hal-20240630

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 June 30, 2024


☐			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)


Delaware			75-2677995
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


3000 North Sam Houston Parkway East,	Houston,	Texas	77032
(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 class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2.50 per share	HAL	New 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 Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller 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 July 22, 2024, there were 882,828,515 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

HALLIBURTON COMPANY

Index


		Page No.
PART I.	FINANCIAL INFORMATION	1

Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
	Note 1. Basis of Presentation	5

	Note 2. Business Segment Information	5
	Note 3. Revenue	6
	Note 4. Inventories	8
	Note 5. Accounts Payable	8
	Note 6. Income Taxes	8
	Note 7. Shareholders' Equity	9
	Note 8. Commitments and Contingencies	10
	Note 9. Income per Share	11
	Note 10. Fair Value of Financial Instruments	11


	Note 11. Subsequent Event	11

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
	Executive Overview	12
	Liquidity and Capital Resources	15
	Business Environment and Results of Operations	17
	Results of Operations in 2024 Compared to 2023 (QTD)	19
	Results of Operations in 202 4 Compared to 202 3 (YTD)	22
	Forward-Looking Information	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II.	OTHER INFORMATION	25

Item 1.	Legal Proceedings	25
Item 1(a).	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	27
Item 6.	Exhibits	28

SIGNATURES		29


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,
Millions of dollars and shares except per share data		2024		2023		2024		2023
Revenue:
Services		$	4,215	$	4,181	$	8,361	$	8,347
Product sales		1,618		1,617		3,276		3,128
Total revenue		5,833		5,798		11,637		11,475
Operating costs and expenses:
Cost of services		3,417		3,404		6,845		6,803
Cost of sales		1,293		1,316		2,587		2,563
General and administrative		62		54		123		108

SAP S4 upgrade expense		29		13		63		13
Total operating costs and expenses		4,801		4,787		9,618		9,487
Operating income		1,032		1,011		2,019		1,988
Interest expense, net of interest income of $22, $18, $44, and $35		(92)		(102)		(184)		(203)
Loss on Blue Chip Swap transactions		—		(104)		—		(104)


Other, net		(20)		(22)		(128)		(69)
Income before income taxes		920		783		1,707		1,612
Income tax provision		(207)		(167)		(385)		(341)


Net income		$	713	$	616	$	1,322	$	1,271
Net income attributable to noncontrolling interest		(4)		(6)		(7)		(10)
Net income attributable to company		$	709	$	610	$	1,315	$	1,261













Basic net income per share		$	0.80	$	0.68	$	1.48	$	1.40
Diluted net income per share		$	0.80	$	0.68	$	1.48	$	1.39
Basic weighted average common shares outstanding		884		901		886		902
Diluted weighted average common shares outstanding		886		903		888		905
	See notes to condensed consolidated financial statements.

HAL Q2 2024 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,
Millions of dollars		2024		2023		2024		2023
Net income		$	713	$	616	$	1,322	$	1,271




Other comprehensive income, net of income taxes		—		1		—		2
Comprehensive income		$	713	$	617	$	1,322	$	1,273
Comprehensive income attributable to noncontrolling interest		(4)		(6)		(8)		(10)
Comprehensive income attributable to company shareholders		$	709	$	611	$	1,314	$	1,263
	See notes to condensed consolidated financial statements.

HAL Q2 2024 FORM 10-Q | 2


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Unaudited)


Millions of dollars and shares except per share data		June 30, 2024		December 31, 2023
Assets
Current assets:
Cash and equivalents		$	2,138	$	2,264
Receivables (net of allowances for credit losses of $752 and $742)		5,327		4,860
Inventories		3,282		3,226


Other current assets		1,131		1,193
Total current assets		11,878		11,543
Property, plant, and equipment (net of accumulated depreciation of $12,371 and $12,064)		5,073		4,900
Goodwill		2,858		2,850
Deferred income taxes		2,420		2,505
Operating lease right-of-use assets		1,026		1,088
Other assets		1,897		1,797
Total assets		$	25,152	$	24,683
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	3,295	$	3,147
Accrued employee compensation and benefits		619		689
Income tax payable		402		390
Taxes other than income		294		370
Current portion of operating lease liabilities		258		262

Other current liabilities		708		750
Total current liabilities		5,576		5,608
Long-term debt		7,638		7,636
Operating lease liabilities		832		911
Employee compensation and benefits		375		408
Other liabilities		685		687
Total liabilities		15,106		15,250
Shareholders’ equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,065 shares)		2,663		2,663
Paid-in capital in excess of par value		—		63
Accumulated other comprehensive loss		(332)		(331)
Retained earnings		13,450		12,536
Treasury stock, at cost (182 and 176 shares)		(5,781)		(5,540)
Company shareholders’ equity		10,000		9,391
Noncontrolling interest in consolidated subsidiaries		46		42
Total shareholders’ equity		10,046		9,433
Total liabilities and shareholders’ equity		$	25,152	$	24,683
	See notes to condensed consolidated financial statements.

HAL Q2 2024 FORM 10-Q | 3


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Six Months Ended June 30,
Millions of dollars		2024		2023
Cash flows from operating activities:
Net income		$	1,322	$	1,271
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation, depletion, and amortization		534		486


Changes in assets and liabilities:
Receivables		(496)		(337)

Inventories		(45)		(318)
Accounts payable		176		66
Other operating activities		77		6
Total cash flows provided by operating activities		1,568		1,174
Cash flows from investing activities:
Capital expenditures		(677)		(571)

Purchases of investment securities		(282)		(270)
Payments to acquire businesses, net of cash acquired		(22)		(12)
Sales of investment securities		123		103
Proceeds from sales of property, plant, and equipment		108		90

Other investing activities		(24)		(36)
Total cash flows used in investing activities		(774)		(696)
Cash flows from financing activities:
Stock repurchase program		(500)		(348)
Dividends to shareholders		(302)		(289)



Other financing activities		(36)		(7)
Total cash flows used in financing activities		(838)		(644)
Effect of exchange rate changes on cash		(82)		(75)
Decrease in cash and equivalents		(126)		(241)
Cash and equivalents at beginning of period		2,264		2,346
Cash and equivalents at end of period		$	2,138	$	2,105
Supplemental disclosure of cash flow information:
Cash payments during the period for:
Interest		$	218	$	228
Income taxes		$	283	$	388
	See notes to condensed consolidated financial statements.

HAL Q2 2024 FORM 10-Q | 4


Table of Contents			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 United States generally accepted accounting principles (U.S. GAAP) 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 U.S. GAAP for annual financial statements and should be read together with our 2023 Annual Report on Form 10-K.

Our accounting policies are in accordance with U.S. GAAP. 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 June 30, 2024 and the results of our operations for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. 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 six months ended June 30, 2024 may not be indicative of results for the full year.

Note 2. Business Segment Information

We operate under two divisions, which form the basis for the two 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.

HAL Q2 2024 FORM 10-Q | 5


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

The following table presents information on our business segments.


		Three Months Ended June 30,				Six Months Ended June 30,
Millions of dollars		2024		2023		2024		2023
Revenue:
Completion and Production		$	3,401	$	3,476	$	6,774	$	6,885
Drilling and Evaluation		2,432		2,322		4,863		4,590
Total revenue		$	5,833	$	5,798	$	11,637	$	11,475
Operating income:
Completion and Production		$	723	$	707	$	1,411	$	1,373
Drilling and Evaluation		403		376		801		745
Total operations		1,126		1,083		2,212		2,118
Corporate and other (a)		(65)		(59)		(130)		(117)
SAP S4 upgrade expense		(29)		(13)		(63)		(13)

Total operating income		$	1,032	$	1,011	$	2,019	$	1,988
Interest expense, net of interest income		(92)		(102)		(184)		(203)
Loss on Blue Chip Swap transactions (b)		—		(104)		—		(104)


Other, net (c)		(20)		(22)		(128)		(69)
Income before income taxes		$	920	$	783	$	1,707	$	1,612

(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.

(b)	The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. Our execution of certain trades, known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate, resulted in a $104 million pre-tax loss during the three and six months ended June 30, 2023.

(c)	During the six months ended June 30, 2024, Halliburton incurred a charge of $82 million primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt.

Note 3. 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 two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 41% and 46% of our consolidated revenue was from the United States for the six months ended June 30, 2024 and 2023, respectively. No other country accounted for more than 10% of our revenue for those periods.

HAL Q2 2024 FORM 10-Q | 6


Table of Contents			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 dollars	2024		2023		2024		2023
Revenue by segment:
Completion and Production	$	3,401	$	3,476	$	6,774	$	6,885
Drilling and Evaluation	2,432		2,322		4,863		4,590
Total revenue	$	5,833	$	5,798	$	11,637	$	11,475
Revenue by geographic region:
North America	$	2,481	$	2,696	$	5,027	$	5,461
Latin America	1,097		994		2,205		1,909
Europe/Africa/CIS	757		698		1,486		1,360
Middle East/Asia	1,498		1,410		2,919		2,745
Total revenue	$	5,833	$	5,798	$	11,637	$	11,475

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 customers’ 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, was 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 the duration of the contract 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.

Receivables

As of June 30, 2024, 31% of our net trade receivables was from customers in the United States and 13% was from customers in Mexico. As of December 31, 2023, 33% of our net trade receivables was from customers in the United States and 9% was from customers in Mexico. Receivables from our primary customer in Mexico accounted for approximately 11% and 6% of our total receivables as of June 30, 2024 and December 31, 2023, respectively. While we have experienced payment delays from our primary customer in Mexico, the 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. No country other than the United States and Mexico or single customer accounted for more than 10% of our net trade receivables at those dates.

We have risk of delayed customer payments and payment defaults associated with customer liquidity 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 judgment and estimates, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

HAL Q2 2024 FORM 10-Q | 7


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 4. Inventories

Inventories consisted of the following:


Millions of dollars	June 30, 2024		December 31, 2023
Finished products and parts	$	2,063	$	2,069
Raw materials and supplies	1,070		1,021
Work in process	149		136
Total inventories	$	3,282	$	3,226

Note 5. Accounts Payable

Effective January 1, 2023, we adopted new supplier finance program disclosure requirements contained in guidance issued by the Financial Accounting Standards Board (ASU 2022-04, “Disclosure of Supplier Finance Program Obligations”). The standards update also includes a prospective annual requirement to disclose a rollforward of the amount of the supplier finance program obligations during the annual reporting period. We will include the rollforward disclosure in our Annual Report on Form 10-K for the year ending December 31, 2024, as required.

We have agreements with third parties that allow our participating suppliers to finance payment obligations from us with designated third-party financial institutions who act as our paying agent. We have generally extended our payment terms with suppliers to 90 days. A participating supplier may request a participating financial institution to finance one or more of our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to provide collateral to the financial institutions.

Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under these agreements were $302 million as of June 30, 2024, and $322 million as of December 31, 2023, and are included in accounts payable on the condensed consolidated balance sheets.

Note 6. Income Taxes

During the three months ended June 30, 2024, we recorded a total income tax provision of $207 million on a pre-tax income of $920 million, resulting in an effective tax rate of 22.5% for the quarter. During the three months ended June 30, 2023, we recorded a total income tax provision of $167 million on a pre-tax income of $783 million, resulting in an effective tax rate of 21.3% for the quarter.

During the six months ended June 30, 2024, we recorded a total income tax provision of $385 million on a pre-tax income of $1.7 billion, resulting in an effective tax rate of 22.6% for the period. During the six months ended June 30, 2023, we recorded a total income tax provision of $341 million on a pre-tax income of $1.6 billion, resulting in an effective tax rate of 21.1% for the period.

Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2012. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. The United States federal income tax filings for tax years 2016 through 2023 are currently under review or remain open for review by the Internal Revenue Service (the IRS).

As of June 30, 2024, the primary unresolved issue for the IRS audit for 2016 relates to the classification of the $3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016 for which we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We do not expect a final resolution of this issue in the next twelve months.

Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies within the next twelve months.

HAL Q2 2024 FORM 10-Q | 8


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 7. Shareholders’ Equity

The following tables summarize our shareholders’ equity activity for the three and six months ended June 30, 2024 and June 30, 2023, respectively:


Millions of dollars		Common Stock		Paid-in Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance at December 31, 2023		$	2,663	$	63	$	(5,540)	$	12,536	$	(331)	$	42	$	9,433
Comprehensive income (loss):
Net income		—		—		—		606		—		3		609
Other comprehensive income (loss)		—		—		—		—		(1)		1		—
Cash dividends ($0.17 per share)		—		—		—		(151)		—		—		(151)
Stock repurchase program		—		—		(250)		—		—		—		(250)
Stock plans (a)		(1)		(63)		108		(3)		—		—		41
Other		—		—		—		—		—		—		—
Balance at March 31, 2024		$	2,662	$	—	$	(5,682)	$	12,988	$	(332)	$	46	$	9,682
Comprehensive income (loss):
Net income		—		—		—		709		—		4		713
Other comprehensive income (loss)		—		—		—		—		—		—		—
Cash dividends ($0.17 per share)		—		—		—		(151)		—		—		(151)
Stock repurchase program		—		—		(250)		—		—		—		(250)
Stock plans (a)		1		—		151		(96)		—		—		56
Other		—		—		—		—		—		(4)		(4)
Balance at June 30, 2024		$	2,663	$	—	$	(5,781)	$	13,450	$	(332)	$	46	$	10,046









(a)	In the first quarter and second quarter of 2024, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $3 million and $96 million. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

HAL Q2 2024 FORM 10-Q | 9


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements


Millions of dollars		Common Stock		Paid-in Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance at December 31, 2022		$	2,664	$	50	$	(5,108)	$	10,572	$	(230)	$	29	$	7,977
Comprehensive income (loss):
Net income		—		—		—		651		—		4		655
Other comprehensive income		—		—		—		—		1		—		1
Cash dividends ($0.16 per share)		—		—		—		(145)		—		—		(145)
Stock repurchase program		—		—		(100)		—		—		—		(100)
Stock plans (a)		—		(50)		113		(3)		—		—		60
Other		—		—		—		—		—		(3)		(3)
Balance at March 31, 2023		$	2,664	$	—	$	(5,095)	$	11,075	$	(229)	$	30	$	8,445
Comprehensive income (loss):
Net income		—		—		—		610		—		6		616
Other comprehensive income		—		—		—		—		1		—		1
Cash dividends ($0.16 per share)		—		—		—		(144)		—		—		(144)
Stock repurchase program		—		—		(250)		—		—		—		(250)
Stock plans (a)		(1)		—		144		(82)		—		—		61
Other		—		—		—		—		—		(2)		(2)
Balance at June 30, 2023		$	2,663	$	—	$	(5,201)	$	11,459	$	(228)	$	34	$	8,727









(a)	In the first quarter and second quarter of 2023, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $3 million and $82 million, respectively. Future 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. We repurchased 6.9 million shares of our common stock under the program during the three months ended June 30, 2024 for approximately $250 million. Approximately $3.6 billion remained authorized for repurchases under the program as of June 30, 2024. From the inception of this program in February of 2006 through June 30, 2024, we repurchased approximately 267 million shares of our common stock for a total cost of approximately $10.6 billion. We repurchased 8.1 million shares of our common stock under the program during the three months ended June 30, 2023 for approximately $250 million.

Accumulated other comprehensive loss consisted of the following:


Millions of dollars	June 30, 2024		December 31, 2023
Cumulative translation adjustments	$	(83)	$	(84)
Defined benefit and other postretirement liability adjustments	(210)		(207)

Other	(39)		(40)
Total accumulated other comprehensive loss	$	(332)	$	(331)

Note 8. Commitments and Contingencies

The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and other 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 legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings.

HAL Q2 2024 FORM 10-Q | 10


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Guarantee arrangements

In the normal course of business, we have agreements with financial institutions under which approximately $2.6 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, 2024. 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, 2024, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

Note 9. 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 was antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
Millions of shares	2024	2023	2024	2023
Basic weighted average common shares outstanding	884	901	886	902
Dilutive effect of awards granted under our stock incentive plans	2	2	2	3
Diluted weighted average common shares outstanding	886	903	888	905

Antidilutive shares:
Options with exercise price greater than the average market price	10	13	10	14

Total antidilutive shares	10	13	10	14

Note 10. Fair Value of Financial Instruments

SEC Form 10-Q filed by Halliburton Company