.....of $1.74 per diluted share compared to $1.55 per diluted share in the fourth quarter 2010(1). The increase was driven by operational improvements and capital deployment actions. Fourth quarter 2011 EPS from continuing operations was $1.58 compared to $1.37 in the fourth quarter 2010. Fourth quarter 2011 included an unfavorable FAS/CAS Adjustment(1) of $0.16, compared with an unfavorable FAS/CAS Adjustment of $0.09 in the fourth quarter 2010. Fourth quarter 2010 EPS from continuing operations also included a $0.10 net charge associated with the impact of early debt retirement.
* Adjusted EPS is EPS from continuing operations attributable to Raytheon Company common stockholders excluding the EPS impact of the FAS/CAS Adjustment and, from time to time, certain other items. Adjusted EPS is a non-GAAP financial measure.
** Represents the difference between the 2011 and 2010 FAS/CAS Adjustments of $(0.16) and $(0.09), respectively.
"In a year of economic uncertainty, the Raytheon team focused on what we do best - ensuring customer success through program performance and product innovation," said William H. Swanson, Raytheon's Chairman and CEO. "Improved efficiencies and lower costs drove operating margin and earnings performance, while global demand for our affordable solutions resulted in strong orders."