Raytheon Co.

Washington, DC: (Mar-15-07) The US Securities and Exchange Commission filed charges against three former Raytheon Co. executives, Franklyn Caine, former chief financial officer; Edward Pliner, former controller; and James Gray, former chief financial officer of Raytheon Aircraft Co. The lawsuit accused them of improper accounting involving Raytheon's commercial aircraft unit. The SEC claimed that Raytheon improperly recognized revenue between 1997 and 1999 on Raytheon Aircraft Co.'s sale of unfinished aircraft through "bill and hold" sales transactions, which led to material overstatements of annual net sales revenue and operating income in 1997 and 1998. The transactions resulted in the failure to recognize between $67 million and $240 million in losses. The three agreed to settle and pay a total $1.5 million. [REUTERS: RAYTHEON ACCOUNTING]

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Published on Mar-19-07