National Oilwell Varco 2002 Annual Report Download - page 36

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Year 2001
In 2001, we acquired nine companies for an aggregate of $51 million in cash. Individual purchase
prices ranged from $0.6 million to $16.5 million. Each of these acquisitions enhanced or
expanded our market position within each of our segments. Five of these acquisitions related to
our Products and Technology segment, including Integrated Power Systems, Maritime Hydraulics
(Canada) Ltd., Tech Power Controls Company, Houston Scientific International, Inc. and Rigquip
UK business and related assets. The remaining acquisitions, including Demij (a Netherlands
distribution company), Rye Supply Company, Inc., Texas Oil Works Supply, Inc. and Well-Serv,
Inc. related to our Distribution segment. Aggregate goodwill relating to these acquisitions was
$30 million and approximately half of this amount is deductible for tax purposes.
Year 2000
In February 2000, the merger with Hitec ASA was completed for approximately $158 million as
we issued 7.9 million shares of common stock. This transaction was accounted for as a purchase
effective February 1, 2000 and generated goodwill of approximately $150 million.
In June 2000, IRI International Corporation was merged with the Company and accounted for as
a pooling-of-interests. We issued 13.5 million shares of common stock valued at approximately
$447 million.
During 2000 we also acquired four other businesses for approximately $48 million in cash. The
purchase method of accounting was used to account for these acquisitions and generated
approximately $9 million in goodwill.
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 $46 million in goodwill.
3. Inventories
Inventories consist of (in thousands):
December 31, December 31,
2002 2001
Raw materials and supplies 60,699$ 39,272$
Work in process 109,924 101,376
Finished goods and purchased products 299,465 315,286
Total 470,088$ 455,934$
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