Halliburton 2015 Annual Report Download - page 49

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32
NONOPERATING ITEMS
Interest expense, net increased $64 million in 2015, compared to 2014, primarily due to fees associated with the bridge
facility commitment related to the pending acquisition of Baker Hughes and additional interest expense associated with the $7.5
billion of senior notes issued in November 2015. See Note 8 to the consolidated financial statements for further information.
Other, net was a $324 million loss in 2015, as compared to a $2 million loss in 2014, primarily due to a $199 million
foreign exchange loss we incurred in Venezuela in the first quarter of 2015 as a result of utilizing the new SIMADI currency
exchange mechanism, coupled with foreign currency exchange losses in Brazil and Argentina. See Note 3 to the consolidated
financial statements and "Business Environment and Results of Operations" for further information about Venezuela.
Effective tax rate. Our effective tax rate was 29.3% for 2015 and 27.1% for 2014. The effective tax rates in both
periods were positively impacted by lower tax rates in certain foreign jurisdictions. The effective tax rate for 2015 was also
impacted by the tax effects of the $2.2 billion of impairments and other charges, a change in mix of geographic earnings in
which we experienced low levels of United States income during the year, additional valuation allowances booked on foreign
deferred tax assets, a $199 million foreign currency exchange loss in Venezuela, and non-deductible costs related to the pending
Baker Hughes acquisition. The effective tax rate for 2014 was positively impacted by a $201 million net operating loss
valuation allowance released as a result of a reorganization of our legal entity structure in Brazil. This was partially offset by
the following other items in 2014: tax expenses related to Macondo, which was tax-effected at the United States statutory rate, a
write-off of certain prepaid tax assets recorded in Iraq, additional tax expenses related to the settlement of a research and
development credit with the United States tax authorities, and tax expenses related to other unrecognized tax benefits. See Note
10 to the consolidated financial statements for further information regarding income taxes.