Raytheon 2009 Annual Report Download - page 58

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stockholders of $0.15 in 2008 compared to 2007 was primarily due to a decrease in average diluted shares outstanding.
The decrease in average diluted shares outstanding in 2008 and 2009 was primarily due to the repurchase of 25.8 million
and 30.7 million shares in 2009 and 2008, respectively.
Diluted Earnings (Loss) per Share from Discontinued Operations Attributable to
Raytheon Company Common Stockholders
Diluted earnings (loss) per share from discontinued operations attributable to Raytheon Company common stockholders
had no impact per diluted share in 2009, was $(0.01) per diluted share in 2008 and $1.97 per diluted share in 2007. The
decrease in diluted earnings (loss) per share from discontinued operations attributable to Raytheon Company common
stockholders of $1.98 in 2008 compared to 2007 was primarily due to the $986 million gain on the sale of Raytheon
Aircraft in 2007.
Diluted Earnings per Share Attributable to Raytheon Company Common
Stockholders
Diluted earnings per share attributable to Raytheon Company common stockholders was $4.89 per diluted share in 2009,
$3.92 per diluted share in 2008 and $5.75 per diluted share in 2007. The increase in diluted earnings per share attributable
to Raytheon Company common stockholders of $0.97 in 2009 compared to 2008 was primarily due to the increase in net
income. The decrease in diluted earnings per share attributable to Raytheon Company common stockholders of $1.83 in
2008 compared to 2007 was primarily due to the $986 million gain on the sale of Raytheon Aircraft in 2007.
FAS/CAS Adjusted EPS
FAS/CAS Adjusted EPS is defined as diluted EPS from continuing operations attributable to Raytheon Company
common stockholders excluding the earnings per share impact of the FAS/CAS Pension Adjustment. FAS/CAS Adjusted
Income from Continuing Operations attributable to Raytheon Company common stockholders is defined as income
from continuing operations attributable to Raytheon Company common stockholders excluding the after-tax impact of
the FAS/CAS Pension Adjustment at the federal statutory rate of 35.0%. We are providing this measure, which excludes
the impact of the FAS/CAS Pension Adjustment, because management uses it for the purpose of evaluating and
forecasting the Company’s financial performance and we believe it allows investors to benefit from being able to assess
our operating performance in the context of how our principal customer, the U.S. Government, allows us to recover
pension costs and to better compare our operating performance to others in the industry on that same basis. FAS/CAS
Adjusted EPS is not a measure of financial performance under GAAP and should be considered supplemental to and not
a substitute for financial performance in accordance with GAAP. FAS/CAS Adjusted EPS may not be defined and
calculated in the same manner. FAS/CAS Adjusted EPS was as follows:
2009 2008 2007
Diluted EPS from continuing operations attributable to Raytheon Company common
stockholders $4.89 $ 3.93 $ 3.78
Less: Earnings per share impact of the FAS/CAS Pension Adjustment 0.04 (0.19) (0.37)
FAS/CAS Adjusted EPS $4.85 $ 4.12 $ 4.15
SEGMENT RESULTS
We report our results in the following segments: Integrated Defense Systems (IDS), Intelligence and Information Systems
(IIS), Missile Systems (MS), Network Centric Systems (NCS), Space and Airborne Systems (SAS) and Technical Services
(TS). The following provides some context for viewing the performance of our segments through the eyes of
management.
Given the nature of our business, bookings, net sales and operating income (including operating margin percentage),
which we disclose and discuss at the segment level, are most relevant to an understanding of management’s view of our
segment performance, and often these measures have significant interrelated effects as discussed below. In addition, we
disclose and discuss backlog, which represents future sales that we expect to recognize over the contract period, which is
generally the next several years.
Bookings: We disclose the amount of bookings for each segment and notable contract awards. Bookings generally
represent the dollar value of new contracts awarded to us during the reporting period and include firm orders for which
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