-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KZpdj5FPnuS9aMxO3Jqe0TaOuKMxnUo+HLf7JV8cs4QcnjzBXFnmqEkcWJWlETPZ il6rdYgG3rnJOQdb8zoEHw== 0000045012-09-000273.txt : 20090730 0000045012-09-000273.hdr.sgml : 20090730 20090730111755 ACCESSION NUMBER: 0000045012-09-000273 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 27 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090730 DATE AS OF CHANGE: 20090730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HALLIBURTON CO CENTRAL INDEX KEY: 0000045012 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 752677995 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-03492 FILM NUMBER: 09972519 BUSINESS ADDRESS: STREET 1: 1401MCKINNEY STREET 2: 1401 MCKINNEY CITY: HOUSTON STATE: TX ZIP: 77010 BUSINESS PHONE: 7137592600 MAIL ADDRESS: STREET 1: 1401 MCKINNEY STREET 2: 1401 MCKINNEY CITY: HOUSTON STATE: TX ZIP: 77010 FORMER COMPANY: FORMER CONFORMED NAME: HALLIBURTON OIL WELL CEMENTING CO DATE OF NAME CHANGE: 19660911 10-Q/A 1 edjune200910qa_final.htm FORM 10Q/A AMENDMENT NO. 1_6-30-2009 edjune200910qa_final.htm
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q/A
Amendment No. 1

[X]   Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2009

OR

[   ]   Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _____ to _____

Commission File Number 001-03492

HALLIBURTON COMPANY

(a Delaware corporation)
75-2677995

5 Houston Center
1401 McKinney, Suite 2400
Houston, Texas  77010
(Address of Principal Executive Offices)
Telephone Number – Area Code (713) 759-2600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes      X       No           

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes     X        No           
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 
Large accelerated filer
Non-accelerated filer
[X]
[   ]
Accelerated filer
Smaller reporting company
[   ]
[   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes              No     X     

As of July 17, 2009, 901,714,840 shares of Halliburton Company common stock, $2.50 par value per share, were outstanding.

 
 

 

Explanatory Note

The purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2009, as filed with the Securities and Exchange Commission on July 24, 2009, is to furnish Exhibit 101 to the Form 10-Q as required by Rule 405 of Regulation S-T.  Exhibit 101 to this report provides the following items from our Form 10-Q formatted in Extensible Business Reporting Language (XBRL):  (i) the unaudited Condensed Consolidated Statements of Operations, (ii) the unaudited Condensed Consolidated Balance Sheets, (iii) the unaudited Condensed Consolidated Statements of Cash Flows, and (iv) the notes to the unaudited condensed consolidated financial statements, tagged as blocks of text.
Users of this data are advised that pursuant to Rule 406T of Regulation S-T these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.  No other changes have been made to the Form 10-Q other than those described above.  This Amendment No. 1 does not reflect subsequent events occurring after the original filing date of the Form 10-Q or modify or update in any way disclosures made in the Form 10-Q.

 
 

 

Item 6.  Exhibits

    10.1
Halliburton Company Stock and Incentive Plan, as amended and restated effective
 
February 11, 2009 (incorporated by reference to Appendix B of Halliburton’s proxy
 
statement filed April 6, 2009, File No. 1-3492).
   
    10.2
Halliburton Company Employee Stock Purchase Plan, as amended and restated effective
 
February 11, 2009 (incorporated by reference to Appendix C of Halliburton’s proxy
 
statement filed April 6, 2009, File No. 1-3492).
   
    10.3
Form of Nonstatutory Stock Option Agreement (incorporated by reference to Exhibit 99.2
 
of Halliburton’s Form S-8 filed May 21, 2009, Registration No. 333-159394).
   
    10.4
Form of Restricted Stock Agreement (incorporated by reference to Exhibit 99.3 of
 
Halliburton’s Form S-8 filed May 21, 2009, Registration No. 333-159394).
   
    10.5
Form of Restricted Stock Unit Agreement (incorporated by reference to Exhibit 99.4 of
 
Halliburton’s Form S-8 filed May 21, 2009, Registration No. 333-159394).
   
    10.6
Form of Non-Employee Director Restricted Stock Agreement (incorporated by reference
 
to Exhibit 99.5 of Halliburton’s Form S-8 filed May 21, 2009, Registration No. 333-
 
159394).
   
    *           12.1
Computation of Ratio of Earnings to Fixed Charges
   
    *           31.1
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
 
of 2002.
   
    *           31.2
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
 
of 2002.
   
    **         32.1
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act
 
of 2002.
   
    **         32.2
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act
 
of 2002.
   
    ***101.INS
XBRL Instance Document
   
    ***101.SCH
XBRL Taxonomy Extension Schema Document
   
    ***101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
   
    ***101.LAB
XBRL Taxonomy Extension Label Linkbase Document
   
    ***101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
   
  *
Filed with our Form 10-Q as filed on July 24, 2009
  **
Furnished with our Form 10-Q as filed on July 24, 2009
  ***
Furnished with this Form 10-Q/A

 
 

 

SIGNATURES


As required by the Securities Exchange Act of 1934, the registrant has authorized this report to be signed on behalf of the registrant by the undersigned authorized individuals.

HALLIBURTON COMPANY



/s/  Mark A. McCollum
/s/  Evelyn M. Angelle
Mark A. McCollum
Evelyn M. Angelle
Executive Vice President and
Vice President, Corporate Controller, and
Chief Financial Officer
Principal Accounting Officer


Date:  July 30, 2009


 
 

 

EX-101.INS 2 hal-20090630.xml XBRL INSTANCE DOCUMENT 0000045012 2009-06-30 0000045012 2008-06-30 0000045012 2008-01-01 2008-06-30 0000045012 2008-12-31 0000045012 2009-01-01 2009-06-30 0000045012 2007-12-31 0000045012 2009-04-01 2009-06-30 0000045012 2008-04-01 2008-06-30 0000045012 2009-07-17 iso4217:USD xbrli:shares iso4217:USD xbrli:shares 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. 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 dollars 2009 2008 Finished products and parts $ 1,227 $ 1,312Raw materials and supplies 568 446Work in process 37 70Total $ 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. No 91000000 72000000 444000000 33000000 521000000 539000000 900000000 918000000 899000000 916000000 0 -0.13 0 -0.13 3018000000 3538000000 6309000000 6720000000 false 1975000000 0 5357000000 4782000000 0.29 0.55 0.71 1.18 -117000000 -288000000 -296000000 -526000000 807000000 1012000000 1635000000 1885000000 Yes 11000000 381000000 -2000000 -277000000 753000000 0 46371000000 10-Q 2000000000 2000000000 1568000000 1124000000 1880000000 1847000000 898000000 875000000 898000000 877000000 Yes 0000045012 1860000000 -415000000 179000000 246000000 -1000000 -116000000 -2000000 -115000000 3000000 6000000 5000000 13000000 --12-31 Halliburton Company 439000000 342000000 8301000000 7725000000 7891000000 6641000000 226000000 231000000 755000000 898000000 0.09 0.09 0.18 0.18 -14000000 -2000000 -19000000 -3000000 476000000 949000000 1092000000 1796000000 48000000 71000000 100000000 143000000 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 enhancement of our anti-bribery and foreign agentinternal controls and record-keeping procedures prior to the review of theindependent consultant, we do not expect the implementation of the consultant'srecommendations to materially impact our long-term strategy to grow ourinternational operations. In 2010, the independent consultant will perform a30-day, follow-up review to confir m that we have implemented the recommendationsand continued the application of our current policies and procedures, and torecommend any additional improvements. KBR has agreed that our indemnification obligations with respect to the DOJ andSEC FCPA investigations have been fully satisfied. Other matters. In addition to the DOJ and the SEC investigations, we are awareof other investigations in France, Nigeria, the United Kingdom, and Switzerlandregarding the Bonny Island project. The settlements and the other ongoing investigations could result in third-partyclaims against us, which may include claims for special, indirect, derivative orconsequential damages, damage to our business or reputation, loss of, or adverseeffect on, cash flow, assets, goodwill, results of operations, businessprospects, profits or business value or claims by directors, officers,employees, affiliates, advisors, attorneys, agents, debt holders, or otherinterest holders or constituents of us or our current or former subsidiaries. Our indemnity of KBR continues with respect to other investigations within thescope of our indemnity. Our indemnification obligation to KBR does not includelosses resulting from third-party claims against KBR, including claims forspecial, indirect, derivative or consequential damages, nor does ourindemnification apply to damage to KBR's business or reputation, loss of, oradverse effect on, cash flow, assets, goodwill, results of operations, businessprospects, profits or business value or claims by directors, officers,employees, affiliates, advisors, attorneys, agents, debt holders, or otherinterest holders or constituents of KBR or KBR's current or former subsidiaries. At this time, no claims by governmental authorities in foreign jurisdictionshave been asserted against KBR. Therefore, we are unable to estimate themaximum potential amount of future payments that could be required to be madeunder our indemnity to KBR related to these matters. See Note 2 for additionalinformation. Barracuda-Caratinga arbitration We also provided indemnification in favor of KBR under the master separationagreement for all out-of-pocket cash costs and expenses (except for legal feesand other expenses of the arbitration so long as KBR controls and directs it),or cash settlements or cash arbitration awards, KBR may incur after November 20,2006 as a result of the replacement of certain subsea flowline bolts installedin connection with the Barracuda-Caratinga project. Under the master separationagreement, KBR currently controls the defense, counterclaim, and settlement ofthe subsea flowline bolts matter. As a condition of our indemnity, for anysettlement to be binding upon us, KBR must secure our prior written consent tosuch settlement's terms. We have the right to terminate the indemnity in theevent KBR enters into any settlement without our prior written consent. At Petrobras' direction, KBR replaced certain bolts located on the subseaflowlines that failed through mid-November 2005, and KBR has informed us thatadditional bolts have failed thereafter, which were replaced by Petrobras.These failed bolts were identified by Petrobras when it conducted inspections ofthe bolts. We understand KBR believes several possible solutions may exist,including replacement of the bolts. Estimates indicate that costs of thesevarious solutions range up to $148 million. In March 2006, Petrobras commencedarbitration against KBR claiming $220 million plus interest for the cost ofmonitoring and replacing the defective bolts and all related costs and expensesof the arbitration, including the cost of attorneys' fees. We understand KBR isvigorously defending and pursuing recovery of the costs incurred to date throughthe arbitration process and to that end has submitted a counterclaim in thearbitration seeking the recovery of $22 million. The arbitration panel held anevidentiary hearing i n March 2008 to determine which party is responsible forthe designation of the material used for the bolts. On May 13, 2009, thearbitration panel held that KBR and not Petrobras selected the material to beused for the bolts. Accordingly, the arbitration panel held that there is noimplied warranty by Petrobras to KBR as to the suitability of the bolt materialand that the parties' rights are to be governed by the express terms of theircontract. The parties and the arbitration panel are now in discussion regardingthe future course of the arbitration proceedings with respect to the issues ofliability and damages. Our estimation of the indemnity obligation regarding theBarracuda-Caratinga arbitration is recorded as a liability in our condensedconsolidated financial statements as of June 30, 2009 and December 31, 2008.See Note 2 for additional information regarding the KBR indemnification. Securities and related litigation In June 2002, a class action lawsuit was filed against us in federal courtalleging violations of the federal securities laws after the SEC initiated aninvestigation in connection with our change in accounting for revenue onlong-term construction projects and related disclosures. In the weeks thatfollowed, approximately twenty similar class actions were filed against us.Several of those lawsuits also named as defendants several of our present orformer officers and directors. The class action cases were later consolidated,and the amended consolidated class action complaint, styled Richard Moore, etal. v. Halliburton Company, et al., was filed and served upon us in April 2003.As a result of a substitution of lead plaintiffs, the case is now styledArchdiocese of Milwaukee Supporting Fund (AMSF) v. Halliburton Company, et al.We settled with the SEC in the second quarter of 2004. In June 2003, the lead plaintiffs filed a motion for leave to file a secondamended consolidated complaint, which was granted by the court. In addition torestating the original accounting and disclosure claims, the second amendedconsolidated complaint included claims arising out of the 1998 acquisition ofDresser Industries, Inc. by Halliburton, including that we failed to timelydisclose the resulting asbestos liability exposure. In April 2005, the court appointed new co-lead counsel and named AMSF the newlead plaintiff, directing that it file a third consolidated amended complaintand that we file our motion to dismiss. The court held oral arguments on thatmotion in August 2005, at which time the court took the motion under advisement.In March 2006, the court entered an order in which it granted the motion todismiss with respect to claims arising prior to June 1999 and granted the motionwith respect to certain other claims while permitting AMSF to re-plead some ofthose claims to correct deficiencies in its earlier complaint. In April 2006,AMSF filed its fourth amended consolidated complaint. We filed a motion todismiss those portions of the complaint that had been re-pled. A hearing washeld on that motion in July 2006, and in March 2007 the court ordered dismissalof the claims against all individual defendants other than our Chief ExecutiveOfficer (CEO). The court ordered that the case proceed against our CEO andHalliburton. In September 2007, AMSF filed a motion for class certification, and our responsewas filed in November 2007. The court held a hearing in March 2008, and issuedan order November 3, 2008 denying AMSF's motion for class certification. AMSFthen filed a motion with the Fifth Circuit Court of Appeals requesting permission to appeal the district court's order denying class certification.The Fifth Circuit granted AMSF's motion and the order denying classcertification is currently on appeal. The case will remain stayed in thedistrict court pending the outcome of the appeal. As of June 30, 2009, we hadnot accrued any amounts related to this matter because we do not believe that aloss is probable. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. Shareholder derivative cases In May 2009, two shareholder derivative lawsuits involving us and KBR were filedin Harris County, Texas naming as defendants various current and retiredHalliburton directors and officers and current KBR directors. These casesallege that the individual Halliburton defendants violated their fiduciaryduties of good faith and loyalty to the detriment of Halliburton and itsshareholders by failing to properly exercise oversight responsibilities andestablish adequate internal controls. The petitions contain various allegationsof resulting wrongdoing, including violations of the FCPA and claimed KBRoffenses under United States government contracts. As of June 30, 2009, we hadnot accrued any amounts related to this matter because we do not believe that aloss is probable. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. Asbestos insurance settlements At December 31, 2004, we resolved all open and future asbestos- andsilica-related claims in the prepackaged Chapter 11 proceedings of DIIIndustries LLC, Kellogg Brown & Root LLC, and our other affected subsidiariesthat had previously been named as defendants in a large number of asbestos- andsilica-related lawsuits. During 2004, we settled insurance disputes withsubstantially all the insurance companies for asbestos- and silica-related claims and all other claims under the applicable insurance policies andterminated all the applicable insurance policies. Under the insurance settlements entered into as part of the resolution of ourChapter 11 proceedings, we have agreed to indemnify our insurers under certainhistoric general liability insurance policies in certain situations. We haveconcluded that the likelihood of any claims triggering the indemnity obligationsis remote, and we believe any potential liability for these indemnifications will be immaterial. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. At June 30, 2009, we had not recordedany liability associated with these indemnifications. Environmental We are subject to numerous environmental, legal, and regulatory requirementsrelated to our operations worldwide. In the United States, these laws andregulations include, among others:- the Comprehensive Environmental Response, Compensation, and Liability Act;- the Resource Conservation and Recovery Act;- the Clean Air Act;- the Federal Water Pollution Control Act; and- the Toxic Substances Control Act. In addition to the federal laws and regulations, states and other countrieswhere we do business often have numerous environmental, legal, and regulatoryrequirements by which we must abide. We evaluate and address the environmentalimpact of our operations by assessing and remediating contaminated properties inorder to avoid future liabilities and comply with environmental, legal, andregulatory requirements. On occasion, we are involved in specific environmentallitigation and claims, including the remediation of properties we own or haveoperated, as well as efforts to meet or correct compliance-related matters. OurHealth, Safety and Environment group has several programs in place to maintainenvironmental leadership and to prevent the occurrence of environmental contamination. We do not expect costs related to these remediation requirements to have amaterial adverse effect on our consolidated financial position or our results ofoperations. Our accrued liabilities for environmental matters were $53 millionas of June 30, 2009 and $64 million as of December 31, 2008. Our totalliability related to environmental matters covers numerous properties. We have subsidiaries that have been named as potentially responsible partiesalong with other third parties for 9 federal and state superfund sites for whichwe have established a liability. As of June 30, 2009, those 9 sites accountedfor approximately $14 million of our total $53 million liability. For anyparticular federal or state superfund site, since our estimated liability istypically within a range and our accrued liability may be the amount on the lowend of that range, our actual liability could eventually be well in excess ofthe amount accrued. Despite attempts to resolve these superfund matters, therelevant regulatory agency may at any time bring suit against us for amounts inexcess of the amount accrued. With respect to some superfund sites, we havebeen named a potentially responsible party by a regulatory agency; however, ineach of those cases, we do not believe we have any material liability. We alsocould be subject to third-party claims with respect to environmental matters forwhich we have been named as a potentially responsible party. Letters of credit In the normal course of business, we have agreements with banks under whichapproximately $2 billion of letters of credit, surety bonds, or bank guaranteeswere outstanding as of June 30, 2009, including approximately $400 million ofsurety bonds related to Venezuela. In addition, $627 million of the total $2billion relates to KBR letters of credit, surety bonds, or bank guarantees thatare being guaranteed by us in favor of KBR's customers and lenders. KBR hasagreed to compensate us for these guarantees and indemnify us if we are requiredto perform under any of these guarantees. Some of the outstanding letters ofcredit have triggering events that would entitle a bank to require cash collateralization. 344000000 473000000 58000000 124000000 -1518000000 388000000 -384000000 -102000000 153000000 155000000 8324000000 7744000000 -198000000 -215000000 1068000000 1072000000 76000000 60000000 0.29 0.71 0.71 1.37 1000000 1000000 1000000 0 162000000 158000000 1018000000 985000000 639000000 -410000000 577000000 735000000 -1000000 -116000000 -2000000 -115000000 266000000 626000000 647000000 1212000000 3000000 9000000 5000000 29000000 27000000 26000000 454000000 643000000 8008000000 7411000000 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. 0.29 0.68 0.71 1.31 0.29 0.58 0.71 1.24 2164000000 2480000000 4575000000 4753000000 2542000000 3292000000 5492000000 6256000000 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. 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. 2009-06-30 -14000000 4000000 -2420000000 -541000000 395000000 484000000 2667000000 2666000000 4573000000 2586000000 263000000 620000000 642000000 1199000000 383000000 914000000 943000000 1738000000 3494000000 4487000000 7401000000 8516000000 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 estimated during themeasurement period, the contingent asset or liability would be recognized inaccordance with SFAS No. 5, "Accounting for Contingencies," and FASBInterpretation (FIN) No. 14, "Reasonable Estimation of the Amount of a Loss."Further, this FSP eliminated the specific subsequent accounting guidance forcontingent assets and liabilities from Statement 141(R), without significantlyrevising the guidance in SFAS No. 141. However, contingent consideration arrangements of an acquiree assumed by the acquirer in a business combinationwould still be initially and subsequently measured at fair value in accordancewith SFAS No. 141(R). This FSP is effective for all business acquisitionsoccurring on or after the beginning of the first annual reporting periodbeginning on or after December 15, 2008. We adopted the provisions of SFAS No.141(R) and FSP SFAS 141(R)-1 for business combinations with an acquisition dateon or after January 1, 2009. On January 1, 2009, we adopted FSP APB 14-1, "Accounting for Convertible DebtInstruments That May Be Settled in Cash upon Conversion (Including Partial CashSettlement)." This FSP clarifies that convertible debt instruments that may besettled in cash upon conversion, including partial cash settlement, shouldseparately account for the liability and equity components in a manner that willreflect the entity's nonconvertible debt borrowing rate when interest cost isrecognized in subsequent periods. Upon adopting the provisions of FSP APB 14-1,we retroactively applied its provisions and restated our condensed consolidatedfinancial statements for prior periods. In applying this FSP, $63 million of the carrying value of our 3.125%convertible senior notes due July 2023 was reclassified to equity as of the July2003 issuance date. This amount represents the equity component of the proceedsfrom the notes, calculated assuming a 4.3% non-convertible borrowing rate. Thediscount was accreted to interest expense over the five-year term of the notes.Accordingly, $14 million of additional non-cash interest expense, or $0.01 perdiluted share, was recorded in 2006 and 2007 and $7 million of additionalnon-cash interest expense was recorded in 2008, all during the first six monthsof the year. Furthermore, under this FSP, the $693 million loss to settle ourconvertible debt recorded in the third quarter of 2008 was reversed and recordedto additional paid-in capital. This resulted in a decrease of $7 million toincome from continuing operations and net income attributable to company in thefirst six months of 2008, an increase of $686 million to income from continuingoperations and net income attributable to company in 2008, and a net increase of$630 million to beginning retained earnings as of January 1, 2009. Dilutedincome per share for 2008 increased by $0.76 as a result of the adoption of FSPAPB 14-1. These notes were converted and settled during the third quarter of2008. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements,"which is intended to increase consistency and comparability in fair valuemeasurements by defining fair value, establishing a framework for measuring fairvalue, and expanding disclosures about fair value measurements. SFAS No. 157applies to other accounting pronouncements that require or permit fair valuemeasurements and is effective for financial statements issued for fiscal yearsbeginning after November 15, 2007 and interim periods within those fiscal years.In February 2008, the FASB issued FSP SFAS 157-1, "Application of FASB StatementNo. 157 to FASB Statement No. 13 and Other Accounting Pronouncements ThatAddress Fair Value Measurements for Purposes of Lease Classification orMeasurement under Statement 13," which removes certain leasing transactions fromthe scope of SFAS No. 157, and FSP SFAS 157-2, "Effective Date of FASB StatementNo. 157," which defers the effective date of SFAS No. 157 for one year forcertain nonfinancial asset s and nonfinancial liabilities, except those that arerecognized or disclosed at fair value in the financial statements on a recurringbasis. In October 2008, the FASB also issued FSP SFAS 157-3, "Determining theFair Value of a Financial Asset When the Market for That Asset Is Not Active,"which clarifies the application of SFAS No. 157 in an inactive market andillustrates how an entity would determine fair value when the market for afinancial asset is not active. On January 1, 2008, we adopted without materialimpact on our condensed consolidated financial statements the provisions of SFASNo. 157 related to financial assets and liabilities and to nonfinancial assetsand liabilities measured at fair value on a recurring basis. On January 1,2009, we adopted without material impact on our condensed consolidated financialstatements the provisions of SFAS No. 157 related to nonfinancial assets andnonfinancial liabilities that are not required or permitted to be measured atfair value on a recurring basis, which inc lude those measured at fair value ingoodwill impairment testing, indefinite-lived intangible assets measured at fairvalue for impairment assessment, nonfinancial long-lived assets measured at fairvalue for impairment assessment, asset retirement obligations initially measuredat fair value, and those initially measured at fair value in a businesscombination. In April 2009, the FASB issued FSP SFAS 157-4, "Determining Fair Value When theVolume and Level of Activity for the Asset or Liability Have SignificantlyDecreased and Identifying Transactions That Are Not Orderly," which providesadditional guidance for estimating fair value in accordance with SFAS No. 157when the volume and level of activity for the asset or liability havesignificantly decreased. This FSP re-emphasizes that regardless of marketconditions the fair value measurement is an exit price concept as defined inSFAS No. 157. This FSP clarifies and includes additional factors to consider indetermining whether there has been a significant decrease in market activity foran asset or liability and provides additional clarification on estimating fairvalue when the market activity for an asset or liability has declinedsignificantly. The scope of this FSP does not include assets and liabilitiesmeasured under level 1 inputs. We adopted FSP SFAS 157-4 on June 30, 2009 andwill apply it prospectively to all f air value measurements where appropriate. In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB InterpretationNo. 46(R) Consolidation of Variable Interest Entities." This statement clarifiesthe characteristics that identify a variable interest entity (VIE) and changeshow a reporting entity identifies a primary beneficiary that would consolidatethe VIE from a quantitative risk and rewards calculation to a qualitativeapproach based on which variable interest holder has controlling financialinterest and the ability to direct the most significant activities that impactthe VIE's economic performance. This statement requires the primary beneficiaryassessment to be performed on a continuous basis. It also requires additionaldisclosures about an entity's involvement with VIE, restrictions on the VIE'sassets and liabilities that are included in the reporting entity's consolidatedbalance sheet, significant risk exposures due to the entity's involvement withthe VIE, and how its involvement with a VIE impacts the reporting entity'sconsolidated finan cial statements. SFAS No.167 is effective for fiscal yearsbeginning after November 15, 2009. We will adopt SFAS No. 167 on January 1,2010 and have not yet determined the impact on our condensed consolidatedfinancial statements. In December 2008, the FASB issued FSP SFAS 132(R)-1 "Employers' Disclosuresabout Postretirement Benefit Plan Assets." This FSP amends the disclosurerequirements for employer's disclosure of plan assets for defined benefitpensions and other postretirement plans. The objective of this FSP is toprovide users of financial statements with an understanding of how investmentallocation decisions are made, the major categories of plan assets held by theplans, the inputs and valuation techniques used to measure the fair value ofplan assets, significant concentration of risk within the company's plan assets,and for fair value measurements determined using significant unobservable inputsa reconciliation of changes between the beginning and ending balances. FSP SFAS132(R)-1 is effective for fiscal years ending after December 15, 2009. We willadopt the new disclosure requirements in the 2009 annual reporting period. 14000000 150000000 23000000 19000000 568000000 610000000 1019000000 1120000000 1000000 25000000 1000000 61000000 952000000 1195000000 1909000000 2260000000 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 vi olations 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, andreimbursement commitments for KBR's benefit in connection with: (a) letters ofcredit necessary to comply with KBR's Egypt Basic Industries Corporation ammoniaplant contract, KBR's Allenby & Connaught project, and all other KBR projectcontracts that were in place as o f December 15, 2005; (b) surety bonds issued tosupport new task orders pursuant to the Allenby & Connaught project, two joborder contracts for KBR's Government and Infrastructure segment, and all otherKBR project contracts that were in place as of December 15, 2005; and (c)performance guarantees in support of these contracts. KBR is compensating usfor these guarantees. We have also provided a limited indemnity, with respectto FCPA and anti-trust governmental and third-party claims, to the lenderparties under KBR's revolving credit agreement expiring in December 2010. KBRhas agreed to indemnify us, other than for the FCPA and Barracuda-Caratinga bolts matter, if we are required to perform under any of the indemnities orguarantees related to KBR's revolving credit agreement, letters of credit,surety bonds, or performance guarantees described above. In February 2009, the United States Department of Justice (DOJ) and Securitiesand Exchange Commission (SEC) FCPA investigations were resolved. The total offines and disgorgement was $579 million, of which KBR consented to pay $20million. As of June 30, 2009, we had paid $322 million, consisting of $145million as a result of the DOJ settlement and the indemnity we provided to KBRupon separation and $177 million as a result of the SEC settlement. Our KBRindemnities and guarantees are primarily included in "Department of Justice(DOJ) and Securities and Exchange Commission (SEC) settlement and indemnity,current" and "Other liabilities" on the condensed consolidated balance sheetsand totaled $309 million at June 30, 2009 and $631 million at December 31, 2008.Excluding the remaining amounts necessary to resolve the DOJ and SECinvestigations and under the indemnity we provided to KBR, our estimation of theremaining obligation for other indemnities and guarantees provided to KBR uponseparation was $72 million at June 30, 2009. See Note 7 for further discussionof the FCPA and Barracuda-Caratinga matters. The tax sharing agreement provides for allocations of United States and certainother jurisdiction tax liabilities between us and KBR. -150000000 180000000 5084000000 5251000000 10521000000 10041000000 1067000000 1067000000 2.50 2.50 -82000000 -42000000 -135000000 -84000000 167000000 172000000 262000000 504000000 640000000 1084000000 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. 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 16215000000 14385000000 763000000 0 3152000000 3795000000 265000000 510000000 645000000 1097000000 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. 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Represents currently earned compensation under compensation arrangements that is not actually paid until a later date. Income from continuing operations before income taxes and noncontrolling interest Sum of operating profit and nonoperating income (expense) before income taxes and noncontrolling interest. Income from continuing operations before income taxes and noncontrolling interest Income from continuing operations This element represents the income or loss from continuing operations attributable to the economic entity which may also be defined as revenue less expenses and taxes from ongoing operations before income (loss) from discontinued operations, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. Income from continuing operations The cash inflow associated with the aggregate amount received by the entity through sale or maturity of marketable securities (trading, held-to-maturity, or available-for-sale) during the period and the cash outflow from purchases of trading, available-for-sale securities and held-to-maturity securities. Sales (purchases) of investments in marketable securities Includes currency on hand as well as demand deposits with banks or financial institutions for the entity's discontinued operations. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the entity's discontinued operations may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present mini mal risk of changes in value because of changes in interest rates. Cash and equivalents at beginning of year, discontinued operations Includes currency on hand as well as demand deposits with banks or financial institutions for the entity's discontinued operations. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the entity's discontinued operations may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk o f changes in value because of changes in interest rates. Cash and equivalents at end of year, discontinued operations Payments of Department of Justice and Securities and Exchange Commission settlement and indemnity Payments to the Department of Justice and Securities and Exchange Commission related to the settlements with them and under the indemnity provided to KBR, Inc. upon separation. Amounts attributable to company shareholders KBR Separation Disclosure includes the facts and circumstances leading to the completed separation of KBR, Inc., including the terms of the master separation agreement and tax sharing agreement, the indemnities and guarantees provided upon separation, and the carrying value of the resulting liabilities and obligations as a result of the indemnities and guarantees. Acquisitions and Dispositions Disclosure [Text Block] Description of a business combination or disposition (or series of individually immaterial business combinations or dispositions) completed during the period, including background, timing, recognized assets and liabilities for a business combination, and the gain or loss recognized in the income statement for a disposition. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations and dispositions. Shareholders' Equity Disclosures related to accounts comprising shareholders' equity presented as amounts attributable to the company and amounts attributable to noncontrolling interest in consolidated subsidiaries. Includes: (1) beginning and ending balance of shareholders' equity; (2) transactions with shareholders; (3) components of comprehensive income (loss) and total amount of comprehensive income (loss); and (4) dividends paid on common stock. Also includes the ending accumulated balances for each classification of other comprehensive income (loss) and accumulated total amount of comprehensive income (loss). Components of other comprehensive income (loss) include: (1) defined benefit and other postretirement liabilities adjustments; (2) cumulative translation adjustments; and (3) unrealized gains (losses) on investments. New Accounting Standards For a new accounting standard that has been adopted in the current reporting period or that has been issued in the current reporting period but not yet adopted, an entity's disclosure should (1) describe the new pronouncement, the date that adoption is required and the date that the entity adopted or plans to adopt; (2) discuss the methods of adoption allowed by the pronouncement and the method utilized or expected to be utilized by the entity, if determined; (3) discuss the impact that adoption of the pronouncement had on the financial statements of the entity or is expected to have on the financial statements of the entity, unless such impact is not known or reasonably estimable (in which case, a statement to that effect should be made) and; (4) di sclose the potential impact of other significant matters that the entity believes might result from the adoption of the pronouncement (for example, technical violations of debt covenant agreements and planned or intended changes in business practices.) Aggregate carrying value as of the balance sheet date of the liabilities to the Department of Justice and Securities and Exchange Commission related to the settlements with them and under the indemnity provided to KBR, Inc. upon separation, which are scheduled to be paid within one year. Department of Justice and Securities and Exchange Commission settlement and indemnity, current Supplemental disclosure of cash flow information This element represents the amount by which the carrying amount exceeds the fair value of the investment. The amount is charged to income. Impairment of assets Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect (except for foreign currency translation items), at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Accumulated other comprehensive loss Basis of Presentation Description of the basis of accounting used to prepare the financial statements (for example, U.S. Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Basis of Presentation KBR Separation Business Segment and Geographic Information Inventories Debt Shareholders' Equity Commitments and Contingencies Income per Share Retirement Plans New Accounting Standards Acquisitions and Dispositions Disclosure Income Tax Disclosure Common Stock Disclosure Fair Value of Financial Instruments Disclosure EX-101.PRE 6 hal-20090630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 7 R11.xml IDEA: 5050 - Shareholders' Equity 1.0.0.3 false 5050 - Shareholders' Equity false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hal_ShareholdersEquityAbstract hal false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 hal_ShareholdersEquityTextBlock hal false na duration string Disclosures related to accounts comprising shareholders' equity presented as amounts attributable to the company and amounts... false false false false false false false false false 1 false false 0 0 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) Note 6. Shareholders' Equity The following tables summarize our shareholders' equity activity. Noncontrolling Total Company false false Disclosures related to accounts comprising shareholders' equity presented as amounts attributable to the company and amounts attributable to noncontrolling interest in consolidated subsidiaries. Includes: (1) beginning and ending balance of shareholders' equity; (2) transactions with shareholders; (3) components of comprehensive income (loss) and total amount of comprehensive income (loss); and (4) dividends paid on common stock. Also includes the ending accumulated balances for each classification of other comprehensive income (loss) and accumulated total amount of comprehensive income (loss). Components of other comprehensive income (loss) include: (1) defined benefit and other postretirement liabilities adjustments; (2) cumulative translation adjustments; and (3) unrealized gains (losses) on investments. 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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. 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 false false Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. 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Reportable... false false false false false false false false false 1 false false 0 0 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. Note 3. 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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 enhancement of our anti-bribery and foreign agentinternal controls and record-keeping procedures prior to the review of theindependent consultant, we do not expect the implementation of the consultant'srecommendations to materially impact our long-term strategy to grow ourinternational operations. In 2010, the independent consultant will perform a30-day, follow-up review to confir m that we have implemented the recommendationsand continued the application of our current policies and procedures, and torecommend any additional improvements. KBR has agreed that our indemnification obligations with respect to the DOJ andSEC FCPA investigations have been fully satisfied. Other matters. In addition to the DOJ and the SEC investigations, we are awareof other investigations in France, Nigeria, the United Kingdom, and Switzerlandregarding the Bonny Island project. The settlements and the other ongoing investigations could result in third-partyclaims against us, which may include claims for special, indirect, derivative orconsequential damages, damage to our business or reputation, loss of, or adverseeffect on, cash flow, assets, goodwill, results of operations, businessprospects, profits or business value or claims by directors, officers,employees, affiliates, advisors, attorneys, agents, debt holders, or otherinterest holders or constituents of us or our current or former subsidiaries. Our indemnity of KBR continues with respect to other investigations within thescope of our indemnity. Our indemnification obligation to KBR does not includelosses resulting from third-party claims against KBR, including claims forspecial, indirect, derivative or consequential damages, nor does ourindemnification apply to damage to KBR's business or reputation, loss of, oradverse effect on, cash flow, assets, goodwill, results of operations, businessprospects, profits or business value or claims by directors, officers,employees, affiliates, advisors, attorneys, agents, debt holders, or otherinterest holders or constituents of KBR or KBR's current or former subsidiaries. At this time, no claims by governmental authorities in foreign jurisdictionshave been asserted against KBR. Therefore, we are unable to estimate themaximum potential amount of future payments that could be required to be madeunder our indemnity to KBR related to these matters. See Note 2 for additionalinformation. Barracuda-Caratinga arbitration We also provided indemnification in favor of KBR under the master separationagreement for all out-of-pocket cash costs and expenses (except for legal feesand other expenses of the arbitration so long as KBR controls and directs it),or cash settlements or cash arbitration awards, KBR may incur after November 20,2006 as a result of the replacement of certain subsea flowline bolts installedin connection with the Barracuda-Caratinga project. Under the master separationagreement, KBR currently controls the defense, counterclaim, and settlement ofthe subsea flowline bolts matter. As a condition of our indemnity, for anysettlement to be binding upon us, KBR must secure our prior written consent tosuch settlement's terms. We have the right to terminate the indemnity in theevent KBR enters into any settlement without our prior written consent. At Petrobras' direction, KBR replaced certain bolts located on the subseaflowlines that failed through mid-November 2005, and KBR has informed us thatadditional bolts have failed thereafter, which were replaced by Petrobras.These failed bolts were identified by Petrobras when it conducted inspections ofthe bolts. We understand KBR believes several possible solutions may exist,including replacement of the bolts. Estimates indicate that costs of thesevarious solutions range up to $148 million. In March 2006, Petrobras commencedarbitration against KBR claiming $220 million plus interest for the cost ofmonitoring and replacing the defective bolts and all related costs and expensesof the arbitration, including the cost of attorneys' fees. We understand KBR isvigorously defending and pursuing recovery of the costs incurred to date throughthe arbitration process and to that end has submitted a counterclaim in thearbitration seeking the recovery of $22 million. The arbitration panel held anevidentiary hearing i n March 2008 to determine which party is responsible forthe designation of the material used for the bolts. On May 13, 2009, thearbitration panel held that KBR and not Petrobras selected the material to beused for the bolts. Accordingly, the arbitration panel held that there is noimplied warranty by Petrobras to KBR as to the suitability of the bolt materialand that the parties' rights are to be governed by the express terms of theircontract. The parties and the arbitration panel are now in discussion regardingthe future course of the arbitration proceedings with respect to the issues ofliability and damages. Our estimation of the indemnity obligation regarding theBarracuda-Caratinga arbitration is recorded as a liability in our condensedconsolidated financial statements as of June 30, 2009 and December 31, 2008.See Note 2 for additional information regarding the KBR indemnification. Securities and related litigation In June 2002, a class action lawsuit was filed against us in federal courtalleging violations of the federal securities laws after the SEC initiated aninvestigation in connection with our change in accounting for revenue onlong-term construction projects and related disclosures. In the weeks thatfollowed, approximately twenty similar class actions were filed against us.Several of those lawsuits also named as defendants several of our present orformer officers and directors. The class action cases were later consolidated,and the amended consolidated class action complaint, styled Richard Moore, etal. v. Halliburton Company, et al., was filed and served upon us in April 2003.As a result of a substitution of lead plaintiffs, the case is now styledArchdiocese of Milwaukee Supporting Fund (AMSF) v. Halliburton Company, et al.We settled with the SEC in the second quarter of 2004. In June 2003, the lead plaintiffs filed a motion for leave to file a secondamended consolidated complaint, which was granted by the court. In addition torestating the original accounting and disclosure claims, the second amendedconsolidated complaint included claims arising out of the 1998 acquisition ofDresser Industries, Inc. by Halliburton, including that we failed to timelydisclose the resulting asbestos liability exposure. In April 2005, the court appointed new co-lead counsel and named AMSF the newlead plaintiff, directing that it file a third consolidated amended complaintand that we file our motion to dismiss. The court held oral arguments on thatmotion in August 2005, at which time the court took the motion under advisement.In March 2006, the court entered an order in which it granted the motion todismiss with respect to claims arising prior to June 1999 and granted the motionwith respect to certain other claims while permitting AMSF to re-plead some ofthose claims to correct deficiencies in its earlier complaint. In April 2006,AMSF filed its fourth amended consolidated complaint. We filed a motion todismiss those portions of the complaint that had been re-pled. A hearing washeld on that motion in July 2006, and in March 2007 the court ordered dismissalof the claims against all individual defendants other than our Chief ExecutiveOfficer (CEO). The court ordered that the case proceed against our CEO andHalliburton. In September 2007, AMSF filed a motion for class certification, and our responsewas filed in November 2007. The court held a hearing in March 2008, and issuedan order November 3, 2008 denying AMSF's motion for class certification. AMSFthen filed a motion with the Fifth Circuit Court of Appeals requesting permission to appeal the district court's order denying class certification.The Fifth Circuit granted AMSF's motion and the order denying classcertification is currently on appeal. The case will remain stayed in thedistrict court pending the outcome of the appeal. As of June 30, 2009, we hadnot accrued any amounts related to this matter because we do not believe that aloss is probable. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. Shareholder derivative cases In May 2009, two shareholder derivative lawsuits involving us and KBR were filedin Harris County, Texas naming as defendants various current and retiredHalliburton directors and officers and current KBR directors. These casesallege that the individual Halliburton defendants violated their fiduciaryduties of good faith and loyalty to the detriment of Halliburton and itsshareholders by failing to properly exercise oversight responsibilities andestablish adequate internal controls. The petitions contain various allegationsof resulting wrongdoing, including violations of the FCPA and claimed KBRoffenses under United States government contracts. As of June 30, 2009, we hadnot accrued any amounts related to this matter because we do not believe that aloss is probable. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. Asbestos insurance settlements At December 31, 2004, we resolved all open and future asbestos- andsilica-related claims in the prepackaged Chapter 11 proceedings of DIIIndustries LLC, Kellogg Brown & Root LLC, and our other affected subsidiariesthat had previously been named as defendants in a large number of asbestos- andsilica-related lawsuits. During 2004, we settled insurance disputes withsubstantially all the insurance companies for asbestos- and silica-related claims and all other claims under the applicable insurance policies andterminated all the applicable insurance policies. Under the insurance settlements entered into as part of the resolution of ourChapter 11 proceedings, we have agreed to indemnify our insurers under certainhistoric general liability insurance policies in certain situations. We haveconcluded that the likelihood of any claims triggering the indemnity obligationsis remote, and we believe any potential liability for these indemnifications will be immaterial. Further, an estimate of possible loss or range of lossrelated to this matter cannot be made. At June 30, 2009, we had not recordedany liability associated with these indemnifications. Environmental We are subject to numerous environmental, legal, and regulatory requirementsrelated to our operations worldwide. In the United States, these laws andregulations include, among others:- the Comprehensive Environmental Response, Compensation, and Liability Act;- the Resource Conservation and Recovery Act;- the Clean Air Act;- the Federal Water Pollution Control Act; and- the Toxic Substances Control Act. In addition to the federal laws and regulations, states and other countrieswhere we do business often have numerous environmental, legal, and regulatoryrequirements by which we must abide. We evaluate and address the environmentalimpact of our operations by assessing and remediating contaminated properties inorder to avoid future liabilities and comply with environmental, legal, andregulatory requirements. On occasion, we are involved in specific environmentallitigation and claims, including the remediation of properties we own or haveoperated, as well as efforts to meet or correct compliance-related matters. OurHealth, Safety and Environment group has several programs in place to maintainenvironmental leadership and to prevent the occurrence of environmental contamination. We do not expect costs related to these remediation requirements to have amaterial adverse effect on our consolidated financial position or our results ofoperations. Our accrued liabilities for environmental matters were $53 millionas of June 30, 2009 and $64 million as of December 31, 2008. Our totalliability related to environmental matters covers numerous properties. We have subsidiaries that have been named as potentially responsible partiesalong with other third parties for 9 federal and state superfund sites for whichwe have established a liability. As of June 30, 2009, those 9 sites accountedfor approximately $14 million of our total $53 million liability. For anyparticular federal or state superfund site, since our estimated liability istypically within a range and our accrued liability may be the amount on the lowend of that range, our actual liability could eventually be well in excess ofthe amount accrued. Despite attempts to resolve these superfund matters, therelevant regulatory agency may at any time bring suit against us for amounts inexcess of the amount accrued. With respect to some superfund sites, we havebeen named a potentially responsible party by a regulatory agency; however, ineach of those cases, we do not believe we have any material liability. We alsocould be subject to third-party claims with respect to environmental matters forwhich we have been named as a potentially responsible party. Letters of credit In the normal course of business, we have agreements with banks under whichapproximately $2 billion of letters of credit, surety bonds, or bank guaranteeswere outstanding as of June 30, 2009, including approximately $400 million ofsurety bonds related to Venezuela. In addition, $627 million of the total $2billion relates to KBR letters of credit, surety bonds, or bank guarantees thatare being guaranteed by us in favor of KBR's customers and lenders. KBR hasagreed to compensate us for these guarantees and indemnify us if we are requiredto perform under any of these guarantees. Some of the outstanding letters ofcredit have triggering events that would entitle a bank to require cash collateralization. Note 7. Commitments and Contingencies Foreign Corrupt Practices Act investigations Background. As a result of an ongoing FCPA investigation at the time of false false Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. 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For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 4 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Subparagraph a -Article 5 false 9 5 us-gaap_InventoryNet us-gaap true debit instant monetary Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other... false false false false false false false false false 1 false true 1832000000 1832 false false 2 false true 1828000000 1828 false false Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No authoritative reference available. false 10 5 us-gaap_AvailableForSaleSecuritiesCurrent us-gaap true debit instant monetary Investments in debt and equity securities which are categorized neither as trading securities nor held-to-maturity securities... false false false false false false false false false 1 false true 753000000 753 false false 2 false true 0 0 false false Investments in debt and equity securities which are categorized neither as trading securities nor held-to-maturity securities and which are intended be sold or mature within one year from the balance sheet date or the normal operating cycle, whichever is longer. Such securities are reported at fair value; unrealized gains and losses related to Available-for-sale securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, as should other than temporary declines in fair value below costs basis. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 4, 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 17 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 16 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 false 11 5 us-gaap_DeferredTaxAssetsNetCurrent us-gaap true debit instant monetary The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from... false false false false false false false false false 1 false true 179000000 179 false false 2 false true 246000000 246 false false The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating los s carryforward should be presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 false 12 5 us-gaap_OtherAssetsCurrent us-gaap true debit instant monetary Aggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance... false false false false false false false false false 1 false true 524000000 524 false false 2 false true 418000000 418 false false Aggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 false 13 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or... false false false false false false false false false 1 false true 8008000000 8008 false false 2 false true 7411000000 7411 false false Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 9 -Article 5 true 14 4 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others,... false false false false false false false false false 1 false true 5357000000 5357 false false 2 false true 4782000000 4782 false false Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7 false 15 4 us-gaap_Goodwill us-gaap true debit instant monetary Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized... false false false false false false false false false 1 false true 1068000000 1068 false false 2 false true 1072000000 1072 false false Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 43 false 16 4 us-gaap_AvailableForSaleSecuritiesNoncurrent us-gaap true debit instant monetary Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are... false false false false false false false false false 1 false true 763000000 763 false false 2 false true 0 0 false false Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 17 false 17 4 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet... false false false false false false false false false 1 false true 1019000000 1019 false false 2 false true 1120000000 1120 false false Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 false 18 4 us-gaap_Assets us-gaap true debit instant monetary Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future... false false false false false false false false false 1 false true 16215000000 16215 false false 2 false true 14385000000 14385 false false Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 7 true 20 4 us-gaap_LiabilitiesCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 21 5 us-gaap_AccountsPayableCurrent us-gaap true credit instant monetary Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and... false false false false false false false false false 1 false true 755000000 755 false false 2 false true 898000000 898 false false Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 false 22 5 us-gaap_EmployeeRelatedLiabilitiesCurrent us-gaap true credit instant monetary Total of the carrying values as of the balance sheet date of obligations incurred through that date and payable for... false false false false false false false false false 1 false true 454000000 454 false false 2 false true 643000000 643 false false Total of the carrying values as of the balance sheet date of obligations incurred through that date and payable for obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 false 23 5 hal_DepartmentOfJusticeAndSecuritiesAndExchangeCommissionSettlementAndIndemnityCurrent hal false na instant monetary Aggregate carrying value as of the balance sheet date of the liabilities to the Department of Justice and Securities and... false false false false false false false false false 1 false true 190000000 190 false false 2 false true 373000000 373 false false Aggregate carrying value as of the balance sheet date of the liabilities to the Department of Justice and Securities and Exchange Commission related to the settlements with them and under the indemnity provided to KBR, Inc. upon separation, which are scheduled to be paid within one year. No authoritative reference available. false 24 5 us-gaap_DeferredRevenueCurrent us-gaap true credit instant monetary The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not... false false false false false false false false false 1 false true 226000000 226 false false 2 false true 231000000 231 false false The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 13 -Section A false 25 5 us-gaap_LongTermDebtCurrent us-gaap true credit instant monetary Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes... false false false false false false false false false 1 false true 27000000 27 false false 2 false true 26000000 26 false false Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Article 5 false 26 5 us-gaap_OtherLiabilitiesCurrent us-gaap true credit instant monetary Aggregate carrying amount, as of the balance sheet date, of current obligations not separately disclosed in the balance sheet... false false false false false false false false false 1 false true 568000000 568 false false 2 false true 610000000 610 false false Aggregate carrying amount, as of the balance sheet date, of current obligations not separately disclosed in the balance sheet due to materiality considerations. Current liabilities are expected to be paid within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 6 -Paragraph 15 false 27 5 us-gaap_LiabilitiesCurrent us-gaap true credit instant monetary Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or... false false false false false false false false false 1 false true 2220000000 2220 false false 2 false true 2781000000 2781 false false Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 true 28 4 us-gaap_OtherLongTermDebtNoncurrent us-gaap true credit instant monetary Carrying value as of the balance sheet date of debt not otherwise defined (with maturities initially due after one year or... false false false false false false false false false 1 false true 4573000000 4573 false false 2 false true 2586000000 2586 false false Carrying value as of the balance sheet date of debt not otherwise defined (with maturities initially due after one year or beyond the operating cycle if longer), excluding current portion. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 false 29 4 hal_EmployeeCompensationAndBenefits hal false na instant monetary Aggregate carrying value as of the balance sheet date of the liabilities for all deferred compensation arrangements.... false false false false false false false false false 1 false true 521000000 521 false false 2 false true 539000000 539 false false Aggregate carrying value as of the balance sheet date of the liabilities for all deferred compensation arrangements. Represents currently earned compensation under compensation arrangements that is not actually paid until a later date. No authoritative reference available. false 30 4 us-gaap_OtherLiabilitiesNoncurrent us-gaap true credit instant monetary Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance... false false false false false false false false false 1 false true 577000000 577 false false 2 false true 735000000 735 false false Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 24 -Article 5 false 31 4 us-gaap_Liabilities us-gaap true credit instant monetary Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable... false false false false false false false false false 1 false true 7891000000 7891 false false 2 false true 6641000000 6641 false false Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. true 32 4 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 33 5 us-gaap_CommonStockValue us-gaap true credit instant monetary Dollar value of issued common stock whether issued at par value, no par or stated value. This item includes treasury stock... false false false false false false false false false 1 false true 2667000000 2667 false false 2 false true 2666000000 2666 false false Dollar value of issued common stock whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 34 5 us-gaap_AdditionalPaidInCapital us-gaap true credit instant monetary Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions... false false false false false false false false false 1 false true 395000000 395 false false 2 false true 484000000 484 false false Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 false 35 5 hal_AccumulatedOtherComprehensiveLoss hal false credit instant monetary Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect... false false false false false false false false false 1 false true -198000000 -198 false false 2 false true -215000000 -215 false false Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect (except for foreign currency translation items), at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. No authoritative reference available. false 36 5 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary The cumulative amount of the reporting entity's undistributed earnings or deficit. false false false false false false false false false 1 false true 10521000000 10521 false false 2 false true 10041000000 10041 false false The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 37 5 us-gaap_TreasuryStockValue us-gaap true debit instant monetary Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury.... false false false false false false false false false 1 false true -5084000000 -5084 false false 2 false true -5251000000 -5251 false false Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 false 38 5 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false false false false false false false 1 false true 8301000000 8301 false false 2 false true 7725000000 7725 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 true 39 5 us-gaap_MinorityInterest us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false false false false false false false 1 false true 23000000 23 false false 2 false true 19000000 19 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 26 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A false 40 5 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false false false false false false false 1 false true 8324000000 8324 false false 2 false true 7744000000 7744 false false Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A true 41 4 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary Total of all Liabilities and Stockholders' Equity items. false false false false false false false false false 1 true true 16215000000 16215 false false 2 true true 14385000000 14385 false false Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 25 -Article 7 true false 2 35 false Millions UnKnown UnKnown false true XML 13 R14.xml IDEA: 5080 - Retirement Plans 1.0.0.3 false 5080 - Retirement Plans false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hal_RetirementPlansAbstract hal false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock us-gaap true na duration string Description containing the entire pension and other postretirement benefits disclosure as a single block of text. false false false false false false false false false 1 false false 0 0 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. 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, false false Description containing the entire pension and other postretirement benefits disclosure as a single block of text. 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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 estimated during themeasurement period, the contingent asset or liability would be recognized inaccordance with SFAS No. 5, "Accounting for Contingencies," and FASBInterpretation (FIN) No. 14, "Reasonable Estimation of the Amount of a Loss."Further, this FSP eliminated the specific subsequent accounting guidance forcontingent assets and liabilities from Statement 141(R), without significantlyrevising the guidance in SFAS No. 141. However, contingent consideration arrangements of an acquiree assumed by the acquirer in a business combinationwould still be initially and subsequently measured at fair value in accordancewith SFAS No. 141(R). This FSP is effective for all business acquisitionsoccurring on or after the beginning of the first annual reporting periodbeginning on or after December 15, 2008. We adopted the provisions of SFAS No.141(R) and FSP SFAS 141(R)-1 for business combinations with an acquisition dateon or after January 1, 2009. On January 1, 2009, we adopted FSP APB 14-1, "Accounting for Convertible DebtInstruments That May Be Settled in Cash upon Conversion (Including Partial CashSettlement)." This FSP clarifies that convertible debt instruments that may besettled in cash upon conversion, including partial cash settlement, shouldseparately account for the liability and equity components in a manner that willreflect the entity's nonconvertible debt borrowing rate when interest cost isrecognized in subsequent periods. Upon adopting the provisions of FSP APB 14-1,we retroactively applied its provisions and restated our condensed consolidatedfinancial statements for prior periods. In applying this FSP, $63 million of the carrying value of our 3.125%convertible senior notes due July 2023 was reclassified to equity as of the July2003 issuance date. This amount represents the equity component of the proceedsfrom the notes, calculated assuming a 4.3% non-convertible borrowing rate. Thediscount was accreted to interest expense over the five-year term of the notes.Accordingly, $14 million of additional non-cash interest expense, or $0.01 perdiluted share, was recorded in 2006 and 2007 and $7 million of additionalnon-cash interest expense was recorded in 2008, all during the first six monthsof the year. Furthermore, under this FSP, the $693 million loss to settle ourconvertible debt recorded in the third quarter of 2008 was reversed and recordedto additional paid-in capital. This resulted in a decrease of $7 million toincome from continuing operations and net income attributable to company in thefirst six months of 2008, an increase of $686 million to income from continuingoperations and net income attributable to company in 2008, and a net increase of$630 million to beginning retained earnings as of January 1, 2009. Dilutedincome per share for 2008 increased by $0.76 as a result of the adoption of FSPAPB 14-1. These notes were converted and settled during the third quarter of2008. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements,"which is intended to increase consistency and comparability in fair valuemeasurements by defining fair value, establishing a framework for measuring fairvalue, and expanding disclosures about fair value measurements. SFAS No. 157applies to other accounting pronouncements that require or permit fair valuemeasurements and is effective for financial statements issued for fiscal yearsbeginning after November 15, 2007 and interim periods within those fiscal years.In February 2008, the FASB issued FSP SFAS 157-1, "Application of FASB StatementNo. 157 to FASB Statement No. 13 and Other Accounting Pronouncements ThatAddress Fair Value Measurements for Purposes of Lease Classification orMeasurement under Statement 13," which removes certain leasing transactions fromthe scope of SFAS No. 157, and FSP SFAS 157-2, "Effective Date of FASB StatementNo. 157," which defers the effective date of SFAS No. 157 for one year forcertain nonfinancial asset s and nonfinancial liabilities, except those that arerecognized or disclosed at fair value in the financial statements on a recurringbasis. In October 2008, the FASB also issued FSP SFAS 157-3, "Determining theFair Value of a Financial Asset When the Market for That Asset Is Not Active,"which clarifies the application of SFAS No. 157 in an inactive market andillustrates how an entity would determine fair value when the market for afinancial asset is not active. On January 1, 2008, we adopted without materialimpact on our condensed consolidated financial statements the provisions of SFASNo. 157 related to financial assets and liabilities and to nonfinancial assetsand liabilities measured at fair value on a recurring basis. On January 1,2009, we adopted without material impact on our condensed consolidated financialstatements the provisions of SFAS No. 157 related to nonfinancial assets andnonfinancial liabilities that are not required or permitted to be measured atfair value on a recurring basis, which inc lude those measured at fair value ingoodwill impairment testing, indefinite-lived intangible assets measured at fairvalue for impairment assessment, nonfinancial long-lived assets measured at fairvalue for impairment assessment, asset retirement obligations initially measuredat fair value, and those initially measured at fair value in a businesscombination. In April 2009, the FASB issued FSP SFAS 157-4, "Determining Fair Value When theVolume and Level of Activity for the Asset or Liability Have SignificantlyDecreased and Identifying Transactions That Are Not Orderly," which providesadditional guidance for estimating fair value in accordance with SFAS No. 157when the volume and level of activity for the asset or liability havesignificantly decreased. This FSP re-emphasizes that regardless of marketconditions the fair value measurement is an exit price concept as defined inSFAS No. 157. This FSP clarifies and includes additional factors to consider indetermining whether there has been a significant decrease in market activity foran asset or liability and provides additional clarification on estimating fairvalue when the market activity for an asset or liability has declinedsignificantly. The scope of this FSP does not include assets and liabilitiesmeasured under level 1 inputs. We adopted FSP SFAS 157-4 on June 30, 2009 andwill apply it prospectively to all f air value measurements where appropriate. In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB InterpretationNo. 46(R) Consolidation of Variable Interest Entities." This statement clarifiesthe characteristics that identify a variable interest entity (VIE) and changeshow a reporting entity identifies a primary beneficiary that would consolidatethe VIE from a quantitative risk and rewards calculation to a qualitativeapproach based on which variable interest holder has controlling financialinterest and the ability to direct the most significant activities that impactthe VIE's economic performance. This statement requires the primary beneficiaryassessment to be performed on a continuous basis. It also requires additionaldisclosures about an entity's involvement with VIE, restrictions on the VIE'sassets and liabilities that are included in the reporting entity's consolidatedbalance sheet, significant risk exposures due to the entity's involvement withthe VIE, and how its involvement with a VIE impacts the reporting entity'sconsolidated finan cial statements. SFAS No.167 is effective for fiscal yearsbeginning after November 15, 2009. We will adopt SFAS No. 167 on January 1,2010 and have not yet determined the impact on our condensed consolidatedfinancial statements. In December 2008, the FASB issued FSP SFAS 132(R)-1 "Employers' Disclosuresabout Postretirement Benefit Plan Assets." This FSP amends the disclosurerequirements for employer's disclosure of plan assets for defined benefitpensions and other postretirement plans. The objective of this FSP is toprovide users of financial statements with an understanding of how investmentallocation decisions are made, the major categories of plan assets held by theplans, the inputs and valuation techniques used to measure the fair value ofplan assets, significant concentration of risk within the company's plan assets,and for fair value measurements determined using significant unobservable inputsa reconciliation of changes between the beginning and ending balances. FSP SFAS132(R)-1 is effective for fiscal years ending after December 15, 2009. We willadopt the new disclosure requirements in the 2009 annual reporting period. Note 11. New Accounting Standards In May 2009, the FASB issued Statement of Financial Accounting Standards (SFAS)No. 165 "Subsequent Events," which false false For a new accounting standard that has been adopted in the current reporting period or that has been issued in the current reporting period but not yet adopted, an entity's disclosure should (1) describe the new pronouncement, the date that adoption is required and the date that the entity adopted or plans to adopt; (2) discuss the methods of adoption allowed by the pronouncement and the method utilized or expected to be utilized by the entity, if determined; (3) discuss the impact that adoption of the pronouncement had on the financial statements of the entity or is expected to have on the financial statements of the entity, unless such impact is not known or reasonably estimable (in which case, a statement to that effect should be made) and; (4) disclose the potential impact of other significant matters that the entity believes might result from the adoption of the pronouncement (for example, technical violations of debt covenant agreements and planned or intended changes in busine ss practices.) 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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 Note 9. Fair Value of Financial Instruments During the second quarter of 2009, we purchased $1.5 billion in United StatesTreasury securities with maturities false false This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. 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This may include, but is not limited to, the basis of... false false false false false false false false false 1 false false 0 0 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 dollars 2009 2008 Finished products and parts $ 1,227 $ 1,312Raw materials and supplies 568 446Work in process 37 70Total $ 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. 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 false false This element represents the complete disclosure related to inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income. 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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. Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting false false Description of the basis of accounting used to prepare the financial statements (for example, U.S. Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). 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A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryfo rward should be presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q Disclosures related to accounts comprising shareholders' equity presented as amounts attributable to the company and amounts attributable to noncontrolling interest in consolidated subsidiaries. Includes: (1) beginning and ending balance of shareholders' equity; (2) transactions with shareholders; (3) components of comprehensive income (loss) and total amount of comprehensive income (loss); and (4) dividends paid on common stock. Also includes the ending accumulated balances for each classification of other comprehensive income (loss) and accumulated total amount of comprehensive income (loss). Components of other comprehensive income (loss) include: (1) defined benefit and other postretirement liabilities adjustments; (2) cumulative translation adjustments; and (3) unrealized gains (losses) on investments. No authoritative reference available. Aggregate carrying amount, as of the balance sheet date, of current obligations not separately disclosed in the balance sheet due to materiality considerations. Current liabilities are expected to be paid within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 6 -Paragraph 15 This element represents the overall income (loss) from a disposal group that is classified as a component of the entity, net of income tax, reported as a separate component of income before extraordinary items and the cumulative effect of accounting changes before deduction or consideration of the amount which may be allocable to noncontrolling interests, if any. Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 13 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 47 -Subparagraph c The gain (loss) resulting from the sale of a disposal group that is not a discontinued operation. It is included in income from continuing operations before income taxes in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 47 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 37, 45 Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 -Subparagraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 14 -Article 5 Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Aggregate revenue during the period from the sale of goods in the normal course of business, after deducting returns, allowances and discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 1 -Article 5 The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section I -Subsection 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 289 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 No authoritative reference available. No authoritative reference available. This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items and the cumulative effect of accounting changes. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 47 -Subparagraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 46 The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 34 -Paragraph 21 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 9 -Subsection II Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 9 -Article 9 Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 No authoritative reference available. No authoritative reference available. The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 No authoritative reference available. No authoritative reference available. For a new accounting standard that has been adopted in the current reporting period or that has been issued in the current reporting period but not yet adopted, an entity's disclosure should (1) describe the new pronouncement, the date that adoption is required and the date that the entity adopted or plans to adopt; (2) discuss the methods of adoption allowed by the pronouncement and the method utilized or expected to be utilized by the entity, if determined; (3) discuss the impact that adoption of the pronouncement had on the financial statements of the entity or is expected to have on the financial statements of the entity, unless such impact is not known or reasonably estimable (in which case, a statement to that effect should be made) and; (4) disclose the potential impact of other significant matters that the entity believes might result from the adoption of the pronouncement (for example, technical violations of debt covenant agreements and planned or intended changes in business practi ces.) No authoritative reference available. Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 No authoritative reference available. No authoritative reference available. This element represents the overall income (loss) from a disposal group apportioned to the parent that is classified as a component of the entity, net of income tax, reported as a separate component of income before extraordinary items and the cumulative effect of accounting changes after deduction or consideration of the amount which may be allocable to noncontrolling interests, if any. Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph b(2) Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 Number of [basic] shares, after adjustment for contingently issuable shares and other shares not deemed outstanding, determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 171 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 36, 37, 38 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section I -Subsection 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 289 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph d Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A7 -Appendix A Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 1 -Article 5 The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 The amount of income (loss) from discontinued operations, net of related tax effect, per each diluted share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section E -Paragraph Question 3 This element represents the income or loss from continuing operations attributable to the reporting entity which may also be defined as revenue less expenses and taxes from ongoing operations before extraordinary items and cumulative effects of changes in accounting principles, but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph b(1) Total of the carrying values as of the balance sheet date of obligations incurred through that date and payable for obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Carrying value as of the balance sheet date of debt not otherwise defined (with maturities initially due after one year or beyond the operating cycle if longer), excluding current portion. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 No authoritative reference available. No authoritative reference available. The cash inflow associated with the aggregate amount received by the entity through sale or maturity of marketable securities (trading, held-to-maturity, or available-for-sale) during the period and the cash outflow from purchases of trading, available-for-sale securities and held-to-maturity securities. No authoritative reference available. Total costs related to services rendered by an entity during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 2 -Article 5 Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect (except for foreign currency translation items), at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. No authoritative reference available. Aggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 11, 12, 36 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 The amount of income (loss) from continuing operations available to each share of common stock outstanding during the reporting period and each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 11, 12, 36, 37, 38 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 26 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 The net cash outflow (inflow) from other investing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 The amount of income (loss) from disposition of discontinued operations, net of related tax effect, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8, 9, 10, 36, 37, 38 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 The cash outflow from the entity's earnings to the shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a Total costs of sales and operating expenses for the period. No authoritative reference available. Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Article 5 The amount of income (loss) from continuing operations per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 36, 37, 38 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 20 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 25 Investments in debt and equity securities which are categorized neither as trading securities nor held-to-maturity securities and which are intended be sold or mature within one year from the balance sheet date or the normal operating cycle, whichever is longer. Such securities are reported at fair value; unrealized gains and losses related to Available-for-sale securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, as should other than temporary declines in fair value below costs basis. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 4, 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 17 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 16 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 This element represents the complete disclosure related to inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a, b, c -Article 5 Transactions that do not result in cash inflows or outflows in the period in which they occur, but affect net income and thus are removed when calculating net cash flow from operating activities using the indirect cash flow method. This element is used when there is not a more specific and appropriate element. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Dollar value of issued common stock whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18, 19, 20 The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Sum of operating profit and nonoperating income (expense) before income taxes and noncontrolling interest. No authoritative reference available. Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 7 The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 5 The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph e This element represents the income or loss from continuing operations attributable to the economic entity which may also be defined as revenue less expenses and taxes from ongoing operations before income (loss) from discontinued operations, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. No authoritative reference available. The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A1, A4, A5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 5 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(1) No authoritative reference available. No authoritative reference available. The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. No authoritative reference available. The portion of net income (loss) attributable to the noncontrolling interest (if any) deducted in order to derive the portion attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(1) Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A1, A4, A5 Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 1 -Article 5 Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7 Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No authoritative reference available. Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 17 The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 The net result for the period of deducting operating expenses from operating revenues. No authoritative reference available. The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 25 -Article 7 The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income statement under materiality guidelines. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 9 -Article 5 Payments to the Department of Justice and Securities and Exchange Commission related to the settlements with them and under the indemnity provided to KBR, Inc. upon separation. No authoritative reference available. The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph f Disclosure includes the facts and circumstances leading to the completed separation of KBR, Inc., including the terms of the master separation agreement and tax sharing agreement, the indemnities and guarantees provided upon separation, and the carrying value of the resulting liabilities and obligations as a result of the indemnities and guarantees. No authoritative reference available. Description of the basis of accounting used to prepare the financial statements (for example, U.S. Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). No authoritative reference available. Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 43 XML 21 R13.xml IDEA: 5070 - Income per Share 1.0.0.3 false 5070 - Income per Share false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hal_IncomePerShareAbstract hal false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_EarningsPerShareTextBlock us-gaap true na duration string This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. false false false false false false false false false 1 false false 0 0 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. Note 8. 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Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. 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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 vi olations 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, andreimbursement commitments for KBR's benefit in connection with: (a) letters ofcredit necessary to comply with KBR's Egypt Basic Industries Corporation ammoniaplant contract, KBR's Allenby & Connaught project, and all other KBR projectcontracts that were in place as o f December 15, 2005; (b) surety bonds issued tosupport new task orders pursuant to the Allenby & Connaught project, two joborder contracts for KBR's Government and Infrastructure segment, and all otherKBR project contracts that were in place as of December 15, 2005; and (c)performance guarantees in support of these contracts. KBR is compensating usfor these guarantees. We have also provided a limited indemnity, with respectto FCPA and anti-trust governmental and third-party claims, to the lenderparties under KBR's revolving credit agreement expiring in December 2010. KBRhas agreed to indemnify us, other than for the FCPA and Barracuda-Caratinga bolts matter, if we are required to perform under any of the indemnities orguarantees related to KBR's revolving credit agreement, letters of credit,surety bonds, or performance guarantees described above. In February 2009, the United States Department of Justice (DOJ) and Securitiesand Exchange Commission (SEC) FCPA investigations were resolved. The total offines and disgorgement was $579 million, of which KBR consented to pay $20million. As of June 30, 2009, we had paid $322 million, consisting of $145million as a result of the DOJ settlement and the indemnity we provided to KBRupon separation and $177 million as a result of the SEC settlement. Our KBRindemnities and guarantees are primarily included in "Department of Justice(DOJ) and Securities and Exchange Commission (SEC) settlement and indemnity,current" and "Other liabilities" on the condensed consolidated balance sheetsand totaled $309 million at June 30, 2009 and $631 million at December 31, 2008.Excluding the remaining amounts necessary to resolve the DOJ and SECinvestigations and under the indemnity we provided to KBR, our estimation of theremaining obligation for other indemnities and guarantees provided to KBR uponseparation was $72 million at June 30, 2009. See Note 7 for further discussionof the FCPA and Barracuda-Caratinga matters. The tax sharing agreement provides for allocations of United States and certainother jurisdiction tax liabilities between us and KBR. 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 false false Disclosure includes the facts and circumstances leading to the completed separation of KBR, Inc., including the terms of the master separation agreement and tax sharing agreement, the indemnities and guarantees provided upon separation, and the carrying value of the resulting liabilities and obligations as a result of the indemnities and guarantees. 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