1000 - Condensed Consolidated S
1000 - Condensed Consolidated Statements of Operations (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Revenue | ||||
Services | $2,542 | $3,292 | $5,492 | $6,256 |
Product sales | 952 | 1,195 | 1,909 | 2,260 |
Total revenue | 3,494 | 4,487 | 7,401 | 8,516 |
Operating costs and expenses | ||||
Cost of services | 2,164 | 2,480 | 4,575 | 4,753 |
Cost of sales | 807 | 1,012 | 1,635 | 1,885 |
General and administrative | 48 | 71 | 100 | 143 |
Gain on sale of assets, net | (1) | (25) | (1) | (61) |
Total operating costs and expenses | 3,018 | 3,538 | 6,309 | 6,720 |
Operating income | 476 | 949 | 1,092 | 1,796 |
Interest expense | (82) | (42) | (135) | (84) |
Interest income | 3 | 9 | 5 | 29 |
Other, net | (14) | (2) | (19) | (3) |
Income from continuing operations before income taxes and noncontrolling interest | 383 | 914 | 943 | 1,738 |
Provision for income taxes | (117) | (288) | (296) | (526) |
Income from continuing operations | 266 | 626 | 647 | 1,212 |
Income (loss) from discontinued operations, net | (1) | (116) | (2) | (115) |
Net income | 265 | 510 | 645 | 1,097 |
Noncontrolling interest in net income of subsidiaries | (3) | (6) | (5) | (13) |
Net income attributable to company | 262 | 504 | 640 | 1,084 |
Amounts attributable to company shareholders | ||||
Income from continuing operations | 263 | 620 | 642 | 1,199 |
Income (loss) from discontinued operations, net | (1) | (116) | (2) | (115) |
Net income attributable to company | $262 | $504 | $640 | $1,084 |
Basic income per share attributable to company shareholders | ||||
Income from continuing operations (in dollars per share) | 0.29 | 0.71 | 0.71 | 1.37 |
Income (loss) from discontinued operations, net (in dollars per share) | $0 | -0.13 | $0 | -0.13 |
Net income per share (in dollars per share) | 0.29 | 0.58 | 0.71 | 1.24 |
Diluted income per share attributable to company shareholders | ||||
Income from continuing operations (in dollars per share) | 0.29 | 0.68 | 0.71 | 1.31 |
Income (loss) from discontinued operations, net (in dollars per share) | $0 | -0.13 | $0 | -0.13 |
Net income per share (in dollars per share) | 0.29 | 0.55 | 0.71 | 1.18 |
Cash dividends per share (in dollars per share) | 0.09 | 0.09 | 0.18 | 0.18 |
Basic weighted average common shares outstanding (in shares) | 898 | 875 | 898 | 877 |
Diluted weighted average common shares outstanding (in shares) | 900 | 918 | 899 | 916 |
1010 - Parenthetical Data to th
1010 - Parenthetical Data to the Condensed Consolidated Statements of Operations (USD $) | ||||
In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Income (loss) from discontinued operations, income tax benefit (provision) | $1 | $1 | $1 | $0 |
2000 - Condensed Consolidated B
2000 - Condensed Consolidated Balance Sheets (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Current assets | ||
Cash and equivalents | $1,568 | $1,124 |
Receivables (less allowance for bad debts) | 3,152 | 3,795 |
Inventories | 1,832 | 1,828 |
Investments in marketable securities | 753 | 0 |
Current deferred income taxes | 179 | 246 |
Other current assets | 524 | 418 |
Total current assets | 8,008 | 7,411 |
Property, plant, and equipment, net of accumulated depreciation | 5,357 | 4,782 |
Goodwill | 1,068 | 1,072 |
Investments in marketable securities | 763 | 0 |
Other assets | 1,019 | 1,120 |
Total assets | 16,215 | 14,385 |
Current liabilities | ||
Accounts payable | 755 | 898 |
Accrued employee compensation and benefits | 454 | 643 |
Department of Justice and Securities and Exchange Commission settlement and indemnity, current | 190 | 373 |
Deferred revenue | 226 | 231 |
Current maturities of long-term debt | 27 | 26 |
Other current liabilities | 568 | 610 |
Total current liabilities | 2,220 | 2,781 |
Long-term debt | 4,573 | 2,586 |
Employee compensation and benefits | 521 | 539 |
Other liabilities | 577 | 735 |
Total liabilities | 7,891 | 6,641 |
Shareholders' equity | ||
Common shares | 2,667 | 2,666 |
Paid-in capital in excess of par value | 395 | 484 |
Accumulated other comprehensive loss | (198) | (215) |
Retained earnings | 10,521 | 10,041 |
Treasury stock, at cost | (5,084) | (5,251) |
Company shareholders’ equity | 8,301 | 7,725 |
Noncontrolling interest in consolidated subsidiaries | 23 | 19 |
Total shareholders’ equity | 8,324 | 7,744 |
Total liabilities and shareholders’ equity | $16,215 | $14,385 |
2010 - Parenthetical Data to th
2010 - Parenthetical Data to the Condensed Consolidated Balance Sheet (USD $) | ||
In Millions, except Per Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Current assets | ||
Allowance for bad debts | $76 | $60 |
Accumulated depreciation | $4,935 | $4,566 |
Shareholders' equity | ||
Common shares, par value (in dollars per share) | 2.5 | 2.5 |
Common shares, authorized shares (in shares) | 2,000 | 2,000 |
Common shares, issued shares (in shares) | 1,067 | 1,067 |
Treasury stock, shares (in shares) | 167 | 172 |
4000 - Condensed Consolidated S
4000 - Condensed Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash flows from operating activities | ||
Net income | $645 | $1,097 |
Payments of Department of Justice and Securities and Exchange Commission settlement and indemnity | (322) | 0 |
Depreciation, depletion, and amortization | 439 | 342 |
Provision for deferred income taxes, continuing operations | 153 | 155 |
Receivables | 639 | (410) |
Inventories | (2) | (277) |
Accounts payable | (150) | 180 |
Other | (384) | (102) |
Total cash flows from operating activities | 1,018 | 985 |
Cash flows from investing activities | ||
Capital expenditures | (950) | (837) |
Sales (purchases) of investments in marketable securities | (1,518) | 388 |
Acquisitions of assets, net of cash acquired | (14) | (150) |
Other investing activities | 62 | 58 |
Total cash flows from investing activities | (2,420) | (541) |
Cash flows from financing activities | ||
Proceeds from long-term borrowings, net of offering costs | 1,975 | 0 |
Payments of dividends to shareholders | (162) | (158) |
Payments to reacquire common stock | (11) | (381) |
Other financing activities | 58 | 124 |
Total cash flows from financing activities | 1,860 | (415) |
Effect of exchange rate changes on cash | (14) | 4 |
Increase in cash and equivalents | 444 | 33 |
Cash and equivalents at beginning of period | 1,124 | 1,847 |
Cash and equivalents at end of period | 1,568 | 1,880 |
Supplemental disclosure of cash flow information | ||
Interest from continuing operations | 91 | 72 |
Income taxes from continuing operations | $344 | $473 |
5000 - Basis of Presentation
5000 - Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basis of Presentation | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2008 Annual Report on Form 10-K. Our accounting policies are in accordance with generally accepted accounting principles in the United States of America. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect:-the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and-the reported amounts of revenue and expenses during the reporting period.Ultimate results could differ from our estimates. In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of June 30, 2009, the results of our operations for the three and six months ended June 30, 2009 and 2008, and our cash flows for the six months ended June 30, 2009 and 2008. Such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2009 may not be indicative of results for the full year.We have evaluated subsequent events through July 24, 2009, the date of issuance of the condensed consolidated financial statements. In the first quarter of 2009, we reclassified certain services between our operating segments to re-establish a new service offering. In addition, during the first six months of 2009, we adopted the provisions of new accounting standards. See Notes 3, 8, and 11 for further information. All prior periods presented have been restated to reflect these changes. |
5010 - KBR Separation
5010 - KBR Separation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
KBR Separation | |
KBR Separation | Note 2. KBR Separation During 2007, we completed the separation of KBR, Inc. (KBR) from us byexchanging KBR common stock owned by us for our common stock. In addition, werecorded a liability reflecting the estimated fair value of the indemnities andguarantees provided to KBR as described below. Since the separation, we haverecorded adjustments to our liability for indemnities and guarantees to reflectchanges to our estimation of our remaining obligation. All such adjustments arerecorded in "Loss from discontinued operations, net of income tax." We entered into various agreements relating to the separation of KBR, including,among others, a master separation agreement, a registration rights agreement, atax sharing agreement, transition services agreements, and an employee mattersagreement. The master separation agreement provides for, among other things,KBR's responsibility for liabilities related to its business and ourresponsibility for liabilities unrelated to KBR's business. We provideindemnification in favor of KBR under the master separation agreement forcertain contingent liabilities, including our indemnification of KBR and any ofits greater than 50%-owned subsidiaries as of November 20, 2006, the date of themaster separation agreement, for: - fines or other monetary penalties or direct monetary damages,including disgorgement, as a result of a claim made or assessed by agovernmental authority in the United States, the United Kingdom, France,Nigeria, Switzerland, and/or Algeria, or a settlement thereof, related toalleged or actual violations occurring prior to November 20, 2006 of the UnitedStates Foreign Corrupt Practices Act (FCPA) or particular, analogous applicableforeign statutes, laws, rules, and regulations in connection with investigationspending as of that date, including with respect to the construction andsubsequent expansion by a consortium of engineering firms comprised of TechnipSA of France, Snamprogetti Netherlands B.V., JGC Corporation of Japan, andKellogg Brown & Root LLC (TSKJ) of a natural gas liquefaction complex andrelated facilities at Bonny Island in Rivers State, Nigeria; and - all out-of-pocket cash costs and expenses, or cash settlements orcash arbitration awards in lieu thereof, KBR may incur after the effective dateof the master separation agreement as a result of the replacement of the subseaflowline bolts installed in connection with the Barracuda-Caratinga project. Additionally, we provide indemnities, performance guarantees, surety bondguarantees, and letter of credit guarantees that are currently in place in favorof KBR's customers or lenders under project contracts, credit agreements,letters of credit, and other KBR credit instruments. These indemnities andguarantees will continue until they expire at the earlier of: (1) thetermination of the underlying project contract or KBR obligations thereunder;(2) the expiration of the relevant credit support instrument in accordance withits terms or release of such instrument by the customer; or (3) the expirationof the credit agreements. Further, KBR and we have agreed that, until December31, 2009, we will issue additional guarantees, indemnification, andreimbur |
5020 - Business Segment and Geo
5020 - Business Segment and Geographic Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Business Segment and Geographic Information | |
Business Segment and Geographic Information | Note 3. Business Segment and Geographic Information We operate under two divisions, which form the basis for the two operatingsegments we report: the Completion and Production segment and the Drilling andEvaluation segment. In the first quarter of 2009, we moved a portion of ourcompletion tools and services from the Completion and Production segment to theDrilling and Evaluation segment to re-establish our testing and subsea servicesoffering, which resulted in a change to our operating segments. Testing andsubsea services provide acquisition and analysis of dynamic reservoir information and reservoir optimization solutions to the oil and gas industryutilizing downhole test tools, data acquisition services using telemetry andelectronic memory recording, fluid sampling, surface well testing, subsea safetysystems, and reservoir engineering services. All periods presented reflectreclassifications related to the change in operating segments. The following table presents information on our business segments. "Corporateand other" includes expenses related to support functions and corporateexecutives. Also included are certain gains and losses not attributable to aparticular business segment. Intersegment revenue was immaterial. Our equity in earnings and losses ofunconsolidated affiliates that are accounted for by the equity method areincluded in revenue and operating income of the applicable segment. Three Months Ended Six Months Ended June 30 June 30Millions of dollars 2009 2008 2009 2008Revenue:Completion and Production $ 1,752 $ 2,357 $3,780 $ 4,479Drilling and Evaluation 1,742 2,130 3,621 4,037Total revenue $ 3,494 $ 4,487 $ 7,401$ 8,516 Operating income: Completion and Production $ 243 $ 537 $606 $ 1,041Drilling and Evaluation 284 504 588913 Total operations 527 1,041 1,1941,954Corporate and other (51) (92) (102)(158)Total operating income $ 476 $ 949 $1,092 $ 1,796Interest expense (82) (42) (135)(84)Interest income 3 9 5 29Other, net (14) (2) (19)(3)Income from continuing operations before income taxes and noncontrolling interest $ 383 $914 $ 943 $ 1,738 Receivables As of June 30, 2009, 24% of our gross trade receivables were from customers inthe United States. As of December 31, 2008, 34% of our gross trade receivableswere from customers in the United States. |
5030 - Inventories
5030 - Inventories | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Inventories | |
Inventories | Note 4. Inventories Inventories are stated at the lower of cost or market. In the United States, we manufacture certain finished products and have parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method totaling $79 million at June 30, 2009 and $92 million at December 31, 2008. If the average cost method was used, total inventories would have been $33 million higher than reported at June 30, 2009 and $31 million higher than reported at December 31, 2008. The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following: June 30,December 31, Millions of dollars20092008 Finished products and parts$1,227$1,312Raw materials and supplies568446Work in process3770Total$1,832$1,828 Finished products and parts are reported net of obsolescence reserves of $95 million at June 30, 2009 and $81 million at December 31, 2008. |
5040 - Debt
5040 - Debt | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Debt | |
Debt | Note 5. Debt Senior unsecured indebtedness In the first quarter of 2009, we issued $1 billion aggregate principal amount of senior notes due September 2039 bearing interest at a fixed rate of 7.45% and $1 billion aggregate principal amount of senior notes due September 2019 bearing interest at a fixed rate of 6.15%. We may redeem some of the notes of each series from time to time or all of the notes of each series at any time at the redemption prices, plus accrued and unpaid interest. The notes are general, senior unsecured indebtedness and rank equally with all of our existing and future senior unsecured indebtedness. Revolving credit facility In March 2009, we terminated the $400 million unsecured, six-month revolving credit facility established in October 2008 to provide additional liquidity and for other general corporate purposes. |
5050 - Shareholders' Equity
5050 - Shareholders' Equity | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Shareholders' Equity | |
Shareholders' Equity | Note 6. Shareholders' Equity The following tables summarize our shareholders' equity activity. Noncontrolling Total Company interest in shareholders' shareholders' consolidatedMillions of dollars equity equity subsidiariesBalance at December 31, 2008 $ 7,744 $ 7,725$ 19Transactions with shareholders 80 81 (1)Comprehensive income: Net income 645 640 5 Other comprehensive income 17 17 -Total comprehensive income 662 657 5Dividends paid on common stock (162) (162) -Balance at June 30, 2009 $ 8,324 $ 8,301 $23 Noncontrolling Total Company interest in shareholders' shareholders' consolidatedMillions of dollars equity equity subsidiariesBalance at December 31, 2007 $ 6,966 $ 6,873$ 93Share repurchases (360) (360) -Other transactions with shareholders 136 142 (6)Comprehensive income: Net income 1,097 1,084 13 Other comprehensive income 4 4 -Total comprehensive income 1,101 1,088 13Dividends paid on common stock (158) (158) -Balance at June 30, 2008 $ 7,685 $ 7,585 $100 The following table summarizes comprehensive income for the quarterly periodspresented. Three Months Ended June 30 Millions of dollars 2009 2008 Net income $ 265 $ 510 Other comprehensive income 26 2Total comprehensive income $ 291 $ 512 Comprehensive income attributable to noncontrolling interest 3 6 Comprehensive income attributable to company 288506 Accumulated other comprehensive loss consisted of the following: June 30, December 31,Millions of dollars 2009 2008Defined benefit and other postretirement liability adjustments $(132) $ (151)Cumulative translation adjustments (63) (60)Unrealized losses on investments (3) (4)Total accumulated other comprehensive loss $ (198) $ (215) |
5060 - Commitments and Continge
5060 - Commitments and Contingencies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Foreign Corrupt Practices Act investigations Background. As a result of an ongoing FCPA investigation at the time of the KBRseparation, we provided indemnification in favor of KBR under the masterseparation agreement for certain contingent liabilities, including ourindemnification of KBR and any of its greater than 50%-owned subsidiaries as ofNovember 20, 2006, the date of the master separation agreement, for fines orother monetary penalties or direct monetary damages, including disgorgement, asa result of a claim made or assessed by a governmental authority in the UnitedStates, the United Kingdom, France, Nigeria, Switzerland, and/or Algeria, or asettlement thereof, related to alleged or actual violations occurring prior toNovember 20, 2006 of the FCPA or particular, analogous applicable foreignstatutes, laws, rules, and regulations in connection with investigations pendingas of that date, including with respect to the construction and subsequentexpansion by TSKJ of a multibillion dollar natural gas liquefaction complex andrelated facilities at Bonny Island in Rivers State, Nigeria. TSKJ is a private limited liability company registered in Madeira, Portugalwhose members are Technip SA of France, Snamprogetti Netherlands B.V. (asubsidiary of Saipem SpA of Italy), JGC Corporation of Japan, and Kellogg Brown& Root LLC (a subsidiary of KBR), each of which had an approximate 25% interestin the venture. TSKJ and other similarly owned entities entered into variouscontracts to build and expand the liquefied natural gas project for Nigeria LNGLimited, which is owned by the Nigerian National Petroleum Corporation, ShellGas B.V., Cleag Limited (an affiliate of Total), and Agip International B.V. (anaffiliate of ENI SpA of Italy). DOJ and SEC investigations resolved. In February 2009, the FCPA investigationsby the DOJ and the SEC were resolved with respect to KBR and us. The DOJ andSEC investigations resulted from allegations of improper payments to governmentofficials in Nigeria in connection with the construction and subsequentexpansion by TSKJ of the Bonny Island project. The DOJ investigation was resolved with respect to us with a non-prosecutionagreement in which the DOJ agreed not to bring FCPA or bid coordination-related charges against us with respect to the matters under investigation, and in whichwe agreed to continue to cooperate with the DOJ's ongoing investigation and torefrain from and self-report certain FCPA violations. The DOJ agreement doesnot provide a monitor for us. As part of the resolution of the SEC investigation, we retained an independentconsultant to conduct a 60-day review and evaluation of our internal controlsand record-keeping policies as they relate to the FCPA, and we agreed to adoptany necessary anti-bribery and foreign agent internal controls andrecord-keeping procedures recommended by or agreed upon with the independentconsultant. The review and evaluation were completed during the second quarterof 2009, and we have implemented the consultant's immediate recommendations andwill implement the remaining long-term recommendations over the next year. As aresult of the substantial enha |
5070 - Income per Share
5070 - Income per Share | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Income per Share | |
Income per Share | Note 8. Income per Share Basic income per share is based on the weighted average number of common sharesoutstanding during the period. Diluted income per share includes additionalcommon shares that would have been outstanding if potential common shares with adilutive effect had been issued. On January 1, 2009, we adopted Financial Accounting Standards Board (FASB) StaffPosition (FSP) Emerging Issues Task Force (EITF) 03-6-1, "Determining WhetherInstruments Granted in Share-Based Payment Transactions Are Participating Securities." This FSP provides that unvested share-based payment awards thatcontain nonforfeitable rights to dividends or dividend equivalents, whether paidor unpaid, are participating securities and shall be included in the computationof both basic and diluted earnings per share. According to the provisions ofFSP EITF 03-6-1, we restated prior periods' basic and diluted earnings per shareto include such outstanding unvested restricted shares of our common stock inthe basic weighted average shares outstanding calculation. Upon adoption, bothbasic and diluted income per share for the first six months of 2008 and fullyear 2008 decreased by $0.01 for continuing operations and net incomeattributable to company shareholders. A reconciliation of the number of shares used for the basic and dilutedincome per share calculations is as follows: Three Months Ended Six Months Ended June 30 June 30Millions of shares 2009 2008 2009 2008Basic weighted average common shares outstanding 898 875 898 877Dilutive effect of: Convertible senior notes premium - 38 - 34 Stock options 2 5 1 5Diluted weighted average common shares outstanding 900 918 899916 Excluded from the computation of diluted income per share are options topurchase eight million and nine million shares of common stock that wereoutstanding during the three and six months ended June 30, 2009 and one millionshares during both the three and six months ended June 30, 2008. These optionswere outstanding during these periods but were excluded because they wereantidilutive, as the option exercise price was greater than the average market price of the common shares. |
5080 - Retirement Plans
5080 - Retirement Plans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Retirement Plans | |
Retirement Plans | Note 10. Retirement Plans The components of net periodic benefit cost related to pension benefits for thethree and six months ended June 30, 2009 and June 30, 2008 were as follows: Three Months Ended June 30 2009 2008 Millions of dollars United States International United States InternationalService cost $ - $ 7 $ - $ 6Interest cost 1 11 1 13Expected return on plan assets (2) (9)(2) (12)Settlements/curtailments 1 1 --Recognized actuarial loss 1 1 12Net periodic benefit cost $ 1 $ 11 $ -$ 9 Six Months Ended June 30 2009 2008 Millions of dollars United States International United States InternationalService cost $ - $ 13 $ - $13Interest cost 3 21 3 26Expected return on plan assets (4) (17)(4) (23)Settlements/curtailments 1 1 --Recognized actuarial loss 1 2 23Net periodic benefit cost $ 1 $ 20 $ 1$ 19 During the six months ended June 30, 2009, we contributed $9 million to ourinternational pension plans. We currently expect to contribute an additional$82 million to our international pension plans in 2009, of which $66 millionrepresents discretionary contributions to our United Kingdom pension plan madein July 2009. We expect to make discretionary contributions of approximately$11 million to our United States pension plans in 2009. Effective June 30, 2009, we amended our United Kingdom pension plan to ceasebenefit accruals related to service thereafter, resulting in a $32 milliondecrease in the projected benefit obligation and a $24 million decrease, net of tax, in other comprehensive loss. |
5090 - New Accounting Standards
5090 - New Accounting Standards | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
New Accounting Standards | |
New Accounting Standards | Note 11. New Accounting Standards In May 2009, the FASB issued Statement of Financial Accounting Standards (SFAS)No. 165 "Subsequent Events," which establishes general standards of accountingfor and disclosures of events that occur after the balance sheet date but beforethe financial statements are issued or are available to be issued. It requiresthe disclosure of the date through which an entity has evaluated subsequentevents. SFAS No. 165 is effective for interim and annual reporting periodsending after June 15, 2009. We adopted the new disclosure requirements in ourJune 30, 2009 condensed consolidated financial statements. On June 30, 2009, we adopted FSP SFAS 107-1 and Accounting Principles Board(APB) 28-1, "Interim Disclosures about Fair Value of Financial Instruments."This FSP, which amends SFAS No. 107, "Disclosures about Fair Value of FinancialInstruments," requires publicly-traded companies, as defined in APB Opinion No.28, "Interim Financial Reporting," to provide disclosures on the fair value offinancial instruments in interim financial statements. On January 1, 2009, we adopted the provisions of SFAS No. 160, "NoncontrollingInterests in Consolidated Financial Statements - An Amendment of ARB No. 51."SFAS No. 160 establishes new accounting, reporting, and disclosure standards forthe noncontrolling interest in a subsidiary and for the deconsolidation of asubsidiary. This statement requires the recognition of a noncontrolling interest as equity in the condensed consolidated financial statements andseparate from the parent's equity. Noncontrolling interest has been presentedas a separate component of shareholders' equity for the current reporting periodand prior comparative period in our condensed consolidated financial statements. On January 1, 2009, we adopted the provisions of SFAS No. 141 (Revised 2007),"Business Combinations" (SFAS No. 141(R)), which retains the underlying conceptsof SFAS No. 141 in that all business combinations are still required to beaccounted for at fair value under the acquisition method of accounting, butchanges the method of applying the acquisition method in a number of ways.Acquisition costs are no longer considered part of the fair value of anacquisition and will generally be expensed as incurred, noncontrolling interestsare valued at fair value at the acquisition date, in-process research anddevelopment is recorded at fair value as an indefinite-lived intangible asset atthe acquisition date, restructuring costs associated with a business combinationare generally expensed subsequent to the acquisition date, and changes indeferred tax asset valuation allowances and income tax uncertainties after theacquisition date generally will affect income tax expense. In April 2009, theFASB issued FSP SFAS 141(R)-1, "Accounting for Assets Acquired and LiabilitiesAssumed in a Business Combination That Arise from Contingencies," which amendsthe guidance in SFAS No. 141(R) to require contingent assets acquired andliabilities assumed in a business combination to be recognized at fair value onthe acquisition date if fair value can be reasonably estimated during themeasurement period. If fair value cannot be reasonably es |
5130 - Fair Value of Financial
5130 - Fair Value of Financial Instruments Disclosure | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value of Financial Instruments Disclosure | |
Fair Value of Financial Instruments Disclosure [Text Block] | Note 9. Fair Value of Financial Instruments During the second quarter of 2009, we purchased $1.5 billion in United StatesTreasury securities with maturities that extend through September 2010. Thesesecurities are accounted for as available-for-sale and recorded at fair valueand classified by maturity date in "Investments in marketable securities" on thecondensed consolidated balance sheet at June 30, 2009. The fair value of $399 million and $412 million of our long-term debt at June30, 2009 and December 31, 2008 was calculated based on the fair value of otheractively-traded, Halliburton debt. The carrying amount of cash and equivalents,receivables, short-term notes payable, and accounts payable, as reflected in thecondensed consolidated balance sheets, approximates fair market value due to theshort maturities of these instruments. The following table presents the fairvalues of our other financial assets and liabilities and the basis fordetermining their fair values: Quoted prices in active Significant markets for observable inputs Carrying identical assets for similar assets orMillions of dollars Value Fair value or liabilities liabilitiesJune 30, 2009 Marketable securities $ 1,516 $ 1,516 $ 1,516 $- Long-term debt 4,600 5,044 4,645 399December 31, 2008 Long-term debt $ 2,612 $ 2,826 $ 2,414 $ 412 |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 17, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | Halliburton Company | ||
Entity Central Index Key | 0000045012 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $46,371,000,000 | ||
Entity Common Stock, Shares Outstanding | 901,714,840 |