Balance Sheet Strength

We have also worked hard to strengthen the balance sheet. In September 2008, our senior debt rating was upgraded by both Fitch and Standard & Poor's to A-. We ended the year in a strong cash position, with our cash on hand nearly equal to our debt outstanding, which means our net-debt was near zero.

The result of our solid balance sheet is that we have been able to both invest in our businesses' future and to return cash to shareholders through increased dividends and share repurchases. Clearly, it was a tumultuous year in financial markets and in the economy, and none of us are immune to these forces. At Raytheon, we did see an impact from market performance on our pension plan investments. We made $660 million in discretionary cash contributions to the plans in 2008 and $900 million in 2007. While the near-term outlook for the financial markets and the economy continues to be uncertain, we remain committed to continue to meet our pension obligations going forward.