|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3492
|
No.
75-2677995
|
|
(Commission
File Number)
|
(IRS
Employer Identification
No.)
|
|
1401
McKinney, Suite 2400, Houston, Texas
|
77010
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
|
|
|
|
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
|
Item
2.02.
|
Results
of Operations and Financial
Condition
|
|
|
·
|
Landmark
announced a new visual cataloging and tapeless archiving solution
designed
to simplify and accelerate data archival and retrieval. The solution
tightly integrates Landmark’s industry-leading reporting tool Corporate
Data Archiver™ software with the purpose built, software-driven EMC
Centera™ content-addressed storage system to provide instant
retrievability of archived data.
|
|
|
—
|
Halliburton’s
Energy Services Group has been awarded a $59 million contract by
Rosneft-YNG for the provision of hydraulic fracturing services on
the
Right Bank of the Priobskoye field in Siberia. The scope of work
includes providing services for 327 wells. Halliburton will execute
the
project in 2007 from its base in Poikovo,
Nefteyugansk.
|
|
|
—
|
Halliburton’s
Energy Services Group has been awarded a multi-services contract,
valued
at approximately $100 million over three years, by TNK-BP for work
in the
Tyumen region of Russia. The contract also has the option for three
additional one-year periods. The Energy Services Group will be providing
drilling fluids, waste management services, cementing, drill bits,
directional drilling, and logging-while-drilling services for the
Uvat
development, which is expected to begin in the second quarter of
2007.
|
|
|
—
|
Halliburton’s
Drilling and Formation Evaluation segment has entered into a definitive
agreement to acquire all intellectual property, current assets, and
existing wireline services business associated with Calgary-based
Ultraline Services Corporation, a division of Savanna Energy Services
Corp. (TSX: SVY) for approximately $177 million, subject to adjustments
for working capital purposes.
|
|
|
—
|
Sperry
Drilling Services and IntelliServ Inc., a wholly owned subsidiary
of Grant
Prideco (NYSE: GRP), have interfaced their technologies and successfully
tested a system using The IntelliServ® Network drill string telemetry to
transfer data and information generated by downhole drilling and
formation
evaluation tools to the surface in real time, at rates up to 10,000
times
faster than those available today. Halliburton and IntelliServ Inc.
have
entered into an agreement to globally market and deploy their respective
technologies to joint customers.
|
|
|
—
|
Halliburton’s
Production Optimization segment has been awarded a contract by Pemex
valued at $73 million to provide stimulation services in the Bay
of
Campeche, Mexico. The stimulation services to be supplied by Halliburton
are acidizing, acid fracturing, water control, and nitrogen
services.
|
|
|
—
|
KBR
announced that it has closed its initial public offering of 32,016,000
shares of common stock at a price of $17.00 per share. The number of
shares of common stock issued at closing included 4,176,000 shares
for the
underwriters’ over-allotment option. KBR received approximately $508
million of proceeds from the offering, net of underwriting fees and
estimated expenses.
|
|
|
|
Three
Months
Ended
December
31
|
|
Three
Months
Ended
September
30
|
|
|||||
|
|
|
2006
|
|
2005
|
|
2006
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|||
|
Production
Optimization
|
|
$
|
1,454
|
|
$
|
1,153
|
|
$
|
1,418
|
|
|
Fluid
Systems
|
|
|
964
|
|
|
777
|
|
|
928
|
|
|
Drilling
and Formation Evaluation
|
|
|
877
|
|
|
693
|
|
|
845
|
|
|
Digital
and Consulting Solutions
|
|
|
214
|
|
|
225
|
|
|
201
|
|
|
Total
Energy Services Group
|
|
|
3,509
|
|
|
2,848
|
|
|
3,392
|
|
|
Energy
and Chemicals
|
|
|
686
|
|
|
595
|
|
|
601
|
|
|
Government
and Infrastructure
|
|
|
1,821
|
|
|
2,129
|
|
|
1,838
|
|
|
Total
KBR
|
|
|
2,507
|
|
|
2,724
|
|
|
2,439
|
|
|
Total
revenue
|
|
$
|
6,016
|
|
$
|
5,572
|
|
$
|
5,831
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
443
|
|
$
|
294
|
|
$
|
406
|
|
|
Fluid
Systems
|
|
|
209
|
|
|
157
|
|
|
211
|
|
|
Drilling
and Formation Evaluation
|
|
|
230
|
|
|
161
|
|
|
227
|
|
|
Digital
and Consulting Solutions
|
|
|
77
|
|
|
66
|
|
|
62
|
|
|
Total
Energy Services Group
|
|
|
959
|
|
|
678
|
|
|
906
|
|
|
Energy
and Chemicals
|
|
|
59
|
|
|
54
|
|
|
45
|
|
|
Government
and Infrastructure
|
|
|
61
|
|
|
54
|
|
|
53
|
|
|
Total
KBR
|
|
|
120
|
|
|
108
|
|
|
98
|
|
|
General
corporate
|
|
|
(36
|
)
|
|
(20
|
)
|
|
(36
|
)
|
|
Total
operating income
|
|
|
1,043
|
|
|
766
|
|
|
968
|
|
|
Interest
expense
|
|
|
(43
|
)
|
|
(53
|
)
|
|
(42
|
)
|
|
Interest
income
|
|
|
52
|
|
|
26
|
|
|
44
|
|
|
Foreign
currency, net
|
|
|
(10
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
Other,
net
|
|
|
1
|
|
|
(7
|
)
|
|
-
|
|
|
Income
from continuing operations before income taxes and minority
interest
|
|
|
1,043
|
|
|
728
|
|
|
960
|
|
|
Benefit
(provision) for income taxes
|
|
|
(343
|
)
|
|
381
|
|
|
(320
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(33
|
)
|
|
(17
|
)
|
|
(25
|
)
|
|
Income
from continuing operations
|
|
|
667
|
|
|
1,092
|
|
|
615
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
(9
|
)
|
|
10
|
|
|
(4
|
)
|
|
Net
income
|
|
$
|
658
|
|
$
|
1,102
|
|
$
|
611
|
|
|
Basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
0.67
|
|
$
|
1.07
|
|
$
|
0.61
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
-
|
|
|
Net
income
|
|
$
|
0.66
|
|
$
|
1.08
|
|
$
|
0.61
|
|
|
Diluted
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
0.65
|
|
$
|
1.03
|
|
$
|
0.58
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
-
|
|
|
Net
income
|
|
$
|
0.64
|
|
$
|
1.04
|
|
$
|
0.58
|
|
|
Basic
weighted average common shares outstanding
|
|
|
996
|
|
|
1,018
|
|
|
1,011
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
1,030
|
|
|
1,058
|
|
|
1,048
|
|
|
|
|
Years
Ended December 31
|
|
||||
|
|
|
2006
|
|
2005
|
|
||
|
Revenue:
|
|
|
|
|
|
||
|
Production
Optimization
|
|
$
|
5,360
|
|
$
|
3,990
|
|
|
Fluid
Systems
|
|
|
3,598
|
|
|
2,838
|
|
|
Drilling
and Formation Evaluation
|
|
|
3,221
|
|
|
2,552
|
|
|
Digital
and Consulting Solutions
|
|
|
776
|
|
|
720
|
|
|
Total
Energy Services Group
|
|
|
12,955
|
|
|
10,100
|
|
|
Energy
and Chemicals
|
|
|
2,373
|
|
|
2,008
|
|
|
Government
and Infrastructure
|
|
|
7,248
|
|
|
8,132
|
|
|
Total
KBR
|
|
|
9,621
|
|
|
10,140
|
|
|
Total
revenue
|
|
$
|
22,576
|
|
$
|
20,240
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
1,530
|
|
$
|
1,053
|
|
|
Fluid
Systems
|
|
|
795
|
|
|
544
|
|
|
Drilling
and Formation Evaluation
|
|
|
818
|
|
|
536
|
|
|
Digital
and Consulting Solutions
|
|
|
240
|
|
|
146
|
|
|
Total
Energy Services Group
|
|
|
3,383
|
|
|
2,279
|
|
|
Energy
and Chemicals
|
|
|
37
|
|
|
124
|
|
|
Government
and Infrastructure
|
|
|
202
|
|
|
329
|
|
|
Total
KBR
|
|
|
239
|
|
|
453
|
|
|
General
corporate
|
|
|
(138
|
)
|
|
(115
|
)
|
|
Total
operating income
|
|
|
3,484
|
|
|
2,617
|
|
|
Interest
expense
|
|
|
(175
|
)
|
|
(207
|
)
|
|
Interest
income
|
|
|
162
|
|
|
64
|
|
|
Foreign
currency, net
|
|
|
(22
|
)
|
|
(13
|
)
|
|
Other,
net
|
|
|
-
|
|
|
(14
|
)
|
|
Income
from continuing operations before income taxes and minority
interest
|
|
|
3,449
|
|
|
2,447
|
|
|
Provision
for income taxes
|
|
|
(1,144
|
)
|
|
(64
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(33
|
)
|
|
(56
|
)
|
|
Income
from continuing operations
|
|
|
2,272
|
|
|
2,327
|
|
|
Income
from discontinued operations, net
|
|
|
76
|
|
|
31
|
|
|
Net
income
|
|
$
|
2,348
|
|
$
|
2,358
|
|
|
Basic
income per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.24
|
|
$
|
2.31
|
|
|
Income
from discontinued operations, net
|
|
|
0.07
|
|
|
0.03
|
|
|
Net
income
|
|
$
|
2.31
|
|
$
|
2.34
|
|
|
Diluted
income per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.16
|
|
$
|
2.24
|
|
|
Income
from discontinued operations, net
|
|
|
0.07
|
|
|
0.03
|
|
|
Net
income
|
|
$
|
2.23
|
|
$
|
2.27
|
|
|
Basic
weighted average common shares outstanding
|
|
|
1,014
|
|
|
1,010
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
1,054
|
|
|
1,038
|
|
|
Three
Months Ended December 31, 2006
|
|
Halliburton
Consolidated
|
|
KBR,
Inc.
|
|
Consolidating
Adjustments
|
|
ESG
and
Corporate
|
|
||||
|
Revenue:
|
|
|
|
|
|
|
|
|
|
||||
|
Production
Optimization
|
|
$
|
1,454
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,454
|
|
|
Fluid
Systems
|
|
|
964
|
|
|
-
|
|
|
-
|
|
|
964
|
|
|
Drilling
and Formation Evaluation
|
|
|
877
|
|
|
-
|
|
|
-
|
|
|
877
|
|
|
Digital
and Consulting Solutions
|
|
|
214
|
|
|
-
|
|
|
-
|
|
|
214
|
|
|
Total
Energy Services Group
|
|
|
3,509
|
|
|
-
|
|
|
-
|
|
|
3,509
|
|
|
Energy
and Chemicals
|
|
|
686
|
|
|
687
|
|
|
(1
|
)
|
|
-
|
|
|
Government
and Infrastructure
|
|
|
1,821
|
|
|
1,822
|
|
|
(1
|
)
|
|
-
|
|
|
Total
KBR
|
|
|
2,507
|
|
|
2,509
|
|
|
(2
|
)
|
|
-
|
|
|
Total
revenue
|
|
$
|
6,016
|
|
$
|
2,509
|
|
$
|
(2
|
)
|
$
|
3,509
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
443
|
|
$
|
-
|
|
$
|
-
|
|
$
|
443
|
|
|
Fluid
Systems
|
|
|
209
|
|
|
-
|
|
|
-
|
|
|
209
|
|
|
Drilling
and Formation Evaluation
|
|
|
230
|
|
|
-
|
|
|
-
|
|
|
230
|
|
|
Digital
and Consulting Solutions
|
|
|
77
|
|
|
-
|
|
|
-
|
|
|
77
|
|
|
Total
Energy Services Group
|
|
|
959
|
|
|
-
|
|
|
-
|
|
|
959
|
|
|
Energy
and Chemicals
|
|
|
59
|
|
|
59
|
|
|
-
|
|
|
-
|
|
|
Government
and Infrastructure
|
|
|
61
|
|
|
62
|
|
|
(1
|
)
|
|
-
|
|
|
Total
KBR
|
|
|
120
|
|
|
121
|
|
|
(1
|
)
|
|
-
|
|
|
General
corporate
|
|
|
(36
|
)
|
|
-
|
|
|
-
|
|
|
(36
|
)
|
|
Total
operating income
|
|
|
1,043
|
|
|
121
|
|
|
(1
|
)
|
|
923
|
|
|
Interest
income (expense), net
|
|
|
9
|
|
|
14
|
|
|
2
|
|
|
(7
|
)
|
|
Foreign
currency, net
|
|
|
(10
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
Other,
net
|
|
|
1
|
|
|
-
|
|
|
(1
|
)
|
|
2
|
|
|
Income
from continuing operations before income taxes and minority
interest
|
|
|
1,043
|
|
|
133
|
|
|
(1
|
)
|
|
911
|
|
|
Provision
for income taxes
|
|
|
(343
|
)
|
|
(65
|
)
|
|
12
|
|
|
(290
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(33
|
)
|
|
(25
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
Income
from continuing operations
|
|
|
667
|
|
|
43
|
|
|
7
|
|
|
617
|
|
|
Loss
from discontinued operations, net
|
|
|
(9
|
)
|
|
-
|
|
|
-
|
|
|
(9
|
)
|
|
Net
income
|
|
$
|
658
|
|
$
|
43
|
|
$
|
7
|
|
$
|
608
|
|
|
|
|
December
31,
2006
|
|
September
30,
2006
(b)
|
|
December
31,
2005
(b) (c)
|
|
|||
|
Assets
|
|
|||||||||
|
Current
assets:
|
|
|
|
|
|
|
|
|||
|
Cash
and equivalents
|
|
$
|
4,379
|
|
$
|
3,549
|
|
$
|
2,391
|
|
|
Receivables,
net
|
|
|
4,674
|
|
|
4,617
|
|
|
4,801
|
|
|
Inventories,
net
|
|
|
1,261
|
|
|
1,213
|
|
|
953
|
|
|
Other
current assets
|
|
|
869
|
|
|
916
|
|
|
1,241
|
|
|
Total
current assets
|
|
|
11,183
|
|
|
10,295
|
|
|
9,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property,
plant, and equipment, net
|
|
|
3,048
|
|
|
2,884
|
|
|
2,648
|
|
|
Other
assets
|
|
|
2,589
|
|
|
2,848
|
|
|
3,014
|
|
|
Total
assets (a)
|
|
$
|
16,820
|
|
$
|
16,027
|
|
$
|
15,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders’ Equity
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,931
|
|
$
|
1,871
|
|
$
|
1,967
|
|
|
Current
maturities of long-term debt
|
|
|
45
|
|
|
86
|
|
|
361
|
|
|
Other
current liabilities
|
|
|
2,751
|
|
|
2,745
|
|
|
2,099
|
|
|
Total
current liabilities
|
|
|
4,727
|
|
|
4,702
|
|
|
4,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,786
|
|
|
2,745
|
|
|
2,813
|
|
|
Other
liabilities
|
|
|
1,484
|
|
|
1,345
|
|
|
1,291
|
|
|
Total
liabilities (a)
|
|
|
8,997
|
|
|
8,792
|
|
|
8,531
|
|
|
Minority
interest in consolidated subsidiaries (a)
|
|
|
447
|
|
|
146
|
|
|
145
|
|
|
Shareholders’
equity (a)
|
|
|
7,376
|
|
|
7,089
|
|
|
6,372
|
|
|
Total
liabilities and shareholders’ equity
|
|
$
|
16,820
|
|
$
|
16,027
|
|
$
|
15,048
|
|
|
(a)
|
In
the fourth quarter of 2006, the company adopted Statement of Financial
Accounting Standards No. 158 (SFAS No. 158), “Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans, an amendment
of
FASB Statements No. 87, 88, 106, and 132(R).” The adoption of
SFAS No. 158 impacted the balance sheet at December 31, 2006 as
follows: a decrease to total assets of $235 million, an increase to
total liabilities of $110 million, a decrease to minority interest
of $98
million, and a decrease to shareholders’ equity of $247
million.
|
|
(b)
|
Certain
prior period amounts have been reclassified to be consistent with
the
current presentation.
|
|
(c)
|
All
periods presented reflect the reclassification of KBR’s Production
Services operations, which were sold during the second quarter of
2006, to
discontinued operations. At December 31, 2005, Production Services
assets
were $207 million, of which $140 million were classified as current,
and
liabilities were $64 million, of which $54 million were classified
as
current.
|
|
|
|
Three
Months Ended
December
31
|
|
Years
Ended
December
31
|
|
||||||||
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
||||
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
||||
|
Energy
Services Group
|
|
$
|
265
|
|
$
|
151
|
|
$
|
831
|
|
$
|
575
|
|
|
KBR
|
|
|
7
|
|
|
26
|
|
|
57
|
|
|
76
|
|
|
General
corporate
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
Total
capital expenditures
|
|
$
|
272
|
|
$
|
177
|
|
$
|
891
|
|
$
|
651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Services Group
|
|
$
|
124
|
|
$
|
115
|
|
$
|
480
|
|
$
|
448
|
|
|
KBR
|
|
|
15
|
|
|
12
|
|
|
47
|
|
|
56
|
|
|
Total
depreciation, depletion, and amortization
|
|
$
|
139
|
|
$
|
127
|
|
$
|
527
|
|
$
|
504
|
|
|
|
|
Three
Months Ended
December
31
|
|
Three
Months Ended
September
30
|
|
|||||
|
|
|
2006
|
|
2005
|
|
2006
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|||
|
North
America
|
|
$
|
1,666
|
|
$
|
1,353
|
|
$
|
1,738
|
|
|
Latin
America
|
|
|
418
|
|
|
373
|
|
|
390
|
|
|
Europe/Africa/CIS
|
|
|
821
|
|
|
631
|
|
|
708
|
|
|
Middle
East/Asia
|
|
|
604
|
|
|
491
|
|
|
556
|
|
|
Total
revenue
|
|
$
|
3,509
|
|
$
|
2,848
|
|
$
|
3,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
525
|
|
$
|
387
|
|
$
|
558
|
|
|
Latin
America
|
|
|
92
|
|
|
67
|
|
|
79
|
|
|
Europe/Africa/CIS
|
|
|
205
|
|
|
119
|
|
|
132
|
|
|
Middle
East/Asia
|
|
|
137
|
|
|
105
|
|
|
137
|
|
|
Total
operating income
|
|
$
|
959
|
|
$
|
678
|
|
$
|
906
|
|
|
|
|
Years
Ended
December
31
|
|
||||
|
|
|
2006
|
|
2005
|
|
||
|
Revenue:
|
|
|
|
|
|
||
|
North
America
|
|
$
|
6,458
|
|
$
|
4,819
|
|
|
Latin
America
|
|
|
1,514
|
|
|
1,344
|
|
|
Europe/Africa/CIS
|
|
|
2,798
|
|
|
2,248
|
|
|
Middle
East/Asia
|
|
|
2,185
|
|
|
1,689
|
|
|
Total
revenue
|
|
$
|
12,955
|
|
$
|
10,100
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
2,033
|
|
$
|
1,376
|
|
|
Latin
America
|
|
|
289
|
|
|
192
|
|
|
Europe/Africa/CIS
|
|
|
555
|
|
|
387
|
|
|
Middle
East/Asia
|
|
|
506
|
|
|
324
|
|
|
Total
operating income
|
|
$
|
3,383
|
|
$
|
2,279
|
|
|
|
|
Production
Optimization
|
|
Fluid
Systems
|
|
Drilling
and
Formation
Evaluation
|
|
Digital
and
Consulting
Solutions
|
|
Total
Energy
Services
Group
|
|
|||||
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
December
31, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Revenue
|
|
$
|
1,454
|
|
$
|
964
|
|
$
|
877
|
|
$
|
214
|
|
$
|
3,509
|
|
|
As
reported operating income
|
|
$
|
443
|
|
$
|
209
|
|
$
|
230
|
|
$
|
77
|
|
$
|
959
|
|
|
Gain
on sale of lift boats (a)
|
|
|
(48
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(48
|
)
|
|
Adjusted
operating income
|
|
$
|
395
|
|
$
|
209
|
|
$
|
230
|
|
$
|
77
|
|
$
|
911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported operating margin (b)
|
|
|
30.5
|
%
|
|
21.7
|
%
|
|
26.2
|
%
|
|
36.0
|
%
|
|
27.3
|
%
|
|
Adjusted
operating margin (b)
|
|
|
27.2
|
%
|
|
21.7
|
%
|
|
26.2
|
%
|
|
36.0
|
%
|
|
26.0
|
%
|
|
(a)
|
The
company is reporting strong operating income from the Energy Services
Group, particularly the Production Optimization segment. Management
believes it is important to point out to investors that a portion
of
operating income and operating margins growth is attributable to
the gain
on the sale of lift boats in the fourth quarter of 2006, because
investors
have indicated to management their desire to understand the current
drivers and future trends of the operating margins. The adjustment
removes
the effect of the gain on the sale of lift boats.
|
|
(b)
|
As
reported operating margin is calculated as: “As reported operating income”
divided by “Revenue.” Adjusted operating margin is calculated as:
“Adjusted operating income” divided by
“Revenue.”
|
|
|
|
Income
from
Continuing
Operations
before
Income
Taxes
and
Minority
Interest
|
|
Benefit
(Provision)
For
Income
Taxes
|
|
Minority
Interest
in
Net
Income
of
Subsidiaries
|
|
Income
from
Continuing
Operations
|
|
Effective
Tax
Rate
|
|
Income
from
Continuing
Operations
per
Diluted
Share
|
|
||||||
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December
31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
As
reported results
|
|
$
|
728
|
|
$
|
381
|
|
$
|
(17
|
)
|
$
|
1,092
|
|
|
(52
|
)%
|
$
|
1.03
|
|
|
Valuation
allowance adjustment (a)
|
|
|
-
|
|
|
(540
|
)
|
|
-
|
|
|
(540
|
)
|
|
-
|
|
|
(0.51
|
)
|
|
Adjusted
results
|
|
$
|
728
|
|
$
|
(159
|
)
|
$
|
(17
|
)
|
$
|
552
|
|
|
22
|
%
|
$
|
0.52
|
|
|
(a)
|
In
the fourth quarter of 2005, the company reported strong income from
continuing operations, and management believes it is important to
point
out to investors that a portion of the income from continuing operations
was attributable, based on the strong outlook for 2006 and beyond,
to the
reversal of a substantial portion of the deferred tax valuation allowance
originally established as part of the asbestos and silica settlement.
Investors have indicated to management their desire to understand
the
current drivers and future trends of
results.
|
|
|
|
Three
Months Ended
December
31, 2006
|
|
Three
Months Ended
December
31, 2005
|
|
Three
Months Ended
September
30, 2006
|
|
||||||||||||
|
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
||||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gain
on sale of lift boats
|
|
$
|
48
|
|
$
|
0.03
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
Drilling
and Formation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
24
|
|
|
0.02
|
|
|
-
|
|
|
-
|
|
|
Government
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad
impairment charge
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(32
|
)
|
|
(0.03
|
)
|
|
|
|
Year
Ended
December
31, 2006
|
|
Year
Ended
December
31, 2005
|
|
||||||||
|
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
||||
|
Gain
on sale of lift boats
|
|
$
|
48
|
|
$
|
0.03
|
|
$
|
-
|
|
$
|
-
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
-
|
|
|
-
|
|
|
110
|
|
|
0.08
|
|
|
Drilling
and Formation Evaluation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
24
|
|
|
0.02
|
|
|
Government
and Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Railroad
impairment charge
|
|
|
(58
|
)
|
|
(0.06
|
)
|
|
-
|
|
|
-
|
|
|
Sale
of interest in toll road
|
|
|
-
|
|
|
-
|
|
|
85
|
|
|
0.06
|
|
|
|
|
Three
Months Ended
December
31, 2006
|
|
Three
Months Ended
December
31, 2005
|
|
||||||||
|
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
||||
|
Patent
settlement
|
|
$
|
-
|
|
$
|
-
|
|
$
|
12
|
|
$
|
0.01
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on sale of lift boats
|
|
|
48
|
|
|
0.03
|
|
|
-
|
|
|
-
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
0.01
|
|
|
Middle
East/Asia:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
|
|
Year
Ended
December
31, 2006
|
|
Year
Ended
December
31, 2005
|
|
||||||||
|
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
Operating
Income
|
|
After
Tax
per
Share
|
|
||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
||||
|
Patent
settlement
|
|
$
|
-
|
|
$
|
-
|
|
$
|
12
|
|
$
|
0.01
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
-
|
|
|
-
|
|
|
107
|
|
|
0.08
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on sale of lift boats
|
|
|
48
|
|
|
0.03
|
|
|
-
|
|
|
-
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
0.01
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
Middle
East/Asia:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
|
|
HALLIBURTON
COMPANY
|
|
|
|
|
|
|
|
|
|
Date:
January 26, 2007
|
By:
|
/s/
Bruce A. Metzinger
|
|
|
|
Bruce
A. Metzinger
|
|
|
|
Assistant
Secretary
|