Halliburton 2011 Annual Report Download - page 127

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112
Credit risk
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash
equivalents, investments in marketable securities, and trade receivables. It is our practice to place our cash
equivalents and investments in marketable securities in high quality investments with various institutions.
We derive the majority of our revenue from selling products and providing services to the energy industry.
Within the energy industry, our trade receivables are generated from a broad and diverse group of
customers, although a significant amount of our trade receivables are generated in the United States. We
maintain an allowance for losses based upon the expected collectability of all trade accounts receivable.
We do not have any significant concentrations of credit risk with any individual counterparty to
our derivative contracts. We select counterparties to those contracts based on our belief that each
counterparty’ s profitability, balance sheet, and capacity for timely payment of financial commitments is
unlikely to be materially adversely affected by foreseeable events.