Hess 2011 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2011 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
15. Outstanding and Weighted Average Common Shares
The following table provides the changes in the Corporation’s outstanding common shares:
2011 2010 2009
(Thousands of shares)
Balance at January 1 .................................... 337,681 327,229 326,133
Issued for an acquisition* .............................. —8,602 —
Activity related to restricted common stock awards, net ...... 579 770 680
Employee stock options ............................... 1,716 1,080 416
Balance at December 31 ................................. 339,976 337,681 327,229
* See Note 2, Acquisitions and Dispositions in the notes to the Consolidated Financial Statements.
The weighted average number of common shares used in the basic and diluted earnings per share
computations for each year is summarized below:
2011 2010 2009
(Thousands of shares)
Common shares — basic ................................. 336,901 325,999 323,890
Effect of dilutive securities
Stock options ........................................ 1,617 829 836
Restricted common stock .............................. 1,380 1,449 1,239
Common shares — diluted ............................... 339,898 328,277 325,965
The calculation of weighted average common shares excludes the effect of 3,490,000, 5,157,000 and
4,050,000 out-of-the-money stock options for 2011, 2010 and 2009, respectively. Cash dividends on common
stock totaled $0.40 per share ($0.10 per quarter) during 2011, 2010 and 2009.
16. Leased Assets
The Corporation and certain of its subsidiaries lease gasoline stations, drilling rigs, tankers, office space and
other assets for varying periods under contractual obligations accounted for as operating leases. Certain operating
leases provide an option to purchase the related property at fixed prices. At December 31, 2011, 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 (in millions of dollars):
2012 ...................................................................... $ 531
2013 ...................................................................... 672
2014 ...................................................................... 523
2015 ...................................................................... 199
2016 ...................................................................... 121
Remaining years ............................................................. 1,164
Total minimum lease payments ................................................. 3,210
Less: income from subleases ................................................... 47
Net minimum lease payments .................................................. $3,163
Operating lease expenses for drilling rigs used to drill development wells and successful exploration wells
are capitalized.
72