Lockheed Martin 2001 Annual Report Download - page 61

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Lockheed Martin Corporation
December 31, 2001
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(f) The sum of the diluted earnings (loss) per share amounts for
the four quarters of 2000 do not equal the related amounts
included in the consolidated statement of operations for the
year ended December 31, 2000 due to the impact of the
issuance of 27.5 million shares of the Corporation’s common
stock to consummate the merger with COMSAT. In addition,
the quarterly earnings per share impact of individual items
discussed in notes (g) through (j) below may not equal the
earnings per share impact of such items for the year ended
December 31, 2000 as disclosed elsewhere in this Annual
Report due to the impact of the issuance of shares to consum-
mate the merger with COMSAT.
(g) Net earnings for the first quarter of 2000 included gains from
sales of surplus real estate and losses from portfolio shaping
activities. On a combined basis, these nonrecurring and
unusual items increased net earnings for the first quarter by
$6 million ($0.02 per diluted share).
(h) Net earnings for the second quarter of 2000 included the
following nonrecurring and unusual items: a charge related
to the Corporation’s guarantee of certain indebtedness of
Globalstar which reduced net earnings for the quarter by
$91 million ($0.23 per diluted share); a favorable adjust-
ment of $21 million ($0.05 per diluted share) related to the
reversal of a portion of the previously recorded charge for
the shutdown of CalComp.
(i) Net loss for the third quarter of 2000 included the following
nonrecurring and unusual items: an impairment loss related
to the Corporation’s decision to sell its AES businesses which
reduced net earnings by $980 million ($2.42 per diluted
share); a gain from the Corporation’s sale of its Control
Systems business which increased net earnings by $180
million ($0.44 per diluted share); and a net loss of $19
million ($0.04 per diluted share) related to portfolio
shaping activities and sales of surplus real estate.
(j) Net earnings for the fourth quarter of 2000 included the
following nonrecurring and unusual items: an adjustment
to reduce the impairment loss recorded related to the sale
of the AES businesses which increased net earnings by
$102 million ($0.24 per diluted share); an impairment
charge related to the Corporation’s investment in ACeS
which reduced net earnings by $77 million ($0.18 per
diluted share); an extraordinary loss on the early extinguish-
ment of debt which reduced net earnings by $95 million
($0.23 per diluted share) and portfolio shaping activities
and sales of surplus real estate which, on a combined basis,
increased net earnings by $2 million.
Lockheed Martin Annual Report >>> 68