17. New Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. SFAS No. 133 established standards for the accounting and reporting of derivative instruments and hedging activities and will be adopted by the Company during fiscal year 2001. The Company is currently evaluating the impact of the adoption of SFAS No. 133.

18. Quarterly Data (Unaudited)

The following table summarizes the unaudited quarterly statements of operations (in millions, except per share amounts):

  Quarter Ended 1999  
Mar 31 Jun 30 Sep 30 Dec 31
Revenues
$638
$640
$847
$1,128
Gross margin
229
219
245
311
(Loss)/income before extraordinary items
(13)
71
58
129
Extraordinary items, net of tax benefit
--
--
--
(17)
Net (loss) income
(13)
71
58
112
Basic earnings per share:1
     Before extraordinary items
$(0.07)
$0.37
$0.30
$0.63
     Extraordinary items
--
--
--
(0.08)
Basic (loss) earnings per share
$(0.07)
$0.37
$0.30
$0.55
Diluted (loss) earnings per share:1
     Before extraordinary items
$(0.07)
$0.36
$0.29
$0.60
     Extraordinary items
--
--
--
(0.08)
Diluted (loss) earnings per share
$(0.07)
$0.36
$0.29
$0.52
Quarter Ended 1998
Mar 31
Jun 30
Sep 30
Dec 31
Revenues
$575
$565
$612
$646
Gross margin
178
180
212
241
Income before extraordinary items
65
71
79
92
Extraordinary items, net of taxes
--
--
2
2
Net income
65
71
81
94
Basic earnings per share:
     Before extraordinary items
$0.37
$0.41
$0.44
$0.51
     Extraordinary items
--
--
0.01
0.01
Basic earnings per share
$0.37
$0.41
$0.45
$0.52
Diluted earnings per share:1
     Before extraordinary items
$0.37
$0.39
$0.43
$0.49
     Extraordinary items
--
--
0.01
0.01
Diluted earnings per share
$0.37
$0.39
$0.44
$0.50
         
1 The sum of these amounts does not equal the annual amount because the quarterly calculations are based on varying numbers of shares outstanding.
         
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