HALLIBURTON CO (HAL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that HALLIBURTON CO surfaced in its latest filing.

• The U.S. Supreme Court is reviewing lower court decisions on tariffs and stayed a Federal Circuit decision finding certain tariffs exceeded presidential authority.
• April 2025 Trump Administration baseline tariff of 10% and additional individualized reciprocal tariffs, many effective August 2025.April 2025
• President Trump's January 2025 executive order allowed for future leasing and oil and gas exploration of lands underlying federal waters offshore the U.S. East Coast, the eastern Gulf of America, the Pacific Ocean off Washington, Oregon, and California, and portions of the Northern Bering Sea in Alaska, overturning President Biden's Memorandum of Withdrawal.January 2025
• U.S. federal income tax filings for tax years 2016 through 2024 are currently under review or remain open for review by the IRS. The primary unresolved issue for the IRS audit for 2016 is the classification of the $3.5 billion ordinary deduction claimed for the termination fee paid to Baker Hughes in the second quarter of 2016.
• Received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023 regarding the $3.5 billion termination fee deduction, initiating an IRS administrative appeals process in 2023 that is ongoing.September 28, 2023
• The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, with revisions affecting the ability to utilize foreign tax credits (FTC). An additional valuation allowance of $125 million against FTC deferred tax assets was recorded in the third quarter of 2025 due to OBBBA.July 4, 2025
• Previously disclosed cybersecurity incident where unauthorized third party accessed systems and exfiltrated information, filed in Form 8-Ks on August 23, 2024 and September 3, 2024.August 23, 2024
• Ongoing actions in Ukraine and the Middle East.
• We have experienced restricted or limited trading markets for local currencies and cash repatriation in Argentina and other countries, and expect restrictions on currency repatriation to continue in certain countries during 2026.2026