RAYTHEON COMPANY 333 Notes to Consolidated Financial Statements (Continued) 33333333333333333333333333333333333333333333 The components of assets and liabilities related to AIS were as follows at December 31: recapitalization of Flight Options LLC (FO) and exchanged certain FO debt for equity. As a result of this recapitalization, the Company now owns approximately 66 percent of FO and is consolidating FO’s results in its financial statements. Assets acquired included $83 million of inventories and $27 million of other current assets. Liabilities assumed included $97 million of notes payable and long- term debt, $90 million of advance payments, and $77 million of accounts payable and accrued expenses. The Company also recorded $26 million of intangible assets and $128 million of goodwill in connection with this recapitalization.  In 2001, the Company sold its recreational marine business for $100 million and recorded a gain of $39 million. Additional infor- mation about certain other acquisitions and divestitures is included in Note H, Other Assets. In 2003, the total loss from discontinued operations was $261 million pretax, $170 million after-tax, or $0.41 per diluted share versus $1,013 million pretax, $887 million after-tax, or $2.17 per diluted share in 2002 and $1,138 million pretax, $757 million after- tax, or $2.10 per diluted share in 2001. In 2003, the Company acquired Solipsys Corporation for $170 mil- lion, net of cash received, to be paid over two years. The Company paid $40 million, net, in cash in 2003 and intends to make the remaining payments, which have been accrued, in cash. In addi- tion, the Company may be required to make certain performance- based incentive payments. Assets acquired included $7 million of contracts in process. Liabilities assumed included $2 million of accounts payable and $3 million of accrued salaries and wages. The Company also recorded $8 million of intangible assets and $160 million of goodwill (at Integrated Defense Systems) in con- nection with this acquisition.  The Company merged with the defense business of Hughes Electronics Corporation (Hughes Defense) in December 1997. In October 2001, the Company and Hughes Electronics agreed  to a settlement regarding the purchase price adjustment related to the Company’s merger with Hughes Defense. Under the terms of  the merger agreement, Hughes Electronics agreed to reimburse the Company approximately $635 million of its purchase price, with $500 million received in 2001 and the balance received in 2002. The settlement resulted in a $555 million reduction in goodwill.  Prior to 2000, the Company recorded restructuring charges and exit costs in connection with the 1997 acquisition of Texas Instruments’ defense business and merger with Hughes Defense. The Company essentially completed all related restructuring initia- tives in 2000 except for ongoing idle facility costs. Restructuring charges and exit costs recognized in connection with business combinations include the cost of involuntary employee termination benefits and related employee severance costs, facility closures, and other costs associated with the Company’s approved plans. Employee termination benefits include severance, wage continuation, medical, and other benefits. Facility closure and related costs include disposal costs of property, plant, and equipment, lease payments, lease termination costs, and net gain or loss on sales of closed facilities. In 2001, the Company determined that the cost of certain restructuring initiatives would be lower than originally planned and recorded an $8 million favorable adjustment to cost of sales. In 2002, the Company determined that the cost of certain restructuring initiatives would be lower than originally planned and recorded a $4 million favorable adjustment to cost of sales, a $3 million favorable adjustment to general and administrative expenses, and a $1 million reduction in goodwill. In 2002, the Company formed a joint venture with Flight Options, Inc. whereby the Company contributed its Raytheon Travel Air ® fractional ownership business and loaned the new entity $20 million. In June 2003, the Company participated in a financial Pro forma financial information has not been provided for these acquisitions as they are not material either individually or in the aggregate. In addition, the Company has entered into other acqui- sition and divestiture agreements in the normal course of business that have not been separately disclosed as they are not material.  In 2002, the Company acquired JPS Communications,™ Inc. for $10 million in cash. Assets acquired included $2 million of accounts receivable and $2 million of inventories. The Company also recorded $4 million of goodwill (at Network Centric Systems) and $2 million of intangible assets in connection with this acquisition.  In 2003, the Company acquired the Aerospace and Defence Services business unit of Honeywell ® International Inc. for $20 mil- lion in cash. Assets acquired included $4 million of contracts in process. Liabilities assumed included $1 million of accounts payable and $2 million of other accrued expenses. The Company also recorded $8 million of intangible assets and $11 million of goodwill (at Technical Services) in connection with this acquisition. 333 NOTE D: RESTRUCTURING 333 NOTE C: ACQUISITIONS AND DIVESTITURES (In millions) 2003 2002 Current assets $59 $75 Total assets $59 $75 Current liabilities $6 $14 Total liabilities  $6 $14