Raytheon 2012 Annual Report Download - page 112

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
104
Earnings Per Share (EPS)
EPS from continuing operations attributable to Raytheon Company common stockholders and unvested share-based
payment awards was as follows:
2012 2011 2010
Basic EPS attributable to Raytheon Company common stockholders:
Distributed earnings $ 1.98 $ 1.71 $ 1.48
Undistributed earnings 3.69 3.54 3.36
Total $ 5.67 $ 5.25 $ 4.84
Diluted EPS attributable to Raytheon Company common stockholders:
Distributed earnings $ 1.98 $ 1.70 $ 1.47
Undistributed earnings 3.67 3.52 3.32
Total $ 5.65 $ 5.22 $ 4.79
Basic and diluted EPS from discontinued operations attributable to Raytheon Company common stockholders and unvested
share-based payment awards were a loss of less than $0.01, earnings of $0.05 and earnings of $0.09 for 2012, 2011 and 2010,
respectively.
The amount of income from continuing operations attributable to participating securities was $36 million for 2012, $31 million
for 2011 and $29 million for 2010. The amount of income (loss) from discontinued operations attributable to participating
securities was a loss of less than $1 million for 2012, and income of less than $1 million for 2011 and 2010. The amount of
net income attributable to participating securities was $36 million for 2012, $31 million for 2011 and $29 million for 2010.
The weighted-average shares outstanding for basic and diluted EPS were as follows:
(In millions) 2012 2011 2010
Shares for basic EPS (including 6.3 participating securities for 2012, 5.8 for
2011, and 5.9 for 2010) 333.2 351.7 372.7
Dilutive effect of stock options and LTPP 1.0 1.4 2.4
Dilutive effect of warrants —0.5 1.9
Shares for diluted EPS 334.2 353.6 377.0
There were no stock options with exercise prices greater than the average market price (anti-dilutive) that were excluded from
our calculation of diluted EPS in 2012, 2011 and 2010. Stock options to purchase the following number of shares of common
stock had exercise prices that were less than the average market price (dilutive) of our common stock and were included in
our calculations of diluted EPS:
(In millions) 2012 2011 2010
Stock options included in the calculation of EPS (dilutive) 0.9 4.4 6.5
Our Board of Directors is authorized to issue up to 200 million shares of preferred stock, $0.01 par value per share, in multiple
series with terms as determined by them. There were no shares of preferred stock outstanding at December 31, 2012 and
December 31, 2011.
Warrants to purchase shares of our common stock with an exercise price of $37.50 per share, were included in our calculations
of diluted EPS at December 31, 2011 and 2010. These warrants expired in June 2011.
Note 13: Stock-based Compensation Plans
We recorded $122 million, $102 million and $128 million of expense related to stock-based compensation in 2012, 2011 and
2010, respectively. We recorded $37 million, $34 million and $43 million as a tax benefit related to stock-based compensation
in 2012, 2011 and 2010, respectively.