SEC Info - Halliburton Co - ‘10-K’ for 12/31/09

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Halliburton Co – ‘10-K’ for 12/31/09 – ‘XML.R7’

On: Wednesday, 2/17/10, at 1:01pm ET · For: 12/31/09 · Accession #: 45012-10-85 · File #: 1-03492

  As Of               Filer                 Filing    For·On·As Docs:Size

 2/17/10  Halliburton Co                    10-K       12/31/09   40:4.3M

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Halliburton Company 12-31-2009 10-K                 HTML   1.69M 
 3: EX-21.1     Subsidiaries of the Registrant                      HTML     20K 
 4: EX-23.1     Consent of Independent Registered Public Acctg      HTML     15K 
                Firm                                                             
 5: EX-24.3     Power of Attorney - N.K. Dicciani                   HTML     13K 
 6: EX-24.4     Power of Attorney - R.A. Malone                     HTML     13K 
 2: EX-12.1     Computation of Ratio of Earnings to Fixed Charges   HTML     48K 
 7: EX-31.1     302 Certification for David Lesar                   HTML     18K 
 8: EX-31.2     302 Certification for Mark McCollum                 HTML     19K 
 9: EX-32.1     906 Certification for David Lesar                   HTML     15K 
10: EX-32.2     906 Certification for Mark McCollum                 HTML     15K 
32: XML         IDEA XML File -- Definitions and References          XML     86K 
37: XML         IDEA XML File -- Filing Summary                      XML     40K 
35: XML.R1      Consolidated Statements of Operations                XML    304K 
36: XML.R2      Parenthetical Data to the Consolidated Statements    XML     46K 
                of Operations                                                    
23: XML.R3      Consolidated Balance Sheets                          XML    243K 
27: XML.R4      Parenthetical Data to the Consolidated Balance       XML     75K 
                Sheet                                                            
31: XML.R5      Consolidated Statements of Shareholders' Equity      XML    118K 
30: XML.R6      Consolidated Statements of Cash Flows                XML    297K 
39: XML.R7      Description of Company and Significant Accounting    XML     43K 
                Policies                                                         
19: XML.R8      KBR Separation                                       XML     35K 
29: XML.R9      Business Segment and Geographic Information          XML     37K 
18: XML.R10     Receivables                                          XML     30K 
17: XML.R11     Inventories                                          XML     30K 
22: XML.R12     Property, Plant, and Equipment                       XML     30K 
34: XML.R13     Debt                                                 XML     31K 
24: XML.R14     Shareholders' Equity and Stock Incentive Plans       XML     44K 
25: XML.R15     Commitments and Contingencies                        XML     49K 
28: XML.R16     Income per Share                                     XML     31K 
40: XML.R17     Retirement Plans                                     XML     40K 
21: XML.R18     New Accounting Standards                             XML     37K 
16: XML.R19     Income Tax Disclosure                                XML     34K 
26: XML.R20     Fair Value of Financial Instruments and Risk         XML     35K 
                Management                                                       
33: XML.R21     Document Information                                 XML     39K 
20: XML.R22     Entity Information                                   XML    103K 
38: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    105K 
13: EX-101.CAL  XBRL Calculations -- hal-20091231_cal                XML    158K 
11: EX-101.INS  XBRL Instance -- hal-20091231                        XML    261K 
14: EX-101.LAB  XBRL Labels -- hal-20091231_lab                      XML    547K 
15: EX-101.PRE  XBRL Presentations -- hal-20091231_pre               XML    310K 
12: EX-101.SCH  XBRL Schema -- hal-20091231                          XSD     63K

‘XML.R7’ — Description of Company and Significant Accounting Policies

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<NonNumbericText> Note 1. Description of Company and Significant Accounting Policies Description of CompanyHalliburton Company's predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. We are one of the world's largest oilfield services companies. Our two business segments are the Completion and Production segment and the Drilling and Evaluation segment. We provide a comprehensive range of services and products for the exploration, development, and production of oil and natural gas around the world.Use of estimatesOur financial statements are prepared in conformity with accounting principles generally accepted in the United States, requiring 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.We believe the most significant estimates and assumptions are associated with the forecasting of our effective income tax rate and the valuation of deferred taxes, legal and environmental reserves, indemnity valuations, long-lived asset valuations, purchase price allocations, pensions, allowance for bad debts, and percentage-of-completion accounting for long-term contracts. Ultimate results could differ from those estimates.Basis of presentationThe consolidated financial statements include the accounts of our company and all of our subsidiaries that we control or variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany accounts and transactions are eliminated. Investments in companies in which we have significant influence are accounted for using the equity method. If we do not have significant influence, we use the cost method.We report two business segments. In the first quarter of 2009, we reclassified certain services between our operating segments to re-establish a new service offering. See Note 2 for further information. Additionally, KBR, Inc. (KBR), formerly a wholly owned subsidiary, is presented as discontinued operations in the consolidated financial statements. See Note 7 for additional information. In 2009, we adopted the provisions of new accounting standards. See Note 14 for further information. All periods presented reflect these changes.We have evaluated subsequent events through February 17, 2010, the date of issuance of the consolidated financial statements. Revenue recognitionOverall. Our services and products are generally sold based upon purchase orders or contracts with our customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. Our products are produced in a standard manufacturing operation, even if produced to our customer's specifications. We recognize revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured, and delivery occurs as directed by our customer. Service revenue, including training and consulting services, is recognized when the services are rendered and collectability is reasonably assured. Rates for services are typically priced on a per day, per meter, per man-hour, or similar basis.Software sales. Sales of perpetual software licenses, net of any deferred maintenance and support fees, are recognized as revenue upon shipment. Sales of time-based licenses are recognized as revenue over the license period. Maintenance and support fees are recognized as revenue ratably over the contract period, usually a one-year duration.Percentage of completion. Revenue from certain long-term, integrated project management contracts to provide well construction and completion services is reported on the percentage-of-completion method of accounting. Progress is generally based upon physical progress related to contractually defined units of work. Physical percent complete is determined as a combination of input and output measures as deemed appropriate by the circumstances. All known or anticipated losses on contracts are provided for when they become evident. Cost adjustments that are in the process of being negotiated with customers for extra work or changes in the scope of work are included in revenue when collection is deemed probable.Research and developmentResearch and development costs are expensed as incurred. Research and development costs were $325 million in 2009, $326 million in 2008, and $301 million in 2007.Cash equivalentsWe consider all highly liquid investments with an original maturity of three months or less to be cash equivalents.InventoriesInventories are stated at the lower of cost or market. Cost represents invoice or production cost for new items and original cost less allowance for condition for used material returned to stock. Production cost includes material, labor, and manufacturing overhead. Some domestic manufacturing and field service finished products and parts inventories for drill bits, completion products, and bulk materials are recorded using the last-in, first-out method. The remaining inventory is recorded on the average cost method. We regularly review inventory quantities on hand and record provisions for excess or obsolete inventory based primarily on historical usage, estimated product demand, and technological developments.Allowance for bad debtsWe establish an allowance for bad debts through a review of several factors, including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. Property, plant, and equipmentOther than those assets that have been written down to their fair values due to impairment, property, plant, and equipment are reported at cost less accumulated depreciation, which is generally provided on the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are also used for tax purposes, wherever permitted. Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Planned major maintenance costs are generally expensed as incurred. Expenditures for additions, modifications, and conversions are capitalized when they increase the value or extend the useful life of the asset.Goodwill and other intangible assetsWe record as goodwill the excess purchase price over the fair value of the tangible and identifiable intangible assets acquired. During 2009, we recorded an immaterial amount of goodwill from acquisitions. During 2008, we recorded an additional $274 million in goodwill arising from 2008 acquisitions, of which $159 million related to the Completion and Production segment and $115 million related to the Drilling and Evaluation segment. The reported amounts of goodwill for each reporting unit are reviewed for impairment on an annual basis, during the third quarter, and more frequently when negative conditions such as significant current or projected operating losses exist. The annual impairment test for goodwill is a two-step process and involves comparing the estimated fair value of each reporting unit to the reporting unit's carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired, and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test would be performed to measure the amount of impairment loss to be recorded, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In other words, the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The fair value of each of our reporting units exceeded its carrying amount by a significant margin for 2009, 2008, and 2007. In addition, there were no triggering events that occurred in 2009, 2008, or 2007 requiring us to perform additional impairment reviews. We amortize other identifiable intangible assets with a finite life on a straight-line basis over the period which the asset is expected to contribute to our future cash flows, ranging from 3 years to 20 years. The components of these other intangible assets generally consist of patents, license agreements, non-compete agreements, trademarks, and customer lists and contracts.Evaluating impairment of long-lived assetsWhen events or changes in circumstances indicate that long-lived assets other than goodwill may be impaired, an evaluation is performed. For an asset classified as held for use, the estimated future undiscounted cash flows associated with the asset are compared to the asset's carrying amount to determine if a write-down to fair value is required. When an asset is classified as held for sale, the asset's book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. In addition, depreciation and amortization is ceased while it is classified as held for sale.Income taxes We recognize the amount of taxes payable or refundable for the year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations.We generally do not provide income taxes on the undistributed earnings of non-United States subsidiaries because such earnings are intended to be reinvested indefinitely to finance foreign activities. These additional foreign earnings could be subject to additional tax if remitted, or deemed remitted, as a dividend; however, it is not practicable to estimate the additional amount, if any, of taxes payable. Taxes are provided as necessary with respect to earnings that are not permanently reinvested.Derivative instrumentsAt times, we enter into derivative financial transactions to hedge existing or projected exposures to changing foreign currency exchange rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives on the balance sheet at fair value. Derivatives are adjusted to fair value and reflected through the results of operations. Gains or losses on foreign currency derivatives are included in "Other, net" in our consolidated statements of operations. Our derivatives are not designated as hedges for accounting purposes. Foreign currency translationForeign entities whose functional currency is the United States dollar translate monetary assets and liabilities at year-end exchange rates, and nonmonetary items are translated at historical rates. Income and expense accounts are translated at the average rates in effect during the year, except for depreciation, cost of product sales and revenue, and expenses associated with nonmonetary balance sheet accounts, which are translated at historical rates. Gains or losses from changes in exchange rates are recognized in our consolidated statements of operations in "Other, net" in the year of occurrence. Foreign entities whose functional currency is not the United States dollar translate net assets at year-end rates and income and expense accounts at average exchange rates. Adjustments resulting from these translations are reflected in the consolidated statements of shareholders' equity as "Net cumulative translation adjustments."Stock-based compensationStock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award, and is recognized as expense over the employee's service period, which is generally the vesting period of the equity grant. Additionally, compensation cost is recognized based on awards ultimately expected to vest, therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods to reflect actual forfeitures. See Note 10 for additional information related to stock-based compensation. </NonNumbericText>

<NonNumericTextHeader> Note 1. Description of Company and Significant Accounting Policies Description of CompanyHalliburton Company's predecessor was established in 1919 and </NonNumericTextHeader>

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3 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/10/10  SEC                               UPLOAD¶     9/19/17    1:40K  Halliburton Co.
 8/02/10  SEC                               UPLOAD¶     9/19/17    1:57K  Halliburton Co.
 7/16/10  SEC                               UPLOAD¶     9/19/17    1:59K  Halliburton Co.

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Filing Submission 0000045012-10-000085 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Halliburton Co – ‘10-K’ for 12/31/09 – ‘XML.R7’

On: Wednesday, 2/17/10, at 1:01pm ET · For: 12/31/09 · Accession #: 45012-10-85 · File #: 1-03492

Previous ‘10-K’: ‘10-K’ on 2/18/09 for 12/31/08 · Next: ‘10-K’ on 2/17/11 for 12/31/10 · Latest: ‘10-K’ on 2/6/24 for 12/31/23 · 3 References: By: SEC – ‘UPLOAD’ on 8/10/10 By: SEC – ‘UPLOAD’ on 8/2/10 By: SEC – ‘UPLOAD’ on 7/16/10

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘XML.R7’ — Description of Company and Significant Accounting Policies

This Financial Report is an XBRL XML File.

3 Subsequent Filings that Reference this Filing

Previous ‘10-K’: ‘10-K’ on 2/18/09 for 12/31/08 · Next: ‘10-K’ on 2/17/11 for 12/31/10 · Latest: ‘10-K’ on 2/6/24 for 12/31/23 · 3 References:

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents