Lockheed Martin 2007 Annual Report Download - page 82

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The calculations of basic and diluted earnings per share are as follows:
(In millions, except per share data) 2007 2006 2005
Net earnings for basic and diluted computations $3,033 $2,529 $1,825
Weighted average common shares outstanding
Average number of common shares outstanding for basic computations 416.0 428.1 440.3
Dilutive stock options, restricted stock and convertible securities 11.1 8.3 5.4
Average number of common shares outstanding for diluted computations 427.1 436.4 445.7
Earnings per common share
Basic $ 7.29 $ 5.91 $ 4.15
Diluted $ 7.10 $ 5.80 $ 4.10
Note 4 – Receivables
(In millions) 2007 2006
U.S. Government
Amounts billed $1,718 $1,671
Unbilled costs and accrued profits 2,329 2,284
Less customer advances and progress payments (428) (579)
3,619 3,376
Foreign governments and commercial
Amounts billed 333 410
Unbilled costs and accrued profits 1,144 862
Less customer advances (171) (53)
1,306 1,219
$4,925 $4,595
We expect to bill substantially all of the December 31, 2007 unbilled costs and accrued profits during 2008.
Note 5 – Inventories
(In millions) 2007 2006
Work in process, primarily related to long-term contracts
and programs in progress $ 4,039 $ 3,857
Less customer advances and progress payments (2,839) (2,704)
1,200 1,153
Other inventories 518 504
$ 1,718 $ 1,657
Work in process Inventories at December 31, 2007 and 2006 included general and administrative costs of $303 million
and $329 million. For the years ended December 31, 2007, 2006 and 2005, general and administrative costs incurred and
recorded in Inventories totaled $2,077 million, $1,894 million and $1,865 million, and general and administrative costs
charged to Cost of sales from Inventories totaled $2,103 million, $1,863 million and $1,888 million.
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