Lockheed Martin 2002 Annual Report Download - page 55

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SIXTY-TWO
Lockheed Martin Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002
The following table sets forth the computations of basic
and diluted earnings (loss) per share:
(In millions, except per share data) 2002 2001 2000
NET EARNINGS (LOSS):
Earnings (loss) from
continuing operations $ 533 $43$(477)
Discontinued operations:
Results of operations from
discontinued businesses (33) (62) (42)
Charges related to discontinued
businesses, net of IMS gain —(1,027) —
Net earnings (loss) for basic and
diluted computations $ 500 $(1,046) $ (519)
AVERAGE COMMON SHARES
OUTSTANDING:
Average number of common shares
outstanding for basic computations 445.1 427.4 400.8
Dilutive stock options—based on
the treasury stock method 6.9 5.1 —(a)
Average number of common
shares outstanding for
diluted computations 452.0 432.5 400.8(a)
EARNINGS (LOSS) PER
COMMON SHARE:
Basic:
Continuing operations $ 1.20 $0.10 $ (1.19)
Discontinued operations:
Results of operations from
discontinued businesses (0.07) (0.15) (0.10)
Charges related to discontinued
businesses, net of IMS gain —(2.40) —
$ 1.13 $(2.45) $ (1.29)
Diluted:
Continuing operations $ 1.18 $0.10 $ (1.19)
Discontinued operations:
Results of operations from
discontinued businesses (0.07) (0.14) (0.10)
Charges related to discontinued
businesses, net of IMS gain —(2.38) —
$ 1.11 $(2.42) $ (1.29)
(a) As a result of the Corporation recording a loss from continuing
operations in 2000, the average number of common shares used
in the calculation of the diluted loss per share have not been
adjusted for the effects of 2.3 million dilutive stock options since
their impact would be antidilutive.
NOTE 5—RECEIVABLES
(In millions) 2002 2001
U.S. Government:
Amounts billed $ 1,048 $ 1,107
Unbilled costs and accrued profits 2,116 2,423
Less customer advances
and progress payments (422) (551)
Commercial and foreign governments:
Amounts billed 483 583
Unbilled costs and accrued profits 474 502
Less customer advances (44) (15)
$ 3,655 $ 4,049
Less than 10% of the December 31, 2002 unbilled costs and
accrued profits are not expected to be recovered within 1 year.
NOTE 6—INVENTORIES
(In millions) 2002 2001
Work in process, primarily related to
long-term contracts and
programs in progress $ 5,627 $ 4,279
Work in process, commercial launch vehicles 594 1,205
Less customer advances and
progress payments (4,272) (2,931)
1,949 2,553
Other inventories 301 587
$ 2,250 $ 3,140
During 2002, approximately $130 million of unamortized
deferred costs related to commercial launch vehicles were
reclassified to property, plant and equipment. The deferred
costs related to the Atlas Space Operations Center, the vehicle
integration facility and certain related ground equipment for
the Atlas V program. The reclassification was made in connec-
tion with the completion of the facilities and the initial opera-
tional status of the program. The assets are being depreciated
over a period of 10 years.
Commercial launch vehicle inventories included amounts
advanced to Khrunichev State Research and Production Space
Center (Khrunichev), the Russian manufacturer of Proton
launch vehicles and provider of related launch services, of
$391 million and $672 million at December 31, 2002 and