Condensed Consolidated Statemen
| Condensed Consolidated Statements of Operations (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Revenue | ||||
| Services | $2,645 | $3,608 | $8,137 | $9,864 |
| Product sales | 943 | 1,245 | 2,852 | 3,505 |
| Total revenue | 3,588 | 4,853 | 10,989 | 13,369 |
| Operating costs and expenses | ||||
| Cost of services | 2,270 | 2,670 | 6,845 | 7,423 |
| Cost of sales | 796 | 1,055 | 2,431 | 2,940 |
| General and administrative | 49 | 78 | 149 | 221 |
| Gain on sale of assets, net | (1) | (1) | (2) | (62) |
| Total operating costs and expenses | 3,114 | 3,802 | 9,423 | 10,522 |
| Operating income | 474 | 1,051 | 1,566 | 2,847 |
| Interest expense | (80) | (35) | (215) | (119) |
| Interest income | 3 | 6 | 8 | 35 |
| Other, net | (4) | (4) | (23) | (7) |
| Income from continuing operations before income taxes and noncontrolling interest | 393 | 1,018 | 1,336 | 2,756 |
| Provision for income taxes | (124) | (343) | (420) | (869) |
| Income from continuing operations | 269 | 675 | 916 | 1,887 |
| Loss from discontinued operations, net of income tax benefit (provision) of $2, $(1), $3, and $(1) | (3) | 0 | (5) | (115) |
| Net income | 266 | 675 | 911 | 1,772 |
| Noncontrolling interest in net income of subsidiaries | (4) | (3) | (9) | (16) |
| Net income attributable to company | 262 | 672 | 902 | 1,756 |
| Amounts attributable to company shareholders | ||||
| Income from continuing operations | 265 | 672 | 907 | 1,871 |
| Loss from discontinued operations, net | (3) | 0 | (5) | (115) |
| Net income attributable to company | $262 | $672 | $902 | $1,756 |
| Basic income per share attributable to company shareholders | ||||
| Income from continuing operations | 0.29 | 0.76 | 1.01 | 2.13 |
| Loss from discontinued operations, net | $0 | $0 | -0.01 | -0.13 |
| Net income per share | 0.29 | 0.76 | $1 | $2 |
| Diluted income per share attributable to company shareholders | ||||
| Income from continuing operations | 0.29 | 0.74 | 1.01 | 2.05 |
| Loss from discontinued operations, net | $0 | $0 | -0.01 | -0.13 |
| Net income per share | 0.29 | 0.74 | $1 | 1.92 |
| Cash dividends per share | 0.09 | 0.09 | 0.27 | 0.27 |
| Basic weighted average common shares outstanding | 902 | 882 | 899 | 879 |
| Diluted weighted average common shares outstanding | 904 | 908 | 901 | 913 |
Parenthetical Data to the Conde
| Parenthetical Data to the Condensed Consolidated Statements of Operations (USD $) | ||||
| In Millions | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Loss from discontinued operations, income tax benefit | $2 | ($1) | $3 | ($1) |
Condensed Consolidated Balance
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Millions | Sep. 30, 2009
| Dec. 31, 2008
|
| Current assets | ||
| Cash and equivalents | $1,675 | $1,124 |
| Receivables (less allowance for bad debts of $89 and $60) | 3,098 | 3,795 |
| Inventories | 1,716 | 1,828 |
| Investments in marketable securities | 1,515 | 0 |
| Current deferred income taxes | 198 | 246 |
| Other current assets | 497 | 418 |
| Total current assets | 8,699 | 7,411 |
| Property, plant, and equipment, net of accumulated depreciation of $5,067 and $4,566 | 5,564 | 4,782 |
| Goodwill | 1,093 | 1,072 |
| Other assets | 981 | 1,120 |
| Total assets | 16,337 | 14,385 |
| Current liabilities | ||
| Accounts payable | 800 | 898 |
| Accrued employee compensation and benefits | 487 | 643 |
| Department of Justice and Securities and Exchange Commission settlement and indemnity, current | 190 | 373 |
| Deferred revenue | 194 | 231 |
| Current maturities of long-term debt | 0 | 26 |
| Other current liabilities | 513 | 610 |
| Total current liabilities | 2,184 | 2,781 |
| Long-term debt | 4,573 | 2,586 |
| Employee compensation and benefits | 466 | 539 |
| Other liabilities | 538 | 735 |
| Total liabilities | 7,761 | 6,641 |
| Shareholders' equity | ||
| Common shares, par value $2.50 per share – authorized 2,000 shares, issued 1,067 shares | 2,667 | 2,666 |
| Paid-in capital in excess of par value | 397 | 484 |
| Accumulated other comprehensive loss | (202) | (215) |
| Retained earnings | 10,702 | 10,041 |
| Treasury stock, at cost – 165 and 172 shares | (5,015) | (5,251) |
| Company shareholders' equity | 8,549 | 7,725 |
| Noncontrolling interest in consolidated subsidiaries | 27 | 19 |
| Total shareholders' equity | 8,576 | 7,744 |
| Total liabilities and shareholders' equity | $16,337 | $14,385 |
1_Parenthetical Data to the Con
| Parenthetical Data to the Condensed Consolidated Balance Sheet (USD $) | ||
| In Millions, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
| Current assets | ||
| Allowance for bad debts | $89 | $60 |
| Accumulated depreciation | $5,067 | $4,566 |
| Shareholders' equity | ||
| Par value | 2.5 | 2.5 |
| Authorized shares | 2,000 | 2,000 |
| Issued shares | 1,067 | 1,067 |
| Treasury shares | 165 | 172 |
2_Condensed Consolidated Statem
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Cash flows from operating activities | ||
| Net income | $911 | $1,772 |
| Payments of Department of Justice and Securities and Exchange Commission settlement and indemnity | (369) | 0 |
| Accounts payable | (111) | 204 |
| Provision for deferred income taxes, continuing operations | 164 | 268 |
| Receivables | 737 | (628) |
| Other | (493) | (139) |
| Inventories | 114 | (365) |
| Depreciation, depletion, and amortization | 677 | 535 |
| Total cash flows from operating activities | 1,630 | 1,647 |
| Cash flows from investing activities | ||
| Sales (purchases) of investments in marketable securities | (1,518) | 388 |
| Capital expenditures | (1,390) | (1,305) |
| Acquisitions of assets, net of cash acquired | (37) | (408) |
| Other investing activities | 93 | 96 |
| Total cash flows from investing activities | (2,852) | (1,229) |
| Cash flows from financing activities | ||
| Proceeds from long-term borrowings, net of offering costs | 1,975 | 1,189 |
| Payments on long-term borrowings | (30) | (1,896) |
| Payments of dividends to shareholders | (243) | (239) |
| Payments to reacquire common stock | (12) | (504) |
| Other financing activities | 100 | 165 |
| Total cash flows from financing activities | 1,790 | (1,285) |
| Effect of exchange rate changes on cash | (17) | (7) |
| Increase (decrease) in cash and equivalents | 551 | (874) |
| Cash and equivalents at beginning of period | 1,124 | 1,847 |
| Cash and equivalents at end of period | 1,675 | 973 |
| Supplemental disclosure of cash flow information | ||
| Interest from continuing operations | 226 | 117 |
| Income taxes from continuing operations | $437 | $738 |
Basis of Presentation
| Basis of Presentation | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 1. Basis of Presentation | Note 1. Basis of PresentationThe 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 September 30, 2009, the results of our operations for the three and nine months ended September 30, 2009 and 2008, and our cash flows for the nine months ended September 30, 2009 and 2008. Such adjustments are of a normal recurring nature. The results of operations for the three and nine months ended September 30, 2009 may not be indicative of results for the full year.We have evaluated subsequent events through October 23, 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 nine months of 2009, we adopted the provisions of new accounting standards. See Notes 3 and 11 for further information. All prior periods presented have been restated to reflect these changes. |
KBR Separation
| KBR Separation | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 2. KBR Separation | Note 2. KBR SeparationDuring 2007, we completed the separation of KBR, Inc. (KBR) from us by exchanging KBR common stock owned by us for our common stock. In addition, we recorded a liability reflecting the estimated fair value of the indemnities and guarantees provided to KBR as described below. Since the separation, we have recorded adjustments to our liability for indemnities and guarantees to reflect changes to our estimation of our remaining obligation. All such adjustments are recorded 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 and a tax sharing agreement. The master separation agreement provides for, among other things, KBR's responsibility for liabilities related to its business and our responsibility for liabilities unrelated to KBR's business. We provide indemnification in favor of KBR under the master separation agreement for certain contingent liabilities, including our indemnification of KBR and any of its greater than 50%-owned subsidiaries as of November 20, 2006, the date of the master separation agreement, for:-fines or other monetary penalties or direct monetary damages, including disgorgement, as a result of a claim made or assessed by a governmental authority in the United States, the United Kingdom, France, Nigeria, Switzerland, and/or Algeria, or a settlement thereof, related to alleged or actual violations occurring prior to November 20, 2006 of the United States Foreign Corrupt Practices Act (FCPA) or particular, analogous applicable foreign statutes, laws, rules, and regulations in connection with investigations pending as of that date, including with respect to the construction and subsequent expansion by a consortium of engineering firms comprised of Technip SA of France, Snamprogetti Netherlands B.V., JGC Corporation of Japan, and Kellogg Brown & Root LLC (TSKJ) of a natural gas liquefaction complex and related facilities at Bonny Island in Rivers State, Nigeria; and -all out-of-pocket cash costs and expenses, or cash settlements or cash arbitration awards in lieu thereof, KBR may incur after the effective date of the master separation agreement as a result of the replacement of the subsea flowline bolts installed in connection with the Barracuda-Caratinga project.Additionally, we provide indemnities, performance guarantees, surety bond guarantees, and letter of credit guarantees that are currently in place in favor of KBR's customers or lenders under project contracts, credit agreements, letters of credit, and other KBR credit instruments. These indemnities and guarantees will continue until they expire at the earlier of: (1) the termination of the underlying project contract or KBR obligations thereunder; (2) the expiration of the relevant credit support instrument in accordance with its terms or release of such instrument by the customer; or (3) the expiration of the credit agreements. Further, KBR and we have agreed that, until December 31, 2009, we will issue additional guarantees, indemnification, and reimbursement commitments for KBR's benefit in connection with: (a) let |
Business Segment and Geographic
| Business Segment and Geographic Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 3. Business Segment and Geographic Information | Note 3. Business Segment and Geographic InformationWe operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. In the first quarter of 2009, we moved a portion of our completion tools and services from the Completion and Production segment to the Drilling and Evaluation segment to re-establish our testing and subsea services offering, which resulted in a change to our operating segments. Testing and subsea services provide acquisition and analysis of dynamic reservoir information and reservoir optimization solutions to the oil and gas industry utilizing downhole test tools, data acquisition services using telemetry and electronic memory recording, fluid sampling, surface well testing, subsea safety systems, and reservoir engineering services. All periods presented reflect reclassifications related to the change in operating segments.The following table presents information on our business segments. "Corporate and other" includes expenses related to support functions and corporate executives. Also included are certain gains and losses not attributable to a particular business segment.Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for by the equity method are included in revenue and operating income of the applicable segment. Three Months EndedNine Months Ended September 30September 30Millions of dollars2009200820092008Revenue:Completion and Production$1,821$2,579$5,601$7,058 Drilling and Evaluation1,7672,2745,3886,311Total revenue$3,588$4,853$10,989$13,369Operating income:Completion and Production$240$633$846$1,674Drilling and Evaluation2834998711,412Total operations5231,1321,7173,086Corporate and other(49)(81)(151)(239)Total operating income$474$1,051$1,566$2,847Interest expense(80)(35)(215)(119)Interest income36835Other, net(4)(4)(23)(7)Income from continuing operations beforeincome taxes and noncontrolling interest$393$1,018$1,336$2,756 Receivables As of September 30, 2009, 23% of our gross trade receivables were from customers in the United States. As of December 31, 2008, 34% of our gross trade receivables were from customers in the United States. |
Inventories
| Inventories | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 4. Inventories | Note 4. InventoriesInventories 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 $72 million at September 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 September 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: September 30,December 31,Millions of dollars20092008Finished products and parts$1,137$1,312Raw materials and supplies550446Work in process2970Total$1,716$1,828 Finished products and parts are reported net of obsolescence reserves of $100 million at September 30, 2009 and $81 million at December 31, 2008. |
Debt
| Debt | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 5. Debt | Note 5. DebtSenior unsecured indebtednessIn 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 facilityIn 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. |
Shareholders' Equity
| Shareholders' Equity | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 6. Shareholders' Equity | Note 6. Shareholders' EquityThe following tables summarize our shareholders' equity activity. NoncontrollingTotalCompanyinterest inshareholders'shareholders'consolidatedMillions of dollarsequityequitysubsidiariesBalance at December 31, 2008$7,744$7,725$19Transactions with shareholders151152(1)Comprehensive income:Net income9119029Other comprehensive income1313-Total comprehensive income9249159Dividends paid on common stock(243)(243)-Balance at September 30, 2009$8,576$8,549$27 Noncontrolling TotalCompanyinterest in shareholders'shareholders'consolidatedMillions of dollarsequityequitysubsidiariesBalance at December 31, 2007$6,966$6,873$93Share repurchases(481)(481)-Other transactions with shareholders(534)(485)(49)Comprehensive income:Net income1,7721,75616Other comprehensive income33-Total comprehensive income1,7751,75916Dividends paid on common stock(239)(239)-Balance at September 30, 2008$7,487$7,427$60 The following table summarizes comprehensive income for the quarterly periods presented. Three Months Ended September 30 Millions of dollars20092008Net income$266$ 675Other comprehensive loss (4)(1)Total comprehensive income 262674Comprehensive income attributable to noncontrolling interest43Comprehensive income attributable to company$258$671 Accumulated other comprehensive loss consisted of the following: September 30,December 31,Millions of dollars20092008Defined benefit and other postretirement liability adjustments$(138)$(151)Cumulative translation adjustments(64)(60)Unrealized losses on investments-(4)Total accumulated other comprehensive loss$(202)$(215) |
Commitments and Contingencies
| Commitments and Contingencies | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 7. Commitments and Contingencies | Note 7. Commitments and ContingenciesForeign Corrupt Practices Act investigationsBackground. As a result of an ongoing FCPA investigation at the time of the KBR separation, we provided indemnification in favor of KBR under the master separation agreement for certain contingent liabilities, including our indemnification of KBR and any of its greater than 50%-owned subsidiaries as of November 20, 2006, the date of the master separation agreement, for fines or other monetary penalties or direct monetary damages, including disgorgement, as a result of a claim made or assessed by a governmental authority in the United States, the United Kingdom, France, Nigeria, Switzerland, and/or Algeria, or a settlement thereof, related to alleged or actual violations occurring prior to November 20, 2006 of the FCPA or particular, analogous applicable foreign statutes, laws, rules, and regulations in connection with investigations pending as of that date, including with respect to the construction and subsequent expansion by TSKJ of a multibillion dollar natural gas liquefaction complex and related facilities at Bonny Island in Rivers State, Nigeria.TSKJ is a private limited liability company registered in Madeira, Portugal whose members are Technip SA of France, Snamprogetti Netherlands B.V. (a subsidiary 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% beneficial interest in the venture. Part of KBR's ownership in TSKJ was held through M.W. Kellogg Limited (MWKL), a United Kingdom joint venture and subcontractor on the Bonny Island project, in which KBR beneficially owns a 55% interest. TSKJ and other similarly owned entities entered into various contracts to build and expand the liquefied natural gas project for Nigeria LNG Limited, which is owned by the Nigerian National Petroleum Corporation, Shell Gas B.V., Cleag Limited (an affiliate of Total), and Agip International B.V. (an affiliate of ENI SpA of Italy). DOJ and SEC investigations resolved. In February 2009, the FCPA investigations by the DOJ and the SEC were resolved with respect to KBR and us. The DOJ and SEC investigations resulted from allegations of improper payments to government officials in Nigeria in connection with the construction and subsequent expansion by TSKJ of the Bonny Island project.The DOJ investigation was resolved with respect to us with a non-prosecution agreement 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 which we agreed to continue to cooperate with the DOJ's ongoing investigation and to refrain from and self-report certain FCPA violations. The DOJ agreement did not provide a monitor for us.As part of the resolution of the SEC investigation, we retained an independent consultant to conduct a 60-day review and evaluation of our internal controls and record-keeping policies as they relate to the FCPA, and we agreed to adopt any necessary anti-bribery and foreign agent internal controls and record-keeping procedures recommended by the independent consultant. The review and evaluation were c |
Income per Share
| Income per Share | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 8. Income per Share | Note 8. Income per ShareBasic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued.A reconciliation of the number of shares used for the basic and diluted income per share calculations is as follows: Three Months EndedNine Months Ended September 30September 30Millions of shares2009200820092008Basic weighted average common shares outstanding902882899879Dilutive effect of:Convertible senior notes premium-22-30Stock options2424Diluted weighted average common shares outstanding904908901913 Excluded from the computation of diluted income per share are options to purchase six million and eight million shares of common stock that were outstanding during the three and nine months ended September 30, 2009 and two million shares during both the three and nine months ended September 30, 2008. These options were outstanding during these periods but were excluded because they were antidilutive, as the option exercise price was greater than the average market price of the common shares. |
Retirement Plans
| Retirement Plans | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 10. Retirement Plans | Note 10. Retirement PlansThe components of net periodic benefit cost related to pension benefits for the three and nine months ended September 30, 2009 and September 30, 2008 were as follows: Three Months Ended September 30 20092008 Millions of dollarsUnited StatesInternationalUnited StatesInternationalService cost$-$6$-$7Interest cost110213Expected return on plan assets(1)(8)(2)(11)Settlements/curtailments---(6)Recognized actuarial loss-111Net periodic benefit cost$-$9$1$4 Nine Months Ended September 30 20092008 Millions of dollarsUnited StatesInternationalUnited StatesInternationalService cost$-$19$-$20Interest cost431539Expected return on plan assets(5)(25)(6)(34)Settlements/curtailments11-(6)Recognized actuarial loss1334Net periodic benefit cost$1$29$2$23 During the nine months ended September 30, 2009, we contributed $77 million to our international pension plans, including a discretionary contribution of $66 million to our United Kingdom pension plans in the third quarter of 2009. We currently expect to contribute an additional $14 million to our international pension plans in 2009. We made discretionary contributions of approximately $13 million to our United States pension plans during the first nine months ended 2009 and do not expect to make further contributions to these plans in 2009. Effective June 30, 2009, we amended our United Kingdom pension plan to cease benefit accruals related to service thereafter, resulting in a $32 million decrease in the projected benefit obligation and a $24 million decrease, net of tax, in accumulated other comprehensive loss. |
New Accounting Standards
| New Accounting Standards | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 11. New Accounting Standards | Note 11. New Accounting StandardsAccounting standards recently adoptedOn June 30, 2009, in our condensed consolidated financial statements, we adopted the provisions of a new accounting standard relating to subsequent events, which establishes general standards of accounting for and disclosures of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events. On June 30, 2009, we adopted an update to accounting standards for disclosures about the fair value of financial instruments, which requires publicly-traded companies to provide disclosures on the fair value of financial instruments in interim financial statements.On January 1, 2009, we adopted the provisions of a new accounting standard, which establishes new accounting, reporting, and disclosure standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the recognition of a noncontrolling interest as equity in the condensed consolidated financial statements and separate from the parent's equity. Noncontrolling interest has been presented as a separate component of shareholders' equity for the current reporting period and prior comparative period in our condensed consolidated financial statements.On January 1, 2009, we adopted an update to existing accounting standards for business combinations. The update, which retains the underlying concepts of the original standard in that all business combinations are still required to be accounted for at fair value under the acquisition method of accounting, changes the method of applying the acquisition method in a number of ways. Acquisition costs are no longer considered part of the fair value of an acquisition and will generally be expensed as incurred, noncontrolling interests are valued at fair value at the acquisition date, in-process research and development is recorded at fair value as an indefinite-lived intangible asset at the acquisition date, restructuring costs associated with a business combination are generally expensed subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. In April 2009, the Financial Accounting Standards Board (FASB) issued a further update in relation to accounting for assets acquired and liabilities assumed in a business combination that arise from contingencies, which amends the previous guidance to require contingent assets acquired and liabilities assumed in a business combination to be recognized at fair value on the acquisition date if fair value can be reasonably estimated during the measurement period. If fair value cannot be reasonably estimated during the measurement period, the contingent asset or liability would be recognized in accordance with standards and guidance on accounting for contingencies and reasonable estimation of the amount of a loss. Further, this update eliminated the specific subsequent accounting guidance for contingent assets and |
Fair Value of Financial Instrum
| Fair Value of Financial Instruments Disclosure | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Note 9. Fair Value of Financial Instruments | Note 9. Fair Value of Financial InstrumentsDuring the second quarter of 2009, we purchased $1.5 billion in United States Treasury securities with maturities that extend through September 2010. These securities are accounted for as available-for-sale and recorded at fair value in "Investments in marketable securities" on the condensed consolidated balance sheet at September 30, 2009.The fair value of $426 million and $412 million of our long-term debt at September 30, 2009 and December 31, 2008 was calculated based on the fair value of other actively-traded, Halliburton debt. The carrying amount of cash and equivalents, receivables, short-term notes payable, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair market value due to the short maturities of these instruments. The following table presents the fair values of our other financial assets and liabilities and the basis for determining their fair values: Quoted prices in activeSignificant markets forobservable inputsCarryingidentical assetsfor similar assets orMillions of dollarsValueFair valueor liabilitiesliabilities September 30, 2009Marketable securities$1,515$1,515$1,515$-Long-term debt4,5735,3044,878426December 31, 2008Long-term debt$2,612$2,826$2,414$412 |
Document Information
| Document Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-09-30 |
Entity Information
| Entity Information (USD $) | |||
| 9 Months Ended
Sep. 30, 2009 | Oct. 16, 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 | 901,928,366 |