The U.S. Securities and Exchange Commission has begun an “informal” investigation into Raytheon’s accounting practices, primarily related to the timing of revenue recognition at the company’s aircraft unit–and specifically its regional airliners. The revelation came just days after the Justice Department announced that Raytheon Aircraft paid some $4 million to settle a case related to allegations that it falsely billed the government for insurance costs incurred by its JPATS trainer program. Raytheon has not admitted wrongdoing in either case, however.
Characterizing the issue as “yesterday’s news,” Raytheon’s Jim Fetig refused to comment on the most recent SEC probe, the third such inquiry in as many years into the beleaguered aerospace giant. A statement released by Raytheon Co. indicated only that the investigation involved revenue reported at Raytheon Aircraft (RAC) between 1997 and 2001. “The company believes the accounting practices at RAC are appropriate, and it will cooperate fully with the SEC’s informal inquiry,” said the statement.
