Raytheon 2004 Annual Report Download - page 95
Download and view the complete annual report
Please find page 95 of the 2004 Raytheon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
 |
 |
77
Notes to Consolidated Financial Statements (Continued)
The weighted-average shares outstanding for basic and diluted EPS were as follows:
(In thousands) 2004 2003 2002
Average common shares outstanding for basic EPS 438,149 412,686 401,444
Dilutive effect of stock options, restricted stock, LTPP, and equity security units 4,052 2,743 6,587
Shares for diluted EPS 442,201 415,429 408,031
Stock options to purchase 18.7 million, 30.6 million, and 23.7 million shares of common stock outstanding at
December 31, 2004, 2003, and 2002, respectively, did not affect the computation of diluted EPS. The exercise prices for
these options were greater than the average market price of the Company’s common stock during the respective years.
Stock options to purchase 19.5 million, 15.3 million, and 17.9 million shares of common stock outstanding at
December 31, 2004, 2003, and 2002, respectively, had exercise prices that were less than the average market price of
the Company’s common stock during the respective periods and are included in the dilutive effect of stock options
and restricted stock in the table above.
In November 2004, the Board of Directors authorized the repurchase, between January 1, 2005 and December
31, 2006, of up to $700 million of the Company’s common stock. Purchases may take place from time to time at the
Company’s discretion depending on market conditions. There were no shares repurchased under this program
during 2004.
The Board of Directors is authorized to issue up to 200,000,000 shares of preferred stock, $0.01 par value per
share, in multiple series with terms as determined by the Board of Directors.
:
The provision for federal and foreign income taxes consisted of the following:
(In millions) 2004 2003 2002
Current income tax expense
Federal $138 $130 $ 51
Foreign 735
Deferred income tax (benefit) expense
Federal (5) 94 243
Foreign ––21
Total $140 $227 $320
The provision (benefit) for state income taxes of $6 million, $(1) million, and $15 million in 2004, 2003, and
2002, respectively, was included in administrative and selling expenses as these costs can generally be recovered
through the pricing of products and services to the U.S. government in the period for which the tax is payable.
Accordingly, the deferred state income tax provision (benefit), which is not material, will be allocated to contracts
in future periods as they are realized.
The provision for income taxes differs from the U.S. statutory rate due to the following:
2004 2003 2002
Statutory tax rate 35.0% 35.0% 35.0%
Foreign tax credit benefit (5.5) ––
Extraterritorial income exclusion/foreign sales corporation tax benefit (3.4) (3.1) (3.5)
ESOP dividend deduction benefit (2.3) (1.7) (1.1)
Research and development tax credit (0.9) (0.8) (1.0)
Other, net 1.3 0.4 0.3
Effective tax rate 24.2% 29.8% 29.7%