We continue to make significant strides in safety and wellness by implementing innovative programs and partnering with our employees, with regulators, and with our communities.

Occupational safety and health administration (OSHA) voluntary protection program (VPP)

VPP is OSHA’s premier program for recognizing worksites with exemplary safety programs that satisfy rigorous criteria. Our goal is to have all of our major U.S. sites participating in the OSHA VPP by 2013. Through 2011, we have 22 VPP “Star” certified locations, at which approximately 36,000, or 50%, of our employees work. Raytheon’s three largest operating locations, Andover, Mass.; El Segundo, Calif.; and Tucson, Ariz., have been awarded VPP “Star” certification and each represents the largest VPP site in their respective state.

Injury prevention

Providing an injury-free workplace is a priority at all levels of the company. From our board of directors, our CEO and senior leadership team, to employees on the shop floor, we are actively engaged in tracking our injury rates and taking steps to eliminate injuries.

In moving toward our ultimate goal of an injury-free workplace, Raytheon tracks three OSHA performance measures: recordable injury rate; lost workday injury rate; and Days Away/Restricted or Transferred Rate (DART). Since 1999, Raytheon has reduced its OSHA recordable injury rate by 72% and its lost workday injury rate by 65%. In 2011, through best-in-class safety programs and strong leadership engagement, our recordable injury rate decreased 21% from 0.73 to 0.58, our lost workday injury rate decreased 27% from 0.22 to 0.16 and our DART rate decreased 23% from 0.35 to 0.27.

Leading injury cases and solutions

The leading causes of injury within the company are ergonomics and slips, trips and falls. We define ergonomic injuries broadly to include repetitive motion injuries and other injuries that involve pushing, pulling, lifting or lowering. During 2011, in our continuing effort to incorporate Environmental, Health and Safety (EHS) considerations into Raytheon’s core processes, we successfully integrated safety and ergonomics into the Lean Manufacturing initiative. We also focused on reducing injuries through awareness initiatives, including an innovative EHS/Ethics vignette highlighting the risks of injury from slips, falls and distractions.

Integrated disability program

Raytheon is an industry leader in all phases of occupational and non-occupational disability management. Through the use of innovative tools, training and educational initiatives, we focus on early intervention and safe returns to a productive work setting.

These goals are accomplished through collaboration among key functional disciplines across the company. Our Integrated Disability Programs, Global Health Resources, EHS and Communications teams have partnered to reduce non-occupational injuries and illnesses by highlighting the need for employees to be safe both on and off the job. Through Raytheon’s extensive communications network, messages to employees build awareness of common non-occupational injuries and preventive techniques to ensure our employees’ health and safety.

Environmental, health and safety audits

Our robust EHS internal audit program performs approximately 25 audits per year to assess compliance with environmental, health and safety laws and regulations, as well as internal policies and standards. Locations are prioritized for audits based on risk and complexity of operations. The types of audits performed include compliance, OSHA VPP gap assessments and OSHA recordability.

Compliance

We look to our regulatory compliance record to help measure the effectiveness of our EHS audit program. In 2011, federal, state and local regulatory agencies conducted 142 environmental, health and safety inspections of Raytheon operating locations. Three notices of violation (NOV) were issued. Two related to electrical safety issues, with one resulting in a fine of $11,600. The third related to a point of contact update requirement on a safety plan, where no fine was assessed. We perform a thorough root-cause analysis for each NOV and share “lessons learned” across the company to prevent recurrence.

Mission:Health

Under the Mission:Health umbrella, the company offers comprehensive health and wellness programs, services and resources to employees and their families to encourage them to adopt and maintain healthy lifestyles. We strive to foster a culture that supports employee health through fitness programs, healthy eating choices, health screenings, and preventive health programs and resources, with a goal of healthier employees and increased productivity.

Since Mission:Health debuted in 2008, we have focused on conditions that are most prevalent among our employees and their families including heart disease, diabetes, cancer and musculoskeletal conditions. Because preventive care plays an important role in identifying disease and maintaining proper health, we actively encourage employees and their families to take advantage of these services.

Aggregate insurance claims data, which reflects the experience of our employee population as a whole, shows that our programs are taking effect. Over the last three years, there has been an increase in the number of people seeking preventive care and related screenings. The following sampling of milestones from June 2011 shows the progress being made:

In 2011, on-site employee health screenings were well attended at our facilities in the United States and Canada. Screenings included blood pressure, cholesterol, blood sugar, body mass index, waist circumference and health coaching. Additionally, employees are offered an online health risk assessment. Analysis of employees who completed the health risk assessment year over year shows improvement in nutrition, physical activity and reduced tobacco use.

The annual Healthy Worksite award recognizes Raytheon locations for supporting and fostering a culture of wellness and encouraging employee engagement. Of our 71,000 employees, approximately 55,000 work at a facility designated as a healthy worksite. The program’s strides in increasing healthy lifestyle awareness are evident. In 2011, 15 sites achieved the highest level awards (gold and platinum), compared with eight in 2010.

In 2011, “Operation: Eat Smart, Drink Smart, and Snack Smart” was rolled out in partnership with our food service vendor to encourage healthy eating choices across

Raytheon. The program provides healthy options in an easy to use format for employees using the onsite dining centers and vending machines. Wherever employees see the new logos, they know that item is a healthier choice.

International Programs and Services

As our international business grows, our Global Health Resources (GHR) organization is focused on ensuring that our health and wellness programs reach employees in all locations. International clinical team meetings facilitate information exchange and understanding of country-specific occupational requirements and encourage collaboration and participation in Wellness programming and GHR strategic initiatives. Participants include representatives from Canada, the United Kingdom, Spain, Germany, Saudi Arabia, the United Arab Emirates, Egypt and Australia. Over the last year, we have seen an increase in internationally-based employee participation in the Quit for Life® tobacco cessation program and the “Shape Up Raytheon” program.

Work/Life Programs

Raytheon offers a wide variety of customized programs and services to help our diverse workforce and their families cope with the everyday and out-of-the ordinary stresses that can affect health and productivity. In 2011, we continued to educate our employees about available services and programs, including:

• Integrated employee assistance program and resource and referral programs;
• Back-up care advantage program, providing child and adult care to employees when their usual care arrangements are unavailable;
• Enhanced eldercare program that provides in-home assessment, evaluation and recommendations for elder family members;
• Flexible work arrangements to maximize work/life effectiveness for employees;
• Financial counseling services;
• Group legal plan offering access to a nationwide network of attorneys who can help with a variety of legal matters; and
• Estate planning for special needs dependents.

In response to employee requests for assistance with autism-related issues, Raytheon introduced the Autism Support Program in 2011. Additionally, the Adoption Assistance benefit was enhanced in 2011, to provide employees further financial assistance with the adoption process.