National Oilwell Varco 2002 Annual Report Download - page 41

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7. Accumulated Other Comprehensive Income / (Loss)
The components of other comprehensive loss are as follows (in thousands):
Cumulative Cumulative
Change in Currency Marketable
Minimum Translation Interest Securities
Pension Liability Adjustment Rate Contract Valuation Adj. Total
Balance at December 31, 1999 -$ (12,639)$ -$ 716$ (11,923)$
Current period activity (10,684) 1,136 (9,548)
Tax effect (387) (387)
Balance at December 31, 2000 - (23,323) - 1,465 (21,858)
Current period activity (11,569) (2,191) (13,760)
Tax effect 745 745
Balance at December 31, 2001 - (34,892) - 19 (34,873)
Current period activity (19,698) 2,474 1,363 (15,861)
Tax effect 6,750 (477) 6,273
Balance at December 31, 2002 (12,948)$ (32,418)$ 88
6
$ 19$ (44,461)$
8. Commitments and Contingencies
We lease land, buildings, storage facilities, vehicles, data processing equipment and software
under operating leases expiring in various years through 2012. Rent expense for the years ended
December 31, 2002, 2001 and 2000 was $21.2 million, $19.0 million and $12.6 million. Our
minimum rental commitments for operating leases at December 31, 2002 were as follows: 2003 -
$17.7 million; 2004 - $13.8 million; 2005 - $9.9 million; 2006 - $6.8 million; 2007 - $5.8 million
and subsequent to 2007 - $9.7 million.
We are involved in various claims, regulatory agency audits and pending or threatened legal
actions involving a variety of matters. The total liability on these matters at December 31, 2002
cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise
provided for, should not materially affect our financial position, liquidity or results of operations.
Our business is affected both directly and indirectly by governmental laws and regulations
relating to the oilfield service industry in general, as well as by environmental and safety
regulations that specifically apply to our business. Although we have not incurred material costs
in connection with our compliance with such laws, there can be no assurance that other
developments, such as stricter environmental laws, regulations and enforcement policies
thereunder could not result in additional, presently unquantifiable costs or liabilities to us.
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