RAYTHEON COMPANY 333 P63 333 COMPANY RESPONSIBILITY FOR FINANCIAL STATEMENTS 333333333333 The Audit Committee of the Board of Directors is composed solely of outside directors. The Audit Committee meets periodically and, when appropriate, separately with representatives of the inde- pendent auditors, Company officers, and the internal auditors to monitor the activities of each. The financial statements and related information contained in this Annual Report have been prepared by and are the responsibility of the Company’s management. The Company’s financial statements have been prepared in conformity with accounting principles gen- erally accepted in the United States of America and reflect judg- ments and estimates as to the expected effects of transactions and events currently being reported. The Company’s management is responsible for the integrity and objectivity of the financial state- ments and other financial information included in this Annual Report. To meet this responsibility, the Company maintains a sys- tem of internal accounting controls to provide reasonable assur- ance that assets are safeguarded and that transactions are properly executed and recorded. The system includes policies and procedures, internal audits, and Company officers’ reviews. Chairman and Chief Executive Officer Senior Vice President and Chief Financial Officer Upon recommendation of the Audit Committee, Pricewater- houseCoopers LLP, independent auditors, were selected by the Board of Directors to audit the Company’s financial statements and their report follows. principles used and significant estimates made by manage- ment, and evaluating the overall financial statement presen- tation. We believe that our audits provide a reasonable basis for our opinion.  To the Board of Directors and Stockholders of Raytheon Company In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, stock- holders’ equity and cash flows present fairly, in all material respects, the financial position of Raytheon Company and its subsidiaries at December 31, 2003 and 2002, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2003 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial state- ments are free of material misstatement. An audit includes exam- ining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting January 26, 2004, except as to the second paragraph of Note B as to which the date is February 23, 2004, the last paragraph of Note J as to which the date is February 11, 2004 and the last para- graph of Note K as to which the date is March 1, 2004  As discussed in Note A to the consolidated financial state- ments, in 2002 the Company changed its method of accounting for goodwill and other intangible assets in accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, and its method of accounting for long-lived assets and discontinued operations in accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Boston, Massachusetts REPORT OF INDEPENDENT AUDITORS 3333333333333333333333333333333333333