Hess 2014 Annual Report Download - page 89

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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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Income taxes paid (net of refunds) in 2014, 2013 and 2012 amounted to $455 million, $1,353 million and $1,822 million,
respectively.
15. Outstanding and Weighted Average Common Shares
The following table provides the changes in the Corporation’s outstanding common shares:
2014 2013 2012
(In millions)
Balance at January 1 .................................................................................................................... 325.3 341.5 340.0
Activity related to restricted common stock awards, net ......................................................... 0.6 0.8 1.3
Stock options exercised ........................................................................................................... 3.3 2.3 0.2
Shares repurchased* ................................................................................................................ (43.4) (19.3) —
Balance at December 31 .............................................................................................................. 285.8 325.3 341.5
* See Note 16, Share Repurchase Plan in the Notes to the Consolidated Financial Statements.
The following table presents the calculation of basic and diluted earnings per share:
2014 2013 2012
(In millions)
Income from continuing operations, net of income taxes ............................................................ $ 1,692 $ 4,036 $ 1,808
Less: Net income attributable to noncontrolling interests ....................................................... — 176 18
N
et income from continuing operations attributable to Hess Corporation ................................... 1,692 3,860 1,790
Income from discontinued operations, net of income taxes ......................................................... 682 1,186 255
Less: Net income (loss) attributable to noncontrolling interests ............................................. 57 (6) 20
N
et income from discontinued operations attributable Hess Corporation .................................... 625 1,192 235
N
et income attributable to Hess Corporation ............................................................................... $ 2,317 $ 5,052 $ 2,025
Weighted average common shares outstanding:
Basic ......................................................................................................................... ............... 303.7 336.6 338.4
Effect of dilutive securities
Restricted common stock .................................................................................................... 1.5 1.4 1.1
Stock options ...................................................................................................................... 1.8 1.7 0.8
Performance share units ...................................................................................................... 0.7 1.2 —
Diluted ....................................................................................................................... .............. 307.7 340.9 340.3
N
et income attributable to Hess Corporation per share:
Basic:
Continuing operations ......................................................................................................... $ 5.57 $ 11.47 $ 5.29
Discontinued operations ..................................................................................................... 2.06 3.54 0.69
Net income per share ............................................................................................................... $ 7.63 $ 15.01 $ 5.98
Diluted:
Continuing operations ......................................................................................................... $ 5.50 $ 11.33 $ 5.26
Discontinued operations ..................................................................................................... 2.03 3.49 0.69
Net income per share ............................................................................................................... $ 7.53 $ 14.82 $ 5.95
The weighted average common shares used in the diluted earnings per share calculations exclude the effect of approximately
1.4 million, 4.4 million and 9.2 million out-of-the-money stock options for 2014, 2013 and 2012, respectively. Based on the
Corporation’s TSR, the diluted earnings per share calculations also exclude the effects of 414,175 PSUs for 2012.
In 2014, cash dividends on common stock totaled $1.00 per share ($0.25 per quarter). In 2013, cash dividends declared on
common stock totaled $0.70 per share ($0.10 per share for the first two quarters and $0.25 per share commencing in the third quarter
of 2013). Cash dividends were $0.40 per share ($0.10 per quarter) in 2012.
16. Share Repurchase Plan
In March 2013, the Corporation announced a board authorized plan to repurchase up to $4.0 billion of outstanding common shares.
In May 2014, the Corporation increased the repurchase program to $6.5 billion. For the year ended December 31, 2014, the
Corporation purchased approximately 43.4 million shares for a total cost of approximately $3.7 billion, or an average cost of $85.83
per share including transaction fees. From August through December 31, 2013, the Corporation purchased approximately 19.3 million
shares for a total cost of approximately $1.5 billion, or an average cost of $79.65 per share including transaction fees. As of