The Company currently estimates that pension plan cash contri- butions will be approximately $320 million in 2004 and $315 mil- lion in 2005. These estimates are based upon certain assumptions, outlined above in Critical Accounting Policies, and contemplate passage of the Pension Funding Equity Act, which will provide a certain amount of pension funding relief to the Company. The esti- mate for 2005 is subject to change and will not be known with cer- tainty until the Company’s SFAS No. 87 assumptions are updated at the end of 2004. Estimates for 2006 and beyond have not been provided due to the significant uncertainty of these amounts, which are subject to change until the Company’s SFAS No. 87 assump- tions can be updated at the appropriate times. In addition, pension contributions are eligible for future recovery through the pricing of products and services to the U.S. government, therefore, the amounts noted above are not necessarily indicative of the impact these contributions will have on the Company’s liquidity. 

At December 31, 2003, RAC had unconditional purchase obli- gations of $29 million primarily related to component parts for the Horizon aircraft with varying purchase quantities for up to 200 air- craft. In addition, the Company’s defense businesses may enter into purchase commitments which can generally be recovered through the pricing of products and services to the U.S. govern- ment. These unconditional purchase obligations are not included in the table above. 

## 333 ACCOUNTING STANDARDS 

In January 2003, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 46, Consolidation of Variable Interest Entities, an interpretation of ARB No. 51 (FIN 46). FIN 46 addresses the consolidation of certain variable interest enti- ties (VIEs) and may be applied prospectively with a cumulative effect adjustment or by restating previously issued financial state- ments with a cumulative effect adjustment as of the beginning of the first year restated. In December 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, an interpretation of ARB No. 51 (FIN 46R). FIN 46R significantly narrowed the original scope of FIN 46 by excluding entities possessing certain characteristics, among other things. FIN 46R deferred the effective date of FIN 46 for interests held in VIEs created before February 1, 2003, except for special purpose entities as defined by FIN 46R, until the end of the first interim period ending after March 15, 2004. The adoption of FIN 46R is not expected to have a material effect on the Company’s financial position or results of operations. 

In December 2003, the FASB issued Statement of Financial Accounting Standards No. 132 (revised 2003), Employers’ Disclosures about Pensions and Other Postretirement Benefits, an amendment of FASB Statements No. 87, 88, and 106. Information about foreign plans is required by this accounting standard for 

fiscal years ending after June 15, 2004, including additional disclo- sures about assets, obligations, cash flows, and net periodic bene- fit cost of defined benefit pension plans and other defined benefit postretirement plans. 

## 333 FORWARD-LOOKING STATEMENTS 

Certain statements made in this report, including any statements related to the Company’s future plans, objectives, and projected future financial performance, contain or are based on, forward- looking statements within the meaning of the federal security laws. Specifically, statements that are not historical facts, including statements accompanied by words such as “believe,” “expect,” “estimate,” “intend,” or “plan,” and variations of these words and similar expressions, are intended to identify forward-looking state- ments and convey the uncertainty of future events or outcomes. The Company cautions readers that any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks, and actual results may differ materially. The Company expressly disclaims any current intention to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this report. Important factors that could cause actual results to differ include, but are not limited to: the ability to obtain or the timing of obtaining future government awards; the availability of government funding; changes in government or customer priorities due to program reviews or revisions to strategic objectives; difficul- ties in developing and producing operationally advanced tech- nology systems; termination of government contracts; program performance, including resolution of claims, particularly at Network Centric Systems; timing of contract payments; the performance of critical subcontractors; government import and export policies and other government regulations; the ultimate resolution of contingen- cies and legal matters, including investigations; the effect of market conditions, particularly in relation to the general aviation and com- muter aircraft markets; the uncertainty of the timing and amount of net realizable value of Boeing Business Jet-related assets; risks inherent with large long-term fixed price contracts, particularly the ability to contain cost growth and programs which anticipate signif- icant future cost improvements; conflicts with other investors in joint ventures and less than wholly-owned businesses; the Company’s lack of construction industry expertise resulting from the Company’s sale of its former engineering and construction businesses; and the impact of change orders, the recoverability of the Company’s claims, and the outcome of defending claims asserted against the Company; among other things. Further infor- mation regarding the factors that could cause actual results to dif- fer materially from projected results can be found in the Company’s filings with the Securities and Exchange Commission, including “Item 1-Business” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003. 

