Included in goodwill are certain claims submitted to Hughes for resolution as contractual purchase price contingencies relating to the acquisition of Hughes Electronics Corporation space and communications and related businesses in October 2000. The Company anticipates finalizing the Hughes purchase price allocation at the conclusion of arbitration procedures related to these contingencies.

In conjunction with the adoption of SFAS No. 142, the Company reassessed the useful lives and the classification of its finite-lived acquired intangible assets and determined that no revisions were necessary. The Company’s finite-lived acquired intangible assets are being amortized on a straight-line basis over the following weighted-average useful lives:

The gross carrying amounts and accumulated amortization of the Company’s acquired intangible assets as of December 31, 2002 and December 31, 2001, were as follows:

Amortization expense for acquired finite-lived intangible assets for the year ended December 31, 2002, was $88. Estimated amortization expense for the five succeeding years are as follows:

As of December 31, 2002 and December 31, 2001, the Company had one indefinite-lived intangible asset, a trademark, with a carrying amount of $197.

Note 6 – Earnings per Share

The weighted average number of shares outstanding (in millions) used to compute earnings per share are as follows:

Basic earnings per share are calculated based on the weighted average number of shares outstanding, excluding treasury shares and the outstanding shares held by the ShareValue Trust. Diluted earnings per share are calculated based on that same number of shares plus additional dilutive shares representing stock distributable under stock option and stock unit plans computed using the treasury stock method, plus contingently issuable shares from other share-based plans on an as-if converted basis.

Options to purchase 22.9, 10.8 and 9.3 shares of common stock were outstanding during the years ended December 31, 2002, 2001 and 2000, respectively, and not included in the computation of diluted earnings per share because to do so would have been antidilutive. For the years ended December 31, 2002, 2001 and 2000, respectively, 19.0, 13.3 and 7.5 units of Performance Shares were not included in the computation of diluted earnings per share because the average market price did not exceed, or was not maintained, above the conversion threshold price. For the year ended December 31, 2002, potentially distributable shares held by the ShareValue Trust were not included in the computation of diluted earnings per share because the average market price did not exceed the threshold price. However, these options, Performance Shares and ShareValue Trust potentially distributable shares could be dilutive in the future.

Note 7 – Income Taxes

The provision for taxes on income consisted of the following: