Lockheed Martin 1999 Annual Report Download - page 20

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Lockheed Martin Corporation
the shutdown of CalComp resulted in a charge related to
the impairment of assets and estimated costs required to
accomplish the shutdown of CalComp’s operations. The
remaining 1998 nonrecurring and unusual items included
net gains of $18 million related to the initial public offering
of L-3’s stock, $35 million associated with gains on sales of
surplus real estate, and $18 million associated with other
portfolio shaping actions.
Operating profit for 1997 also included the effects
of nonrecurring and unusual items which on a combined
basis, net of state income taxes, decreased operating profit
by $58 million. These items included the $311 million tax-
free gain resulting from the GE Transaction, and charges
totaling $457 million recorded in the fourth quarter of 1997
related to the Corporation’s decision to exit certain lines
of business and to the impairment in the values of various
non-core investments and certain other assets. In addition,
1997 included nonrecurring and unusual items related to a
$19 million gain associated with the sale of surplus real
estate and a net gain of $69 million associated with the
sale of non-core businesses and investments and other port-
folio shaping actions.
The Corporation’s reported net earnings for 1999
were $382 million, a decrease of 62 percent compared to
1998. Reported net earnings for 1998 were $1.0 billion, a
decrease of 23 percent compared to the reported 1997 net
$300
(c)
(a) (d)
Net Earnings
$0
$600
$900
$1,200
$1,500
(In millions)
’99’98’97
(a) (b) (c)
(a) Excluding the effects of the gain on the transaction with GE, the
charges relating to the decision to exit certain lines of business and
to impairment in values for certain assets, and gains from sales of
surplus real estate and other portfolio shaping items,1997 net
earnings would have been $1,234 million.
(b) Excluding the effects of the charge related to CalComp, and gains
from sales of surplus real estate and other portfolio shaping items,
1998 net earnings would have been $1,137 million.
(c) Excluding the effects of gains from the sale of the Corporation’s
interest in L-3 and sales of surplus real estate, a net gain from sales
of non-core businesses and investments and other portfolio shaping
items, and the cumulative effect adjustment related to start-up costs,
1999 net earnings would have been $575 million.
(In dollars)
Diluted Earnings
(Loss) Per Share
$0
-$2.00
$1.00
$2.00
$3.00
-$1.00
(c)
(a)
(d)
(b)
’99’98
’97
(a) Includes the effects of a deemed preferred stock dividend in deter-
mining net loss applicable to common stock in the computation of
loss per share which resulted from the GE Transaction. The effect
of this deemed dividend was to reduce the diluted per share
amount by $4.93.
(b) Excluding the effects of the deemed preferred stock dividend,
the gain on the transaction with GE, the charges relating to the
decision to exit certain lines of business and to impairment in values
for certain assets, and gains from sales of surplus real estate and
other portfolio shaping items, and including the dilutive effects of
preferred stock conversion and stock options,1997 diluted earnings
per share would have been $2.87.
(c) Excluding the effects of the charge related to CalComp, and gains
from sales of surplus real estate and other portfolio shaping items,
1998 diluted earnings per share would have been $2.99.
(d) Excluding the effects of gains from the sale of the Corporation’s
interest in L-3 and sales of surplus real estate, a net gain from sales
of non-core businesses and investments and other portfolio shaping
items, and the cumulative effect adjustment related to start-up costs,
1999 diluted earnings per share would have been $1.50.