Financial Highlights (unaudited) (in millions, except per share
and employee data)
(1) Pro forma amounts exclude (i) the special charges
in 1999 related to the June 30, 1999 redemption
of our Special Common Stock (or the Redemption)
and the effects of “push-down” accounting
as required by U.S. generally accepted accounting
principles, and legal settlements, (ii) recurring
charges related to the Redemption, and (iii) costs
in 2000 and 1999 related to the sale of inventory
that was written up at the Redemption, and their
related tax effects. In addition, pro forma excludes
the cumulative effect of accounting changes, net
of tax, in 2001 and 2000, and the changes in fair
value of certain derivatives ($10.0 million) recorded
in contract and other revenues in 2001 under Statement
of Financial Accounting Standards No. 133 (or FAS
133) on Accounting for Derivative Instruments and
Hedging Activities. For further information on these
charges, see the “Results of Operations”
section of Item 7, “Management’s Discussion
and Analysis of Financial Condition and Results
of Operations,” of Part II of our 2001 Form
10-K on file with the Securities and Exchange Commission
(or the SEC).
(2) Actual 1999 results include the combined New
Basis and Old Basis presentation from the Consolidated
Statements of Operations and the Consolidated Statements
of Cash Flows. For further information, see our
2001 Form 10-K (Part II, Item 8) on file with the
SEC.
(3) Percent change and graphs are based on pro
forma amounts and shares where applicable.
(4) Amount includes $1,207.7 million related to
the Redemption and push-down accounting, and $230.0
million related to legal settlements.
(5) Amounts primarily relate to the amortization
of goodwill and other intangible assets due to the
Redemption and push-down accounting.
(6) We adopted FAS 133 on January 1, 2001 and the
SEC’s Staff Accounting Bulletin No. 101 on
revenue recognition on January 1, 2000, and recorded
the cumulative effect of accounting changes, net
of tax, in 2001 and 2000, respectively.
(7) All share and per share amounts reflect the
two-for-one splits of our Common Stock that were
effected in October 2000 and November 1999.
