Raytheon 2010 Annual Report Download - page 102

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
We account for warranty provision costs incurred under our long-term contracts using the cost-to-cost measure of
progress as contracts costs, as the estimation of these costs is integral in determining the price of the related long-term
contracts. The table above excludes these costs.
Note 12: Stockholders’ Equity
The changes in shares of our common stock outstanding were as follows:
(In millions)
Balance at December 31, 2007 426.2
Common stock plans activity 5.5
Treasury stock activity (31.6)
Balance at December 31, 2008 400.1
Common stock plans activity 3.7
Treasury stock activity (25.9)
Balance at December 31, 2009 377.9
Warrants exercised 6.7
Common stock plans activity 4.6
Treasury stock activity (29.8)
Balance at December 31, 2010 359.4
On May 27, 2010, our stockholders approved the Raytheon 2010 Stock Plan pursuant to which we may grant restricted
stock awards, restricted stock units, stock grants, stock options and stock appreciation rights.
Our repurchases of our common stock under our stock repurchase programs were as follows:
(In millions) 2010 2009 2008
Amount of stock repurchased $1,450 $1,200 $1,700
Shares of stock repurchased 29.0 25.8 30.7
In March 2010, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding
common stock. At December 31, 2010, we had approximately $1.4 billion remaining under this repurchase program. All
previous repurchase programs had been completed as of December 31, 2010. Share repurchases will take place from time
to time at management’s discretion depending on market conditions.
Included in treasury shares at December 31, 2010 were 149,916 shares with a cost basis of $5.7 million which are held in a
rabbi trust related to the Company’s non-qualified deferred compensation plans.
Our Board of Directors declared cash dividends of $1.50, $1.24 and $1.12 per share in 2010, 2009 and 2008, respectively.
Earnings Per Share (EPS)
EPS from continuing operations attributable to Raytheon Company common stockholders and unvested share-based
payment awards was as follows:
2010 2009 2008
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings $1.48 $1.23 $1.11
Undistributed earnings 3.36 3.73 2.90
Total $4.84 $4.96 $4.01
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