Raytheon 2011 Annual Report Download - page 53

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45
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 was
a loss of less than $0.01 in 2011, earnings of $0.10 in 2010, and a loss of less $0.01 in 2009. The decrease in diluted earnings
(loss) per share from discontinued operations attributable to Raytheon Company common stockholders of $0.10 in 2011
compared to 2010 was primarily due to the activity described above in Income (loss) from Discontinued Operations, Net of
Tax. The increase in diluted earnings (loss) per share from discontinued operations attributable to Raytheon Company common
stockholders of $0.10 in 2010 compared to 2009 was primarily due to the activity described above in Income (loss) from
Discontinued Operations, Net of Tax.
Diluted Earnings per Share Attributable to Raytheon Company Common Stockholders
Diluted earnings per share attributable to Raytheon Company common stockholders was $5.28 in 2011, $4.88 in 2010 and
$4.89 in 2009. The increase in diluted earnings per share attributable to Raytheon Company common stockholders of $0.40
in 2011 compared to 2010 was primarily due to the decrease in diluted shares, partially offset by the decrease in Diluted
Earnings (Loss) per Share from Discontinued Operations Attributable to Raytheon Company Common Stockholders described
above. The decrease in diluted earnings per share attributable to Raytheon Company common stockholders of $0.01 in 2010
compared to 2009 was due to the decrease in diluted earnings per share from continuing operations attributable to Raytheon
Company common stockholders, partially offset by the increase in Diluted Earnings (Loss) per Share from Discontinued
Operations Attributable to Raytheon Company Common Stockholders described above.
Adjusted EPS
Adjusted EPS is diluted EPS from continuing operations attributable to Raytheon Company common stockholders excluding
the earnings per share impact of the FAS/CAS Adjustment and, from time to time, certain other items. In addition to the FAS/
CAS Adjustment, our 2011 Adjusted EPS also excludes the earnings per share impact of the 2011 Tax Settlement, and the
UKBA LOC Adjustment tax effected at the 2011 U.K. statutory tax rate of approximately 25%, as described in Commitments
and Contingencies on page 68. In addition to the FAS/CAS Adjustment, our 2010 Adjusted EPS also excludes the earnings
per share impact of the 2010 Tax Settlement, and the UKBA Program Adjustment tax effected at the 2010 U.K. statutory rate
of approximately 28%, and the make-whole provision on the early repurchase of debt, all previously described, and the impact
of the acceleration of deferred gains related to the terminated interest rate swaps on the retired debt. In addition to the FAS/
CAS Adjustment, our 2009 Adjusted EPS also excludes the earnings per share impact of the make-whole provision on the
early repurchase of debt and the impact of the acceleration of deferred gains related to the terminated interest rate swaps on
the retired debt. We are providing Adjusted EPS because management uses it for the purpose of evaluating and forecasting
the Company’s financial performance and believes that it provides additional insights into the Company’s underlying business
performance. 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. 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. Adjusted
EPS may not be defined and calculated by other companies in the same manner and the amounts presented may not recalculate
directly due to rounding. Unless otherwise previously noted, the items in Adjusted EPS are tax effected at the U.S. statutory
rate of 35%. Adjusted EPS was as follows:
Diluted EPS from continuing operations attributable to Raytheon Company common
stockholders
Earnings per share impact of the FAS/CAS Adjustment
Earnings per share impact of the UKBA Program Adjustment
Earnings per share impact of UKBA LOC Adjustment
Earnings per share impact of the Tax Settlements
Earnings per share impact of the early retirement of debt charges
Earnings per share impact of the acceleration of deferred gains related to terminated
interest rate swaps on retired debt
Adjusted EPS
2011
$5.28
0.62
—
0.17
(0.17)
—
—
$5.90
2010
$4.79
0.32
0.75
—
(0.45)
0.13
(0.03)
$5.51
2009
$4.89
(0.13)
—
—
—
0.04
(0.01)
$4.79