National Oilwell Varco 2003 Annual Report Download - page 39

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38
The purchase price has been allocated to the assets acquired and liabilities assumed based on their
relative fair values. We finalized the purchase price allocation in 2003 based upon independent
appraisals, other valuations and other actions. All of the goodwill from this acquisition has been
allocated to the Products and Technology segment and will be fully deductible for tax purposes.
The final allocation of the purchase price follows (in thousands):
Assets acquired:
Cash 47,000$
Other current assets 142,000
Fixed assets 30,000
Other 27,000
Goodwill 153,000
Intangible assets
-Indefinite lives (tradenames) 40,000
-Finite lives (primarily drawings) 29,000
468,000
Liabilities assumed:
Current liabilities 105,000
Debt obligations 93,000
Other 13,000
211,000
Net assets acquired 257,000$
The following unaudited pro forma information assumes the acquisition of Hydralift had occurred
as of the beginning of each year shown (in thousands):
2002
2001
Revenues $1,862,372 $2,003,995
Net income 87,148 116,718
Per diluted share $1.07 $1.43
Adjustments made to derive the pro forma data relate principally to acquisition financing. These
results are not necessarily indicative of what actually would have occurred if the acquisition had
happened as of the beginning of 2002 or 2001 nor are they indicative of future results. The
estimated effects of cost reductions arising from the acquisition of Hydralift have been excluded.
During 2002 we also acquired three other businesses, primarily within our Products and
Technology segment, for approximately $17 million in cash.
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