$97.1
$35.4
$29.5
$9.2
Change in Actuarial
Assumptions
$33.5
$41.0
$21.8
(-$60.3)
$20.0M
$15.5
$15.9
$20.9
$6.2
$8.2
$5.0
$6.5
27,522
22,557
22,856
20,759
Benefits Paid
Raytheon Direct
Payments
Administrative Expenses
Participants
9
Retiree Life Insurance Certificate
10
Pension Review
Al Swenson
11
Pension Fund Status
Outline
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Raytheon Commitment
Fund balances
Changes in fund balance 2010-2011
Funding requirements
2011 Raytheon financial results
Sources
 Met with Raytheon Treasury
4/26/12
 Annual Report and Raytheon 10K
12
Raytheon Co. Commitment
Diane Avellar- Vice President, Raytheon Company
letter dated April 2012
 “As we have done in the past,we want
to assure you that Raytheon remains
fully committed to meeting all pension
benefit obligations to the more than
60,000 retirees and survivors,
estimated at over one billion dollars
for 2012.
 Additionally Raytheon remains fully
committed to paying pension benefits
to our future retirees and survivors,
just as we have done for almost 60
years.”
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Pension Fund Balances
Fund
Balance
Equities
Fixed
Income
All Other
Total
12/31/11 12/31/11 Raytheon
($ In Millions)
%
Policy
7,166
47% 45-65 %
4,787
32%
25-40%
3,142
21%
0-30%
15,095
100%
14
Pension Fund Changes
($ In Millions)
Beginning Balance 1/1/11
14,681
Actual Return on Plan Assets
<24>
Company Contributions
1,784
Benefits Paid
<1,196>
Other (est.)
<150>
Ending Balance 12/31/11
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15,095
Pension Funding
Domestic Plans
(Estimated)
82% Accumulated Benefit
Obligation (ABO)
74% Projected Benefit
Obligation(PBO)
Funding anticipated to be
100% PBO by 2015
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Raytheon Company
2011 Financial Results
2009
Net Sales:
Adjusted Income:
Adjusted Earnings per
Share:
Operating Cash Flow
From Operations:
Dividends Declared per
Share:
2010
2011
24.9B
25.2B
24.9B
1.9B
2.1B
2.1B
$4.79
$5.51
$5.90
2.8B
1.98B
2.2B
$1.24
$1.50
$1.72
2011 Was Another Strong Year for Raytheon
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Break
Time to stretch for a few minutes
18
Membership
Mel Weinzimer
19
Membership Profile
• 1225 Active Members
Membership
6% 1%
• Reside in 35 states & Abroad
Northeast
10%
• Predominately legacy
Raytheon
Mid-Atlantic
5%
SouthEast
SouthWest
78%
• Our retirees continue to stay
in touch with their Raytheon
friends and co-workers
20
MidWest
Welcome New Members
Bruce Butterfield
Evans Cheeseman
Richard Daddario
Sandra Day
Rod Hersh
Robert Kirsch
Suguna Mahaswaran
Greg McClure
John McPherson
Dan Nash
Kendrick Taylor 21
Social Events
AIR TRAFFIC MANAGEMENT SYSTEM RETIREES
100TH LUNCHEON
22
ATMS Members
Tom Allen
Russ Aten
Fred Benham
Bob Brabant
Bob Busch
Gerry Carnevale
Frank Cheriff
Mort Cohen
Peter Dunham
Dick Edry
Ed Fleisher
Charlie Hall
Bill Hamilton
Barry Hass
Joe Kearns
Joe Kirk
Al Kutenplon
Helmut Lelke
Gerry Levine
23
Mike Muchard
Ken Oelberger
Tony Polise
Marty Rouff
Kurt Schwerdt
Dan Varon
Mel Weinzimer
GeorgeWiedenbar
Joe Wyman
Social Events
24
• Contact your friends, associates, fellow retirees
and encourage them to join and/or renew
membership
• Our retirees continue to stay in touch with their
Raytheon friends and co-workers
Let us know when your circle of Raytheon retirees
is getting together
• We welcome your suggestions and ideas
25
Communications
Bob Hamilton
26
Newsletter Continues
With Expanded Content
 Health and pension plan articles
remain the cornerstone of our
publication
 We continue to use
 Directors as authors
 Syndicated columnists
 Social and luncheon announcements
 Retiree written articles of interest
 Accomplishments, travel, hobbies, public
service
27
Newsletter Appearance
 The format has continued in booklet
form
 Reduced printing costs by printing at
the Minuteman Regional High School
 Sometimes causes schedule issues
 E-mail is still the most cost effective
means of distribution
 Members are encouraged to use e-mail
 Do we have your current email address?
28
Our Website Being
Updated
 Would like to add a FORUM where
retirees can communicate directly
on items of interest to them
 Need a forum-master volunteer
 More current than the newsletter
 We are able to update it more
frequently than the newsletter
 www.raytheonretirees.org
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RSS Feed
Really Simple Syndication
provides instant breaking news
Continuously searches and
provides abstracts plus links to
the articles of interest
Raytheon
Health Care
Medicare
Estate Planning
Pension Legislation
Social Security
Retiree News
30
Recent Web Site Traffic
16.20%
15.20%
14.00%
7.40%
6.20%
5.60%
4.20%
3.60%
3.40%
3.20%
Massachusetts
California
Virginia
Texas
Pennsylvania
New Mexico
Arizona
Rhode Island
Florida
3.00%
2.80%
2.60%
2.00%
2.00%
1.60%
1.20%
0.80%
0.80%
0.80%
3.40%
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South Carolina
Alabama
New York
Oregon
New Hampshire
Illinois
Georgia
Maine
New Jersey
Nevada
Other Locations
144,011 Pages Viewed by
58,599 First Time Visitors
32
Popular Web Pages
Home Page
Benefits
Members
Newsletters
Raytheon News
Join Us
Upcoming Events
Goals
2009
232
55
2010
164
120
2011
154
136
2012
248
151
125
14
7
14
17
4
118
8
20
20
45
4
116
27
23
21
12
10
61
7
12
11
7
3
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A random
sample of
approximately
500 recent hits
The Future Brings
Challenges
 We constantly respond to member
issues
 Act as an intermediary with Raytheon
 Need to Expand membership
 Let us know who is retiring
 We need help locating out-of-state
retirees
34
Financial
Dave MacLellan
35
Financial
Income Statement-Actual For the Year 2011
Item
Amount
($)
Income
18,496
Dues and Interest
Expenses
Wages and Payroll Taxes
5,346
Office Rent
4,125
Annual Meeting
2,915
Newsletters & Mailings
2,161
Miscellaneous
2,080
Directors' Expenses
1,887
Total
18,514
Net Inc/(Loss)
(18)
36
Computer Security
John Rudy
37
Break
Time to stretch for a few minutes
38
Guest Speaker: Bill Marcley
39
Raffle
40
Thank You For Coming
This concludes our formal
membership meeting
Please join us for lunch
Stay and visit with your friends
for a while
Also please feel free to visit the
museum
Stay well and thanks for
joining us
41