Halliburton 2011 Annual Report Download - page 116

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101
The lawsuits described above are at an early stage, and additional lawsuits and proceedings may
be brought against us. We cannot predict their outcome or the consequences thereof. As of December 31,
2011, we had accrued $35 million related to our initial estimate of response efforts, third-party property
damage, and remediation related to the Duncan, Oklahoma matter. We intend to vigorously defend the
lawsuits and do not believe that these lawsuits will have a material adverse effect on our liquidity,
consolidated results of operations, or consolidated financial condition.
Additionally, we have subsidiaries that have been named as potentially responsible parties along
with other third parties for nine federal and state superfund sites for which we have established reserves. As
of December 31, 2011, those nine sites accounted for approximately $7 million of our $81 million total
environmental reserve. For any particular federal or state superfund site, since our estimated liability is
typically within a range and our accrued liability may be the amount on the low end of that range, our
actual liability could eventually be well in excess of the amount accrued. Despite attempts to resolve these
superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in
excess of the amount accrued. With respect to some superfund sites, we have been named a potentially
responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any
material liability. We also could be subject to third-party claims with respect to environmental matters for
which we have been named as a potentially responsible party.
Guarantee arrangements
In the normal course of business, we have agreements with financial institutions under which
approximately $1.7 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of
December 31, 2011, including $292 million of surety bonds related to Venezuela. Some of the outstanding
letters of credit have triggering events that would entitle a bank to require cash collateralization.
Leases
We are obligated under operating leases, principally for the use of land, offices, equipment,
manufacturing and field facilities, and warehouses. Total rentals, net of sublease rentals, were $735 million
in 2011, $591 million in 2010, and $528 million in 2009.
Future total rentals on noncancellable operating leases are as follows: $207 million in 2012; $166
million in 2013; $112 million in 2014; $87 million in 2015; $64 million in 2016; and $164 million
thereafter.