Raytheon 2014 Annual Report Download - page 56

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47
Income from Continuing Operations
(In millions) 2014 2013 2012
Income from continuing operations $ 2,193 $ 1,949 $ 1,901
The increase in income from continuing operations of $244 million in 2014 compared to 2013 was primarily due to the $241
million increase in operating income, described above in Operating Income.
The increase in income from continuing operations of $48 million in 2013 compared to 2012 was primarily due to the $70
million decrease in federal and foreign income taxes, related primarily to the change in the effective tax rate described above
in Federal and Foreign Income Taxes, and the $29 million decrease in total non-operating expenses, net, the primary drivers
of which are described above in Total Non-Operating (Income) Expense, Net, partially offset by the $51 million decrease in
operating income, described above in Operating Income.
Income (Loss) from Discontinued Operations, Net of Tax
(In millions) 2014 2013 2012
Income (loss) from discontinued operations, net of tax $ 65 $ 64 $ (1)
Income (loss) from discontinued operations, net of tax in 2014 was relatively consistent with 2013. Included in income (loss)
from discontinued operations, net of tax in 2014 was a gain of $52 million related to the resolution of a dispute and related
litigation with the U.S. Government regarding pension segment closing adjustments under CAS 413 for previously divested
operations as described below in Segment Results beginning on page 49.
The increase in income (loss) from discontinued operations, net of tax, of $65 million in 2013 compared to 2012 was primarily
due to the favorable resolution of two separate tax matters related to our previously disposed commercial aircraft businesses.
Net Income
(In millions) 2014 2013 2012
Net income $ 2,258 $ 2,013 $ 1,900
The increase in net income of $245 million in 2014 compared to 2013 was primarily due to the increase in income from
continuing operations of $244 million described above in Income from Continuing Operations.
The increase in net income of $113 million in 2013 compared to 2012 was due to the increase in income (loss) from discontinued
operations, net of tax, of $65 million, the primary drivers of which are described above in Income (Loss) from Discontinued
Operations, Net of Tax, and the increase in income from continuing operations of $48 million described above in Income from
Continuing Operations.
Diluted Earnings per Share (EPS) from Continuing Operations Attributable to Raytheon Company Common
Stockholders
(In millions, except per share amounts) 2014 2013 2012
Income from continuing operations attributable to Raytheon Company $ 2,179 $ 1,932 $ 1,889
Diluted weighted-average shares outstanding 312.6 324.2 334.2
Diluted EPS from continuing operations attributable to Raytheon Company $ 6.97 $ 5.96 $ 5.65
The increase in diluted EPS from continuing operations attributable to Raytheon Company common stockholders of $1.01 in
2014 compared to 2013 was primarily due to the increase in income from continuing operations described above in Income
from Continuing Operations. The $0.31 increase in 2013 compared to 2012 was primarily due to the decrease in diluted
weighted average shares outstanding, which was affected by the common stock share activity shown in the table below.