Hess 2000 Annual Report Download - page 43

The Corporation has not recorded deferred income taxes
applicable to undistributed earnings of foreign sub-
sidiaries that are indefinitely reinvested in foreign opera-
tions. Undistributed earnings amounted to approximately
$1.3 billion at December 31, 2000, excluding amounts
which, if remitted, generally would not result in any addi-
tional U.S. income taxes because of available foreign tax
credits. If the earnings of such foreign subsidiaries were
not indefinitely reinvested, a deferred tax liability of
approximately $135 million would have been required.
For income tax reporting at December 31, 2000, the Corpo-
ration has general business credit carryforwards of $17
million. In addition, the Corporation has alternative mini-
mum tax credit carryforwards of approximately $105 mil-
lion, which can be carried forward indefinitely. At
December 31, 2000, a net operating loss carryforward of
approximately $750 million is also available to offset
income of the HOVENSA joint venture partners.
Income taxes paid (net of refunds) in 2000, 1999 and 1998
amounted to $249 million, $141 million and $140 million,
respectively.
12. Net Income Per Share
The weighted average number of common shares used in
the basic and diluted earnings per share computations are
summarized below:
Thousands of shares 2000 1999 1998
Common shares — basic 89,063 89,692 89,585
Effect of dilutive securities
Nonvested common stock 358 436 —
Stock options 339 152 —
Convertible preferred stock 118 ——
Common shares — diluted 89,878 90,280 89,585
Diluted common shares include shares that would be
outstanding assuming the fulfillment of restrictions
on nonvested shares, the exercise of stock options and
the conversion of preferred stock. In 1998, the above
table excludes the antidilutive effect of 666,000 nonvested
common shares and 78,000 stock options. The table
also excludes the effect of out-of-the-money options
on 1,063,000 shares, 1,609,000 shares and 1,626,000
shares in 2000, 1999 and 1998, respectively.
13. Leased Assets
The Corporation and certain of its subsidiaries lease float-
ing production systems, drilling rigs, tankers, gasoline
stations, office space and other assets for varying periods.
Capital leases are not material. At December 31, 2000,
future minimum rental payments applicable to noncan-
celable operating leases with remaining terms of one year
or more (other than oil and gas leases) are as follows:
Operating
Millions of dollars Leases
2001 $153
2002 93
2003 78
2004 69
2005 44
Remaining years 501
Total minimum lease payments 938
Less income from subleases 12
Net minimum lease payments $926
Rental expense for all operating leases, other than rentals
applicable to oil and gas leases, was as follows:
Millions of dollars 2000 1999 1998
Total rental expense $199 $156 $179
Less income from subleases 86 51 30
Net rental expense $113 $105 $149
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