Raytheon 2007 Annual Report Download - page 55

PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
At February 11, 2008, there were 39,962 record holders of our common stock. Our common stock is traded on the New
York Stock Exchange under the symbol “RTN”. For information concerning stock prices and dividends paid during the
past two years, see “Note 16 Quarterly Operating Results (Unaudited)” within Item 8 of this Form 10-K. Although we do
not have a formal dividend policy, management believes that a reasonable dividend payout ratio based on the current
industry environment and market conditions is approximately one third of our economic earnings (income excluding the
FAS/CAS Pension Adjustment). Dividends are subject to quarterly approval by our Board of Directors.
Securities Authorized for Issuance Under Equity Compensation Plans
The following table provides information about our equity compensation plans that authorize the issuance of shares of
our common stock. This information is provided as of December 31, 2007.
Plan Category
(A)
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights(1)
(B)
Weighted average exercise
price of outstanding
options, warrants and
rights(2)
(C)
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column A)(3)
Equity compensation plans approved
by stockholders 19,420,017 $42.45 11,141,698
Equity compensation plans not
approved by stockholders — — —
Total 19,420,017 $42.45 11,141,698
(1) This amount includes 2,135,576 shares, which is the maximum number of shares that may be issued upon settlement of restricted stock units
granted pursuant to the 2005, 2006 and 2007 Long-Term Performance Plans (LTPP), including dividend equivalent amounts. The shares to be
issued pursuant to the 2005, 2006 and 2007 LTPPs will be issued under the 2001 Stock Plan. The material terms of the 2005, 2006 and 2007 LTPPs
are described in more detail in “Note 13: Stock-Based Compensation Plans” within Item 8 of this Form 10-K. These awards may be settled in cash
or in stock at the discretion of the Management Development and Compensation Committee.
This amount also includes 166,192 shares that may be issued upon settlement of restricted stock units generally issued to non-U.S. employees. The
restricted stock units are granted pursuant to the 2001 Stock Plan and shares to be issued in settlement of the units will be issued under the 2001
Stock Plan. The awards of restricted stock units generally vest one-third per year on the second, third and fourth anniversaries of the date of grant.
This amount also includes 10,023,336 shares issuable upon exercise of stock options granted under the 1995 Stock Option Plan. The 1995 Stock
Option Plan expired in March 2005 and no additional options may be granted pursuant to that plan.
(2) Since restricted stock unit awards do not have an exercise price, the weighted average exercise price does not take into account the restricted stock
unit awards granted under the 2005, 2006 and 2007 LTPPs and restricted stock units granted to non-U.S. employees.
(3) As of December 31, 2007, there were (i) 12,139,425 shares available for grant as stock options, stock appreciation rights, restricted stock units and
restricted stock under the 2001 Stock Plan and (ii) 149,636 shares available for grant as restricted stock under the 1997 Nonemployee Directors
Restricted Stock Plan.
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