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Earnings per Share
The following table summarizes basic and diluted net earnings per share:
2008 2007 2006
Net earnings per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.70 $3.16 $3.29
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.69 3.14 3.27
For the year ended December 31, 2008, the decreases in basic and diluted net earnings per share YTY
were attributable to decreased earnings partially offset by the decreases in the average number of shares
outstanding, primarily due to the Company’s stock repurchases.
For the year ended December 31, 2007, the decreases in basic and diluted net earnings per share YTY
were attributable to decreased earnings partially offset by the decreases in the average number of shares
outstanding, primarily due to the Company’s stock repurchases.
RESTRUCTURING AND RELATED CHARGES (REVERSALS) AND PROJECT COSTS
Summary of Restructuring Impacts
The Company’s 2008 financial results are impacted by its ongoing restructuring plans and related projects
and are discussed in further detail below. Project costs consist of additional charges related to the
execution of the restructuring plans. These project costs are incremental to the Company’s normal
operating charges and are expensed as incurred, and include such items as compensation costs for
overlap staffing, travel expenses, consulting costs and training costs. The tables below summarize the
2008 financial impacts of the Company’s restructuring plans and related projects.
For the year ended December 31, 2008, the Company incurred charges, including project costs, of
$92.7 million for the Company’s restructuring plans as follows:
(In Millions)
2009 Action
Restructuring-
related
Charges
(Note 4)
2008 Action
Restructuring-
related
Charges
(Note 4)
2007 Action
Restructuring-
related
Charges
(Note 4)
2006 Action
Restructuring-
related
Charges
(Note 4)
Project
Costs Total
Accelerated depreciation
charges/project costs . . . . . . . . . $ — $18.0 $17.3 $ — $15.3 $50.6
Employee termination benefit
charges/project costs . . . . . . . . . 20.2 3.0 (0.7) (1.5) 15.3 36.3
Contract termination and lease
charges . . . . . . . . . . . . . . . . . . . — — 4.9 0.9 — 5.8
Total restructuring-related
charges/project costs . . . . . . . . . $20.2 $21.0 $21.5 $(0.6) $30.6 $92.7
The Company incurred $42.5 million of accelerated depreciation charges and project costs in Cost of
revenue and $8.1 million in Selling, general and administrative on the Consolidated Statements of
Earnings. $26.8 million of total employee termination benefits and contract termination and lease
charges are included in Restructuring and related charges while $15.3 million of related project costs
are included in Selling, general and administrative on the Consolidated Statements of Earnings.
For the year ended December 31, 2008, the Company incurred restructuring and related charges and
project costs related to its restructuring plans of $24.4 million in PSSD, $27.3 million in ISD and
$41.0 million in All other.
In the first quarter of 2009, restructuring and related costs and expenses due to the restructuring actions
are expected to be approximately $13 million, with expected savings of about $23 million.
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