RAYTHEON COMPANY 333 (In millions except share amounts) December 31: 2003 2002 ASSETS 333 Current assets Cash and cash equivalents $ 661 $ 544 Accounts receivable, less allowance for doubtful accounts of $35 in 2003 and $73 in 2002 485 675 Contracts in process  2,762 3,016 Inventories  1,998 2,032 Deferred federal and foreign income taxes  466 601 Prepaid expenses and other current assets 154 247 Assets from discontinued operations 59 75 Total current assets 6,585 7,190 Property, plant, and equipment, net  2,711 2,396 Deferred federal and foreign income taxes 337 281 Prepaid retiree benefits 703 676 Goodwill  11,479 11,170 Other assets, net  1,853 2,233 Total assets $23,668 $23,946 LIABILITIES AND STOCKHOLDERS’ EQUITY 333 Current liabilities Notes payable and current portion of long-term debt  $ 15 $ 1,153 Advance payments, less contracts in process of $1,071 in 2003 and $1,688 in 2002 1,038 819 Accounts payable 833 776 Accrued salaries and wages 767 710 Other accrued expenses 1,153 1,316 Liabilities from discontinued operations 43 333 Total current liabilities 3,849 5,107 Accrued retiree benefits and other long-term liabilities 3,281 2,831 Long-term debt  6,517 6,280 Subordinated notes payable 859 858 Commitments and contingencies (note M) Stockholders’ equity Preferred stock, par value $0.01 per share, 200,000,000 shares authorized,  none outstanding in 2003 and 2002 Common stock, par value $0.01 per share, 1,450,000,000 shares authorized,  418,136,000 and 408,209,000 shares outstanding in 2003 and 2002, respectively,  after deducting 168,000 and 97,000 treasury shares in 2003 and 2002, respectively 4 4 Additional paid-in capital 8,421 8,146 Accumulated other comprehensive income (2,194) (2,180) Treasury stock, at cost (6) (4) Retained earnings 2,937 2,904 Total stockholders’ equity 9,162 8,870 Total liabilities and stockholders’ equity $23,668 $23,946 CONSOLIDATED BALANCE SHEETS 33333333333333333333333333333333333333333 The accompanying notes are an integral part of the financial statements.