Merger related costs of $75.6 million include severance and other external costs directly related to the Merger.
Transaction costs of $10.9 million for the year ending December 31, 2008 were comprised of $6.0 million for accelerated vesting of stock-based compensation, $4.0 million for bridge loan fees and $0.9 million of other costs and are included in selling, general and administrative expense in the Consolidated Statements of Income.
Preliminary Purchase Price Allocation Under the purchase method of accounting, the total preliminary purchase price was allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their estimated fair values as of April 21, 2008.
The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill.
The preliminary allocation of the purchase price was based upon preliminary valuations, and our estimates and assumptions are subject to change upon the receipt and management’s review of the final valuations.
The primary areas of the purchase price allocation, which are not yet finalized, relate to identifiable intangible assets, goodwill, certain preacquisition contingencies and related adjustments to deferred taxes.
The final valuation of net assets is expected to be completed as soon as possible, but no later than one year from the acquisition date.
The following table, set forth below, displays the total preliminary purchase price allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their estimated fair values as of April 21, 2008 (in millions):
## Table 0 ##
Under purchase accounting, a fair value step up adjustment of $89.1 million was made to inventory and is being charged to “Cost of sales” as the applicable inventory is sold.
Cost of sales includes $89.1 million of these inventory charges for the year ended December 31, 2008.
Additionally, the Company identified other intangible assets associated with tradenames, patents, and customer relationships, and the preliminary fair values assigned were $1.2 billion, $0.3 billion, and $2.2 billion, respectively.
The initial range of useful lives associated with trade names, patents, and customer relationships were 40 years to an indefinite life, 5 to 15 years and 16 to 17 years, respectively.
Of the $1.2 billion associated with trade names, $0.8 billion has been initially identified as having an indefinite life.
Disposition of Certain Grant Prideco Businesses Prior to the Merger, Grant Prideco had entered into a definitive Purchase and Sale Agreement with Vallourec S. A.  and Vallourec & Mannesman Holdings, Inc.  (collectively referred to as “Vallourec”) to sell four of its tubular businesses for approximately $800 million in cash, subject to final working capital adjustments and standard closing conditions (including regulatory approval).
The transaction closed May 16, 2008.
The amount included in “Assets held for sale, net” included in the preliminary purchase price allocation above, relates to this disposition.
Additionally, $255.8 million is included above in “Accrued income taxes” for taxes related to the disposition.
## Table 1 ##
13.
Common Stock National Oilwell Varco has authorized 500 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.
On November 11, 2009 National Oilwell Varco’s Board of Directors approved a special one-time cash dividend of $1.00 per share of common stock along with the commencement of a regular quarterly dividend of $0.10 per share.
The special cash dividend and the first quarterly dividend was paid on December 16, 2009 to each stockholder of record on December 2, 2009.
The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Board of Directors.
On August 22, 2007, the Company’s Board of Directors approved a two-for-one stock split in the form of a stock dividend to the Company’s stockholders of record on September 7, 2007, with distribution of shares on September 28, 2007.
The total number of authorized common stock shares and associated par value were unchanged by this action.
All per-share amounts in the financial statements reflect the stock split for all periods presented unless indicated otherwise.
Stock Options Under the terms of National Oilwell Varco’s Long-Term Incentive Plan, as amended, 25.5 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 ten years from the date of grant.
The purchase price of options granted may not be less than the closing market price of National Oilwell Varco common stock on the date of grant.
At December 31, 2009, approximately 12 million shares were available for future grants.
We also have inactive stock option plans that were acquired in connection with the acquisitions of Varco International, Inc.  in 2005 and Grant Prideco in 2008.
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 Varco Long-Term Incentive Plan and stock plans of acquired companies.
Options outstanding at December 31, 2009 under the stock option plans have exercise prices between $8.83 and $73.98 per share, and expire at various dates from January 25, 2010 to May 13, 2019.
The following summarizes options activity:
## Table 2 ##
Index to Financial Statements Distribution & Transmission Our Distribution & Transmission segment provides maintenance, repair and operating supplies (?MRO?)
and spare parts to drill site and production locations worldwide.
In addition to its comprehensive network of field locations supporting land drilling operations throughout North America, the segment supports major offshore operations for all the major oil and gas producing regions throughout the world.
The segment employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe.
The segment also has a global reach in oil and gas, waste water treatment, chemical, food and beverage, paper and pulp, mining, agriculture, and a variety of municipal markets and is a leading producer of water transmission pipe and fabricated steel products, such as wind towers, and specialized materials and products used in infrastructure projects.
Demand for the segment?s services is determined primarily by the level of drilling, servicing, and oil and gas production activities and is also influenced by the domestic economy in general, housing starts and government policies.
This segment has benefited from several strategic acquisitions and other investments completed during the past few years, including additional operations in the United States, Canada, the United Kingdom, Kazakhstan, Singapore, Russia, and Malaysia.
The following table sets forth the contribution to our total revenues of our three operating segments (in millions):
## Table 3 ##
See Note 15 to the Consolidated Financial Statements included in this Annual Report on Form 10-K for financial information by segment and a geographical breakout of revenues and long-lived assets.
We have included a glossary of oilfield terms at the end of Item 1.
?Business?
of this Annual Report.
Influence of Oil and Gas Activity Levels on the Company?s Business The oil and gas industry in which the Company participates has historically experienced significant volatility.
Demand for the Company?s services and products depends primarily upon the general level of activity in the oil and gas industry worldwide, including the number of drilling rigs in operation, the number of oil and gas wells being drilled, the depth and drilling conditions of these wells, the volume of production, the number of well completions and the level of well remediation activity.
Oil and gas activity is in turn heavily influenced by, among other factors, oil and gas prices worldwide.
High levels of drilling and well remediation activity generally spurs demand for the Company?s products and services used to drill and remediate oil and gas wells.
Additionally, high levels of oil and gas activity increase cash flows available for oil and gas companies, drilling contractors, oilfield service companies, and manufacturers of oil country tubular goods (?OCTG?)
to invest in capital equipment that the Company sells.
Beginning in early 2004, increasing oil and gas prices led to steadily rising levels of drilling activity throughout the world.
Concerns about the long-term availability of oil and gas supply also began to build.
Consequently, the worldwide rig count increased 11% in 2006, 2% in 2007, and 7% in 2008.
As a result of higher cash flows realized by many of the Company?s customers, as well as the long-term concerns about supply-demand imbalance and the need to replace aging equipment, market conditions for capital equipment purchases improved significantly between 2006 and 2007, resulting in higher backlogs for the Company at the end of 2008 compared to the end of 2006 and 2007.
However, as a result of the financial crisis and significantly lower commodity prices, the worldwide drilling rig count declined 31% in 2009 and customers were far less willing to commit to major capital equipment purchases in 2009.
As a result, our order rates were substantially lower in 2009.
In 2010, as the financial crisis eased and oil prices recovered, order rates began to improve across a broad array of rig equipment, with a particular focus on continued build out of the deepwater fleet.2011 saw a further improvement in order rates as commodity prices remained at levels supporting sustained capital spending by our customers.
The rig count rose 16% in 2011 compared to 2010.
Backlog for the Company was approximately $10.2 billion at December 31, 2011 compared to approximately $5.0 billion and $6.4 billion for December 31, 2010 and 2009, respectively.
In 2009, 2010 and 2011, most of the Company?s revenue from Rig Technology resulted from major capital expenditures of drilling contractors, well servicing companies, and oil companies on rig construction and refurbishment, and well servicing equipment.
These capital expenditures are influenced by the amount of cash flow that contractors and service companies generate from drilling, completion, and remediation activity; as well as by the availability of financing, the outlook for future drilling and well servicing activity, and other factors.
Generally, the Company believes the demand for capital equipment lags increases in the level of drilling activity.
Most of the remainder of the Rig Technology segment?s revenue is related to the sale of spare parts and consumables, the provision of equipment-repair services, and the rental of equipment, which the Company believes are generally determined directly by the level of drilling and well servicing activity.
Table of Contents Distribution & Transmission Our Distribution & Transmission segment provides pipe, maintenance, repair and operating supplies (?MRO?)
and spare parts to drill sites and production locations, pipeline operations, and processing plants worldwide.
In addition to its comprehensive field location network, which supports land drilling operations throughout North America, the segment supports major land and offshore operations for all the major oil and gas producing regions throughout the world.
The segment employs advanced information technologies to provide complete procurement, materials management and logistics services to its customers around the globe.
The segment also has a global reach in oil and gas, waste water treatment, chemical, food and beverage, paper and pulp, mining, agriculture, and a variety of municipal markets and is a leading producer of water transmission pipe, fabricated steel products and specialized materials and products used in infrastructure projects.
Demand for the segment?s services is determined primarily by the level of drilling, servicing, and oil and gas production activities.
It is also influenced by the domestic economy in general, housing starts and government policies.
This segment has benefited from several strategic acquisitions and other investments completed around the world during the past few years, including the acquisition of the Wilson distribution business segment from Schlumberger Limited and CE Franklin Ltd.  in Canada, both of which were completed in 2012, as well as additional operations in the United States, Canada, the United Kingdom, Kazakhstan, Singapore, Russia, and Malaysia.
The following table sets forth the contribution to our total revenues of our three operating segments (in millions):

<table><tr><td>Cash and cash equivalents</td><td>$170.9</td></tr><tr><td>Receivables</td><td>419.7</td></tr><tr><td>Assets held for sale, net</td><td>783.9</td></tr><tr><td>Inventories</td><td>616.7</td></tr><tr><td>Prepaid and other current assets</td><td>209.6</td></tr><tr><td>Property, plant and equipment</td><td>392.0</td></tr><tr><td>Goodwill</td><td>2,739.0</td></tr><tr><td>Intangibles</td><td>3,695.9</td></tr><tr><td>Investment in unconsolidated affiliate</td><td>511.6</td></tr><tr><td>Other assets</td><td>97.5</td></tr><tr><td>Accounts payable and accrued liabilities</td><td>-316.4</td></tr><tr><td>Accrued income taxes</td><td>-623.9</td></tr><tr><td>Long-term debt</td><td>-176.4</td></tr><tr><td>Deferred income taxes</td><td>-1,278.0</td></tr><tr><td>Minority interest</td><td>-24.8</td></tr><tr><td>Other liabilities</td><td>-18.7</td></tr><tr><td>Total preliminary purchase price</td><td>$7,198.6</td></tr></table>
<table><tr><td>2010</td><td>$122</td></tr><tr><td>2011</td><td>88</td></tr><tr><td>2012</td><td>68</td></tr><tr><td>2013</td><td>52</td></tr><tr><td>2014</td><td>44</td></tr><tr><td>Thereafter</td><td>179</td></tr><tr><td>Total future lease commitments</td><td>$553</td></tr></table>
<table><tr><td></td><td colspan="6"> Years Ended December 31,</td></tr><tr><td></td><td colspan="2"> 2009</td><td colspan="2"> 2008</td><td colspan="2"> 2007</td></tr><tr><td></td><td>Number</td><td> Average</td><td>Number</td><td> Average</td><td>Number</td><td> Average</td></tr><tr><td></td><td>of</td><td> Exercise</td><td>of</td><td> Exercise</td><td>of</td><td> Exercise</td></tr><tr><td></td><td>Shares</td><td> Price</td><td>Shares</td><td> Price</td><td>Shares</td><td> Price</td></tr><tr><td>Shares under option at beginningof year</td><td>7,547,822</td><td>$37.24</td><td>7,903,832</td><td>$29.12</td><td>10,559,862</td><td>$23.28</td></tr><tr><td>Granted</td><td>3,234,400</td><td>26.03</td><td>2,993,000</td><td>48.59</td><td>2,381,300</td><td>35.55</td></tr><tr><td>Cancelled</td><td>-156,356</td><td>29.79</td><td>-218,560</td><td>30.90</td><td>-301,608</td><td>30.55</td></tr><tr><td>Exercised</td><td>-369,884</td><td>40.86</td><td>-3,130,450</td><td>27.08</td><td>-4,735,722</td><td>19.28</td></tr><tr><td>Shares under option at end of year</td><td>10,255,982</td><td>$34.19</td><td>7,547,822</td><td>$37.24</td><td>7,903,832</td><td>$29.12</td></tr><tr><td>Exercisable at end of year</td><td>5,308,465</td><td>$33.14</td><td>3,110,462</td><td>$26.17</td><td>1,619,374</td><td>$19.55</td></tr></table>
<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Revenue:</td><td></td><td></td><td></td></tr><tr><td>Rig Technology</td><td>$7,788</td><td>$6,965</td><td>$8,093</td></tr><tr><td>Petroleum Services & Supplies</td><td>5,654</td><td>4,182</td><td>3,745</td></tr><tr><td>Distribution & Transmission</td><td>1,873</td><td>1,546</td><td>1,350</td></tr><tr><td>Eliminations</td><td>-657</td><td>-537</td><td>-476</td></tr><tr><td>Total Revenue</td><td>$14,658</td><td>$12,156</td><td>$12,712</td></tr></table>

Question: What's the current growth rate of Number of Shares for Shares under option at end of year Ended December 31?
Answer: 0.3588