Hess 2008 Annual Report Download - page 83

Income taxes paid (net of refunds) in 2008, 2007, and 2006 amounted to $2,420 million, $1,826 million and
$1,799 million, respectively. As of December 31, 2008, the Corporation had approximately $6 million of accrued
interest and penalties.
12. Stockholders’ Equity and Net Income Per Share
The weighted average number of common shares used in the basic and diluted earnings per share computations
for each year is summarized below:
2008 2007 2006
(Thousands of shares)
Common shares — basic ................................ 320,803 312,736 278,100
Effect of dilutive securities
Stock options ....................................... 2,870 2,925 3,135
Restricted common stock .............................. 1,815 3,066 2,776
Convertible preferred stock............................. 359 585 31,656
Common shares — diluted ............................... 325,847 319,312 315,667
The table above excludes the effect of out-of-the-money options on 425,000 shares, 715,000 shares, and
2,080,000 shares in 2008, 2007 and 2006, respectively.
During the third quarter of 2008, the Corporation’s remaining 284,139 outstanding shares of 3% cumulative
convertible preferred shares were converted into common stock at a conversion rate of 1.8783 shares of common
stock for each preferred share. The Corporation issued 533,697 shares of common stock for the conversion of these
preferred shares and fractional shares were settled by cash payments.
On December 1, 2006, all of the Corporation’s 13,500,000 outstanding shares of 7% cumulative mandatory
convertible preferred shares were converted into common stock at a conversion rate of 2.4915 shares of common
stock for each preferred share. The Corporation issued 33,635,191 shares of common stock for the conversion of its
7% cumulative mandatory convertible preferred shares. Fractional shares were settled by cash payments.
13. Leased Assets
The Corporation and certain of its subsidiaries lease gasoline stations, drilling rigs, tankers, office space and
other assets for varying periods under leases accounted for as operating leases. Certain operating leases provide an
option to purchase the related property at fixed prices. At December 31, 2008, future minimum rental payments
applicable to non-cancelable operating leases with remaining terms of one year or more (other than oil and gas
property leases) are as follows:
(Millions of dollars)
2009 .......................................................... $ 551
2010 .......................................................... 422
2011 .......................................................... 303
2012 .......................................................... 316
2013 .......................................................... 322
Remaining years ................................................. 1,647
Total minimum lease payments ...................................... 3,561
Less: income from subleases ........................................ 60
Net minimum lease payments ....................................... $3,501
67
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)