Domestic Side Outlook
Joseph Nadol – JPMorgan: I like it to drill down into the bookings a little bit and really focus on domestic, of course the international always bounce around and are usually strong at the end of the year. But, and then just looking at the last five years data at least, I don’t see a quarter with below $5 billion of total bookings. Obviously, you are well below that level, and I heard what you said about the ramp-up throughout the year. I guess, really the question is what gives you confidence, given the sequester just happened that you are going to see that sequential ramp on the domestic side?
David C. Wajsgras – SVP and CFO: Joe, bookings were always planned to ramp up throughout the year, and Q1 actually played out a little bit better than what we were expecting. We discussed on the January call that we had about $1 billion come into last year’s fourth quarter. Particularly in missiles and our missile defense businesses. As I just said a moment ago we do expect a cadence of both domestic and international bookings to increase throughout the year. If you look at the last six months given some of this timing our quarterly bookings averaged about $5.7 billion and over the trailing four quarter basis it was about 1.02. The cadence for this year is not dramatically different from what we saw last year. I think with that Bill may want to add a couple of things.
William H. Swanson – Chairman and CEO: I think the easiest way is to go through our businesses and IDS expects about half of their business to be international and those will be dominated by the Patriot awards we’ve got Kuwait that’s finished all the military reviews and has gone over to their Parliament for final signature. So we kind of see that in maybe the latter half of Q2 or early part of Q3, we can touch it’s not an issue, little over $500 million decision in Turkey probably in Q2 award latter half of this year. (I got her) also late this year and that could be a couple of billion. We see Oman, Oman has turned out nice for us. They’ve already placed an order for AMRAM. So we see that the tying together all the air defense work there. And domestically for them they’ve got naval radars (indiscernible) and Zumwalt and then missile defense work and of course as I mentioned AMDR and space defense if we go over to IIS we don’t see any composition change in their bookings our customers shifted from yearly funding to quarterly funding now to monthly funding. So that’s kind of reflected in how we look at things and half of their awards are all driven by classified. Missiles’ expects international bookings probably here in the second quarter on AMRAAM and Oman will be part of that. Of course, we see strong interest in RAM and Evolved SeaSparrow. Paveway, Mid-East I think, you’re aware and others are aware that Secretary Hagel is over talking packages with those countries. So, we expect missiles to be in good shape. Referring to NCS, over a third of their bookings were in international and on the domestic side a number of opportunities. In fact this morning the wire just announced that we won D-RAPCON, which is a Mobile Air Traffic Control system. Initial award $252 million, we’ll get a $50 million development contract. So that was planned probably in the first quarter, it happens in the second quarter. We all know bookings are lumpy, but we look at them on a total basis and Dave kind of gave you some insights there. SAS sees about a third of their bookings, international the biggest piece related. Our tactical airborne radars in South Korea gives us a good start on that one. Finally, our Technical Services, we see the range of training, logistics programs, about 25% of that is international. So that’s a quick rundown in my mind going through the businesses. I got to remind everybody that 30% of our – 30 of our contracts represent a quarter of our business, 128 contracts represented the 50%, and then if you look, the last half of our sales are driven by 15,000 contracts that represent $1.5 million to $2 million worth of business, and that’s this company and that’s what makes it so strong, because we convert the smaller programs into bigger programs later on in time, and hopefully that answers your question…
Joseph Nadol – JPMorgan: That’s very helpful. Just one more number. Of the 23.5 half this year, how much of that do you expect to be international, please?
William H. Swanson – Chairman and CEO: About 29% to31%. Of course, that could be bigger.
Hagel Strategic Interview
Carter Copeland – Barclays Capital: Bill, I wondered if you could speak briefly on the Hagel strategic review, and your views on – I know it’s tough to call likely findings, but when we look at the recent change and posture in the pivot to the Pacific, we’ve got, a sort of recently redone defense strategy. When you take that in mind and say what it is that Secretary Hagel is going to end up concluding, what do you think the focus of that review will be on? Does it – is it more related to that strategy or is it more related to the realities of the budget and how we’re going to prioritize spending. Any color you could provide would be really helpful…
William H. Swanson – Chairman and CEO: Okay, let me take a short, I’m not in charge of the building, so remember that when I’m going to give you my opinion. I think having recently heard Deputy Secretary, Dr. Ash Carter speak. Clearly, the department is trying to make sure that they are leaner, they are more flexible, they are going to be smaller and they are going to have to be able to adapt and there is a focus on the Asia-Pacific region. There has been 60 years of peace there and the United States wants to make sure our allies and our friends over there continue to enjoy another 60 years of peace. That doesn’t mean from a standpoint that the threat is China as some people predict but it’s more of how do we make sure that North Korea and others don’t threaten the well-being of our friends and allies over there. So I think part of the strategy is how do we do that probably more of a focus on naval it will be a repositioning of personnel probably in places they haven’t been before, but that’s because they’ve been fighting a battle in Iraq or Afghanistan. So from my standpoint, I think Special Ops are going to get more attention. They are quicker. I think companies are going to have to have technology and things they can put on the table rather than view graphs which appeals to us. I also see a real attention to cyber and I break the cyber down into three areas, those areas would be the network, they would be in cyber weapons and they’d be in infrastructure. That’s where part of the focus is going to be there and of course you all know that that’s what we’ve been doing for the four or five years here getting ready for what we thought was coming. So I think there will be a strategy and then you tie your funds to your strategy no different than what you do in a company and I expect them to do that in a thoughtful way.
Carter Copeland – Barclays Capital: One for Dave, just quickly. Dave can you clarify what the difference in year-over-year the contribution from net EAC cum catches was.
David C. Wajsgras – SVP and CFO: On that basis it was essentially flat it’s around $140 million last year’s first quarter and roughly $140 million this year.
A Closer Look: Raytheon Company Earnings Cheat Sheet>>