SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
January 29, 2004
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
1401 McKinney, Suite 2400
Houston, Texas 77010
(Address of principal executive offices)
Registrant's telephone number,
including area code - 713-759-2600
INFORMATION TO BE INCLUDED IN REPORT
Item 12. Disclosure of Results of Operations and Financial Condition
On January 29, 2004 registrant issued a press release entitled
"Halliburton Announces Fourth Quarter Results."
HALLIBURTON ANNOUNCES FOURTH QUARTER RESULTS
$0.34 per diluted share income from continuing operations
HOUSTON - Halliburton (NYSE:HAL) announced today that fourth quarter 2003 income
from continuing operations was $146 million, or $0.34 per diluted share. The net
loss for the quarter was $947 million, or $2.17 per diluted share, and included
a net loss from discontinued operations for the proposed asbestos and silica
settlement of $1.1 billion, or $2.51 per diluted share.
Revenues were $5.5 billion in the fourth quarter 2003, up 63% from the fourth
quarter 2002. This increase was largely attributable to additional activity on
government services projects in the Middle East in the Engineering and
Construction Group (known as KBR).
Operating income was $303 million in the fourth quarter 2003 compared to a $21
million loss in the fourth quarter 2002. Fourth quarter 2002 results included a
$234 million loss related to the proposed asbestos and silica settlement and $29
million in restructuring charges.
"I am pleased with the overall improvements in our financial performance as both
KBR and the Energy Services Group ("ESG") delivered solid operating results for
the 2003 fourth quarter," said Dave Lesar, chairman, president and chief
executive officer of Halliburton. "The fourth quarter was also strategically
significant as we took a major step toward resolving our asbestos and silica
liability, and we continued to perform well for our customers in Iraq. In ESG,
we benefited from increased oilfield activity in the United States and Canada,
and from improved competitive position in international markets such as Norway,
Mexico, the Middle East, and Algeria. Looking ahead to 2004, customer spending
is expected to accelerate over the course of the year, although our first
quarter results are expected to be affected by normal seasonal softness."
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Proposed Asbestos and Silica Settlement
In December 2003, as part of the previously announced plan to resolve its
asbestos and silica liabilities through a prepackaged bankruptcy, the company's
DII Industries, Kellogg Brown & Root, Inc. and other affected subsidiaries filed
Chapter 11 proceedings in bankruptcy court in Pittsburgh, Pennsylvania. As a
result of the Chapter 11 proceedings, the company adjusted its asbestos and
silica liability to reflect the full amount of the proposed settlement, which
together with related expenses resulted in a before and after-tax charge of $1.1
billion in the fourth quarter 2003. The tax effect on this charge was minimal,
as a valuation allowance was established for the net operating loss carryforward
created by the charge.
2003 Fourth Quarter Segment Results
Energy Services Group
ESG posted fourth quarter 2003 revenues of $1.8 billion, an $85 million increase
over the fourth quarter 2002, and operating income of $241 million, up $42
million for the same period in the prior year.
Drilling and Formation Evaluation revenues for the fourth quarter 2003 were $417
million, essentially flat from the fourth quarter 2002. The first quarter 2003
sale of Mono Pumps negatively impacted revenue comparisons between the fourth
quarter of 2003 and the fourth quarter of 2002 by $20 million. Latin America
revenues increased $9 million due to new contracts for logging services in
Mexico and the introduction of our rotary steerables in Brazil. Revenues in the
North America and Middle East/Asia regions increased modestly. However, the Mono
Pumps sale, a 6% decrease in rig count, and the completion of certain logging
contracts in West Africa contributed to a $13 million decline in revenues for
the Europe/Africa region. Operating income of $17 million represented a 62%
decrease compared to the fourth quarter 2002. This primarily reflects a decline
in offshore activity by key customers. Also, the fourth quarter of 2003 included
$8 million of expenses related to the consolidation of two drill bit
manufacturing facilities in the Woodlands, Texas announced last quarter and
severance cost for the drill bit and directional drilling businesses in the
United States and Western Europe, consistent with reduced activity in these
markets.
Fluids revenues for the fourth quarter 2003 were $531 million, a 15% increase
over the fourth quarter 2002. The increase was driven by a $22 million increase
in United States cementing services due to higher land rig count, a $15 million
increase in drilling fluid revenues on new contract awards in Mexico, and an $11
million increase in drilling fluid revenues attributed to the start-up of a
majority-owned drilling fluids joint venture in Algeria. Revenues were up in
each geographic region. Fluids operating income for the fourth quarter 2003 was
$73 million, a $25 million increase from the fourth quarter of 2002. The
majority of the increase in operating income was attributable to the increase in
revenues, as well as Nigeria charges incurred in the fourth quarter of 2002
which adversely impacted operating income in that period.
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Production Optimization revenues for the fourth quarter 2003 were $714 million,
a 9% increase over the fourth quarter 2002. North America revenues improved 14%
over fourth quarter 2002 on increased rig activity. Internationally, revenues
were up in the Latin America and Middle East/Asia regions, while down 5% in the
Europe/Africa region. The sale of Halliburton Measurement Systems in the second
quarter 2003 negatively impacted revenue comparisons by $9 million. Production
Optimization operating income for the fourth quarter 2003 was $116 million, a
26% increase over the fourth quarter 2002. Improved international activity
levels, as well as a more favorable sales mix in completion products and sand
control services, drove the majority of the increase in operating income. The
improvement in operating income from production enhancement services and
completion products and services more than offset the $11 million in equity
losses from the Subsea 7 joint venture.
Landmark and Other Energy Services revenues for the fourth quarter 2003 were
$137 million, a decrease of $48 million from the fourth quarter 2002. The
reduction of revenues was attributable to the sale of Wellstream in the first
quarter 2003 and lower customer information technology spending. Landmark and
Other Energy Services fourth quarter 2003 operating income was $35 million,
compared to $14 million in the fourth quarter 2002. Fourth quarter 2002 segment
operating income included $17 million in restructuring charges. Although
Landmark Graphics revenues and operating income were down 7% and 4%,
respectively, as compared to the fourth quarter 2002, for the year 2003,
Landmark Graphics recorded their highest level of operating income, an 18%
improvement over 2002 and the highest operating margins since the company
acquired it.
KBR
KBR revenues for the fourth quarter 2003 were $3.7 billion, more than double its
revenues in the fourth quarter 2002. The improvement was mostly due to increased
government related activities in the Middle East, and to a lesser extent,
revenues from oil and gas projects in Algeria, a hydrocarbon plant in Belgium,
and increased activities in the Devonport Management Limited (DML) shipyard.
Partially offsetting the increases were lower revenues from the
Barracuda-Caratinga project in Brazil, an offshore project in Indonesia, an oil
project in Western Africa nearing completion, and lower activities on operations
and maintenance projects. KBR operating income for the fourth quarter 2003 was
$82 million, compared to a $189 million loss in the fourth quarter 2002.
Included in the fourth quarter 2002 loss was a $234 million charge related to
the proposed asbestos and silica settlement. Fourth quarter 2003 operating
results included increased operating income on government services operations in
the Middle East and an $18 million benefit from better than expected insurance
loss experience.
Total company revenue and operating income from Iraq-related work in the fourth
quarter 2003 were $2.2 billion and $44 million, respectively. Iraq-related work
contributed $0.06 per diluted share of earnings after tax.
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Backlog
KBR backlog at December 31, 2003 was $9.7 billion, down $100 million from
September 30, 2003. Approximately 26% of the backlog was for fixed fee
contracts, compared to 31% at September 30, 2003. Of the fixed fee contract
backlog, 40% of the total related to onshore contracts, 29% related to
government services contracts and 18% related to offshore contracts. Firm orders
were $8.6 billion at the end of the quarter. The remainder of the backlog
primarily related to government awards not yet funded. In addition, subsequent
to year-end, KBR was awarded two new contracts: CENTCOM, with a contract value
up to $1.5 billion, and RIO continuation, with a contract value up to $1.2
billion, which were not included in the year-end backlog.
Technology and Significant Achievements
Halliburton had a number of advances in technology and new contract awards.
KBR new contract awards:
o KBR was awarded the contract to continue its operations for the Restore
Iraqi Oil program in the southern section of Iraq by the United States
Army Corps of Engineers. The contract has a value of up to $1.2 billion
over two years, with three one-year optional extensions. The contract
will cover a full range of services, including extinguishing oil well
fires; environmental assessments and cleanup at oil sites; oil
infrastructure condition assessments; engineering design and
construction necessary to restore the infrastructure to a safe
operating condition; oilfield, pipeline and refinery maintenance;
procurement and importation of fuel products; distribution of fuel
products within Iraq; technical assistance in marketing and
sales/export; and technical assistance and consulting services to the
Iraqi oil companies.
o KBR was awarded a contract for up to $1.5 billion over five years by
the United States Army Corps of Engineers to support United States
military operations, other federal agencies and friendly governments
anywhere in the United States Central Command's area of operations, a
25-country region extending from the Horn of Africa to Central Asia.
o KBR was awarded a five-year integrated support contract by
ChevronTexaco to supply operations, maintenance and engineering support
on the Alba, Captain and Erskine production facilities in the North
Sea.
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Energy Services Group new technologies and contracts:
o Halliburton was awarded a five-year contract, valued at $25 million,
from the Department of Petroleum Resources in Nigeria. The contract
calls for the design, development and operation of a National Data
Repository using Landmark Graphics' PetroBank technology, among the
most advanced multi-client data management systems in the E&P industry.
This represents the seventh National Data Repository, with others in
Pakistan, Kazakhstan, UK, Brazil, Norway and Indonesia.
o Halliburton added four technologies to its suite of production
optimization services: Reservoir Performance Monitoring (RPM);
DepthStar(TM)tubing retrievable safety valve; WaterWeb(SM) technology;
and SilverStim(TM) LT fracturing fluid system. RPM provides
high-reliability, permanent downhole monitoring solutions focused on
optimizing production, maximizing reserves and maintaining completions
integrity. The DepthStar valve is a revolutionary concept in the realm
of surface controlled subsurface safety valves which function
completely independent of well pressure. WaterWeb service is based on
relative permeability modifier technology and is the result of an
ongoing research and development program to help operators control
the production of unwanted water. SilverStim LT fracturing service
results in a step change in how fracturing fluids are used and applied
in the field.
o Halliburton recently performed a record-breaking deepwater well test
operation for Statoil at the Ellida structure in the Norwegian Sea. The
test, performed from the dynamically positioned drill ship, West
Navigator, at a water depth of more than 1,200 meters, is the first
well test performed at such a water depth off the Norwegian coast.
o Halliburton successfully implemented a customized, Linux-based data and
applications hosting system for Unocal's Deepwater Group in Jakarta,
Indonesia. Landmark Graphics implemented the system in July 2003 and
will provide management, maintenance and on-site application support
over a three-year period.
o Halliburton developed a high-performance alternative to synthetic-based
drilling fluids with its new PerformaDril(TM) water-based fluid system.
The PerformaDril water-based system was used to drill highly reactive
smectite and mixed layer clays on a North Sea well in the Kristin
field. Where zero discharge regulations apply to the use of
synthetic-based fluids, the excellent inhibition and drilling
performance demonstrated by the system provide another option for
achieving wellbore stability.
Halliburton, founded in 1919, is one of the world's largest providers of
products and services to the petroleum and energy industries. The company serves
its customers with a broad range of products and services through its Energy
Services and Engineering and Construction Groups. The company's World Wide Web
site can be accessed at www.halliburton.com.
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NOTE: The statements in this press release that are not historical statements,
including statements regarding future financial performance, are forward-looking
statements within the meaning of the federal securities laws. These statements
are subject to numerous risks and uncertainties, many of which are beyond the
company's control, which could cause actual results to differ materially from
the results expressed or implied by the statements. These risks and
uncertainties include, but are not limited to: legal risks, including the risks
of being unable to complete the proposed settlement of asbestos and silica
liabilities, the risks of having material subsidiaries in Chapter 11
proceedings, the risks of audits and investigations of the company by domestic
and foreign government agencies and legislative bodies, the risks of judgments
against the company's subsidiaries and predecessors in asbestos litigation
pending and currently on appeal, the inability of insurers for asbestos
exposures to pay claims or a delay in the payment of such claims, future
asbestos claims defense and settlement costs, the risks of judgments against the
company and its subsidiaries in other litigation and proceedings, including
shareholder lawsuits, securities laws inquiries, contract disputes, patent
infringements and environmental matters, legislation, changes in government
regulations and adverse reaction to scrutiny involving the company; political
risks, including the risks of unsettled political conditions, war and the
effects of terrorism, foreign operations and foreign exchange rates and
controls; liquidity risks, including the risks of potential reductions in debt
ratings, access to credit, availability and costs of financing and ability to
raise capital; weather-related risks; customer risks, including the risks of
changes in capital spending and claims negotiations; industry risks, including
the risks of changes that affect the demand for or price of oil and/or gas,
structural changes in the industries in which the company operates, risks of
fixed-fee projects and risks of complex business arrangements; systems risks,
including the risks of successful development and installation of financial
systems; and personnel and merger/reorganization/disposition risks, including
the risks of increased competition for employees, successful integration of
acquired businesses, effective restructuring efforts and successful completion
of planned dispositions. Please see Halliburton's Form 10-K for the year ended
December 31, 2002, as amended by Form 10-K/A filed on January 15, 2004, Form
10-Q for the quarter ended September 30, 2003 and Forms 8-K filed on October 28,
2003 and January 23, 2004 for a more complete discussion of such risk factors.
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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Three Months Three Months
Ended Ended
December 31 September 30
--------------------------------------------------------------
2003 2002 2003
--------------------------------------------------------------------------------------------------------------------------
Revenues
Drilling and Formation Evaluation $ 417 $ 413 $ 433
Fluids 531 463 510
Production Optimization 714 653 730
Landmark and Other Energy Services 137 185 132
--------------------------------------------------------------------------------------------------------------------------
Total Energy Services Group 1,799 1,714 1,805
Engineering and Construction Group 3,665 1,634 2,343
--------------------------------------------------------------------------------------------------------------------------
Total revenues $ 5,464 $ 3,348 $ 4,148
--------------------------------------------------------------------------------------------------------------------------
Operating income (loss)
Drilling and Formation Evaluation $ 17 $ 45 $ 45
Fluids 73 48 55
Production Optimization 116 92 122
Landmark and Other Energy Services 35 14 (52)
--------------------------------------------------------------------------------------------------------------------------
Total Energy Services Group 241 199 170
Engineering and Construction Group 82 (189) 49
General corporate (20) (31) (15)
--------------------------------------------------------------------------------------------------------------------------
Total operating income (loss) $ 303 $ (21) $ 204
--------------------------------------------------------------------------------------------------------------------------
Interest expense (54) (22) (33)
Interest income 8 8 7
Foreign currency, net 4 (13) (17)
Other nonoperating, net (1) (12) -
--------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations before
income taxes and minority interest 260 (60) 161
Provision for income taxes (92) (49) (63)
Minority interest in net income of subsidiaries (22) (23) (6)
--------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations 146 (132) 92
Loss from discontinued operations, net (1,093) (484) (34)
--------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (947) $ (616) $ 58
==========================================================================================================================
Basic income (loss) per share:
Income (loss) from continuing operations $ 0.34 $ (0.30) $ 0.21
Loss from discontinued operations, net (2.52) (1.12) (0.08)
--------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (2.18) $ (1.42) $ 0.13
==========================================================================================================================
Diluted income (loss) per share:
Income (loss) from continuing operations $ 0.34 $ (0.30) $ 0.21
Loss from discontinued operations, net (2.51) (1.12) (0.08)
--------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (2.17) $ (1.42) $ 0.13
==========================================================================================================================
Basic weighted average common shares outstanding 435 433 435
Diluted weighted average common shares outstanding 438 433 437
See Footnote Table 1 for a list of significant items included in operating
income.
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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Twelve Months Ended
December 31
---------------------------------------------
2003 2002
--------------------------------------------------------------------------------------------------------
Revenues
Drilling and Formation Evaluation $ 1,643 $ 1,633
Fluids 2,039 1,815
Production Optimization 2,766 2,554
Landmark and Other Energy Services 547 834
--------------------------------------------------------------------------------------------------------
Total Energy Services Group 6,995 6,836
Engineering and Construction Group 9,276 5,736
--------------------------------------------------------------------------------------------------------
Total revenues $ 16,271 $ 12,572
--------------------------------------------------------------------------------------------------------
Operating income (loss)
Drilling and Formation Evaluation $ 177 $ 160
Fluids 251 202
Production Optimization 421 384
Landmark and Other Energy Services (23) (108)
--------------------------------------------------------------------------------------------------------
Total Energy Services Group 826 638
Engineering and Construction Group (36) (685)
General corporate (70) (65)
--------------------------------------------------------------------------------------------------------
Total operating income (loss) $ 720 $ (112)
--------------------------------------------------------------------------------------------------------
Interest expense (139) (113)
Interest income 30 32
Foreign currency, net - (25)
Other nonoperating, net 1 (10)
--------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations before
income taxes, minority interest and
change in accounting principle 612 (228)
Provision for income taxes (234) (80)
Minority interest in net income of subsidiaries (39) (38)
--------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations
before change in accounting principle 339 (346)
Loss from discontinued operations, net (1,151) (652)
Cumulative effect of change in accounting
principle, net (8) -
--------------------------------------------------------------------------------------------------------
Net loss $ (820) $ (998)
========================================================================================================
Basic income (loss) per share:
Income (loss) from continuing operations before
change in accounting principle $ 0.78 $ (0.80)
Loss from discontinued operations, net (2.65) (1.51)
Change in accounting principle, net (0.02) -
--------------------------------------------------------------------------------------------------------
Net loss $ (1.89) $ (2.31)
========================================================================================================
Diluted income (loss) per share:
Income (loss) from continuing operations before
change in accounting principle $ 0.78 $ (0.80)
Loss from discontinued operations, net (2.64) (1.51)
Change in accounting principle, net (0.02) -
--------------------------------------------------------------------------------------------------------
Net loss $ (1.88) $ (2.31)
========================================================================================================
Basic weighted average common shares outstanding 434 432
Diluted weighted average common shares outstanding 437 432
See Footnote Table 1 for a list of significant items included in operating
income.
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HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
December 31 December 31 September 30
-----------------------------------------------------------
2003 2002 2003
------------------------------------------------------------------------------------------------------------------
Assets
Current assets:
Cash and equivalents $ 1,815 $ 1,107 $ 1,222
Total receivables, net 4,765 3,257 4,000
Inventories 695 734 731
Other current assets 644 462 666
------------------------------------------------------------------------------------------------------------------
Total current assets 7,919 5,560 6,619
Property, plant and equipment, net 2,526 2,629 2,504
Insurance for asbestos and silica related liabilities 2,045 2,059 2,061
Other assets 2,981 2,596 2,592
------------------------------------------------------------------------------------------------------------------
Total assets $ 15,471 $ 12,844 $ 13,776
==================================================================================================================
Liabilities and Shareholders' Equity
Current liabilities:
Short-term notes payable $ 18 $ 49 $ 23
Current maturities of long-term debt 22 295 21
Accounts payable 1,776 1,077 979
Current asbestos and silica related liabilities 2,463 - -
Other current liabilities 2,213 1,851 2,071
------------------------------------------------------------------------------------------------------------------
Total current liabilities 6,492 3,272 3,094
Long-term debt 3,415 1,181 2,368
Asbestos and silica related liabilities 1,637 3,425 3,387
Other liabilities 1,280 1,337 1,260
Minority interest in consolidated subsidiaries 100 71 90
------------------------------------------------------------------------------------------------------------------
Total liabilities 12,924 9,286 10,199
==================================================================================================================
Total shareholders' equity 2,547 3,558 3,577
------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 15,471 $ 12,844 $ 13,776
==================================================================================================================
Note: These Condensed Consolidated Balance Sheets do not include a breakout of
prepetition liabilities. This information will be provided in our 2003
annual report on Form 10-K.
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TABLE 1
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Geographic Region - Energy Services Group Only
(Millions of dollars)
(Unaudited)
Three Months Ended Three Months Ended
December 31 September 30
------------------------------------------------------------
2003 2002 2003
----------------------------------------------------------------------------------------------------
Revenues
North America $ 787 $ 732 $ 791
Latin America 255 218 244
Europe / Africa 350 381 356
Middle East / Asia 407 383 414
----------------------------------------------------------------------------------------------------
Total revenues $ 1,799 $ 1,714 $ 1,805
====================================================================================================
Operating Income
North America $ 100 $ 75 $ 31
Latin America 48 24 51
Europe / Africa 36 39 28
Middle East / Asia 57 61 60
----------------------------------------------------------------------------------------------------
Total operating income $ 241 $ 199 $ 170
====================================================================================================
Twelve Months Ended
December 31
-----------------------------------
2003 2002
-----------------------------------------------------------------------------
Revenues
North America $ 3,085 $ 3,031
Latin America 907 846
Europe / Africa 1,442 1,578
Middle East / Asia 1,561 1,381
-----------------------------------------------------------------------------
Total revenues $ 6,995 $ 6,836
=============================================================================
Operating Income
North America $ 306 $ 199
Latin America 165 108
Europe / Africa 147 178
Middle East / Asia 208 153
-----------------------------------------------------------------------------
Total operating income $ 826 $ 638
=============================================================================
See Footnote Table 2 for a list of significant items included in operating
income.
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FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Items Included in Operating Income by Operating Segment
(Millions of dollars except per share data)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended
December 31 December 31 September 30
2003 2002 2003
----------------------- ------------------------- ------------------------
Operating After Tax Operating After Tax Operating After Tax
Income per Share Income per Share Income per Share
----------------------- ------------------------- ------------------------
Landmark and Other
Energy Services:
Anglo-Dutch lawsuit $ - $ - $ - $ - $ (77) $ (0.11)
Restructuring charge - - (17) (0.02) - -
Engineering and
Construction Group:
Asbestos and silica
liability (2) - (234) (0.49) (1) -
Restructuring charge - - (2) - - -
Barracuda-Caratinga
project loss (10) (0.01) 2 - - -
General corporate:
Restructuring charge - - (10) (0.01) - -
Insurance company
demutualization - - 1 - - -
Twelve Months Ended Twelve Months Ended
December 31 December 31
2003 2002
---------------------------- ------------------------------
Operating After Tax Operating After Tax
Income per Share Income per Share
---------------------------- ------------------------------
Drilling and Formation Evaluation:
Mono Pumps gain on sale $ 36 $ 0.05 $ - $ -
Production Optimization:
HMS gain on sale 24 0.03 - -
Landmark and Other Energy Services:
Anglo-Dutch lawsuit (77) (0.11) - -
Wellstream loss on sale (15) (0.03) - -
EMC gain on sale - - 108 0.15
Patent infringement lawsuit accrual - - (98) (0.14)
Restructuring charge - - (64) (0.09)
Bredero-Shaw impairment - - (61) (0.14)
Bredero-Shaw loss on sale - - (18) (0.04)
Engineering and Construction Group:
Asbestos and silica liability (5) (0.01) (564) (1.11)
Barracuda-Caratinga project loss (238) (0.33) (117) (0.17)
Highlands receivable write-off - - (80) (0.11)
Restructuring charge - - (18) (0.02)
General corporate:
Insurance company demutualization - - 29 0.04
Restructuring charge - - (25) (0.04)
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FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Items Included in Operating Income
By Geographic Region - Energy Services Group Only
(Millions of dollars except per share data)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended
December 31 December 31 September 30
2003 2002 2003
------------------------- ------------------------ ------------------------
Operating After Tax Operating After Tax Operating After Tax
Income per Share Income per Share Income per Share
------------------------- ------------------------ ------------------------
North America:
Anglo-Dutch lawsuit $ - $ - $ - $ - $ (77) $ (0.11)
Restructuring charge - - (13) (0.02) - -
Europe / Africa:
Restructuring charge - - (4) (0.01) - -
Twelve Months Ended Twelve Months Ended
December 31 December 31
2003 2002
---------------------------- -----------------------------
Operating After Tax Operating After Tax
Income per Share Income per Share
---------------------------- -----------------------------
North America:
Anglo-Dutch lawsuit $ (77) $ (0.11) $ - $ -
Mono Pumps gain on sale 24 0.03 - -
Wellstream loss on sale (11) (0.02) - -
HMS gain on sale 24 0.03 - -
Patent infringement lawsuit accrual - - (98) (0.14)
Restructuring charge - - (51) (0.07)
Bredero-Shaw impairment - - (61) (0.14)
Bredero-Shaw loss on sale - - (18) (0.04)
Latin America:
Restructuring charge - - (3) -
Europe / Africa:
Mono Pumps gain on sale 12 0.02 - -
Wellstream loss on sale (4) (0.01) - -
EMC gain on sale - - 108 0.15
Restructuring charge - - (7) (0.01)
Middle East / Asia:
Restructuring charge - - (3) -
###
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: January 29, 2004 By: /s/ Margaret E. Carriere
----------------------------
Margaret E. Carriere
Vice President and Secretary