November 1, 2002 and provisions affecting SFAS No.13 were effective for transactions occurring after May 15, 2002. We do not believe that the adoption of SFAS No. 145 will have a material impact on our financial statements. In June 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities.” This statement covers restructuring type activities beginning with plans initiated after December 31, 2002. Activities covered by this standard that are entered into after that date will be recorded in accordance with the provisions of SFAS No. 146. Management does not believe there will be a significant impact on our consolidated financial position or results of operations for the periods presented. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): For the years ended October 31, 2002, 2001 and 2000 exercisable stock options of 26 thousand, none and 207 thousand, respectively, were excluded from the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common stock. The components of billings in excess of costs and estimated earn- ings (in thousands): The components of costs and estimated earnings in excess of billings (in thousands): The components of inventories are summarized below (in thousands): Activity in our allowance for doubtful accounts receivable consists of the following (in thousands): D. Detail of Certain Balance Sheet Accounts  C. Earnings per Share Years Ended October 31, 2002 2001 2000 Numerator: Numerator for basic and diluted earnings per share-earnings from continuing operations available to common stockholders $ 17,905 $ 13,542 $ 7,061 Denominator: Denominator for basic earnings per share- weighted-average shares 10,511 10, 3 81 10,451 Effect of dilutive securities- Employee stock options and deferred directors‘ fees 187 219 79 Denominator for diluted earnings per share-adjusted weighted-average shares with assumed conversions 10,698 10,600 10,530 Basic earnings per share $ 1.70 $ 1.30 $ .68 Diluted earnings per share $ 1.67 $ 1.28 $ .67 October 31, 2002 2001 Progress billings $ 131,840 $ 111,963 Costs and estimated earnings (118, 3 6 2 ) ( 9 7,10 5 ) To tal billings in excess of costs and estimated earnings $ 13,478 $ 14,858 October 31, 2002 2001 Costs and estimated earnings $ 190,106 $ 156,822 Progress billings (157,278) (120,658) To t al costs and estimated earnings in excess of billings $ 32,828 $ 36,164  October 31, 2002 2001 Raw materials, parts and subassemblies $ 14,111 $ 15,186 Work-in-process 5,447 6,239 To t al inventories $ 19,558 $ 21,425 October 31, 2002 2001 Balance at beginning of period $ 551 $ 505 Additions to costs and expenses 690 62 Deductions for uncollectible accounts written off, net of recoveries (32) (16) Balance at end of period $ 1,209 $ 551 22 POWELL INDUSTRIES, INC.