Raytheon 2010 Annual Report Download - page 123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2009 First Second Third Fourth(6)
Total net sales $5,884 $6,125 $6,205 $6,667
Gross margin 1,187 1,286 1,311 1,350
Income from continuing operations 457 504 499 517
Net income attributable to Raytheon Company 452 489 490 504
EPS from continuing operations attributable to Raytheon Company common
stockholders(1)
Basic $ 1.12 $ 1.25 $ 1.27 $ 1.32
Diluted 1.11 1.24 1.25 1.30
EPS attributable to Raytheon Company common stockholders(1)
Basic 1.13 1.24 1.26 1.32
Diluted 1.12 1.23 1.25 1.30
Cash dividends per share
Declared 0.31 0.31 0.31 0.31
Paid 0.28 0.31 0.31 0.31
Common stock prices
High $53.00 $48.34 $48.64 $53.84
Low 33.20 38.00 41.90 45.02
Workdays(2) 61 64 63 61
(1) EPS is computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total
computed for each year.
(2) Number of workdays per our fiscal calendar, which excludes holidays and weekends.
(3) During the second quarter 2010, RSL was notified by the UK Border Agency that it had been terminated for default on a program. The impact of
the adjustment reduced IIS total net sales and operating income by $316 million and $395 million in the second quarter and the six months ended
June 27, 2010, respectively.
(4) During the third quarter 2010, we received final approval from the IRS and the U.S. Congressional Joint Committee on Taxation of the Tax
Settlement. As a result, we recorded a reduction in our unrecognized tax benefits from continuing and discontinued operations of $280 million,
which decreased our tax expense by $259 million, including $170 million from continuing operations and $89 million from discontinued
operations. The decrease in tax expense included $56 million related to interest.
(5) During the fourth quarter of 2010, we received proceeds of $1,975 million for the issuance of $2.0 billion fixed rate long-term debt and exercised
our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $678 million of our long-term debt due in 2012 and 2013 at a loss
of $73 million pretax, $47 million after-tax, which is included in other (income) expense.
(6) During the fourth quarter of 2009, we received proceeds of $496 million for the issuance of $500 million fixed rate long-term debt and exercised
our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $474 million of our long-term debt due in 2011 at a loss of $22
million pretax, $14 million after-tax, which is included in other (income) expense.
Note 18: Subsequent Events
We have evaluated subsequent events through the time of filing this Annual Report on Form 10-K with the SEC.
On January 31, 2011, we completed the acquisition of Applied Signal Technology, Inc. (AST), pursuant to a definitive
agreement dated December 18, 2010. We paid $38.00 per share of AST for an aggregate purchase price of approximately
$500 million, net of cash received. Following the acquisition, AST was renamed Raytheon Applied Signal Technology,
Inc. and will be integrated into our SAS segment and is expected to enhance SAS’s capabilities across the full spectrum of
integrated sensor solutions for classified and other government customers.
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