Halliburton 2015 Annual Report Download - page 31

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14
Our business could be materially and adversely affected by severe or unseasonable weather where we have
operations.
Our business could be materially and adversely affected by severe weather, particularly in the Gulf of Mexico, Russia,
and the North Sea. Some experts believe global climate change could increase the frequency and severity of extreme weather
conditions. Repercussions of severe or unseasonable weather conditions may include:
- evacuation of personnel and curtailment of services;
- weather-related damage to offshore drilling rigs resulting in suspension of operations;
- weather-related damage to our facilities and project work sites;
- inability to deliver materials to jobsites in accordance with contract schedules;
- decreases in demand for natural gas during unseasonably warm winters; and
- loss of productivity.
Changes in or interpretation of tax law and currency/repatriation control could impact the determination of our
income tax liabilities for a tax year.
We have operations in approximately 80 countries. Consequently, we are subject to the jurisdiction of a significant
number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including net income
actually earned, net income deemed earned, and revenue-based tax withholding. The final determination of our income tax
liabilities involves the interpretation of local tax laws, tax treaties, and related authorities in each jurisdiction, as well as the
significant use of estimates and assumptions regarding the scope of future operations and results achieved and the timing and
nature of income earned and expenditures incurred. Changes in the operating environment, including changes in or
interpretation of tax law and currency/repatriation controls, could impact the determination of our income tax liabilities for a
tax year.
We are subject to foreign exchange risks and limitations on our ability to reinvest earnings from operations in one
country to fund the capital needs of our operations in other countries or to repatriate assets from some countries.
A sizable portion of our consolidated revenue and consolidated operating expenses is in foreign currencies. As a result,
we are subject to significant risks, including:
- foreign currency exchange risks resulting from changes in foreign currency exchange rates and the implementation
of exchange controls; and
- limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our
operations in other countries.
As an example, we conduct business in countries, such as Venezuela, that have restricted or limited trading markets for
their local currencies. We may accumulate cash in those geographies, but we may be limited in our ability to convert our profits
into United States dollars or to repatriate the profits from those countries. In addition, we may accumulate cash in foreign
jurisdictions that may be subject to taxation if repatriated to the United States. For further information, see "Management's
Discussion and Analysis of Financial Condition and Results of Operations - Business Environment and Results of Operations"
and Note 10 to the consolidated financial statements.
Our failure to protect our proprietary information and any successful intellectual property challenges or
infringement proceedings against us could materially and adversely affect our competitive position.
We rely on a variety of intellectual property rights that we use in our services and products. We may not be able to
successfully preserve these intellectual property rights in the future, and these rights could be invalidated, circumvented, or
challenged. In addition, the laws of some foreign countries in which our services and products may be sold do not protect
intellectual property rights to the same extent as the laws of the United States. Our failure to protect our proprietary information
and any successful intellectual property challenges or infringement proceedings against us could materially and adversely affect
our competitive position.