National Oilwell Varco 2002 Annual Report Download - page 42

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9. Common Stock
National Oilwell has authorized 150 million shares of $.01 par value common stock. We also
have authorized 10 million shares of $.01 par value preferred stock, none of which is issued or
outstanding.
Under the terms of National Oilwell’s Stock Award and Long-Term Incentive Plan, as amended,
8.4 million shares of common stock are authorized for the grant of options to officers, key
employees, non-employee directors and other persons. Options granted under our stock option
plan generally vest over a three-year period starting one year from the date of grant and expire
five or ten years from the date of grant. The purchase price of options granted may not be less
than the market price of National Oilwell common stock on the date of grant. At December 31,
2002, approximately 4.2 million shares were available for future grants.
We also have inactive stock option plans that were acquired in connection with the acquisitions of
Dreco Energy Services, Ltd. in 1997, and of Hitec ASA and IRI International Corporation in
2000. We converted the outstanding stock options under these plans to options to acquire our
common stock and no further options are being issued under these plans. Stock option
information summarized below includes amounts for the National Oilwell Stock Award and
Long-Term Incentive Plan and stock plans of acquired companies.
Options outstanding at December 31, 2002 under the stock option plans have exercise prices
between $5.62 and $40.50 per share, and expire at various dates from February 19, 2003 to
August 15, 2012.
The following summarizes options activity:
Number of
shares
Average
Exercise
Price
Number of
shares
Average
Exercise
Price
Number of
shares
Average
Exercise
Price
Shares under option at 3,094,160 22.95$ 2,792,585 16.50$ 2,041,204 14.59$
b
eg
i
nn
i
ng o
f
year
Granted 977,500 18.53 911,626 40.50 758,961 23.56
Options from acquisitions - - - - 1,006,342 10.52
Cancelled (133,465) 28.54 (218,086) 25.47 (86,425) 14.10
Exercised (147,699) 13.52 (391,965) 16.39 (927,497) 11.80
Shares under option at 3,790,496 21.99$ 3,094,160 22.95$ 2,792,585 16.50$
en
d
o
f
year
Exercisable at end of year 2,119,692 18.71$ 1,474,833 15.68$ 1,097,327 13.73$
2002 2001 2000
Years Ended December 31,
40