Hess 2002 Annual Report Download - page 42

14. Leased Assets
The Corporation and certain of its subsidiaries lease gasoline
stations, tankers, floating production systems, drilling rigs, office
space and other assets for varying periods. At December 31, 2002,
future minimum rental payments applicable to noncancelable leases
with remaining terms of one year or more (other than oil and gas
leases) are as follows:
Operating Capital
Millions of dollars Leases Leases
2003 $ 107 $13
2004 100 12
2005 66 13
2006 65 13
2007 66 13
Remaining years 893 3
Total minimum lease payments 1,297 67
Less: Imputed interest — 11
Income from subleases 18 —
Net minimum lease payments $1,279 $56
Capitalized lease obligations
Current $9
Long-term 47
Total $56
Certain operating leases provide an option to purchase the related
property at fixed prices.
Rental expense for all operating leases, other than rentals applicable
to oil and gas leases, was as follows:
Millions of dollars 2002 2001 2000
Total rental expense $160 $206 $199
Less income from subleases 34 63 86
Net rental expense $126 $143 $113
For income tax reporting at December 31, 2002, the Corporation has
alternative minimum tax credit carryforwards of approximately
$60 million, which can be carried forward indefinitely. At December
31, 2002, the Corporation has a net operating loss carryforward in the
United States of approximately $600 million. At December 31, 2002, a
net operating loss carryforward of approximately $550 million is also
available to offset income from the Corporation’s share of the HOV-
ENSA joint venture and to reduce taxes on interest from the PDVSA
note. In addition, a foreign exploration and production subsidiary has
a net operating loss carryforward of approximately $475 million.
Income taxes paid (net of refunds) in 2002, 2001 and 2000
amounted to $410 million, $605 million and $249 million,
respectively.
13. 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 2002 2001 2000
Common shares — basic 88,187 88,031 89,063
Effect of dilutive securities
Stock options — 468 339
Nonvested common stock — 425 358
Convertible preferred stock — 205 118
Common shares — diluted 88,187 89,129 89,878
Diluted common shares include shares that would be outstanding
assuming the exercise of stock options, the fulfillment of restrictions
on nonvested shares and the conversion of preferred stock. In 2002,
the above table excludes the antidilutive effect of 424,000 stock
options, 461,000 nonvested common shares and 205,000 shares of
convertible preferred stock. The table also excludes the effect of
out-of-the-money options on 633,000 shares, 139,000 shares
and 1,063,000 shares in 2002, 2001 and 2000, respectively.
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