Raytheon Investigated By SEC

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The point at which the sale of an aircraft becomes complete appears to be the source of a Securities and Exchange Commission investigation into Raytheon Aircraft's accounting practices. Raytheon itself announced the investigation, figuring, in the post-Enron era, that it "would be the best practice," company spokesman James Fetig told The Wichita Eagle. Prior to December of 1999, Raytheon reported the revenue from a sale on the date the deal was made. The SEC wanted the revenue reported on delivery, which Raytheon did; it was forced to reduce its reported earnings for the fourth quarter of 1999 by $57 million, or 11 cents per share. The investigation will look at whether Raytheon went back far enough in its revenue adjustments and restated them correctly. Aerospace industry expert Cai von Rumohr told the Eagle the SEC investigation is a minor issue compared to the company's other current troubles. One of its Beech 1900D commuter aircraft crashed two weeks ago in Charlotte, N.C., and Raytheon had to accept shares in lieu of cash with an airline and a fractional ownership company that couldn't meet their obligations.