# Halliburton Co: Form 10-K for the period ended Dec 31, 2009 - Company: [Halliburton Co](/companies/hal.md) (CIK 45012) - Form: 10-K - Filed: 2010-02-17 - Accepted by EDGAR: Feb 17, 2010, 18:01 ET - Period: 2009-12-31 - Accession: 0000045012-10-000085 - Inline XBRL: yes - Main document: https://www.sec.gov/Archives/edgar/data/45012/000004501210000085/ed10k2009_final.htm - All documents and exhibits: https://www.sec.gov/Archives/edgar/data/45012/000004501210000085/ ## Figures reported in this filing Standardized XBRL line items for the period ended 2009-12-31. | Line item | Period | Value | XBRL concept | | --- | --- | ---: | --- | | Revenue | 12 months, 2009-01-01 to 2009-12-31 | $14.68bn | us-gaap:Revenues | | Cost of revenue | 12 months, 2009-01-01 to 2009-12-31 | $3.25bn | us-gaap:CostOfGoodsSold | | Operating income | 12 months, 2009-01-01 to 2009-12-31 | $1.99bn | us-gaap:OperatingIncomeLoss | | Interest expense | 12 months, 2009-01-01 to 2009-12-31 | −$297.0m | us-gaap:InterestExpense | | Net income | 12 months, 2009-01-01 to 2009-12-31 | $1.15bn | us-gaap:NetIncomeLoss | | Diluted EPS | 12 months, 2009-01-01 to 2009-12-31 | $1.27 | us-gaap:EarningsPerShareDiluted | | Basic EPS | 12 months, 2009-01-01 to 2009-12-31 | $1.27 | us-gaap:EarningsPerShareBasic | | Diluted shares (weighted) | 12 months, 2009-01-01 to 2009-12-31 | 902,000,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding | | Operating cash flow | 12 months, 2009-01-01 to 2009-12-31 | $2.41bn | us-gaap:NetCashProvidedByUsedInOperatingActivities | | Capital expenditure | 12 months, 2009-01-01 to 2009-12-31 | $1.86bn | us-gaap:PaymentsToAcquireProductiveAssets | | Share repurchases | 12 months, 2009-01-01 to 2009-12-31 | $17.0m | us-gaap:PaymentsForRepurchaseOfCommonStock | | Cash and equivalents | at 2009-12-31 | $2.08bn | us-gaap:CashAndCashEquivalentsAtCarryingValue | | Current assets | at 2009-12-31 | $8.64bn | us-gaap:AssetsCurrent | | Total assets | at 2009-12-31 | $16.54bn | us-gaap:Assets | | Current liabilities | at 2009-12-31 | $2.89bn | us-gaap:LiabilitiesCurrent | | Total liabilities | at 2009-12-31 | $7.78bn | us-gaap:Liabilities | | Current portion of debt | at 2009-12-31 | $750.0m | us-gaap:LongTermDebtCurrent | | Shareholders' equity | at 2009-12-31 | $8.73bn | us-gaap:StockholdersEquity | ## Business As filed, 13,614 characters. ### General description of business Halliburton Company’s predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. We provide a variety of services and products to customers in the energy industry related to the exploration, development, and production of oil and natural gas. We serve major, national, and independent oil and natural gas companies throughout the world and 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. See Note 2 to the consolidated financial statements for further financial information related to each of our business segments and a description of the services and products provided by each segment. ### Business strategy Our business strategy is to secure a distinct and sustainable competitive position as an oilfield service company by delivering products and services to our customers that maximize their production and recovery and realize proven reserves from difficult environments. Our objectives are to: - create a balanced portfolio of products and services supported by global infrastructure and anchored by technology innovation with a well-integrated digital strategy to further differentiate our company; - reach a distinguished level of operational excellence that reduces costs and creates real value from everything we do; - preserve a dynamic workforce by being a preferred employer to attract, develop, and retain the best global talent; and - uphold the ethical and business standards of the company and maintain the highest standards of health, safety, and environmental performance. ### Markets and competition We are one of the world’s largest diversified energy services companies. Our services and products are sold in highly competitive markets throughout the world. Competitive factors impacting sales of our services and products include: - price; - service delivery (including the ability to deliver services and products on an “as needed, where needed” basis); - health, safety, and environmental standards and practices; - service quality; - global talent retention; - understanding of the geological characteristics of the hydrocarbon reservoir; - product quality; - warranty; and - technical proficiency. We conduct business worldwide in approximately 70 countries. The business operations of our divisions are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. In 2009, based on the location of services provided and products sold, 36% of our consolidated revenue was from the United States. In 2008 and 2007, 43% and 44% of our consolidated revenue was from the United States. No other country accounted for more than 10% of our consolidated revenue during these periods. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations” and Note 2 to the consolidated financial statements for additional financial information about geographic operations in the last three years. Because the markets for our services and products are vast and cross numerous geographic lines, a meaningful estimate of the total number of competitors cannot be made. The industries we serve are highly competitive, and we have many substantial competitors. Largely, all of our services and products are marketed through our servicing and sales organizations. Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, expropriation or other governmental actions, exchange control problems, and highly inflationary currencies. We believe the geographic diversification of our business activities reduces the risk that loss of operations in any one country would be material to the conduct of our operations taken as a whole. Information regarding our exposure to foreign currency fluctuations, risk concentration, and financial instruments used to minimize risk is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and in Note 12 to the consolidated financial statements. ### Customers Our revenue from continuing operations during the past three years was derived from the sale of services and products to the energy industry. No customer represented more than 10% of consolidated revenue in any period presented. ### Raw materials Raw materials essential to our business are normally readily available. Market conditions can trigger constraints in the supply of certain raw materials, such as sand, cement, and specialty metals. We are always seeking ways to ensure the availability of resources, as well as manage costs of raw materials. Our procurement department is using our size and buying power through several programs designed to ensure that we have access to key materials at competitive prices. ### Research and development costs We maintain an active research and development program. The program improves existing products and processes, develops new products and processes, and improves engineering standards and practices that serve the changing needs of our customers, such as those related to high pressure/high temperature environments. Our expenditures for research and development activities were $325 million in 2009, $326 million in 2008, and $301 million in 2007, of which over 96% was company-sponsored in each year. ### Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes. We are also licensed to utilize patents owned by others. We do not consider any particular patent to be material to our business operations. ### Seasonality Weather and natural phenomena can temporarily affect the performance of our services, but the widespread geographical locations of our operations serve to mitigate those effects. Examples of how weather can impact our business include: - the severity and duration of the winter in North America can have a significant impact on natural gas storage levels and drilling activity for natural gas; - the timing and duration of the spring thaw in Canada directly affects activity levels due to road restrictions; - typhoons and hurricanes can disrupt coastal and offshore operations; and - severe weather during the winter months normally results in reduced activity levels in the North Sea and Russia. In addition, due to higher spending near the end of the year by customers for software and completion tools and services, software and asset solutions and completion tools results of operations are generally stronger in the fourth quarter of the year than at the beginning of the year. ### Employees At December 31, 2009, we employed approximately 51,000 people worldwide compared to approximately 57,000 at December 31, 2008. At December 31, 2009, approximately 20% of our employees were subject to collective bargaining agreements. Based upon the geographic diversification of these employees, we believe any risk of loss from employee strikes or other collective actions would not be material to the conduct of our operations taken as a whole. ### Environmental regulation We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For further information related to environmental matters and regulation, see Note 8 to the consolidated financial statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Factors” under the subheadings “Customers and Business—Environmental requirements.” ### Working capital We fund our business operations through a combination of available cash and equivalents, short-term investments, and cash flow generated from operations. In addition, our revolving credit facility is available for additional working capital needs. ### Web site access Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act of 1934 are made available free of charge on our internet web site at www.halliburton.com as soon as reasonably practicable after we have electronically filed the material with, or furnished it to, the Securities and Exchange Commission (SEC). The public may read and copy any materials we have filed with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet site that contains our reports, proxy and information statements, and our other SEC filings. The address of that site is www.sec.gov. We have posted on our web site our Code of Business Conduct, which applies to all of our employees and Directors and serves as a code of ethics for our principal executive officer, principal financial officer, principal accounting officer, and other persons performing similar functions. Any amendments to our Code of Business Conduct or any waivers from provisions of our Code of Business Conduct granted to the specified officers above are disclosed on our web site within four business days after the date of any amendment or waiver pertaining to these officers. There have been no waivers from provisions of our Code of Business Conduct for the years 2009, 2008, or 2007. ### Executive Officers of the Registrant The following table indicates the names and ages of the executive officers of Halliburton Company as of February 12, 2010, including all offices and positions held by each in the past five years: | | | | --- | --- | | Name and Age | Offices Held and Term of Office | | Evelyn M. Angelle | Vice President, Corporate Controller, and Principal Accounting Officer of | | (Age 42) | Halliburton Company, since January 2008 | | | Vice President, Operations Finance of Halliburton Company, | | | December 2007 to January 2008 | | | Vice President, Investor Relations of Halliburton Company, | | | April 2005 to November 2007 | | | Assistant Controller of Halliburton Company, April 2003 to March 2005 | | James S. Brown | President, Western Hemisphere of Halliburton Company, since January 2008 | | (Age 55) | Senior Vice President, Western Hemisphere of Halliburton Company, | | | June 2006 to December 2007 | | | Senior Vice President, United States Region of Halliburton Company, | | | December 2003 to June 2006 | | \* Albert O. Cornelison, Jr. | Executive Vice President and General Counsel of Halliburton Company, | | (Age 60) | since December 2002 | | David S. King | President, Completion and Production Division of Halliburton Company, | | (Age 53) | since January 2008 | | | Senior Vice President, Completion and Production Division of Halliburton | | | Company, July 2007 to December 2007 | | | Senior Vice President, Production Optimization of Halliburton Company, | | | January 2007 to July 2007 | | | Senior Vice President, Eastern Hemisphere of Halliburton Energy Services | | | Group, July 2006 to December 2006 | | | Senior Vice President, Global Operations of Halliburton Energy Services | | | Group, July 2004 to July 2006 | | \* David J. Lesar | Chairman of the Board, President, and Chief Executive Officer of Halliburton | | (Age 56) | Company, since August 2000 | 4 #### Name and Age Offices Held and Term of Office Ahmed H. M. Lotfy President, Eastern Hemisphere of Halliburton Company, since January 2008 (Age 55) Senior Vice President, Eastern Hemisphere of Halliburton Company, January 2007 to December 2007 Vice President, Africa Region of Halliburton Company, January 2005 to December 2006 \* Mark A. McCollum Executive Vice President and Chief Financial Officer of Halliburton Company, (Age 50) since January 2008 Senior Vice President and Chief Accounting Officer of Halliburton Company, August 2003 to December 2007 Craig W. Nunez Senior Vice President and Treasurer of Halliburton Company, (Age 48) since January 2007 Vice President and Treasurer of Halliburton Company, February 2006 to January 2007 Treasurer of Colonial Pipeline Company, November 1999 to January 2006 \* Lawrence J. Pope Executive Vice President of Administration and Chief Human Resources Officer (Age 41) of Halliburton Company, since January 2008 Vice President, Human Resources and Administration of Halliburton Company, January 2006 to December 2007 Senior Vice President, Administration of Kellogg Brown & Root, Inc., August 2004 to January 2006 \* Timothy J. Probert President, Global Business Lines and Corporate Development of (Age 58) Halliburton Company, since January 2010 President, Drilling and Evaluation Division and Corporate Development of Halliburton Company, March 2009 to December 2009 Executive Vice President, Strategy and Corporate Development of Halliburton Company, January 2008 to March 2009 Senior Vice President, Drilling and Evaluation of Halliburton Company, July 2007 to December 2007 Senior Vice President, Drilling and Evaluation and Digital Solutions of Halliburton Company, May 2006 to July 2007 Vice President, Drilling and Formation Evaluation of Halliburton Company, January 2003 to May 2006 \* Members of the Policy Committee of the registrant. There are no family relationships between the executive officers of the registrant or between any director and any executive officer of the registrant. ## Properties As filed, 1,743 characters. We own or lease numerous properties in domestic and foreign locations. The following locations represent our major facilities and corporate offices. | | | | | --- | --- | --- | | Location | Owned/Leased | Description | | Completion and Production segment: | | | | Arbroath, United Kingdom | Owned | Manufacturing facility | | Johor, Malaysia | Leased | Manufacturing facility | | Monterrey, Mexico | Leased | Manufacturing facility | | Sao Jose dos Campos, Brazil | Leased | Manufacturing facility | | Stavanger, Norway | Leased | Research and development laboratory | | Drilling and Evaluation segment: | | | | Alvarado, Texas | Owned/Leased | Manufacturing facility | | Nisku, Canada | Owned | Manufacturing facility | | Singapore | Leased | Manufacturing and technology facility | | The Woodlands, Texas | Leased | Manufacturing facility | | Shared/corporate facilities: | | | | Carrollton, Texas | Owned | Manufacturing facility | | Dubai, United Arab Emirates | Leased | Corporate executive offices | | Duncan, Oklahoma | Owned | Manufacturing, technology, and campus facilities | | Houston, Texas | Owned | Corporate executive offices, manufacturing, | | | | technology, and campus facilities | | Houston, Texas | Owned | Campus facility | | Houston, Texas | Leased | Campus facility | | Pune, India | Leased | Technology facility | All of our owned properties are unencumbered. In addition, we have 133 international and 103 United States field camps from which we deliver our services and products. We also have numerous small facilities that include sales offices, project offices, and bulk storage facilities throughout the world. We believe all properties that we currently occupy are suitable for their intended use. ## Legal proceedings As filed, 265 characters. Information related to various commitments and contingencies is described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Forward-Looking Information and Risk Factors” and in Note 8 to the consolidated financial statements. ## Management's discussion and analysis As filed, 206 characters. Information related to market risk is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” on page 33 of this annual report. Filed Feb 17, 2010. Source: SEC EDGAR, the filing index for accession 0000045012-10-000085. Last ingested by Listed: Nov 2, 2026, 13:24 ET. No prices; not investment advice.