Halliburton 2011 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2011 Halliburton annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 147

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147

57
OPERATING INCOME: Favorable Percentage
Millions of dollars 2010 2009 (Unfavorable) Change
Completion and Production $ 2,032 $ 1,016 $ 1,016 100%
Drilling and Evaluation 1,213 1,183 30 3
Corporate and other (236) (205) (31) 15
Total operating income $ 3,009 $ 1,994 $ 1,015 51%
By geographic region:
Completion and Production:
North America $ 1,423 $ 272 $ 1,151 423%
Latin America 115 172 (57) (33)
Europe/Africa/CIS 301 315 (14) (4)
Middle East/Asia 193 257 (64) (25)
Total 2,032 1,016 1,016 100
Drilling and Evaluation:
North America 453 178 275 154
Latin America 175 187 (12) (6)
Europe/Africa/CIS 283 380 (97) (26)
Middle East/Asia 302 438 (136) (31)
Total 1,213 1,183 30 3
Total operating income by region
(excluding Corporate and other):
North America 1,876 450 1,426 317
Latin America 290 359 (69) (19)
Europe/Africa/CIS 584 695 (111) (16)
Middle East/Asia 495 695 (200) (29)
The 22% increase in consolidated revenue in 2010 compared to 2009 was primarily due to higher
rig count and increased demand for our products and services in North America. As a result of an
approximate 45% increase in average North America rig count during 2010 compared to 2009, we
experienced a 56% increase in North America revenue. Revenue outside of North America was 51% of
consolidated revenue in 2010 and 61% of consolidated revenue in 2009.
The 51% increase in consolidated operating income compared to 2009 primarily stemmed from
improved pricing and increased demand in North America, particularly in our Completion and Production
division. Operating income in 2010 was adversely impacted by a $50 million non-cash impairment charge
for an oil and gas property in Bangladesh. Operating income in 2009 was unfavorably impacted by a $73
million charge associated with employee separation costs and a $15 million charge related to the settlement
of a customer receivable in Venezuela.