Raytheon 2009 Annual Report Download - page 107

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
In 2009, we adopted the required new accounting standard related to whether instruments granted in share-based
payment transactions are participating securities. This accounting standard requires us to include all unvested stock
awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number
of shares outstanding in our basic and diluted EPS calculations. As a result, we have included all of our outstanding
unvested restricted stock and the LTPP awards that meet the retirement eligible criteria in our calculation of basic and
diluted EPS for current and prior periods. Additionally, the accounting standard requires disclosure of EPS for common
stock and unvested share-based payment awards, separately disclosing distributed and undistributed earnings.
Distributed earnings represent common stock dividends and dividends earned on unvested share-based payment awards
of retirement eligible employees. Undistributed earnings represent earnings that were available for distribution but were
not distributed. Common stock and unvested share-based payment awards earn dividends equally as shown in the table
below.
EPS from continuing operations attributable to Raytheon Company common stockholders and unvested share-based
payment awards was as follows:
2009 2008 2007
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings $1.23 $1.11 $1.01
Undistributed earnings 3.73 2.90 2.85
Total $4.96 $4.01 $3.86
Diluted EPS attributable to Raytheon Company common stockholders:
Distributed earnings $1.21 $1.09 $0.99
Undistributed earnings 3.68 2.84 2.79
Total $4.89 $3.93 $3.78
EPS from discontinued operations attributable to Raytheon Company common stockholders and unvested share-based
payment awards was as follows:
2009 2008 2007
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings $— $—$—
Undistributed earnings (loss) —(0.01) 2.02
Total $— $(0.01) $2.02
Diluted EPS attributable to Raytheon Company common stockholders:
Distributed earnings $— $—$—
Undistributed earnings (loss) —(0.01) 1.97
Total $— $(0.01) $1.97
EPS attributable to Raytheon Company common stockholders and unvested share-based payment awards was as follows:
2009 2008 2007
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings $1.23 $1.11 $1.01
Undistributed earnings 3.73 2.90 4.87
Total $4.96 $4.01 $5.88
Diluted EPS attributable to Raytheon Company common stockholders:
Distributed earnings $1.21 $1.09 $0.99
Undistributed earnings 3.68 2.83 4.76
Total $4.89 $3.92 $5.75
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