Raytheon 2006 Annual Report Download - page 85

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RAYTHEON COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions except per share amounts) Years Ended December 31: 2006 2005 2004
Net sales $20,291 $19,038 $17,825
Cost of sales 16,565 15,806 14,909
Administrative and selling expenses 1,422 1,290 1,202
Research and development expenses 464 430 413
Total operating expenses 18,451 17,526 16,524
Operating income 1,840 1,512 1,301
Interest expense 273 312 418
Interest income (77) (41) (36)
Other (income) expense, net (44) (12) 436
Non-operating expense, net 152 259 818
Income from continuing operations before taxes 1,688 1,253 483
Federal and foreign income taxes 581 435 109
Income from continuing operations 1,107 818 374
Income from discontinued operations, net of tax 176 53 2
Income before accounting change 1,283 871 376
Cumulative effect of change in accounting principle, net of tax ——41
Net income $ 1,283 $ 871 $ 417
Earnings per share from continuing operations
Basic $ 2.51 $ 1.83 $ 0.85
Diluted 2.46 1.80 0.85
Earnings per share from discontinued operations
Basic $ 0.40 $ 0.12 $ —
Diluted 0.39 0.12 —
Earnings per share from cumulative effect of change in accounting principle
Basic $— $ — $ 0.09
Diluted —— 0.09
Earnings per share
Basic $ 2.90 $ 1.95 $ 0.95
Diluted 2.85 1.92 0.94
The accompanying notes are an integral part of the financial statements.
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