04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 62 Summarized financial information of Atwood is as follows: September 30, 2003 2002 2001 (in thousands) Gross revenues 163,454 $ 144,766  $ 149,157  Costs and expenses  155,867 157,568 120,872 Net income (loss) $ 7,587  $ (12,802)  $ 28,285 Helmerich & Payne, Inc.’s equity in  net income (loss), net of income taxes $ 724 $ (1,414) $ 4,206 Current assets  $ 92,966 $ 72,182  $ 71,813 Noncurrent assets  405,970 447,464 372,717 Current liabilities  60,053 40,504  24,416  Noncurrent liabilities  167,294 215,757  143,981 Shareholders’ equity  271,589 263,385  276,133 Helmerich & Payne, Inc.’s investment $ 57,824 $ 56,655  $ 58,937 Deferred income taxes ar computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of the Company’s assets and liabilities. INCOME TAXES OTHER POST EMPLOYMENT BENEFITS EARNINGS PER SHARE EMPLOYEE STOCK-BASED AWARDS The Company sponsors a health care plan that provides post r etirement medical benefits to retired employees. Employees who retire after November 1, 1992 and elect to participate in the plan pay the entire estimated cost of such benefits. The Company has accrued a liability for estimated worker’ s compensation claims incurred. The liability for other benefits to former or inactive employees after employment but before retirement is not material. Basic earnings per shar is based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive ef fect of stock options and restricted stock. Employee stock-based awards ar accounted for under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” and related interpr etations. Fixed plan common stock options generally do not result in compensation expense, because the exercise price of the options issued by the Company equals the market price of the underlying stock on the date of grant. The plans under which the Company issues stock based awards are described mor fully in Note 6. The following table illustrates the effect on net income and earnings per shar as if the Company had applied the fair value recognition provisions of SFAS No. 123, “Accounting for Stock-Based Compensation.” 63