Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Halliburton Co., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Federal	(19)	(40)	(737)	(635)	959)
Foreign	428)	423)	415)	636)	734)
State	15)	14)	(35)	(51)	36)
Current income taxes	424)	397)	(357)	(50)	1,729)
Federal	(286)	678)	(1,343)	18)	(83)
Foreign	(9)	31)	(77)	(262)	(357)
State	28)	25)	(81)	20)	(14)
Deferred income taxes	(267)	734)	(1,501)	(224)	(454)
Income tax provision (benefit)	157)	1,131)	(1,858)	(274)	1,275)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

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Item	Description	The company
Current income taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Halliburton Co. current income taxes increased from 2016 to 2017 and from 2017 to 2018.
Deferred income taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Halliburton Co. deferred income taxes increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.
Income tax provision (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Halliburton Co. income tax provision (benefit) increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.

Halliburton Co., effective income tax rate (EITR) reconciliation

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
United States statutory tax rate	21.00%	35.00%	35.00%	35.00%	35.00%
Valuation allowance against tax assets	-16.20%	-6.20%	-2.10%	-8.30%	-3.60%
Venezuela adjustment	5.70%	36.60%	0.00%	-7.50%	0.00%
Impact of foreign income taxed at different rates	-3.00%	-18.30%	-3.20%	17.00%	-5.70%
Adjustments of prior year taxes	2.00%	-2.30%	0.20%	1.30%	0.30%
State income taxes	1.90%	1.70%	1.00%	2.00%	0.80%
Undistributed foreign earnings	0.00%	3.80%	-5.10%	0.00%	0.00%
Domestic manufacturing deduction	0.00%	0.00%	-1.30%	0.00%	-1.90%
Non-deductible acquisition costs	0.00%	0.00%	0.60%	-4.50%	0.00%
Other items, net	-0.10%	2.50%	-0.70%	-5.70%	2.20%
Effective tax rate on continuing operations, before impact of U.S. tax reform	11.30%	52.80%	24.40%	29.30%	27.10%
Impact of U.S. tax reform	-2.60%	113.00%	0.00%	0.00%	0.00%
Effective tax rate on continuing operations	8.70%	165.80%	24.40%	29.30%	27.10%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

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Item	Description	The company
Effective tax rate on continuing operations, before impact of U.S. tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Halliburton Co. effective tax rate on continuing operations, before impact of U.S. tax reform increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Halliburton Co., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net operating loss carryforwards	1,466)	1,370)	1,647)	540)	462)
Foreign tax credit carryforwards	728)	828)	648)	365)	79)
Employee compensation and benefits	242)	263)	352)	403)	395)
Accrued liabilities	101)	97)	325)	392)	494)
Other	404)	416)	536)	359)	236)
Gross deferred tax assets	2,941)	2,974)	3,508)	2,059)	1,666)
Valuation allowances	(913)	(1,173)	(453)	(213)	(184)
Deferred tax assets	2,028)	1,801)	3,055)	1,846)	1,482)
Depreciation and amortization	(635)	(315)	(585)	(1,334)	(1,005)
Undistributed foreign earnings	(2)	(242)	(406)	(5)	—)
Other	(64)	(56)	(145)	(109)	(111)
Deferred tax liabilities	(701)	(613)	(1,136)	(1,448)	(1,116)
Net deferred income tax asset (liability)	1,327)	1,188)	1,919)	398)	366)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Halliburton Co. gross deferred tax assets decreased from 2016 to 2017 and from 2017 to 2018.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Halliburton Co. deferred tax assets decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Net deferred income tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Halliburton Co. net deferred income tax asset (liability) decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Halliburton Co., adjustments to financial statements

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Adjustment to Current Assets
Current assets (as reported)	11,151)	10,777)	11,677)	21,609)	15,068)
Less: Current deferred tax assets, net	—)	—)	—)	—)	421)
Current assets (adjusted)	11,151)	10,777)	11,677)	21,609)	14,647)
Adjustment to Total Assets
Total assets (as reported)	25,982)	25,085)	27,000)	36,942)	32,240)
Less: Current deferred tax assets, net	—)	—)	—)	—)	421)
Less: Noncurrent deferred tax assets, net	1,384)	1,230)	1,960)	—)	—)
Total assets (adjusted)	24,598)	23,855)	25,040)	36,942)	31,819)
Adjustment to Company Shareholders’ Equity
Company shareholders’ equity (as reported)	9,522)	8,322)	9,409)	15,462)	16,267)
Less: Net deferred tax assets (liabilities)	1,327)	1,188)	1,919)	398)	366)
Company shareholders’ equity (adjusted)	8,195)	7,134)	7,490)	15,064)	15,901)
Adjustment to Net Income (loss) Attributable To Company
Net income (loss) attributable to company (as reported)	1,656)	(463)	(5,763)	(671)	3,500)
Add: Deferred income tax expense (benefit)	(267)	734)	(1,501)	(224)	(454)
Net income (loss) attributable to company (adjusted)	1,389)	271)	(7,264)	(895)	3,046)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Halliburton Co., Financial Data: Reported vs. Adjusted

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Halliburton Co., adjusted financial ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Current Ratio
Reported current ratio	2.32	2.22	2.90	4.03	2.56
Adjusted current ratio	2.32	2.22	2.90	4.03	2.49
Net Profit Margin
Reported net profit margin	6.90%	-2.25%	-36.27%	-2.84%	10.65%
Adjusted net profit margin	5.79%	1.31%	-45.72%	-3.79%	9.27%
Total Asset Turnover
Reported total asset turnover	0.92	0.82	0.59	0.64	1.02
Adjusted total asset turnover	0.98	0.86	0.63	0.64	1.03
Financial Leverage
Reported financial leverage	2.73	3.01	2.87	2.39	1.98
Adjusted financial leverage	3.00	3.34	3.34	2.45	2.00
Return on Equity (ROE)
Reported ROE	17.39%	-5.56%	-61.25%	-4.34%	21.52%
Adjusted ROE	16.95%	3.80%	-96.98%	-5.94%	19.16%
Return on Assets (ROA)
Reported ROA	6.37%	-1.85%	-21.34%	-1.82%	10.86%
Adjusted ROA	5.65%	1.14%	-29.01%	-2.42%	9.57%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Halliburton Co. adjusted current ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Halliburton Co. adjusted net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Halliburton Co. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Halliburton Co. adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Halliburton Co. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Halliburton Co. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

Halliburton Co., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Current assets	11,151)	10,777)	11,677)	21,609)	15,068)
Current liabilities	4,802)	4,862)	4,023)	5,359)	5,883)
Liquidity Ratio
Current ratio¹	2.32	2.22	2.90	4.03	2.56
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets	11,151)	10,777)	11,677)	21,609)	14,647)
Current liabilities	4,802)	4,862)	4,023)	5,359)	5,883)
Liquidity Ratio
Adjusted current ratio²	2.32	2.22	2.90	4.03	2.49

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 11,151 ÷ 4,802 = 2.32

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 11,151 ÷ 4,802 = 2.32

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Halliburton Co. adjusted current ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company	1,656)	(463)	(5,763)	(671)	3,500)
Revenue	23,995)	20,620)	15,887)	23,633)	32,870)
Profitability Ratio
Net profit margin¹	6.90%	-2.25%	-36.27%	-2.84%	10.65%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to company	1,389)	271)	(7,264)	(895)	3,046)
Revenue	23,995)	20,620)	15,887)	23,633)	32,870)
Profitability Ratio
Adjusted net profit margin²	5.79%	1.31%	-45.72%	-3.79%	9.27%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to company ÷ Revenue
= 100 × 1,656 ÷ 23,995 = 6.90%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to company ÷ Revenue
= 100 × 1,389 ÷ 23,995 = 5.79%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Halliburton Co. adjusted net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Revenue	23,995)	20,620)	15,887)	23,633)	32,870)
Total assets	25,982)	25,085)	27,000)	36,942)	32,240)
Activity Ratio
Total asset turnover¹	0.92	0.82	0.59	0.64	1.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	23,995)	20,620)	15,887)	23,633)	32,870)
Adjusted total assets	24,598)	23,855)	25,040)	36,942)	31,819)
Activity Ratio
Adjusted total asset turnover²	0.98	0.86	0.63	0.64	1.03

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 23,995 ÷ 25,982 = 0.92

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 23,995 ÷ 24,598 = 0.98

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Halliburton Co. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets	25,982)	25,085)	27,000)	36,942)	32,240)
Company shareholders’ equity	9,522)	8,322)	9,409)	15,462)	16,267)
Solvency Ratio
Financial leverage¹	2.73	3.01	2.87	2.39	1.98
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	24,598)	23,855)	25,040)	36,942)	31,819)
Adjusted company shareholders’ equity	8,195)	7,134)	7,490)	15,064)	15,901)
Solvency Ratio
Adjusted financial leverage²	3.00	3.34	3.34	2.45	2.00

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Financial leverage = Total assets ÷ Company shareholders’ equity
= 25,982 ÷ 9,522 = 2.73

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted company shareholders’ equity
= 24,598 ÷ 8,195 = 3.00

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Halliburton Co. adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company	1,656)	(463)	(5,763)	(671)	3,500)
Company shareholders’ equity	9,522)	8,322)	9,409)	15,462)	16,267)
Profitability Ratio
ROE¹	17.39%	-5.56%	-61.25%	-4.34%	21.52%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to company	1,389)	271)	(7,264)	(895)	3,046)
Adjusted company shareholders’ equity	8,195)	7,134)	7,490)	15,064)	15,901)
Profitability Ratio
Adjusted ROE²	16.95%	3.80%	-96.98%	-5.94%	19.16%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROE = 100 × Net income (loss) attributable to company ÷ Company shareholders’ equity
= 100 × 1,656 ÷ 9,522 = 17.39%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to company ÷ Adjusted company shareholders’ equity
= 100 × 1,389 ÷ 8,195 = 16.95%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Halliburton Co. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company	1,656)	(463)	(5,763)	(671)	3,500)
Total assets	25,982)	25,085)	27,000)	36,942)	32,240)
Profitability Ratio
ROA¹	6.37%	-1.85%	-21.34%	-1.82%	10.86%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to company	1,389)	271)	(7,264)	(895)	3,046)
Adjusted total assets	24,598)	23,855)	25,040)	36,942)	31,819)
Profitability Ratio
Adjusted ROA²	5.65%	1.14%	-29.01%	-2.42%	9.57%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROA = 100 × Net income (loss) attributable to company ÷ Total assets
= 100 × 1,656 ÷ 25,982 = 6.37%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to company ÷ Adjusted total assets
= 100 × 1,389 ÷ 24,598 = 5.65%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Halliburton Co. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

Halliburton Co. (NYSE:HAL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Halliburton Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Halliburton Co., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)