Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Revenue | ||
Services | $2,845 | $2,950 |
Product sales | 916 | 957 |
Total revenue | 3,761 | 3,907 |
Operating costs and expenses | ||
Cost of services | 2,473 | 2,411 |
Cost of sales | 786 | 828 |
General and administrative | 58 | 52 |
Gain on sale of assets, net | (5) | 0 |
Total operating costs and expenses | 3,312 | 3,291 |
Operating income | 449 | 616 |
Interest expense | (79) | (53) |
Interest income | 3 | 2 |
Other, net | (40) | (5) |
Income from continuing operations before income taxes | 333 | 560 |
Provision for income taxes | (121) | (179) |
Income from continuing operations | 212 | 381 |
Loss from discontinued operations, net of income tax benefit of $3 and $0 | (5) | (1) |
Net income | 207 | 380 |
Noncontrolling interest in net income of subsidiaries | (1) | (2) |
Net income attributable to company | 206 | 378 |
Amounts attributable to company shareholders | ||
Income from continuing operations | 211 | 379 |
Loss from discontinued operations, net | (5) | (1) |
Net income attributable to company | $206 | $378 |
Basic income per share attributable to company shareholders | ||
Income from continuing operations | 0.23 | 0.42 |
Loss from discontinued operations, net | $0 | $0 |
Net income per share | 0.23 | 0.42 |
Diluted income per share attributable to company shareholders | ||
Income from continuing operations | 0.23 | 0.42 |
Loss from discontinued operations, net | $0 | $0 |
Net income per share | 0.23 | 0.42 |
Cash dividends per share | 0.09 | 0.09 |
Basic weighted average common shares outstanding | 905 | 897 |
Diluted weighted average common shares outstanding | 908 | 899 |
Parenthetical Data to the Conde
Parenthetical Data to the Condensed Consolidated Statements of Operations (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Income Statement [Abstract] | ||
Loss from discontinued operations, income tax benefit | $3 | $0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (USD $) | ||
In Millions | Mar. 31, 2010
| Dec. 31, 2009
|
Current assets | ||
Cash and equivalents | $1,383 | $2,082 |
Receivables (less allowance for bad debts of $88 and $90) | 3,176 | 2,964 |
Inventories | 1,658 | 1,598 |
Investments in marketable securities | 1,808 | 1,312 |
Current deferred income taxes | 248 | 210 |
Other current assets | 541 | 472 |
Total current assets | 8,814 | 8,638 |
Property, plant, and equipment, net of accumulated depreciation of $5,406 and $5,230 | 5,980 | 5,759 |
Goodwill | 1,138 | 1,100 |
Other assets | 1,048 | 1,041 |
Total assets | 16,980 | 16,538 |
Current liabilities | ||
Accounts payable | 964 | 787 |
Current maturities of long-term debt | 750 | 750 |
Accrued employee compensation and benefits | 520 | 514 |
Deferred revenue | 282 | 215 |
Department of Justice and Securities and Exchange Commission settlement and indemnity | 95 | 142 |
Other current liabilities | 534 | 481 |
Total current liabilities | 3,145 | 2,889 |
Long-term debt | 3,824 | 3,824 |
Employee compensation and benefits | 425 | 462 |
Other liabilities | 626 | 606 |
Total liabilities | 8,020 | 7,781 |
Shareholders' equity | ||
Common shares, par value $2.50 per share - authorized 2,000 shares, issued 1,068 and 1,067 shares | 2,669 | 2,669 |
Paid-in capital in excess of par value | 395 | 411 |
Accumulated other comprehensive loss | (206) | (213) |
Retained earnings | 10,988 | 10,863 |
Treasury stock, at cost - 162 and 165 shares | (4,915) | (5,002) |
Company shareholders' equity | 8,931 | 8,728 |
Noncontrolling interest in consolidated subsidiaries | 29 | 29 |
Total shareholders' equity | 8,960 | 8,757 |
Total liabilities and shareholders' equity | $16,980 | $16,538 |
1_Parenthetical Data to the Con
Parenthetical Data to the Condensed Consolidated Balance Sheet (USD $) | ||
In Millions, except Per Share data | Mar. 31, 2010
| Dec. 31, 2009
|
Current assets | ||
Allowance for bad debts | $88 | $90 |
Accumulated depreciation | $5,406 | $5,230 |
Shareholders' equity | ||
Par value | 2.5 | 2.5 |
Authorized shares | 2,000 | 2,000 |
Issued shares | 1,068 | 1,067 |
Treasury shares | 162 | 165 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Cash flows from operating activities | ||
Net income | $207 | $380 |
Depreciation, depletion, and amortization | 261 | 215 |
Payments of Department of Justice and Securities and Exchange Commission settlement and indemnity | (47) | (274) |
Receivables | (264) | 372 |
Accounts payable | 187 | (18) |
Inventories | (54) | (65) |
Other | 27 | (229) |
Total cash flows from operating activities | 317 | 381 |
Cash flows from investing activities | ||
Purchases of investments in marketable securities | (500) | 0 |
Capital expenditures | (404) | (518) |
Acquisitions of business assets, net of cash acquired | (113) | 0 |
Other investing activities | 47 | 53 |
Total cash flows from investing activities | (970) | (465) |
Cash flows from financing activities | ||
Proceeds from long-term borrowings, net of offering costs | 0 | 1,976 |
Payments of dividends to shareholders | (81) | (81) |
Other financing activities | 44 | 42 |
Total cash flows from financing activities | (37) | 1,937 |
Effect of exchange rate changes on cash | (9) | (10) |
Increase (decrease) in cash and equivalents | (699) | 1,843 |
Cash and equivalents at beginning of period | 2,082 | 1,124 |
Cash and equivalents at end of period | 1,383 | 2,967 |
Supplemental disclosure of cash flow information | ||
Cash payments during the period for interest | 133 | 66 |
Cash payments during the period for income taxes | $96 | $128 |
Basis of Presentation
Basis of Presentation | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 1. 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 2009 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 March 31, 2010 and the results of our operations and cash flows for the three months ended March 31, 2010 and 2009.Such adjustments are of a normal recurring nature.The results of operations for the three months ended March 31, 2010 may not be indicative of results for the full year. |
Business Segment and Geographic
Business Segment and Geographic Information | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 2. Business Segment and Geographic Information | Note 2.Business Segment and Geographic Information We 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. 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 Ended March 31 Millions of dollars 2010 2009 Revenue: Completion and Production $ 1,964 $ 2,028 Drilling and Evaluation 1,797 1,879 Total revenue $ 3,761 $ 3,907 Operating income: Completion and Production $ 238 $ 363 Drilling and Evaluation 270 304 Total operations 508 667 Corporate and other (59 ) (51 ) Total operating income $ 449 $ 616 Interest expense (79 ) (53 ) Interest income 3 2 Other, net (40 ) (5 ) Income from continuing operations before income taxes $ 333 $ 560 Receivables As of March 31, 2010, 29% of our gross trade receivables were from customers in the United States.As of December 31, 2009, 26% of our gross trade receivables were from customers in the United States. |
Inventories
Inventories | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 3. Inventories | Note 3.Inventories Inventories are stated at the lower of cost or market.In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method, which totaled $77 million at March 31, 2010 and $68 million at December 31, 2009.If the average cost method had been used, total inventories would have been $31 million higher than reported at March 31, 2010 and $33 million higher than reported at December 31, 2009.The cost of the remaining inventory was recorded on the average cost method.Inventories consisted of the following: March 31, December 31, Millions of dollars 2010 2009 Finished products and parts $ 1,128 $ 1,090 Raw materials and supplies 489 480 Work in process 41 28 Total $ 1,658 $ 1,598 Finished products and parts are reported net of obsolescence reserves of $102 million at March 31, 2010 and $94 million at December 31, 2009. |
Shareholders' Equity
Shareholders' Equity | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 4. Shareholders' Equity | Note 4.Shareholders Equity The following tables summarize our shareholders equity activity. Noncontrolling Total Company interest in shareholders shareholders consolidated Millions of dollars equity equity subsidiaries Balance at December 31, 2009 $ 8,757 $ 8,728 $ 29 Transactions with shareholders 70 71 (1 ) Comprehensive income: Net income 207 206 1 Other comprehensive income 7 7 Total comprehensive income 214 213 1 Dividends paid on common stock (81 ) (81 ) Balance at March 31, 2010 $ 8,960 $ 8,931 $ 29 Noncontrolling Total Company interest in shareholders shareholders consolidated Millions of dollars equity equity subsidiaries Balance at December 31, 2008 $ 7,744 $ 7,725 $ 19 Transactions with shareholders 61 61 Comprehensive income: Net income 380 378 2 Other comprehensive loss (9 ) (9 ) Total comprehensive income 371 369 2 Dividends paid on common stock (81 ) (81 ) Balance at March 31, 2009 $ 8,095 $ 8,074 $ 21 Accumulated other comprehensive loss consisted of the following: March 31, December 31, Millions of dollars 2010 2009 Defined benefit and other postretirement liability adjustments $ (142 ) $ (149 ) Cumulative translation adjustments (65 ) (65 ) Unrealized gains on investments 1 1 Total accumulated other comprehensive loss $ (206 ) $ (213 ) |
KBR Separation
KBR Separation | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 5. KBR Separation | Note 5.KBR Separation During 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, KBRs responsibility for liabilities related to its business and our responsibility for liabilities unrelated to KBRs 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 performance guarantees, surety bond guarantees, and letter of credit guarantees that are currently in place in favor of KBRs customers or lenders under project contracts, letters of credit, and other KBR credit instruments.These guarantees will continue until they expire at the earlier of:(1) the termination of the underlying project contract or KBR obligations thereunder; or (2) the expiration of the relevant credit support instrument in accordance with its terms or release of such instrument by the customer.KBR has agreed to indemnify us, other than for the FCPA and Barracuda-Caratinga bolts matter, if we are required to perform under any of the guarantees related to KBRs letters of credit, surety bonds, or performance guarantees described above. In February 2009, the |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 6. Commitments and Contingencies | Note 6.Commitments and Contingencies TSKJ matters Background.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.As a condition of our indemnity,we have control over the investigation, defense, and/or settlement of these matters.We have the right to terminate the indemnity in the event KBR elects to take control over the investigation, defense, and/or settlement or refuses to agree to a settlement negotiated and presented by us. 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 KBRs 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 DOJs 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-d |
Income per Share
Income per Share | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 7. Income per Share | Note 7.Income per Share Basic 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 Ended March 31 Millions of shares 2010 2009 Basic weighted average common shares outstanding 905 897 Dilutive effect of stock options 3 2 Diluted weighted average common shares outstanding 908 899 Excluded from the computation of diluted income per share are options to purchase six million shares of common stock that were outstanding during the three months ended March 31, 2010 and options to purchase nine million shares that were outstanding during the three months ended March 31, 2009.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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Disclosure | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 8. Fair Value of Financial Instruments | Note 8.Fair Value of Financial Instruments During the first quarter of 2010, we purchased $500 million of additional United States Treasury securities with maturities that extend through November 2010.These securities are accounted for as available-for-sale and recorded at fair value in Investments in marketable securities. 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 active Significant markets for observable inputs Carrying identical assets for similar assets or Millions of dollars Value Fair value or liabilities liabilities March 31, 2010 Marketable securities $ 1,808 $ 1,808 $ 1,808 $ Long-term debt 4,574 5,202 4,013 1,189 (a) December 31, 2009 Marketable securities $ 1,312 $ 1,312 $ 1,312 $ Long-term debt 4,574 5,301 4,874 427 (a) (a)Calculated based on the fair value of other actively-traded Halliburton debt. |
Retirement Plans
Retirement Plans | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 9. Retirement Plans | Note 9.Retirement Plans The components of net periodic benefit cost related to pension benefits for the three months ended March 31, 2010 and March 31, 2009 were as follows: Three Months Ended March 31 2010 2009 Millions of dollars United States International United States International Service cost $ $ 5 $ $ 6 Interest cost 1 12 2 10 Expected return on plan assets (2) (11) (2) (8) Recognized actuarial loss 1 1 1 Net periodic benefit cost $ $ 7 $ $ 9 |
New Accounting Standards
New Accounting Standards | |
3 Months Ended
Mar. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Note 10. Accounting Standards Recently Adopted | Note 10.Accounting Standards Recently Adopted On January 1, 2010, we adopted the provisions of a new accounting standard which provides amendments to previous guidance on the consolidation of variable interest entities. This standard clarifies the characteristics that identify a variable interest entity (VIE) and changes how a reporting entity identifies a primary beneficiary that would consolidate the VIE from a quantitative risk and rewards calculation to a qualitative approach based on which variable interest holder has controlling financial interest and the ability to direct the most significant activities that impact the VIEs economic performance.This standard requires the primary beneficiary assessment to be performed on a continuous basis.It also requires additional disclosures about an entitys involvement with a VIE, restrictions on the VIEs assets and liabilities that are included in the reporting entitys condensed consolidated balance sheet, significant risk exposures due to the entitys involvement with the VIE, and how its involvement with a VIE impacts the reporting entitys condensed consolidated financial statements. The standard is effective for fiscal years beginning after November 15, 2009.The adoption of this standard did not have a material impact on our condensed consolidated financial statements. |
Document Information
Document Information | |
3 Months Ended
Mar. 31, 2010 | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2010-03-31 |
Entity Information
Entity Information (USD $) | |||
3 Months Ended
Mar. 31, 2010 | Apr. 16, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
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 | $18,573,000,000 | ||
Entity Common Stock, Shares Outstanding | 905,275,293 | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | Q1 |