COMPENSATION DISCUSSION AND ANALYSIS RAYTHEON | 2017 Proxy Statement 33

The following are the companies that made up the peer groups for purposes of 2016 compensation:

“Core Peers” • General Dynamics Corporation • Northrop Grumman Corporation • Harris Corporation • Textron Inc. • Honeywell International, Inc. • The Boeing Company roup

G • L-3 Communications Holdings, Inc. • United Technologies Corporation • Lockheed Martin Corporation Additional Peers • 3M Company • Johnson Controls International plc • EMC Corporation • Parker-Hannifin Corporation • Eaton Corporation plc “Broader” Peer • Emerson Electric Co. • Illinois Tool Works Inc.

The following chart shows how Raytheon compares to the core peer group and the broader peer group on several fundamental metrics.

FY 2016 MARKET CAP EMPLOYEES COMPANY INDUSTRY REVENUE ($M) AS OF 12/31/16 ($M) AS OF 12/31/16 Raytheon Aerospace and Defense 24,100 41,600 63,000 Core Peers • General Dynamics Corporation Aerospace and Defense 31,400 52,200 98,800 • Harris Corporation Aerospace and Defense 7,500 10,300 21,000 • Honeywell International Inc. Aerospace and Defense/ Electrical Equipment 39,300 88,100 131,000 • L-3 Communications Holdings, Inc. Aerospace and Defense 10,500 11,800 38,000 • Lockheed Martin Corporation Aerospace and Defense 47,200 72,200 97,000 • Northrop Grumman Corporation Aerospace and Defense 24,500 40,700 67,000 • Textron Inc. Aerospace and Defense 13,800 13,100 36,000 • The Boeing Company Aerospace and Defense 94,600 96,100 150,500 • United Technologies Corporation Aerospace and Defense/ Electrical Equipment 57,200 88,700 201,600 Additional Peers • 3M Company Consumer Discretionary/ Containers and Packaging 30,100 106,600 90,000 • Eaton Corporation plc Electrical Equipment 19,700 30,300 95,000 • EMC Corporation(1) Technology 24,600 53,200 • Emerson Electric Co. Electrical Equipment 14,500 35,000 103,500 • Illinois Tool Works Inc. Industrials 13,600 42,500 50,000 • Johnson Controls International plc Automotive/Electrical Equipment 37,700 43,500 135,000 • Parker-Hannifin Corporation Machinery 11,400 14,500 48,950

Source: Bloomberg (1) EMC revenues are for trailing twelve months ended June 30, 2016, and market capitalization is as of June 30, 2016. EMC was acquired by Dell Technologies in September 2016.