(Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Emerging growth company |
Three Months Ended | |||||||||||||||||||||||
March 31 | December 31 | ||||||||||||||||||||||
2021 | 2020 | 2020 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Completion and Production | $ | 1,870 | $ | 2,962 | $ | 1,810 | |||||||||||||||||
Drilling and Evaluation | 1,581 | 2,075 | 1,427 | ||||||||||||||||||||
Total revenue | $ | 3,451 | $ | 5,037 | $ | 3,237 | |||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
Completion and Production | $ | 252 | $ | 345 | $ | 282 | |||||||||||||||||
Drilling and Evaluation | 171 | 217 | 117 | ||||||||||||||||||||
Corporate and other | (53) | (60) | (49) | ||||||||||||||||||||
Impairments and other charges (a) | — | (1,073) | (446) | ||||||||||||||||||||
Total operating income (loss) | 370 | (571) | (96) | ||||||||||||||||||||
Interest expense, net | (125) | (134) | (125) | ||||||||||||||||||||
Loss on early extinguishment of debt (b) | — | (168) | — | ||||||||||||||||||||
Other, net | (22) | (23) | (19) | ||||||||||||||||||||
Income (loss) before income taxes | 223 | (896) | (240) | ||||||||||||||||||||
Income tax benefit (provision) (c) | (52) | (119) | 13 | ||||||||||||||||||||
Net Income (loss) | $ | 171 | $ | (1,015) | $ | (227) | |||||||||||||||||
Net loss attributable to noncontrolling interest | (1) | (2) | (8) | ||||||||||||||||||||
Net Income (loss) attributable to company | $ | 170 | $ | (1,017) | $ | (235) | |||||||||||||||||
Basic and diluted net income (loss) per share | $ | 0.19 | $ | (1.16) | $ | (0.27) | |||||||||||||||||
Basic and diluted weighted average common shares outstanding | 889 | 878 | 885 | ||||||||||||||||||||
(a) | See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2020 and December 31, 2020. | ||||||||||||||||||||||
(b) | During the three months ended March 31, 2020, Halliburton recognized a $168 million loss on extinguishment of debt related to the early redemption of $1.5 billion aggregate principal amount of senior notes. | ||||||||||||||||||||||
(c) | During the three months ended March 31, 2020, Halliburton recognized a $310 million tax expense associated with a valuation allowance on its deferred tax assets based on current market conditions and the expected impact on the Company's business outlook. | ||||||||||||||||||||||
See Footnote Table 1 for Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income. | |||||||||||||||||||||||
See Footnote Table 2 for Reconciliation of As Reported Net Income (Loss) to Adjusted Net Income. |
March 31 | December 31 | |||||||||||||
2021 | 2020 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and equivalents | $ | 2,446 | $ | 2,563 | ||||||||||
Receivables, net | 3,250 | 3,071 | ||||||||||||
Inventories | 2,349 | 2,349 | ||||||||||||
Other current assets | 1,475 | 1,492 | ||||||||||||
Total current assets | 9,520 | 9,475 | ||||||||||||
Property, plant, and equipment, net | 4,231 | 4,325 | ||||||||||||
Goodwill | 2,804 | 2,804 | ||||||||||||
Deferred income taxes | 2,165 | 2,166 | ||||||||||||
Operating lease right-of-use assets | 760 | 786 | ||||||||||||
Other assets | 1,095 | 1,124 | ||||||||||||
Total assets | $ | 20,575 | $ | 20,680 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 1,769 | $ | 1,573 | ||||||||||
Current maturities of long-term debt | 515 | 695 | ||||||||||||
Accrued employee compensation and benefits | 479 | 517 | ||||||||||||
Current portion of operating lease liabilities | 250 | 251 | ||||||||||||
Other current liabilities | 1,212 | 1,385 | ||||||||||||
Total current liabilities | 4,225 | 4,421 | ||||||||||||
Long-term debt | 9,127 | 9,132 | ||||||||||||
Operating lease liabilities | 718 | 758 | ||||||||||||
Employee compensation and benefits | 518 | 562 | ||||||||||||
Other liabilities | 808 | 824 | ||||||||||||
Total liabilities | 15,396 | 15,697 | ||||||||||||
Company shareholders’ equity | 5,170 | 4,974 | ||||||||||||
Noncontrolling interest in consolidated subsidiaries | 9 | 9 | ||||||||||||
Total shareholders’ equity | 5,179 | 4,983 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 20,575 | $ | 20,680 |
Three Months Ended | ||||||||||||||
March 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net Income (loss) | $ | 171 | $ | (1,015) | ||||||||||
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||||||||||||||
Impairments and other charges | — | 1,073 | ||||||||||||
Depreciation, depletion, and amortization | 226 | 348 | ||||||||||||
Working capital (a) | 59 | (200) | ||||||||||||
Other operating activities | (253) | 19 | ||||||||||||
Total cash flows provided by (used in) operating activities | 203 | 225 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (104) | (213) | ||||||||||||
Proceeds from sales of property, plant, and equipment | 58 | 69 | ||||||||||||
Other investing activities | (16) | (21) | ||||||||||||
Total cash flows provided by (used in) investing activities | (62) | (165) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Payments on long-term borrowings | (188) | (1,651) | ||||||||||||
Proceeds from issuance of long-term debt, net | — | 994 | ||||||||||||
Dividends to shareholders | (40) | (158) | ||||||||||||
Stock repurchase program | — | (100) | ||||||||||||
Other financing activities | 5 | 12 | ||||||||||||
Total cash flows provided by (used in) financing activities | (223) | (903) | ||||||||||||
Effect of exchange rate changes on cash | (35) | (40) | ||||||||||||
Decrease in cash and equivalents | (117) | (883) | ||||||||||||
Cash and equivalents at beginning of period | 2,563 | 2,268 | ||||||||||||
Cash and equivalents at end of period | $ | 2,446 | $ | 1,385 | ||||||||||
(a) | Working capital includes receivables, inventories, and accounts payable. | |||||||||||||
See Footnote Table 3 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow |
Three Months Ended | |||||||||||||||||
March 31 | December 31 | ||||||||||||||||
Revenue | 2021 | 2020 | 2020 | ||||||||||||||
By operating segment: | |||||||||||||||||
Completion and Production | $ | 1,870 | $ | 2,962 | $ | 1,810 | |||||||||||
Drilling and Evaluation | 1,581 | 2,075 | 1,427 | ||||||||||||||
Total revenue | $ | 3,451 | $ | 5,037 | $ | 3,237 | |||||||||||
By geographic region: | |||||||||||||||||
North America | $ | 1,404 | $ | 2,460 | $ | 1,238 | |||||||||||
Latin America | 535 | 516 | 426 | ||||||||||||||
Europe/Africa/CIS | 634 | 831 | 642 | ||||||||||||||
Middle East/Asia | 878 | 1,230 | 931 | ||||||||||||||
Total revenue | $ | 3,451 | $ | 5,037 | $ | 3,237 | |||||||||||
Operating Income (Loss) | |||||||||||||||||
By operating segment: | |||||||||||||||||
Completion and Production | $ | 252 | $ | 345 | $ | 282 | |||||||||||
Drilling and Evaluation | 171 | 217 | 117 | ||||||||||||||
Total | 423 | 562 | 399 | ||||||||||||||
Corporate and other | (53) | (60) | (49) | ||||||||||||||
Impairments and other charges | — | (1,073) | (446) | ||||||||||||||
Total operating income (loss) | $ | 370 | $ | (571) | $ | (96) | |||||||||||
See Footnote Table 1 for Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income. |
Three Months Ended | ||||||||||||||
March 31 | December 31 | |||||||||||||
2021 | 2020 | 2020 | ||||||||||||
As reported operating income (loss) | $ | 370 | $ | (571) | $ | (96) | ||||||||
Impairments and other charges: | ||||||||||||||
Long-lived asset impairments | — | 1,016 | 330 | |||||||||||
Severance | — | 32 | 28 | |||||||||||
Other | — | 25 | 88 | |||||||||||
Total impairments and other charges (a) | — | 1,073 | 446 | |||||||||||
Adjusted operating income (b) | $ | 370 | $ | 502 | $ | 350 | ||||||||
(a) | During the three months ended March 31, 2020, Halliburton recognized a pre-tax charge of $1.1 billion related to long-lived assets, primarily associated with pressure pumping equipment, as well as severance costs and other charges. During the three months ended December 31, 2020, Halliburton recognized a pre-tax charge of $446 million primarily related to a contemplated structured transaction for its North American real estate assets. | |||||||||||||
(b) | Management believes that operating income (loss) adjusted for impairments and other charges for the three months ended March 31, 2020 and December 31, 2020 is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. Adjusted operating income is calculated as: “As reported operating income (loss)” plus "Total impairments and other charges" for the respective periods. |
Three Months Ended | ||||||||||||||
March 31 | December 31 | |||||||||||||
2021 | 2020 | 2020 | ||||||||||||
As reported net income (loss) attributable to company | $ | 170 | $ | (1,017) | $ | (235) | ||||||||
Adjustments: | ||||||||||||||
Impairments and other charges | — | 1,073 | 446 | |||||||||||
Loss on early extinguishment of debt | — | 168 | — | |||||||||||
Total adjustments, before taxes | — | 1,241 | 446 | |||||||||||
Tax provision (benefit) (a) | — | 46 | (51) | |||||||||||
Total adjustments, net of taxes (b) | — | 1,287 | 395 | |||||||||||
Adjusted net income attributable to company (b) | $ | 170 | $ | 270 | $ | 160 | ||||||||
As reported diluted weighted average common shares outstanding (c) | 889 | 878 | 885 | |||||||||||
Adjusted diluted weighted average common shares outstanding (c) | 889 | 881 | 885 | |||||||||||
As reported net income (loss) per diluted share (d) | $ | 0.19 | $ | (1.16) | $ | (0.27) | ||||||||
Adjusted net income per diluted share (d) | $ | 0.19 | $ | 0.31 | $ | 0.18 | ||||||||
(a) | The tax provision (benefit) in the table above includes the tax effect on impairments and other charges during the respective periods. During the three months ended March 31, 2020, Halliburton recognized a $310 million tax expense associated with a valuation allowance on its deferred tax assets based on current market conditions and the expected impact on the Company's business outlook, and the tax effect of the loss on early extinguishment of debt. | |||||||||||||
(b) | Management believes that net income (loss) adjusted for the loss on early extinguishment of debt and impairments and other charges is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items. Adjusted net income attributable to company is calculated as: “As reported net income (loss) attributable to company” plus "Total adjustments, net of taxes" for the three months ended March 31, 2020 and December 31, 2020. | |||||||||||||
(c) | For the three months ended March 31, 2020, as reported diluted weighted average common shares outstanding excludes three million shares associated with stock-based compensation plans as the impact is antidilutive since Halliburton's reported income attributable to company was in a loss position during the period. When adjusting income attributable to company in that period for the adjustments discussed above, these shares become dilutive. | |||||||||||||
(d) | As reported net income (loss) per diluted share is calculated as: "As reported net income (loss) attributable to company" divided by "As reported diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Adjusted diluted weighted average common shares outstanding." |
Three Months Ended | ||||||||||||||
March 31 | December 31 | |||||||||||||
2021 | 2020 | 2020 | ||||||||||||
Total cash flows provided by (used in) operating activities | $ | 203 | $ | 225 | $ | 638 | ||||||||
Capital expenditures | (104) | (213) | (218) | |||||||||||
Proceeds from sales of property, plant, and equipment | 58 | 69 | 87 | |||||||||||
Free cash flow (a) | $ | 157 | $ | 81 | $ | 507 | ||||||||
(a) | Beginning in the first quarter of 2021, we are modifying the Free Cash Flow metric, a non-GAAP financial measure, to be calculated as “Total cash flows provided by (used in) operating activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes that Free Cash Flow is a key measure to assess liquidity of the business, and this change improves the comparability of this metric, and is consistent with the disclosures of our direct, large-cap competitors. Prior periods have been updated in accordance with this change. |
HALLIBURTON COMPANY | |||||||||||
Date: | April 21, 2021 | By: | /s/ Bruce A. Metzinger | ||||||||
Bruce A. Metzinger | |||||||||||
Vice President, Public Law and | |||||||||||
Assistant Secretary |
DEI Document |
Apr. 21, 2021 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 21, 2021 |
Entity Registrant Name | HALLIBURTON COMPANY |
Entity Central Index Key | 0000045012 |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, par value $2.50 per share |
Entity File Number | 001-03492 |
Entity Tax Identification Number | 75-2677995 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 3000 North Sam Houston Parkway East |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77032 |
City Area Code | 281 |
Local Phone Number | 871-2699 |
Trading Symbol | HAL |
Security Exchange Name | NYSE |
Written Communications | false |
Amendment Flag | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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