UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20212022
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
(Exact name of registrant as specified in its charter)
Delaware75-2677995
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
3000 North Sam Houston Parkway East,Houston,Texas77032
(Address of principal executive offices)(Zip Code)
(281) 871-2699
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $2.50 per shareHALNew York Stock Exchange

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 No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).                                 Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large Accelerated FilerAccelerated Filer
 Non-accelerated FilerSmaller Reporting Company
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No
As of OctoberJuly 15, 2021,2022, there were 895,116,136906,944,331 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.



HALLIBURTON COMPANY

Index
  Page No.
   
 
 
 
 
 
   
   
   
   
 



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30
Nine Months Ended
September 30
Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollars and shares except per share dataMillions of dollars and shares except per share data2021202020212020Millions of dollars and shares except per share data2022202120222021
Revenue:Revenue: Revenue: 
ServicesServices$2,802 $2,068 $7,948 $7,940 Services$3,686 $2,683 $6,759 $5,146 
Product salesProduct sales1,058 907 3,070 3,268 Product sales1,388 1,024 2,599 2,012 
Total revenueTotal revenue3,860 2,975 11,018 11,208 Total revenue5,074 3,707 9,358 7,158 
Operating costs and expenses:Operating costs and expenses: Operating costs and expenses: 
Cost of servicesCost of services2,467 1,904 7,088 7,394 Cost of services3,123 2,370 5,833 4,621 
Cost of salesCost of sales889 755 2,523 2,663 Cost of sales1,166 852 2,155 1,634 
Impairments and other chargesImpairments and other charges12 133 12 3,353 Impairments and other charges344 — 366 — 
General and administrativeGeneral and administrative46 41 145 138 General and administrative67 51 119 99 
Total operating costs and expensesTotal operating costs and expenses3,414 2,833 9,768 13,548 Total operating costs and expenses4,700 3,273 8,473 6,354 
Operating income (loss)446 142 1,250 (2,340)
Interest expense, net of interest income of $15, $11, $39, and $28(116)(122)(361)(380)
Operating incomeOperating income374 434 885 804 
Interest expense, net of interest income of $24, $14, $43, and $24Interest expense, net of interest income of $24, $14, $43, and $24(101)(120)(208)(245)
Loss on early extinguishment of debtLoss on early extinguishment of debt— — — (168)Loss on early extinguishment of debt— — (42)— 
Other, netOther, net(14)(21)(55)(92)Other, net(42)(19)(72)(41)
Income (loss) before income taxes316 (1)834 (2,980)
Income tax benefit (provision)(76)(18)(193)265 
Income before income taxesIncome before income taxes231 295 563 518 
Income tax provisionIncome tax provision(114)(65)(182)(117)
Net income (loss)$240 $(19)$641 $(2,715)
Net (income) loss attributable to noncontrolling interest(4)(8)
Net income (loss) attributable to company$236 $(17)$633 $(2,710)
Net incomeNet income$117 $230 $381 $401 
Net income attributable to noncontrolling interestNet income attributable to noncontrolling interest(8)(3)(9)(4)
Net income attributable to companyNet income attributable to company$109 $227 $372 $397 
Basic and diluted net income (loss) per share$0.26 $(0.02)$0.71 $(3.08)
Basic and diluted net income per shareBasic and diluted net income per share$0.12 $0.26 $0.41 $0.45 
Basic weighted average common shares outstandingBasic weighted average common shares outstanding904 890 902 889 
Diluted weighted average common shares outstandingDiluted weighted average common shares outstanding909 890 906 889 
See notes to condensed consolidated financial statements.
Basic and diluted weighted average common shares outstanding894 882 891 879 
See notes to condensed consolidated financial statements.
HAL Q3 2021Q2 2022 FORM 10-Q | 1

HALLIBURTON COMPANY
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three Months Ended
September 30
Nine Months Ended
September 30
Millions of dollars2021202020212020
Net income (loss)$240 $(19)$641 $(2,715)
Other comprehensive income, net of income taxes— 22 
Comprehensive income (loss)$240 $(17)$643 $(2,693)
Comprehensive (income) loss attributable to noncontrolling interest(4)(8)
Comprehensive income (loss) attributable to company shareholders$236 $(16)$635 $(2,689)
See notes to condensed consolidated financial statements.
Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollars2022202120222021
Net income$117 $230 $381 $401 
Other comprehensive income (loss), net of income taxes(1)
Comprehensive income$116 $232 $385 $403 
Comprehensive income attributable to noncontrolling interest(8)(3)(9)(4)
Comprehensive income attributable to company shareholders$108 $229 $376 $399 
See notes to condensed consolidated financial statements.

HAL Q3 2021Q2 2022 FORM 10-Q | 2

HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Unaudited)
Millions of dollars and shares except per share dataMillions of dollars and shares except per share dataSeptember 30,
2021
December 31,
2020
Millions of dollars and shares except per share dataJune 30,
2022
December 31,
2021
AssetsAssetsAssets
Current assets:Current assets: Current assets: 
Cash and equivalentsCash and equivalents$2,632 $2,563 Cash and equivalents$2,226 $3,044 
Receivables (net of allowances for credit losses of $765 and $824)3,525 3,071 
Receivables (net of allowances for credit losses of $746 and $754)Receivables (net of allowances for credit losses of $746 and $754)4,390 3,666 
InventoriesInventories2,354 2,349 Inventories2,654 2,361 
Other current assetsOther current assets920 1,492 Other current assets992 872 
Total current assetsTotal current assets9,431 9,475 Total current assets10,262 9,943 
Property, plant, and equipment (net of accumulated depreciation of $11,377 and $11,039)4,235 4,325 
Property, plant, and equipment (net of accumulated depreciation of $11,354 and $11,442)Property, plant, and equipment (net of accumulated depreciation of $11,354 and $11,442)4,165 4,326 
GoodwillGoodwill2,841 2,804 Goodwill2,828 2,843 
Deferred income taxesDeferred income taxes2,149 2,166 Deferred income taxes2,703 2,695 
Operating lease right-of-use assetsOperating lease right-of-use assets984 786 Operating lease right-of-use assets894 934 
Other assetsOther assets1,385 1,124 Other assets1,593 1,580 
Total assetsTotal assets$21,025 $20,680 Total assets$22,445 $22,321 
Liabilities and Shareholders’ EquityLiabilities and Shareholders’ EquityLiabilities and Shareholders’ Equity
Current liabilities:Current liabilities: Current liabilities: 
Accounts payableAccounts payable$2,011 $1,573 Accounts payable$2,794 $2,353 
Accrued employee compensation and benefitsAccrued employee compensation and benefits583 517 Accrued employee compensation and benefits513 493 
Taxes other than incomeTaxes other than income337 292 
Current portion of operating lease liabilitiesCurrent portion of operating lease liabilities258 251 Current portion of operating lease liabilities227 240 
Current maturities of long-term debt11 695 
Income tax payableIncome tax payable205 261 
Other current liabilitiesOther current liabilities1,083 1,385 Other current liabilities690 667 
Total current liabilitiesTotal current liabilities3,946 4,421 Total current liabilities4,766 4,306 
Long-term debtLong-term debt9,125 9,132 Long-term debt8,525 9,127 
Operating lease liabilitiesOperating lease liabilities907 758 Operating lease liabilities786 845 
Employee compensation and benefitsEmployee compensation and benefits547 562 Employee compensation and benefits466 492 
Other liabilitiesOther liabilities807 824 Other liabilities754 823 
Total liabilitiesTotal liabilities15,332 15,697 Total liabilities15,297 15,593 
Shareholders’ equity:Shareholders’ equity: Shareholders’ equity: 
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)2,666 2,666 Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)2,665 2,665 
Paid-in capital in excess of par valuePaid-in capital in excess of par value24 — Paid-in capital in excess of par value—��32 
Accumulated other comprehensive lossAccumulated other comprehensive loss(360)(362)Accumulated other comprehensive loss(179)(183)
Retained earningsRetained earnings8,927 8,691 Retained earnings9,617 9,710 
Treasury stock, at cost (172 and 181 shares)(5,576)(6,021)
Treasury stock, at cost (159 and 170 shares)Treasury stock, at cost (159 and 170 shares)(4,973)(5,511)
Company shareholders’ equityCompany shareholders’ equity5,681 4,974 Company shareholders’ equity7,130 6,713 
Noncontrolling interest in consolidated subsidiariesNoncontrolling interest in consolidated subsidiaries12 Noncontrolling interest in consolidated subsidiaries18 15 
Total shareholders’ equityTotal shareholders’ equity5,693 4,983 Total shareholders’ equity7,148 6,728 
Total liabilities and shareholders’ equityTotal liabilities and shareholders’ equity$21,025 $20,680 Total liabilities and shareholders’ equity$22,445 $22,321 
See notes to condensed consolidated financial statements.See notes to condensed consolidated financial statements.

HAL Q3 2021Q2 2022 FORM 10-Q | 3

HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30
Six Months Ended
June 30
Millions of dollarsMillions of dollars20212020Millions of dollars20222021
Cash flows from operating activities:Cash flows from operating activities: Cash flows from operating activities: 
Net income (loss)$641 $(2,715)
Adjustments to reconcile net income (loss) to cash flows from operating activities: 
Net incomeNet income$381 $401 
Adjustments to reconcile net income to cash flows from operating activities:Adjustments to reconcile net income to cash flows from operating activities: 
Depreciation, depletion, and amortizationDepreciation, depletion, and amortization673 829 Depreciation, depletion, and amortization470 449 
Accrued employee benefits22 (494)
Impairments and other chargesImpairments and other charges12 3,353 Impairments and other charges366 — 
Deferred income tax benefit11 (380)
Changes in assets and liabilities:Changes in assets and liabilities: Changes in assets and liabilities: 
ReceivablesReceivables(930)(306)
Accounts payableAccounts payable448 (933)Accounts payable491 323 
Receivables(364)1,294 
InventoriesInventories(3)115 Inventories(371)(6)
Other operating activitiesOther operating activities(211)174 Other operating activities(81)(249)
Total cash flows provided by operating activitiesTotal cash flows provided by operating activities1,229 1,243 Total cash flows provided by operating activities326 612 
Cash flows from investing activities:Cash flows from investing activities: Cash flows from investing activities: 
Capital expendituresCapital expenditures(483)(510)Capital expenditures(410)(295)
Proceeds from sales of property, plant, and equipmentProceeds from sales of property, plant, and equipment145 199 Proceeds from sales of property, plant, and equipment116 105 
Proceeds from a structured real estate transaction87 — 
Other investing activitiesOther investing activities(57)(33)Other investing activities(54)(31)
Total cash flows used in investing activitiesTotal cash flows used in investing activities(308)(344)Total cash flows used in investing activities(348)(221)
Cash flows from financing activities:Cash flows from financing activities: Cash flows from financing activities: 
Payments on long-term borrowingsPayments on long-term borrowings(696)(1,653)Payments on long-term borrowings(642)(192)
Dividends to shareholdersDividends to shareholders(121)(238)Dividends to shareholders(217)(80)
Proceeds from issuance of long-term debt, net— 994 
Stock repurchase program— (100)
Other financing activitiesOther financing activities25 Other financing activities116 
Total cash flows used in financing activitiesTotal cash flows used in financing activities(810)(972)Total cash flows used in financing activities(743)(268)
Effect of exchange rate changes on cashEffect of exchange rate changes on cash(42)(80)Effect of exchange rate changes on cash(53)(28)
Increase (decrease) in cash and equivalents69 (153)
Increase/(Decrease) in cash and equivalentsIncrease/(Decrease) in cash and equivalents(818)95 
Cash and equivalents at beginning of periodCash and equivalents at beginning of period2,563 2,268 Cash and equivalents at beginning of period3,044 2,563 
Cash and equivalents at end of periodCash and equivalents at end of period$2,632 $2,115 Cash and equivalents at end of period$2,226 $2,658 
Supplemental disclosure of cash flow information:Supplemental disclosure of cash flow information: Supplemental disclosure of cash flow information: 
Cash payments during the period for:Cash payments during the period for: Cash payments during the period for: 
InterestInterest$402 $396 Interest$244 $261 
Income taxesIncome taxes$157 $256 Income taxes$190 $123 
See notes to condensed consolidated financial statements.See notes to condensed consolidated financial statements.

HAL Q3 2021Q2 2022 FORM 10-Q | 4

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
HALLIBURTON COMPANY
Notes to Condensed Consolidated Financial Statements
(Unaudited)

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 20202021 Annual Report on Form 10-K.

Our accounting policies are in accordance with United States generally accepted accounting principles. 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 SeptemberJune 30, 20212022 and the results of our operations for the three and ninesix months ended SeptemberJune 30, 20212022 and 2020,2021, and our cash flows for the ninesix months ended SeptemberJune 30, 20212022 and 2020.2021. Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation.

The results of our operations for the three and ninesix months ended SeptemberJune 30, 20212022 may not be indicative of results for the full year.

Note 2. Impairments and Other Charges
    
The following table presents various pre-tax charges we recorded during the three and ninesix months ended SeptemberJune 30, 20212022, primarily due to the ongoing conflict between Russia and 2020, whichUkraine. These charges are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.
Three Months Ended
September 30
Nine Months Ended
September 30
Millions of dollars2021202020212020
Catch-up depreciation$36 $— $36 $— 
Severance costs15 83 15 356 
Long-lived asset impairments— 31 — 2,299 
Inventory costs and write-downs— 11 — 505 
Gain on real estate transaction(74)— (74)— 
Other35 35 193 
Total impairments and other charges$12 $133 $12 $3,353 

Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollars20222022
Receivables$186 $202 
Property, plant, and equipment, net100 100 
Inventory70 70 
Other(12)(6)
Total impairments and other charges$344 $366 

During the second quarter of 2022, due to Russia's invasion of Ukraine and resulting sanctions imposed on Russia, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria and as a result, we wrote down the disposal group to fair value less costs to sell, resulting in a pre-tax charge of $344 million. The resulting value of the disposal group held for sale was $1. The anticipated divestiture is not presented as discontinued operations in our condensed consolidated statements of operations because it does not represent a strategic shift in our business. Of the $12these impairments and other charges, approximately $131 million net charges recorded during the three months ended September 30, 2021, a $42 million charge was attributable to our Completion and Production segment, a $9approximately $178 million charge was attributable to our Drilling and Evaluation segment, and a $39$35 million net gainwas selling costs and was attributable to Corporate and other.

HAL Q3 2021Q2 2022 FORM 10-Q | 5

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

InDuring the thirdfirst quarter of 2021,2022, we decidedrecorded a pre-tax charge of $22 million primarily related to discontinue the proposed salewrite down of all our assets in Ukraine as part of our Pipeline and Process Services business anddecision to cease our operations in Ukraine. Included in this charge is a $16 million allowance for credit loss as a result recorded a $36 million charge for accumulated unrecognized depreciation and amortization expense during the period the associated assets were classified as held for sale. We have reclassified this businesswe do not expect to assets held and usedcollect our receivables in the accompanying condensed consolidated balance sheet as of September 30, 2021. Beginning October 1, 2021, all depreciation and amortization expense associated with this business will be included in operating costs and expenses on our condensed consolidated statements of operations.

During the third quarter of 2021, we finalized a previously communicated structured transaction relating to most of our owned U.S. real estate. As a result of the transaction, we derecognized $358 million of assets previously held for sale included in Other current assets and recognized an investment in an unconsolidated subsidiary of $349 million included in Other Assets, which resulted in a gain of $74 million. We have elected to account for our investment under the fair value option using an income approach. We believe the election of the fair value option aligns the accounting treatment with our interest in the real estate held by the unconsolidated subsidiary. As part of the transaction, we completed the sale-leaseback of the same U.S. real estate which resulted in an increase of our operating right-of-use assets and operating lease liabilities of $276 million and we received gross cash proceeds of $87 million. Pursuant to a master lease agreement, the properties are subject to initial lease terms of either twelve or fifteen years and we have the option to extend the term on each property for two additional terms of five years each thereafter and the rent payments are subject to an annual rent escalator of 1.35%.Ukraine.

Note 3. Business Segment Information

We operate under 2 divisions, which form the basis for the 2 operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.

The following table presents information on our business segments.
 Three Months Ended
September 30
Nine Months Ended
September 30
Millions of dollars2021202020212020
Revenue:  
Completion and Production$2,136 $1,574 $6,054 $6,029 
Drilling and Evaluation1,724 1,401 4,964 5,179 
Total revenue$3,860 $2,975 $11,018 $11,208 
Operating income (loss):
Completion and Production$322 $212 $891 $713 
Drilling and Evaluation186 105 532 452 
Total operations508 317 1,423 1,165 
Corporate and other (a)(50)(42)(161)(152)
Impairments and other charges (b)(12)(133)(12)(3,353)
Total operating income (loss)$446 $142 $1,250 $(2,340)
Interest expense, net of interest income(116)(122)(361)(380)
Loss on early extinguishment of debt (c)— — — (168)
Other, net(14)(21)(55)(92)
Income (loss) before income taxes$316 $(1)$834 $(2,980)
(a)Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)For the three and nine months ended September 30, 2021, amount includes a $42 million charge attributable to Completions and Production, a $9 million charge attributable to Drilling and Evaluation, and a $39 million net gain attributable to Corporate and other. For the three and nine months ended September 30, 2020, amount includes $90 million and $2.1 billion attributable to Completion and Production, $40 million and $1.2 billion attributable to Drilling and Evaluation, and $3 million and $44 million attributable to Corporate and other, respectively.
(c)For the nine months ended September 30, 2020, amount includes a $168 million loss on extinguishment of debt related to the early repurchase of senior notes.
 Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollars2022202120222021
Revenue:  
Completion and Production$2,911 $2,048 $5,264 $3,918 
Drilling and Evaluation2,163 1,659 4,094 3,240 
Total revenue$5,074 $3,707 $9,358 $7,158 
Operating income:
Completion and Production$499 $317 $795 $569 
Drilling and Evaluation286 175 580 346 
Total operations785 492 1,375 915 
Corporate and other (a)(67)(58)(124)(111)
Impairments and other charges (b)(344)— (366)— 
Total operating income$374 $434 $885 $804 
Interest expense, net of interest income(101)(120)(208)(245)
Loss on early extinguishment of debt (c)— — (42)— 
Other, net(42)(19)(72)(41)
Income before income taxes$231 $295 $563 $518 
(a)Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)For the three and six months ended June 30, 2022 respectively, the amounts include $131 million and $136 million charges attributable to Completions and Production, and $178 million and $195 million charges attributable to Drilling and Evaluation, and a $35 million charge attributable to Corporate and other for both periods.
(c)For the six months ended June 30, 2022, amount consists of a $42 million loss on the early redemption of senior notes.

HAL Q3 2021 FORM 10-Q | 6

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Note 4. Revenue

Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize.

Disaggregation of revenue
We disaggregate revenue from contracts with customers into types of services or products, consistent with our 2 reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 40%44% and 40%38% of our consolidated revenue was from the United States for the ninesix months ended SeptemberJune 30, 20212022 and 2020,2021, respectively. No other country accounted for more than 10% of our revenue.
HAL Q2 2022 FORM 10-Q | 6

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

The following table presents information on our disaggregated revenue.
Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollarsMillions of dollarsThree Months Ended
September 30
Nine Months Ended
September 30
Millions of dollars2022202120222021
Revenue by segment:Revenue by segment:2021202020212020Revenue by segment:
Completion and ProductionCompletion and Production$2,136 $1,574 $6,054 $6,029 Completion and Production$2,911 $2,048 $5,264 $3,918 
Drilling and EvaluationDrilling and Evaluation1,724 1,401 4,964 5,179 Drilling and Evaluation2,163 1,659 4,094 3,240 
Total revenueTotal revenue$3,860 $2,975 $11,018 $11,208 Total revenue$5,074 $3,707 $9,358 $7,158 
Revenue by geographic region:Revenue by geographic region:Revenue by geographic region:
North AmericaNorth America$1,615 $984 $4,588 $4,493 North America$2,426 $1,569 $4,351 $2,973 
Latin AmericaLatin America624 380 1,693 1,242 Latin America758 534 1,411 1,069 
Europe/Africa/CISEurope/Africa/CIS676 649 1,989 2,171 Europe/Africa/CIS718 679 1,395 1,313 
Middle East/AsiaMiddle East/Asia945 962 2,748 3,302 Middle East/Asia1,172 925 2,201 1,803 
Total revenueTotal revenue$3,860 $2,975 $11,018 $11,208 Total revenue$5,074 $3,707 $9,358 $7,158 

Contract balances
We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, werewas not material to our condensed consolidated financial statements.

Transaction price allocated to remaining performance obligations
Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.

HAL Q3 2021 FORM 10-Q | 7

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Receivables
As of SeptemberJune 30, 2021, 27%2022, 40% of totalour net trade receivables were from customers in the United States.States and 9% were from customers in Mexico. As of December 31, 2020, 32%2021, 34% of totalour net trade receivables were from customers in the United States.States and 11% were from customers in Mexico. Receivables from our primary customer in Mexico accounted for approximately 8% and 10% of our total receivables as of SeptemberJune 30, 2021.2022 and December 31, 2021, respectively. While we have experienced payment delays in Mexico, these amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer. NaN other country or single customer accounted for more than 10% of our receivables at those dates.

Although the market environment has been improving, we continue to have risk of delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies.issues. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves a high degree of judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit agency ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

HAL Q2 2022 FORM 10-Q | 7

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Note 5. Inventories

Inventories consisted of the following:
Millions of dollarsMillions of dollarsSeptember 30,
2021
December 31,
2020
Millions of dollarsJune 30,
2022
December 31,
2021
Finished products and partsFinished products and parts$1,398 $1,330 Finished products and parts$1,586 $1,380 
Raw materials and suppliesRaw materials and supplies870 952 Raw materials and supplies945 890 
Work in processWork in process86 67 Work in process123 91 
TotalTotal$2,354 $2,349 Total$2,654 $2,361 

Note 6. Debt

We repaid the $185 million principal balance of our 8.75% senior debentures when they matured inIn February of 2021. In August of 2021,2022, we redeemed the entire $500$600 million aggregate principal amount outstanding of our 3.25%$1.0 billion 3.8% senior notes at par.that mature in November 2025. The early redemption price for the notes consisted of 100% of the principal amount of the notes outstanding, plus accruedresulted in a loss of $42 million, consisting of premiums and unpaid interestunamortized expenses. The loss is included in "Loss on early extinguishment of debt" in our condensed consolidated statements of operations for the notes.six months ended June 30, 2022. We used cash on hand to fund the aggregate redemption price of the debenturesnotes, which included the principal amount, the make-whole premium, and notes.accrued interest, in the amount of $641 million. The remaining $400 million aggregate principal amount of the notes remains outstanding.

On April 27, 2022, we entered into a new $3.5 billion five-year revolving credit facility which replaced our $3.5 billion revolving credit facility established in March 2019. The revolving credit facility is for general working capital purposes and expires on April 27, 2027. The full amount of the revolving credit facility was available as of June 30, 2022.

Note 7. Income Taxes

During the three months ended June 30, 2022, we recorded a total income tax provision of $114 million on a pre-tax income of $231 million, resulting in an effective tax rate of 49.3% for the quarter. The effective tax rate was higher primarily due to the impact of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits.

During the six months ended June 30, 2022, we recorded a total income tax provision of $182 million on a pre-tax income of $563 million, resulting in an effective tax rate of 32.2%. The effective tax rate was higher primarily due to the impact of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits.

HAL Q3 2021Q2 2022 FORM 10-Q | 8

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Note 7.8. Shareholders’ Equity

The following tables summarize our shareholders’ equity activity for the three and ninesix months ended SeptemberJune 30, 2022 and June 30, 2021, and September 30, 2020, respectively:
Millions of dollarsMillions of dollarsCommon StockPaid-in Capital in Excess of Par ValueTreasury StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interest in Consolidated SubsidiariesTotalMillions of dollarsCommon StockPaid-in Capital in Excess of Par ValueTreasury StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interest in Consolidated SubsidiariesTotal
Balance at December 31, 2020$2,666 $— $(6,021)$8,691 $(362)$$4,983 
Comprehensive income (loss):
Net income— — — 170 — 171 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Stock plans (a)— 34 144 (112)— — 66 
Other— — — — — (1)(1)
Balance at March 31, 2021$2,666 $34 $(5,877)$8,709 $(362)$$5,179 
Balance at December 31, 2021Balance at December 31, 2021$2,665 $32 $(5,511)$9,710 $(183)$15 $6,728 
Comprehensive income (loss):Comprehensive income (loss):Comprehensive income (loss):
Net incomeNet income— — — 227 — 230 Net income— — — 263 — 264 
Other comprehensive incomeOther comprehensive income— — — — — Other comprehensive income— — — — — 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Cash dividends ($0.12 per share)Cash dividends ($0.12 per share)— — — (108)— — (108)
Stock plans (a)Stock plans (a)— (32)261 (85)— — 144 
Balance at March 31, 2022Balance at March 31, 2022$2,665 $— $(5,250)$9,780 $(178)$16 $7,033 
Comprehensive income (loss):Comprehensive income (loss):
Net incomeNet income— — — 109 — 117 
Other comprehensive lossOther comprehensive loss— — — — (1)— (1)
Cash dividends ($0.12 per share)Cash dividends ($0.12 per share)— — — (109)— — (109)
Stock plansStock plans— (8)69 — — — 61 Stock plans— — 277 (163)— — 114 
OtherOther— — — — — (3)(3)Other— — — — — (6)(6)
Balance at June 30, 2021$2,666 $26 $(5,808)$8,896 $(360)$$5,429 
Comprehensive income (loss):
Net income— — — 236 — 240 
Balance at June 30, 2022Balance at June 30, 2022$2,665 $— $(4,973)$9,617 $(179)$18 $7,148 
Cash dividends ($0.045 per share)— — — (41)— — (41)
Stock plans (a)— (2)232 (164)— — 66 
Other— — — — — (1)(1)
Balance at September 30, 2021$2,666 $24 $(5,576)$8,927 $(360)$12 $5,693 
(a)(a)In January and July of 2021, we issued common stock from treasury shares for the employee stock purchase plan and for restricted stock grants. As a result, additional paid in capital in January and July of 2021 were reduced below zero, which resulted in a reduction of retained earnings by $112 million and $164 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.(a)In the first and second quarter of 2022, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and our employee stock purchase plan. As a result, additional paid in capital was reduced below zero, which resulted in a reduction of retained earnings by $85 million and $163 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.
Millions of dollarsCommon StockPaid-in Capital in Excess of Par ValueTreasury StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interest in Consolidated SubsidiariesTotal
Balance at December 31, 2020$2,666 $— $(6,021)$8,691 $(362)$$4,983 
Comprehensive income (loss):
Net income— — — 170 — 171 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Stock plans (a)— 34 144 (112)— — 66 
Other— — — — — (1)(1)
Balance at March 31, 2021$2,666 $34 $(5,877)$8,709 $(362)$$5,179 
Comprehensive income (loss):
Net income— — — 227 — 230 
Other comprehensive income— — — — — 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Stock plans— (8)69 — — — 61 
Other— — — — — (3)(3)
Balance at June 30, 2021$2,666 $26 $(5,808)$8,896 $(360)$$5,429 
(a)In January of 2021, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and our employee stock purchase plan. As a result, additional paid in capital was reduced below zero, which resulted in a reduction of retained earnings by $112 million. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

HAL Q3 2021Q2 2022 FORM 10-Q | 9

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Millions of dollarsCommon StockPaid-in Capital in Excess of Par ValueTreasury StockRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interest in Consolidated SubsidiariesTotal
Balance at December 31, 2019$2,669 $143 $(6,427)$11,989 $(362)$13 $8,025 
Comprehensive income (loss):
Net income (loss)— — — (1,017)— (1,015)
Other comprehensive income— — — — 11 — 11 
Cash dividends ($0.18 per share)— — — (158)— — (158)
Stock repurchase program— — (100)— — — (100)
Stock plans— (33)115 — — — 82 
Other— — — — — (2)(2)
Balance at March 31, 2020$2,669 $110 $(6,412)$10,814 $(351)$13 $6,843 
Comprehensive income (loss):
Net loss— — — (1,676)— (5)(1,681)
Other comprehensive income— — — — — 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Stock plans(3)15 54 — — — 66 
Other— — — — — (1)(1)
Balance at June 30, 2020$2,666 $125 $(6,358)$9,098 $(342)$$5,196 
Comprehensive income (loss):
Net loss— — — (17)— (2)(19)
Other comprehensive income— — — — — 
Cash dividends ($0.045 per share)— — — (40)— — (40)
Stock plans (a)— (102)222 (54)— — 66 
Other— — — — — (2)(2)
Balance at September 30, 2020$2,666 $23 $(6,136)$8,987 $(340)$$5,203 
(a)In July of 2020, we issued common stock from treasury shares for the employee stock purchase plan and for restricted stock grants. As a result, additional paid in capital in July of 2020 was reduced below zero, which resulted in a reduction of retained earnings by $54 million. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. There were no repurchases made under the program during the three and ninesix months ended SeptemberJune 30, 2021.2022. Approximately $5.1 billion remained authorized for repurchases as of SeptemberJune 30, 2021.2022. From the inception of this program in February of 2006 through SeptemberJune 30, 2021,2022, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion.

Accumulated other comprehensive loss consisted of the following:
Millions of dollarsMillions of dollarsSeptember 30,
2021
December 31,
2020
Millions of dollarsJune 30,
2022
December 31,
2021
Cumulative translation adjustmentsCumulative translation adjustments$(85)$(85)
Defined benefit and other postretirement liability adjustmentsDefined benefit and other postretirement liability adjustments$(224)$(226)Defined benefit and other postretirement liability adjustments(48)(47)
Cumulative translation adjustments(85)(83)
OtherOther(51)(53)Other(46)(51)
Total accumulated other comprehensive lossTotal accumulated other comprehensive loss$(360)$(362)Total accumulated other comprehensive loss$(179)$(183)

HAL Q3 2021 FORM 10-Q | 10

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
Note 8.9. Commitments and Contingencies

We areThe Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and tax-relatedother matters arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any litigation,legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings.

Guarantee arrangements
In the normal course of business, we have in place agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of SeptemberJune 30, 2021.2022. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off balanceoff-balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.

Note 9.10. Income per Share

Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact would bewas antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:
Three Months Ended
September 30
Nine Months Ended
September 30
Three Months Ended
June 30
Six Months Ended
June 30
Millions of sharesMillions of shares2021202020212020Millions of shares2022202120222021
Basic weighted average common shares outstandingBasic weighted average common shares outstanding894 882 891 879 Basic weighted average common shares outstanding904 890 902 889 
Dilutive effect of awards granted under our stock incentive plansDilutive effect of awards granted under our stock incentive plans— — — — Dilutive effect of awards granted under our stock incentive plans— — 
Diluted weighted average common shares outstandingDiluted weighted average common shares outstanding894 882 891 879 Diluted weighted average common shares outstanding909 890 906 889 
Antidilutive shares:Antidilutive shares:Antidilutive shares:
Options with exercise price greater than the average market priceOptions with exercise price greater than the average market price21 26 22 27 Options with exercise price greater than the average market price14 22 15 22 
Options which are antidilutive due to net loss position— — 
Total antidilutive shares Total antidilutive shares21 27 22 28  Total antidilutive shares14 22 15 22 

Note 10.11. Fair Value of Financial Instruments

    The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments.

HAL Q2 2022 FORM 10-Q | 10

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows:
September 30, 2021December 31, 2020
Millions of dollarsLevel 1Level 2Total fair valueCarrying valueLevel 1Level 2Total fair valueCarrying value
Total debt$10,896 $147 $11,043 $9,136 $10,856 $700 $11,556 $9,827 
June 30, 2022December 31, 2021
Millions of dollarsLevel 1Level 2Total fair valueCarrying valueLevel 1Level 2Total fair valueCarrying value
Total debt$7,604 $805 $8,409 $8,525 $10,518 $527 $11,045 $9,138 

In the first nine monthshalf of 2021,2022, the fair value of our debt decreased as a result of repaymentthe early redemption of senior debenturesnotes and notes, the effect of which was partially offset by lowerhigher debt yields. The carrying value of our debt decreased as a result of the repaymentearly redemption of senior debentures and notes. See Note 6 for further information.

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences
HAL Q3 2021 FORM 10-Q | 11

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements
between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

HAL Q3 2021Q2 2022 FORM 10-Q | 1211

Part I. Item 2 | Executive Overview
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the condensed consolidated financial statements included in "Item 1. Financial Statements" contained herein.

EXECUTIVE OVERVIEW
Organization
We are one of the world's largest providers of products and services to the energy industry. We help our customers maximize value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and production programs by major, national, and independent oil and natural gas companies. We report our results under two segments, the Completion and Production segment and the Drilling and Evaluation segment:segment.
our Completion and Production segment delivers cementing, stimulation, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Production Enhancement, Cementing, Completion Tools, Production Solutions, Artificial Lift, and Pipeline and Process Services.
our Drilling and Evaluation segment provides field and reservoir modeling, drilling, fluids and specialty chemicals, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Baroid, Sperry Drilling, Wireline and Perforating, Drill Bits and Services, Landmark Software and Services, Testing and Subsea, and Project Management.

The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 40,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to:
-deliver profitable growth in our international business;
-maximize value and cash flows in our North America business;
-accelerate the deployment and integration of our digitaldigitalization and automation technologies that create differentiation, both internally and withfor our customers;
-improve-drive increased capital efficiency by advancingefficiencies in all parts of our technologies and making strategic choices that lower our capital expenditure profile;business; and
-actively participate in advancing a sustainable energy future.

The following charts depict revenue split between our two operating segments and our four primary geographic regions for the quarter ended SeptemberJune 30, 2021.2022.
hal-20210930_g1.jpghal-20210930_g2.jpghal-20220630_g1.jpghal-20220630_g2.jpg
HAL Q3Q2 2022 FORM 10-Q | 12

Part I. Item 2 | Executive Overview
Market conditions, COVID-19 pandemic, and Russia/Ukraine Conflict
Oil and natural gas prices continue to be impacted by the efforts to contain COVID-19, the pace of economic recovery, and changes to OPEC+ production levels. In addition, Russia’s invasion of Ukraine in February of 2022 and the ongoing conflict continues to cause regional instability as discussed below. The foregoing destabilizing factors have caused dramatic fluctuations in global financial markets and uncertainty about world-wide oil supply and demand, which in turn has increased the volatility of oil and natural gas prices. West Texas Intermediate (WTI) averaged approximately $109 per barrel during the second quarter of 2022. The U.S. land average rig count continues to be below pre-pandemic levels, but rose 13% in the second quarter of 2022 compared to the first quarter of 2022. The Brent crude oil price averaged over $114 per barrel during the second quarter of 2022 and the international average rig count decreased 1% as compared to the firstquarter of 2022.Globally, we are being impacted by supply chain and labor shortages as the post-pandemic recovery stressed both the supply of raw materials and labor, plus transportation logistics. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Also, while we have been impacted by inflationary cost increases, primarily related to frac sand, chemicals, cement, and logistics costs, we generally try to pass much of those increases on to our customers and we believe we have effective solutions that work to minimize the operational impact.

As a result of Russia's invasion of Ukraine, governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries have enacted additional sanctions against Russia and Russian interests. These sanctions include controls on the export, re-export, and in-country transfer in Russia of certain goods, supplies, and technologies, including some that we use in our business in Russia, and the imposition of restrictions on doing business with certain state-owned Russian customers and other investments and business activities in Russia. In order to comply with these sanctions, we ceased pursuing future business in Russia and began to wind down our remaining operations in Russia in March of 2022. During the second quarter of 2022, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria and as a result, we wrote down the disposal group to fair value less costs to sell, resulting in a pre-tax charge of $344 million. See Note 2 to our condensed consolidated financial statements for additional information.

The invasion of and ongoing conflict in Ukraine will likely continue to cause disruption and instability in Russia, Ukraine, and other markets in which we operate. Litigation may result, both by us in the event of any expropriation or nationalization of our assets and by others against us as a result of our wind down due to sanctions compliance. We may also incur employee severance costs in connection with the wind down. It is not possible at this time to predict the ultimate consequences of the conflict in Ukraine or the responses of governments or others to the conflict, which could include, among other things, additional sanctions, greater regional instability or expansion of the conflict, embargoes, geopolitical shifts, litigation, and impacts on macroeconomic conditions, commodities, currency exchange rates, supply chains, and financial markets.

Financial results
The following graph illustrates our revenue and operating margins for each operating segment for the second quarter of 2021 and 2022.

hal-20220630_g3.jpg

HAL Q2 2022 FORM 10-Q | 13

Part I. Item 2 | Executive Overview
Market conditions update and COVID-19 pandemic
The oil and gas industry continued to be impacted from shutdowns as a result ofDuring the COVID-19 pandemic, specifically in Asia. In spite of COVID-19 interruptions from mobility restrictions and daily precautions continuing to remain in place, business activity around the world has adjusted and continues to improve. West Texas Intermediate (WTI) oil prices have recovered to pre-pandemic levels, averaging approximately $71 per barrel during the thirdsecond quarter of 2021. The U.S. land average rig count continues to be well below pre-pandemic levels, but it did rise 11% in the third quarter2022, we generated total company revenue of 2021 compared to the second quarter of 2021. The Brent crude oil price averaged over $73 per barrel during the third quarter of 2021 and the international average rig count increased 5%$5.1 billion, a 37% increase as compared to the second quarter of 2021. With the current shortage of other sources of energy, and the economic growth associated with what appears to be a global emergence from the pandemic, the demand for and price of oil has improved. We believe that global oil demand will continue increasing in the fourth quarter of 2021 and into 2022.

Financial results
The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of 2020 and 2021.

hal-20210930_g3.jpg

During the third quarter of 2021, we generated total company revenue of $3.9 billion, a 30% increase as compared to the third quarter of 2020. We reported operating income of $446$374 million during the thirdsecond quarter of 20212022 that included $12$344 million of special itemsimpairments and other charges related to our decision to market for sale our Russia operations.. This compares to operating income of $142$434 million during the thirdsecond quarter of 2020 which was impacted by $133 million of severance and other charges.2021. Our Completion and Production segment revenue increased 36%42% in the thirdsecond quarter of 20212022 as compared to the thirdsecond quarter of 2020,2021, primarily due to increased pressure pumping services in North America land. Our Drilling and Evaluation segment revenue increased 23%30% in the thirdsecond quarter of 20212022 as compared to the thirdsecond quarter of 2020,2021, driven primarily by improvements in drilling-related services, activity in the Western Hemisphere. Operating margins in both of our operating segments improved in the third quarter of 2021 as compared to the third quarter of 2020 on higher commodity prices driving increased activity, higher utilization,wireline services, and better operating leverage from our structural cost reductions implemented during 2020.testing services globally.

In North America, our revenue increased 64%55% in the thirdsecond quarter of 2021,2022, as compared to the thirdsecond quarter of 2020,2021, driven by increased pressure pumping services in North America land, as well as increased activity in most other product service lines. Both of our segments' revenue increased over 50% in the third quarter of 2021 compared to the third quarter of 2020, whileWhile the average North America rig count more than doubled forincreased 58% from the same period. Although the North America rig count is increasing,second quarter of 2021, it is still below pre-pandemic levels.

Revenue in our international markets increased 13%24% in the thirdsecond quarter of 2021,2022, as compared to the thirdsecond quarter of 2020,2021, primarily driven by improvements in most product service lines in Latin America, particularly Argentina, drilling-relatedhigher activity for drilling and completions related services project management activity, and pipeline services in Middle East/Asia, and cementing and well intervention in Europe/Africa/CIS, partially offset by lower completion tool salesacross all regions. The international rig count increased 11% in the Eastern Hemisphere.
HAL Q3 2021 FORM 10-Q | 14

Part I. Item 2 | Executive Overview
second quarter of 2022 as compared to the second quarter of 2021.

Sustainability and Energy Advancement
We continue to pursue our strategic initiatives around advancing cleaner, affordable energy, and supporting sustainable energy advancements, using innovation and technology to reduce the environmental impact of producing oil and gas. As such, we are continuing to developThis includes the continued development and deploydeployment of low-carbon solutions to help oil and gas operators lower their current emissions profiles while also using our existing technologies in renewable energy applications. In addition, Halliburton Labs, our clean energy transition accelerator, announced its inaugural groupcontinues to pursue companies and has 15 participants and alumni as of participating companies in the firstsecond quarter of 2021 and announced four additional participating companies in the third quarter of 2021, doubling the number of participating companies to eight.2022.

Our operating performance and liquidity are described in more detail in "Liquidity and Capital Resources" and “Business Environment and Results of Operations.”
HAL Q3 2021Q2 2022 FORM 10-Q | 1514

Part I. Item 2 | Liquidity and Capital Resources
LIQUIDITY AND CAPITAL RESOURCES

As of both SeptemberJune 30, 2021 and December 31, 2020,2022, we had $2.6$2.2 billion of cash and equivalents.equivalents, compared to $3.0 billion of cash and equivalents at December 31, 2021.

Significant sources and uses of cash during the first ninesix months of 20212022
Sources of cash:
Cash flows from operating activities were $1.2 billion. Thiswas $326 million, which included a positivenegative net impact of $810 million from the primary components of our working capital (receivables, inventories, and accounts payable) of a net $81 million..

Uses of cash:
In February of 2021,2022, we repaid the $185paid $641 million principal balance of our 8.75% senior debentures at maturity.
In August of 2021, we redeemed the entire $500to redeem $600 million aggregate principal amount outstanding of our 3.25%3.8% senior notes at par.due 2025. The payment also included the make-whole premium and accrued interest.
Capital expenditures were $483 million, a decrease of 5% from the first nine months of 2020, as we adjusted to market conditions.$410 million.
We paid $121$217 million in dividends to our shareholders.

Future sources and uses of cash
We manufacture most of our own equipment, which allowsprovides us with significant flexibility to increase or decrease our capital expenditures based on market conditions. We expect capital spending for the full year 20212022 will be approximately 5-6% of revenue. We believe this level of spend will allow us to adequately invest in accordance with our key strategic priorities, while continuing to rationalize our business to market conditions. We intend toareas. However, we will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spendingspend accordingly.

Our quarterly dividend rate is $0.045$0.12 per common share, or approximately $40$109 million. We will continue to maintain our focus on liquidity and review our quarterly dividend considering our priorities of debt reduction and, as market conditions evolve, reinvesting in our business.
Our Board of Directors has authorized a program to repurchase our common stock from time to time. No repurchases occurred during the thirdsecond quarter of 20212022 under this program. Approximately $5.1 billion remained authorized for repurchases as of SeptemberJune 30, 20212022 and may be used for open market and other share purchases.

Other factors affecting liquidity
Financial position in current market. As of SeptemberJune 30, 2021,2022, we had $2.6$2.2 billion of cash and equivalents and $3.5 billion of available committed bank credit under oura new revolving credit facility.facility executed on April 27, 2022 with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately $1.6$1.1 billion coming due through 2026.the end of 2027. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will provide sufficient liquidity to address the challenges and opportunities of the current market and our global cash needs, including capital expenditures, working capital investments, dividends, if any, and contingent liabilities.

Guarantee agreements. In the normal course of business, we have in place agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of SeptemberJune 30, 2021.2022. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred. As of June 30, 2022, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

Credit ratings. Our credit ratings with Standard & Poor’s (S&P) remain BBB+ for our long-term debt and A-2 for our short-term debt, with a negativestable outlook. Our credit ratings with Moody’s Investors Service (Moody's) remain Baa1 for our long-term debt and P-2 for our short-term debt, with a stable outlook.
HAL Q2 2022 FORM 10-Q | 15

Part I. Item 2 | Liquidity and Capital Resources
Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to risk that our customers may delay or fail to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets, as well as unsettled political conditions. Given the nature and significance of the pandemic and disruption in the oil and gas industry, we have experienced delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies.issues.
HAL Q3 2021 FORM 10-Q | 16

Part I. Item 2 | Liquidity and Capital Resources

Receivables from our primary customer in Mexico accounted for approximately 10%8% of our total receivables as of SeptemberJune 30, 2021.2022. While we have experienced payment delays in Mexico, these amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.

HAL Q3 2021Q2 2022 FORM 10-Q | 1716

Part I. Item 2 | Business Environment and Results of Operations
BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each segment of our business. During the first ninesix months of 2021,2022, based upon the location of the services provided and products sold, 40%44% of our consolidated revenue was from the United States, compared to 38%40% of consolidated revenue from the United States in the first ninesix months of 2020.2021. No other country accounted for more than 10% of our revenue.

Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, sanctions, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that an interruption of operations in any one country, other than the United States, would be materially adverse to our consolidated results of operations.

Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil and natural gas consumption. The COVID-19 pandemic and efforts to mitigate its effect had a substantial negative impact on the global economy and demand for oil. As discussed earlier, although there are signs of improvement in many areas around the world, the potential for new lockdowns and other mitigation efforts to deal with an increase in infection rates in certain areas remains a key risk for oil demand.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers' expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, many of our customers in North America have shifted their strategy from production growth to operating within cash flow and generating returns.returns, and we generally expect that to continue throughout 2022. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.

Traditionally, the North America market recovers from downturns in the industry quicker than the international markets. We have started to see this play out as rig counts have recovered faster in 2021 in North America than internationally. We would expect to continue to see this dynamic in 2022.

The table below shows the average oil and natural gas prices for WTI, United Kingdom Brent crude oil, and Henry Hub natural gas.
Three Months Ended
September 30
Year Ended
December 31
Three Months Ended
June 30
Year Ended
December 31
2021202020222021
Oil price - WTI (1)
Oil price - WTI (1)
$70.62 $40.89 $39.23 
Oil price - WTI (1)
$108.72 $66.09 $67.99 
Oil price - Brent (1)
Oil price - Brent (1)
73.47 42.96 41.76 
Oil price - Brent (1)
113.54 68.83 70.68 
Natural gas price - Henry Hub (2)
Natural gas price - Henry Hub (2)
4.36 2.00 2.04 
Natural gas price - Henry Hub (2)
7.48 2.94 3.91 
(1)(1)Oil price measured in dollars per barrel.(1)Oil price measured in dollars per barrel.
(2)(2)Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.(2)Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:
Three Months Ended
June 30
Six Months Ended
June 30
Year Ended
December 31
20222021202220212021
U.S. Land698 438 660 409 465 
U.S. Offshore15 12 15 15 15 
Canada113 72 155 107 132 
North America826 522 830 531 612 
International816 734 819 716 755 
Worldwide total1,642 1,256 1,649 1,247 1,367 

HAL Q3 2021Q2 2022 FORM 10-Q | 1817

Part I. Item 2 | Business Environment and Results of Operations

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:
Three Months Ended
September 30
Nine Months Ended
September 30
Year Ended
December 31
20212020202120202020
U.S. Land485 242 435 460 418 
U.S. Offshore11 12 15 16 15 
Canada151 47 122 90 89 
North America647 301 572 566 522 
International772 731 735 880 825 
Worldwide total1,419 1,032 1,307 1,446 1,347 

Business outlook
InAccording to the United States Energy Information Administration (EIA) October 2021July 2022 "Short Term Energy Outlook," the Brent spot price is expected to average $111 per barrel for the third quarter of 2022, with an expected full year 2022 average of $107 per barrel, a rise of approximately $36 per barrel, or 51%, as compared to the full year 2021 average. According to the EIA, projects WTI prices are expected to average $78$106 per barrel in the fourththird quarter of 2021,2022 and $68$102 per barrel for the full year 2021 and 2022. The EIA's report projects Brent oil prices to average $812022 WTI forecast for 2022 would result in an increase of $34 per barrel, in the fourth quarter of 2021, with a full year 2021 average of $71 per barrel, a rise of approximately $29 per barrel asor 50%, compared to the full year 2020.2021. Heightened levels of uncertainty continue to exist resulting from a variety of factors, including Russia's invasion of Ukraine. The EIA's full year projection forEIA also expects an average Brent spot price of $108 per barrel in the second half of 2022 is that Brentand falling to an average of $97 per barrel in 2023. According to the EIA, the current oil pricesinventory levels are low compared to pre-pandemic levels, thereby causing potential additional oil price volatility. Actual price outcomes will average $72 per barrel.depend heavily on the impact of existing sanctions imposed on Russia, any potential future sanctions, and the effect of independent corporate actions on Russia's oil production or the sale of Russia's oil in the global market.

The Henry Hub natural gas price averaged $4.36 per MMBtu in the third quarter of 2021 as compared to $2.00 per MMBtu in the third quarter of 2020, an increase of $2.36 per MMBtu. The EIA October 2021July 2022 “Short Term Energy Outlook” projects Henry Hub natural gas prices to average $4.17$8.69 per MMBtu during the third quarter of 2022, average $7.40 per MMBtu for the full year 2021,2022, and $4.01to further decrease to an average of $4.74 per MMBtu in 2022.2023.

ThePer the International Energy Agency's (IEA) October 2021July 2022 "Oil Market Report" forecasts, the forecasted global oil demand is set to reach 96.1average 99.2 million barrels per day in 2021, an increase of 5.22022, a 1.7 million barrelsbarrel per day increase from 2020 and to rise by an additional 3.2 million barrels in 2022.2021. The EIA projects crude oil production in the United States will average 11.011.92 million barrels per day in 2022, approximately a 7% increase from the average 11.19 million barrels per day in 2021, approximately a 3% decrease from 2020, and to average 11.712.97 million barrels per day in 2023, an increase of 9% from 2022.

We continue to expect oil and gas demand will grow over the next several years despite the actions taken by central banks in an attempt to control inflation and the resulting concern about a potential economic slowdown and will be driven by economic expansion, energy security concerns, and population growth. We believe supply dynamics have fundamentally changed due to investor return requirements, public environmental, social, and governance commitments, and regulatory pressure, all of which drive short-cycle production strategies, which enable operators to change investment and spending more rapidly to address changes in market conditions and crude oil pricing. There are important exceptions where successful long-term projects will be developed, but we believe that most investments will be directed towards short-cycle activity over the next several years.

Within our international markets, we expect our customers' spend to remain on track to increase by mid-teens this year, with the Middle East and Latin America expected to grow the most on a full year basis. In North America, net pricing improvements resulted in strong completion and production margin expansion during the second quarter, and we expect pricing gains to continue, with customer spending expected to increase by over 35% this year.

HAL Q2 2022 FORM 10-Q | 18

Part I. Item 2 | Results of Operations in 2022 Compared to 2021 (QTD)
RESULTS OF OPERATIONS IN 2022 COMPARED TO 2021

Three Months Ended June 30, 2022 Compared with Three Months Ended June 30, 2021

Three Months Ended
June 30
FavorablePercentage
Millions of dollars20222021(Unfavorable)Change
Revenue:
By operating segment:
Completion and Production$2,911 $2,048 $863 42 %
Drilling and Evaluation2,163 1,659 504 30 
Total revenue$5,074 $3,707 $1,367 37 %
By geographic region:
North America$2,426 $1,569 $857 55 %
Latin America758 534 224 42 
Europe/Africa/CIS718 679 39 
Middle East/Asia1,172 925 247 27 
Total revenue$5,074 $3,707 $1,367 37 %
Operating income:
By operating segment:
Completion and Production$499 $317 $182 57 %
Drilling and Evaluation286 175 111 63 
Total785 492 293 60 
Corporate and other(67)(58)$(9)(16)%
Impairments and other charges(344)— (344)n/m
Total operating income$374 $434 $(60)(14)%
n/m = not meaningful

Operating Segments

Completion and Production
Completion and Production revenue in the second quarter of 2022 was $2.9 billion, an increase of $863 million, or 42%, when compared to the second quarter of 2021. Operating income in the second quarter of 2022 was $499 million, an increase of $182 million, or 57%, when compared to the second quarter of 2021. These results were driven by increased pressure pumping services, artificial lift activity, and completion tool sales in the Western Hemisphere and Saudi Arabia, higher cementing services in Middle East/Asia, and improved well intervention services in North America land. These improvements were partially offset by lower completion tool sales in Norway and Malaysia, and decreased pipeline services in China, the United Kingdom, and Russia.

Drilling and Evaluation
Drilling and Evaluation revenue in the second quarter of 2022 was $2.2 billion, an increase of $504 million, or 30%, when compared to the second quarter of 2021. Operating income in the second quarter of 2022 was $286 million, an increase of $111 million, or 63%, when compared to the second quarter of 2021. These results were due to increased drilling-related services, wireline services, and testing services globally, and higher project management services in Latin America and Middle East/Asia. Partially offsetting these increases were lower activity in multiple product service lines in Russia and Norway.

Geographic Regions

North America
North America revenue in the second quarter of 2022 was $2.4 billion, a 55% increase compared to the second quarter of 2021. This increase was primarily driven by increased pricing, and pressure pumping activity and drilling-related services in the region, mainly North America land. These increases were partially offset by reduced project management services in the Gulf of Mexico.
HAL Q2 2022 FORM 10-Q | 19

Part I. Item 2 | Results of Operations in 2022 Compared to 2021 (QTD)


Latin America
Latin America revenue in the second quarter of 2022 was $758 million, a 42% increase compared to the second quarter of 2021 due to improved activity across multiple product service lines in Argentina, Colombia, Mexico, Ecuador, Brazil, and Guyana. Partially offsetting these increases were reduced pressure pumping services and completion tool sales in Trinidad and lower drilling-related services in Bolivia.

Europe/Africa/CIS
Europe/Africa/CIS revenue in the second quarter of 2022 was $718 million, a 6% increase from 2021, as tight oil production risescompared to the second quarter of 2021. This improvement was primarily driven by higher activity across multiple product service lines in West Africa, Egypt, and Angola, and increased drilling-related activity and completion tool sales in Azerbaijan. These increases were partially offset by reduced activity across multiple product service lines in Russia and Norway, and reduced testing services and completion tool sales in Algeria.

Middle East/Asia
Middle East/Asia revenue in the second quarter of 2022 was $1.2 billion, a 27% increase compared to the second quarter of 2021, resulting from increased activity across multiple product lines in Saudi Arabia, Kuwait, India, and Australia, increased drilling-related services in Oman, and increased fluid and wireline services in United States. The EIA anticipates that production will growArab Emirates. These increases were partially offset by reduced stimulation services in Oman, lower pipeline services in China, and lower completion tool sales in Malaysia.

Other Operating Items

Impairments and other charges. During the three months ended June 30, 2022, we recognized a pre-tax charge of $344 million, related to the write down of all our net assets in Russia as a result of operators increasing rig counts, which are expectedour decision to more than offset production decline rates.market our Russia operations for sale due to the additional sanctions enacted against Russia arising from the conflict in Ukraine. See Note 2 to the condensed consolidated financial statements for further discussion on these charges.

In spite of COVID-19 interruptions from mobility restrictions and daily precautions continuing to remain in place, business activity around the world has adjusted and continues to improve. We expect the balancing of global supply and demand to continue to tighten, resulting in a strong commodity price environment. In the international markets, activity increases continued in the third quarter of 2021 and we believe activity will accelerate into year-end. In North America, the bifurcation between publicly traded and private exploration and production (E&Ps) company activity continued in the third quarter of 2021. Publicly traded E&Ps generally remain committed to their spending plans for 2021, while private E&Ps, which operate about 60% of the U.S. land rig count, are generally increasing activity in an effort to continue to take advantage of a stronger commodity price environment. Drilled but uncompleted well counts (DUCs) in North America reached the lowest level since 2013, as operators depleted the surplus of DUCs accumulated in 2020. Next year we expect North America E&Ps to drill and complete more new wells to offset steep base decline rates and deliver production into the market. In North America, we expect moderate pricing and activity improvements in drilling and completions to drive further growth in the fourth quarter of 2021.Nonoperating Items

InEffective tax rate. During the three months ended June 30, 2022, we expect international activity momentumrecorded a total income tax provision of $114 million on a pre-tax income of $231 million, resulting in an effective tax rate of 49.3% for the quarter. The effective tax rate was higher primarily due to acceleratethe impact of the decision to sell our Russian operations and international pricing to move highera corresponding increase in certain geographies asthe valuation allowance on foreign tax credits. During the three months ended June 30, 2021, we recorded a resulttotal income tax provision of higher activity. While large tenders remain competitive, we are already seeing modest price increases$65 million on discrete worka pre-tax income of $295 million, resulting in underserved markets. In North America, we expect E&P spending to increase, including net pricing gainsan effective tax rate of 22.0% for not only our low-emissions equipment but also the rest of our fracturing fleet and for our drilling, cementing, drill bits, and artificial lift businesses.quarter.

HAL Q3 2021Q2 2022 FORM 10-Q | 1920

Part I. Item 2 | Results of Operations in 20212022 Compared to 2020 (QTD)2021 (YTD)

RESULTS OF OPERATIONS IN 2021 COMPARED TO 2020

ThreeSix Months Ended SeptemberJune 30, 20212022 Compared with ThreeSix Months Ended SeptemberJune 30, 20202021

Revenue:Three Months Ended
September 30
FavorablePercentage
Millions of dollars20212020(Unfavorable)Change
Completion and Production$2,136 $1,574 $562 36 %
Drilling and Evaluation1,724 1,401 323 23 
Total revenue$3,860 $2,975 $885 30 %
By geographic region:
North America$1,615 $984 $631 64 %
Latin America624 380 244 64 
Europe/Africa/CIS676 649 27 
Middle East/Asia945 962 (17)(2)
Total revenue$3,860 $2,975 $885 30 %
Operating income:Three Months Ended
September 30
FavorablePercentage
Millions of dollars20212020(Unfavorable)Change
Completion and Production$322 $212 $110 52 %
Drilling and Evaluation186 105 81 77 
Total508 317 191 60 
Corporate and other(50)(42)(8)(19)
Impairments and other charges(12)(133)121 n/m
Total operating income$446 $142 $304 214%
n/m = not meaningful

Consolidated revenue was $3.9 billion in the third quarter of 2021, an increase of $885 million, or 30%, as compared to the third quarter of 2020. Consolidated operating income was $446 million during the third quarter of 2021, a $304 million increase from operating income of $142 million during the third quarter of 2020. The increase in revenue was primarily driven by higher activity and pricing for pressure pumping services and increases across multiple other product service lines in North America land and Latin America, as well as additional artificial lift activity in North America land. The Middle East/Asia region grew drilling-related services and project management activity, the Europe/Africa/CIS region improved cementing activity, wireline activity, testing services, and well intervention, while pipeline services increased in China and Russia. Partially offsetting these increases were lower completion tool sales in the Eastern Hemisphere, less stimulation activity in the Middle East/Asia, and decreased completion tool sales and stimulation activity in Canada. The increase in operating income was due in part to the negative impact on third quarter 2020 operating income from $133 million of impairments and other charges that were included in the results of that quarter, while the third quarter of 2021 benefited from higher commodity prices driving increased activity, higher utilization, and improved operating leverage from the structural cost reductions we implemented during 2020. Revenue from North America was 42% of consolidated revenue in the third quarter of 2021 compared to 33% of consolidated revenue in the third quarter of 2020.
Six Months Ended
June 30
FavorablePercentage
Millions of dollars20222021(Unfavorable)Change
Revenue:
By operating segment:
Completion and Production$5,264 $3,918 $1,346 34 %
Drilling and Evaluation4,094 3,240 854 26 
Total revenue$9,358 $7,158 $2,200 31 %
By geographic region:
North America$4,351 $2,973 $1,378 46 %
Latin America1,411 1,069 342 32 
Europe/Africa/CIS1,395 1,313 82 
Middle East/Asia2,201 1,803 398 22 
Total revenue$9,358 $7,158 $2,200 31 %
Operating income:
By operating segment:
Completion and Production$795 $569 $226 40 %
Drilling and Evaluation580 346 234 68 
Total$1,375 $915 $460 50 
Corporate and other(124)(111)$(13)(12)%
Impairments and other charges(366)— (366)n/m
Total operating income$885 $804 $81 10 %
n/m = not meaningful

Operating Segments

Completion and Production
Completion and Production revenue in the third quarterfirst six months of 20212022 was $2.1$5.3 billion, an increase of $562 million,$1.3 billion, or 36%34%, when compared to the third quarterfirst six months of 2020, while operating2021. Operating income in the first six months of 2022 was $322$795 million, an increase of $110$226 million, or 52%.40%, compared to the first six months of 2021. These resultsincreases were primarily due to an increasedriven by higher utilization in pressure pumping services globally and increased completion tool sales in the Western Hemisphere and Saudi Arabia. Also increasing were artificial lift activity in North America land, asand well as multiple product service linesintervention services mostly in LatinNorth America land and additionalEurope/Africa/CIS. Partially offsetting these increases were lower completion tool sales in the Western Hemisphere. In addition, well intervention services increased globally,Norway and Malaysia, and decreased pipeline services improved in China, the United Kingdom, and Russia, and pressure pumping
HAL Q3 2021 FORM 10-Q | 20

Part I. Item 2 | Results of Operations in 2021 Compared to 2020 (QTD)
services increased in Europe/Africa/CIS. Partially offsetting the overall increase were decreased completion tool sales in the Eastern Hemisphere and Canada, and lower stimulation activity in Middle East/Asia region and Canada.Russia.

Drilling and Evaluation
Drilling and Evaluation revenue in the third quarterfirst six months of 20212022 was $1.7$4.1 billion, an increase of $323$854 million, or 23% when26%, compared to the third quarterfirst six months of 2020, while operating2021. Operating income in the first six months of 2022 was $186$580 million, an increase of $81$234 million, or 77%.68%, compared to the first six months of 2021. These results were primarily driven by increases inrelated to increased drilling-related services, wireline activity, project management activity, and testing services in the Western Hemisphere, higher drilling-related services across the Middle East/Asia, region, the United Kingdom,West Africa, Azerbaijan, and Nigeria, along withEgypt, higher fluid services in Russia. Also, project managementwireline activity rose in the Middle East, and testing services and wireline activity increased in Europe/Africa/CIS. Partially offsetting the increases were decreases in drilling-related services in Norway,Western Hemisphere, Saudi Arabia, and Asia, lowerUnited Arab Emirates, higher project management activity in India, lower wireline activity in Saudi Arabia, the United Kingdom,Colombia and Australia, and less drilling activityEcuador, along with increased testing services in the United Arab Emirates.

Geographic Regions

North America
North America revenue in the third quarter of 2021 was $1.6 billion, a 64% increase compared to the third quarter of 2020. This increase was primarily due to increased activity across multiple product service lines in North America landEastern Hemisphere and the Gulf of Mexico, as well as increased drilling services in Canada. Partially offsetting these increases were lower pressure pumping services and completion tool sales in Canada, and lower stimulation activity in the Gulf of Mexico.

Latin America
Latin America revenue in the third quarter of 2021 was $624 million, a 64% increase compared to the third quarter of 2020, resulting from increased activity across multiple product service lines in Argentina, Mexico, and Brazil, additional fluid services and completion tool sales in Guyana, higher well construction activity, well intervention services, and wireline activity in Colombia, and improved project management and well construction activity in Ecuador.America. Partially offsetting these increases were reduced completion tool sales in Trinidad.

Europe/Africa/CIS
Europe/Africa/CIS revenue in the third quarter of 2021 was $676 million, a 4% increase compared to the third quarter of 2020, resulting primarily from increased activity across multiple product service lines in West Africa, Angola, and Mozambique, additional fluid activity and pipelinedrilling-related services in Russia improved well construction activity in the United Kingdom, and higher well intervention services across the region. Partially offsetting these increases were lower drilling-related services in Norway, decreases in multiple product service lines in Azerbaijan, and lower completion tool sales in the United Kingdom, Algeria and Russia.

Middle East/Asia
Middle East/Asia revenue in the third quarter of 2021 was $945 million, a 2% decrease compared to the third quarter of 2020, largely resulting from a decline in completion tool sales across the region, lower activity across multiple product service lines in the United Arab Emirates, India, Saudi Arabia, Kuwait, and Indonesia, and declines in stimulation and wireline activity in Australia. Partially offsetting these declines were higher project management activity in Oman, Saudi Arabia, and Iraq, increased well construction activity in Australia, additional fluids activity in the Middle East, and improved pipeline services in China.

Other Operating Items

Impairments and other charges. During the three months ended September 30, 2021, we recognized $12 million of special charges. This includes $36 million of depreciation catch-up expense related to assets previously classified as held for sale related to our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain related to the closing of the structured transaction for our North America real estate assets. During the three months ended September 30, 2020, we recognized $133 million of severance costs and other charges to further adjust our cost structure to market conditions. See Note 2 to the condensed consolidated financial statements for further discussion on the third quarter of 2021 charges.Iraq.

HAL Q3 2021Q2 2022 FORM 10-Q | 21

Part I. Item 2 | Results of Operations in 20212022 Compared to 2020 (QTD)
Nonoperating Items

Effective tax rate. During the three months ended September 30, 2021 we recorded a total income tax provision of $76 million on a pre-tax income of $316 million, resulting in an effective tax rate of 24% for the quarter. During the three months ended September 30, 2020, we recorded a total income tax provision of $18 million on a pre-tax loss of $1 million, resulting in an unusually high negative effective tax rate for the quarter.
HAL Q3 2021 FORM 10-Q | 22


Part I. Item 2 | Results of Operations in 2021 Compared to 2020 (YTD)

Nine Months Ended September 30, 2021 Compared with Nine Months Ended September 30, 2020
Revenue:Nine Months Ended
September 30
FavorablePercentage
Millions of dollars20212020(Unfavorable)Change
Completion and Production$6,054 $6,029 $25 — %
Drilling and Evaluation4,964 5,179 (215)(4)
Total revenue$11,018 $11,208 $(190)(2)%
By geographic region:
North America$4,588 $4,493 $95 %
Latin America1,693 1,242 451 36 
Europe/Africa/CIS1,989 2,171 (182)(8)
Middle East/Asia2,748 3,302 (554)(17)
Total revenue$11,018 $11,208 $(190)(2)%
Operating income (loss):Nine Months Ended
September 30
FavorablePercentage
Millions of dollars20212020(Unfavorable)Change
Completion and Production$891 $713 $178 25 %
Drilling and Evaluation532 452 80 18 
Total1,423 1,165 258 22 
Corporate and other(161)(152)(9)(6)
Impairments and other charges(12)(3,353)3,341 n/m
Total operating income (loss)$1,250 $(2,340)$3,590 153 %
n/m = not meaningful

Consolidated revenue was $11.0 billion in the first nine months of 2021, a decrease of $190 million, or 2%, as compared to the first nine months of 2020. We reported operating income of $1.3 billion in the first nine months of 2021 compared to an operating loss of $2.3 billion during the first nine months of 2020. The decrease in revenue was primarily driven by lower activity associated with completion tool sales globally, except in Latin America, drilling-related services, project management activity, wireline activity, and testing services in the Eastern Hemisphere, and pressure pumping services in Middle East/Asia. Partially offsetting the decreases were increases in stimulation and artificial lift activity in the Western Hemisphere, improved activity across multiple product service lines in Latin America, and higher pipeline services in Asia and the United Kingdom. Operating results in the first nine months of 2020 included $3.4 billion of impairments and other charges while the first nine months of 2021 benefited from higher commodity pricing driving increased activity, higher utilization, and operating leverage from 2020 structural cost reductions. Revenue from North America was 42% of consolidated revenue in the first nine months of 2021, compared to 40% of consolidated revenue in the first nine months of 2020.

Operating Segments

Completion and Production
Completion and Production revenue in the first nine months of 2021 was $6.1 billion, an increase of $25 million compared to the first nine months of 2020. This increase was primarily driven by a rise in stimulation and artificial lift activity in the Western Hemisphere, higher pipeline services in China and the United Kingdom, and well intervention services in Latin America. Partially offsetting these increases were decreased pressure pumping services in Middle East/Asia and lower completion tool sales globally. Operating income in the first nine months of 2021 was $891 million, an increase of $178 million, or 25%, compared to the first nine months of 2020, mainly driven by higher utilization for pressure pumping in North America land and Latin America, increased well intervention services in Latin America and Middle East/Asia, and improved artificial lift activity in North America land. Partially offsetting these increases to operating income were lower completion tool sales in the Eastern Hemisphere, the Gulf of Mexico, and Canada.

HAL Q3 2021 FORM 10-Q | 23


Part I. Item 2 | Results of Operations in 2021 Compared to 2020 (YTD)
Drilling and Evaluation
Drilling and Evaluation revenue in the first nine months of 2021 was $5.0 billion, a decrease of $215 million, or 4%, compared to the first nine months of 2020, primarily related to reduced drilling-related services in the Eastern Hemisphere, wireline activity in the Eastern Hemisphere and North America land, and decreased project management activity in Iraq, India, and Europe/Africa/CIS. Also, testing services were reduced in Saudi Arabia and software sales declined globally. Partially offsetting these decreases were increased fluid services in North America land and Latin America, improved drilling services in Canada and Brazil, and increased wireline activity in Argentina. Operating income in the first nine months of 2021 was $532 million, an increase of $80 million, or 18%, compared to the first nine months of 2020 based in part on improved margins related to project management activity in India and Saudi Arabia, as well as higher drilling-related services in the Western Hemisphere and wireline activity in Latin America. Offsetting these operating income improvements was a global reduction of software sales.

Geographic Regions

North America
North America revenue in the first ninesix months of 20212022 was $4.6$4.4 billion, a 2%46% increase compared to the first ninesix months of 2020,2021, driven by higher activity and pricing across the region, primarily associated with stimulationpressure pumping activity, drilling-related services, and drilling-related services. Artificialcompletion tool sales, improved artificial lift activity improved in North America land and project managementCanada, and increased wireline activity increased in North America land and the Gulf of Mexico. ThesePartially offsetting these increases were partially offset by lower completion toolsoftware sales across the region, along with reduced cementing and wireline activity.region.

Latin America
Latin America revenue in the first ninesix months of 20212022 was $1.7$1.4 billion, a 36%32% increase compared to the first ninesix months of 2020,2021, resulting primarily from an increaseincreases across multiple product service lines in Argentina and Colombia, increased fluidwell construction services and stimulation activity in Brazil and Mexico, as well as higher wireline activity across the Caribbean, along with improved stimulation activity, completion tool sales, testing services, andregion. Also improving were project management activity in Mexico, additional drilling servicesEcuador and completion tool sales in Brazil, and increased well intervention services in Brazil and Colombia.Guyana. Partially offsetting these increases were lower completion tool salesproject management activity in the CaribbeanMexico and lower software saleswell intervention services in Brazil.

Europe/Africa/CIS
Europe/Africa/CIS revenue in the first ninesix months of 2022 was $1.4 billion, a 6% increase compared to the first six months of 2021, was $2.0 billion, an 8% decrease from the first nine months of 2020, driven by a decreaseincreases across multiple product service lines in Russia,Azerbaijan, Egypt, and Eastern Mediterranean, along with increased cementing services in Angola. Well intervention services and testing services increased across the North Sea, Azerbaijan, and Nigeria.region, coupled with higher fluid services in West Africa. These declinesincreases were partially offset by an increasedecreases in completion tool salesmultiple product service lines in Russia, Norway, and increased pipeline services in the the United Kingdom and Russia, testing services in Algeria, and a slight improvement in stimulation activitylower software sales across the region.

Middle East/Asia
Middle East/Asia revenue in the first ninesix months of 2022 was $2.2 billion, a 22% increase compared to the first six months of 2021, was $2.7 billion, a 17% decrease from the first nine months of 2020, resulting primarily from reducedincreased activity across multiple product service lines in Saudi Arabia, andKuwait, United Arab Emirates, lower pressure pumping services,Australia, and India, higher drilling-related services and completion tool sales across the region, reduced project management activity in Iraq and India, and decreases inOman, along with improved wireline activity in Malaysia.across the region. Partially offsetting these decreasesincreases were improved pipeline serviceslower completion tool sales in ChinaMalaysia and drilling servicesproject management activity in Australia.Iraq.

Other Operating Items

Impairments and other charges. During the ninesix months ended SeptemberJune 30, 2021,2022, we recognized $12a pre-tax charge of $366 million, of special items. This includes $36 million of depreciation catch-up expenseprimarily related to a $344 million write down of all our net assets previously classifiedin Russia as helda result of our decision to market our Russia operations for sale related to our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain relateddue to the closing ofadditional sanctions enacted against Russia arising from the structured transaction for our North America real estate assets. This compares to $3.4 billion of impairments and other chargesconflict in Ukraine in the nine months ended September 30, 2020second quarter of 2022. In the first quarter of 2022, we recognized a pre-tax charge of $22 million to further adjustwrite down all of our cost structureassets in Ukraine, including $16 million in receivables, due to market conditions. These charges consisted primarily of asset impairments, mostly associated with pressure pumping equipmentthe ongoing conflict between Russia and real estate facilities, as well as inventory write-offs, severance costs, and other charges.Ukraine. See Note 2 to the condensed consolidated financial statements for further discussion on the third quarter of 2021these charges.

HAL Q3 2021 FORM 10-Q | 24Nonoperating Items


Table of ContentsLoss on early extinguishment of debt. During the six months ended June 30, 2022, we recorded a $42 million loss on the early redemption of $600 million aggregate principal amount of our 3.8% senior notes, which included premiums and unamortized expenses. See Note 6 to the condensed consolidated financial statements for further information.
Part I. Item 2 | Results of Operations in 2021 Compared to 2020 (YTD)
Nonoperating Items

Effective tax rate. During the ninesix months ended SeptemberJune 30, 2022, we recorded a total income tax provision of $182 million on a pre-tax income of $563 million, resulting in an effective tax rate of 32.2%. The effective tax rate was higher primarily due to the impact of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits. During the six months ended June 30, 2021, we recorded a total income tax provision of $193$117 million on a pre-tax income of $834$518 million, resulting in an effective tax rate of 23.2%22.6%. During the nine months ended September 30, 2020, we recorded a total income tax benefit of $265 million on pre-tax loss of $3.0 billion, resulting in an effective tax rate of 8.9%. The unusual rate for the nine months ended September 30, 2020 was largely the result of recording a valuation allowance against certain deferred tax assets in the first quarter of 2020, primarily due to the unprecedented disruption in the oil and gas industry.
HAL Q3 2021Q2 2022 FORM 10-Q | 2522

Part I. Item 2 | Forward-Looking Information
FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form 10-Q are forward-looking and use words like “may,” “may not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,” “should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in other materials we release to the public. Forward-looking information involves risk and uncertainties and reflects our best judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may vary materially.

We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether factors change as a result of new information, future events or for any other reason. You should review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC. We also suggest that you listen to our quarterly earnings release conference calls with financial analysts.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative Disclosures About Market Risk,” in our 20202021 Annual Report on Form 10-K. Our exposure to market risk has not changed materially since December 31, 2020.2021.

Item 4. Controls and Procedures

In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of SeptemberJune 30, 20212022 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during the quarter ended SeptemberJune 30, 20212022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

HAL Q3 2021Q2 2022 FORM 10-Q | 2623

Part II. Item 1 | Legal Proceedings
PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information related to Item 1. Legal Proceedings is included in Note 89 to the condensed consolidated financial statements.

Item 1(a). Risk Factors

The statements in this section describe the known material risks to our business and should be considered carefully. As of September 30, 2021, there have been no material changes inThe risk factor below updates our risk factors previously discloseddiscussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Our operations outside the United States require us to comply with a number of United States and international regulations, violations of which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Our operations outside the United States require us to comply with a number of United States and international regulations. For example, our operations in countries outside the United States are subject to the United States Foreign Corrupt Practices Act (FCPA), which prohibits United States companies and their agents and employees from providing anything of value to a foreign official for the purposes of influencing any act or decision of these individuals in their official capacity to help obtain or retain business, direct business to any person or corporate entity, or obtain any unfair advantage. Our activities create the risk of unauthorized payments or offers of payments by our employees, agents, or joint venture partners that could be in violation of anti-corruption laws, even though some of these parties are not subject to our control. We have internal control policies and procedures and have implemented training and compliance programs for our employees and agents with respect to the FCPA. However, we cannot assure that our policies, procedures, and programs will always protect us from reckless or criminal acts committed by our employees or agents. We are also subject to the risks that our employees, joint venture partners, and agents outside of the United States may fail to comply with other applicable laws. Allegations of violations of applicable anti-corruption laws have resulted and may in the future result in internal, independent, or government investigations. Violations of anti-corruption laws may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.

In addition, the shipment of goods, services, and technology across international borders subjects us to extensive trade laws and regulations. Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Moreover, many countries, including the United States, control the export, re-export, and in-country transfer of certain goods, services, and technology and impose related export recordkeeping and reporting obligations. Governments may also impose economic sanctions against certain countries, persons, and entities that may restrict or prohibit transactions involving such countries, persons, and entities, which may limit or prevent our conduct of business in certain jurisdictions. During 2014, the United States and European Union imposed sectoral sanctions directed at Russia’s oil and gas industry. Among other things, these sanctions restrict the provision of United States and European Union goods, services, and technology in support of exploration or production for deep water, Arctic offshore, or shale projects that have the potential to produce oil in Russia. These sanctions resulted in our winding down and ending work on two projects in Russia in 2014 and have prevented us from pursuing certain other projects in Russia. In 2017 and 2018, the U.S. Government imposed additional sanctions against Russia, Russia’s oil and gas industry, and certain Russian companies.

In February of 2022, Russia invaded Ukraine and is still engaged in active armed conflict against the country. As a result, governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries have enacted additional sanctions against Russia and Russian interests. These sanctions include controls on the export, re-export, and in-country transfer in Russia of certain goods, supplies, and technologies, including some that we use in our business in Russia, and the imposition of restrictions on doing business with certain state-owned Russian customers and other investments and business activities in Russia. In order to comply with these sanctions, we ceased pursuing future business in Russia and began to wind down our remaining operations in Russia in March of 2022. During the second quarter of 2022, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria and as a result, we wrote down the disposal group to fair value less costs to sell, resulting in a pre-tax charge of $344 million. See Note 2 to our condensed consolidated financial statements for additional information.
HAL Q2 2022 FORM 10-Q | 24

Part II. Item 1(a) | Risk Factors

The invasion of and ongoing conflict in Ukraine will likely continue to cause disruption and instability in Russia, Ukraine, and other markets in which we operate. Litigation may result, both by us in the event of any expropriation or nationalization of our assets and by others against us as a result of our wind down due to sanctions compliance. We may also incur employee severance costs in connection with the wind down. It is not possible at this time to predict the ultimate consequences of the conflict in Ukraine or the responses of governments or others to the conflict, which could include, among other things, additional sanctions, greater regional instability or expansion of the conflict, embargoes, geopolitical shifts, litigation, and impacts on macroeconomic conditions, commodities, currency exchange rates, supply chains, and financial markets.

The U.S. Government imposed sanctions against Venezuela that have effectively required us to discontinue our operations there. Consequently, in connection with us winding down our operations in Venezuela, we wrote down all of our remaining investment in Venezuela in 2020. As of December 29, 2020, we no longer had any employees in Venezuela, although we continue to maintain our local entity, facilities, and equipment in-country, as permitted under applicable law. We are not currently conducting any other operational activities in Venezuela.

The laws and regulations concerning import activity, export recordkeeping and reporting, export control and economic sanctions are complex and constantly changing. These laws and regulations can cause delays in shipments and unscheduled operational downtime. Moreover, any failure to comply with applicable legal and regulatory trading obligations could result in criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from governmental contracts, seizure of shipments, and loss of import and export privileges. In addition, we may be subject to investigations by governmental authorities.

Our activities outside of the United States, including in Russia, Ukraine, and Venezuela, expose us to various legal, social, economic, and political issues which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.

HAL Q2 2022 FORM 10-Q | 25

Part II. Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Following is a summary of our repurchases of our common stock during the three months ended SeptemberJune 30, 2021.2022.
PeriodPeriodTotal Number
of Shares Purchased (a)
Average
Price Paid per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans or Programs (b)
Maximum
Number (or
Approximate
Dollar Value) of
Shares that may yet
be Purchased Under the Program (b)
PeriodTotal Number
of Shares Purchased (a)
Average
Price Paid per Share
Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans or Programs (b)
Maximum
Number (or
Approximate
Dollar Value) of
Shares that may yet
be Purchased Under the Program (b)
July 1 - 31263,935 $21.71$5,100,008,081
August 1 - 3198,979 $20.34$5,100,008,081
September 1 - 3032,529 $20.54$5,100,008,081
April 1 - 30April 1 - 3018,612 $40.17$5,100,008,081
May 1 - 31May 1 - 31279,611 $36.81$5,100,008,081
June 1 - 30June 1 - 30300,701 $40.12$5,100,008,081
TotalTotal395,443 $21.27Total598,924 $38.58
(a)(a)All of the 395,443 shares purchased during the three-month period ended September 30, 2021 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of our publicly announced program to repurchase common stock.(a)All of the 598,924 shares purchased during the three-month period ended June 30, 2022 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of our publicly announced program to repurchase common stock.
(b)(b)Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of September 30, 2021. From the inception of this program in February of 2006 through September 30, 2021, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. We did not repurchase any shares under this program during the three months ended September 30, 2021.(b)Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of June 30, 2022. From the inception of this program in February of 2006 through June 30, 2022, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. We did not repurchase any shares under this program during the three months ended June 30, 2022.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Our barite and bentonite mining operations, in support of our fluids services business, are subject to regulation by the federal U.S. Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this quarterly report.

Item 5. Other Information

None.

HAL Q3 2021Q2 2022 FORM 10-Q | 2726

Part II. Item 6 | Exhibits
Item 6. Exhibits
10.1
10.2
10.3
*31.1
  
*31.2
  
**32.1
  
**32.2
  
*95
*101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
*101.SCHXBRL Taxonomy Extension Schema Document
*101.CALXBRL Taxonomy Extension Calculation Linkbase Document
*101.LABXBRL Taxonomy Extension Label Linkbase Document
*101.PREXBRL Taxonomy Extension Presentation Linkbase Document
*101.DEFXBRL Taxonomy Extension Definition Linkbase Document
*104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
 *Filed with this Form 10-Q.
 **Furnished with this Form 10-Q.
Management contracts or compensatory plans or arrangements.

HAL Q3 2021Q2 2022 FORM 10-Q | 2827

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/ Lance LoefflerEric J. Carre/s/ Charles E. Geer, Jr.
Lance LoefflerEric J. CarreCharles E. Geer, Jr.
Executive Vice President andSenior Vice President and
Chief Financial OfficerChief Accounting Officer


Date: OctoberJuly 22, 20212022

HAL Q3 2021Q2 2022 FORM 10-Q | 2928