NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 15. Expenses by Nature The Company presents certain expenses in the consolidated Statement of Net Income and Comprehensive  Income by function. The following table presents those expenses by nature:  The following table summarizes stock options reserved, granted and available for future issuance:  The Company did not have any outstanding SARs during either 2013 or 2012; therefore no corresponding  liability is recorded on the Statement of Financial Position.  Year Ended $Thousands  December 31 2013 December 31 2012 Expenses Salaries, wages and benefits  $ 88,520   $ 91,645  Materials and supplies 11,563 36,102  Repairs and maintenance  16,285  20,180 External services and facilities 8,178  8,389   $ 124,546  $ 156,316  Allocated to: Operating and maintenance  $ 106,281   $ 137,854  Selling and administrative 18,265  18,462   $ 124,546  $ 156,316  (Number of Options) December 31 2013 December 31 2012 Reserved under current stock option plan  1,700,000   1,700,000  Balance at beginning of year  677,500  779,500 Granted during the year   (108,500)  (102,500) Available for future issuance  569,000  677,000  16. Stock-based Compensation Plans 55 AKITA DRILLING LTD.  ANNUAL REPORT