SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-K

/X/  Annual Report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934 [Fee Required] for the fiscal year ended
     December 31, 1995.

/ /  Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934 [No Fee Required] for the transition period
     from............... to ..............

                          Commission File Number 1-2833

                                RAYTHEON COMPANY
             (Exact Name of Registrant as Specified in its Charter)

            DELAWARE                                  04-1760395
 (State or Other Jurisdiction of     (I.R.S. Employer Identification No.)
Incorporation or Organization)

                141 SPRING STREET, LEXINGTON, MASSACHUSETTS 02173
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's telephone number, including area code (617) 862-6600

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class                  Name of Each Exchange on Which Registered

Common Stock, $1.00 par value        New York Stock Exchange
Preferred Stock, No par value        Chicago Stock Exchange
                                     Pacific Stock Exchange

        Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes .X. No ...

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [x]

The aggregate market value of the voting stock held by non-affiliates of the
Registrant, as of February 23, 1996, was approximately  $12,457,336,422.  For
purposes of this disclosure, non-affiliates are deemed to be all persons other
than members of the Board of Directors of the Registrant.

Number of shares of Common Stock outstanding as of February 23, 1996:
240,141,425

     Documents incorporated by reference and made a part of this Form 10-K:

Portions of Raytheon's Annual Report                Part I, Part II, Part IV
to Stockholders for the fiscal year
ended December 31, 1995

Portions of the Proxy Statement for Raytheon's             Part III
1996 Annual Meeting which will be filed with the
Commission within 120 days of the close of
Raytheon's fiscal year


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                                                    PART I

ITEM 1.       BUSINESS

                                                    GENERAL

     Raytheon is an international, high technology company which operates in
four businesses: commercial and defense electronics, engineering and
construction, aircraft and major appliances.  Historically the Company's
principal business has been the design, manufacture and servicing of advanced
electronic devices, equipment and systems for government and commercial use,
and Raytheon remains a top tier defense contractor in the United States.
Through a diversification program begun in 1964, Raytheon has become a major
competitor in engineering and construction services, aircraft products and
major appliances.  In recent years, the Company has strengthened its
businesses through consolidation, operational improvement and acquisitions and
has diversified core defense technologies into commercial markets while
remaining a strong defense company.

     Sales to the United States Government (the "Government"), principally to
the Department of Defense ("DOD"), were $4.677 billion in 1995 and $3.930
billion in 1994 representing 39.9% of total sales in 1995 and 39.3% in 1994.
Of these sales, $597 million in 1995 and $694 million in 1994 represented
purchases made by the Government on behalf of foreign governments.

                      ENGINEERING AND CONSTRUCTION SEGMENT

     The Engineering and Construction segment is one of the largest
engineering, construction and operations and maintenance organizations in the
world with approximately 16,000 employees.  It offers a full range of program
management capabilities including project planning, financing, process
development, engineering, design, construction, start-up, operations and
maintenance services.  Its markets include: fossil and nuclear power;
petroleum and gas; polymers and chemicals; pharmaceuticals and biotechnology;
metals, mining, and light industry; food and consumer products; environmental
services, including chemical munitions destruction; infrastructure and
transportation; test range, base and facilities management and maintenance;
and air traffic control support services.

     Raytheon Engineers & Constructors was formed in 1993 through the
consolidation of United Engineers & Constructors, Badger, Raytheon Service
Company and Cedarapids.  During 1993 Raytheon Engineers & Constructors
acquired the infrastructure, power and construction operations of Ebasco
Services Incorporated.  In July 1995 Raytheon Engineers & Constructors
purchased assets of Houston-based Litwin Engineers & Constructors, adding to
the Company's refining and petrochemical capabilities.

     Raytheon Engineers & Constructors undertakes some engineering and
construction projects on a firm fixed price basis ("lump sum turnkey) and as
a result benefits from cost savings and carries the burden of cost overruns.

     Raytheon Service Company is one of the nation's leading government
technical support contractors.  It provides operations, maintenance and
support services for many U.S. defense systems, including SSPARS and BMEWS
early warning radars; the U.S. Air Force's Eastern Range and the Army's
Kwajalein Missile Range in the Pacific.  Raytheon also provides technical
support services to the Federal Aviation Administration.

     The segment offers rock-crushing, asphalt-mixing and asphalt-paving
equipment under the Cedarapids name to customers in the U.S. and
internationally.  It also performs steel and vessel fabrication and markets
on-site soil remediation systems that remove gasoline and diesel fuel
contaminants.


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                                AIRCRAFT SEGMENT

     In 1994 Raytheon combined Beech Aircraft and Raytheon Corporate Jets to
form Raytheon Aircraft.  The segment offers the broadest product line in
general and business aviation manufacturing, marketing and supporting
piston-powered aircraft, turboprops and midsize and light jets for the world's
commercial, regional airline and military markets.

     Raytheon Aircraft's piston-powered aircraft line includes the famous
single-engine Beech Bonanza and the twin-engine Beech Baron aircraft purchased
for business and personal flying.  The segment's King Air jetprop series --
introduced in 1964 -- includes the Beech King Air's C90, B200 and 350, which
have outsold every line of business jet and turboprop since entering the
market.  The jet line includes the Beechjet 400A and the Hawker midsize
business jet line consisting of the Hawker 1000 and the Hawker 800XP (Extended
Performance).  The 800XP was recently introduced as the latest version of the
800 series.  In September 1995 Raytheon Aircraft introduced a new light
business jet, the Raytheon Premier I, which should first fly during the summer
of 1997 and be FAA certified by the fall of 1998.  Raytheon Aircraft is the
leading producer of 19-passenger regional airliners known as the Beech 1900D
stand-up cabin aircraft sold to commuter airlines and corporate customers.

     The segment supplies aircraft training systems for the military, including
the Beech Pilatus PC-9MkII trainer selected as the next-generation trainer for
the U.S. Air Force and Navy under the Joint Primary Aircraft Training (JPATS)
contract.  Deliveries are scheduled to begin in 1998.  Raytheon Aircraft also
produces the U.S. Air Force's T-1A trainer, the military counterpart of the
Beechjet 400A light jet, a C-12 militarized version of the King Air B200 and
the U-125 search-and-rescue variant of the Hawker 800.  It also produces two
missile target drones for U.S. and allied forces.

     Raytheon Aerospace manages more than 1,200 aircraft at over 300 sites
around the world and provides total contractor logistics and training support
for military and other government aircraft and missile target systems.
Raytheon Aircraft Services operates a network of business aviation service
operations at airports across the U.S.


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                            MAJOR APPLIANCES SEGMENT

     The Major Appliances segment, which consists of Amana Refrigeration, Inc.
and Speed Queen Company, manufactures and sells household and commercial
appliances under the Amana, Speed Queen, Caloric, Modern Maid, Sunray,
Huebsch, Menumaster and UniMac brand names.  Products include refrigerators,
gas and electric ranges, cooktops, wall ovens and microwave ovens, home
washers and dryers and commercial laundry equipment for use in coin laundries
and institutional settings, freezers, dishwashers, room air conditioners,
furnaces, central air conditioning systems, heat pumps and commercial
microwave ovens.  These products are sold to dealers for resale to the
customer and to home builders for incorporation into new homes and apartments.

     Raytheon Appliances offers several industry-exclusive features including
top load laundry equipment with stainless steel wash baskets and dryer drums;
quartz halogen cooktops with ten-position, variable intensity control systems
for more even heating; the first compact commercial convection microwave oven
in North America; and the first complete line of CFC-free refrigerators.

     The Company's heating and air conditioning, refrigerator and microwave
oven, cooking appliance and laundry manufacturing facilities are the first
U.S. plants in their respective industries to be certified to ISO 9001, the
most stringent of the ISO 9000 international series of manufacturing quality
standards.

                               ELECTRONICS SEGMENT

     Raytheon's principal business is the design, manufacture and servicing of
advanced electronic devices, equipment and systems for governmental and
commercial customers.  In January 1995, the Company combined its Missile
Systems, Equipment, Electromagnetic Systems and Research divisions with Amber
Engineering, Inc., Seiscor Technologies, Inc. to form the Raytheon Electronic
Systems Division ("RES").

     Raytheon Electronic Systems.  RES produces the Patriot ground-based air
defense missile system, which accounted for over $1 billion in sales in 1995.
In addition to the U.S., seven foreign nations have selected Patriot,
including Germany, The Netherlands, Israel, Japan, Saudi Arabia, Kuwait and
the Republic of China (Taiwan).  Since the end of the Gulf War in 1991,
Raytheon has received more than $3 billion in foreign orders for Patriot
equipment and services.  RES also is the prime contractor for the Hawk
ground-launched missile, which is owned by 20 allied nations in addition to
the U.S.  A Raytheon and Hughes Aircraft Company joint venture was selected
as one of two winners of a U.S. Army competition for the program
definition/validation phase of the Medium Extended Air Defense System, a
U.S./European program also known as the U.S. Army's Corps Surface-to-Air
Missile program, which will provide U.S. and allied forces with missile
batteries, sensors and command and control systems that will move with and
protect maneuver forces from observation and attack by enemy air forces and
tactical missiles.  RES manufactures the U.S. Navy's Standard Missile and is
the design agent for the next-generation Standard Missile-2 Block IV.  The
Company produces the Sparrow, which is used as a surface Navy missile in the
U.S. and in both the surface navy and air-launched missions in allied forces.
RES co-produces the primary air-to-air missile for U.S. Air Force and Navy
fighter aircraft -- the Advanced Medium Range Air-to-Air Missile -- and is one
of two contractors selected by the U.S. Navy to perform the initial
development of the next-generation Sidewinder missile.  RES is the prime
contractor for the U.S. Army's Enhanced Fiber Optic Guided Missile
demonstration program, which will provide rapidly deployable, lethal and
highly survivable technologies to the U.S. early entry forces.  RES is a major
developer of ground-based phased-array radars, including the Ground-Based
Radar for the Theater High Altitude Area Defense system, the U.S. Army's
newest Theater Missile Defense program, and is developing for deployment to
Kwajalein the Radar Technology Demonstrator phased array.  These highly

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advanced, solid state radars provide surveillance, tracking and fire control
for both Theater and National Missile Defense.  RES has also developed and
upgraded several strategic surveillance and early warning radar systems
including Pave Paws, the Ballistic Missile Early Warning System, Cobra Dane
and Cobra Judy.  RES produces a variety of shipboard radar systems for the
Arleigh Burke-class destroyers such as the Aegis AN/SPY-1D transmitters and
Mk 99 fire control units.  Nearly every U.S. Navy ship carries at least one
Raytheon radar/fire control system, which includes the Tartar, SPS-49 and
Seasparrow systems.

     RES builds military communications systems, including the Air Force's
Milstar satellite communications terminals and the Navy's Extremely High
Frequency Satellite Communications Program terminals.  RES also builds a
family of militarized computers and workstations and last year won a contract
to replace the mission computer on the Navy's E-2C surveillance aircraft using
a Raytheon-developed Model 940 computer based on Digital Equipment
Corporation's 64-bit Alpha chip technology.

     Through its UK subsidiary, Cossor Electronics Limited, RES produces a full
line of IFF interrogators and transponders as well as military global
positioning system receivers and nulling adaptive antennas.  Cossor is also
a world leader in manufacturing airport secondary surveillance radars.

     RES develops sonars, combat control systems and minehunting equipment for
submarines and ships in U.S. and allied fleets in addition to designing
unmanned underwater vehicles and laser sensors, including the CCS Mk 2
submarine combat control system upgrade, the AN/SQQ-32 minehunting sonar
system and the Mk 30 Mod 2 training target system for antisubmarine warfare
training.

     RES Engineering Laboratories perform applied research on advanced
materials, electro-optics, infrared detectors, digital technology and
microwave semiconductors.  The laboratories are making important contributions
in the areas of advanced microwave and millimeter-wave components for radar
and missile guidance systems and military communications; flat panel field
emission displays; electronically steered optical phased array development;
surface acoustic wave stabilized oscillator technology; diamond coating
technology; and free-standing diamond plate development.

     E-Systems, Inc.  In May 1995, Raytheon completed the acquisition of
E-Systems, Inc. of Dallas, Texas, a $2 billion defense and government
electronics company specializing in intelligence, reconnaissance and
surveillance systems; command and control; specialized aircraft maintenance
and modification; guidance, navigation and control, communications and data
systems.  The acquisition is the largest in Raytheon's 73-year history.

     E-Systems' core business is focused on intelligence, reconnaissance and
surveillance.  Many of these programs are classified, involving the
development or upgrading of sensors, platforms, ground processing of and
integration of complex systems.  In 1994, E-Systems won major P3-C airframe
refurbishment contracts from the U.S. Navy and the Royal Australian Air Force.
The Australian contract covers upgrades to all mission equipment and cockpit
displays, communications and navigation systems and the integration of new
equipment.  The U.S. Navy project is designed to extend the operational life
of its P-3C maritime patrol aircraft fleet.  In the area of Command,
Communications and Control, E-Systems was awarded a U.S. Navy contract in 1994
for the Cooperative Engagement Capability program and is developing a system
that will network information from every ship in a battle group to extend
perimeter defenses and vastly improve reaction time.  E-Systems has a number
of other products in the C3 area, including the advanced narrowband digital
voice terminal -- 7,000 of which were shipped in 1994 -- and the Commander's
Tactical Terminal, or CTT, which is the only family of intelligence
dissemination terminals supporting military communications networks.


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     Using its global positioning system ("GPS") technology, E-Systems is
upgrading the antenna electronics for the U.S. Air Force by providing
performance enhancements to jam-resistant antenna subsystems.  E-Systems
designs and builds advanced electronic countermeasures systems to protect U.S.
and allied ships and planes against enemy strikes.  These systems include the
AN/ALQ-184 airborne countermeasures pod for the Air Force and AN/SLQ-32
shipboard jamming system for the Navy.  E-Systems also has considerable
capabilities in large scale image processing and advanced signal processing.

     Commercial Initiatives.  Raytheon has successfully expanded its defense
capabilities into commercial markets such as environmental monitoring, air
traffic control, transportation and data management.  A leader in the field
of wide-area environmental surveillance, RES has been awarded a contract to
develop and produce the System for the Surveillance of the Amazon (SIVAM)--an
environmental monitoring system that will help Brazil protect natural
resources, sustain economic growth and support proper land use, conservation
and development in the Amazon region.  The system is based on an integrated
network of telecommunications, remote satellite sensing and imagery and
ground-based and airborne sensors controlled by regional and national
coordination centers.  Raytheon also has developed the Guardian airborne
surveillance system which performs extensive data gathering activities for
missions ranging from environmental control to drug interdiction.  E-Systems'
capabilities in environmental monitoring include expertise in aircraft
integration and ground-based image processing.

     RES designs and installs air traffic control and weather systems at
airports worldwide, including airports in The Netherlands, India, Norway,
Switzerland, Germany, Oman, Hong Kong, China and Taiwan.  Raytheon's Terminal
Doppler Weather Radar system, which is being installed at 47 airports across
the U.S. and Puerto Rico and in Hong Kong, uses Doppler radar technology to
warn air traffic controllers of sudden wind shifts -- such as microbursts --
which have been blamed for numerous aircraft accidents, particularly during
takeoff or landing.  In air traffic control, E-Systems is using its
differential GPS to demonstrate the feasibility of performing low-visibility
landings of commercial aircraft.  The Company is also modifying avionics and
installing additional modifications for commercial flight inspection aircraft,
which will be used by the Federal Aviation Administration to verify civilian
airport equipment as operational and accurate.

     In partnership with the Regional Transportation Authority of Northeastern
Illinois, RES is developing a Personal Rapid Transit that will enable people
to travel to their destinations on demand and without intermediate stops.
E-Systems offers capabilities in the transportation management market with
cellular traffic management systems, GPS vehicle tracking systems and
geostationary satellite vehicle tracking systems.  E-Systems recently received
a contract for an advanced communication system that will track and manage
1,600 vehicles for the city of Houston.  E-Systems also has strong
capabilities in communications and data management technologies, including
data storage and retrieval systems; image management and communications
networks for medical applications; and the development and maintenance of a
nationwide computer network to catalog and track all student loans for the
U.S. Department of Education.

     Raytheon Electronics.  Raytheon Electronics consists of  Raytheon Marine
Company, Raytheon Semiconductor, Seiscor Technologies, Inc., Raytheon
Microelectronics and Raytheon Switchcraft.

     Raytheon Marine supplies marine radars, depth sounders, radiotelephones,
autopilots, fish finders, ECDIS and navigation aids, Loran and GPS receivers
and other marine electronics under the Raytheon, Apelco and Autohelm labels
in the U.S. and abroad.  In 1995, Raytheon acquired the marine navigation
business of Anschuetz & Co. GmbH of Kiel, Germany -- one of the world's
leading manufacturers of gyro compasses, autopilots, steering control systems,
and integrated bridge systems for the commercial and military marine market.

     In microelectronics and components Raytheon is developing the Main Mission

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Antenna transceiver systems for the IRIDIUM global satellite communications
project, which is designed to provide voice, paging, data, facsimile and
location services anywhere on Earth.  The antenna systems use Raytheon
microelectronics' gallium arsenide monolithic microwave integrated circuit
("MMIC") technology.  Raytheon is also using its MMIC technology to develop
direct broadcast satellite television receivers, wireless local area networks
and next-generation digital cellular phones.

     Raytheon also produces a line of silicon semiconductor components --
specializing in video custom designs -- at its Semiconductor Division.
Raytheon provides a wide range of electronic components under the Switchcraft
label, including jacks and plugs, switches and connectors.  Raytheon designs
and manufactures telephone transmission equipment, including state-of-the-art
digital loop-carrier equipment at its Seiscor Technologies subsidiary.

     During the fourth quarter of 1995, Raytheon sold its D.C. Heath and
Company publishing division to Houghton Mifflin Company for $455 million.

     Financial information about Operations by Business Segments and
     Operations by Geographic Areas is contained on page 46 of Raytheon's
     1995 Annual Report to Stockholders and is incorporated herein by
     reference.

                              GOVERNMENT CONTRACTS

     The Company and various subsidiaries act as a prime contractor or major
subcontractor for many different Government programs including those that
involve the development and production of new or improved weapons or other
types of electronics systems or major components of such systems.  Over its
lifetime, a program may be implemented by the award of many different
individual contracts and subcontracts.  The funding of Government programs is
subject to congressional appropriations.  Although multi-year contracts may
be authorized in connection with major procurements, Congress generally
appropriates funds on a fiscal year basis even though a program may continue
for many years.  Consequently, programs are often only partially funded
initially and additional funds are committed only as Congress makes further
appropriations.  The Government is required to adjust equitably a contract
price for additions or reductions in scope or other changes ordered by it.

     Generally, Government contracts have provisions for audit, price
redetermination and other profit and cost controls and limitations and may be
terminated, in whole or in part, without prior notice at the Government's
convenience upon the payment of compensation only for work done and
commitments made at the time of termination.  In the event of termination, the
contractor may also receive some allowance for profit on the work performed.
The right to terminate for convenience has not had any significant effect upon
Raytheon's business in light of its total Government business.

     The Company's Government business is performed under both cost
reimbursement and fixed price prime contracts and subcontracts.  Cost
reimbursement contracts provide for the reimbursement of allowable costs plus
the payment of a fee.  These contracts fall into three basic types: (i) cost
plus fixed fee contracts which provide for the payment of a fixed fee
irrespective of the final cost of performance; (ii) cost plus incentive fee
contracts which provide for increases or decreases in the fee, within
specified limits, based upon actual results as compared to contractual targets
relating to such factors as cost, performance and delivery schedule; and (iii)
cost plus award fee contracts which provide for the payment of an award fee
determined in the discretion of the customer based upon the performance of the
contractor against pre-established criteria.  Under cost reimbursement type
contracts, Raytheon is reimbursed periodically for allowable costs and is paid
a portion of the fee based on contract progress.  Some costs incident to
performing contracts have been made partially or wholly unallowable by statute
or regulation.  Examples are charitable contributions, travel costs in excess

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of government rates and certain litigation defense costs.

     The Company's fixed price contracts are either firm fixed price contracts
or fixed price incentive contracts.  Under firm fixed price contracts,
Raytheon agrees to perform the contract for a fixed price and as a result
benefits from cost savings and carries the burden of cost overruns.  Under
fixed price incentive contracts, Raytheon shares with the Government savings
accrued from contracts performed for less than target costs and costs incurred
in excess of targets up to a negotiated ceiling price (which is higher than
the target cost) and carries the entire burden of costs exceeding the
negotiated ceiling price.  Under such incentive contracts, The Company's
profit may also be adjusted up or down depending upon whether specified
performance objectives are met. Under firm fixed price and fixed price
incentive type contracts, The Company usually receives progress payments
monthly from the Government generally in amounts equalling 85% of costs
incurred under the contract.  For contracts and modifications issued after
November 11, 1993, progress payments may not exceed 75% of incurred costs.
The remaining amount, including profits or incentive fees, is billed upon
delivery and final acceptance of end items under the contract.

     The Company's Government business is subject to specific procurement
regulations and  a variety of socio-economic and other requirements.  Failure
to comply with such regulations and requirements could lead to suspension or
debarment, for cause, from Government contracting or subcontracting for a
period of time.  Among the causes for debarment are violations of various
statutes, including those related to employment practices, the protection of
the environment, the accuracy of records and the recording of costs.  The
Company has not, at any time, been debarred or suspended.

     Under many Government contracts, the Company is required to maintain
facility and personnel security clearances complying with DOD requirements.

     Companies which are engaged in supplying defense-related equipment to the
Government are subject to certain business risks peculiar to that industry.
Among these are: the cost of obtaining trained and skilled employees; the
uncertainty and instability of prices for raw materials and supplies; the
problems associated with advanced designs, which may result in unforeseen
technological difficulties and cost overruns; and the intense competition and
the constant necessity for improvement in facilities and personnel training.
Sales to the Government may be affected by changes in procurement policies,
budget considerations, changing concepts of national defense, political
developments abroad and other factors.

     As a result of the 1985 Balanced Budget and Emergency Deficit Reduction
Control Act, the federal deficit and changing world order conditions, DOD
budgets have been subject to increasing pressure resulting in an uncertainty
as to the future effects of DOD budget cuts.  Raytheon has, nonetheless,
maintained a solid foundation of tactical defense systems which meet the needs
of the United States and its allies, as well as serving a broad government
program base and wide range of commercial electronics businesses.  These
factors lead management to believe that there is high probability of
continuation of Raytheon's current major tactical defense programs.

     During the first quarter of 1994 the Company's Board of Directors approved
a company-wide restructuring plan designed to help maintain the Company's
competitive position in a shrinking defense market and improve productivity
in its commercial businesses.  The plan is being implemented over a two-year
period and resulted in a one-time, pre-tax charge of $250 million ($162
million after tax).  The major elements of the plan include the costs of
employee separations and relocations, facility consolidations and facility and
equipment disposals.

     In 1995 Raytheon initiated changes in its defense business in
Massachusetts to achieve $600 million in cost savings to enable it to remain

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competitive in defense manufacturing in the state with companies based in
lower-cost states.  Raytheon worked with local unions to achieve cost controls
and enhance productivity;  it worked with Massachusetts lawmakers to enact tax
reduction legislation for manufacturing firms in the state; and it worked with
utility companies to cut electricity costs in the state.  While
Massachusetts-based defense operations continued to experience declines in
sales and income, the rate of decline was not as great as in prior years.

                                     BACKLOG

     The Company's backlog of orders at December 31, 1995 was $10.551 billion
compared with $8.070 billion at the end of 1994.  The 1995 amount includes
funded backlog of $5.142 billion from the Government compared with $3.641
billion at the end of 1994.  Normally, the Government funds its major programs
only to the dollar level appropriated annually by Congress, even though the
total estimated program values are considerably greater.  Accordingly, the
Company's Government funded backlog represents only that amount which has been
appropriated and against which the Company can be reimbursed for work
performed.

     Approximately $2.662 billion of the overall backlog figure represents the
unperformed portion of multi-year direct orders from foreign governments, of
which $1.604 billion is for air defense systems or components thereof and
related services and $1.058 billion is for the SIVAM environmental monitoring
system.  Approximately $1.212 billion of the overall backlog represents
non-government foreign backlog.

     Backlog in the Engineering and Construction segment was $2.240 billion at
the end of 1995 compared with $1.522 billion at the end of 1994  The increase
was due primarily to an increase in international turnkey energy projects.
Design and construction contracts in this segment typically take from eighteen
months to several years to perform.

     Aircraft segment backlog was $836 million at the end of 1995 versus $1.203
billion at the end of 1994. The decrease was primarily due to the timing of
orders for regional aircraft.
     Approximately $4.489 billion of the $10.551 billion 1995 year-end backlog
is not expected to be filled during the following twelve months.

                            RESEARCH AND DEVELOPMENT

     During 1995, Raytheon derived net sales of $982 million ($450 million in
1994 and $686.2 million in 1993) pursuant to Government contracts for research
and development.  In addition, during 1995 Raytheon expended $315.6 million
on research and development efforts compared with $269.6 million in 1994 and
$279.4 million in 1993.  These expenditures principally have been for product
development for the Government and for aircraft products.  Approximately
16,100 employees (10,000 for 1994), of whom 8,200 (4,300 for 1994) hold
engineering or scientific degrees, were actively engaged in research and
development at the end of 1995.

                                    SUPPLIERS

     Delivery of raw materials and supplies to Raytheon is generally
satisfactory. Raytheon is sometimes dependent, for a variety of reasons, upon
sole-source suppliers for procurement requirements.  However, Raytheon has
experienced no significant difficulties in meeting production and delivery
obligations because of delays in delivery or reliance on such suppliers.

                                   COMPETITION

     The military and commercial industries in which Raytheon operates are
highly competitive in both military and commercial areas.  Raytheon's
competitors range from highly resourceful small concerns, which engineer and
produce specialized items, to large, diversified firms.

     In the Engineering and Construction segment it is estimated that about 15

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firms compete for major business opportunities worldwide.  Competition is
based primarily upon technical superiority, project experience and price.  The
ability to arrange or otherwise provide financing to customers is sometimes
significant in attracting or retaining clients.

     Competition in the Aircraft segment comes from a number of domestic and
foreign jet, turboprop and piston aircraft manufacturers.  Principal elements
of competition in the industry are price, financing, operating costs,
reliability, cabin size and comfort, product quality, speed and service
support.

     In the Major Appliances segment, quality, warranty, price, advertising and
marketing are all competitive factors.  Approximately 24 firms compete with
Raytheon in the appliance field.  Of these, Raytheon considers four firms to
be significant competitors.

     The Electronics segment is a direct participant in most major areas of
development in the defense, space, information gathering, data reduction and
automation fields.  Technical superiority and reputation, price, delivery
schedules, financing and reliability are principal competitive factors
considered by electronics customers.  About half of the 30 largest defense
contractors in the United States are competitors in the Electronics segment.
Several of the competitors of Raytheon Electronic Systems have relocated
production facilities to states where the cost of doing business is less than
in Massachusetts where most of Raytheon's defense electronics facilities are
located.


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                              PATENTS AND LICENSES

     Raytheon has long been an innovative leader in the development of new
products and manufacturing technologies.  Raytheon and its subsidiaries own
a large number of United States and foreign patents and patent applications
as well as trademark, copyright and chip mask work registrations which are
necessary and contribute significantly to the preservation of the Company's
strong competitive position in the market.  In certain instances, Raytheon has
augmented its technology base by licensing the proprietary intellectual
property of others.

     Raytheon's patent position and intellectual property portfolio is deemed
adequate for the conduct of its businesses.  It is Raytheon's policy to
enforce its own intellectual property rights and to respect the rights of
others.  Incidental to the normal course of business, infringement claims
arise or are threatened both by and against Raytheon.  In the opinion of
management, these claims will be disposed of in a satisfactory manner.

                                   EMPLOYMENT

     As of December 31, 1995, Raytheon had 73,200 employees compared with
60,200 employees at the end of 1994.  The increase is primarily due to the May
1995 acquisition of E-Systems. Subsidiaries of Raytheon Engineers &
Constructors International, Inc. and certain other subsidiaries have craft
employees engaged for individual projects not included in Raytheon's employee
count.

     Raytheon considers its employee relations to be generally satisfactory.
Raytheon has, for the most part, successfully negotiated labor agreements
without significant work stoppages.  Over the past ten years, Raytheon has
experienced only one work stoppage: a two-week stoppage at its Amana, Iowa
facility.  Negotiations with the primary union representing Raytheon
Electronic Systems employees in Massachusetts occurred in the summer and fall
of 1995.  Due to the dramatic decline in defense procurement and the Company's
need to achieve a competitive position in this increasingly cost sensitive
market, the Company sought and received significant changes to the terms and
conditions of the contract, including a three-year wage freeze, work rule
changes and benefit changes.

                                  FOREIGN SALES

     Of total sales, Raytheon's sales to customers outside the United States
were 23%, 19.6% and 18.4% in 1995, 1994 and 1993, respectively.  These sales
were principally in the fields of air defense systems, air traffic control
systems, sonar systems, aircraft products, petrochemical power and industrial
plant design and construction, electronic equipment, computer software and
systems, personnel training, equipment maintenance and microwave
communication.  Foreign working capital requirements generally are financed
in the countries concerned.  Sales and income from international operations
are subject to changes in currency values, domestic and foreign government
policies (including requirements to expend a portion of program funds
in-country) and regulations, embargoes and international hostilities.
Exchange restrictions imposed by various countries could restrict the transfer
of funds between countries and between Raytheon and its subsidiaries.
Raytheon generally has been able to protect itself against most undue risks
through insurance, foreign exchange contracts, contract provisions, government
guarantees or progress payments.

     Raytheon utilizes the services of sales representatives and distributors
in connection with foreign sales.  Normally representatives are paid
commissions and distributors are granted resale discounts in return for
services rendered.

     Licenses are required from Government agencies under the Export

<PAGE>
                                       11


Administration Act, the Trading with the Enemy Act of 1917 and the Arms Export
Control Act of 1976 (formerly the Foreign Military Sales Act) for export from
the United States of many of Raytheon's products.  In the case of certain
sales of defense equipment and services to foreign governments, the
Government's Executive Branch must notify Congress at least 30 days prior to
authorizing such sales.  During that time, Congress may take action to block
the proposed sale.

ITEM 2.       PROPERTIES

     Raytheon and its subsidiaries operate in a number of plants, laboratories
and office facilities in the United States and abroad.

     Raytheon's manufacturing, engineering, research, administrative, sales and
storage floor space aggregated approximately 37.3 million square feet at
December 31, 1995 more than 96% of which was located in the United States.
Of such total, 50% was owned, 33% was held pursuant to long-term leases, 10%
was held pursuant to short-term leases and 7% was Government-owned.
Raytheon's facilities are suitable and adequate for its current level of
business.  In connection with the restructuring plan announced in March 1994,
certain facilities have been and will be disposed of following consolidation.

     Raytheon maintains a wide-spread energy conservation effort in cooperation
with Federal and state agencies.  While Raytheon's businesses generally
utilize clean manufacturing processes, such processes at times utilize
chemicals, solvents, gases and other materials which could be hazardous.
Several states have adopted "right-to-know" legislation entitling employees
and, to a lesser extent, the public to information concerning such materials.
Discharge of effluents and smoke particles are regulated by Federal and state
agencies and frequently require permits.  Discharge in excess of permit
limitations may result in fines.  Enforcement proceedings may be brought by
citizen groups as well as government agencies.  In the opinion of management,
Raytheon complies with these regulations in all material respects.

ITEM 3.       LEGAL PROCEEDINGS

     The Company is involved in various stages of investigation and cleanup
relative to remediation of various sites.  All appropriate costs incurred in
connection therewith have been expensed.  Due to the complexity of
environmental laws and regulations, the varying costs and effectiveness of
alternative cleanup methods and technologies, the uncertainty of insurance
coverage and the unresolved extent of the Company's responsibility, it is
difficult to determine the ultimate outcome of these matters.  However, in the
opinion of management, any liability will not have a material effect on the
Company's financial position, liquidity or results of operations after giving
effect to provisions already recorded.

     Accidents involving personal injuries and property damage occur in general
aviation travel.  When permitted by appropriate government agencies, Raytheon
Aircraft investigates accidents related to its products involving fatalities
or serious injuries.  Through a relationship with FlightSafety International,
Raytheon Aircraft provides initial and recurrent pilot and maintenance
training services to reduce the frequency of accidents involving its products.

     Raytheon Aircraft is a defendant in a number of product liability lawsuits
which allege personal injury and property damage and seek substantial
recoveries including, in some cases, punitive and exemplary damages.  Raytheon
Aircraft maintains partial insurance coverage against such claims and
maintains a level of uninsured risk determined by management to be prudent.
(See Note J to Raytheon's Financial Statements for the years ended December
31, 1995, 1994 and 1993.)

     The insurance policies for product liability coverage held by Raytheon
Aircraft do not exclude punitive damages, and it is the position of Raytheon

<PAGE>
                                       12


Aircraft and its counsel that punitive damage claims are therefore covered.
Historically, the defense of punitive damage claims has been undertaken and
paid by insurance carriers.  Under the law of some states, however, insurers
are not required to respond to judgments for punitive damages.  Nevertheless,
to date no judgments for punitive damages have been sustained.

     Defense contractors are subject to many levels of audit and investigation.
Among agencies which oversee contract performance are:  the Defense Contract
Audit Agency, the Department of Defense Inspector General, the General
Accounting Office, and the Department of Justice and Congressional Committees.
The Department of Justice from time to time has convened grand juries to
investigate possible irregularities by the Company in governmental
contracting.

     Various claims and legal proceedings generally incidental to the normal
course of business are pending or threatened against the Company.  While the
Company cannot predict the outcome of any of these matters, in the opinion of
management, any liability arising from them will not have a material effect
on the Company's financial position, liquidity or results of operations after
giving effect to provisions already recorded.

ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

              Not Applicable.


<PAGE>
                                       13


SUBSTITUTE ITEM 4.              EXECUTIVE OFFICERS OF REGISTRANT AS OF
                                MARCH 1, 1996

Elizabeth H. Allen:  Vice President - Corporate Communications since August
1993.  Prior to assuming her present position Ms. Allen was Vice President -
Corporate Communications, Loral Corporation from January 1991.  Age: 42

Gail P. Anderson:  Vice President - Human Resources since December 1994.
Prior to assuming his present position Mr. Anderson was Vice President - Human
Resources, Phillips Petroleum Company from 1986.  Age: 53

Shay D. Assad:  Vice President - Contracts since July 1994.  Prior to assuming
his present position Mr. Assad was Manager-Contracts, Missile Systems Division
from 1985.  Age: 45

Renso L. Caporali:  Senior Vice President - Government and Commercial
Marketing since April 1995.  Prior to assuming his present position Mr.
Caporali was Chairman and Chief Executive Officer of the Grumman Corporation
from 1991.  Age: 62

Philip W. Cheney:  Vice President and Group Executive - Commercial Electronics
since July 1994.  Prior to assuming his present position Dr. Cheney was Vice
President - Engineering from February 1990.  Age: 60

Kenneth H. Colburn:  Vice President - Project and International Finance since
January 1995.  Prior to assuming his present position Mr. Colburn was Managing
Director-Investment Banking Department-East Coast Group, CS First Boston
Corporation from January 1991.  Age: 44

Peter R. D'Angelo:  Executive Vice President, Chief Financial Officer and
Controller since March 1995. Prior to assuming his present position Mr.
D'Angelo was Vice President, Chief Financial Officer and Controller from
January 1995; Vice President and Corporate Controller from 1992 and Controller
- Missile Systems Division from 1984.  Age: 57

Herbert Deitcher:  Senior Vice President - Treasurer since November 1989.
Age: 62

David S. Dwelley:  Vice President - Strategic Business Development since April
1991.  Prior to assuming his present position Mr. Dwelley was Vice President
and President of Raytheon Europe Limited from 1989.  Age: 56

Michele C. Heid:  Vice President - Investor Relations since September 1995.
Prior to assuming her present position Ms. Heid was Vice President - Investor
Relations & Strategic Planning, Cummins Engine Company from 1993 and Vice
President - Investor Relations, Cummins Engine Company from 1991.  Age: 41


<PAGE>
                                       14


Christoph L. Hoffmann:  Executive Vice President - Law, Corporate
Administration, and Secretary since March 1995.  Prior to assuming his present
position Mr. Hoffmann was Senior Vice President - Law, Human Resources and
Corporate Administration, and Secretary from February 1994; Vice President,
Secretary and General Counsel from July 1991, Vice President from April 1991
and Senior Vice President, General Counsel and Secretary of Pneumo Abex
Corporation from 1986.  Age: 51

Thomas D. Hyde:  Vice President and General Counsel since February 1994.
Prior to assuming his present position Mr. Hyde was Assistant General Counsel
from August 1992; Senior Vice President, General Counsel and Chief Financial
Officer of MNC Financial Inc. Special Assets Bank from 1991; and Vice
President, Finance of Manville Sales Corporation from 1988.  Age: 47

Frank Kendall:  Vice President - Engineering since December 1994.  Prior to
assuming his present position Mr.Kendall was a civilian employee with the
Department of Defense from 1990.  Age: 47

A. Lowell Lawson:  Executive Vice President since May 1995.  Chairman and
Chief Executive Officer of E-Systems, Inc. since August 1994.  Mr. Lawson was
President of E-Systems from 1989.  Age: 58

Robert S. McWade:  Vice President - Corporate Affairs since February 1996.
Prior to assuming his present position Mr. McWade was Director, Corporate
Communications, Textron, Inc. from September 1994 and Director, Corporate
Relations, Bank of Boston from 1991.  Age: 39

Charles Q. Miller:  Executive Vice President and Group Executive and Chairman
and Chief Executive Officer of Raytheon Engineers & Constructors
International, Inc. since March 1995.  Prior to assuming his present position
Mr. Miller was Senior Vice President and Group Executive and Chairman and
Chief Executive Officer of Raytheon Engineers & Constructors International,
Inc. from March 1993; and President, United Engineers & Constructors, Inc.
from 1990.  Age: 50

Dennis J. Picard:  Director since 1989 and Chairman and Chief Executive
Officer since March 1991.  Prior to assuming his present position Mr. Picard
was President from 1989.  Age: 63

Robert A. Skelly:  Vice President - Assistant to the Executive Office.  Prior
to assuming his present position Mr. Skelly was Vice President -
Administration, Environmental Quality and Procurement from September 1992 and
Vice President - Public and Financial Relations from January 1991.  Age: 53

Robert L. Swam:  Executive Vice President and Chairman and Chief Executive
Officer of Amana Refrigeration, Inc. since March 1995.  Prior to assuming his
present position Mr. Swam was Senior Vice President and Group Executive  -
Appliance Group from January 1992 and an independent consultant from 1989.
Age: 55

William H. Swanson:  Executive Vice President and General Manager - Raytheon
Electronic Systems Division since March 1995.  Prior to assuming his present
position Mr. Swanson was Senior Vice President and General Manager - Missile
Systems Division from 1990.  Age: 47

Arthur E. Wegner:  Executive Vice President and Chairman and Chief Executive
Officer of Raytheon Aircraft Company since March 1995.  Prior to assuming his
present position Mr. Wegner was Senior Vice President and Chairman and Chief
Executive Officer of Raytheon Aircraft from July 1993 and Executive Vice
President and President of the Aerospace/Defense Sector of United Technologies
Corporation from 1989.  Age: 58

     Each executive officer was elected by the Board of Directors to serve  for
a term of one year and until his or her successor is elected and qualified or

<PAGE>
                                       15


until his or her earlier removal, resignation or death.

                                                    PART II

Item 5.   Market For Registrant's Common Equity and Related Stockholder
Matters

              This information is contained in the Annual Report to Stockholders
     for the year ended December 31, 1995 on page 1, on page 47 under the
     caption "Quarterly Financial Data" and on the back cover and is
     incorporated herein by reference.

Item 6.       Selected Financial Data

              This information is included in the "Ten Year Statistical Summary"
     contained in the Annual Report to Stockholders for the year ended December
     31, 1995 on pages 48 and 49 and is incorporated herein by reference.

Item 7.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations

              This information is contained in the Annual Report to Stockholders
     for the year ended December 31, 1995 on pages 41 through 45 and is
     incorporated herein by reference.

Item 8.       Financial Statements and Supplemental Data

              Selected quarterly financial data and the financial statements and
     supplementary data of the Registrant are contained in the Annual Report to
     Stockholders for the year ended December 31, 1995 on page 47 and pages 50
     through 66, respectively, and are incorporated herein by reference.
     Schedules required under Regulation S-X are filed as "Financial Statement
     Schedules" pursuant to Item 14 hereof.

Item 9.       Changes in and Disagreements with Accountants and Financial
Disclosure

              None.

Item 10.      Directors and Executive Officers of the Registrant

              Information regarding the directors of the Registrant is contained
     in the definitive proxy statement of the Registrant for the annual meeting
     of stockholders to be held May 22, 1996 on pages 2 through 4 under the
     caption "Election of Directors" and is incorporated herein by reference.
     See Part I, Substitute Item 4 of this Form 10-K for information regarding
     the executive officers of the Registrant.

Item 11.      Executive Compensation

              This information is contained in the definitive proxy statement of
     the Registrant for the annual meeting of stockholders to be held May 22,
     1996 beginning with the caption "Executive Compensation of Directors" on
     pages 8 through 11 and is incorporated herein by reference.

Item 12.      Security Ownership of Certain Beneficial Owners and Management

              This information is contained in the definitive proxy statement of
     the Registrant for the annual meeting of stockholders to be held May 22,
     1996 under the caption "Security Ownership" on pages 5 and 6 and is
     incorporated herein by reference.

Item 13.      Certain Relationships and Related Transactions


<PAGE>
                                       16


              This information is contained in the definitive proxy statement of
     the Registrant for the annual meeting of stockholders to be held May 22,
     1995 under the caption "Other Information" on page 25 and is incorporated
     herein by reference.

                                     PART IV

Item 14.      Exhibits, Financial Statement Schedules and Reports on Form 8-K

     (a)  Financial Statements and Schedules

       (1)    The following financial statements of Raytheon Company and
              Subsidiaries Consolidated, as contained in Raytheon's 1995 Annual
              Report to Stockholders, are hereby incorporated by reference:

                       Balance Sheets at December 31, 1995 and 1994

                       Statements of Income for the Years Ended
                                December 31, 1995, 1994 and 1993

                       Statements of Stockholders' Equity for the Years Ended
                                December 31, 1995, 1994 and 1993

                       Statements of Cash Flows for the Years Ended
                                December 31, 1995, 1994 and 1993

              (2)      The following financial statement schedule is included
                       herein:

                       Schedule II, Reserves for the Three Years Ended
                                December 31, 1995

                       Schedules I, III and IV are omitted because they are not
                       required, not applicable or the information is otherwise
                       included.

     (b)      Reports on Form 8-K

              None.

     (c)      Exhibits

              (3.1)    Raytheon Company Restated Certificate of Incorporation,
                       as amended through September 27, 1995, heretofore filed
                       as an Exhibit to Raytheon's Form 10-Q for the quarter
                       ended October 1, 1995, is hereby incorporated by 
                       reference.

              (3.2)    Raytheon Company By-Laws, as amended and restated through
                       October 25, 1995, heretofore filed as an Exhibit to 
                       Raytheon's Form 10-Q for the quarter ended October 1, 
                       1995, are hereby incorporated by reference.

              (4)      On July 3, 1986 the Company filed a registration 
                       statement on Form 8-A, which form was amended on June 28,
                       1988, describing certain rights that may accrue to stock-
                       holders in the event that a person or group acquires 
                       beneficial ownership of 20% or more of the Company's
                       outstanding capital stock or commences a tender or 
                       exchange offer that would result in such person or group
                       owning 25% or more of such outstanding capital stock.
                       Said Registration Statement is hereby incorporated by
                       reference.

        (10.1)         Raytheon's 1976 Stock Option Plan, filed as an exhibit to
                       Raytheon's Registration Statement No. 33-23449 on Form 
                       S-8, is hereby incorporated by reference.

<PAGE>
                                       17



        (10.2)         Raytheon's 1991 Stock Plan, filed as an exhibit to 
                       Raytheon's 1991 Form 10-K, is hereby incorporated by
                       reference.

        (10.3)         Raytheon's 1995 Stock Option Plan, filed as an exhibit to
                       Raytheon's 1995 Proxy Statement dated April 18, 1995, is
                       hereby incorporated by reference.

          (13)         Raytheon's 1995 Annual Report to Stockholders (furnished
                       for the information of the Commission and not to be 
                       deemed "filed" as part of this Report except to the
                       extent that portions thereof are expressly incorporated
                       by reference).

          (21)         Subsidiaries of Raytheon Company*

          (23.1)       Consent of Independent Accountants*

          (23.2)       Report of Independent Accountants*

          (27)         Financial Data Schedule*

          (28.1)       Annual Report on Form 11-K for the     (To be filed at a
                       Raytheon Savings and Investment Plan   later date under
                                                              Form 10-K/A)

          (28.2)       Annual Report on Form 11-K for the     (To be filed at a
                       Raytheon Savings and Investment Plan   later date under
                       for Specified Hourly Payroll Employees  Form 10-K/A)

          (28.3)       Annual Report on Form 11-K for the     (To be filed at a
                       Raytheon Employee Savings and          later date under
                       Investment Plan                        Form 10-K/A)

* Filed electronically herewith.


<PAGE>
                                       18


SIGNATURE

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                                 RAYTHEON COMPANY


                                             /s/ Christoph L. Hoffmann

                                                 Christoph L. Hoffmann
                                         Executive Vice President and Secretary
                                                 for the Registrant

Dated:  March 15, 1996


<PAGE>
                                       19


SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

SIGNATURES                         TITLE                     DATE

 Dennis J. Picard
(Dennis J. Picard)            Chairman of the Board         March 15, 1996
                             and Director (Principal
                                 Executive Officer)

 Charles F. Adams
(Charles F. Adams)               Director                   March 15, 1996

 Francis H. Burr
(Francis H. Burr)                Director                   March 15, 1996

 Ferdinand Colloredo-Mansfeld
(Ferdinand Colloredo-Mansfeld)   Director                   March 15, 1996

 Theodore L.Eliot, Jr.
(Theodore L. Eliot, Jr.)         Director                   March 15, 1996

 John R. Galvin
(John R. Galvin)                 Director                   March 15, 1996

 Barbara B. Hauptfuhrer
(Barbara B. Hauptfuhrer)         Director                   March 15, 1996

 Richard D. Hill
(Richard D. Hill)                Director                   March 15, 1996

 L. Dennis Kozlowski
(L. Dennis Kozlowski)            Director                   March 15, 1996

 James N. Land, Jr.
(James N. Land, Jr.)             Director                   March 15, 1996

 A. Lowell Lawson
(A. Lowell Lawson)               Director and               March 15, 1996
                            Executive Vice President
 Thomas L. Phillips
(Thomas L. Phillips)             Director                   March 15, 1996

 Warren B. Rudman
(Warren B. Rudman)               Director                   March 15, 1996

 Joseph J. Sisco
(Joseph J. Sisco)                Director                   March 15, 1996

 Alfred M. Zeien
(Alfred M. Zeien)                Director                   March 15, 1996

 Peter R. D'Angelo
(Peter R. D'Angelo)         Executive Vice President -      March 15, 1996
                              Chief Financial Officer,
                            Controller (Chief Accounting
                                 Officer)


<PAGE>
                                       20


<TABLE>
<CAPTION>
                                           RAYTHEON COMPANY AND SUBSIDIARIES CONSOLIDATED
                                           ----------------------------------------------
                                                       SCHEDULE II - RESERVES
                                             FOR THE THREE YEARS ENDED DECEMBER 31, 1995
                                             -------------------------------------------
                                                           (In thousands)


                 COLUMN A              COLUMN B                  COLUMN C                 COLUMN D          COLUMN E

                                                                 Additions
                                       Balance at                                                           Balance at
                                       beginning    Charged to costs  Charged to other    Deductions          end of
                Description            of period       and expenses        accounts        Note (1)           period

      -------------------------------------------------------------------------------------------------------------------
      Year ended December 31, 1995:
      <S>                              <C>                <C>                  <C>        <C>               <C>
        Allowance for doubtful         $21,290             $ 3,078              -         $ 2,325           $22,043
         accounts receivable

      Year ended December 31, 1994:
      <S>                              <C>                <C>                  <C>        <C>               <C>
        Allowance for doubtful         $25,891             $ 2,473              -         $ 7,074           $21,290
         accounts receivable

      Year ended December 31, 1993:
      <S>                              <C>                <C>                  <C>        <C>               <C>
        Allowance for doubtful         $20,023             $ 4,586              -         $(1,282)          $25,891
         accounts receivable


      Note (1) - Uncollectible accounts and adjustments, less recoveries
</TABLE>