National Oilwell Varco 2003 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2003 National Oilwell Varco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

45
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,
2003, approximately 3.5 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 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, 2003 under the stock option plans have exercise prices
between $5.62 and $40.50 per share, and expire at various dates from February 9, 2004 to
September 24, 2013.
The following summarizes options activity:
2001
Number
of shares
Average
Exercise
Price
Number
of shares
Average
Exercise
Price
Number
of shares
Average
Exercise
Price
Shares under option at 3,790,496 21.99$ 3,094,160 22.95$ 2,792,585 16.50$
beginning of year
Granted 1,035,000 20.05 977,500 18.53 911,626 40.50
Cancelled (304,659) 28.01 (133,465) 28.54 (218,086) 25.47
Exercised (910,266) 10.47 (147,699) 13.52 (391,965) 16.39
Shares under option at 3,610,571 23.83$ 3,790,496 21.99$ 3,094,160 22.95$
en
d
o
f
year
Exercisable at end of year 1,713,647 25.47$ 2,119,692 18.71$ 1,474,833 15.68$
2003 2002
Years Ended December 31,