Halliburton 2015 Annual Report Download - page 33

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16
Constraints in the supply of, prices for, and availability of transportation of raw materials can have a material
adverse effect on our business and consolidated results of operations.
Raw materials essential to our business, such as proppants, hydrochloric acid, and gels, including guar gum, are
normally readily available. Shortage of raw materials as a result of high levels of demand or loss of suppliers during market
challenges can trigger constraints in the supply chain of those raw materials, particularly where we have a relationship with a
single supplier for a particular resource. Many of the raw materials essential to our business require the use of rail, storage, and
trucking services to transport the materials to our jobsites. These services, particularly during times of high demand, may cause
delays in the arrival of or otherwise constrain our supply of raw materials. These constraints could have a material adverse
effect on our business and consolidated results of operations. In addition, price increases imposed by our vendors for raw
materials used in our business and the inability to pass these increases through to our customers could have a material adverse
effect on our business and consolidated results of operations.
Our acquisitions, dispositions, and investments may not result in anticipated benefits and may present risks not
originally contemplated, which may have a material adverse effect on our liquidity, consolidated results of operations, and
consolidated financial condition.
We continually seek opportunities to maximize efficiency and value through various transactions, including purchases
or sales of assets, businesses, investments, or joint venture interests. These transactions are intended to (but may not) result in
the realization of savings, the creation of efficiencies, the offering of new products or services, the generation of cash or
income, or the reduction of risk. Acquisition transactions may be financed by additional borrowings or by the issuance of our
common stock. These transactions may also affect our liquidity, consolidated results of operations, and consolidated financial
condition.
These transactions also involve risks, and we cannot ensure that:
- any acquisitions would result in an increase in income or provide an adequate return of capital or other anticipated
benefits;
- any acquisitions would be successfully integrated into our operations and internal controls;
- the due diligence conducted prior to an acquisition would uncover situations that could result in financial or legal
exposure, including under the FCPA, or that we will appropriately quantify the exposure from known risks;
- any disposition would not result in decreased earnings, revenue, or cash flow;
- use of cash for acquisitions would not adversely affect our cash available for capital expenditures and other uses;
- any dispositions, investments, or acquisitions, including integration efforts, would not divert management resources;
or
- any dispositions, investments, or acquisitions would not have a material adverse effect on our liquidity, consolidated
results of operations, or consolidated financial condition.
Actions of and disputes with our joint venture partners could have a material adverse effect on the business and
results of operations of our joint ventures and, in turn, our business and consolidated results of operations.
We conduct some operations through joint ventures, where control may be shared with unaffiliated third parties. As
with any joint venture arrangement, differences in views among the joint venture participants may result in delayed decisions or
in failures to agree on major issues. We also cannot control the actions of our joint venture partners, including any
nonperformance, default, or bankruptcy of our joint venture partners. These factors could have a material adverse effect on the
business and results of operations of our joint ventures and, in turn, our business and consolidated results of operations.
Our ability to operate and our growth potential could be materially and adversely affected if we cannot employ and
retain technical personnel at a competitive cost.
Many of the services that we provide and the products that we sell are complex and highly engineered and often must
perform or be performed in harsh conditions. We believe that our success depends upon our ability to employ and retain
technical personnel with the ability to design, utilize, and enhance these services and products. A significant increase in the
wages paid by competing employers could result in a reduction of our skilled labor force, increases in the wage rates that we
must pay, or both. If either of these events were to occur, our cost structure could increase, our margins could decrease, and any
growth potential could be impaired.
The loss or unavailability of any of our executive officers or other key employees could have a material adverse
effect on our business.
We depend greatly on the efforts of our executive officers and other key employees to manage our operations. The loss
or unavailability of any of our executive officers or other key employees could have a material adverse effect on our business.