National Oilwell Varco 2002 Annual Report Download - page 18

Our net deferred tax assets and liabilities are recorded at the amount that is more likely than not to be realized or
paid. Should we determine that we would not be able to realize all or part of the net deferred tax asset in the future,
an adjustment to the deferred tax assets would be charged to income in the period of such determination.
Subsequent Events
On January 2, 2003, we acquired LSI, a Houston, Texas based distributor of specialty electrical products, for
approximately $13 million. This transaction generated approximately $6 million in goodwill and is complementary
to our distribution services business.
On January 16, 2003, we acquired the Mono pumping products business from Halliburton Energy Services for
approximately $89 million, consisting of $22.7 million in cash and 3.2 million shares of our common stock. This
transaction, which consisted of purchasing all the outstanding stock of Monoflo, Inc. in the United States and Mono
Group in the United Kingdom, generated approximately $46 million in goodwill and will add to the non-capital
product lines within our Products and Technology segment.
Recently Issued Accounting Standards
The Financial Accounting Standards Board issued Statement on Financial Accounting Standards (SFAS) No. 143,
“Accounting for Asset Retirement Obligations”, which sets forth the accounting and reporting to be followed for
obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs and
SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities”, addresses disposal activities
and termination costs in exiting an activity. These pronouncements are generally effective January 1, 2003. The
Company believes the adoption of these new accounting pronouncements will not have a significant impact on its
results of operations or financial position.
Forward–Looking Statements
Some of the information in this document contains, or has incorporated by reference, forward-looking statements.
Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking
statements. Forward-looking statements typically are identified by use of terms such as "may," "will," "expect,"
"anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently.
You should be aware that our actual results could differ materially from results anticipated in the forward-looking
statements due to a number of factors, including but not limited to changes in oil and gas prices, customer demand
for our products and worldwide economic activity. You should also consider carefully the statements under "Risk
Factors" which address additional factors that could cause our actual results to differ from those set forth in the
forward-looking statements. Given these uncertainties, current or prospective investors are cautioned not to place
undue reliance on any such forward-looking statements. We undertake no obligation to update any such factors or
forward-looking statements to reflect future events or developments.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Incorporated by reference to Item 7 above, “Market Risk Disclosure.”
Item 8. Financial Statement and Supplementary Data
Attached hereto and a part of this report are financial statements and supplementary data listed in
Item 15.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
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