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Lockheed to Take 1st-Quarter Charge

November 18, 1998|Bloomberg News

Lockheed Martin Corp. said it will take a first-quarter charge of $350 million to $400 million to cover a change in the way it accounts for development costs. The aerospace and defense giant said the accounting change will comply with new accounting standards and treat development costs as expenses instead of as a long-term investment. Such new programs as the C-130J transport plane and the evolved expendable launch vehicle, or EELV, will be affected by the charge, Lockheed said. The Bethesda, Md.-based company also said it will complete the review of its CalComp Technology Inc. unit in the fourth quarter. Lockheed said in a Nov. 2 regulatory filing that it might reduce its 87% stake in the Anaheim-based maker of computer printers and take a charge. CalComp has had a loss in each of the last three years. It said in July that it had hired Salomon Smith Barney Inc. as an advisor on alternatives.

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