National Oilwell Varco 2002 Annual Report Download - page 34

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Net Income Per Share
The following table sets forth the computation of weighted average basic and diluted shares
outstanding (in thousands):
2002 2001 2000
Denominator for basic earnings per
share - weighted average 80,974 80,813 79,325
Effect of dilutive securities:
Employee stock options 735 920 1,435
Denominator for diluted earnings per
share - adjusted weighted average
shares and assumed conversions 81,709 81,733 80,760
Year Ended December 31,
2. Acquisitions
Year 2002
On December 18, 2002, we completed a cash tender offer for 92% of the common shares of
Hydralift ASA, a Norwegian based company specializing in the offshore drilling equipment
industry. By December 31, 2002, we had substantially completed the acquisition of the remaining
shares for a total purchase price, including the assumption of debt, of approximately $300
million. The results of Hydralift’s operations have been included in our income statement since
the acquisition date.
As a result of this acquisition, we strengthened our position in the offshore drilling market and
gained access to new product lines that complement our existing product offerings. The
combination of our product offerings will open new markets to us, particularly within the FPSO
(floating production storage and offloading) market.
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