Halliburton Company
Annual Report 2020

Plain-text annual report

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS 2021 PROXY STATEMENT 2020 ANNUAL REPORT ON FORM 10-K Wednesday, May 19, 2021 9:00 a.m. Central Daylight Time To Our Valued Shareholders: April 6, 2021 “At Halliburton, we look to the future with optimism and focused on innovation.” Jeffrey A. Miller Chairman of the Board, President and Chief Executive Officer On behalf of our Board of Directors, we are pleased to invite you to the Halliburton Company Annual Meeting of Shareholders. The meeting will take place at the Life Center on Wednesday, May 19, 2021, at 9:00 a.m. Central Daylight Time. At Halliburton, we look to the future with optimism and focused on innovation. Our execution culture and core values guided us through the most difficult environment we have experienced in our more than 100-year history. We applaud our employees who delivered historic bests in all key safety and service quality metrics despite the global pandemic and market downturn. Because of their dedication, we never stopped serving our customers around the world while keeping each other's well-being a primary focus. By executing on our key strategic priorities, we turned what were once-in-a-lifetime challenges into extraordinary opportunities that reset Halliburton’s earnings power. We are a global integrated oilfield services company with a strong international portfolio and a leading position in the North American market. Building on this successful foundation, we will help our customers satisfy the world’s need for affordable and reliable energy provided by oil and gas, in a more effective, efficient, safe, and ethical manner, while minimizing environmental impact. We stand firm in our commitment to collaborate and engineer solutions to maximize our customers’ asset value and to deliver industry-leading returns and strong free cash flows for our shareholders. Your vote and the representation of your shares are important. Please review the proxy materials for detailed information on the proposals presented this year. We hope you will vote as soon as possible. If you attend the meeting, you may vote in person even if you have previously voted. Thank you for your ongoing support of and continued interest in Halliburton. We look forward to seeing you at our Annual Meeting. Sincerely, Jeffrey A. Miller Chairman of the Board, President and Chief Executive Officer Table of Contents Letter from the Chairman, President and Chief Executive Officer Proxy Statement Summary Notice of Annual Meeting of Shareholders Corporate Governance The Board of Directors and Standing Committees of Directors Communication to the Board Proposal No. 1 Election of Directors Information about Nominees for Director Directors’ Compensation Stock Ownership Information Proposal No. 2 Ratification of Selection of Principal Independent Public Accountants Audit Committee Report Fees Paid to KPMG LLP Proposal No. 3 Advisory Approval of Executive Compensation Compensation Committee Report Compensation Discussion and Analysis Executive Compensation Tables Summary Compensation Table Supplemental Summary Compensation Table Information for CEO Supplemental Table: All Other Compensation Grants of Plan-Based Awards in Fiscal 2020 Outstanding Equity Awards at Fiscal Year End 2020 2020 Option Exercises and Stock Vested 2020 Nonqualified Deferred Compensation Employment Contracts and Change-in-Control Arrangements Post-Termination or Change-in-Control Payments Equity Compensation Plan Information CEO Pay Ratio Proposal No. 4 Proposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Proposal No. 5 Proposal to Amend and Restate the Halliburton Company Employee Stock Purchase Plan General Information Additional Information Other Matters Appendix A Appendix B ii iii ix 1 2 8 9 11 15 18 20 21 22 23 23 24 44 44 44 46 47 48 50 50 51 52 55 55 56 62 65 66 67 A-1 B-1 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com Proxy Statement Summary This summary highlights information contained elsewhere in this proxy statement. This summary does not contain all of the information that you should consider, and you should read the entire proxy statement carefully before voting. Page references are supplied to help you find further information in this proxy statement. Eligibility to Vote (page 65) You can vote if you were a shareholder of record at the close of business on March 22, 2021. How to Cast Your Vote (page 65) You can vote by any of the following methods: INTERNET www.proxyvote.com until 11:59 p.m. Eastern Daylight Time on May 18, 2021 BY TELEPHONE until 11:59 p.m. Eastern Daylight Time on May 18, 2021 BY MAIL Completing, signing, and returning your proxy or voting instruction card before May 19, 2021 IN PERSON at the annual meeting: If you are a shareholder of record, we have a record of your ownership. If your shares are held in the name of a broker, nominee, or other intermediary, you must bring a proxy issued in your name from the record holder to the meeting. Attendees will be asked to present valid picture identification, such as a driver’s license or passport. Selection of Principal Independent Public Accountants (page 20) During the year ended December 31, 2020, KPMG LLP served as our principal independent public accountants and provided certain tax and other services to us. Representatives of KPMG are expected to be present at the Annual Meeting and be available to respond to appropriate questions from shareholders. As a matter of good corporate governance, we are requesting our shareholders to ratify the selection of KPMG LLP as our principal independent public accountants for the year ending December 31, 2021. iii HALLIBURTON ❘ 2021 Proxy StatementProxy Statement Summary Proxy Statement Summary Voting Matters (pages 9, 20, 23, 56, and 62) Election of Directors FOR Each Nominee Ratification of Selection of Principal Independent Public Accountants Advisory Approval of Executive Compensation Proposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Proposal to Amend and Restate the Halliburton Company Employee Stock Purchase Plan FOR FOR FOR FOR 9 20 23 56 62 Board Vote Recommendation Page Reference (for more detail) Governance Highlights Our Board has long maintained a formal statement of its responsibilities, our Corporate Governance Guidelines, to ensure effective governance in all areas of its responsibilities. Our current board structure and governance practices, as specified in those Guidelines and our By-laws, Code of Business Conduct, and policies and business practices, include the following: Size of Board to be Elected Number of Independent Director Nominees Average Age of Director Nominees Average Director Nominee Tenure Annual Election of Directors Mandatory Retirement Age 10 9 65 6.8 Yes 72 Supermajority Voting Threshold for Mergers Proxy Access Shareholder Action by Written Consent Shareholder Called Special Meetings Poison Pill Code of Conduct for Directors, Officers, and Employees Women and Minority Director Nominees 50% Stock Ownership Guidelines for Directors/Officers Majority Voting in Director Elections Lead Independent Director Related Persons Transactions Policy Yes Yes Yes Anti-Hedging and Pledging Policy Compensation Recoupment Policy Corporate Political Contributions No Yes Yes Yes No Yes Yes Yes Yes No Success for Halliburton and our shareholders and customers results from adherence to our core values. Integrity Ethics and integrity are the foundation of our brand and the guiding principles for all we do. Safety Priority number one. We are focused on our own personal safety as well as the safety of others. Respect We value diversity and equality. It makes us stronger, more innovative, and better positioned for success. We are committed to inclusion across race, gender, nationality, religion, identity, experience, and any other unique attribute. We are honest with ourselves, welcome different viewpoints, and empower each other to be authentic. Values Reliability We deliver what we promise. We believe the quality of our service defines who we are. Creativity We are resourceful. We are innovative and strive to apply the right technology and solution every time. Collaboration We work together with customers and understand that everyone has a role in providing the best solution. Competition We compete to win. We know that competition makes everyone stronger. iv HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comBoard Nominees (pages 11-14) Proxy Statement Summary Proxy Statement Summary Director Highlights 10 Director Nominees Tenure Balance 4 0-5 Years 6.8 YEARS AVERAGE TENURE Independence 1 Non-Independent 90% INDEPENDENT Diversity 5 Non-Diverse 50% DIVERSE Director Experience 3 >5-10 Years 3 >10 Years 9 Independent 3 Race/Ethnic Diversity 2 Gender Diversity Energy Industry ● ● ● ● ● ● ● ● ● ● Accounting/Finance ● ● ● ● ● ● ● ● ● ● Technology/Engineering ● ● ● ● ● ● ● ● ● ● Strategic Planning ● ● ● ● ● ● ● ● ● ● International Business ● ● ● ● ● ● ● ● ●● Health, Safety & Environment and Sustainability ● ● ● ● ● ● ● ● ● ● 9 9 9 10 10 8 Abdulaziz F. Al Khayyal Retired Senior Vice President, Industrial Relations, Saudi Aramco Age: 67 Director since 2014 INDEPENDENT William E. Albrecht Retired Non-Executive Chairman of the Board of California Resources Corporation Age: 69 Director since 2016 INDEPENDENT M. Katherine Banks Vice Chancellor of Engineering and National Laboratories, The Texas A&M University System Age: 61 Director since 2019 INDEPENDENT Committees: ● Committees: ● ● Committees: ● ● Alan M. Bennett Retired President and Chief Executive Officer of H&R Block, Inc. Age: 70 Director since 2006 INDEPENDENT Committees: ★ Milton Carroll Executive Chairman of the Board of CenterPoint Energy, Inc. Age: 70 Director since 2006 INDEPENDENT Committees: ● Murry S. Gerber Retired Executive Chairman of the Board of EQT Corporation Age: 68 Director since 2012 INDEPENDENT Committees: ★ ● Patricia Hemingway Hall Retired President and Chief Executive Officer of Health Care Services Corporation Age: 68 Director since 2019 INDEPENDENT Committees: ● Robert A. Malone Executive Chairman, President and Chief Executive Officer of First Sonora Bancshares, Inc. Age: 69 Director since 2009 INDEPENDENT Committees: ● Jeffrey A. Miller Chairman of the Board, President and Chief Executive Officer of Halliburton Age: 57 Director since 2014 NOT INDEPENDENT Committees: None Bhavesh V. Patel Chief Executive Officer, LyondellBasell Industries Age: 54 Director since 2021 INDEPENDENT Committees: TBD Chair ● Audit ● Compensation ● Health, Safety and Environment Nominating and Corporate Governance TBD – Mr. Patel will be appointed to Committees in May 2021. v HALLIBURTON ❘ 2021 Proxy StatementProxy Statement Summary Proxy Statement Summary 2020 Performance Highlights As we shared in our Annual & Sustainability Report 2020, available on our website at www.halliburton.com, and as you will read in this proxy statement, Halliburton has embraced change throughout our history, and our core values have guided our actions in response to a century of change. In 2020, those core values – Integrity, Safety, Collaboration, Competition, Creativity, Reliability and Respect –strengthened our response to a global pandemic and commodity supply-demand imbalance. Those Halliburton core values empowered change as we navigated each of 2020’s many and varied challenges. We reset our earnings power. We deployed digital solutions that set records for autonomous, efficient operations. We focused on safety and service quality and delivered Company-best results. We renewed our core value of “respect” to further embrace our commitment to diversity and inclusion, and to strengthen our culture and workplace, so everyone can be their authentic self and do their best work. We delivered on our customer commitment to collaborate and engineer solutions to maximize their asset value. And we remained committed to delivering industry-leading returns and strong free cash flows for our shareholders. Geographic Diversity Graphic Diversity 29% Middle East/Asia 40% North America $14.4B 19% Europe/Africa/CIS 12% Latin America Cash Flow ExecutionCash Flow Execution $1.881B $1.153B $0.5B $0.100B $0.278B Operating Cash Flow Free Cash Flow Debt Repayment Dividends Share Repurchases In 2020, we earned the majority of our revenue internationally. We reset our earnings power and improved margins in several key end markets, despite the activity slowdowns. During 2020, we generated $1.9 billion of operating cash flow and had $728 million of capital expenditures, resulting in over $1.1 billion of free cash flow. This demonstrates our ability to generate strong free cash flow in different business environments. We additionally returned over $350 million to shareholders through dividends and share repurchases and repaid $500 million of debt. *Management believes free cash flow, defined as “operating cash flow” less “capital expenditures”, is an important liquidity measure and useful to investors and management for assessing the business’s ability to generate cash. Capital Discipline $0.728B 2020 2019 $1.530B 52% Reduction Market conditions changed and we quickly acted by reducing our capital expenditures by 52% to $728 million in 2020. These capital expenditures were predominantly made in our Sperry Drilling, Production Enhancement, Baroid, Artificial Lift, Wireline and Perforating, and Production Solutions product service lines. vi HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProxy Statement Summary Proxy Statement Summary We achieved exceptional safety and service quality performance during 2020. Our total recordable incident rate and non-productive time each improved over 20%, both historical bests across our business. This is a result of our employees’ continued commitment to safety and process execution, despite the year’s distractions. Safety and Service Quality Safety and Service Quality Total Recordable Incident Rate 2020 2019 0.20 Non-Productive Time 2020 2019 0.29 >20% Improvement 0.31 >20% Improvement 0.40 Named Executive Officers (page 25) For 2020, our NEOs were: Name Age Occupation Jeffrey A. Miller 57 Chairman, President and Chief Executive Officer Lance Loeffler Eric J. Carre Joe D. Rainey 44 55 Executive Vice President and Chief Financial Officer Executive Vice President – Global Business Lines 64 President – Eastern Hemisphere Mark J. Richard 59 President – Western Hemisphere Executive Compensation (pages 23-55) Objectives (page 30) Our executive compensation program is composed of base salary, a short-term incentive, and long-term incentives and is designed to achieve the following objectives: z Provide a clear and direct relationship between executive pay and our performance on both a short-term and long-term basis; z Target market competitive pay levels with a comparator peer group; z Emphasize operating performance drivers; z Link executive pay to measures that drive shareholder returns; z Support our business strategies; and z Maximize the return on our human resource investment. Board Responsiveness to Shareholder Feedback Halliburton has always maintained open communications with the shareholder community. Seeking feedback from our shareholders on a regular basis is a critical part of our approach to managing our executive compensation program. Our ongoing, open dialogue with our shareholders helps ensure that the Board and management have a regular pulse on the views of our shareholders. These communications validate that our shareholders continue to be broadly supportive of the overall philosophy, objectives, and design of our program. They also provide us important perspectives on how to improve and better explain our program. During 2020, members of our senior management team participated in 20 sell-side investor conferences, three roadshows, and held over 380 investor meetings. As is our practice, during proxy season engagement, management engaged in targeted outreach with numerous shareholders. Our Compensation Committee Chair also participated in this outreach effort. During this shareholder outreach, we contacted shareholders who collectively hold almost 50% of our outstanding common stock. We also met with many of those shareholders who collectively represented 28% of our outstanding shares. We reviewed the changes to our compensation program implemented by our Compensation Committee during 2020 and solicited their feedback on our compensation program, as well as our company strategy and performance, corporate governance, sustainability, and other topics. vii HALLIBURTON ❘ 2021 Proxy StatementProxy Statement Summary Proxy Statement Summary The feedback from this effort indicated that our overall compensation program design is supported by our shareholders. For this and other reasons, the Compensation Committee determined that the overall structure of the compensation program is sound and closely aligns the interests of both company management and our shareholders. Based on shareholder feedback received in 2019, effective January 1, 2020, we: Modified financial metrics for determining short-term incentives to increase our emphasis on free cash flow and capital discipline Increased emphasis on performance-based long-term incentives Added a second financial metric for determining long-term performance-based awards under the PUP Increased equity component of long-term incentives Replaced CVA with two distinct metrics, weighted as follows, for the 2020 plan year: • 75% Net Operating Profit After-Taxes (NOPAT) • 25% Asset Turns Modified our long-term incentive mix (as illustrated in the graphic below): • Increased weight of performance units to 70% (up from 50%) • Reduced weight of restricted stock to 30% • Eliminated stock options for NEOs Added a relative Total Shareholder Return (TSR) modifier for the 2020 PUP performance cycle; compares performance to the Oilfield Services Index (OSX); penalizes bottom quartile performance or rewards top-quartile performance Changed PUP to issue new awards (contingent on three- year performance period) 50% in stock (previously delivered entirely in cash) so that 65% of long-term incentives is delivered in equity Increased Emphasis on Long-Term Performance-Based Equity Historic Long-Term Incentive Mix New Long-Term Incentive Mix Stock Options 15% Performance Units 70% 50% Equity-based Performance Units 50% 65% Equity-based Restricted Stock 30% Restricted Stock 35% viii HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comNotice of Annual Meeting of Shareholders to be held May 19, 2021 April 6, 2021 Halliburton Company, a Delaware corporation, will hold its Annual Meeting of Shareholders on Wednesday, May 19, 2021, at 9:00 a.m. Central Daylight Time at its corporate office at 3000 N. Sam Houston Parkway East, Life Center - Auditorium, Houston, Texas 77032. At the meeting, the shareholders will be asked to consider and act upon the matters discussed in the attached proxy statement as follows: 1. To elect the ten nominees named in the attached proxy statement as Directors to serve for the ensuing year and until their successors shall be elected and shall qualify. 2. To consider and act upon a proposal to ratify the appointment of KPMG LLP as principal independent public accountants to examine the financial statements and books and records of Halliburton for the year ending December 31, 2021. 3. To consider and act upon advisory approval of our executive compensation. 4. To consider and act upon a proposal to amend and restate the Halliburton Company Stock and Incentive Plan. 5. To consider and act upon a proposal to amend and restate the Halliburton Company Employee Stock Purchase Plan. 6. To transact any other business that properly comes before the meeting or any adjournment or adjournments of the meeting. These items are fully described in the following pages, which are made a part of this Notice. The Board of Directors has set the close of business on March 22, 2021, as the record date for the determination of shareholders entitled to notice of and to vote at the meeting and at any adjournment of the meeting. Internet Availability of Proxy Materials On or about April 6, 2021, we mailed our shareholders a Notice of Internet Availability of Proxy Materials containing instructions on how to access our 2021 proxy statement and 2020 Annual Report on Form 10-K and how to vote online. The notice also provides instruction on how you can request a paper copy of these documents if you desire. If you received your Annual Meeting materials via e-mail, the e-mail contains voting instructions and links to the proxy statement and Form 10-K on the Internet. If You Plan to Attend Attendance at the meeting is limited to shareholders and one guest each. Admission will be on a first-come, first-served basis. Registration will begin at 8:00 a.m., and the meeting will begin at 9:00 a.m. Each shareholder holding stock in a brokerage account will need to bring a copy of a brokerage statement reflecting stock ownership as of the record date. Please note that you will be asked to present valid picture identification, such as a driver’s license or passport. Potential Impact of Coronavirus (COVID-19) Pandemic on Meeting We intend to hold our Annual Meeting in person this year. However, continuing public health concerns of our shareholders regarding the coronavirus (COVID-19) pandemic and the protocols that federal, state, and local governments may recommend or impose may necessitate conducting the meeting by means of remote communication. In the event it is not possible or advisable to hold our Annual Meeting in person, we will announce alternative arrangements for the meeting at least one week before our meeting, which may include holding the meeting solely by means of remote communication. We may also need to change the date or the time of the meeting. Please monitor our website at www.halliburton.com for updated information. If you are planning to attend our meeting, please check the website one week prior to the meeting date. As always, we encourage you to vote your shares prior to the Annual Meeting. It is important that you retain a copy of the control number found on the proxy card, voting instruction form, or Notice of Internet Availability of Proxy Materials, as such number will be required in order for shareholders to gain access to any meeting held solely by means of remote communication. By order of the Board of Directors Van H. Beckwith Executive Vice President, Secretary and Chief Legal Officer Corporate Governance Corporate Governance Guidelines and Committee Charters Our Board has long maintained a formal statement of its responsibilities and guidelines to ensure effective governance in all areas of its responsibilities. Our Corporate Governance Guidelines are available on our website at www.halliburton.com by clicking on the tabs “Investors”, “Company Information”, and then the “Corporate Governance” link. The guidelines are reviewed periodically and revised as appropriate to reflect the dynamic and evolving processes relating to corporate governance, including the operation of the Board. In order for our shareholders to understand how the Board conducts its affairs in all areas of its responsibility, the full text of the charters of our Audit; Compensation; Health, Safety and Environment; and Nominating and Corporate Governance Committees are also available on our website. Except to the extent expressly stated otherwise, information contained on or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this proxy statement. Code of Business Conduct Our Code of Business Conduct, which applies to all of our employees and Directors and serves as the code of ethics for our principal executive officer, principal financial officer, principal accounting officer or controller, and other persons performing similar functions, is available on our website. Any waivers to our Code of Business Conduct for our Directors or executive officers can only be made by our Audit Committee. There were no waivers of the Code of Business Conduct in 2020. Related Persons Transactions Policy Our Board has adopted a written policy governing related persons transactions as part of the Board’s commitment to good governance and independent oversight. The policy covers transactions involving any of our Directors, executive officers, nominees for Director, greater than 5% shareholders, or any of their immediate family members, among others. Under the policy, we generally only enter into or ratify related persons transactions when the Board determines such transactions are in our best interests and the best interests of our shareholders. In determining whether to approve or ratify a related persons transaction, the Board will consider the following factors and other factors it deems appropriate: The types of transactions covered by this policy are transactions, arrangements, or relationships, or any series of similar transactions, arrangements, or relationships, including any indebtedness or guarantee of indebtedness, in which (i) we or any of our subsidiaries were or will be a participant, (ii) the aggregate amount involved exceeds $120,000 in any calendar year, and (iii) any related person had, has, or will have a direct or indirect material interest. zz whether the related persons transaction is on terms comparable to terms generally available with an unaffiliated third party under the same or similar circumstances; zz the benefits of the transaction to us; zz the extent of the related person’s interest in the transaction; and zz whether there are alternative sources for the subject matter of the transaction. 1 HALLIBURTON ❘ 2021 Proxy StatementThe Board of Directors and Standing Committees of Directors The Board has standing Audit; Compensation; Health, Safety and Environment; and Nominating and Corporate Governance Committees. Each standing Committee is comprised of Directors who, in the business judgment of the Board, are independent, after considering all relevant facts and circumstances, including the independence standards set forth in our Corporate Governance Guidelines. Our independence standards meet New York Stock Exchange, or NYSE, independence requirements. Our independence standards and compliance with those standards are periodically reviewed by the Nominating and Corporate Governance Committee. There were no relevant transactions, arrangements, or relationships not disclosed in this proxy statement that were considered by the Board in making its determination as to the independence of the Directors. Board Leadership Our Board believes that it is important to maintain flexibility to determine the appropriate leadership of the Board and whether the roles of Chairman and Chief Executive Officer should be combined or separate. Our Corporate Governance Guidelines provide that the Board consider annually whether it is appropriate for the same individual to fill both of those roles. When making that determination, the Board considers issues such as industry and financial expertise, in-depth knowledge of Halliburton and its business, and succession planning. In 2020, the Board decided that a combined leadership role would currently best serve the needs of the Company and its shareholders. The Board believes that Jeffrey A. Miller, our Chairman, President and Chief Executive Officer, with his industry expertise, financial expertise, and in-depth knowledge of Halliburton and its business, is the correct person to fill both roles. The Board also believes that Mr. Miller is best suited to lead the Board’s discussion and evaluation of the Company’s business, financial, and health, safety, environment, and sustainability strategy and performance. With the exception of Mr. Miller, the Board is composed of independent Directors. Robert A. Malone is our Lead Independent Director. The Lead Independent Director’s role and responsibilities are set forth in the Lead Independent Director Charter adopted by the Board. These include the following: liaises between the independent Directors and the Chairman advises management on and approves information sent to the Board approves agendas for Board meetings approves schedules for meetings of the Board presides over meetings and executive sessions of the independent Directors authorizes the retention of outside advisors and consultants who report directly to the Board leads the Board’s annual evaluation of the Chief Executive Officer schedules meetings of the independent Directors as appropriate Robert A. Malone LEAD INDEPENDENT DIRECTOR Our Lead Independent Director Charter is available on our website at www.halliburton.com. 2 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comThe Board of Directors and Standing Committees of Directors Board and Committee Risk Oversight We have implemented an Enterprise Risk Management (ERM) program to identify and analyze enterprise-level risks and their potential impact on our business. The objectives of our ERM program are to: zz increase the probability of achieving higher returns on capital and reducing cash flow volatility by identifying: zz current and developing risks; and zz significant controls and potential gaps related to identified risks; zz ensure that our key risks are being effectively managed; and zz assess whether our compensation policies are reasonably likely to have a materially adverse effect on us. Our internal processes to identify and manage risks include our Code of Business Conduct, extensive policies and business practices, our financial controls, Internal Assurance Services audits of our internal controls and health, safety, environment, and sustainability, the activities of the Ethics & Compliance group of the Law Department, and our ERM program. The Board provides oversight of the ERM program. The Audit Committee receives an annual ERM report on risk assessment and risk management in which risks are identified and assigned a significance rating based on potential consequences of the risk and the likelihood of occurrence. Our Chief Executive Officer, who is primarily responsible for managing our day-to-day business, is ultimately responsible to the Board for all risk categories. Our executive officers are assigned responsibility for the various risk categories. The Board has delegated to its Committees the responsibility to monitor certain risks and receive regular updates on those risks. Certain risks monitored by each Committee are shown below. Board of Directors Audit Committee Compensation Committee Nominating and Corporate Governance Committee Health, Safety and Environment Committee zz Financial reporting and zz Evolving competitive zz Corporate governance zz Catastrophic events from internal controls zz Cybersecurity zz Compliance with anti-corruption laws and regulations landscape zz Board and management zz Compensation-related succession risk wellsite activities zz Compliance with radioactive/explosives regulations Independent Committees The Board believes that it has a strong governance structure in place to ensure independent oversight on behalf of all shareholders. All standing Committees of the Board are comprised solely of independent Directors. We have established processes for the effective oversight of critical issues entrusted to independent Directors, such as: zz the integrity of our financial statements; zz membership of our independent Committees; zz CEO and senior management compensation; zz Board, Committee, and Director evaluations; and zz CEO and senior management succession planning; zz nominations of Directors. zz the election of our Lead Independent Director; 3 HALLIBURTON ❘ 2021 Proxy StatementThe Board of Directors and Standing Committees of Directors Members of the Committees of Our Board of Directors Audit Committee Compensation Committee Health, Safety and Environment Committee Nominating and Corporate Governance Committee Name Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Alan M. Bennett Milton Carroll Nance K. Dicciani* Murry S. Gerber Patricia Hemingway Hall Robert A. Malone Jeffrey A. Miller Bhavesh V. Patel# Chair Member * Ms. Dicciani is retiring from the Board on May 19, 2021. The Board will appoint a new Chair for the Health, Safety and Environment Committee in May 2021. # Mr. Patel joined the Board in February 2021 and will be appointed to Committees of the Board in May 2021. Audit Committee 2020 Meetings Committee Members Responsibilities 7 M. Katherine Banks Alan M. Bennett (Chair) Nance K. Dicciani Murry S. Gerber zz Recommending to the Board the appointment of the independent public accountants to audit our financial statements (the principal independent public accountants); zz Together with the Board, being responsible for the appointment, compensation, retention, oversight of the work, and evaluation of the principal independent public accountants; zz Reviewing the scope of the principal independent public accountants’ examination; zz Reviewing the scope of activities of Internal Assurance Services and the Ethics & Compliance group; zz Reviewing our financial statements and our significant financial policies and accounting systems and controls; and zz Approving the services to be performed by the principal independent public accountants. The Board has determined that all members of the Audit Committee are independent under our Corporate Governance Guidelines. The Board has determined that Alan M. Bennett, Nance K. Dicciani, and Murry S. Gerber are “audit committee financial experts” as defined by the Securities and Exchange Commission, or SEC. A copy of the Audit Committee Charter is available on our website at www.halliburton.com. 4 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com The Board of Directors and Standing Committees of Directors Compensation Committee 2020 Meetings Committee Members Responsibilities 4 William E. Albrecht Milton Carroll Murry S. Gerber (Chair) Patricia Hemingway Hall Robert A. Malone zz Developing an overall executive compensation philosophy and strategy; zz Overseeing the effectiveness of our compensation program in attracting, retaining, and motivating key employees; zz Utilizing our compensation program to reinforce business strategies and objectives to enhance shareholder value; zz Administering our compensation program, including our incentive plans, in a fair and equitable manner consistent with established policies and guidelines while monitoring risks associated with compensation plans; and zz Performing additional roles and activities with respect to executive compensation as described under Compensation Discussion and Analysis. A copy of the Compensation Committee Charter is available on our website at www.halliburton.com. Health, Safety and Environment Committee 2020 Meetings Committee Members Responsibilities 4 Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Nance K. Dicciani (Chair) zz Reviewing and assessing our health, safety, environmental, and sustainable development policies and practices; zz Overseeing the communication, implementation, and compliance with these policies, as well as applicable goals and legal requirements; and zz Assisting the Board with oversight of our risk-management processes relating to health, safety, the environment, and sustainability. A copy of our Health, Safety and Environment Committee Charter is available on our website at www.halliburton.com. Nominating and Corporate Governance Committee 2020 Meetings Committee Members Responsibilities 4 Abdulaziz F. Al Khayyal Alan M. Bennett Milton Carroll (Chair) Patricia Hemingway Hall Robert A. Malone zz Reviewing and recommending revisions to our Corporate Governance Guidelines; zz Overseeing our Director self-evaluation process and performance reviews; zz Identifying and screening candidates for Board and Committee membership; zz Reviewing the overall composition profile of the Board for the appropriate mix of skills, characteristics, experience, and expertise; zz Reviewing and making recommendations on Director compensation; and zz Reviewing the management succession planning process. A copy of our Nominating and Corporate Governance Committee Charter is available on our website at www.halliburton.com. Board Attendance During 2020, the Board held 4 meetings and met in Executive Session, without management present, on 4 occasions. Committee meetings were held as follows: Audit Committee Compensation Committee Health, Safety and Environment Committee Nominating and Corporate Governance Committee 7 4 4 4 All members of the Board attended 100% of the total number of meetings of the Board and the Committees on which he or she served during the last fiscal year. All of our Directors attended the 2020 Annual Meeting, as required by our Corporate Governance Guidelines. 5 HALLIBURTON ❘ 2021 Proxy StatementThe Board of Directors and Standing Committees of Directors Evaluation of Board and Director Performance The Board believes that a rigorous evaluation process is an essential component of strong corporate governance practices. The Nominating and Corporate Governance Committee annually conducts a three-part evaluation process to evaluate Board effectiveness and aid in succession planning. This process consists of a full Board evaluation, Committee evaluations, and individual Director evaluations. The evaluations, which are distributed and obtained through a third party platform, seek feedback on Board and Committee performance, processes, effectiveness, and opportunities for improvement. The results of the evaluations are reviewed and discussed with the Board, its Committees, and each individual Director. As part of the annual process, each Director also completes a skill set survey. The Board uses the survey responses to evaluate the experience and expertise of existing Directors and to identify the skills and characteristics of future Director candidates to achieve and maintain an optimum mix of skills and characteristics. PROCESS IS INITIATED EVALUATION ANALYSIS Completed questionnaires are analyzed and summarized by the chair of the Nominating and Corporate Governance Committee. A skill set matrix is created from the survey responses. The Nominating and Corporate Governance Committee reviews and approves the process to evaluate the performance of the Board, its four standing Committees (Audit; Compensation; Health, Safety and Environment; and Nominating and Corporate Governance), and each individual Director. The Committee also approves a skill set survey. Questionnaires are distributed through a third party web-based platform. This process encourages candid responses from our Directors and promotes productive discussions. Each Director completes written questionnaires that are designed to gather suggestions to improve Board, Committee, and Director performance and effectiveness and to identify opportunities for improvement. The questionnaires solicit feedback on a range of issues, including: • Board operations • succession planning • Committee composition, processes, and responsibilities • information flow from management • overall Board dynamics • Director preparation, participation, and contribution • alignment of skills and characteristics to business needs and strategy • leadership • agenda topics PRESENTATION OF FINDINGS The chair of the Nominating and Corporate Governance Committee reviews the results of the evaluations with the full Board and each Committee to determine whether changes are needed to their structure or processes. Discussions are held with individual Directors by the chair of the Nominating and Corporate Governance Committee or the Lead Independent Director, as necessary. The completed skill set matrix is considered in identifying those skills and characteristics suitable for future Director candidates. 6 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comThe Board of Directors and Standing Committees of Directors Shareholder Nominations of Directors Our By-laws provide that shareholders may nominate persons for election to the Board at a meeting of shareholders. Shareholder nominations require written notice to the Corporate Secretary at the address of our principal executive offices set forth on page 65 of this proxy statement, and for the Annual Meeting of Shareholders in 2022, must be received not less than 90 days nor more than 120 days prior to the anniversary date of the 2021 Annual Meeting of Shareholders, or no later than February 18, 2022, and no earlier than January 19, 2022. The shareholder notice must contain, among other things, certain information relating to the shareholder and the proposed nominee as described in our By-laws. In addition, the proposed nominee may be required to furnish other information as we may reasonably require to determine the eligibility of the proposed nominee to serve as a Director. Our By-laws also provide for proxy access for shareholder nominations of directors. The provision permits up to 20 shareholders owning 3% or more of our outstanding common stock continuously for at least three years to nominate and include in our proxy materials for a meeting of shareholders up to two directors or 20% of the Board, whichever is greater, provided that the shareholder(s) and the nominee(s) satisfy the requirements specified in the By-laws. Our By-laws further provide that if a shareholder owning at least 1% of our issued and outstanding common stock continuously for at least one year as of the date the written notice of the nomination is submitted to us proposes a nominee not submitted under the proxy access provision, our Corporate Secretary will (i) obtain from such nominee any additional relevant information the nominee wishes to provide in consideration of his or her nomination, (ii) report on each such nominee to the Nominating and Corporate Governance Committee, and (iii) facilitate having each such nominee meet with the Nominating and Corporate Governance Committee as the Committee deems appropriate. Qualifications of Directors Candidates nominated for election or reelection to the Board should possess the following qualifications: zz Personal characteristics: zz high personal and professional ethics, integrity, and values; zz an inquiring and independent mind; and zz practical wisdom and mature judgment; zz Broad training and experience at the policy-making level in business, government, education, or technology; zz Expertise that is useful to us and complementary to the background and experience of other Board members, so that an optimum balance of experience and expertise of members of the Board can be achieved and maintained; zz Willingness to devote the required amount of time to carry out the duties and responsibilities of Board membership; zz Commitment to serve on the Board for several years to develop knowledge about our business; zz Willingness to represent the best interests of all of our shareholders and objectively evaluate management performance; and zz Involvement only in activities or interests that do not create a conflict with the Director’s responsibilities to us and our shareholders. The Nominating and Corporate Governance Committee is responsible for assessing the appropriate mix of skills and characteristics required of Board members and periodically reviews and updates the criteria. In selecting Director nominees, the Board considers the personal characteristics, experience, and other criteria as set forth in our Corporate Governance Guidelines, as well as our specific needs and the needs of our Board at the time. We value all types of diversity, including diversity of our Board. In evaluating the overall qualifications of a potential nominee, the Committee and Board take into account overall Board diversity in personal background, race, gender, age, and nationality. This process resulted in enhancement of our Board over the last several years with the addition of two women Directors and an ethnically diverse Director. In 2019, Dr. Banks and Ms. Hemingway Hall joined the Board. Dr. Banks contributes extensive experience in engineering and technology to the Board while Ms. Hemingway Hall contributes substantial public company and corporate governance experience. Mr. Patel joined the Board in 2021. His chemical industry experience will benefit us greatly as we expand our chemicals business. Process for the Selection of New Directors The Board is responsible for filling vacancies on the Board and ensuring regular refreshment of the Board. Our Corporate Governance Guidelines provide that each non-management Director shall retire from the Board immediately prior to the annual meeting of shareholders following his or her seventy-second (72nd) birthday. The Board has delegated to the Nominating and Corporate Governance Committee the duty of selecting and recommending candidates to the Board for approval. The Nominating and Corporate Governance Committee will consider candidates for Board membership recommended by Board 7 HALLIBURTON ❘ 2021 Proxy StatementThe Board of Directors and Standing Committees of Directors members, our management, and shareholders. The Committee may also retain an independent executive search firm to identify candidates for consideration and to gather additional information about the candidate’s background, experience, and reputation. Mr. Patel was identified as a potential Director candidate by a non- management Director. A shareholder who wishes to recommend a candidate should notify our Corporate Secretary. The Nominating and Corporate Governance Committee, in consultation with the Board, will determine the specific criteria for a new Director candidate. After the Nominating and Corporate Governance Committee identifies a candidate, the Committee will determine the appropriate method to evaluate the candidate. The preliminary determination regarding a candidate is based on the likelihood that the candidate will meet the Board membership criteria listed in our Corporate Governance Guidelines. The Committee will determine, after discussion with the Chairman of the Board and other Board members, whether a candidate should continue to be considered. If a candidate warrants additional consideration, the Committee and others, as appropriate, will interview the candidate. Once the evaluation and interviews are completed, the Committee will recommend to the Board whether the candidate should be appointed to the Board or proposed for election by shareholders and the Board will act on such recommendation. IDENTIFICATION OF QUALIFIED CANDIDATES Nominating and Corporate Governance Committee considers candidates for Board membership recommended by Board members, management, and shareholders DUE DILIGENCE SCREENING Review of qualifications to determine if candidate meets Board membership criteria MEETINGS WITH SHORTLISTED CANDIDATES Committee members and, as appropriate, other Board members and management interview the shortlisted candidates DECISION AND NOMINATION Selection of Director nominees best qualified to serve the interests of Halliburton shareholders Communication to the Board To foster better communication from our shareholders and other interested persons, we maintain a process for shareholders and others to communicate with the Audit Committee and the Board. The process has been approved by both the Audit Committee and the Board and meets the requirements of the NYSE and the SEC. The methods of communication with the Board include telephone, mail, and e-mail. 888.312.2692 or 770.613.6348 Board of Directors c/o Code of Business Conduct Halliburton Company P.O. Box 2625 Houston, TX 77252-2625 USA BoardofDirectors@halliburton.com Our Director of Business Conduct, an employee, reviews all communications directed to the Audit Committee and the Board. The Audit Committee is promptly notified of any substantive communication involving accounting, internal accounting controls, or auditing matters. The Lead Independent Director is promptly notified of any other significant communication, and any Board- related matters which are addressed to a named Director are promptly sent to that Director. Copies of all communications are available for review by any Director. Communications may be made anonymously or confidentially. Confidentiality shall be maintained unless disclosure is: z required or advisable in connection with any governmental investigation or report; z in the interests of Halliburton, consistent with the goals of our Code of Business Conduct; or z required or advisable in our legal defense of a matter. Information regarding these methods of communication is also on our website at www.halliburton.com. 8 HALLIBURTON ❘ 2021 Proxy Statement www.halliburton.com Proposal No. 1 Election of Directors In considering whether a current Director should be nominated for election as a Director, the Nominating and Corporate Governance Committee and the Board considered, among other matters, the expertise and experience of the Director, the annual performance evaluation of the Director, the Director’s attendance at, preparation for, and engagement in Board and Committee meetings, the diversity of the Board, the tenure of the Director, and the overall distribution of tenure among Directors to ensure sufficient experience with the Company’s operations, performance, and technology, and the cycles of the industry. A summary of the qualifications and experience of our non-management Directors is provided under Information about Nominees for Director. AFTER CONSULTATION WITH THE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE, THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE ELECTION OF EACH OF THE DIRECTOR NOMINEES LISTED UNDER INFORMATION ABOUT NOMINEES FOR DIRECTOR. The ten nominees are all current Directors. If any nominee is unwilling or unable to serve, favorable and uninstructed proxies will be voted for a substitute nominee designated by the Board. If a suitable substitute is not available, the Board will reduce the number of Directors to be elected. Each nominee has indicated approval of his or her nomination and his or her willingness to serve if elected. The Directors elected will serve for the ensuing year and until their successors are elected and qualify. 9 HALLIBURTON ❘ 2021 Proxy StatementElection of Directors NON-MANAGEMENT DIRECTOR QUALIFICATIONS AND EXPERIENCE TENURE Year Elected INDEPENDENCE AND EXPERIENCE Independence Board or Board Committee Leadership Public Company Experience Private Company Experience Not-for-Profit Experience Government Experience Academia Community Leadership/Philanthropic DECISION-MAKING OR OTHER SUBSTANTIAL EXPERIENCE Energy Industry Accounting/Finance Technology/Engineering Legal/Compliance Mergers & Acquisitions Human Resources/Compensation Strategic Planning International Business Health, Safety & Environment and Sustainability Public Policy Corporate Governance LEGEND A Decision-making experience at Executive or Board level B Other Substantial Experience DEMOGRAPHICS Race/Ethnicity Black/African American Indian/South Asian White/Caucasian Middle Eastern Gender Male Female al y y a h A. F. Al K ht c re W. E. Alb s k n a M. K. B ett n n e A. M. B roll r a M. C y a w g min P. H all H e r e b r e M. S. G e n alo R. A. M atel B.V. P 2014 2016 2019 2006 2006 2012 2019 2009 2021 • • • • • • A A A A A A A A A A A • • • • • • • • A A A A A A A A A A A • • • • • • • • • B A A A B A A B A B • • • • • • • • • A A A A A A A A A A A • • • • • • • • • • A A B A A A B A • • • • • • • • A A A A A A A A A A A • • • • • • • • • A A A A A A A A A A A • • • • • • • • A A A A A A A A A A A • • • • • • • • A A A A A A A A • • 10 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com Proposal No. 1 Election of Directors Election of Directors Information about Nominees for Director ABDULAZIZ F. AL KHAYYAL Professional Experience: zz Retired Senior Vice President of Industrial Relations of Saudi Arabian Oil Company (the world’s largest producer of crude oil) zz Senior Vice President of Industrial Relations of Saudi Aramco from 2007 to 2014 and served as a director of Saudi Aramco from 2004 to 2014 Age 67 Director since: 2014 INDEPENDENT Skills and Expertise: The Board determined that Mr. Al Khayyal should be nominated for election as a Director because of his exceptional knowledge of the energy industry, including significant international industry experience and executive experience with the world’s largest producer of crude oil. Other Company Directorships: zz Marathon Petroleum Corporation (since 2016) Former Directorships in the Past 5 Years: zz None WILLIAM E. ALBRECHT Age 69 Director since: 2016 INDEPENDENT Professional Experience: zz Retired Non-Executive Chairman of the Board of California Resources Corporation (a publicly traded oil and natural gas exploration and production company) zz Non-Executive Chairman of the Board of California Resources Corporation from 2016 to 2020 zz Executive Chairman of the Board of California Resources Corporation from 2014 to 2016 zz Vice President of Occidental Petroleum Corporation from 2008 to 2014 zz President of Oxy Oil & Gas, Americas from 2012 to 2014 Skills and Expertise: The Board determined that Mr. Albrecht should be nominated for election as a Director because of his extensive experience in the domestic oil and natural gas industry and executive experience with a public oil and gas exploration and production company and an international offshore drilling company. Other Company Directorships: zz Lead Independent Director of Valaris plc (since 2019) Former Directorships in the Past 5 Years: zz Chairman of the Board and director of Rowan zz Chairman of the Board and director of Laredo Petroleum, Inc. (since 2020) Companies plc (2015-2019) M. KATHERINE BANKS Professional Experience: zz Vice Chancellor of Engineering and National Laboratories for The Texas A&M University System and Dean of the College of Engineering at Texas A&M University (a public research university) since 2012 Skills and Expertise: The Board determined that Dr. Banks should be nominated for election as a Director because of her extensive experience in engineering and technology and executive experience in leading one of the largest engineering schools in the country and overseeing the engineering, academic, and research programs at seven universities. Other Company Directorships: zz None Former Directorships in the Past 5 Years: zz None Age 61 Director since: 2019 INDEPENDENT 11 HALLIBURTON ❘ 2021 Proxy StatementElection of Directors ALAN M. BENNETT Professional Experience: zz Retired President and Chief Executive Officer of H&R Block, Inc. (a tax and financial services provider) zz President and Chief Executive Officer of H&R Block, Inc. from 2010 to 2011 zz Interim Chief Executive Officer of H&R Block, Inc. from 2007 to 2008 zz Senior Vice President and Chief Financial Officer of Aetna, Inc. from 2001 to 2007 Age 70 Director since: 2006 INDEPENDENT Skills and Expertise: The Board determined that Mr. Bennett should be nominated for election as a Director because of his business and financial expertise, ranging from internal audit to corporate controller to chief financial officer of a large, public company. He is a certified public accountant and also has chief executive officer experience. Other Company Directorships: zz Fluor Corporation (since 2011) zz TJX Companies, Inc. (since 2007) Former Directorships in the Past 5 Years: zz None MILTON CARROLL Age 70 Director since: 2006 INDEPENDENT Professional Experience: zz Executive Chairman of the Board of CenterPoint Energy, Inc. (a public utility holding company) since 2013. In that role, Mr. Carroll’s primary function is to provide leadership for the CenterPoint Board and to coordinate its activities. zz Non-Executive Chairman of the Board of CenterPoint Energy, Inc. from 2002 to 2013 Skills and Expertise: The Board determined that Mr. Carroll should be nominated for election as a Director because of his public company board experience, corporate governance expertise, and knowledge of the oil and gas services industry. The Board also determined that Mr. Carroll’s duties as Chairman of CenterPoint do not impede his ability to fulfill his responsibilities as a Director. Other Company Directorships: zz Chairman of the Board of Health Care Service Corporation (since 2002) Former Directorships in the Past 5 Years: zz LyondellBasell Industries (2010-2016) zz Western Gas Holdings, LLC, the general partner of Western Gas Partners, L.P. (2008-2019) zz Western Midstream Partners, LP (February 2019-August 2019) MURRY S. GERBER Professional Experience: zz Retired Executive Chairman of the Board of EQT Corporation (a leading producer of unconventional natural gas) zz Executive Chairman of the Board of EQT Corporation from 2010 to 2011 zz Chairman and Chief Executive Officer of EQT Corporation from 2000 to 2010 zz Chief Executive Officer and President of EQT Corporation from 1998 to 2007 Age 68 Director since: 2012 INDEPENDENT Skills and Expertise: The Board determined that Mr. Gerber should be nominated for election as a Director because of his executive leadership skills and extensive business experience in the energy industry and domestic unconventional oil and natural gas basins. Other Company Directorships: zz BlackRock, Inc. (since 2000) zz United States Steel Corporation (since 2012) Former Directorships in the Past 5 Years: zz None 12 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comElection of Directors PATRICIA HEMINGWAY HALL Professional Experience: zz Retired President and Chief Executive Officer of Health Care Service Corporation (mutual health insurance company which operates five Blue Cross and Blue Shield Plans) zz Chief Executive Officer of Health Care Service Corporation from 2008 to 2015 zz President of Health Care Services Corporation from 2007 to 2015 Age 68 Director since: 2019 INDEPENDENT Skills and Expertise: The Board determined that Ms. Hemingway Hall should be nominated for election as a Director because of her executive leadership skills, business experience, public company board experience, and substantial corporate governance experience. Other Company Directorships: zz ManpowerGroup Inc. (since 2011) zz Cardinal Health, Inc. (since 2013) Former Directorships in the Past 5 Years: zz Celgene Corporation (2018-2019) ROBERT A. MALONE Professional Experience: zz Executive Chairman, President and Chief Executive Officer of First Sonora Bancshares, Inc. (a bank holding company) since 2014 zz Chairman, President and Chief Executive Officer of The First National Bank of Sonora, Texas (a community bank owned by First Sonora Bancshares, Inc.) since 2014 zz Executive Vice President of BP plc, and Chairman of the Board and President, BP America Inc. (one of the nation’s largest producers of oil and natural gas) from 2006 to 2009 Skills and Expertise: The Board determined that Mr. Malone should be nominated for election as a Director because of his energy industry expertise and executive leadership experience, including crisis management and safety performance. Age 69 Director since: 2009 INDEPENDENT Other Company Directorships: zz Non-Executive Chairman of the Board of Peabody Former Directorships in the Past 5 Years: zz None Energy Corporation (since 2016) following the Company’s emergence from bankruptcy and Director (since 2009) zz Teledyne Technologies Incorporated (since 2015) zz BP Midstream Partners GP LLC, the general partner of BP Midstream (since 2017) JEFFREY A. MILLER Professional Experience: zz Chairman of the Board, President and Chief Executive Officer of Halliburton since 2019 zz Member of the Board of Directors, President and Chief Executive Officer of Halliburton from 2017 to 2018 zz Member of the Board of Directors and President of Halliburton from 2014 to 2017 Skills and Expertise: The Board determined that Mr. Miller should be nominated for election as a Director because of his energy industry expertise, executive and business development experience, and in-depth knowledge of Halliburton’s global operations. Other Company Directorships: zz None Former Directorships in the Past 5 Years: zz Atwood Oceanics, Inc. (2013-2017) Age 57 Director since: 2014 CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER 13 HALLIBURTON ❘ 2021 Proxy StatementElection of Directors BHAVESH V. (BOB) PATEL Professional Experience: zz Chief Executive Officer of LyondellBasell Industries (an international plastics, chemicals, and refining company) since 2015 zz Director of LyondellBasell Industries since 2018 zz Senior Vice President, Olefins and Polyolefins-Americas and Executive Vice President Olefins and Polyolefins Europe, Asia, International & Technology of LyondellBasell from 2010 to 2015 Skills and Expertise: The Board determined that Mr. Patel should be nominated for election as a Director because of his chemical industry experience, executive leadership skills, public company board experience, and safety expertise. Other Company Directorships: zz Union Pacific Corporation (since 2017) Former Directorships in the Past 5 Years: zz None Age 54 Director since: 2021 INDEPENDENT 14 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comDirectors’ Compensation Directors’ Fees All non-management Directors receive an annual retainer of $115,000, which remains unchanged since 2014. Consistent with the reduction of Mr. Miller’s salary in response to the COVID-19 pandemic and its impact on our business, the non-management Directors reduced their retainer by 20% on May 19, 2020, for the remainder of 2020. The Lead Independent Director receives an additional annual retainer of $30,000, and the chair of each Committee receives an additional annual retainer for serving as chair as follows: Audit - $25,000; Compensation - $20,000; Health, Safety and Environment - $15,000; and Nominating and Corporate Governance - $15,000. Non-management Directors are permitted to defer all or part of their fees under the Directors’ Deferred Compensation Plan. Directors’ Equity Awards All non-management Directors receive an annual equity award with a value of approximately $185,000, which remains unchanged since 2014, consisting of restricted stock units (RSUs), each of which represents the right to receive a share of common stock at a future date. These annual awards are made in December. The actual number of RSUs is determined by dividing $185,000 by the average of the closing price of our common stock on the NYSE on each business day during the month of November. The value of the award may be more or less than $185,000 based on the methodology described above for determining the number of RSUs to be awarded and the closing price of our common stock on the NYSE on the date of the award. Non-management Directors are permitted to defer all of their RSUs under the Directors’ Deferred Compensation Plan. Additionally, when a non-management Director first joins the Board, he or she receives an equity award shortly thereafter of RSUs equal to a prorated value of the annual equity award of $185,000. The factor used to determine the prorated award is the number of whole months of service from the beginning of the month in which Board service begins to the following first of December divided by 12. The number of RSUs awarded is determined by dividing the prorated award amount by the average of the closing price of our common stock on the NYSE on each business day during the month immediately preceding the Director joining the Board. Directors may not sell, assign, otherwise transfer, or encumber restricted shares (which were previously granted to non- management Directors) or RSUs until the restrictions are removed. Beginning in 2020 and to align our practices with peer companies, restrictions on RSUs lapse entirely on the first anniversary of the grant date with the applicable underlying shares of common stock distributed to the non-management Director unless the Director elected to defer receipt of the shares under the Directors’ Deferred Compensation Plan. Restrictions on RSUs granted prior to 2020 lapse 25% a year over four years. If a non-management Director has a separation of service from the Board before completing the specified number of service years from the applicable award date, any unvested RSUs would be forfeited, unless the Board determines to accelerate vesting. Restrictions on restricted shares and RSUs lapse following termination of Board service only under specified circumstances, which include death or disability, retirement under the Director mandatory retirement policy, or early retirement after at least four years of service. During the restriction period, Directors have the right to (i) vote restricted shares, but not shares underlying RSUs, and (ii) receive dividends or dividend equivalents in cash on restricted shares and RSUs that have not been deferred. RSUs that have been deferred receive dividend equivalents under the Directors’ Deferred Compensation Plan. Directors’ Deferred Compensation Plan The Directors’ Deferred Compensation Plan is a nonqualified deferred compensation plan and participation is completely voluntary. Under the plan, non-management Directors are permitted to defer all or part of their retainer fees and all of the shares of common stock underlying their RSUs when they vest. If a non-management Director elects to defer retainer fees under the plan, then the Director may elect to have his or her deferred fees accumulate under an interest-bearing account or translate on a quarterly basis into Halliburton common stock equivalent units (SEUs) under a stock equivalents account. If a non-management Director elects to defer receipt of the shares of common stock underlying his or her RSUs when they vest, then those shares are retained as deferred RSUs under the plan. The interest-bearing account is credited daily with interest at the 15 HALLIBURTON ❘ 2021 Proxy StatementDirectors’ Compensation prime rate of Citibank, N.A. The SEUs and deferred RSUs are credited quarterly with dividend equivalents based on the same dividend rate as Halliburton common stock and those amounts are translated into additional SEUs or RSUs, respectively. After a Director’s retirement, distributions under the plan are made to the Director in a single distribution or in annual installments over a 5- or 10-year period as elected by the Director. Distributions under the interest-bearing account are made in cash, while distributions of SEUs under the stock equivalents account and deferred RSUs are made in shares of Halliburton common stock. Ms. Dicciani and Messrs. Al Khayyal, Bennett, and Carroll have deferred retainer fees under the plan. Mses. Dicciani and Hemingway Hall, and Messrs. Al Khayyal, Albrecht, Bennett, and Carroll have deferred RSUs under the plan. Directors’ Stock Ownership Requirements We have stock ownership requirements for all non-management Directors to further align their interests with our shareholders. As a result, all non-management Directors are required to own Halliburton common stock in an amount equal to or in excess of the greater of (i) the annual base retainer in effect on the date the non-management Director is first elected to the Board multiplied by five or (ii) $500,000. The Nominating and Corporate Governance Committee reviews the holdings of all non-management Directors, which include restricted shares, other Halliburton common stock, and RSUs owned by the Director, at each May meeting. Each non-management Director has five years to meet the requirements, measured from the date he or she is first elected to the Board. Each non-management Director currently meets the stock ownership requirements or is on track to do so within the requisite five-year period. Director Clawback Policy We have a clawback policy under which we will seek, in all appropriate cases, to recoup incentive compensation paid to, awarded to, or credited for the benefit of a Director, if and to the extent that: zz it is determined that, in connection with the performance of that Director’s duties, he or she breached his or her fiduciary duty by knowingly or recklessly engaging in a material violation of a U.S. federal or state law, or recklessly disregarded his or her duty to exercise reasonable oversight; or zz the Director is named as a defendant in a law enforcement proceeding for having breached his or her fiduciary duty by knowingly or recklessly engaging in a material violation of a U.S. federal or state law, the Director disagrees with the allegations relating to the proceeding, and either (i) we initiate a review and determine that the alleged action is not indemnifiable or (ii) the Director does not prevail at trial, enters into a plea arrangement, agrees to the entry of a final administrative or judicial order imposing sanctions, or otherwise admits to the violation in a legal proceeding. The disinterested members of the Board and the disinterested members of the Compensation Committee and the Nominating and Corporate Governance Committee may be involved in reviewing, considering, and making determinations regarding the Director’s alleged conduct, whether recoupment is appropriate or required, and the type and amount of incentive compensation to be recouped from the Director. The policy also provides that, to the extent permitted by applicable law and not previously disclosed in a filing with the SEC, we will disclose in our proxy statement the circumstances of any recoupment arising under the policy or that there has not been any recoupment pursuant to the policy for the prior calendar year. There was no recoupment under the policy in 2020. Matching Gift Programs To further our support for charities, Directors may participate in the Halliburton Foundation’s matching gift programs for educational institutions, not-for-profit hospitals, and medical foundations. For each eligible contribution, the Halliburton Foundation makes a contribution of 2.25 times the amount contributed by the Director, subject to approval by its Trustees. The maximum aggregate of all contributions each calendar year by a Director eligible for matching is $50,000, resulting in a maximum aggregate amount contributed annually by the Halliburton Foundation in the form of matching gifts of $112,500 for any Director who participates in the programs. Neither the Halliburton Foundation nor we have made a charitable contribution, within the preceding three years, to any charitable organization in which a Director serves as an executive officer that exceeds in any single year the greater of $1 million or 2% of such charitable organization’s consolidated gross revenues. 16 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comDirectors’ Compensation 2020 Director Compensation Name Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Alan M. Bennett Milton Carroll Nance K. Dicciani Murry S. Gerber Patricia Hemingway Hall Robert A. Malone Fees Earned or Paid in Cash ($) 97,750 97,750 97,750 Stock Awards ($) 216,938 216,938 216,938 122,750 216,938 112,750 216,938 112,750 216,938 117,750 216,938 97,750 216,938 127,750 216,938 Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) All Other Compensation ($) Total ($) 0 0 0 0 0 0 0 0 0 13,062 327,750 7,713 322,401 28,528 343,216 123,090 462,778 32,787 362,475 133,448 463,136 5,401 340,089 116,277 430,965 121,947 466,635 Fees Earned or Paid In Cash. The amounts in this column represent retainer fees earned in fiscal year 2020, but not necessarily paid in 2020. Refer to the section Directors’ Fees for information on annual retainer fees. Stock Awards. The amounts in the Stock Awards column reflect the grant date fair value of RSUs awarded in 2020. We calculate the fair value of equity awards by multiplying the number of RSUs granted by the closing stock price as of the award’s grant date. The number of restricted shares, RSUs, and SEUs held at December 31, 2020, by non-management Directors are: Name Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Alan M. Bennett Milton Carroll Nance K. Dicciani Murry S. Gerber Patricia Hemingway Hall Robert A. Malone Restricted Shares 0 0 0 25,236 20,271 14,843 2,000 0 14,843 RSUs 42,555 35,098 20,626 53,180 53,180 44,646 21,519 20,654 21,519 SEUs 13,281 0 0 38,527 50,360 14,995 0 0 0 Change in Pension Value and Nonqualified Deferred Compensation Earnings. None of the Directors had a change in pension value or nonqualified deferred compensation earnings that represented above market earnings in 2020. All Other Compensation. This column includes compensation related to the matching gift programs under the Halliburton Foundation, the Accidental Death and Dismemberment program, dividends or dividend equivalents on restricted shares or RSUs, and dividend equivalents associated with the Directors’ Deferred Compensation Plan. Directors who received dividends or dividend equivalents on restricted shares or RSUs held on Halliburton record dates are: Dr. Banks - $3,623; Mr. Bennett - $7,949; Mr. Carroll - $6,385; Ms. Dicciani - $9,057; Mr. Gerber - $5,246; Ms. Hemingway Hall - $3,068; and Mr. Malone - $9,292. Directors who received dividend equivalents attributable to their stock equivalents account under the Directors’ Deferred Compensation Plan are: Mr. Al Khayyal  -  $3,053; Mr. Bennett  -  $11,861; Mr. Carroll  -  $13,122; and Ms. Dicciani - $4,616. Directors who participated in the matching gift program and the corresponding match provided by the Halliburton Foundation in 2020 are: Dr. Banks  -  $24,750; Mr. Bennett  -  $90,000; Ms. Dicciani - $112,500; Ms. Hemingway Hall - $112,500; and Mr. Malone - $112,500. Directors who received dividend equivalents attributable to their deferred RSUs under the Directors’ Deferred Compensation Plan are: Mr. Al Khayyal  -  $9,854; Mr. Albrecht  -  $7,558; Mr. Bennett - $13,125; Mr. Carroll - $13,125; Ms. Dicciani - $7,120; and Ms. Hemingway Hall - $554. Non-management Directors are provided an Accidental Death and Dismemberment benefit, the annual premium for which is $155. 17 HALLIBURTON ❘ 2021 Proxy Statement Stock Ownership Information Delinquent Section 16(a) Reports The Company believes, based on our records and review of filings with the SEC, that during the fiscal year ended December 31, 2020, our Directors and executive officers complied with the filing requirements of Section 16(a) of the Securities Exchange Act of 1934. Stock Ownership of Certain Beneficial Owners and Management The following table sets forth beneficial ownership information about persons or groups that own or have the right to acquire more than 5% of our common stock, based on information contained in Schedules 13G filed with the SEC. Name and Address of Beneficial Owner BlackRock, Inc. 55 East 52nd Street, New York, NY 10055 Capital World Investors 333 South Hope Street, 55th Fl, Los Angeles, CA 90071 The Vanguard Group 100 Vanguard Blvd, Malvern, PA 19355 Amount and Nature of Beneficial Ownership 61,559,691(1) Percent of Class 7.00% 64,412,667(2) 7.30% 101,229,649(3) 11.45% (1) BlackRock, Inc. is deemed to be the beneficial owner of 61,559,691 shares. BlackRock has sole power to vote or to direct the vote of 52,417,183 shares and has sole power to dispose or to direct the disposition of 61,559,691 shares. (2) Capital World Investors is deemed to be the beneficial owner of 64,412,667 shares. Capital World Investors has sole power to vote or to direct the vote of 64,412,667 shares and has sole power to dispose or to direct the disposition of 64,412,667 shares. (3) The Vanguard Group is deemed to be the beneficial owner of 101,229,649 shares. The Vanguard Group has sole power to dispose or to direct the disposition of 97,453,618 shares. The Vanguard Group has shared power to vote or to direct the vote of 1,381,498 shares and has shared power to dispose or to direct the disposition of 3,776,031 shares. 18 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comThe following table sets forth information, as of March 12, 2021, regarding the beneficial ownership of our common stock by each Director, each Named Executive Officer, and by all Directors and executive officers as a group. Stock Ownership Information Name of Beneficial Owner or Number of Persons in Group Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Alan M. Bennett Eric J. Carre Milton Carroll Nance K. Dicciani Murry S. Gerber Patricia Hemingway Hall Lance Loeffler Robert A. Malone Jeffrey A. Miller Bhavesh V. Patel Joe D. Rainey Mark J. Richard Shares owned by all current Directors and executive officers as a group (21 persons) Amount and Nature of Beneficial Ownership Sole Voting and Investment Power(1) Shared Voting or Investment Power Percent of Class 0 16,000 2,768 27,236 313,830 20,271 27,172 580,052 2,768 265,794 42,269 1,473,629 10,000 703,851 391,570 5,457,206 * * * * * * * * * * * * * * * * Less than 1% of shares outstanding. * (1) The table includes shares of common stock eligible for purchase pursuant to outstanding stock options within 60 days of March 12, 2021, for the following: Mr. Carre – 140,510; Mr. Loeffler – 114,667; Mr. Miller – 582,134; Mr. Rainey – 346,733; Mr. Richard – 142,032; and six unnamed executive officers – 771,766. Until the options are exercised, these individuals will not have voting or investment power over the underlying shares of common stock, but will only have the right to acquire beneficial ownership of the shares through exercise of their respective options. The table also includes restricted shares of common stock over which the individuals have voting power but no investment power. 19 HALLIBURTON ❘ 2021 Proxy StatementProposal No. 2 Ratification of Selection of Principal Independent Public Accountants The Audit Committee is responsible for the appointment, compensation, retention, oversight of the work, and evaluation of the principal independent public accountants retained to audit our financial statements. The Audit Committee and Board have approved the selection of KPMG LLP as our principal independent public accountants to examine our financial statements and books and records for the year ended December 31, 2021, and a resolution will be presented at the Annual Meeting to ratify this selection. The Audit Committee and Board believe that the continued retention of KPMG to serve as our principal independent public accountants for the year ended December 31, 2021, is in the best interests of Halliburton and our shareholders. Representatives of KPMG are expected to be present at the Annual Meeting and be available to respond to appropriate questions from shareholders. KPMG began serving as our principal independent public accountants for the year ended December 31, 2002. The Audit Committee routinely reviews the performance and retention of our independent public accountants, including an evaluation of service quality, the nature and extent of non-audit services, and other factors required to be considered when assessing independence from Halliburton and its management. The Audit Committee also periodically considers whether there should be a rotation of the principal independent public accountants. The affirmative vote of the holders of a majority of the shares of our common stock represented at the Annual Meeting and entitled to vote on the matter is needed to approve the proposal. If the shareholders do not ratify the selection of KPMG, the Board will reconsider the selection of independent public accountants. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR RATIFICATION OF THE APPOINTMENT OF KPMG LLP AS PRINCIPAL INDEPENDENT PUBLIC ACCOUNTANTS TO EXAMINE OUR FINANCIAL STATEMENTS AND BOOKS AND RECORDS FOR THE YEAR ENDING DECEMBER 31, 2021. 20 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comAudit Committee Report zz received from KPMG the written disclosures and the letter required by the Public Company Accounting Oversight Board regarding KPMG’s independence; zz evaluated KPMG’s service quality; and zz discussed with KPMG its independence and reviewed other matters required to be considered under Securities and Exchange Commission rules regarding KPMG’s independence. Based on the foregoing, we recommended to the Board that the audited financial statements be included in Halliburton’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for filing with the Securities and Exchange Commission. THE AUDIT COMMITTEE M. Katherine Banks Alan M. Bennett Nance K. Dicciani Murry S. Gerber We operate under a written charter, a copy of which is available on Halliburton’s website at www.halliburton.com. As required by the charter, we review and reassess the charter annually and recommend any changes to the Board for approval. We are also mindful of the observations provided in the Securities and Exchange Commission’s Statement on Role of Audit Committees in Financial Reporting and Key Reminders Regarding Oversight Responsibilities. Halliburton’s management is responsible for preparing Halliburton’s financial statements and the principal independent public accountants are responsible for auditing those financial statements. The Audit Committee’s role is to provide oversight of management in carrying out management’s responsibility and to appoint, compensate, retain, oversee the work of, and evaluate the principal independent public accountants. The Audit Committee is not providing any expert or special assurance as to Halliburton’s financial statements or any professional certification as to the principal independent public accountants’ work. In fulfilling our oversight role for the year ended December 31, 2020, we: zz reviewed and discussed Halliburton’s audited financial statements with management; zz discussed with KPMG LLP, Halliburton’s principal independent public accountants, the matters required by Auditing Standard 1301 relating to the conduct of the audit; 21 HALLIBURTON ❘ 2021 Proxy StatementFees Paid to KPMG LLP During 2019 and 2020, we incurred the following fees for services performed by KPMG LLP. Audit fees Audit-related fees Tax fees TOTAL Audit Fees 2019 (In millions) $ 10.7 0.1 0.5 2020 (In millions) $ 10.7 0.2 0.6 $ 11.3 $ 11.5 Audit fees represent the aggregate fees for professional services rendered by KPMG for the integrated audit of our annual financial statements for the fiscal years ended December 31, 2019, and December 31, 2020. Audit fees also include the audits of many of our subsidiaries in regards to compliance with statutory requirements in foreign countries and reviews of our financial statements included in the Forms 10-Q we filed during fiscal years 2019 and 2020. Audit-Related Fees Audit-related fees were incurred for assurance and related services that are traditionally performed by the independent public accountants. These services primarily include attestation engagements required by contractual or regulatory provisions. Tax Fees The aggregate fees for tax services primarily consisted of international tax compliance and tax return services related to our expatriate employees. In 2019, tax compliance and preparation fees total $0.1 million and tax advisory fees total $0.4 million, and in 2020, tax compliance and preparation fees total $0.2 million and tax advisory fees total $0.4 million. Fee Approval Policies and Procedures The Audit Committee has established a written policy that requires the approval by the Audit Committee of all services provided by KPMG as the principal independent public accountants that examine our financial statements and books and records and of all audit services provided by other independent public accountants. Prior to engaging KPMG for the annual audit, the Audit Committee reviews a Principal Independent Public Accountants Auditor Services Plan. KPMG then performs services throughout the year as approved by the Committee. KPMG reviews with the Committee, at least quarterly, a projection of KPMG’s fees for the year. Periodically, the Audit Committee approves revisions to the plan if the Committee determines changes are warranted. Our Audit Committee also considered whether KPMG’s provision of tax services as reported above are compatible with maintaining KPMG’s independence as our principal independent public accountants. All of the fees described above for services provided by KPMG were approved in accordance with the policy. 22 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProposal No. 3 Advisory Approval of Executive Compensation We are asking our shareholders to indicate their support for our NEOs’ compensation as described in this proxy statement and vote “FOR” the following resolution at the Annual Meeting: “RESOLVED, that the compensation paid to Halliburton’s Named Executive Officers, as disclosed in this proxy statement pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables, and narrative discussion, is hereby approved.” Our Board and our Compensation Committee value the opinions of our shareholders. The say-on-pay vote is advisory and, therefore, not binding on us, our Board, or our Compensation Committee. However, the Compensation Committee considers shareholder feedback in its ongoing review of our executive compensation program. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL, ON AN ADVISORY BASIS, OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS. Pursuant to Section 14A of the Securities Exchange Act of 1934, our shareholders are being presented with the opportunity to vote to approve, on an advisory basis, the compensation of our Named Executive Officers (NEOs) as disclosed in this proxy statement. As reaffirmed by our shareholders at the 2017 Annual Meeting of Shareholders, consistent with our Board’s recommendation, we are submitting this proposal for a non-binding vote on an annual basis. As described in detail under Compensation Discussion and Analysis, our executive compensation program is designed to attract, motivate, and retain our NEOs, who are critical to our success. Under the program, our NEOs are rewarded for the achievement of specific annual, long-term, and strategic goals, corporate goals, and the realization of increased shareholder returns. Please read Compensation Discussion and Analysis for additional details about our executive compensation program, including information about the fiscal year 2020 compensation of our NEOs and our Board’s ongoing commitment to ensure that our program aligns with our long-term strategy and shareholder value creation. The Compensation Committee continually reviews the compensation program for our NEOs to ensure the program achieves the desired goals of aligning our executive compensation structure with our shareholders’ interests and current market practices. We believe our executive compensation program achieves the following objectives identified under Compensation Discussion and Analysis: zz Provide a clear and direct relationship between executive pay and our performance on both a short-term and long- term basis; zz Target market competitive pay levels with a comparator peer group; zz Emphasize operating performance drivers; zz Link executive pay to measures that drive shareholder returns; zz Support our business strategies; and zz Maximize the return on our human resource investment. Compensation Committee Report We have reviewed and discussed the Compensation Discussion and Analysis with Company management and, based on such review and discussion, we recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement. THE COMPENSATION COMMITTEE William E. Albrecht Milton Carroll Murry S. Gerber Patricia Hemingway Hall Robert A. Malone 23 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis 2020 CD&A At-A-Glance This year’s Compensation Discussion and Analysis (CD&A) reviews the objectives and elements of Halliburton’s executive compensation program and discusses the 2020 compensation earned by our NEOs. It also explains the significant actions the Compensation Committee took based on its ongoing commitment to consider shareholder feedback and to ensure our senior leadership team continues to deliver the reliable execution, strong cash flow, and industry-leading returns that our shareholders expect. Business Overview Responsiveness CEO Compensation 2020 was a year of constant challenge and change. In the first quarter of 2020, OPEC+ was initially unable to reach an agreement on production limits of crude oil, exacerbating the demand decline from the COVID-19 pandemic, severely impacting our industry. Our compensation program received the support of 91% of the total votes cast at our 2020 Annual Meeting. These results indicated solid support of our shareholder outreach efforts during 2019, which resulted in significant changes to our program. Our swift and decisive cost actions and service delivery improvements reset our earnings power, delivering strong margins and cash flow. We also achieved historic bests in safety and service quality and continued to outperform on relative ROCE and TSR, demonstrating our resilience – even in a low-price environment. Effective January 1, 2020, we modified the financial metrics for determining short-term incentives and restructured our long-term incentives (starting with the 2020 PUP cycle award grant) to put increased emphasis on performance- based long-term incentives and equity under the PUP award, which is now 50% of the PUP award. Through this, sustainability remains central to our strategy, as we seek to deliver long-term financial value while minimizing our environmental footprint and having a positive impact on society. Halliburton is committed to continued evolution of sustainable, reliable energy solutions that align with our sustainability objectives. More information about our 2020 business achievements are described in 2020 Performance and Compensation Overview on page 27. The Compensation Committee believes that our program closely aligns the interests of management with our shareholders’ interests. Nevertheless, we continued our extensive outreach efforts as part of our commitment to ensure continued shareholder support for our compensation program. More information about our approach to shareholder engagement is described in Board Responsiveness to Shareholder Feedback on page 25. The end of 2020 marked Mr. Miller’s third full year as our CEO since his promotion from COO. This milestone, plus the PUP changes effective January 1, 2020, makes understanding the year-over-year increase in the Summary Compensation Table (SCT) complicated in two ways: At the time of Mr. Miller’s promotion from COO to CEO, the Compensation Committee approved a market- based adjustment to his target award opportunity, which was appropriately aligned with his expanded role and responsibilities. This resulted in an increase of $3.7M to his 2018 PUP cycle award payout. We are required to report performance share awards from two different plan years in this proxy statement for 2020. This means that we are reporting both the cash earned for the 2018 PUP cycle and target equity granted for the 2020 cycle, resulting in an additional $5M to be reported in the Stock Awards column of the Summary Compensation Table. More information about these actions and the impact on the SCT is described in CEO Compensation: Understanding the Summary Compensation Table on page 26. 2020 Pay Outcomes: Effective May 1, 2020, Mr. Miller and the other NEOs voluntarily reduced their base salaries by 20% and 10%, respectively. Those salaries were reinstated by the Compensation Committee effective January 1, 2021. There were also no short-term incentives paid to any of our NEOs for the 2020 plan year. Although 2020 was challenging, our Return on Capital Employed (ROCE) for the three-year period ending December 31, 2020, was above the 75th percentile relative to our performance peer group, demonstrating our ability to be an outperformer under volatile market conditions. As a result, the 2018 cycle of PUP that ended December 31, 2020, yielded an award paid at 200% of target. 24 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis 2020 Named Executive Officers Name Jeffrey A. Miller Lance Loeffler Eric J. Carre Joe D. Rainey Mark J. Richard Age Occupation 57 44 55 64 59 Chairman, President and Chief Executive Officer Executive Vice President and Chief Financial Officer Executive Vice President – Global Business Lines President – Eastern Hemisphere President – Western Hemisphere Board Responsiveness to Shareholder Feedback Halliburton has always maintained open communications with the shareholder community. Seeking feedback from our shareholders on a regular basis is a critical part of our approach to managing our executive compensation program. Our ongoing, open dialogue with our shareholders helps ensure that the Board and management have a regular pulse on the views of our shareholders. These communications validate that our shareholders continue to be broadly supportive of the overall philosophy, objectives, and design of our program. They also provide us important perspectives on how to improve and better explain our program. During 2020, members of our senior management team participated in 20 sell-side investor conferences, three roadshows, and held over 380 investor meetings. As is our practice, during proxy season engagement, management engaged in targeted outreach with numerous shareholders. Our Compensation Committee Chair also participated in this outreach effort. During Modified financial metrics for determining short-term incentives to increase our emphasis on free cash flow and capital discipline Increased emphasis on performance-based long-term incentives Added a second financial metric for determining long- term performance-based awards under the PUP Increased equity component of long-term incentives this shareholder outreach, we contacted shareholders who collectively hold almost 50% of our outstanding common stock. We also met with many of those shareholders who collectively represented 28% of our outstanding shares. We reviewed the changes to our compensation program implemented by our Compensation Committee during 2020 and solicited their feedback on our compensation program, as well as our company strategy and performance, corporate governance, sustainability, and other topics. The feedback from this effort indicated that our overall compensation program design is supported by our shareholders. For this and other reasons, the Compensation Committee determined that the overall structure of the compensation program is sound and closely aligns the interests of both company management and our shareholders. Based on shareholder feedback received in 2019, effective January 1, 2020, we: Replaced CVA with two distinct metrics, weighted as follows, for the 2020 plan year: • 75% Net Operating Profit After-Taxes (NOPAT) • 25% Asset Turns Modified our long-term incentive mix (as illustrated in the graphic below): • • Reduced weight of restricted stock to 30% • Eliminated stock options for NEOs Increased weight of performance units to 70% (up from 50%) Added a relative Total Shareholder Return (TSR) modifier for the 2020 PUP performance cycle; compares performance to the Oilfield Services Index (OSX); penalizes bottom quartile performance or rewards top-quartile performance Changed PUP to issue new awards (contingent on three-year performance period) 50% in stock (previously delivered entirely in cash) so that 65% of long-term incentives is delivered in equity 25 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis Increased Emphasis on Long-Term Performance-Based Equity Historic Long-Term Incentive Mix New Long-Term Incentive Mix Stock Options 15% 50% Equity-based Performance Units 50% 65% Equity-based Restricted Stock 30% Restricted Stock 35% Performance Units 70% CEO Compensation: Understanding the Summary Compensation Table There are two key factors to consider when analyzing our CEO’s reported compensation in this year’s Summary Compensation Table (SCT): zz Mr. Miller’s promotion to CEO, which increased his target market competitive pay levels, primarily impacting the amount earned under the Performance Unit Program in 2020 as compared to 2019; and zz Based on shareholder feedback, we fundamentally changed the structure of our long-term incentives. As a result, we are required to report performance awards for 2020 from two different plan years in this proxy statement. This means that we are reporting both the cash earned for the 2018 PUP cycle and target level equity granted for the 2020 cycle, resulting in an additional $5M to be reported in the Stock Awards column of the SCT. The graph below is intended to present a picture of Mr. Miller’s compensation for 2020, considering the above key issues. The $17.3M presented below for 2020 compensation is aligned with the intended target total compensation for Mr. Miller as determined by the Compensation Committee when setting executive compensation levels for 2020. Year over Year SCT CEO Compensation 5.0M 22.3M 12.8M .8M 3.7M 17.3M 2019 Compensation Other Compensation Non-Equity Incentive Plan Compensation Performance Shares: Required Reporting 2020 Compensation 2019 Compensation: Amount reflects the total compensation earned in 2019 as reported in the SCT. Other Compensation: Amount reflects the sum of the change in salary paid, restricted stock awarded, and NQDC earnings and all other compensation for 2020 as compared to 2019. Mr. Miller voluntarily reduced his salary by 20% effective May 1, 2020. His salary was reinstated by the Compensation Committee effective January 1, 2021. Non-Equity Incentive Plan Compensation: Amount reflects the change in the 2018 cycle PUP award payout as compared to the 2017 cycle of the PUP. This increase in target compensation for the 2018 PUP was commensurate with Mr. Miller’s promotion from COO to CEO. Performance Shares: Required Reporting: Represents the value of the target level award opportunity for the performance units awarded in equity for the 2020 cycle of the PUP that began January 1, 2020, and ends December 31, 2022. The amount reported is based on the grant date fair value of the award and will have actual value to Mr. Miller only if performance is achieved at the end of the performance cycle. 2020 Compensation: Amount reflects the total compensation earned by Mr. Miller in 2020 as reported in the SCT, as well as what the amount would have been if we had not restructured our long-term incentives beginning with the 2020 plan year and granted the performance shares. 26 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis Compensation Discussion and Analysis 2020 Performance and Compensation Overview Business Highlights Despite 2020’s global pandemic and an unprecedented energy market downturn, our execution culture and core values turned what were once-in-a-lifetime challenges into extraordinary opportunities that reset Halliburton’s earnings power. During 2020: zz Our dedicated employees embraced change as we fulfilled our value proposition to collaborate and engineer solutions to maximize asset value for our customers. zz We demonstrated the strength of our international business that is deeper technically, geographically, and organizationally than ever before. zz We redesigned our service delivery platform and reset our earnings power in the North American market, where we remain the leading integrated services provider. zz Halliburton 4.0, our digital framework, permeates everything we do. We increased the breadth and depth of our digital offerings and delivered best-in-class performance across a spectrum of digital technologies. zz We announced our commitment to the Science Based Targets initiative (SBTi), which will help us reduce our carbon footprint and environmental impact. zz To advance sustainable energy solutions, we successfully launched Halliburton Labs – an accelerator, where entrepreneurs, academics, investors, and industrial labs come together to develop solutions that enable cleaner, affordable energy. zz We focused on safety and service quality and delivered Company-best results. Even though the market dynamics of 2020 were challenging, our results were relatively strong, especially when compared to our peers, as highlighted below. Geographic Diversity Graphic Diversity 29% Middle East/Asia 40% North America $14.4B 19% Europe/Africa/CIS 12% Latin America Cash Flow ExecutionCash Flow Execution $1.881B $1.153B $0.5B $0.100B $0.278B Operating Cash Flow Free Cash Flow Debt Repayment Dividends Share Repurchases In 2020, we earned the majority of our revenue internationally. We reset our earnings power and improved margins in several key end markets, despite the activity slowdowns. During 2020, we generated $1.9 billion of operating cash flow and had $728 million of capital expenditures, resulting in over $1.1 billion of free cash flow. This demonstrates our ability to generate strong free cash flow in different business environments. We additionally returned over $350 million to shareholders through dividends and share repurchases and repaid $500 million of debt. *Management believes free cash flow, defined as “operating cash flow” less “capital expenditures”, is an important liquidity measure and useful to investors and management for assessing the business’s ability to generate cash. 27 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis Capital Discipline $0.728B 2020 2019 $1.530B 52% Reduction Market conditions changed and we quickly acted by reducing our capital expenditures by 52% to $728 million in 2020. These capital expenditures were predominantly made in our Sperry Drilling, Production Enhancement, Baroid, Artificial Lift, Wireline and Perforating, and Production Solutions product service lines. Safety and Service Quality Safety and Service Quality Total Recordable Incident Rate 2020 2019 0.20 Non-Productive Time 2020 2019 0.29 >20% Improvement 0.31 >20% Improvement 0.40 We achieved exceptional safety and service quality performance during 2020. Our total recordable incident rate and non-productive time each improved over 20%, both historical bests across our business. This is a result of our employees’ continued commitment to safety and process execution, despite the year’s distractions. We delivered superior ROCE performance over the one-, three-, and five-year periods ending December 31, 2020, relative to the Oilfield Services Index (OSX), our two largest competitors, and our performance peer group. The details are depicted in the chart below: Return on Capital Employed (ROCE) (in percentage) 2020 2018-2020 average 2016-2020 average -2.1 -6.5 -12.2 -13.2 -2.9 -3.9 -9.1 -10.9 -13.7 -20.1 -27.3 -29.1 HAL OSX Competitors Performance Peer Group 28 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis We also delivered TSR over the one-, three-, five-, and ten-year periods ending December 31, 2020, that exceeded the TSR of the OSX and our performance peer group. We also outperformed the average TSR of our two largest competitors for the one-, five-, and ten-year periods ending December 31, 2020. The details are depicted in the chart below: Total Shareholder Return (TSR) (in percentage) 1 YEAR 3 YEARS 5 YEARS 10 YEARS -21 -29 -43 -45 -44 -45 -38 -51 HAL -59 -61 -70 OSX -55 -72 -52 -66 -82 Competitors Performance Peer Group In the first quarter of 2020, OPEC+ was initially unable to reach an agreement to continue to impose limits on the production of crude oil, exacerbating the demand decline from the COVID-19 pandemic, resulting in the worst economic downturn our industry has ever experienced. Despite these challenges, we strongly rebounded, outperforming the OSX, our two largest competitors, and our performance peer group in terms of TSR between April 1 and December 31, 2020, as shown in the chart on the left below. Further, consistent with our strategy to deliver industry leading returns, we outperformed on TSR relative to the OSX in terms of percentage points over the one-, three-, five-, and ten-year periods ending December 31, 2020, as shown in the chart on the right below: Total Shareholder Return (TSR) (in percentage) 189 Since 4/1/2020 HAL TSR greater than OSX (in percentage points) 34 37 90 99 75 22 11 HAL OSX Competitors Performance Peer Group 1 Year 3 Year 5 Year 10 Year 29 HALLIBURTON ❘ 2021 Proxy Statement Compensation Discussion and Analysis Our Executive Compensation Program Objectives Our executive compensation program is designed to achieve the following objectives: zz Provide a clear and direct relationship between executive pay and our performance on both a short-term and long-term basis; zz Target market competitive pay levels with a comparator peer group; zz Emphasize operating performance drivers; zz Link executive pay to measures that drive shareholder returns; zz Support our business strategies; and zz Maximize the return on our human resource investment. Good Compensation Governance Practices At-A-Glance Use mix of relative and absolute financial metrics What We Do What We Don’t Do No repricing of underwater stock options The majority of total direct compensation opportunity is performance-based, at-risk, and long-term (65% of long-term incentives is equity-based effective 2020) Deliver rewards that are based on the achievement of long- term objectives and the creation of shareholder value Maintain a clawback policy in the event of a material financial restatement or fraud Maintain robust executive and Director stock ownership requirements Use an independent, external compensation consultant Benchmark against a relevant group of peer companies Rigorous oversight of incentive metrics, goals, and pay-for- performance relationship Hold an annual say-on-pay vote No excessive perquisites No guaranteed bonuses or uncapped incentives No single trigger vesting upon a change of control (applicable to awards to NEOs for 2019 forward) No excise tax gross-ups No hedging or pledging of company securities by executives and Directors No buyout or exchange of underwater options No special or one-time stock grants for internal promotions No liberal share counting or recycling 30 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis Elements of our Executive Compensation Program for 2020 Halliburton’s executive compensation program for the 2020 plan year was composed of base salary, a short-term incentive, and long- term incentives as described below: Reward Element FIXED Base Salary Objective Key Features Fixed element of compensation paid in cash. Compensates executives based on their responsibilities, experience, and skillset. How Award Value is Determined Benchmarked against a group of comparably sized corporations and industry peers. Short-Term Incentive To motivate and incentivize performance over a one-year period. Award value and measures are reviewed annually. Targets are set at the beginning of the year. Performance measured against: zz 75% NOPAT zz 25% Asset Turns AT RISK Long-Term Incentives To motivate and incentivize sustained performance over the long-term. Aligns interests of our NEOs with long-term shareholders. Value is delivered: zz 70% performance units measured over three years (1/2 in stock; 1/2 in cash) with relative TSR modifier zz 30% restricted stock The 2020 performance units measured against ROCE performance relative to performance peers and includes a relative TSR modifier. Restricted stock grants have time-based vesting and value is driven by our share price. 2020 Decisions Messrs. Loeffler and Richard received the second half of their two- year promotion-related increases. The other NEOs did not receive salary increases. Additionally, Mr. Miller and the other NEOs voluntarily reduced their 2020 base salaries by 20% and 10%, respectively, effective May 1, 2020. Those salaries were reinstated by the Compensation Committee effective January 1, 2021. (Page 36) Award values were targeted at the market median for 2020. There were no short- term incentives paid to any of our NEOs for the 2020 plan year. (Page 36) Awards were targeted at the market median for 2020. (Page 38) 31 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis As illustrated below, the majority of our CEO’s and NEOs’ total direct compensation opportunity is performance-based, at-risk, and long-term. The graphs depict the mix of total target direct compensation set for our CEO and NEOs for the 2020 plan year. As part of its process, the Compensation Committee makes decisions about target long-term incentive award opportunities for the following year during its regular December meeting. For the 2020 plan year, the Compensation Committee approved restricted stock grants in December 2019. 2020 CEO Compensation Mix 2020 Other NEO Compensation Mix 22% Restricted Stock 30% Performance Equity 91% At-Risk Compensation 77% LONG-TERM INCENTIVES 9% Base Salary 14% Annual Incentive 25% Performance Cash 19% Restricted Stock 16% Base Salary 26% Performance Equity 84% At-Risk Compensation 67% LONG-TERM INCENTIVES 17% Annual Incentive 22% Performance Cash Setting Executive Compensation Role of the Compensation Committee The Compensation Committee oversees the executive compensation program and has overall responsibility for making final decisions about total compensation for all of the NEOs, except for the CEO, which is set by the entire Board of Directors. As part of its annual process, the Compensation Committee works closely with senior management (as appropriate) and the Compensation Committee’s independent compensation consultant. This process ensures consistency from year to year and adherence to the responsibilities listed in the Committee’s Charter, which is available on our website. The CEO does not provide recommendations concerning his own compensation, nor is he present when his compensation is discussed by the Compensation Committee. The Compensation Committee, with input from its independent compensation consultant, discusses the elements of his compensation in executive session and makes a recommendation to all of the non-management Directors for discussion and final approval. At the Compensation Committee’s request, a member of our management team may attend the executive session to answer questions from the Compensation Committee. The CEO, with input from the Compensation Committee’s independent compensation consultant, assists the Compensation Committee in setting compensation for the other NEOs. Use of Independent Consultants and Advisors The Compensation Committee engaged Pearl Meyer as its independent compensation consultant during 2020. Pearl Meyer does not provide any other services to us. The primary responsibilities of the independent compensation consultant were to: zz Provide independent and objective market data; zz Conduct compensation analysis; zz Recommend potential changes to the comparator peer group and performance peer group; zz Recommend plan design changes; zz Advise on risks associated with compensation plans; and zz Review and advise on pay programs and pay levels. These services are provided as requested by the Compensation Committee throughout the year. Based on their review of our executive compensation program, Pearl Meyer concluded that our compensation plans do not appear to present any material risks to the Company or its shareholders in the design, metrics, interaction between, or administration of the incentive plans. 32 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis Role of Benchmarking, Peer Companies, and Market Data The Compensation Committee regularly assesses the market competitiveness of the Company’s executive compensation program based on data from a comparator peer group. The companies comprising the comparator peer group are selected based on the following considerations: Industry affiliation includes companies that are involved in the oil and natural gas and energy services industries. With data provided by the independent compensation consultant, the Compensation Committee reviews the comparator peer group annually to ensure relevance. zz Market capitalization; zz Revenue and number of employees; zz Global impact and reach; and zz Industry affiliation. The 2020 comparator peer group was composed of the following peer companies within the energy industry, as well as selected companies representing general industry. This peer group was utilized to determine market levels of total compensation for the 2020 plan year and was unchanged from 2019: 3M Company Anadarko Petroleum Corporation Apache Corporation Baker Hughes Caterpillar Inc. ConocoPhillips Deere and Company Emerson Electric Co. Fluor Corporation Hess Corporation Honeywell International Inc. Johnson Controls International plc National Oilwell Varco, Inc. Occidental Petroleum Corporation Raytheon Company Schlumberger Limited Transocean Ltd. Weatherford International plc Because of variances in market capitalization and revenue size among the companies comprising our comparator peer group, the market data is size adjusted by revenue as necessary so that it is comparable with our trailing 12 months revenue. These adjusted values are used to compare our executives’ compensation to those of the comparator peer group. Total compensation for each NEO is structured to target market competitive pay levels in base salary and short- and long-term incentive opportunities. We also place an emphasis on variable pay at risk, which enables this compensation structure to position actual pay above or below the 50th percentile of our comparator peer group depending on performance. A consistent pre-tax, present value methodology is used in assessing stock-based and other long-term incentive awards. The independent compensation consultant gathers and performs an analysis of market data for each NEO, comparing each of their individual components of compensation and total compensation to that of the comparator peer group. This competitive analysis consists of comparing the market data of each of the pay elements and total compensation at the 25th, 50th, and 75th percentiles of the comparator peer group to current compensation for each NEO. 33 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis Pay for Performance Analysis As part of its analysis, the Compensation Committee reviews one-, three-, and five-year pay for performance against our performance peer group as identified in the section entitled “Long-term Incentives”. The review examines the degree of alignment between our ROCE performance compared to the ROCE performance of our performance peer group and our CEO’s realizable compensation relative to the realizable compensation of the CEOs in our comparator peer group. Total realizable compensation consisted of the following: zz base salary paid; zz cash incentive payouts; zz in-the-money value of stock options grants during the one-, three-, and five-year periods valued as of December 31, 2019; zz face value of restricted stock grants during the one-, three-, and five-year periods valued as of December 31, 2019; and zz for performance-based awards, (i) target value for awards still outstanding as of December 31, 2019, and (ii) realized value for performance periods beginning and ending within the one-, three-, and five-year periods. This analysis supported the Compensation Committee’s determination that our pay and performance are appropriately aligned. Pay for Performance Analysis Periods Ending December 31, 2019 (in percentile) 1 YEAR 3 YEAR 5 YEAR 67th 80th 85th 38th 44th 50th ● HAL ROCE Performance relative to performance peer group ● HAL CEO Total Realizable Compensation relative to compensation peer group Determination of CEO and NEO Target Total Compensation When determining target total compensation for the CEO, the Compensation Committee takes into consideration competitive market pay levels for the CEOs in the comparator peer group. The Compensation Committee also considers the CEO’s performance and accomplishments in the areas of business development and expansion, management succession, development and retention of management, ethical leadership, and the achievement of financial and operational objectives. Each year, our CEO and the members of the Board agree upon a set of objectives addressing the following areas: zz Leadership and vision; zz Integrity; zz Keeping the Board informed on matters affecting Halliburton; zz Performance of the business; zz Development and implementation of initiatives that provide long- term economic benefits; zz Accomplishment of strategic objectives; and zz Development of management. 34 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis The Board determined that Mr. Miller met these objectives in 2020 through the following achievements: LEADERSHIP AND VISION zz Led the organization through an unprecedented decline in demand for oil and subsequent decline in oil prices caused by the global pandemic zz Prioritized stakeholder communication and maintained high visibility with employees, shareholders, and customers zz Facilitated a seamless Chief Legal Officer leadership transition INTEGRITY zz Maintained unwavering commitment to our Code of Business Conduct (COBC) zz Advocated for the Local Ethics Officer program which continues to be at the cutting edge of compliance initiatives zz Expanded the Company’s core values to align more closely with racial equality expectations, a core element of our COBC KEEPING THE BOARD INFORMED zz Communicated regularly with the members of the Board providing status reports and notifications on business issues and providing unfettered access to management and subject matter experts PERFORMANCE OF THE BUSINESS zz Reset earnings power and eliminated $1 billion of structural cost zz Reduced debt by $500 million zz Generated $1.1 billion of free cash-flow zz Outperformed the OSX, our two largest competitors, and our performance peer group in terms of ROCE over the one-, three-, and five-year periods ending December 31, 2020; delivered superior TSR performance relative to the OSX and our performance peer group over the one-, three-, five-, and ten-year periods ending December 31, 2020, and outperformed the average TSR of our two largest competitors for the one-, five-, and ten-year periods ending December 31, 2020 zz Maintained unwavering commitment to our Health, Safety and Environment program DEVELOP AND IMPLEMENT INITIATIVES THAT PROVIDE LONG-TERM ECONOMIC BENEFITS zz Continued Company focus on evolving market trends, first of its kind technology development, and automation zz Continued to institutionalize Continuous Improvement which drives profitability, capacity, and greater flexibility zz Executed key steps to increase environmental, social, and governance focus ACCOMPLISHMENT OF STRATEGIC OBJECTIVES zz Deployed key future technologies demonstrating focus on capital efficiency zz Executed key integration initiatives across multiple segments of the business zz Advanced cleaner, affordable energy by committing to Science Based Targets and successfully launching Halliburton Labs clean energy accelerator DEVELOPMENT OF MANAGEMENT zz Continued to expose management to the Board via spotlight presentations, focused on our robust succession management process with a closer look at our sustainable leadership pipeline, and focused on talent development with an emphasis on diversity, equality, and respect initiatives Other NEO compensation is determined similar to that of the CEO by evaluating each NEO’s performance and considering the market competitive pay levels of the comparator peer group for the NEO’s position. The Compensation Committee also considers the importance of keeping our management team focused and stable, especially given that other oilfield services companies have aggressively recruited our NEOs and other executives in the past. In fact, over thirty of our former executives have departed to become CEOs and/or senior executives of other oilfield services companies. 35 HALLIBURTON ❘ 2021 Proxy Statement Compensation Discussion and Analysis 2020 Executive Compensation Outcomes Base Salary The Compensation Committee generally targets base salaries at the median of the comparator peer group. The Compensation Committee also considers the following factors when setting base salary: zz Level of responsibility; zz Experience in current role and equitable compensation relationships among internal peers; zz Performance and leadership; and zz External factors involving competitive positioning, general economic conditions, and marketplace compensation trends. No specific formula is applied to determine the weight of each factor. Short-term (Annual) Incentive The Annual Performance Pay Plan is designed to provide executives and other key members of management the opportunity to earn an annual cash bonus based on the annual performance of the Company. The Annual Performance Pay 2020 Target Award Opportunities Salary reviews are conducted annually to evaluate each executive. Individual salaries are not necessarily adjusted each year. At its regular December 2019 meeting, the Compensation Committee determined that the January 1, 2020, base salaries for our NEOs would remain unchanged from 2019 with the exceptions of Messrs. Loeffler and Richard, both of whom received the second half of their two-year promotion-related increases of 16.9% and 11.7%, respectively. In response to the substantial decline in global demand for oil caused by the COVID-19 pandemic, as well as the impact of the pandemic on the broader economic environment and our business, Mr. Miller and the other NEOs voluntarily reduced their base salaries by 20% and 10%, respectively, effective May 1, 2020. Base salary levels were restored to their pre-reduction levels on January 1, 2021. Plan places a significant percentage of each NEO’s annual cash compensation at risk and aligns the interests of executives and shareholders. It is administered in accordance with the terms of the Stock and Incentive Plan. Individual incentive award opportunities are established as a percentage of base salary at the beginning of the plan year based on market competitive targets. The maximum award a NEO can receive is limited to two times the target opportunity level. The level of achievement of annual performance determines the dollar amount of incentive compensation payable to participants following completion of the plan year. The Compensation Committee set incentive award opportunities under the plan for 2020 as follows: NEO Mr. Miller Mr. Loeffler Mr. Carre Mr. Rainey Mr. Richard Threshold 60% 40% 40% 44% 44% Target 150% 100% 100% 110% 110% Maximum 300% 200% 200% 220% 220% Threshold, Target, and Maximum opportunity dollar amounts can be found in the Grants of Plan-Based Awards in Fiscal 2020 table. 36 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis 2020 Financial Performance Metrics and Results For 2020, as discussed above, performance under the Annual Performance Pay Plan was based on the achievement of new, pre-established performance metrics: Net Operating Profit After-Taxes (NOPAT) and Asset Turns. The Compensation Committee selected these metrics because they are key financial measures upon which we set our performance expectations for the year and place an increased emphasis on free cash flow and capital discipline. NOPAT = Net Operating Profit After Taxes OPERATING INCOME Interest Income Foreign Currency Gains (Losses) Other Nonoperating Income (Expense), Net NET OPERATING PROFIT Income Taxes NET OPERATING PROFIT AFTER TAXES ASSET TURNS = Revenue/Net Invested Capital Average Net Assets(1) Average Net Liabilities(2) NET INVESTED CAPITAL (1) Average Net Assets excludes cash and marketable investments, and current and non-current deferred income tax assets. (2) Average Net Liabilities excludes current and long-term debt, which includes finance lease liabilities, and non-current deferred income tax liability. Adjustments in the calculation of NOPAT and Asset Turns may, at times, be approved by the Compensation Committee and can include the treatment of unusual items that may have impacted our actual results. At the beginning of each plan year, the Compensation Committee approves an incentive award schedule that equates levels of performance with cash reward opportunities. The performance goals range from “Threshold” to “Target” to “Maximum”. Threshold reflects the minimum performance level which must be achieved in order for any award to be earned and Maximum reflects the maximum awards that can be earned. The performance goals are based on our annual operating plan, as reviewed and approved by our Board, and are set at levels to meet or exceed shareholder expectations of our performance, as well as expectations of the relative performance to our competitors. Given the cyclical nature of our business, our performance goals vary from year to year, which can similarly impact the difficulty in achieving the goals. The Compensation Committee may also consider other business performance factors that are important to our investors, including health, safety, environment, and service quality, in determining the final payout amounts under the Annual Performance Pay Plan. At the beginning of 2020, the Compensation Committee set performance goals for our NEOs based on company-wide consolidated NOPAT results. Threshold NOPAT was based on 90% of planned Operating Income, Target NOPAT on 100% of planned Operating Income, and Maximum NOPAT on 110% of planned Operating Income. Threshold Asset Turns was based on 98% of planned Revenues, Target Asset Turns on 100% of planned Revenues, and Maximum Asset Turns on 102% of planned Revenues. Net Invested Capital was based on 100% of our operating plan in all performance range scenarios. 37 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis Compensation Discussion and Analysis The Compensation Committee set the 2020 award levels, targeted to the market median, for our NEOs based on the company-wide consolidated NOPAT and Asset Turns results. The performance goals for the 2020 plan year are noted in the table below: Metrics NOPAT Asset Turns Performance Range Weighting Threshold Target 75% 25% $1,350 M $1,510 M 1.40 1.43 Maximum $1,671 M 1.46 Actual -$2,293 M 1.18 Because actual 2020 Asset Turns and NOPAT results were both below Threshold, our NEOs did not receive a payout under the Annual Performance Pay Plan. As evidence of the Compensation Committee’s commitment to setting robust targets, over the past ten years, the Annual Performance Pay Plan achieved Maximum performance levels four times, Target performance levels two times, and fell short of the Threshold performance level four times, resulting in no payout. Long-Term Incentives The Stock and Incentive Plan is designed to reward consistent achievement of value creation and operating performance goals, align management with shareholder interests, and encourage long-term perspective and commitment. Long-term incentives represent the largest component of total executive compensation opportunity. Using a mix of incentive vehicles allows us to provide a diversified yet balanced long-term incentive program that effectively addresses volatility in our industry and in the stock market, in addition to maintaining an incentive to meet performance goals. For the 2020 plan year, the Compensation Committee used the following combination of equity vehicles for long-term incentive grants: Vehicle Performance Units Weighting 70% of Award Purpose Rewards achievement of specific financial goals measured over a three- year performance period Restricted Stock(1) 30% of Award Supports leadership retention/stability objectives; five-year vesting period (1) Restricted stock grants are generally subject to a graded vesting schedule of 20% per year over five years. However, different vesting schedules may be utilized at the discretion of the Compensation Committee. Shares of restricted stock receive dividend or dividend equivalent payments. Individual Incentive Opportunities In determining the size of long-term incentive awards, the Compensation Committee first considers market data for comparable positions and then may adjust the awards upwards or downwards based on the Compensation Committee’s review of internal equity. This can result in positions of similar magnitude and pay receiving awards of varying size. Awards are targeted to the market median. As part of its process, the Compensation Committee makes decisions about target long-term incentive award opportunities for the following year during its regular December meeting. For the 2020 plan year, the Compensation Committee approved restricted stock grants in December 2019. Individual incentive opportunities are established based on market references and the NEO’s role within the organization. In the Grants of Plan-Based Awards in Fiscal 2020 table, the Threshold, Target, and Maximum columns under the heading Estimated Future Payouts Under Non-Equity Incentive Plan Awards indicate the potential cash payout for each NEO under the Performance Unit Program (PUP) for the 2020 cycle and the Threshold, Target, and Maximum columns under the heading Estimated Future Payouts Under Equity Incentive Plan Awards indicate the potential shares vesting for each NEO under the PUP for the 2020 cycle. The potential payouts are performance driven and completely at risk. Actual payouts and shares vesting, if any, will not be determined until the three-year cycle closes on December 31, 2022. A Closer Look at the Performance Unit Program The PUP provides NEOs and other selected executives with incentive opportunities based on our consolidated ROCE during a three-year performance period. This program reinforces our objectives for sustained long-term performance and value creation. It also reinforces strategic planning processes and balances short- and long-term decision making. The program measures ROCE on a relative basis to the results of a pre-determined performance peer group over three years. The performance peer group used for the PUP is comprised of oilfield equipment and services companies and domestic and international exploration and production companies. This peer group is used for the PUP because these companies represent the timing, cyclicality, and volatility of the oil and natural gas industry and provide an appropriate industry group for measuring our relative performance. 38 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis The three-year performance period aligns this measurement with our and our performance peer group’s business cycles. ROCE indicates the efficiency and profitability of our capital investments and is determined based on the ratio of earnings divided by average capital employed. The calculation is as follows: ROCE = Net income After-tax interest expense Shareholders’ equity (average of beginning and end of period) Debt (average of beginning and end of period) Highly correlated to stock price performance over the long-term, applying drivers that management can directly influence. Why ROCE? Overwhelmingly supported by our shareholders. Aligned with our strategy of delivering industry-leading returns across the business cycle. Eliminates the subjectivity inherent in setting long-term absolute targets in a cyclical industry. Reinforces the Company’s objective for sustained long-term performance and value creation. Provides our management team with clear line of sight to long-term financial results. Consistent with our executive compensation objectives and strategy to deliver leading returns in our industry, over the past 10 years the performance of PUP exceeded the 75th percentile five times, has fallen between the 50th and 75th percentile four times, and been below the 50th percentile only one time. We believe that this long-term focus on generating superior returns within our industry also correlates with our industry TSR outperformance over the same period of time. 2020 Cycle PUP For the 2020 cycle, consistent with the design from the prior year, the Compensation Committee set the performance measures on a 100% relative ROCE basis with relative performance to be measured as of the three-year period ending December 31, 2022. The 2020 PUP peer group was changed from the prior year peer group. Anadarko Petroleum Corporation was removed for the 2020 cycle because it was acquired by another public company. The performance peer group used for the 2020 PUP consists of the following companies: Apache Corporation Baker Hughes Chesapeake Energy Corporation Devon Energy Corporation Hess Corporation Marathon Oil Corporation Murphy Oil Corporation Nabors Industries Ltd. National Oilwell Varco, Inc. Schlumberger Limited Superior Energy Services, Inc. TechnipFMC Transocean Ltd. Weatherford International plc The Williams Companies, Inc. 39 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis 2020 Cycle – Performance Matrix At the end of the three-year award cycle, the average ROCE of Halliburton and the performance peer group will be calculated and performance percentiles will be determined. If Halliburton’s relative performance ranking is between the 25th and 75th percentiles, the payout will be interpolated accordingly. If Halliburton’s relative performance ranking is below the 25th percentile, there will not be a payout. In addition, as discussed above, based on shareholder feedback, the Compensation Committee also introduced a relative TSR modifier that compares three-year performance against the OSX and can increase or decrease the incentive opportunity payout by 25%. The modifier imposes an award penalty for bottom quartile performance and an incentive for top quartile performance as follows: HAL ROCE Ranking vs. Performance Peer Group Below Threshold <25th percentile Threshold 25th percentile Plan 50th percentile Challenge ≥75th percentile Unadjusted Incentive Opportunity1 0% 25% 100% 200% Lower Quartile Performance ≤25th percentile 75% 0% (0% x 75%) 18.75% (25% x 75%) 75% (100% x 75%) 150% (200% x 75%) Relative TSR Modifier 2nd/3rd Quartile Performance >25th percentile & <75th percentile MULTIPLIER 100% 0% (0% x 100%) 25% (25% x 100%) 100% (100% x 100%) 200% (200% x 100%) Upper Quartile² Performance ≥75th percentile 125% 0% (0% x 125%) 31.25% (25% x 125%) 125% (100% x 125%) 250% (200% x 125%) ¹ If Halliburton’s relative ROCE performance ranking is between the 25th and 75th percentiles, the payout will be interpolated accordingly. 2 If TSR is in the upper quartile but negative, the TSR Modifier will not apply. Any awards earned at the end of the 2020 cycle will be issued 50% in stock and 50% in cash. 2018 Cycle PUP The table below shows the incentive opportunity based on Halliburton’s ROCE performance relative to that of our performance peer group for the 2018 cycle of the PUP that ended on December 31, 2020. We achieved ROCE of -2.1% which was above the 75th percentile of our performance peer group’s ROCE of -3.7% and yielded an award paid at 200% of the target opportunity level. 2018 Cycle – Performance Matrix Halliburton Ranking vs. Performance Peer Group Threshold 25th Percentile Target 50th Percentile Maximum 75th Percentile Incentive Opportunity as a % of Target 25% 100% 200% The NEOs received payments in 2021 as set forth in the Non-Equity Incentive Plan Compensation column in the Summary Compensation Table. The program allows for rewards to be paid in cash, stock, or a combination of cash and stock. 40 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis Other Executive Benefits and Policies Retirement and Savings Plan All NEOs may participate in the Halliburton Retirement and Savings Plan, which is the defined contribution benefit plan available to all eligible U.S. employees. The matching contribution amounts we contributed on behalf of each NEO are included in the Supplemental Table: All Other Compensation. Supplemental Executive Retirement Plan The objective of the Supplemental Executive Retirement Plan, or SERP, is to provide a competitive level of pay replacement upon retirement. The current pay replacement target is 75% of base salary at age 65 with 25 years of service, using the highest annual salary during the last three years of employment. The material factors and guidelines considered in making an allocation include: (i) retirement benefits provided, both qualified and nonqualified; (ii) current compensation; (iii) length of service; and (iv) years of service to normal retirement. The calculation takes into account the following variables: (i) base salary; (ii) years of service; (iii) age; (iv) employer portion of qualified plan savings; (v) age 65 value of any defined benefit plan; and (vi) existing nonqualified plan balances and any other retirement plans. Several assumptions are made annually and include a base salary increase percentage, qualified and nonqualified plan contributions and investment earnings, and an annuity rate. These factors are reviewed and approved annually by the Compensation Committee in advance of calculating any awards. To determine the annual benefit, external actuaries calculate the total lump sum retirement benefit needed at age 65 from all company retirement sources to produce an annual retirement benefit of 75% of highest annual salary during the last three years of employment. Company retirement sources include any Company contributions to qualified benefit plans and contributions to nonqualified benefit plans. If the combination of these two sources does not yield a total retirement balance that will meet the 75% objective, then contributions may be made annually through the SERP to bring the total benefit up to the targeted level. To illustrate, assume $10 million is needed at age 65 to produce an annual retirement benefit equal to 75% of base salary. The participant is projected to have $3 million in his qualified benefit plans resulting from Company contributions at retirement and $4 million in his nonqualified retirement plans resulting from Company contributions at retirement. Since the total of these two sources is $7 million, a shortfall of $3 million results. This is the amount needed to achieve the 75% pay replacement objective. This shortfall may be offset through annual contributions to the SERP. Participation in the SERP is limited to the direct reports of the CEO and other selected executives as recommended by the CEO and approved at the discretion of the Compensation Committee. However, participation one year does not guarantee future participation. In 2020, the Compensation Committee authorized retirement allocations under the SERP to all NEOs as listed in the Supplemental Table: All Other Compensation and the 2020 Nonqualified Deferred Compensation table. All of the NEOs, except Mr. Loeffler, are fully vested in their respective account balances. Balances for active and terminated participants earn interest at an annual rate of 5% and 10%, respectively. Elective Deferral Plan All NEOs may participate in the Halliburton Elective Deferral Plan, which was established to provide highly compensated employees with an opportunity to defer earned base salary and incentive compensation in order to help meet retirement and other future income needs. Participants may elect to defer up to 75% of their annual base salary and up to 75% of their incentive compensation into the plan. Deferral elections must be made on an annual basis, including the type and timing of distribution. Plan earnings are based on the NEO’s choice of up to 12 investment options with varying degrees of risk, including the risk of loss. Investment options may be changed by the NEO daily. In 2020, none of our NEOs participated in this plan. Messrs. Rainey and Richard have account balances from participation in the plan in prior years. Messrs. Miller, Loeffler, and Carre are not participants in the plan. Further details can be found in the 2020 Nonqualified Deferred Compensation table. 41 HALLIBURTON ❘ 2021 Proxy StatementCompensation Discussion and Analysis Benefit Restoration Plan The Halliburton Company Benefit Restoration Plan provides a vehicle to restore qualified plan benefits which are reduced as a result of limitations on contributions imposed under the Internal Revenue Code (IRC) or due to participation in other plans we sponsor and to defer compensation that would otherwise be treated as excessive remuneration within the meaning of IRC Section 162(m). Awards are made annually to those who meet these criteria and earned interest at an annual rate as defined by the plan document. Awards and corresponding interest balances are 100% vested and distributed upon separation. In accordance with the plan document, participants earn monthly interest at the 120% AFR rate, provided the interest rate shall be no less than 6% per annum or greater than 10% per annum. Because the 120% AFR rate was below the 6% minimum interest threshold, plan participants earned interest at an annual rate of 6% in 2020. In 2020, all NEOs received awards under this plan in the amounts included in the Supplemental Table: All Other Compensation and the 2020 Nonqualified Deferred Compensation table. Perquisites Effective January 1, 2019, we eliminated several perquisites including tax gross ups for personal use of corporate aircraft, executive physical examinations, and financial planning reimbursements. We also eliminated reimbursements for country club dues for all of our NEOs. We do not provide cars to our NEOs. However, a car and part-time driver is available for Mr. Miller’s limited use as needed for security purposes and so that he can work while in transit to meet customers or attend business-related functions. We provided security at the personal residences of Mr. Miller during 2020. As a result of the recommendations provided by an independent, third-party security consultant, the Board has determined that Mr. Miller must use company aircraft for all travel. The security study also recommends that his spouse and children use company-provided aircraft. Mr. Rainey is an expatriate under our long-term expatriate business practice. A differential is commonly paid to expatriates in assignment locations where the cost of goods and services is greater than the cost for the same goods and services in the expatriate’s home country. Differentials are determined by Mercer/ORC, a third-party consultant. Mr. Rainey receives certain assignment allowances, including a goods and services differential and host country housing and utilities. He also participates in our tax equalization program, which neutralizes the tax effect of the international assignment and approximates the tax obligation the expatriate would pay in his home country. Specific amounts for the above-mentioned perquisites are detailed for each NEO in the Supplemental Table: All Other Compensation. Clawback Policy We have a clawback policy under which we will seek to recoup incentive compensation in all appropriate cases paid to, awarded, or credited for the benefit of any of our executive officers, which include all NEOs, if and to the extent that: zz The amount of incentive compensation was calculated based on the achievement of financial results that were subsequently reduced due to a restatement of our financial results; zz The officer engaged in fraudulent conduct that caused the need for the restatement; and zz The amount of incentive compensation that would have been paid to, awarded, or credited for the benefit of the officer, had our financial results been properly reported, would have been lower than the amount actually paid, awarded, or credited. The policy also provides that we will seek to recoup incentive compensation in all appropriate cases paid to, awarded to, or credited for the benefit of any of our executive officers, which include all NEOs, and certain other senior officers, if and to the extent that: zz It is determined that, in connection with the performance of that officer’s duties, he or she breached his or her fiduciary duty by knowingly or recklessly engaging in a material violation of a U.S. federal or state law, or failed to supervise an employee who substantially participated in such a violation; or zz The officer is named as a defendant in a law enforcement proceeding for having breached his or her fiduciary duty by knowingly or recklessly engaging in a material violation of a U.S. federal or state law, the officer disagrees with the allegations relating to the proceeding, and either (i) we initiate a review and determine that the alleged action is not indemnifiable or (ii) the officer does not prevail at trial, enters into a plea arrangement, agrees to the entry of a final administrative or judicial order imposing sanctions, or otherwise admits to the violation in a legal proceeding. The disinterested members of the Board and the disinterested members of the Compensation Committee and the Nominating and Corporate Governance Committee may be involved in reviewing, considering, and making determinations regarding the officer’s alleged conduct, whether recoupment is appropriate or required, and the type and amount of incentive compensation to be recouped from the officer. The policy also provides that, to the extent permitted by applicable law and not previously disclosed in a filing with the SEC, we will disclose in our proxy statement the circumstances of any recoupment arising under the policy or that there has not been any recoupment pursuant to the policy for the prior calendar year. There was no recoupment under the policy in 2020. 42 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comCompensation Discussion and Analysis Stock Ownership Requirements We have stock ownership requirements for our executive officers, which include all NEOs, to further align their interests with our shareholders. Our CEO is required to own Halliburton common stock in an amount equal to or in excess of six times his annual base salary. Executive officers that report directly to the CEO are required to own an amount of Halliburton common stock equal to or in excess of three times their annual base salary, and all other executive officers are required to own an amount of Halliburton common stock equal to or in excess of two times their annual base salary. The Compensation Committee reviews their holdings, which include restricted shares and all other Halliburton common stock Hedging and Pledging Policy We have a policy under which our Directors and executive officers, which include all NEOs, and certain senior officers are prohibited from: zz hedging activities related to Halliburton securities; and zz the pledging of Halliburton securities. Additionally, the policy: owned by the officer, at each December meeting. Each executive officer has five years to meet the requirements, measured from the date the officer becomes subject to the ownership level for the applicable office. After the five-year stock ownership period, as described above, executive officers who have not met their minimum ownership requirement must retain 100% of the net shares acquired upon restricted stock vesting until they achieve their required ownership level. During this time period, any stock option exercise must be an exercise and hold. As of December 31, 2020, all NEOs met the requirements. The policy defines hedging activities as the use of any financial instrument designed to hedge or offset a change in the market value of any Halliburton security, and defines pledging as the use of a Halliburton security or any related derivative security as collateral for any form of indebtedness. zz discourages all employees and Directors from speculative activities in Halliburton securities and related derivative securities, such as puts or call options; issued by any Halliburton entity, and any other security directly or indirectly exercisable for or convertible or exchangeable into any Halliburton security; and zz applies to all Halliburton securities, including restricted stock, restricted stock units, options, and debt securities, which are zz applies regardless of whether or not the securities were acquired from our equity compensation plans. Elements of Post-Termination Compensation and Benefits Termination events that trigger payments and benefits include normal or early retirement, cause, death, disability, and voluntary termination. Post-termination or change-in-control payments may include severance, accelerated vesting of restricted stock and stock options, payments under cash-based short- and long-term incentive plans, share vesting under the long-term incentive plan, payout of nonqualified account balances, and health benefits, among others. The impact of various events on each element of compensation for the NEOs is detailed in the Post-Termination or Change-In-Control Payment table. Impact of Regulatory Requirements on Compensation IRC Section 162(m) generally disallows a tax deduction to public companies for compensation paid to the CEO, CFO, or any of the three other most highly compensated officers to the extent the compensation exceeds $1 million in any year. Effective for tax years beginning after December 31, 2017, Section 162(m) has been revised to eliminate the performance-based compensation exception. believes that the elimination of the deduction on compensation payable in excess of the $1 million limitation for our NEOs is not material relative to the benefit of being able to attract and retain talented management. Accordingly, our Compensation Committee will continue to pay compensation that is not deductible. Although the tax deductibility of compensation is a consideration evaluated by our Compensation Committee, the Committee 43 HALLIBURTON ❘ 2021 Proxy StatementExecutive Compensation Tables Summary Compensation Table The following tables set forth information regarding our CEO, CFO, and our three other most highly compensated executive officers for the fiscal year ended December 31, 2020. Name and Principal Position Year Salary ($) Bonus ($) Jeffrey A. Miller 2020 1,300,000 Chairman, President and Chief Executive Officer 2019 1,500,000 2018 1,400,000 Lance Loeffler Executive Vice President and Chief Financial Officer Eric J. Carre Executive Vice President – Global Business Lines Joe D. Rainey President – Eastern Hemisphere Mark J. Richard President – Western Hemisphere 2020 2019 2018 2020 2019 2020 2019 2018 2020 2019 709,333 650,000 375,000 746,667 800,000 849,333 910,000 875,000 756,000 716,678 0 0 0 0 0 0 0 0 0 0 0 0 Option Awards ($) Non-Equity Incentive Plan Compensation ($) Change In Pension Value and NQDC Earnings ($) 0 0 9,456,914 5,730,380 252,566 139,300 Stock Awards ($) 9,687,697 3,584,073 3,137,712 1,253,184 9,628,708 2,554,478 888,858 0 0 0 0 0 1,316,925 626,190 60,626 2,534,094 2,485,124 2,455,778 848,065 3,256,812 1,129,322 0 0 0 0 All Other Compensation ($) Total ($) 1,622,208 22,319,385 1,799,861 12,753,614 1,533,288 16,999,898 504,508 3,788,044 465,091 2,008,605 218,632 2,597,642 697,483 6,523,535 737,503 4,916,158 47,006 19,725 4,656 269 89,513 45,466 3,378,792 3,307,924 490,397 409,467 4,868,394 12,843,728 2,368,494 8,125,207 1,223,016 488,976 5,240,944 11,626 3,135,200 10,974,762 3,226,875 1,129,322 0 0 2,000,000 123,041 1,337,580 7,443,496 1,656,000 88,574 1,321,431 4,912,005 Supplemental Summary Compensation Table Information for CEO As described in the CD&A section entitled “CEO Compensation: Understanding the Summary Compensation Table”, there are two key factors to consider when analyzing our CEO’s reported compensation in this year’s Summary Compensation Table (SCT): zz Mr. Miller’s promotion to CEO in 2018, which increased his target market competitive pay levels, primarily impacting the amount earned under the Performance Unit Program in 2020 as compared to 2019; and zz Based on shareholder feedback, we fundamentally changed the structure of our long-term incentives. As a result, we are required to report performance awards for 2020 from two different plan years in this proxy statement. This means that we are reporting both the cash earned for the 2018 PUP cycle and target equity granted for the 2020 PUP cycle, resulting in an additional $5M being reported in the Stock Awards column of the SCT. The following table shows 2020 total compensation as reported in the SCT adjusted to remove the value attributed to the target level equity performance shares granted for the 2020 PUP cycle. This table is not intended to replace the SCT. The table is intended to present a picture of Mr. Miller’s compensation for 2020 as viewed by the Compensation Committee when setting target total compensation for Mr. Miller. Name Year Salary ($) Bonus ($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) Change In Pension Value and NQDC Earnings ($) All Other Compensation ($) Total ($) Jeffrey A. Miller 2020 1,300,000 0 4,691,304 0 9,456,914 252,566 1,622,208 17,322,992 44 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com Executive Compensation Tables stated in the applicable nonqualified plan document and the Internal Revenue Service Long-Term 120% AFR rate as of December 31, 2020. The 120% AFR rate used for determining above-market earnings in 2020 was 1.58%. Supplemental Executive Retirement Plan Above-Market Earnings. The current interest rate for active participant accounts in the Supplemental Executive Retirement Plan is 5% as defined by the plan document. The above-market earnings for active participants equaled 3.42% (5% (plan interest) minus 1.58%) for 2020. NEOs earned above-market earnings for their balances associated with the plan as follows: $226,453 for Mr. Miller; $17,594 for Mr. Loeffler; $77,522 for Mr. Carre; $232,796 for Mr. Rainey; and $39,758 for Mr. Richard. Benefit Restoration Plan Above-Market Earnings. In accordance with the plan document, participants earn monthly interest at the 120% AFR rate, provided the interest rate shall be no less than 6% per annum or greater than 10% per annum. Because the 120% AFR rate was below the 6% minimum interest threshold, the above-market earnings associated with this plan were 4.42% (6% (plan interest) minus 1.58%) for 2020. NEOs earned above-market earnings for their balances associated with the plan as follows: $26,113 for Mr. Miller; $2,131 for Mr. Loeffler; $11,991 for Mr. Carre; $23,881 for Mr. Rainey; and $7,546 for Mr. Richard. Elective Deferral Plan Above-Market Earnings. The average NEO earnings for the balances associated with the Elective Deferral Plan were 6.78% for 2020. The above-market earnings associated with this plan equaled 5.20% (6.78% minus 1.58%) for 2020. NEOs earned above-market earnings for balances associated with the plan as follows: $233,720 for Mr. Rainey; and $75,737 for Mr. Richard. Messrs. Miller, Loeffler, and Carre are not participants in and do not have any prior balances in the Elective Deferral Plan. The amounts shown in this column differ from the amounts shown for the Supplemental Executive Retirement Plan, the Benefit Restoration Plan, and the Elective Deferral Plan in the 2020 Nonqualified Deferred Compensation table under the Aggregate Earnings in Last Fiscal Year column because that table includes all earnings and losses and the Summary Compensation Table shows above-market earnings only. All Other Compensation. Detailed information for amounts included in the All Other Compensation column can be found in the Supplemental Table: All Other Compensation. Salary. The amounts in the Salary column reflect the salary earned by each NEO. Stock Awards. The amounts in the Stock Awards column reflect the aggregate grant date fair value of the restricted stock and performance shares awarded in 2020. As noted in the Supplemental Summary Compensation Table Information for CEO, the amount for performance shares awarded in 2020 has been removed from that table. Each amount reflects an accounting expense and does not correspond to actual value that may be realized by a NEO in the future. Except where there is a distinction to make between the two types of awards, this proxy statement refers to both restricted stock and restricted stock units as “restricted stock”. We calculate the fair value of restricted stock awards by multiplying the number of restricted shares or restricted stock units granted by the closing stock price on the grant date. For the performance shares, a Monte Carlo simulation that uses a probabilistic approach was performed by an actuary to determine grant date fair value. The NEOs may never realize any value from these performance shares and, to the extent that they do, the amounts realized may have no correlation to the amounts reported above. Option Awards. As discussed in Compensation Discussion and Analysis, we discontinued granting Option Awards to NEOs in 2019. Non-Equity Incentive Plan Compensation. The Non-Equity Incentive Plan Compensation column reflects amounts earned in 2020 and paid in 2021 for the 2018 cycle Performance Unit Program. The 2018 cycle Performance Unit Program amounts paid to each NEO are: $9,456,914 for Mr. Miller; $2,534,094 for Mr. Carre; $3,378,792 for Mr. Rainey; and $2,000,000 for Mr. Richard. Mr. Loeffler was not a participant in the 2018 cycle Performance Unit Program. The amounts paid to the NEOs for the 2018 cycle Performance Unit Program differ from what is shown in the Grants of Plan-Based Awards in Fiscal Year 2020 table under Estimated Future Payments Under Non-Equity Incentive Plan Awards. That table indicates the potential award amounts payable in cash under the 2020 cycle Performance Unit Program, which will close on December 31, 2022. As discussed in the Compensation Discussion and Analysis, no amounts were earned by our NEOs under the 2020 Halliburton Annual Performance Pay Plan because the minimum threshold performance level was not achieved. Change in Pension Value and NQDC Earnings. The amounts in the Change in Pension Value and NQDC Earnings column are attributable to the above-market earnings for various nonqualified plans. The methodology for determining what constitutes above- market earnings is the difference between the interest rate as 45 HALLIBURTON ❘ 2021 Proxy StatementExecutive Compensation Tables Supplemental Table: All Other Compensation The following table details the components of the All Other Compensation column of the Summary Compensation Table for 2020. Halliburton Foundation ($) Halliburton Giving Choices ($) HALPAC ($) Restricted Stock Dividends ($) HRSP Employer Match ($) Benefit Restoration Plan ($) Name Expatriate Assignment ($) SERP ($) All Other ($) Total ($) Jeffrey A. Miller 112,500 Lance Loeffler 17,325 1,000 575 5,000 5,000 Eric J. Carre Joe D. Rainey 0 0 0 0 0 0 159,818 13,313 50,750 1,266,000 28,462 13,929 21,217 418,000 42,900 14,000 23,083 617,000 0 0 0 13,827 1,622,208 0 504,508 500 697,483 0 13,758 28,217 1,014,000 3,812,419 0 4,868,394 Mark J. Richard 45,000 460 5,000 32,320 14,250 23,550 1,217,000 0 0 1,337,580 Halliburton Foundation. The Halliburton Foundation allows NEOs and other employees to donate to approved universities, medical hospitals, and primary schools of their choice. In 2020, the Halliburton Foundation matched donations up to $20,000 on a 2.25 for 1 basis. Mr. Miller participated in the Halliburton Foundation’s matching program for Directors, which allowed his 2020 contributions up to $50,000 to qualified organizations to be matched on a 2.25 for 1 basis. Halliburton Giving Choices. The Halliburton Giving Choices Program allows NEOs and other employees to donate to approved not-for-profit charities of their choice. We match donations by contributing ten cents for every dollar contributed by employees. The amounts shown represent the match amounts the program donated to charities on behalf of the NEOs in 2020. Halliburton Political Action Committee. The Halliburton Political Action Committee, or HALPAC, allows NEOs and other eligible employees to donate to political candidates and participate in the political process. We match the NEOs’ and other employees’ donations to HALPAC dollar-for-dollar to a 501(c)(3) status nonprofit organization of the contributor’s choice. The amounts shown represent the match amounts donated to charities on behalf of the NEOs in 2020. Restricted Stock Dividends. This is the amount of dividends paid on restricted stock held by NEOs in 2020. Restricted stock units granted to employees do not receive dividend payments. Retirement and Savings Plan Employer Match. This is the contribution we made on behalf of each NEO to the Halliburton Retirement and Savings Plan, our defined contribution plan. We match employee contributions up to 5% of each employee’s eligible base salary up to the 401(a)(17) compensation limit of $285,000 in 2020. Benefit Restoration Plan. This is the award earned under the Benefit Restoration Plan in 2020 as discussed in the Benefit Restoration Plan section of Compensation Discussion and Analysis. Associated interest, awards, and beginning and ending balances for the Benefit Restoration Plan are included in the 2020 Nonqualified Deferred Compensation table. Supplemental Executive Retirement Plan. This is the award approved under the Supplemental Executive Retirement Plan in 2020 as discussed in the Supplemental Executive Retirement Plan section of Compensation Discussion and Analysis. Associated interest, awards, and beginning and ending balances for the Supplemental Executive Retirement Plan are included in the 2020 Nonqualified Deferred Compensation table. Expatriate Assignment. In 2020, Mr. Rainey received compensation associated with his expatriate assignment similar in type to that received by other expatriates on comparable assignments. He received $88,180 for cost of living adjustment; $84,933 for mobility premium; $3,501,795 for tax equalization; $107,601 for imputed housing allowance; $16,840 for tax preparation; and $13,070 for auto imputed allowance. All Other. zz Aircraft Usage. As a result of the recommendations provided by an independent, third-party security consultant, the Board has determined that Mr. Miller must use company aircraft for all travel. The security study also recommends that his spouse and children use company-provided aircraft. For 2020, the incremental cost to us for this personal use of our aircraft was $8,978 for Mr. Miller. For total compensation purposes in 2020, we valued the incremental cost of the personal use of aircraft using a method that takes into account: landing, parking, hanger, flight planning services, and dead-head costs; crew travel expenses; supplies and catering; aircraft fuel and oil expenses per hour of flight; any customs, foreign permit, and similar fees; and passenger ground transportation. NEOs are not reimbursed for the tax impact of any imputed income resulting from aircraft usage. zz Home Security. We provide security for residences based on risk assessments. In 2020, home security costs were as follows: $2,100 for Mr. Miller. zz Car/Driver. A car and part-time driver is available for Mr. Miller’s limited use as needed for security purposes and so that he can work while in transit to meet customers or attend business- related functions. In 2020, the cost to us for personal use was $2,749. zz Other Compensation for Mr. Carre. In 2020, Mr. Carre received $500 in tax preparation fees. 46 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comExecutive Compensation Tables Executive Compensation Tables Grants of Plan-Based Awards in Fiscal 2020 The following table represents amounts associated with the 2020 cycle Performance Unit Program, the 2020 Annual Performance Pay Plan, and restricted stock awards granted in 2020 to our NEOs. Estimated Future Payouts Under Non-Equity Incentive Plan Awards Estimated Future Payouts Under Equity Incentive Plan Awards Name Grant Date Threshold ($) Target ($) Maximum ($) Threshold (#) Target (#) Maximum (#) Jeffrey A. Miller 998,250 3,993,000 9,982,500 (1) 900,000 2,250,000 4,500,000(2) All Other Stock Awards: Number of Shares of Stock or Units (#) Grant Date Fair Value of Stock and Options Awards ($)(4) Lance Loeffler Eric J. Carre Joe D. Rainey Mark J. Richard 1/2/2020 12/2/2020 1/2/2020 12/2/2020 1/2/2020 12/2/2020 1/2/2020 12/2/2020 1/2/2020 12/2/2020 247,788 991,150 2,477,875(1) 304,000 760,000 1,520,000(2) 235,800 943,200 2,358,000(1) 320,000 800,000 1,600,000(2) 315,000 1,260,000 3,150,000(1) 400,400 1,001,000 2,002,000(2) 315,000 1,260,000 3,150,000(1) 356,400 891,000 1,782,000(2) 48,693 194,773 486,933(3) 4,996,393 266,400 4,691,304 12,075 48,300 120,750(3) 1,239,011 74,700 1,315,467 11,525 46,100 115,250(3) 1,182,575 72,300 1,273,203 15,350 61,400 153,500(3) 1,575,057 95,500 1,681,755 15,350 61,400 153,500(3) 1,575,057 93,800 1,651,818 (1) Cash opportunity levels under the 2020 cycle of the Performance Unit Program. (2) Cash opportunity levels under the 2020 Halliburton Annual Performance Pay Plan. (3) Share opportunity levels under the 2020 cycle of the Performance Unit Program. (4) With respect to restricted stock awards, this column reflects the grant date fair value of the award. With respect to equity-based incentive awards under the PUP, this column reflects the grant date fair value at target. As indicated by footnotes (1) and (3), the cash opportunities for each NEO under the 2020 cycle Performance Unit Program if the Threshold, Target, or Maximum levels are achieved are reflected under Estimated Future Payouts Under Non-Equity Incentive Plan Awards and the share opportunities are reflected under Estimated Future Payouts Under Equity Incentive Plan Awards. The potential payouts are performance driven and completely at risk. For more information on the 2020 cycle Performance Unit Program, refer to Long-term Incentives in Compensation Discussion and Analysis. As indicated by footnote (2), the opportunities for each NEO under the 2020 Halliburton Annual Performance Pay Plan are also reflected under Estimated Future Payouts Under Non-Equity Incentive Plan Awards. The potential payouts are performance driven and completely at risk. For more information on the 2020 Halliburton Annual Performance Pay Program, refer to Short-term (Annual) Incentive in Compensation Discussion and Analysis. No amounts were earned by our NEOs under the 2020 Halliburton Annual Performance Pay Plan because the minimum threshold performance level was not achieved. All restricted stock awards are granted under the Stock and Incentive Plan. The awards listed under All Other Stock Awards: Number of Shares of Stock or Units were awarded to each NEO on the date indicated by the Compensation Committee. The restricted stock grants awarded to the NEOs during 2020 are subject to a graded vesting schedule of 20% per year over five years. All restricted shares are priced at fair market value on the date of grant. Quarterly dividends are paid on the restricted shares at the same time and rate payable on our common stock, which was $0.18 per share during the first quarter of 2020 and $0.045 per share during the last three quarters of 2020. The shares may not be sold or transferred until fully vested. The shares remain subject 47 HALLIBURTON ❘ 2021 Proxy Statement Executive Compensation Tables to forfeiture during the restricted period in the event of the NEO’s termination of employment or an unapproved early retirement. The performance share grants awarded to the NEOs during 2020 are subject to a three-year performance period. All performance shares are priced at fair market value on the date of grant. Quarterly dividends will not be paid during the performance period but shall be accrued and paid in cash at the time, and to the extent, the underlying shares of Company common stock are delivered. Outstanding Equity Awards at Fiscal Year End 2020 The following table represents outstanding stock option and restricted stock awards for our NEOs as of December 31, 2020. The market value of shares or units of stock not vested was determined by multiplying the number of unvested restricted shares at year end by the closing price of our common stock on the NYSE of $18.90 on December 31, 2020. Option Awards Stock Awards Option Expiration Date 12/4/2023 12/3/2024 12/2/2025 12/7/2026 12/6/2027 12/5/2028 Number of Shares or Units of Stock Not Vested (#) Market Value of Shares or Units of Stock Not Vested ($) – – – – – – 8,360 158,004 150,000 2,835,000 30,840 59,880 582,876 1,131,732 133,547 2,524,038 Equity Incentive Plan Awards: # Unearned Shares Units or Other Rights Not Vested (#) Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares Units or Other Rights Not Vested ($) – – – – – – – – – – – – – – – – – – 194,773 3,681,210 266,400 5,034,960 – – Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Option Exercise Price ($) Name Grant Date Jeffrey A. Miller(1) 12/4/2013 55,700 12/3/2014 115,100 50.62 40.75 38.95 53.54 43.38 31.44 – – – – – – 57,066 – – – 99,200 69,500 – 128,500 114,134 – – – 12/2/2015 12/7/2016 6/1/2017 12/6/2017 12/5/2018 12/4/2019 1/2/2020 12/2/2020 1/2/2015 1/4/2016 1/3/2017 1/2/2018 12/5/2018 12/4/2019 1/1/2020 12/2/2020 TOTAL Lance Loeffler(2) 582,134 57,066 649,027 12,266,610 194,773 3,681,210 39.49 34.48 55.68 49.61 31.44 1/2/2025 1/4/2026 1/3/2027 1/2/2028 12/5/2028 15,594 27,912 16,678 13,611 34,067 – – – – – – 6,805 17,033 – – – – 2,088 2,592 4,596 17,880 33,120 – – 39,463 48,989 86,864 337,932 625,968 – – – – – – – – – – – – – 48,300 912,870 74,700 1,411,830 – – TOTAL 107,862 23,838 134,976 2,551,046 48,300 912,870 48 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com Executive Compensation Tables Option Awards Stock Awards Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Option Exercise Price ($) 8,300 24,750 9,534 – 30,100 34,425 33,401 – – – 50.01 39.49 34.48 53.54 43.38 31.44 – – – – – – 16,699 – – – Option Expiration Date 1/2/2024 1/2/2025 1/4/2026 12/7/2026 12/6/2027 12/5/2028 Number of Shares or Units of Stock Not Vested (#) Market Value of Shares or Units of Stock Not Vested ($) – – 3,341 40,000 3,620 8,280 17,520 31,600 – – 63,145 756,000 68,418 156,492 331,128 597,240 Equity Incentive Plan Awards: # Unearned Shares Units or Other Rights Not Vested (#) Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares Units or Other Rights Not Vested ($) – – – – – – – – – – – – – – – – – – 46,100 871,290 72,300 1,366,470 – – 140,510 16,699 176,661 3,338,893 46,100 871,290 14,566 37,933 45,500 59,500 58,700 40,100 – 45,900 44,534 – – – – – – – – – – – 22,266 – – – 35.57 33.50 50.62 40.75 38.95 53.54 43.38 31.44 12/6/2021 12/5/2022 12/4/2023 12/3/2024 12/2/2025 12/7/2026 12/6/2027 12/5/2028 – – – – – – – – – – 4,840 91,476 54,089 1,022,282 11,040 23,340 42,080 208,656 441,126 795,312 – – – – – – – – – – – – – – – – – – – – – – 61,400 1,160,460 95,500 1,804,950 – – 346,733 22,266 230,889 4,363,802 61,400 1,160,460 4,600 6,400 13,900 7,900 14,807 28,604 17,119 16,013 29,283 – – – – – – – – – – 8,006 40.83 34.15 36.31 50.01 39.49 34.48 55.68 49.61 1/1/2021 1/3/2022 1/3/2023 1/2/2024 1/2/2025 1/4/2026 1/3/2027 1/2/2028 14,641 27.14 12/20/2028 – – – – – – – – 3,341 4,163 8,466 15,474 42,080 – – – – – – 63,145 78,681 160,007 292,459 795,312 – – – – – – – – – – – – – – – – – – – – – 61,400 1,160,460 93,800 1,772,820 – – Name Grant Date Eric J. Carre(3) TOTAL Joe D. Rainey(4) TOTAL Mark J. Richard(5) 1/2/2014 1/2/2015 1/4/2016 5/1/2016 12/7/2016 12/6/2017 12/5/2018 12/4/2019 1/2/2020 12/2/2020 12/6/2011 12/5/2012 12/4/2013 12/3/2014 12/2/2015 12/7/2016 5/17/2017 12/6/2017 12/5/2018 12/4/2019 12/2/2020 1/1/2020 1/1/2011 1/3/2012 1/3/2013 1/2/2014 1/2/2015 1/4/2016 1/3/2017 1/2/2018 12/20/2018 12/4/2019 1/1/2020 12/2/2020 TOTAL 138,626 22,647 167,324 3,162,424 61,400 1,160,460 49 HALLIBURTON ❘ 2021 Proxy Statement Executive Compensation Tables (1) Mr. Miller’s stock option awards vest annually in equal amounts over three-year vesting schedules. His restricted stock awards vest in equal amounts over each grant’s five-year vesting schedule, except for the June 1, 2017, award, which will vest 100% five years from the date of grant. (2) Mr. Loeffler’s stock option awards vest annually in equal amounts over three-year vesting schedules. His restricted stock awards vest in equal amounts over each grant’s five-year vesting schedule. (3) Mr. Carre’s stock option awards vest annually in equal amounts over three-year vesting schedules. His restricted stock awards vest in equal amounts over each grant’s five-year vesting schedule, except for the May 1, 2016, award, which will vest 100% five years from the date of grant. (4) Mr. Rainey’s stock option awards vest annually in equal amounts over three-year vesting schedules. His restricted stock awards vest in equal amounts over each grant’s five-year vesting schedule, except for the May 17, 2017, award, which will vest 100% five years from the date of grant. (5) Mr. Richard’s stock option awards vest annually in equal amounts over three-year vesting schedules. His restricted stock awards vest in equal amounts over each grant’s five-year vesting schedule. 2020 Option Exercises and Stock Vested The following table represents stock options exercised and restricted shares that vested during fiscal year 2020 for our NEOs. Name Jeffrey A. Miller Lance Loeffler Eric J. Carre Joe D. Rainey Mark J. Richard Option Awards Stock Awards Number of Shares Acquired on Exercise (#) Value Realized on Exercise ($) Number of Shares Acquired on Vesting (#) – – – – – – – – – – 88,267 29,846 28,336 35,240 28,149 Value Realized on Vesting ($) 1,690,907 527,189 585,060 670,511 588,155 The value realized for vested restricted stock awards was determined by multiplying the fair market value of the shares (closing price of our common stock on the NYSE on the vesting date) by the number of shares that vested. Shares vested on various dates throughout the year. The value listed represents the aggregate value of all shares that vested for each NEO in 2020. 2020 Nonqualified Deferred Compensation The 2020 Nonqualified Deferred Compensation table reflects balances in our nonqualified plans as of January 1, 2020, contributions made by the NEO and us during 2020, earnings (the net of the gains and losses on funds, as applicable), distributions, and the ending balance as of December 31, 2020. The plans are described in Compensation Discussion and Analysis. Name Jeffrey A. Miller Plan SERP Lance Loeffler Eric J. Carre Benefit Restoration TOTAL SERP Benefit Restoration TOTAL SERP Benefit Restoration TOTAL Executive Contributions In Last Fiscal Year ($) Registrant Contributions In Last Fiscal Year ($) Aggregate Earnings In Last Fiscal Year ($) Aggregate Distributions ($) 0 0 0 0 0 0 0 0 0 1,266,000 327,723 50,750 35,465 1,316,750 363,188 418,000 25,477 21,217 2,898 439,217 28,375 617,000 112,201 23,083 16,286 640,083 128,487 0 0 0 0 0 0 0 0 0 01/01/20 Balance ($) 6,409,491 591,913 7,001,404 498,927 48,541 547,468 2,194,885 271,781 2,466,666 Aggregate Balance At Last Fiscal Year End ($) 8,003,214 678,128 8,681,342 942,404 72,656 1,015,060 2,924,086 311,150 3,235,236 50 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comExecutive Compensation Tables Name Joe D. Rainey Plan SERP Mark J. Richard Benefit Restoration Elective Deferral TOTAL SERP Benefit Restoration Elective Deferral TOTAL 01/01/20 Balance ($) 6,587,991 540,904 4,212,075 11,340,970 1,129,000 171,127 1,570,959 2,871,086 Executive Contributions In Last Fiscal Year ($) Registrant Contributions In Last Fiscal Year ($) Aggregate Earnings In Last Fiscal Year ($) Aggregate Distributions ($) Aggregate Balance At Last Fiscal Year End ($) 7,938,877 601,548 4,512,346 13,052,771 2,403,596 204,927 1,014,000 336,886 28,217 32,427 0 300,271 1,042,217 669,584 1,217,000 23,550 57,596 10,250 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100,558 209,823 1,461,694 1,240,550 168,404 209,823 4,070,217 Employment Contracts and Change-in-Control Arrangements Employment Contracts All of our NEOs have employment agreements with us that contain substantial non-compete and non-solicitation provisions post separation. The employment agreements provide that if the agreement is terminated by the employee for good reason or by death, disability, or retirement or his employment is terminated by the Company for any reason other than cause or a fiduciary violation, all restrictions on restricted stock and units will lapse. In addition, in the case of a termination by the employee for good reason or termination by the Company for any reason other than cause or a fiduciary violation, the employee will receive a lump sum cash payment equal to two years of his base salary then in effect. Change-In-Control Arrangements We do not maintain individual change-in-control agreements or provide for excise tax gross-ups on any payments associated with a change-in-control. Some of our compensation plans, however, contain change-in-control provisions, which could result in payment of specific benefits. Under the Stock and Incentive Plan, in the event of a change-in- control, awards granted after February 13, 2019, are subject to double-trigger vesting, such that, if a participant is terminated due to involuntary termination without cause, death, disability, good reason (as defined in an employment agreement, or a similar constructive termination event, in each case, only if a severance benefit is payable upon termination of employment due to such event pursuant to an employment agreement), or other event as specified in the participant’s award document within the period beginning on the date of the public announcement of a transaction that, if consummated, would constitute a corporate change and ending on the date that is the earlier of the announcement of the termination of the proposed transaction or two years after the consummation of the transaction (a Qualifying Termination), the following will occur automatically: zz any outstanding options and stock appreciation rights shall become immediately vested and fully exercisable for the full term thereof; zz any restrictions on restricted stock awards shall immediately lapse; zz all performance measures upon which an outstanding performance award is contingent are deemed achieved and the holder shall receive a payment equal to the target amount of the award he or she would have been entitled to receive; and zz any outstanding cash awards, including stock value equivalent awards, immediately vest and are paid based on the vested value of the award. Under the Annual Performance Pay Plan: zz in the event of a change-in-control during a plan year, a participant experiencing a Qualifying Termination will be entitled to payment equal to the target amount of the award he or she would have been entitled to receive, without proration; and zz in the event of a change-in-control after the end of a plan year but before the payment date, a participant will be entitled to an immediate cash payment equal to the incentive earned for the plan year. Under the Performance Unit Program: zz in the event of a change-in-control during a performance cycle, a participant experiencing a Qualifying Termination will be entitled to both a payment equal to the target amount of 51 HALLIBURTON ❘ 2021 Proxy StatementExecutive Compensation Tables the cash award he or she would have been entitled to receive and the vesting of the target amount of performance shares awarded, without proration; and zz the purchase date for the outstanding stock purchase rights will be accelerated to a date fixed by the Compensation Committee prior to the effective date of the change-in-control; and zz in the event of a change-in-control after the end of a performance cycle but before the payment and vesting date, a participant will be entitled to an immediate payment equal to the cash award earned and the vesting of performance shares earned for that performance cycle. zz upon such effective date, any unexercised stock purchase rights will expire and we will refund to each participant the amount of his or her payroll deductions made for purposes of the Employee Stock Purchase Plan that have not yet been used to purchase stock. Under the Employee Stock Purchase Plan, in the event of a change-in-control, unless the successor corporation assumes or substitutes new stock purchase rights: Post-Termination or Change-in-Control Payments The following tables and narratives represent the impact of certain termination events or a change-in-control on each element of compensation for NEOs as of December 31, 2020. Termination Event Early Retirement w/o Approval ($) Early Retirement w/Approval ($) Resignation ($) Normal Retirement ($) Term for Cause ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12,266,610 12,266,610 0 0 9,748,609 9,748,609 3,067,678 3,067,678 0 0 0 0 0 0 Name Jeffrey A. Miller Payments Severance Annual Perf. Pay Plan Restricted Stock Stock Options Performance Cash Performance Shares Term w/o Cause ($) 3,000,000 0 Change in Control ($) 0 0 12,266,610 4,707,612 Nonqualified Plans 8,681,342 8,681,342 8,681,342 8,681,342 8,681,342 8,681,342 Health Benefits 0 12,000 12,000 0 0 0 8,681,342 8,693,342 33,776,239 33,764,239 8,681,342 23,947,952 14,164,526 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,551,046 2,551,046 0 0 2,745,259 2,745,259 760,725 72,656 0 760,725 72,656 0 1,520,000 0 0 0 2,551,046 513,248 0 0 0 0 0 0 72,656 72,656 0 0 72,656 72,656 6,129,686 6,129,686 72,656 4,143,702 513,248 Nonqualified Plans 72,656 72,656 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,338,893 3,338,893 0 0 2,664,261 2,664,261 726,081 726,081 0 0 0 0 0 0 Nonqualified Plans 3,235,236 3,235,236 3,235,236 3,235,236 3,235,236 3,235,236 0 0 0 0 0 0 3,235,236 3,235,236 9,964,471 9,964,471 3,235,236 8,174,129 3,353,239 0 9,456,914 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,600,000 0 0 0 3,338,893 819,145 0 2,534,094 0 0 0 Lance Loeffler TOTAL Severance Annual Perf. Pay Plan Restricted Stock Stock Options Performance Cash Performance Shares Health Benefits TOTAL Eric J. Carre Severance Annual Perf. Pay Plan Restricted Stock Stock Options Performance Cash Performance Shares Health Benefits TOTAL 52 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comExecutive Compensation Tables Term w/o Cause ($) 1,820,000 0 Change in Control ($) 0 0 4,363,802 1,763,540 0 0 0 0 0 0 0 3,378,792 0 0 0 0 2,000,000 0 0 0 1,620,000 0 0 0 3,162,424 594,292 Termination Event Early Retirement w/o Approval ($) Early Retirement w/Approval ($) Resignation ($) Normal Retirement ($) Term for Cause ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,363,802 4,363,802 0 0 3,555,851 3,555,851 967,056 967,056 0 0 0 0 0 0 Name Payments Joe D. Rainey Severance Annual Perf. Pay Plan Restricted Stock Stock Options Performance Cash Performance Shares Nonqualified Plans 13,052,771 13,052,771 13,052,771 13,052,771 13,052,771 13,052,771 Health Benefits 0 12,000 12,000 0 0 0 13,052,771 13,064,771 21,951,480 21,939,480 13,052,771 19,236,573 5,142,332 Mark J. Richard TOTAL Severance Annual Perf. Pay Plan Restricted Stock Stock Options Performance Cash Performance Shares 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,162,424 3,162,424 0 0 3,555,851 3,555,851 967,056 967,056 0 0 0 0 0 0 Nonqualified Plans 4,070,218 4,070,218 4,070,218 4,070,218 4,070,218 4,070,218 Health Benefits TOTAL 0 12,000 12,000 0 0 0 4,070,218 4,082,218 11,767,549 11,755,549 4,070,218 8,852,642 2,594,292 Resignation. Resignation is defined as leaving employment with us voluntarily, without having attained early or normal retirement status (see the applicable sections below for information on what constitutes these statuses). Upon resignation, the following actions will occur for the NEO’s various elements of compensation: to the claims of our general creditors to the extent provided in the plan. The Elective Deferral Plan is unfunded and we make payments from our general assets. Payments from these plans may be paid in a lump sum or in annual installments for a maximum ten-year period. zz Severance Pay. No severance would be paid to the NEO. zz Health Benefits. The NEO is not eligible for the $12,000 credit zz Annual Performance Pay Plan. No payment would be made to the NEO under the Performance Pay Plan. zz Restricted Stock. Any restricted stock holdings would be forfeited upon the date of resignation. Restricted stock holdings information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Stock Options. The NEO must exercise outstanding, vested options within 30 to 90 days after the NEO’s resignation or the options will be forfeited as per the terms of the stock option agreements. Any unvested stock options would be forfeited. Stock option information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Performance Cash. The NEO would not be eligible to receive payments under the Performance Unit Program. zz Performance Shares. The NEO would not be eligible to receive performance shares under the Performance Unit Program. zz Nonqualified Plans. The NEO is entitled to any vested benefits under the applicable nonqualified plans as shown in the 2020 Nonqualified Deferred Compensation table. Payments from the Supplemental Executive Retirement Plan and Benefit Restoration Plan are paid out of an irrevocable grantor trust. The principal and income of the trust are treated as our assets and income for federal income tax purposes and are subject to assist in paying for retiree medical costs. Early Retirement. A NEO becomes eligible for early retirement when the NEO has attained age 55 with ten years of service or when the NEO’s age and years of service equals 70 points. Eligibility for early retirement does not guarantee retention of stock awards (lapse of forfeiture restrictions on restricted stock and ability to exercise outstanding options for the remainder of the stated term) or the pro rata distribution of performance awards, if earned. Early retirement eligibility is a condition that must be met before the Compensation Committee will consider retention of stock awards and pro rata participation in performance awards upon separation from employment. For example, if a NEO is eligible for early retirement but is leaving us to go to work for a competitor, then the NEO’s stock awards would not be considered for retention. Early Retirement (Without Approval). The impact on the NEO’s various elements of compensation is the same as described under Resignation except as follows: zz Health Benefits. A NEO that was age 40 or older as of December 31, 2004, and qualifies for early retirement under our health and welfare plans, which require that the NEO has attained age 55 with ten years of service or that the NEO’s age and years of service equals 70 points with a minimum of ten years 53 HALLIBURTON ❘ 2021 Proxy StatementExecutive Compensation Tables of service, is eligible for a $12,000 credit toward retiree medical costs incurred prior to age 65. The credit is only applicable if the NEO chooses Halliburton retiree medical coverage. This benefit is amortized as a monthly credit applied to the cost of retiree medical coverage based on the number of months from the time of early retirement to age 65. For example, if a NEO is 10 years or 120 months away from age 65 at the time of the NEO’s early retirement, the NEO will receive a monthly credit in the amount of $100 ($12,000/120 months). Should the NEO choose not to elect coverage with Halliburton after the NEO’s separation, the NEO would not receive any cash in lieu of the credit. Early Retirement (With Approval).The following actions will occur for the NEO’s various elements of compensation: zz Severance Pay. No severance would be paid to the NEO. zz Annual Performance Pay Plan. If the NEO retires prior to the end of the plan year for any reason other than death or disability, he would forfeit any payment due under the plan, unless the Compensation Committee determines that the payment should be prorated for the partial plan year. zz Restricted Stock. Any stock holdings restrictions would lapse upon the date of retirement. Restricted stock holdings information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Stock Options. The NEO will be granted retention of the NEO’s option awards. The unvested awards will continue to vest per the vesting schedule outlined in the NEO stock option agreements and any vested options will not expire until 10 years from the grant award date. Stock option information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Performance Cash. The NEO will participate on a prorated basis for any Performance Unit Program cycles that have not been completed at the time of the NEO’s retirement. These payments, if earned, are paid out and the NEO would receive payments at the same time as other participants, which is usually no later than March of the year following the close of the cycle. zz Performance Shares. The NEO will participate on a prorated basis for any Performance Unit Program cycles that have not been completed at the time of the NEO’s retirement. The shares, if earned, are vested and the NEO would receive the performance shares at the same time as other participants, which is usually no later than March of the year following the close of the cycle. zz Nonqualified Plans. The NEO is entitled to any vested benefits under the applicable nonqualified plans as shown in the 2020 Nonqualified Deferred Compensation table. Refer above to Resignation for more information on Nonqualified Plans. zz Health Benefits. Same as described under Early Retirement (Without Approval). Normal Retirement. A NEO would be eligible for normal retirement should the NEO cease employment at age 65 or later. The impact on the NEO’s various elements of compensation is the same as described under Early Retirement (With Approval) except as follows: zz Health Benefits The NEO is not eligible for the $12,000 credit to assist in paying for retiree medical costs. Termination (For Cause). Should we terminate a NEO for cause, such as violating our Code of Business Conduct, the impact on the NEO’s various elements of compensation is the same as described under Resignation. Termination (Without Cause). Should we terminate a NEO without cause, such as termination at our convenience, then the provisions of the NEO’s employment agreement related to severance payments and lapsing of stock restrictions would apply. Payments for these items are conditioned on a release agreement being executed by the NEO. The impact on the NEO’s various elements of compensation is the same as described under Normal Retirement except as follows: zz Severance Pay. Severance is paid according to terms of the applicable employment agreement. Each NEO would receive severance in the amount of two times base salary at the time of termination. zz Performance Cash. No payment would be paid to the NEO under the Performance Unit Program. zz Performance Shares. No performance shares would be vested under the Performance Unit Program. Change-in-Control. Should a change-in-control take place, the following actions will occur for the NEO’s various elements of compensation: zz Annual Performance Pay Plan. A NEO experiencing a Qualifying Termination will be entitled to payment equal to the target amount of the award he or she would have been entitled to receive, without proration. zz Restricted Stock. Restricted shares granted under the Stock and Incentive Plan prior to February 13, 2019, are automatically vested. Restricted shares granted on or after February 13, 2019, only vest in the event of a Qualifying Termination. Restricted stock holdings information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Stock Options. Any outstanding options granted under the Stock and Incentive Plan prior to February 13, 2019, shall become immediately vested and fully exercisable by the NEO. No stock options were granted to NEOs in 2020. Stock option information can be found in the Outstanding Equity Awards at Fiscal Year End 2020 table. zz Performance Cash. For performance cycles beginning prior to 2019, in the event of a change-in-control during a performance cycle, the NEO will be entitled to an immediate cash payment equal to the maximum amount he or she would have been entitled to receive for the performance cycle, prorated through the date of the change-in-control. Beginning with the 2019 performance cycle, a NEO experiencing a Qualifying Termination will be entitled to payment equal to the target amount of the award he or she would have been entitled to receive, without proration. zz Performance Shares. As described in Compensation Discussion and Analysis, beginning with the 2020 performance cycle, 50% of a NEO’s opportunity was granted in shares. For the 2020 performance cycle, a NEO experiencing a Qualifying Termination will be entitled to share vesting equal to the target amount of the award he or she would have been entitled to receive, without proration. 54 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comExecutive Compensation Tables Equity Compensation Plan Information The following table provides certain information, as of December 31, 2020, with respect to our equity compensation plans. Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) 25,930,679 — 25,930,679 $ $ 40.36 — 40.36 33,806,364 — 33,806,364 Plan Category Equity compensation plans approved by security holders Equity compensation plans not approved by security holders TOTAL CEO Pay Ratio For 2020, the annual total compensation of our CEO was 293 times the median of the annual total compensation of all employees, based on annual total compensation of $22,336,238 for the CEO and $76,266 for the median employee. In the Supplemental Summary Compensation Table Information for CEO, we describe two key factors impacting our CEO’s compensation in 2020. If the amount of $17,322,992 presented in that table was used, our CEO would have earned 227 times the median of the annual total compensation of all employees. What follows is a description of the methodology used for 2020. This disclosure is based on an October 1, 2020, employee population of 40,853, of which 11,226 were U.S. employees and 29,627 were non-U.S. employees. We excluded from this employee population 2,020 non-U.S. employees from 47 countries as the total number of employees from these non-U.S. jurisdictions was less than 5% of our total employee population. After applying the exclusion, the total employee population was 38,833. Country Ecuador Kazakhstan Congo Italy Bolivia Trinidad and Tobago Romania Netherlands Pakistan Panama Ghana Cameroon Headcount Country Headcount Country Headcount Country Headcount Non-U.S. Employee Country Exclusions 335 217 134 131 129 106 94 81 76 69 63 58 Vietnam New Zealand Germany Denmark Guyana Ukraine Papua New Guinea Bangladesh Chile Poland France Japan 58 57 56 50 40 38 26 24 24 24 22 15 Spain Mozambique Côte d'Ivoire Philippines Austria Turkmenistan Myanmar Cyprus Hungary Yemen Albania Bulgaria Equatorial Guinea Kenya South Korea Peru Suriname Switzerland Turkey Belgium Israel South Africa Uganda 14 10 9 9 8 7 5 3 3 3 2 2 2 2 2 2 2 2 2 1 1 1 1 The median employee was identified using base pay, overtime pay, bonuses, allowances, and premiums. We used the total gross wages of all employees as of our determination date of October 1, 2020, as a reasonable estimate of the median total gross wages for the employee population and identified all employees within 1% of the median total gross wages. From this group we selected an employee as a reasonable representative of our median employee. Annual total compensation for both the CEO and the median employee was calculated in accordance with Item 402(c)(2)(x) of Regulation S-K. The annual total compensation for our CEO includes both the amount reported in the “Total” column of our 2020 Summary Compensation Table, $22,319,385, and the estimated value of our CEO’s health and welfare benefits, $16,853. Due to the flexibility afforded in calculating the CEO pay ratio, the ratio may not be comparable to CEO pay ratios presented by other companies. 55 HALLIBURTON ❘ 2021 Proxy StatementProposal No. 4 Proposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Introduction The Halliburton Company Stock and Incentive Plan was last approved by shareholders at the 2020 annual meeting and reserved 29,790,261 shares for issuance thereunder. The proposed amendment and restatement of the Stock and Incentive Plan replenishes the pool of shares of Halliburton common stock available for issuance under the Stock and Incentive Plan by adding 16,825,000 shares. The Stock and Incentive Plan is the only active plan used to grant awards of the types described in this proposal. Our Board is requesting that shareholders approve the amendment and restatement of the Stock and Incentive Plan which amendment and restatement was adopted by the Board on February 17, 2021, subject to shareholder approval. General In order to give Halliburton the flexibility to responsibly address its future equity compensation needs, Halliburton is requesting that shareholders approve the amendment and restatement which adds 16,825,000 shares to the Stock and Incentive Plan (Plan). zz The ability to automatically receive replacement stock options when a stock option is exercised with previously acquired shares of Halliburton common stock, or so-called “stock option reloading”, is not permitted; The Plan contains the following important features: zz All awards under the Plan are subject to a one-year minimum vesting period, with the exception of 5% of shares available for awards; zz The Plan contains a prohibition against “liberal share counting” or “liberal share recycling” with respect to shares available for awards under the Plan; zz The Plan provides that all shares available for award are available for awards of incentive stock options; zz Repricing of stock options and stock appreciation rights is prohibited unless prior shareholder approval is obtained; zz Stock options and stock appreciation rights must be granted with an exercise price that is not less than 100% of the fair market value on the date of grant; zz In any single calendar year, the value of awards granted under the Plan when added to any cash or other compensation paid to a non-management Director outside of the Plan may not exceed $750,000; and zz Awards are subject to a “double-trigger” change-of-control provision. The 16,825,000 shares to be added under the Plan pursuant to the amendment and restatement of the Plan, in combination with the remaining authorized shares and shares added back into the Plan from forfeitures, are expected to satisfy Halliburton’s equity compensation needs through the 2023 annual meeting of shareholders. This being the case, if the amendment and restatement is approved, Halliburton anticipates seeking the authorization of additional shares under the Plan in 2023. Share Reserve (adjusted for 1997 and 2006 stock splits where applicable) Shares authorized under the Stock and Incentive Plan Shares granted (less available cancellations and shares expired) from 1993 through March 1, 2021, from the Plan(1) Remaining shares available for grant as of March 1, 2021 Additional shares being requested under the amendment and restatement of the Plan Total shares available for grant under the amended and restated Stock and Incentive Plan 247,199,680 227,786,161 19,413,519 16,825,000 36,238,519 (1) As of March 1, 2021, Halliburton had total outstanding awards of 25,700,436 options with a weighted average exercise price of $40.37 and a weighted average life of 5.29 years, and 20,563,869 full value awards. 56 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProposal to Amend and Restate the Halliburton Company Stock and Incentive Plan If the amendment and restatement of the Plan is approved by shareholders, the aggregate number of shares of Halliburton common stock that will be available for issuance under the Plan would increase to 36,238,519 shares, based on the estimates set forth above, all of which shall be available for awards of incentive stock options. Each share issued as restricted stock (or pursuant to the vesting of a stock unit or a performance share award) will count as the issuance of 1.60 shares reserved under the Plan, while each share granted as a stock option or stock appreciation right will count as the issuance of 1.0 share reserved under the Plan. If awards granted under the Plan are forfeited or terminate before being exercised, then the shares underlying those awards will again become available for awards under the Plan. The Plan does not provide for “liberal share counting” or “liberal share recycling”. Liberal share counting or liberal share recycling refers to circumstances where shares granted and exercised may be added back to an incentive plan for future issuance, including the following situations: zz Shares tendered or withheld in payment of an exercise price; zz Shares tendered or withheld to satisfy tax withholding obligations; zz Shares reacquired by an issuer with the proceeds of an option exercise price; and zz Shares that are not issued due to a net settlement of an award. In each of the situations above, such shares are no longer available for awards under the Plan. For example, shares withheld from an award to satisfy tax withholding obligations are no longer available for awards under the Plan, and a stock appreciation right or option will be counted in full against the number of shares available for issuance under the Plan, regardless of whether a net settlement occurs resulting in a fewer number of shares issued than are covered by the stock appreciation right or option. The number of stock option shares or stock appreciation rights, singly or in combination, together with shares or share equivalents under performance awards granted to any individual who is an employee in any one calendar year, shall not in the aggregate exceed 1,000,000. The cash value determined as of the date of grant of any performance award not denominated in common stock granted to any individual who is an employee for any one calendar year shall not exceed $30,000,000. The amendment and restatement of the Plan provides that the value of awards (based on fair market value determined as of the date of grant) granted to a non-management Director in any single calendar year, when added to any cash or other compensation payable to such Director in the same calendar year, shall not exceed $750,000. In the event of any recapitalization, reorganization, merger, consolidation, combination, exchange, stock dividend, stock split, extraordinary dividend or divestiture (including a spin-off), or any other change in the corporate structure or shares of common stock occurring after the date of the grant of an award, the Compensation Committee shall make appropriate adjustments to the number and price of shares of common stock or other consideration subject to such awards and the award limits set forth in the preceding paragraph. The Stock and Incentive Plan Types of Awards Term The Plan provides for the grant of any or all of the following types of awards: zz stock options, including incentive stock options and nonqualified stock options; zz stock appreciation rights, either independent of, or in connection with, stock options; zz restricted stock; zz restricted stock units; zz performance awards; and zz stock value equivalent awards. The Plan has an indefinite term. Any stock option granted in the form of an incentive stock option must satisfy the requirements of Section 422 of the Internal Revenue Code (IRC). Awards may be made to the same person on more than one occasion and may be granted singly, in combination, or in tandem as determined by the Compensation Committee. To date, only awards of nonqualified stock options, restricted stock, restricted stock units, and performance awards have been made under the Plan. 57 HALLIBURTON ❘ 2021 Proxy StatementProposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Administration The Board has appointed the Compensation Committee to administer the Plan. Subject to the terms of the Plan, and to any approvals and other authority as the Board may reserve to itself from time to time, the Compensation Committee, consistent with the terms of the Plan, will have authority to: zz select the individuals to receive awards and determine the timing, form, amount or value, and term of grants and awards, including providing for terms regarding the accelerated vesting of an award otherwise subject to minimum vesting provisions, and the conditions and restrictions, if any, subject to which grants and awards will be made and become payable under the Plan; zz construe the Plan and prescribe rules and regulations for the administration of the Plan; and zz make any other determinations authorized under the Plan as the Compensation Committee deems necessary or appropriate. Eligibility A broad group of our employees and employees of our affiliates are eligible to participate in the Plan. The selection of participants from eligible employees is within the discretion of the Compensation Committee. Non-management Directors are eligible to participate in the Plan. As of January 1, 2021, approximately 12,000 employees (including employees and executive officers) and nine non-management Directors were eligible for awards under the Plan as determined by the Compensation Committee. Stock Options Under the Plan, the Compensation Committee may grant awards in the form of stock options to purchase shares of common stock. The Compensation Committee will determine the number of shares subject to an option, the manner and time of the option’s exercise, and the exercise price per share of stock subject to the option. Options may not become exercisable in less than one year from the date of grant, provided that up to 5% of the shares available for grant under the Plan may be awarded without regard to the minimum one-year vesting period. The term of an option may not exceed ten years. We do not receive any consideration for granting stock options. The exercise price of a stock option will not be less than the fair market value of the common stock on the date the option is granted. Repricing of stock options and reloading of stock options are prohibited unless prior shareholder approval is obtained. The Compensation Committee will designate each option as a nonqualified or an incentive stock option. The option exercise price may, at the discretion of the Compensation Committee, be paid by a participant in cash, shares of common stock, or a combination of cash and common stock. Stock Appreciation Rights The Plan also authorizes the Compensation Committee to grant stock appreciation rights either independent of, or in connection with, a stock option. The exercise price of a stock appreciation right will not be less than the fair market value of the common stock on the date the stock appreciation right is granted. If granted with a stock option, exercise of stock appreciation rights will result in the surrender of the right to purchase the shares under the option as to which the stock appreciation rights were exercised. Upon exercising a stock appreciation right, the holder receives for each share for which the stock appreciation right is exercised, an amount equal to the difference between the exercise price and the fair market value of the common stock on the date of exercise. Restricted Stock Payment of that amount may be made in shares of common stock, cash, or a combination of cash and common stock, as determined by the Compensation Committee. Stock appreciation rights may not become exercisable in less than one year from the date of grant, provided that up to 5% of the shares available for grant under the Plan may be awarded without regard to the minimum one-year vesting period. The term of a stock appreciation right grant may not exceed ten years. Repricing of stock appreciation rights and reloading of stock appreciation rights are prohibited unless prior shareholder approval is obtained. We do not receive any consideration for granting stock appreciation rights. The Plan provides that shares of common stock subject to specific restrictions may be awarded to eligible individuals as determined by the Compensation Committee. The Compensation Committee will determine the nature and extent of the restrictions on the shares, the duration of the restrictions, and any circumstance under which restricted shares will be forfeited. The restriction period may not be less than one year from the date of grant, provided that up to 5% of the shares available for grant under the Plan may be awarded without regard to the minimum one-year vesting period. During the period of restriction, recipients will have the right to receive dividends and the right to vote the shares. 58 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Restricted Stock Units The Plan authorizes the Compensation Committee to grant restricted stock units. A restricted stock unit is a unit evidencing the right to receive one share of common stock or an equivalent cash value equal to the fair market value of a share of common stock. The Compensation Committee will determine the nature and extent of the restrictions on the restricted stock units, the duration of the restrictions, and any circumstance under which restricted stock units will be forfeited. The restriction period may Performance Awards The Plan permits the Compensation Committee to grant performance awards to eligible individuals. Performance awards are awards that are contingent, in whole or in part, on the achievement of one or more performance measures. Performance awards may be settled in cash or stock, as determined by the Compensation Committee. The number of shares or share equivalents under performance awards, singly or in combination, together with the number of stock option shares or stock appreciation rights, granted to any individual in any one calendar year, shall not in the aggregate exceed 1,000,000. The cash value (determined as of the date of grant) of any performance award that is not denominated in stock granted to any one participant in a calendar year may not exceed $30,000,000. The vesting period of a performance award may not be less than one year from the date of grant, provided that up to 5% of the shares available for grant under the Stock and Incentive Plan may be awarded without regard to the minimum one-year vesting period. The performance criteria that may be used by the Compensation Committee in granting performance awards consist of objective tests based on the following: zz earnings zz cash flow zz customer satisfaction zz revenues zz financial return ratios zz profit return and margins Stock Value Equivalent Awards The Plan permits the Compensation Committee to grant stock value equivalent awards to eligible individuals. Stock value equivalent awards are rights to receive the fair market value of a specified number of shares of common stock, or the appreciation in the fair market value of the shares, over a specified period of time, pursuant to a vesting schedule, all as determined by the Compensation Committee. Stock value equivalent awards may not vest earlier than one year from the date of grant, provided that up to 5% of the shares available for grant under the Plan not be less than one year from the date of grant, provided that up to 5% of the shares available for grant under the Plan may be awarded without regard to the minimum one-year vesting period. The Compensation Committee may provide for the payment of dividend equivalents during the period of restriction, but recipients will not have the right to receive actual dividends or to vote the shares underlying the restricted stock units. zz market share zz working capital zz net operating profit after-taxes zz asset turns zz cash value added performance zz return on capital zz shareholder return and/or value zz operating profits (including EBITDA) zz net profits zz earnings per share zz stock price zz cost reduction goals zz debt to capital ratio zz any other criteria as determined by the Compensation Committee The Compensation Committee may select one criterion or multiple criteria for measuring performance. The measurement may be based on our overall corporate performance, subsidiary or business unit performance, or comparative performance with other companies or other external measures of selected performance criteria. The Compensation Committee will also determine the length of time over which performance will be measured and the effect of a recipient’s death, disability, retirement, or other termination of service during the performance period. may be awarded without regard to the minimum one-year vesting period. Payment of the vested portion of a stock value equivalent award shall be made in cash, based on the fair market value of the common stock on the payment date. The Compensation Committee will also determine the effect of a recipient’s death, disability, retirement, or other termination of service during the applicable period. 59 HALLIBURTON ❘ 2021 Proxy StatementProposal to Amend and Restate the Halliburton Company Stock and Incentive Plan Amendment The Plan provides that the Board may at any time terminate or amend the Plan. However, the Board may not, without approval of the shareholders, amend the Plan to effect a “material revision” of the Plan, where a “material revision” includes, but is not limited to, a revision that: zz materially increases the benefits accruing to a Holder under the Plan; zz materially increases the aggregate number of securities that may be issued under the Plan; zz materially modifies the requirements as to eligibility for participation in the Plan; or Change-in-Control zz changes the types of awards available under the Plan. No amendment or termination of the Plan shall, without the consent of the optionee or participant, alter or impair rights under any options or other awards previously granted. The summary of the Plan provided above is a summary of the principal features of the Plan. This summary, however, does not purport to be a complete description of all of the provisions of the Plan. It is qualified in its entirety by references to the full text of the Plan. A copy of the Plan can be found in Appendix A to this proxy statement. Awards granted on or after February 13, 2019, are subject to double-trigger vesting, such that, if a participant is terminated due to involuntary termination without cause, death, disability, good reason (as defined in an employment agreement, or a similar constructive termination event, in each case, only if a severance benefit is payable upon termination of employment due to such event pursuant to an employment agreement), or other event as specified in the participant’s award document within the period beginning on the date of the public announcement of a transaction that, if consummated, would constitute a corporate change and ending on the date that is the earlier of the announcement of the termination of the proposed transaction or two years after the consummation of the transaction, the following will occur automatically: zz any outstanding options and stock appreciation rights shall become immediately vested and fully exercisable for the full term thereof; zz any restrictions on restricted stock awards or restricted stock unit awards shall immediately lapse; zz all performance measures upon which an outstanding performance award is contingent shall be deemed achieved and the holder shall receive a payment equal to the target amount of the award he or she would have been entitled to receive; and zz any outstanding cash awards, including stock value equivalent awards, shall immediately vest and be paid based on the vested value of the award. Plan Benefits All awards to directors, executive officers, and employees are made at the discretion of the Compensation Committee. Therefore, the benefits and amounts that will be received or allocated under the Plan, as amended and restated, are not determinable at this time. Federal Income Tax Treatment The following summarizes the current U.S. federal income tax consequences generally arising for awards under the Plan. A participant who is granted an incentive stock option does not realize any taxable income at the time of the grant or at the time of exercise, but in some circumstances may be subject to an alternative minimum tax as a result of the exercise. Similarly, we are not entitled to any deduction at the time of grant or at the time of exercise. If the participant makes no disposition of the shares acquired pursuant to an incentive stock option before the later of two years from the date of grant and one year from the date of exercise, any gain or loss realized on a subsequent disposition of the shares will be treated as a long-term capital gain or loss. Under these circumstances, we will not be entitled to any deduction for federal income tax purposes. If the participant fails to hold the shares for that period, the disposal is treated as a disqualifying disposition. The gain on the disposition is ordinary income to the participant to the extent of the difference between the option price and the fair market value on the exercise date. Any excess is long-term or short-term capital gain, depending on the holding period. Under these circumstances, we will be entitled to a tax deduction equal to the ordinary income amount the participant recognizes in a disqualifying disposition. A participant who is granted a nonqualified stock option does not have taxable income at the time of grant, but does have taxable income at the time of exercise. The income equals the difference between the exercise price of the shares and the market value of the shares on the date of exercise. We are entitled to a corresponding tax deduction for the same amount. The grant of a stock appreciation right will produce no U.S. federal tax consequences for the participant or us. The exercise of a stock appreciation right results in taxable income to the participant, equal to the difference between the exercise price of the shares and the market price of the shares on the date of exercise, and a corresponding tax deduction to us. 60 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProposal to Amend and Restate the Halliburton Company Stock and Incentive Plan A participant who has been granted an award of restricted shares of common stock or an award of restricted stock units will not realize taxable income at the time of the grant. When the restrictions lapse, the participant will recognize taxable income in an amount equal to the excess of the fair market value of the shares or cash received at that time over the amount, if any, paid for the shares. We will be entitled to a corresponding tax deduction. Dividends on restricted stock and dividend equivalents, if any, on restricted stock units paid to the participant during the restriction period will also be compensation income to the participant and will be deductible as compensation expense by us. A participant who has been granted a performance award will not realize taxable income at the time of the grant, and we will not be entitled to a tax deduction at that time. A participant will realize ordinary income at the time the award is paid equal to the amount of cash paid or the value of shares delivered, and we will be entitled to a corresponding tax deduction. The grant of a stock value equivalent award produces no U.S. federal income tax consequences for the participant or us. The payment of a stock value equivalent award results in taxable income to the participant equal to the amount of the payment received, valued with reference to the fair market value of the common stock on the payment date. We are entitled to a corresponding tax deduction for the same amount. In order for Halliburton to deduct the amounts described above, such amounts must constitute reasonable compensation for services rendered or to be rendered and must be ordinary and necessary business expenses. The ability to obtain a deduction for awards under the Plan could also be limited by IRC Section 280G, which provides that certain excess parachute payments made General/Vote Required The closing price of our common stock on March 22, 2021, as traded on the NYSE, was $21.54 per share. The affirmative vote of the holders of a majority of the shares of Halliburton’s common stock represented at the Annual Meeting and entitled to vote on the matter is needed to approve the proposal. in connection with a change in control of an employer are not deductible. The ability to obtain a deduction for amounts paid under the Plan could also be affected by IRC Section 162(m), which limits the deductibility, for U.S. federal income tax purposes, of compensation paid to certain employees to $1 million during any taxable year. As a result, we may from time to time in the future, make award payments under the Plan to executive officers that are not deductible. We may withhold any taxes required by law to be withheld in connection with any award. IRC Section 409A generally provides that any deferred compensation arrangement which does not meet specific requirements regarding (i) timing of payouts, (ii) advance election of deferrals, or (iii) restrictions on acceleration of payouts will result in immediate taxation of any amounts deferred to the extent not subject to a substantial risk of forfeiture. Failure to comply with Section 409A may result in the early taxation (plus interest) to the holder of deferred compensation and the imposition of a 20% penalty on the holder on such deferred amounts included in the holder’s income. In general, to avoid a Section 409A violation, amounts deferred may only be paid out on separation from service, disability, death, a change-in-control, an unforeseen emergency (other than death), each as defined under Section 409A, or at a specified time. Furthermore, the election to defer generally must be made in the calendar year prior to performance of services, and any provision for accelerated payout, other than for the reasons specified above, may cause the amounts deferred to be subject to early taxation and to the imposition of the excise tax. Based on current guidance, we expect that we will be able to structure future awards in a manner that complies with Section 409A. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF THE PROPOSED AMENDMENT AND RESTATEMENT OF THE HALLIBURTON COMPANY STOCK AND INCENTIVE PLAN. 61 HALLIBURTON ❘ 2021 Proxy StatementProposal No. 5 Proposal to Amend and Restate the Halliburton Company Employee Stock Purchase Plan Introduction In 2002, the Board of Directors adopted and the shareholders approved the Halliburton Company 2002 Employee Stock Purchase Plan (2002 ESPP), effective July 1, 2002, and reserved 24,000,000 shares (adjusted for 2-1 stock split in July  2006) for issuance under the 2002 ESPP. The 2002 Non-Qualified Stock Purchase Plan, a sub-plan of the 2002 ESPP (Sub-Plan), was established to facilitate the offering of stock ownership interests to employees residing outside the United States. In 2009, the 2002 ESPP was renamed the Halliburton Company Employee Stock Purchase Plan (ESPP), the Sub-Plan was renamed the Halliburton Company Non-Qualified Stock Purchase Plan (NQSPP) and an additional 20,000,000 shares were approved by shareholders for issuance under the plans. In 2015, the ESPP was amended and restated, and shareholders approved, an additional 30,000,000 shares for issuance under the plans. This amendment and restatement replenishes the pool of shares of Halliburton common stock available for purchase under the ESPP by adding 30,000,000 shares. This amended and restated ESPP is subject to shareholder approval. Our Board is requesting that shareholders approve the amendment and restatement of the ESPP and the reservation of shares for issuance under the ESPP, which amendment and restatement was approved by the Board of Directors on February 17, 2021. Shareholder approval will qualify the shares for special tax treatment under IRC Section 423. Summary of the ESPP Purpose. The purpose of the ESPP is to provide employees of Halliburton and its designated subsidiaries with the opportunity to purchase Halliburton common stock and, therefore, to have an additional incentive to contribute to the prosperity of Halliburton. Administration. The ESPP will be administered by the Compensation Committee of Directors. None of the members of the Compensation Committee is an officer or employee, or former officer or employee, of Halliburton or its subsidiaries. Subject to the terms of the ESPP, the Compensation Committee has the power to make, amend, and repeal rules and regulations for the interpretation and administration of the ESPP. The decisions of the Compensation Committee are final and binding upon all parties. Shares Subject to the ESPP. As amended and restated, there will be a total of 104,000,000 shares reserved for issuance under the ESPP, subject to adjustment as described below. The reserved shares will also be used to fund stock purchases under the NQSPP, and any shares issued under the NQSPP will reduce, on a share-for-share basis, the number of shares available for subsequent issuance under the ESPP. Eligibility. In general, any employee of Halliburton or a designated subsidiary is eligible to participate in the ESPP during a purchase period unless the employee is employed in a country whose laws or regulations effectively prohibit participation in the plan. A “purchase period” is a period of approximately three months that begins on the first trading day of each January, April, July, and October. An “enrollment date” is the first day of each purchase period. Eligible employees become participants in the ESPP by filing with Halliburton a payroll deduction authorization form within the time prescribed by the Compensation Committee prior to an enrollment date. As of January 31, 2021, 65,954,939 shares of common stock had been issued under the ESPP and the NQSPP, and 38,045,061 shares would be available for future issuance, assuming approval of the 30,000,000 share increase, which forms part of this proposal. As of January 31, 2021, approximately 36,000 employees, including 11 executive officers, would have been eligible to participate in the ESPP. Plan Participation. Each participant is granted a right to purchase shares of Halliburton common stock on his or her enrollment date. A participant in the ESPP may make contributions through payroll deductions of up to ten percent of his or her eligible compensation each pay period, but not less than $10 for any pay period. Stock purchase rights may not accrue at a rate that exceeds $25,000 in fair market value of the common stock (determined at the time such stock purchase rights are granted) per calendar year. The participant’s contributions are used to purchase shares of Halliburton’s common stock at the end of each purchase period. The right to purchase Halliburton shares is exercised automatically 62 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comProposal to Amend and Restate the Halliburton Company Employee Stock Purchase Plan on the last trading day of each purchase period (purchase date) to the extent of the payroll deductions accumulated during the purchase period, provided that the number of shares that may be purchased by a participant in any purchase period is limited to 10,000 shares. No participant shall be granted a stock purchase right under the ESPP to the extent that, immediately after the grant, such participant (or any other person whose stock would be attributed to such participant) would own capital stock of Halliburton and/or hold outstanding options to purchase such stock possessing 5% or more of the total combined voting power or value of all classes of the capital stock of Halliburton or any of its subsidiaries. Purchase Price; Shares Purchased. The purchase price per share is equal to 90% of the fair market value of the common stock on the enrollment date or the purchase date, whichever is less. The number of whole and fractional shares of Halliburton common stock a participant purchases in each purchase period is determined by dividing the total amount of payroll deductions during the purchase period by the purchase price. Termination of Employment. Termination of a participant’s employment for any reason, including death, immediately cancels his or her participation in the ESPP. In that event, the payroll deductions credited to the participant’s account will be refunded to him or her, and in the case of death, to his or her estate or personal representative. Changes in Common Stock; Adjustments. In the event that Halliburton’s common stock is changed by reason of any stock split, stock dividend, recapitalization, combination, or other similar change in Halliburton’s capital structure, appropriate action will be taken by the Compensation Committee to adjust any or all of (i) the number and type of shares subject to the ESPP, (ii) the number and type of shares subject to outstanding stock purchase rights, and (iii) the purchase price. In the event of a Corporate Change (as defined in the ESPP), unless the successor corporation assumes or substitutes new stock purchase rights: zz the purchase date for the outstanding stock purchase rights will be accelerated to a date fixed by the Compensation Committee prior to the effective date of the Corporate Change; and zz on the effective date, any unexercised stock purchase rights will expire and Halliburton will promptly refund the unused amount of each participant’s payroll deductions. Amendment and Termination of the Plan. The Board may terminate the ESPP at any time with respect to common stock that is not subject to stock purchase rights. The Board may amend the ESPP at any time, provided that no change may be made in any outstanding stock purchase right that would materially impair that right without the consent of the participant. If not sooner terminated, the ESPP will automatically terminate when all of the shares of common stock reserved for issuance have been sold. Withdrawal. Generally, a participant may withdraw from the ESPP during a purchase period at any time prior to the fifth business day before a purchase date. The summary of the ESPP provided above is a summary of the principal features of the plan. This summary, however, does not purport to be a complete description of all of the provisions of the ESPP. It is qualified in its entirety by references to the full text of the ESPP. A copy of the ESPP can be found in Appendix B to this proxy statement, and any shareholder who wishes to obtain a copy of the ESPP may do so by written request to the Corporate Secretary at the address set forth on page 66 of this proxy statement. U.S. Federal Income Tax Treatment The following summarizes the effect of current U.S. federal income tax upon the participant and Halliburton with respect to shares purchased under the ESPP. It does not purport to be complete, and does not discuss the tax consequences arising in the context of a participant’s death or the income tax laws of any municipality, state, or foreign country in which the participant’s income or gain may be taxable. If the Halliburton shareholders approve this proposal, the ESPP, and the right of participants to make purchases thereunder, should qualify under the provisions of Sections 421 and 423 of the IRC. Under these provisions, no income will be taxable to a participant until the shares purchased under the ESPP are sold or otherwise disposed of. Upon sale or other disposition of the shares, the participant will generally be subject to tax and the amount of the tax will depend on the holding period. If the shares are sold or disposed of more than two years from the first day of the applicable purchase period and more than one year from the date of transfer of the shares to the participant, then the participant generally will recognize ordinary income measured as the lesser of: zz the excess of the fair market value of the shares at the time of sale over the purchase price, or zz 10% of the fair market value of the shares as of the enrollment date. Any additional gain should be treated as long-term capital gain. If the shares are disposed of within the two-year and one-year periods referred to above, the participant will recognize ordinary income generally measured as the difference between the fair market value of the shares on the purchase date over the purchase price. Any additional gain or loss on the sale will be long-term or short-term capital gain or loss, depending on the holding period. Halliburton is not entitled to a deduction for amounts taxed as ordinary income or capital gain to a participant except to the extent ordinary income is recognized by participants upon a disposition of shares prior to the expiration of the holding period. 63 HALLIBURTON ❘ 2021 Proxy StatementProposal to Amend and Restate the Halliburton Company Employee Stock Purchase Plan Non-U.S. Federal Income Tax Treatment The income taxation consequences to participants and Halliburton (or its foreign subsidiaries) with respect to participation in the NQSPP vary by country. Generally, participants are subject to taxation at the time of purchase. The employing foreign subsidiary may be entitled to a deduction in the tax year in which a participant recognizes taxable income, provided the subsidiary reimburses Halliburton for the cost of the benefit conferred under the NQSPP. Plan Benefits The benefits to be received by Halliburton’s executive officers and employees as a result of the proposed amendment and restatement of the ESPP are not determinable, since the amounts of future purchases by participants are based on elective participant contributions. Non-employee Directors are not eligible to participate. No purchase rights have been granted, and no shares of common stock have been issued, with respect to the 30,000,000 share increase for which shareholder approval is sought under this proposal. General/Vote Required The closing price of our common stock on March 22, 2021, as traded on the NYSE, was $21.54 per share. The affirmative vote of the holders of a majority of the shares of Halliburton’s common stock represented at the Annual Meeting and entitled to vote on the matter is needed to approve the proposal. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF THE PROPOSED AMENDMENT AND RESTATEMENT OF THE HALLIBURTON COMPANY EMPLOYEE STOCK PURCHASE PLAN. 64 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comGeneral Information We are providing these proxy materials to you in connection with the solicitation by the Board of Directors of Halliburton Company of proxies to be voted at our 2021 Annual Meeting of Shareholders and at any adjournment or postponement of the meeting. By executing and returning the enclosed proxy, by following the enclosed voting instructions, or by voting via the Internet or by telephone, you authorize the persons named in the proxy to represent you and vote your shares on the matters described in the Notice of Annual Meeting. The Notice of Internet Availability of Proxy Materials is being sent to shareholders on or about April 6, 2021. Our Annual Report on Form 10-K, including financial statements, for the fiscal year ended December 31, 2020, accompanies this proxy statement. The Annual Report on Form 10-K shall not be considered as a part of the proxy solicitation materials or as having been incorporated by reference. Subject to space availability, all shareholders as of the record date, or their duly appointed proxies, may attend the Annual Meeting and each may be accompanied by one guest. Admission to the Annual Meeting will be on a first-come, first-served basis. Registration will begin at 8:00 a.m. and the Annual Meeting will begin at 9:00 a.m. Please note that we will ask you to present valid picture identification, such as a driver’s license or passport, when you check in at the registration desk. If you hold your shares in “street name” (that is, through a broker or other nominee), you must bring a proxy issued in your name from the record holder to the meeting. You may not bring cameras, recording equipment, electronic devices, large bags, briefcases, or packages into the Annual Meeting. If you attend the Annual Meeting, you may vote in person. If you are not present, you can only vote your shares if you have voted via the Internet, by telephone, or returned a properly executed proxy; in these cases, your shares will be voted as you specified. If you return a properly executed proxy and do not specify a vote, your shares will be voted in accordance with the recommendations of the Board. You may revoke the authorization given in your proxy at any time before the shares are voted at the Annual Meeting. We intend to hold our Annual Meeting in person this year. However, continuing public health concerns of our shareholders regarding the coronavirus (COVID-19) pandemic and the protocols that federal, state, and local governments may recommend or impose may necessitate conducting the meeting by means of remote communication. In the event it is not possible or advisable to hold our Annual Meeting in person, we will announce alternative arrangements for the meeting at least one week before our meeting, which may include holding the meeting solely by means of remote communication. We may also need to change the date or the time of the meeting. Please monitor our website at www.halliburton.com for updated information. If you are planning to attend our meeting, please check the website one week prior to the meeting date. As always, we encourage you to vote your shares prior to the Annual Meeting. It is important that you retain a copy of the control number found on the proxy card, voting instruction form, or Notice of Internet Availability of Proxy Materials, as such number will be required in order for shareholders to gain access to any meeting held solely by means of remote communication. The record date for determination of the shareholders entitled to vote at the Annual Meeting is the close of business on March 22, 2021. Our common stock, par value $2.50 per share, is our only class of capital stock that is outstanding. As of March 22, 2021, there were 888,607,729 shares of our stock outstanding. Each outstanding share of common stock is entitled to one vote on each matter submitted to the shareholders for a vote at the Annual Meeting. We will keep a complete list of shareholders entitled to vote at our principal executive offices for ten days before the meeting and will have the list available at the Annual Meeting. Our principal executive offices are located at 3000 N. Sam Houston Parkway East, Administration Building, Houston, Texas 77032. Votes cast by proxy or in person at the Annual Meeting will be counted by the persons we appoint to act as election inspectors for the Annual Meeting. Except as set forth below, the affirmative vote of the majority of shares present in person or represented by proxy at the Annual Meeting and entitled to vote on the subject matter will be the act of the shareholders. Shares for which a shareholder has elected to abstain on a matter will count for purposes of determining the presence of a quorum and, except as set forth below, will have the effect of a vote against the matter. Each Director shall be elected by the vote of the majority of the votes cast by holders of shares represented in person or by proxy and entitled to vote in the election of Directors, provided that if the number of nominees exceeds the number of Directors to be elected and all shareholder-proposed nominees have not been withdrawn before the tenth (10th) day preceding the day we mail the Notice of Internet Availability of Proxy Materials to shareholders for the Annual Meeting, the Directors shall be elected by the vote of a plurality of the shares represented in person or by proxy at the Annual Meeting and entitled to vote on the election of Directors. A majority of the votes cast means that the number of shares voted “for” a Director must exceed the number of votes cast “against” that Director; we will not count abstentions. As a condition of being nominated by the Board for continued service as a Director, each Director nominee has signed and delivered to the Board an irrevocable letter of resignation limited to and conditioned on that Director failing to achieve a majority of the votes cast at an election where Directors are elected by majority vote. For any Director nominee who fails to be elected by a majority of votes cast, where Directors are elected by majority vote, his or her irrevocable letter of resignation will be deemed tendered on the date the election results are certified. Such resignation shall only be effective upon acceptance by the Board. The election inspectors will treat broker non-vote shares, which are shares held in street name that cannot be voted by a broker on specific matters in the absence of instructions from the beneficial owner of the shares, as shares that are present and entitled to vote for purposes of determining the presence of a quorum. In determining the outcome of any matter for which the broker does not have discretionary authority to vote, however, those shares will not have any effect on that matter. A broker may be entitled to vote those shares on other matters. In accordance with our confidential voting policy, no particular shareholder’s vote will be disclosed to our Directors, officers, or employees, except: zz as necessary to meet legal requirements and to assert claims for and defend claims against us; zz when disclosure is voluntarily made or requested by the shareholder; zz when the shareholder writes comments on the proxy card; or zz in the event of a proxy solicitation not approved and recommended by the Board. The proxy solicitor, the election inspectors, and the tabulators of all proxies, ballots, and voting tabulations are independent and are not our employees. 65 HALLIBURTON ❘ 2021 Proxy StatementAdditional Information Involvement in Certain Legal Proceedings There are no legal proceedings to which any of our Directors, executive officers, or any associate of any of our Directors or executive officers is a party adverse to us or has a material interest adverse to us. Advance Notice Procedures Under our By-laws, no business, including nominations of a person for election as a Director, may be brought before an Annual Meeting unless it is specified in the notice of the Annual Meeting or is otherwise brought before the Annual Meeting by or at the direction of the Board or by a shareholder who meets the requirements specified in our By-laws and has delivered notice to us (containing the information specified in the By-laws). To be timely, a shareholder’s notice for matters to be brought before the Annual Meeting of Shareholders in 2022 must be delivered to or mailed and received by our Corporate Secretary at 3000 N. Sam Houston Parkway East, Administration Building, Houston, Texas 77032, not less than 90 days nor more than 120 days prior to the anniversary date of the 2021 Annual Meeting of Shareholders, or no later than February 18, 2022, and no earlier than January 19, 2022. These requirements are separate from and in addition to the SEC’s requirements that a shareholder must meet in order to have a shareholder proposal included in our proxy statement. This advance notice requirement does not preclude discussion by any shareholder of any business properly brought before the Annual Meeting in accordance with these procedures. Proxy Solicitation Costs We are soliciting the proxies accompanying this proxy statement and we will bear the cost of soliciting those proxies. We have retained Innisfree M&A Incorporated to aid in the solicitation of proxies. For these services, we will pay Innisfree a fee of $17,500 and reimburse it for out-of-pocket disbursements and expenses. Our officers and employees may solicit proxies personally and by telephone or other electronic communications with some shareholders if proxies are not received promptly. We will, upon request, reimburse banks, brokers, and others for their reasonable expenses in forwarding proxies and proxy materials to beneficial owners of our stock. Shareholder Proposals for the 2022 Annual Meeting Shareholders interested in submitting a proposal for inclusion in the proxy materials for the Annual Meeting of Shareholders in 2022 may do so by following the procedures prescribed in SEC Rule 14a-8. To be eligible for inclusion, shareholder proposals must be received by our Corporate Secretary at 3000 N. Sam Houston Parkway East, Administration Building, Houston, Texas 77032, no later than December 7, 2021. The 2022 Annual Meeting will be held on May 18, 2022. 66 66 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comOther Matters As of the date of this proxy statement, we know of no business that will be presented for consideration at the Annual Meeting other than the matters described in this proxy statement. If any other matters should properly come before the Annual Meeting for action by shareholders, it is intended that proxies will be voted on those matters in accordance with the judgment of the person or persons voting the proxies. By Authority of the Board of Directors Van H. Beckwith Executive Vice President, Secretary and Chief Legal Officer April 6, 2021 67 HALLIBURTON ❘ 2021 Proxy StatementAppendix A Halliburton Company Stock and Incentive Plan As Amended and Restated February 17, 2021 I. Purpose The purpose of the Halliburton Company Stock and Incentive Plan (the “Plan”) is to provide a means whereby Halliburton Company, a Delaware corporation (the “Company”), and its Subsidiaries may attract, motivate and retain highly competent employees and to provide a means whereby selected employees can acquire and maintain stock ownership and receive cash awards, thereby strengthening their concern for the long-term welfare of the Company. The Plan is also intended to provide employees with additional incentive and reward opportunities designed to enhance the profitable growth of the Company over the long term. A further purpose of the Plan is to allow awards under the Plan to non-management Directors in order to enhance the Company’s ability to attract and retain highly qualified Directors. Accordingly, the Plan provides for granting Incentive Stock Options, Options which do not constitute Incentive Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Unit Awards, Performance Awards, Stock Value Equivalent Awards, or any combination of the foregoing, as is best suited to the circumstances of the particular employee or non-management Director as provided herein. The Plan was established February 18, 1993 as the Halliburton Company 1993 Stock and Incentive Plan and has been amended from time to time thereafter. The Plan as amended and restated herein was adopted by the Board on February 17, 2021, subject to approval by the Company’s stockholders, and will become effective as of the date of such approval. II. Definitions The following definitions shall be applicable throughout the Plan unless specifically modified by any paragraph: (a) (b) (c) (d) (e) “Award” means, individually or collectively, any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Stock Value Equivalent Award. “Award Document” means the relevant award agreement or other document containing the terms and conditions of an Award. “Beneficial Owners” shall have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act. “Board” means the Board of Directors of Halliburton Company. “Cause” shall have the meaning set forth in the Participant’s Employment Agreement, or, if there is no Employment Agreement or the Employment Agreement does not define “Cause,” “Cause” shall have the meaning set forth in an Award Document, or, if the Award Document does not define “Cause”, “Cause” shall mean: (i) conduct involving fraud or misuse of the funds or other property of the Company; or (ii) gr oss negligence or willful misconduct in the performance of duties; or (iii) indictment of a felony, or a misdemeanor involving moral turpitude; or (iv) material violation of Company policy, including the Company’s Code of Business Conduct. (f) “Code” means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section. (g) “Committee” means the committee selected by the Board to administer the Plan in accordance with Paragraph (a) of Article IV of the Plan. (h) “Common Stock” means the Common Stock, par value $2.50 per share, of the Company. (i) (j) “Company” means Halliburton Company, a Delaware corporation. “Corporate Change” shall conclusively be deemed to have occurred on a Corporate Change Effective Date if an event set forth in any one of the following paragraphs shall have occurred: (i) (ii) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates) representing 20% or more of the combined voting power of the Company’s then outstanding securities; or the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new Director (other than a Director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of Directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors on the date hereof or whose appointment, election, or nomination for election was previously so approved or recommended; or A-1 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.com(iii) (iv) there is consummated a merger or consolidation of the Company or any direct or indirect Subsidiary of the Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or any of its affiliates other than in connection with the acquisition by the Company or any of its affiliates of a business) representing 20% or more of the combined voting power of the Company’s then outstanding securities; or the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale, disposition, lease or exchange by the Company of all or substantially all of the Company’s assets, other than a sale, disposition, lease or exchange by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. Notwithstanding the foregoing, a “Corporate Change” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the Common Stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. (o) (p) (q) (r) (k) “Corporate Change Effective Date” shall mean: (i) (ii) the first date that the direct or indirect ownership of 20% or more combined voting power of the Company’s outstanding securities results in a Corporate Change as described in clause (i) of such definition above; or the date of the election of Directors that results in a Corporate Change as described in clause (ii) of such definition; or Appendix A (iii) (iv) the date of the merger or consideration that results in a Corporate Change as described in clause (iii) of such definition; or the date of stockholder approval that results in a Corporate Change as described in clause (iv) of such definition. “Employment Agreement” shall mean a written and active executive agreement between the Company, Halliburton Energy Services, Inc. or Halliburton Worldwide Resources, LLC and a Participant who is an officer, addressing the terms and conditions of the Participant’s employment, and shall include such agreements pertaining to at-will employment. (l) (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. (n) “Fair Market Value” means, as of any specified date, the closing price of the Common Stock on the New York Stock Exchange (or, if the Common Stock is not then listed on such exchange, such other national securities exchange on which the Common Stock is then listed) on that date, or if no prices are reported on that date, on the last preceding date on which such prices of the Common Stock are so reported or, in the sole discretion of the Committee for purposes of determining the Fair Market Value of the Common Stock at the time of exercise of an Option or a Stock Appreciation Right, such Fair Market Value shall be the prevailing price of the Common Stock as of the time of exercise. If the Common Stock is not then listed or quoted on any national securities exchange but is traded over the counter at the time a determination of its Fair Market Value is required to be made hereunder, its Fair Market Value shall be deemed to be equal to the average between the reported high and low sales prices of Common Stock on the most recent date on which Common Stock was publicly traded. If the Common Stock is not publicly traded at the time a determination of its value is required to be made hereunder, the determination of its Fair Market Value shall be made by the Committee in such manner as it deems appropriate. “Holder” means an employee or non-management Director of the Company who has been granted an Award. “Immediate Family” means, with respect to a particular Holder, the Holder’s spouse, parent, brother, sister, children and grandchildren (including adopted and step children and grandchildren). “Incentive Stock Option” means an Option within the meaning of Section 422 of the Code. “Minimum Criteria” means a Restriction Period that is not less than one (1) year from the date of grant of an Option, a Stock Appreciation Right, a Restricted Stock Award, Restricted Stock Unit Award, a Performance Award or a Stock Equivalent Award, such that the first time-based vesting event will occur no sooner than the first anniversary of the date of grant. (s) “Minimum Criteria Exception” means that 5% of the total number of shares available for Awards under the Plan may have a Restriction Period that is less than the Minimum Criteria. A-2 HALLIBURTON ❘ 2021 Proxy StatementAppendix A (t) (u) “Non-management Director” means a member of the Board who is not an employee or former employee of the Company or its Subsidiaries. (hh) “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a Holder with respect to a Restricted Stock Unit Award. “Option” means an Award granted under Article VII of the Plan and includes both Incentive Stock Options to purchase Common Stock and Options which do not constitute Incentive Stock Options to purchase Common Stock. (ii) (v) “Option Agreement” means a written agreement between the Company and a Holder with respect to an Option. (w) “Optionee” means a Holder who has been granted an Option. (x) (y) (z) “Parent Corporation” shall have the meaning set forth in Section 424(e) of the Code. “Performance Award” means an Award granted under Article XI of the Plan. “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. (aa) “Plan” means the Halliburton Company Stock and Incentive Plan, as amended and restated. (bb) “Protected Period” means the period beginning on the date of the public announcement of a transaction that, if consummated, would result in a Corporate Change and ending on the date that is the earlier of (i) the announcement of the termination of the proposed transaction or (ii) two years after the Corporate Change Effective Date. (cc) “ Qualifying Termination” means, with respect to an Award granted on or after February 13, 2019, a Holder’s termination of service during a Protected Period due to involuntary termination without Cause, death, disability, Good Reason (as defined in an Employment Agreement, or a similar constructive termination event, in each case, only if a severance benefit is payable upon termination of employment due to such event pursuant to an Employment Agreement) or other event as specified in the Holder’s Award Document. (dd) “Restricted Stock Award” means an Award granted under Article IX of the Plan. (ee) “Restricted Stock Award Agreement” means a written agreement between the Company and a Holder with respect to a Restricted Stock Award. (ff) “Restricted Stock Unit” means a unit evidencing the right to receive one share of Common Stock or an equivalent value equal to the Fair Market Value of a share of Common Stock (as determined by the Committee) that is restricted or subject to forfeiture provisions. (gg) “Restricted Stock Unit Award” means an Award granted under Article X of the Plan. A-3 “Restriction Period” means a period of time beginning as of the date upon which an Option, a Stock Appreciation Right, a Restricted Stock Award, a Restricted Stock Unit Award, a Performance Award or a Stock Value Equivalent Award is made pursuant to the Plan and ending as of the date upon which all or a portion of the Option or Stock Appreciation Right becomes exercisable or the Common Stock or cash subject to a Restricted Stock Award, a Restricted Stock Unit Award, a Performance Award or a Stock Value Equivalent Award is issued (if not previously issued), no longer restricted or subject to forfeiture provisions, but shall not include restrictions associated with deferral of vested Awards. (jj) “Spread” means, in the case of a Stock Appreciation Right, an amount equal to the excess, if any, of the Fair Market Value of a share of Common Stock on the date such right is exercised over the exercise price of such Stock Appreciation Right. (kk) “Stock Appreciation Right” means an Award granted under Article VIII of the Plan. (ll) “Stock Appreciation Rights Agreement” means a written agreement between the Company and a Holder with respect to an Award of Stock Appreciation Rights. (mm) “Stock Value Equivalent Award” means an Award granted under Article XII of the Plan. (nn) “Subsidiary” means a company (whether a corporation, partnership, joint venture or other form of entity) in which the Company or a corporation in which the Company owns a majority of the shares of capital stock, directly or indirectly, owns a greater than 20% equity interest, except that with respect to the issuance of Incentive Stock Options the term “Subsidiary” shall have the same meaning as the term “subsidiary corporation” as defined in Section 424(f) of the Code. (oo) “Successor Holder” shall have the meaning given such term in Paragraph (f) of Article XV. III. Effective Date and Duration of the Plan The Plan as amended and restated herein was adopted by the Board on February 17, 2021, is subject to approval by the Company’s stockholders and will become effective as of the date of such approval. Subject to the provisions of Article XIII, the Plan shall remain in effect until all Options and Stock Appreciation Rights granted under the Plan have been exercised or expired by reason of lapse of time, all restrictions imposed upon Restricted Stock Awards and Restricted Stock Unit Awards have lapsed and all Performance Awards and Stock Value Equivalent Awards have been satisfied. IV. Administration (a) Composition of Committee: The Plan shall be administered by a Committee of Directors of the Company which shall be appointed by the Board. HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comAppendix A (b) Powers: The Committee shall have authority, in its discretion, to determine which eligible individuals shall receive an Award, the time or times when such Award shall be made, whether an Incentive Stock Option, nonqualified Option or Stock Appreciation Right shall be granted, the number of shares of Common Stock which may be issued under each Option, Stock Appreciation Right, Restricted Stock Award and Restricted Stock Unit Award, and the value of each Performance Award and Stock Value Equivalent Award. The Committee shall have the authority, in its discretion, to establish the terms and conditions applicable to any Award, subject to any specific limitations or provisions of the Plan. In making such determinations the Committee may take into account the nature of the services rendered by the respective individuals, their responsibility level, their present and potential contribution to the Company’s success and such other factors as the Committee in its discretion shall deem relevant. Notwithstanding any provision of the Plan to the contrary, the Committee may provide for the acceleration of vesting or exercisability of an Award upon a Corporate Change, upon a termination of employment or service by reason of death, disability, retirement or otherwise or for any other reason. (c) Additional Powers. The Committee shall have such additional powers as are delegated to it by the other provisions of the Plan. Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective Award Documents executed thereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the Plan, and to determine the terms, restrictions and provisions of each Award, including such terms, restrictions and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive Stock Options, and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any Award Document relating to an Award in the manner and to the extent the Committee shall deem expedient to carry the Award into effect. The determinations of the Committee on the matters referred to in this Article IV shall be conclusive. (d) Delegation of Authority. The Committee may delegate some or all of its power to the Chief Executive Officer of the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power with regard to the selection for participation in the Plan of an officer or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an Award to such an officer or other person and any delegation of the power to grant Awards shall be permitted by applicable law. (e) Engagement of an Agent. The Company may, in its discretion, engage an agent to (i) maintain records of Awards and Holders’ holdings under the Plan, (ii) execute sales transactions in shares of Common Stock at the direction of Holders, (iii) deliver sales proceeds as directed by Holders, and (iv) hold shares of Common Stock owned without restriction by Holders, including shares of Common Stock previously obtained through the Plan that are transferred to the agent by Holders at their discretion. Except to the extent otherwise agreed by the Company and the agent, when an individual loses his or her status as an employee or non-management Director of the Company, the agent shall have no obligation to provide any further services to such person and the shares of Common Stock previously held by the agent under the Plan may be distributed to the person or his or her legal representative. V. Grant of Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Unit Awards, Performance Awards and Stock Value Equivalent Awards; Shares Subject to the Plan (a) Award Limits. The Committee may from time to time grant Awards to one or more individuals determined by it to be eligible for participation in the Plan in accordance with the provisions of Article VI. The aggregate number of shares of Common Stock that may be issued under the Plan shall not exceed 36,238,519 shares, all of which shall be available for Awards of Incentive Stock Options. Shares issued as Restricted Stock Awards, Restricted Stock Unit Awards or pursuant to Performance Awards will count against the shares available for issuance under the Plan as 1.60 shares for every 1 share issued in connection with the Award. Notwithstanding anything contained herein to the contrary, the number of Option shares or Stock Appreciation Rights, singly or in combination, together with shares or share equivalents under Performance Awards granted to any Holder who is an employee in any one calendar year, shall not in the aggregate exceed 1,000,000. The cash value determined as of the date of grant of any Performance Award not denominated in Common Stock granted to any Holder who is an employee in any one calendar year shall not exceed $30,000,000. The fair market value, determined as of the date of grant, of Awards granted to a Holder who is a non-management Director in any one calendar year, when added to any cash or other compensation payable to such a Holder in such calendar year, shall not exceed $750,000. Any shares which remain unissued and which are not subject to outstanding Options or Awards at the termination of the Plan shall cease to be subject to the Plan, but, until termination of the Plan, the Company shall at all times reserve a sufficient number of shares to meet the requirements of the Plan. If Awards are forfeited or are terminated for any other reason before being exercised or settled, then the shares underlying such Awards shall again become available for Awards under the Plan. Notwithstanding the foregoing, the following shares shall not become available for Awards under the Plan: (i) shares tendered by an Optionee or withheld by the Company for payment of an option price, (ii) shares tendered by a Holder or withheld by the Company to satisfy the Company’s tax withholding obligation in connection with an Award, (iii) shares reacquired in the open market or A-4 HALLIBURTON ❘ 2021 Proxy StatementAppendix A otherwise using cash proceeds from the exercise of Options, and (iv) shares that are not issued to a Holder due to a net settlement of an Award. For purposes of clarity, Stock Appreciation Rights and Options shall be counted in full against the number of shares available for issuance under the Plan, regardless of the number of shares issued upon settlement of the Stock Appreciation Rights and Options. The aggregate number of shares which may be issued under the Plan shall be subject to adjustment in the same manner as provided in Article XIII with respect to shares of Common Stock subject to Options then outstanding. The 1,000,000-share limit on Holders who are employees with respect to Stock Options and Stock Appreciation Rights Awards, singly or in combination, together with shares or share equivalents under Performance Awards granted to any Holder who is an employee in any calendar year shall be subject to adjustment in the same manner as provided in Article XIII. Separate stock certificates shall be issued by the Company for those shares acquired pursuant to the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of any Option which does not constitute an Incentive Stock Option. (b) Stock Offered. The stock to be offered pursuant to the grant of an Award may be authorized but unissued Common Stock or Common Stock previously issued and reacquired by the Company. VI. Eligibility Only employees of the Company or any Parent Corporation or Subsidiary of the Company and non-management Directors shall be eligible for Awards under the Plan as determined by the Committee in its sole discretion. Each Award shall be evidenced in such manner and form as may be prescribed by the Committee. (d) Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as determined by the Committee. (e) Option Price. The purchase price of Common Stock issued under each Option shall be determined by the Committee, but such purchase price shall not be less than the Fair Market Value of Common Stock subject to the Option on the date the Option is granted. (f) Options and Rights in Substitution for Stock Options Granted by Other Corporations. Options and Stock Appreciation Rights may be granted under the Plan from time to time in substitution for stock options held by employees of corporations who become, or who became prior to the effective date of the Plan, employees of the Company or of any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company or such Subsidiary, or the acquisition by the Company or a Subsidiary of all or a portion of the assets of the employing corporation, or the acquisition by the Company or a Subsidiary of stock of the employing corporation with the result that such employing corporation becomes a Subsidiary. (g) Repricing Prohibited. Except for adjustments pursuant to Article XIII, the purchase price of Common Stock for any outstanding Option granted under the Plan may not be decreased after the date of grant nor may an outstanding Option granted under the Plan be surrendered to the Company as consideration for the grant of a new Option with a lower purchase price, cash or a new Award unless there is prior approval by the Company stockholders. Any other action that is deemed to be a repricing under any applicable rule of the New York Stock Exchange shall be prohibited unless there is prior approval by the Company stockholders. VII. Stock Options VIII. Stock Appreciation Rights (a) Stock Option Agreement. Each Option shall be evidenced by an Option Agreement between the Company and the Optionee which shall contain such terms and conditions as may be approved by the Committee. The terms and conditions of the respective Option Agreements need not be identical. Specifically, an Option Agreement may provide for the payment of the option price, in whole or in part, by the delivery of a number of shares of Common Stock (plus cash if necessary) having a Fair Market Value equal to such option price. (b) Restriction Period To Be Established by the Committee. The Committee shall establish the Restriction Period applicable to an Option; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Awards of Options may utilize the Minimum Criteria Exception. (c) Option Period. The term of each Option shall be as specified by the Committee at the date of grant; provided that, in no case, shall the term of an Option exceed ten (10) years. (a) Stock Appreciation Rights. A Stock Appreciation Right is the right to receive an amount equal to the Spread with respect to a share of Common Stock upon the exercise of such Stock Appreciation Right. Stock Appreciation Rights may be granted in connection with the grant of an Option, in which case the Option Agreement will provide that exercise of Stock Appreciation Rights will result in the surrender of the right to purchase the shares under the Option as to which the Stock Appreciation Rights were exercised. Alternatively, Stock Appreciation Rights may be granted independently of Options in which case each Award of Stock Appreciation Rights shall be evidenced by a Stock Appreciation Rights Agreement between the Company and the Holder which shall contain such terms and conditions as may be approved by the Committee. The terms and conditions of the respective Stock Appreciation Rights Agreements need not be identical. The Spread with respect to a Stock Appreciation Right may be payable either in cash, shares of Common Stock with a Fair Market Value equal to the Spread or in a combination of cash and shares of Common Stock as determined by the Committee in its sole discretion. A-5 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comAppendix A (b) Restriction Period To Be Established by the Committee. The Committee shall establish the Restriction Period applicable to a Stock Appreciation Right; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Awards of Stock Appreciation Rights may utilize the Minimum Criteria Exception. (c) Exercise Price. The exercise price of each Stock Appreciation Right shall be determined by the Committee, but such exercise price shall not be less than the Fair Market Value of a share of Common Stock on the date the Stock Appreciation Right is granted. (d) Exercise Period. The term of each Stock Appreciation Right shall be as specified by the Committee at the date of grant; provided that, in no case, shall the term of a Stock Appreciation Right exceed ten (10) years. (e) Limitations on Exercise of Stock Appreciation Right. A Stock Appreciation Right shall be exercisable in whole or in such installments and at such times as determined by the Committee. (f) Repricing Prohibited. Except for adjustments pursuant to Article XIII, the exercise price of a Stock Appreciation Right may not be decreased after the date of grant nor may an outstanding Stock Appreciation Right granted under the Plan be surrendered to the Company as consideration for the grant of a new Stock Appreciation Right with a lower exercise price, cash or a new Award unless there is prior approval by the Company stockholders. Any other action that is deemed to be a repricing under any applicable rule of the New York Stock Exchange shall be prohibited unless there is prior approval by the Company stockholders. IX. Restricted Stock Awards (a) Restriction Period To Be Established by the Committee. The Committee shall establish the Restriction Period applicable to Restricted Stock Awards; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Restricted Stock Awards may utilize the Minimum Criteria Exception. (b) Other Terms and Conditions. Common Stock awarded pursuant to a Restricted Stock Award shall be represented by a stock certificate registered in the name of the Holder of such Restricted Stock Award or, at the option of the Company, in the name of a nominee of the Company. The Holder shall have the right to receive dividends during the Restriction Period, to vote the Common Stock subject thereto and to enjoy all other stockholder rights, except that (i) the Holder shall not be entitled to possession of the stock certificate until the Restriction Period shall have expired, (ii) the Company shall retain custody of the stock during the Restriction Period, (iii) the Holder may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the stock during the Restriction Period, and (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Award shall cause a forfeiture of the Restricted Stock Award. The Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to Restricted Stock Awards as shall be set forth in a Restricted Stock Award Agreement. (c) Payment for Restricted Stock. A Holder shall not be required to make any payment for Common Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law and except that the Committee may, in its discretion, charge the Holder an amount in cash not in excess of the par value of the shares of Common Stock issued under the Plan to the Holder. (d) Miscellaneous. Nothing in this Article shall prohibit the exchange of shares issued under the Plan (whether or not then subject to a Restricted Stock Award) pursuant to a plan of reorganization for stock or securities in the Company or another corporation a party to the reorganization, but the stock or securities so received for shares then subject to the restrictions of a Restricted Stock Award shall become subject to the restrictions of such Restricted Stock Award. Any shares of stock received as a result of a stock split or stock dividend with respect to shares then subject to a Restricted Stock Award shall also become subject to the restrictions of the Restricted Stock Award. X. Restricted Stock Unit Awards (a) Restriction Period To Be Established by the Committee. The Committee shall establish the Restriction Period applicable to Restricted Stock Unit Awards; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Restricted Stock Unit Awards may utilize the Minimum Criteria Exception. (b) Other Terms and Conditions. The Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to the Restricted Stock Unit Award as shall be set forth in a Restricted Stock Unit Award Agreement. Cash dividend equivalents may be converted into additional Restricted Stock Units or may be paid during, or may be accumulated and paid at the end of, the Restriction Period with respect to a Restricted Stock Unit Award, as determined by the Committee. The Committee, in its sole discretion, may provide for the deferral of a Restricted Stock Unit Award. (c) Payment for Restricted Stock Unit. A Holder shall not be required to make any payment for Common Stock received pursuant to a Restricted Stock Unit Award, except to the extent otherwise required by law and except that the Committee may, in its discretion, charge the Holder an amount in cash not in excess of the par value of the shares of Common Stock issued under the Plan to the Holder. (d) Restricted Stock Units in Substitution for Units Granted by Other Corporations. Restricted Stock Unit Awards may be granted under the Plan from time to time in substitution for restricted stock units held by employees of corporations who become, or who became prior to the effective date of the Plan, employees of the Company or of any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company or such Subsidiary, or the acquisition by the Company or a Subsidiary of all or a portion of the assets of the employing corporation, or the acquisition by the Company or a Subsidiary of stock of the employing corporation with the result that such employing corporation becomes a Subsidiary. A-6 HALLIBURTON ❘ 2021 Proxy StatementAppendix A XI. Performance Awards (a) Performance Period. The Committee shall establish, with respect to and at the time of each Performance Award, a performance period over which the performance applicable to the Performance Award of the Holder shall be measured and a Restriction Period; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Performance Awards may utilize the Minimum Criteria Exception. (b) Performance Awards. Each Performance Award may have a maximum value established by the Committee at the time of such Award. (c) Performance Measures. A Performance Award granted under the Plan shall be awarded contingent, in whole or in part, upon the achievement of one or more performance measures. The performance criteria for Performance Awards shall consist of objective tests based on the following: earnings, cash flow, return on capital, cash value added performance, stockholder return and/or value, revenues, operating profits (including EBITDA), net profits, earnings per share, stock price, cost reduction goals, debt to capital ratio, financial return ratios, profit return and margins, market share, working capital, net operating profit after taxes, asset turns, customer satisfaction and any other criteria as determined by the Committee. The Committee may select one criterion or multiple criteria for measuring performance. Performance criteria may be measured on corporate, subsidiary or business unit performance, or on a combination thereof. Further, the performance criteria may be based on comparative performance with other companies or other external measure of the selected performance criteria. (d) Payment. Following the end of the performance period, the Holder of a Performance Award shall be entitled to receive payment of an amount, not exceeding the maximum value of the Performance Award, if any, based on the achievement of the performance measures for such performance period, as determined by the Committee in its sole discretion. Payment of a Performance Award (i) may be made in cash, Common Stock or a combination thereof, as determined by the Committee in its sole discretion, (ii) shall be made in a lump sum or in installments as prescribed by the Committee in its sole discretion, and (iii) to the extent applicable, shall be based on the Fair Market Value of the Common Stock on the payment date. (e) Termination of Service. The Committee shall determine the effect of termination of service during the performance period on a Holder’s Performance Award. XII. Stock Value Equivalent Awards (a) Stock Value Equivalent Awards. Stock Value Equivalent Awards are rights to receive an amount equal to the Fair Market Value of shares of Common Stock or rights to receive an amount equal to any appreciation or increase in the Fair Market Value of Common Stock over a specified period of time, which is subject to a Restriction Period as established by the Committee, without payment of any amounts by the Holder thereof (except to the extent otherwise required by law) or satisfaction of any performance criteria or objectives. Each Stock Value Equivalent Award may have a maximum value established by the Committee at the time of such Award. (b) Award Period. The Committee shall establish the Restriction Period applicable to Stock Value Equivalent Awards; provided, however, that such Restriction Period shall not be less than the Minimum Criteria. Notwithstanding the foregoing, Stock Value Equivalent Awards may utilize the Minimum Criteria Exception. (c) Payment. Following the end of the determined period for a Stock Value Equivalent Award, the Holder of a Stock Value Equivalent Award shall be entitled to receive payment of an amount, not exceeding the maximum value of the Stock Value Equivalent Award, if any, based on the then vested value of the Award. Payment of a Stock Value Equivalent Award (i) shall be made in cash, (ii) shall be made in a lump sum or in installments as prescribed by the Committee in its sole discretion, and (iii) shall be based on the Fair Market Value of the Common Stock on the payment date. Cash dividend equivalents may be paid during, or may be accumulated and paid at the end of, the determined vesting period with respect to a Stock Value Equivalent Award, as determined by the Committee. (d) Termination of Service. The Committee shall determine the effect of termination of service during the applicable vesting period on a Holder’s Stock Value Equivalent Award. XIII. Recapitalization or Reorganization (a) Except as hereinafter otherwise provided, in the event of any recapitalization, reorganization, merger, consolidation, combination, exchange, stock dividend, stock split, extraordinary dividend or divestiture (including a spin-off) or any other change in the corporate structure or shares of Common Stock occurring after the date of the grant of an Award, the Committee shall, in its discretion, make such adjustment as to the number and price of shares of Common Stock or other consideration subject to such Awards as the Committee shall deem appropriate in order to prevent dilution or enlargement of rights of the Holders. (b) The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities having any priority or preference with respect to or affecting Common Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding. (c) The shares with respect to which Options, Stock Appreciation Rights or Restricted Stock Units may be granted are shares of Common Stock as presently constituted, but if, and whenever, prior to the expiration of an Option, Stock Appreciation Rights or Restricted Stock Unit Award, the Company shall effect a subdivision or consolidation of shares A-7 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comAppendix A (d) of Common Stock or the payment of a stock dividend on Common Stock without receipt of consideration by the Company, the number of shares of Common Stock with respect to which such Award relates or may thereafter be exercised (i) in the event of an increase in the number of outstanding shares shall be proportionately increased, and, as applicable, the purchase price per share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding shares shall be proportionately reduced, and, as applicable, the purchase price per share shall be proportionately increased. If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise of an Option or Stock Appreciation Right or payment in settlement of a Restricted Stock Unit Award theretofore granted, the Holder shall be entitled to purchase or receive, as applicable, under such Award, in lieu of the number of shares of Common Stock as to which such Award relates or shall then be exercisable, the number and class of shares of stock and securities and the cash and other property to which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder had been the holder of record of the number of shares of Common Stock then covered by such Award. (e) Notwithstanding any provisions of the Plan to the contrary, in the event of an employee Holder’s Qualifying Termination, unless an Award Document otherwise provides, as of the date of such Holder’s termination of service (i) any outstanding Options and Stock Appreciation Rights shall become immediately vested and fully exercisable for the full term thereof, (ii) any restrictions on Restricted Stock Awards or Restricted Stock Unit Awards shall immediately lapse, (iii) all performance measures upon which an outstanding Performance Award is contingent shall be deemed achieved and the Holder shall receive a payment equal to the target amount of the Award he or she would have been entitled to receive, without proration, and (iv) any outstanding cash Awards including Stock Value Equivalent Awards shall immediately vest and be paid based on the vested value of the Award. (f) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to Awards theretofore granted, the purchase price per share of Common Stock subject to Options or the calculation of the Spread with respect to Stock Appreciation Rights. (g) Notwithstanding the foregoing, the provisions of this Article  XIII shall be administered in accordance with Section 409A of the Code, and settlement of Awards under Section 13(e) will be delayed until the scheduled payment or vesting date to the extent required to comply with Section 409A of the Code or to avoid the taxes imposed thereunder. XIV. Amendment or Termination of the Plan The Board in its discretion may terminate the Plan or alter or amend the Plan or any part thereof from time to time; provided that no change in any Award theretofore granted may be made which would impair the rights of the Holder without the consent of the Holder, and provided, further, that the Board may not, without approval of the stockholders, amend the Plan to effect a “material revision” of the Plan, where a “material revision” includes, but is not limited to, a revision that: (a) materially increases the benefits accruing to a Holder under the Plan, (b) materially increases the aggregate number of securities that may be issued under the Plan, (c) materially modifies the requirements as to eligibility for participation in the Plan, or (d) changes the types of awards available under the Plan. XV. Other (a) No Right To An Award. Neither the adoption of the Plan nor any action of the Board or of the Committee shall be deemed to give an employee or a non-management Director any right to be granted an Option, a Stock Appreciation Right, a right to a Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Stock Value Equivalent Award or any other rights hereunder except as may be evidenced by an Award or by an Option or Stock Appreciation Agreement duly executed on behalf of the Company, and then only to the extent of and on the terms and conditions expressly set forth therein. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to assure the payment of any Award. (b) No Employment Rights Conferred. Nothing contained in the Plan or in any Award made hereunder shall: (i) (ii) confer upon any employee any right to continuation of employment with the Company or any Subsidiary; or interfere in any way with the right of the Company or any Subsidiary to terminate his or her employment at any time. (c) No Rights to Serve as a Director Conferred. Nothing contained in the Plan or in any Award made hereunder shall confer upon any Director any right to continue their position as a Director of the Company. (d) Other Laws; Withholding. The Company shall not be obligated to issue any shares of Common Stock pursuant to any Award at any time, when the offering of the shares of Common Stock covered by such Award has not been registered under the U.S. Securities Act of 1933, as amended (the “Act”) or such other country, U.S. federal or state laws, rules or regulations as the Company deems applicable and, in the opinion of legal counsel for the Company, there is no exemption from the registration. The Company intends to use reasonable efforts to ensure that no such delay will occur. In the event exemption from registration under the Act is available upon vesting of an Award, the Participant, if requested by the Company to do so, will execute and deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable securities laws. By accepting A-8 HALLIBURTON ❘ 2021 Proxy StatementAppendix A an Award, the Participant agrees that the shares of Common Stock which the Participant may acquire upon vesting of an Award will not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable U.S. federal, state or non-U.S. securities laws. Furthermore, the Participant also agrees (i) that the Company may refuse to register the transfer of the shares of Common Stock acquired under an Award on the stock transfer records of the Company if such proposed transfer would in the opinion of counsel to the Company constitute a violation of any applicable securities law, and (ii) that the Company may give related instructions to its transfer agent, if any, to stop registration of the transfer of the shares of Common Stock acquired under the Plan. No fractional shares of Common Stock shall be delivered, nor shall any cash in lieu of fractional shares be paid. The Company shall have the right to deduct in connection with all Awards any taxes required by law to be withheld and to require any payments necessary to enable it to satisfy its withholding obligations. The Committee may permit the Holder of an Award to elect to surrender, or authorize the Company to withhold, shares of Common Stock (valued at their Fair Market Value on the date of surrender or withholding of such shares) in satisfaction of the Company’s withholding obligation, subject to such restrictions as the Committee deems appropriate. (e) No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action which is deemed by the Company or such Subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Holder, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such action. (f) Restrictions on Transfer. No Award may be sold, assigned, pledged, exchanged, hypothecated, encumbered, disposed of, or otherwise transferred, except by will or the laws of descent and distribution or pursuant to a “qualified domestic relations order” as defined by the Code or Title I of the U.S. Employee Retirement Income Security Act of 1974, as amended, or similar order. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of an Award or of such rights contrary to the provisions of an Award Document or in the Plan, the Award and such rights shall immediately become null and void. The Committee may prescribe and include in the respective Award Documents hereunder other restrictions on transfer. Upon a Holder’s death, the Holder’s personal representative or other person entitled to succeed to the rights of the Holder (the “Successor Holder”) may exercise such rights as are provided under the applicable Award Document. A Successor Holder must furnish proof satisfactory to the Company of his or her rights to exercise the Award under the Holder’s will or under the applicable laws of descent and distribution. Notwithstanding the foregoing, the Committee shall have the authority, in its discretion, to grant (or to sanction by way of amendment to an existing grant) Awards (other than Incentive Stock Options) which may be transferred by the Holder for no A-9 consideration to or for the benefit of the Holder’s Immediate Family, to a trust solely for the benefit of the Holder and his Immediate Family, or to a partnership or limited liability company in which the Holder and members of his Immediate Family have at least 99% of the equity, profit and loss interest, in which case the Award Document shall so state. A transfer of an Award pursuant to this Paragraph (f) shall be subject to such rules and procedures as the Committee may establish. In the event an Award is transferred as contemplated in this Paragraph (f), such Award may not be subsequently transferred by the transferee except by will or the laws of descent and distribution, and such Award shall continue to be governed by and subject to the terms and limitations of the Plan and the relevant written instrument for the Award and the transferee shall be entitled to the same rights as the Holder under Articles XIII and XIV hereof as if no transfer had taken place. No transfer shall be effective unless and until written notice of such transfer is provided to the Committee, in the form and manner prescribed by the Committee. The consequences of termination of employment shall continue to be applied with respect to the original Holder, following which the Awards shall be exercised by the transferee only to the extent and for the periods specified in the Plan and the related Award Document. The Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Award Agreement, Restricted Stock Unit Award Agreement or other Award Document shall specify the effect of the death of the Holder on the Award. (g) Governing Law. This Plan shall be construed in accordance with the laws of the State of Texas, except to the extent that it implicates matters which are the subject of the General Corporation Law of the State of Delaware which matters shall be governed by the latter law. (h) Foreign Awardees. Without amending the Plan, the Committee may grant Awards to eligible persons who are foreign nationals on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes, the Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with the provisions of laws and regulations in other countries or jurisdictions in which the Company or its Subsidiaries operate. (i) Clawback or Recoupment. Notwithstanding any other provisions in this Plan, any Award shall be subject to clawback, recovery or recoupment by the Company under any clawback or recoupment policy adopted by the Company, whether before or after the date of grant of the Award. HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comAppendix B Appendix B Halliburton Company Employee Stock Purchase Plan As Amended and Restated February 17, 2021 1. Purpose. The HALLIBURTON COMPANY EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) is intended to provide an incentive for eligible employees of HALLIBURTON COMPANY (the “Company”) and certain of its subsidiaries to acquire or increase a proprietary interest in the Company through the purchase of shares of the Company’s common stock. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). The provisions of the Plan shall be construed in a manner consistent with the requirements of that section of the Code. The Plan was originally established in 2002 as the Halliburton Company 2002 Employee Stock Purchase Plan, was renamed the Halliburton Company Employee Stock Purchase Plan in 2009, was amended and restated February 24, 2015, and was amended in 2019. 2. Definitions. Where the following words and phrases are used in the Plan, they shall have the respective meanings set forth below, unless the context clearly indicates to the contrary: “Board” means the Board of Directors of the Company. “Committee” means the Board or a committee of members of the Board appointed by the Board to administer this Plan. “Company” means Halliburton Company and, where required by the context, shall include any Participating Company. “Corporate Change” means one of the following events: (i) the merger, consolidation, or other reorganization of the Company in which the outstanding Stock is converted into or exchanged for a different class of securities of the Company, a class of securities of any other issuer (except a direct or indirect wholly owned subsidiary of the Company), cash or other property; (ii) the sale, lease or exchange of all or substantially all of the assets of the Company to any other corporation or entity (except a direct or indirect wholly owned subsidiary of the Company); or (iii) the adoption by the stockholders of the Company of a plan of liquidation or dissolution. “Eligible Compensation” means an employee’s regular straight-time earnings or base salary, determined before giving effect to any elective salary reduction or deferral agreements and including vacation, sick time and short-term disability pay, but excluding overtime, incentive compensation, bonuses, special payments, commissions, severance pay, long-term disability pay, geographical coefficients, shift differential and any other items of compensation. “Eligible Employee” means, as of each Enrollment Date, each employee of the Company or a Participating Company, but excluding employees who are employed in a foreign country whose laws or regulations effectively prohibit participation in the Plan. Additionally the Committee may also determine that a designated group of highly compensated employees are ineligible to participate in the Plan so long as the group fits within the definition of ‘highly compensated employee’ in Code Section 414(q). “Enrollment Date” means the first day of each Purchase Period. “Exchange Act” means the Securities Exchange Act of 1934, as amended. “Fair Market Value” shall mean the closing price for a share of Stock on the New York Stock Exchange (or if the Stock is not then listed on such exchange, such other national securities exchange on which the Stock is then listed) for the last Trading Day on the date of such determination, as reported on the New York Stock Exchange (or such other national securities exchange) Composite Tape or such other source as the Committee deems reliable, or if no prices are reported on that date, on the last preceding date on which such prices are so reported. “Participating Company” means any present or future parent corporation or Subsidiary of the Company that participates in the Plan pursuant to paragraph 4. “Purchase Date” means the last Trading Day of each Purchase Period. “Purchase Period” means a period of approximately three months beginning on the first Trading Day of each calendar quarter that begins on January 1, April 1, July 1, or October 1 and ending on the last Trading Day of the respective calendar quarter ending March 31, June 30, September 30, or December 31. The Committee shall have the power to change the duration of Purchase Periods (including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced at least five days prior to the scheduled beginning of the first Purchase Period to be affected thereafter. “Purchase Price” means an amount equal to 90% of the Fair Market Value of a share of Stock on the Enrollment Date or on the Purchase Date, whichever is lower, subject to adjustment pursuant to paragraph 13. “Stock” means the Company’s common stock, par value $2.50 per share. B-1 HALLIBURTON ❘ 2021 Proxy StatementAppendix B “Sub-Plan” means the Company’s Non-Qualified Stock Purchase Plan, as amended. “Subsidiary” means a corporation, domestic or foreign, which is a “subsidiary” of the Company, as defined in section 424(f) of the Code, whether or not such corporation exists or is hereafter organized or acquired by the Company or a subsidiary. “Trading Day” means a day on which the principal national stock exchange on which the Stock is traded is open for trading. 3. Administration of the Plan. The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee shall interpret the Plan, make such rules as it deems necessary for the proper administration of the Plan, and make all other determinations necessary or advisable for the administration of the Plan and the purchase of Stock under the Plan, including without limitation establishing the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars. In addition, the Committee shall correct any defect or supply any omission or reconcile any inconsistency in the Plan, or in any stock purchase right granted under the Plan, correct any mistakes in the administration of the Plan in the manner and to the extent that the Committee deems necessary or desirable to effectuate the intent of the Plan. The Committee shall, in its sole discretion, make such decisions or determinations and take such actions, and all such decisions, determinations and actions taken or made by the Committee pursuant to this and the other paragraphs of the Plan shall be conclusive on all parties. The Committee shall not be liable for any decision, determination or action taken in good faith in connection with the administration of the Plan. The Committee shall have the authority to delegate some or all of its power under the Plan, including routine day-to-day administration of the Plan, to such officers and employees of the Company as the Committee deems appropriate. 4. Participating Companies. The Committee may designate any present or future parent corporation of the Company or Subsidiary that is eligible by law to participate in the Plan as a Participating Company by written instrument delivered to the designated Participating Company. Such written instrument shall specify the effective date of such designation and shall become, as to such designated Participating Company and employees in its employment, a part of the Plan. The terms of the Plan may be modified as applied to the Participating Company only to the extent permitted under Section 423 of the Code. Transfer of employment among the Company and Participating Companies shall not be considered a termination of employment hereunder. Any Participating Company may, by appropriate action of its Board of Directors, terminate its participation in the Plan. Moreover, the Committee may, in its discretion, terminate a Participating Company’s Plan participation in the Plan at any time. 5. Eligibility. Subject to the further provisions hereof, all Eligible Employees as of an Enrollment Date shall be eligible to participate in the Plan with respect to the Purchase Period beginning as of such date. 6. Stock Subject to the Plan. Subject to the provisions of paragraph 13, the aggregate number of shares of Stock which may be sold under the Plan and the Sub-Plan shall not exceed 104,000,000 shares, which shares may be authorized but unissued shares or treasury shares, including shares bought on the open market or otherwise for purposes of the Plan. 7. Stock Purchase Rights. (a) Grant of Stock Purchase Rights. On each Enrollment Date the Company shall grant a stock purchase right to each Eligible Employee who elects to participate in the Plan for the Purchase Period beginning on such date. Subject to subparagraphs 7(f) and (g), the number of shares of Stock subject to a stock purchase right for a participant shall be equal to the quotient of (i) the aggregate payroll deductions withheld on behalf of such participant during the Purchase Period, divided by (ii) the Purchase Price of the Stock applicable to the Purchase Period; provided, however, that the maximum number of shares of Stock that may be subject to any stock purchase right for a participant during any Purchase Period may not exceed 10,000 shares (subject to adjustment as provided in paragraph 13). Whole and fractional shares shall be purchased, unless the Committee determines that the purchase of fractional shares is administratively impracticable. Any references in the Plan to “shares” shall include fractional shares, if any, purchased by the participant under the Plan. (b) Election to Participate; Payroll Deduction Authorization. An Eligible Employee may participate in the Plan only by means of payroll deduction. Except as provided in subparagraph 7(f), each Eligible Employee who elects to participate in the Plan shall deliver to the Company, within the time period prescribed by the Committee, a payroll deduction authorization in the form or manner prescribed by the Company, whereby he gives notice of his election to participate in the Plan as of the next following Enrollment Date, and whereby he designates an integral percentage (except as provided below) to be deducted from his Eligible Compensation for each pay period paid during the Purchase Period and paid into the Plan for his account. The designated percentage may not exceed 10%; provided, however, the minimum contribution per pay period shall be $10. (c) Changes in Payroll Authorization. All payroll deductions made for a participant shall be credited to his account under the Plan. A participant may discontinue his participation in the Plan as provided in paragraph 9 hereof, or may increase or decrease the rate of his payroll deductions during the Purchase Period by completing or filing with the Company, at a time and in a manner prescribed by the Committee, a new payroll deduction authorization form authorizing a change in his payroll rate. The Committee may, in its discretion, limit the number of payroll rate changes during any Purchase Period. The change in rate shall B-2 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.combe effective as soon as administratively practicable after the Company’s receipt of the new payroll deduction authorization form. A participant’s payroll deduction authorization form shall remain in effect for successive Purchase Periods unless terminated as provided in paragraph 9 hereof. (d) Automatic Payroll Reduction. Notwithstanding the foregoing, to the extent necessary to comply with subparagraphs 7(f) and (g) hereof, a participant’s payroll deductions may be decreased to 0% at any time during a Purchase Period. Payroll deductions shall recommence at the rate provided in such participant’s payroll deduction authorization form at the beginning of the first Purchase Period that is scheduled to end in the following calendar year, unless terminated by the participant as provided in paragraph 9 hereof. (e) Tax Withholding. At the time the stock purchase right is exercised, in whole or in part, or at the time some or all of the Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state or other tax withholding obligations, if any, that arise upon the exercise of the stock purchase right or the disposition of the Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including without limitation any withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Stock purchased by the participant. (f) $25,000 Limitation. Notwithstanding anything in the Plan to the contrary, no employee shall be granted a stock purchase right under the Plan which permits his rights to purchase Stock under the Plan and under all other employee stock purchase plans of the Company and its parent corporation and Subsidiaries to accrue at a rate which exceeds $25,000 of Fair Market Value of Stock (determined at the time such stock purchase right is granted) for each calendar year in which such stock purchase right is outstanding at any time (within the meaning of Section 423(b)(8) of the Code). Any payroll deductions in excess of the amount specified in the foregoing sentence shall be returned to the participant as soon as administratively feasible. (g) Special Restriction on Participation. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee shall be granted a stock purchase right under the Plan to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock possessing 5% or more of the total combined voting power or value of all classes of the capital stock of the Company, its parent corporation or any Subsidiary. Appendix B 8. Exercise of Stock Purchase Rights. (a) General Statement. Subject to the limitations set forth in paragraph 7, unless a participant withdraws from the Plan as provided in paragraph 9, each participant in the Plan automatically and without any act on his part shall be deemed to have exercised his stock purchase right on each Purchase Date to the extent of his unused payroll deductions under the Plan and to the extent the issuance of Stock to such participant upon such exercise is lawful. (b) Delivery of Shares to Custodian. As soon as practicable after each Purchase Date, the Company shall deliver to a custodian selected by the Committee one or more certificates representing (or shall otherwise cause to be credited to the account of such custodian) the aggregate number of whole shares of Stock with respect to which stock purchase rights were exercised on such Purchase Date of all of the participating employees hereunder. Such custodian shall keep accurate records of the beneficial interests of each participant in such shares by means of participant accounts under the Plan, and shall provide each participant with periodic statements with respect thereto as may be directed by the Committee. The Committee may require that shares be retained with such custodian, or other designated broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. If the Company is required to obtain from any U.S. commission or agency authority to issue any such shares, the Company shall seek to obtain such authority. Inability of the Company to obtain from any commission or agency (whether U.S. or foreign) authority which counsel for the Company deems necessary for the lawful issuance of any such shares shall relieve the Company from liability to any participant in the Plan except to return to him the amount of his payroll deductions under the Plan which would have otherwise been used upon exercise of the relevant stock purchase right. (c) Withdrawal of Shares. A participant may, at any time, in such form and manner as established by the custodian, direct the custodian to deliver to the participant all or part of the shares held by the custodian in his account or to sell such shares and deliver to the participant the proceeds therefrom, less applicable expenses. (d) Dividends. With respect to an individual’s Stock held by the custodian pursuant to subparagraph 8(b), the participant may request the custodian to reinvest in additional shares of Stock for such participant’s account any cash dividends received by the custodian and attributable to such Stock. Otherwise, the participant will receive dividends in cash. The custodian shall, in accordance with procedures adopted by the custodian, facilitate the participant’s voting rights attributable to shares held in participant’s account. B-3 HALLIBURTON ❘ 2021 Proxy StatementAppendix B 9. Withdrawal from the Plan. (a) General Statement. Any participant may withdraw in whole from the Plan prior to the Purchase Date relating to a particular Purchase Period. Partial withdrawals shall not be permitted. A participant who wishes to withdraw from the Plan must timely deliver to the Company a notice of withdrawal in a form prepared by the Company during the Purchase Period at a time and in a manner prescribed by the Committee. The Company shall, as soon as administratively practicable, following the receipt of the notice of withdrawal, refund to the participant the amount of his payroll deductions under the Plan which have not yet been used to purchase shares upon the exercise of his stock purchase rights; and thereupon, automatically and without any further act on his part, his payroll deduction authorization and his interest in unexercised stock purchase rights under the Plan shall terminate in full. (b) Eligibility Following Withdrawal. A participant who withdraws from the Plan shall be eligible to participate again in the Plan upon expiration of the Purchase Period during which he withdrew (provided that he is otherwise an Eligible Employee at such later time). 10. Termination of Eligible Employment. If the employment of a participant with the Company terminates for any reason whatsoever or the participant ceases to be an Eligible Employee, then his participation in the Plan automatically and without any act on his part shall terminate as of the date of such termination of employment or change in status. The Company shall, as soon as administratively practicable, refund to him (or his estate or personal representative, as the case may be) the amount of his payroll deductions under the Plan which have not yet been used to purchase Stock, and thereupon his interest in unexercised stock purchase rights under the Plan shall terminate in full. 11. Restriction Upon Assignment of Stock Purchase Rights. A stock purchase right granted under the Plan shall not be transferable. Each stock purchase right shall be exercisable, during a participant’s lifetime, only by the participant to whom granted. The Company shall not recognize and shall be under no duty to recognize any assignment or purported assignment by an employee of any of his stock purchase rights under the Plan. 12. No Shareholder Rights or Privileges Until Exercise of Stock Purchase Rights. With respect to shares of Stock subject to a stock purchase right, a participant shall not be deemed to be a shareholder, and he shall not have any of the rights or privileges of a shareholder, until such stock purchase right has been exercised and shares delivered pursuant to subparagraph 8(b). 13. Changes in Stock; Adjustments. Whenever any change is made in the Stock, by reason of a stock dividend or by reason of subdivision, stock split, reverse stock split, recapitalization, reorganization, combination, reclassification of shares or other similar change, appropriate action will be taken by the Committee to adjust any or all of (i) the number and type of shares subject to the Plan, (ii) the number and type of shares subject to outstanding stock purchase rights and (iii) the Purchase Price with respect to any of the foregoing. In the event of a Corporate Change, unless a successor corporation assumes or substitutes new stock purchase rights (within the meaning of Section 424(a) of the Code) for all stock purchase rights then outstanding, (i) the Purchase Date for all stock purchase rights then outstanding shall be accelerated to a date fixed by the Committee prior to the effective date of the Corporate Change and (ii) upon such effective date any unexercised stock purchase rights shall expire and the Company promptly shall refund to each participant the amount of such participant’s payroll deductions under the Plan which have not yet been used to purchase Stock. 14. Use of Funds; No Interest Paid. All funds received or held by the Company under the Plan shall be included in the general funds of the Company free of any trust or other restriction, and may be used for any corporate purpose. No interest shall be paid to any participant on amounts credited to his account. 15. Term of the Plan. The Plan was originally effective July 1, 2002. This amended and restated Plan shall be effective as of the date it was amended and restated, provided it is approved by stockholders. If not sooner terminated under the provisions of paragraph 16, the Plan shall automatically terminate upon and no further payroll deductions shall be made and no further stock purchase rights shall be granted after the date all of the shares of Stock reserved for issuance under the Plan and the Sub-Plan, as increased and/or adjusted from time to time, have been sold under the Plan and the Sub-Plan. If on the final Purchase Date there is an insufficient number of shares of Stock available for all purchases under stock purchase rights exercised on such date, the number of available shares shall be prorated among the then purchasing participants in an equitable manner as determined by the Committee based on their deductions for such Purchase Period and all remaining amounts shall be returned to the participants. 16. Amendment or Termination of the Plan. The Board in its discretion may terminate the Plan at any time with respect to any Stock for which stock purchase rights have not theretofore been granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided, however, that, except as provided below, no change in any stock purchase right theretofore granted may be made that would materially impair the stock purchase rights of the participant without the consent of such participant. In the event the Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to (i) altering the Purchase Price for any Purchase Period including a Purchase Period underway at the time of the change in Purchase Price; and (ii) shortening any Purchase Period so that Purchase B-4 HALLIBURTON ❘ 2021 Proxy Statementwww.halliburton.comPeriod ends on a new Purchase Date, including a Purchase Period underway at the time of the Board action. 17. Securities Laws. The Company shall not be obligated to issue any Stock pursuant to any stock purchase right granted under the Plan at any time when the offer, issuance or sale of shares covered by such stock purchase right has not been registered under the Securities Act of 1933, as amended, or does not comply with such other state, federal or foreign laws, rules or regulations, or the requirements of any stock exchange upon which the Stock may then be listed, as the Company or the Committee deems applicable and, in the opinion of legal counsel for the Company, there is no exemption from the requirements of such laws, rules, regulations or requirements available for the offer, issuance and sale of such shares. Further, all Stock acquired pursuant to the Plan shall be subject to the Company’s policies concerning compliance with securities laws and regulations, as such policies may be amended from time to time. The terms and conditions of stock purchase rights granted hereunder to, and the purchase of shares by, persons subject to Section 16 of the Exchange Act shall comply with any applicable provisions of Rule 16b-3. As to such persons, the Plan shall be deemed to contain, and such stock purchase rights shall contain, and the shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required from time to time by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 18. No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action that is deemed by the Company or such Subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any stock purchase right granted under the Plan. No employee, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such action. 19. Miscellaneous Provisions. (a) Number and Gender. Wherever appropriate herein, words used in the singular shall be considered to include the plural and words used in the plural shall be considered to include the singular. The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender. (b) Headings. The headings and subheadings in the Plan are included solely for convenience, and if there is any conflict between such headings or subheadings and the text of the Plan, the text shall control. (c) Not a Contract of Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract between the Company or any Participating Company and any person or to be consideration for the employment of any person. Participation in the Plan at any given time shall not be deemed to create the right to participate in the Plan, or any other arrangement permitting an employee of the Company or any Appendix B Participating Company to purchase Stock at a discount, in the future. The stock purchase rights and obligations under any participant’s terms of employment with the Company or any Participating Company shall not be affected by participation in the Plan. Nothing herein contained shall be deemed to give any person the right to be retained in the employ of the Company or any Participating Company or to restrict the right of the Company or any Participating Company to discharge any person at any time, nor shall the Plan be deemed to give the Company or any Participating Company the right to require any person to remain in the employ of the Company or such Participating Company or to restrict any person’s right to terminate his employment at any time. The Plan shall not afford any participant any additional right to compensation as a result of the termination of such participant’s employment for any reason whatsoever. (d) Compliance with Applicable Laws. The Company’s obligation to offer, issue, sell or deliver Stock under the Plan is at all times subject to all approvals of and compliance with any governmental authorities (whether domestic or foreign) required in connection with the authorization, offer, issuance, sale or delivery of Stock as well as all federal, state, local and foreign laws. Without limiting the scope of the preceding sentence, and notwithstanding any other provision in the Plan, the Company shall not be obligated to grant stock purchase rights or to offer, issue, sell or deliver Stock under the Plan to any employee who is a citizen or resident of a jurisdiction the laws of which, for reasons of its public policy or otherwise, prohibit the Company from taking any such action with respect to such employee. (e) Severability. If any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions hereof; instead, each provision shall be fully severable and the Plan shall be construed and enforced as if said illegal or invalid provision had never been included herein. (f) Governing Law. All provisions of the Plan shall be construed in accordance with the laws of Delaware except to the extent preempted by federal law. B-5 HALLIBURTON ❘ 2021 Proxy Statement☒ ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 OR Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission File Number 001-03492 HALLIBURTON COMPANY (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 75-2677995 (I.R.S. Employer Identification No.) 3000 North Sam Houston Parkway East Houston, Texas 77032 (Address of Principal Executive Offices) Telephone Number – Area Code (281) 871-2699 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par value $2.50 per share Trading Symbol HAL Name of each exchange on which registered New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large Accelerated Filer Non-accelerated Filer Smaller Reporting Company ☒ ☐ ☐ Accelerated Filer Emerging Growth Company ☐ ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☒ Yes ☐ No ☒ The aggregate market value of Halliburton Company Common Stock held by non-affiliates on June 30, 2020, determined using the per share closing price on the New York Stock Exchange Composite tape of $12.98 on that date, was approximately $10.1 billion. As of January 29, 2021, there were 888,632,775 shares of Halliburton Company Common Stock, $2.50 par value per share, outstanding. Portions of the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) are incorporated by reference into Part III of this report. HALLIBURTON COMPANY Index to Form 10-K For the Year Ended December 31, 2020 Business Risk Factors Unresolved Staff Comments Properties Legal Proceedings Mine Safety Disclosures Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management’s Discussion and Analysis of Financial Condition and Results of Operations Executive Overview Liquidity and Capital Resources Business Environment and Results of Operations Results of Operations in 2020 Compared to 2019 Results of Operations in 2019 Compared to 2018 Critical Accounting Estimates Off Balance Sheet Arrangements Financial Instrument Market Risk Environmental Matters Forward-Looking Information Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information Directors, Executive Officers, and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners Security Ownership of Management Changes in Control Securities Authorized for Issuance Under Equity Compensation Plans Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services Exhibits Form 10-K Summary PART I Item 1. Item 1(a). Item 1(b). Item 2. Item 3. Item 4. PART II Item 5. Item 6. Item 7. Item 7(a). Item 8. Item 9. Item 9(a). Item 9(b). PART III Item 10. Item 11. Item 12(a). Item 12(b). Item 12(c). Item 12(d). Item 13. Item 14. PART IV Item 15. Item 16. SIGNATURES PAGE 1 8 17 17 17 17 18 19 20 20 22 24 27 29 30 32 32 33 33 34 35 69 69 69 70 70 70 70 70 70 70 70 71 77 78 i Item 1 | Business PART I Item 1. Business. Description of business Halliburton Company is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. Inspired by the past and leading into the future, what started with a single product from a single location is now a global enterprise. We are proud of our over 100 years of operation, innovation, collaboration, and execution. Halliburton has fostered a culture of unparalleled service to the world's major, national, and independent oil and gas producers. With approximately 40,000 employees, representing 130 nationalities in more than 70 countries, we help our customers maximize asset value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. 2020 Highlights - Safety and service quality: We achieved exceptional safety and service quality performance. We delivered historic bests across our business. Our total recordable incident rate and non-productive time improved by over 20% for the second year in a row. This is a result of our employees’ continued commitment to safety and process execution. - Financial: We delivered swift and aggressive cost reduction actions in response to a decrease in global demand for our products and services. We systematically rationalized our operations to adjust to market activity levels, including through reducing equipment and personnel, restructuring our real estate holdings, and improving our service delivery platform, which contributed to improved margins by year-end 2020. - Technology: We continued to innovate, launching several new products and services, and delivered best in class performance across a spectrum of digital technologies. - Sustainable energy: We launched Halliburton Labs, a collaborative environment where entrepreneurs, academics, investors, and industrial labs come together to advance cleaner, affordable energy. Also, we committed to setting science-based targets to reduce our greenhouse gas emissions. 2021 Focus - International: We are stronger technically, geographically, and organizationally; we see an unfolding activity recovery and are well positioned to drive profitable growth internationally. - North America: As operators increase their activity levels to achieve maintenance level production, the operating leverage we have created in North America should allow us to increase our operating profits and cash flows. - Digital: We are positioned to accelerate the deployment and integration of digitally enabled technologies, both internally and for our customers. - Capital efficiency: We plan to advance technologies and make strategic choices that lower our capital expenditure profile. - Sustainable energy: We will play an active role in advancing cleaner, affordable energy solutions. Operating segments We operate under two divisions, which form the basis for the two operating segments we report, the Completion and Production segment and the Drilling and Evaluation segment. Completion and Production delivers cementing, stimulation, intervention, pressure control, artificial lift, and completion products and services. The segment consists of the following product service lines: - Production Enhancement: includes stimulation services and sand control services. Stimulation services optimize oil and natural gas reservoir production through a variety of pressure pumping services, and chemical processes, commonly known as hydraulic fracturing and acidizing. Sand control services include fluid and chemical systems for the prevention of formation sand production. - Cementing: involves bonding the well and well casing while isolating fluid zones and maximizing wellbore stability. Our cementing product service line also provides casing equipment. - Completion Tools: provides downhole solutions and services to our customers to complete their wells, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, multilateral systems, and service tools. - Production Solutions: provides customized well intervention solutions to increase well performance, which includes coiled tubing, hydraulic workover units, downhole tools, pumping services, and nitrogen services. HAL 2020 FORM 10-K | 1 Item 1 | Business - Artificial Lift: provides services to maximize reservoir and wellbore recovery by applying lifting technology, intelligent field management solutions, and related services throughout the life of the well, including electrical submersible pumps. - Pipeline & Process Services: provides a complete range of pre-commissioning, commissioning, maintenance, and decommissioning services to the onshore and offshore pipeline and process plant construction commissioning and maintenance industries. We have made a strategic decision to market this business for sale. Drilling and Evaluation provides field and reservoir modeling, drilling, fluids and specialty chemicals, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of the following product service lines: - Baroid: provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services for oil and natural gas drilling, completion, and workover operations. It also provides customized specialty oilfield completion, production, and downstream water and process treatment chemicals and services. - Sperry Drilling: provides drilling systems and services that offer directional control for precise wellbore placement while providing important measurements about the characteristics of the drill string and geological formations while drilling wells. These services include directional and horizontal drilling, measurement-while-drilling, logging-while- drilling, surface data logging, and rig site information systems. - Wireline and Perforating: provides open-hole logging services that supply information on formation evaluation and reservoir fluid analysis, including formation lithology, rock properties, and reservoir fluid properties. Also offered are cased-hole and slickline services, including perforating, pipe recovery services, through-casing formation evaluation and reservoir monitoring, casing and cement integrity measurements, and well intervention services. - Drill Bits and Services: provides roller cone rock bits, fixed cutter bits, hole enlargement and related downhole tools and services used in drilling oil and natural gas wells. In addition, coring equipment and services are provided to acquire cores of the formation drilled for evaluation. - Landmark Software and Services: provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management for the upstream oil and natural gas industry. - Testing and Subsea: provides acquisition and analysis of dynamic reservoir information and reservoir optimization solutions to the oil and natural gas industry through a broad portfolio of test tools, data acquisition services, fluid sampling, surface well testing, subsea safety systems, and underbalanced applications. - Halliburton Project Management: provides integrated solutions to our customers by leveraging the full line of our oilfield services, products, and technologies to solve customer challenges throughout the oilfield lifecycle, including project management and integrated asset management. The following charts depict the company's revenue split between its two operating segments for the years ended December 31, 2020 and 2019. See Note 3 to the consolidated financial statements for further financial information related to each of our business segments. HAL 2020 FORM 10-K | 2 2020 Revenue by DivisionCompletionandProduction:54%Drilling andEvaluation:46%2019 Revenue by DivisionCompletionandProduction:63%Drilling andEvaluation:37%Item 1 | Business Business strategy Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to: - deliver profitable growth in our international business; - drive strategic changes that maximize cash flows in our leaner North America business; - accelerate the deployment and integration of our digital technologies, both internally and with our customers; - improve capital efficiency by advancing our technologies and making strategic choices that lower our capital expenditure profile; and - actively participate in advancing a sustainable energy future. For further discussion on our business strategies, see "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Overview." Markets and competition We are one of the world’s largest diversified energy services companies. Our services and products are sold in highly competitive markets throughout the world. Competitive factors impacting sales of our services and products include: price; service delivery; health, safety and environmental standards and practices; service quality; global talent retention; understanding the geological characteristics of the hydrocarbon reservoir; product quality; warranty; and technical proficiency. We conduct business worldwide in more than 70 countries. The business operations of our divisions are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. In 2020, 2019, and 2018, based on the location of services provided and products sold, 38%, 51%, and 58%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our consolidated revenue during these periods. See "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information about our geographic operations. Because the markets for our services and products are vast and cross numerous geographic lines, it is not practicable to provide a meaningful estimate of the total number of our competitors. The industries we serve are highly competitive, and we have many substantial competitors. Most of our services and products are marketed through our service and sales organizations. The following charts depict the company's revenue split between its four primary geographic regions for the years ended December 31, 2020 and 2019. Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, health or similar issues, sanctions, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that loss of operations in any one country, other than the United States, would be materially adverse to our business, consolidated results of operations, or consolidated financial condition. HAL 2020 FORM 10-K | 3 2020 Revenue by RegionNorth America40%Latin America12%Europe/Africa/CIS19%MiddleEast/Asia 29%2019 Revenue by RegionNorth America:53%Latin America: 10%Europe/Africa/CIS:15%MiddleEast/Asia: 22%Item 1 | Business Information regarding our exposure to foreign currency fluctuations, risk concentration and financial instruments used to minimize risk is included in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and in Note 15 to the consolidated financial statements. Customers Our revenue during the past three years was derived from the sale of services and products to the energy industry. No single customer represented more than 10% of our consolidated revenue in any period presented. Raw materials Raw materials essential to our business are normally readily available. Market conditions can trigger constraints in the supply of certain raw materials, such as proppants (primarily sand), hydrochloric acid, and gels. We are always seeking ways to ensure the availability of resources and manage raw materials costs. Our procurement department uses our size and buying power to enhance our access to key materials at competitive prices. Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes. We are also licensed to utilize technology covered by patents owned by others, and we license others to utilize technology covered by our patents. We do not consider any particular patent to be material to our business operations. Seasonality Weather and natural phenomena can temporarily affect the performance of our services, but the widespread geographical locations of our operations mitigate those effects. Examples of how weather can impact our business include: - the severity and duration of the winter in North America can have a significant impact on natural gas storage levels and drilling activity; - the timing and duration of the spring thaw in Canada directly affects activity levels due to road restrictions; - typhoons and hurricanes can disrupt coastal and offshore operations; and - severe weather during the winter normally results in reduced activity levels in the North Sea and Russia. Additionally, customer spending patterns for completion tools typically result in higher activity in the fourth quarter of the year. Conversely, customer spending patterns and budget constraints in North America may lead to lower demand for various other services and products in the second half of the year. Our workforce We collaborate as a team to execute for each other, our customers, and our shareholders. At December 31, 2020, we employed approximately 40,000 people worldwide compared to approximately 55,000 at December 31, 2019. At December 31, 2020, approximately 17% of our employees were subject to collective bargaining agreements. We have operations in over 70 countries. Based upon the geographic diversification of these employees, we do not believe any risk of loss from employee strikes or other collective actions would be material to the conduct of our operations taken as a whole. Diversity, inclusion and career development The diversity of our global workforce stimulates creativity and innovation as we use our collective talents to develop unique solutions to address the world's energy challenges. We create a positive work environment by maintaining a strong culture of diversity and inclusion, supported by our Code of Business Conduct and employment practices. We remain one of the most diverse companies in the world with over 130 nationalities represented, with a focus on having a local workforce in the countries in which we do business. We have made significant progress on increasing our gender diversity in our science, technology, engineering, and mathematics (STEM) focused job roles, which are pipelines for operational leadership. The total population of women in STEM-based roles is 15% today. We have doubled our hiring of women in STEM-based job roles over the last ten years and intend to continue this effort. HAL 2020 FORM 10-K | 4 Item 1 | Business We are committed to providing an inclusive workplace and career development opportunities to attract and retain talented employees. An important key to having engaged employees is offering best-in-class training and career development programs to enhance opportunities for professional growth. We manage employee performance and engagement through frequent Check-ins between employees and managers. These discussions focus on status of work, priorities, performance, feedback, and development. All employees are part of the Check-in process, which is the cornerstone of our performance management and career development framework. For employees who have been identified as having top leadership potential, Halliburton offers a four-tiered Business Leadership Development program designed to provide additional skills, knowledge, and experience. Compensation, benefits and well-being Halliburton’s compensation programs are integrated with our overall business strategies and management processes to incentivize performance, maximize returns, and build shareholder value. We work with consultants to benchmark our compensation and benefits programs to help us offer competitive remuneration packages to attract and retain high-performing executives. We also offer comprehensive benefits and competitive salaries to attract qualified candidates to meet the dynamic needs of employees and their families, in addition to retirement plans and health and wellness benefits. Safety Our safety vision expresses our dedication to setting the highest standards, embracing all challenges, and making no compromises in fulfilling our commitment to our employees to get them home safely at the end of the day. For the years ended December 31, 2020 and December 31, 2019, our recordable incident rate was 0.20% and 0.29%, respectively, and non- productive time was 0.31% and 0.39%, respectively. Government regulation We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For further information related to environmental matters and regulation, see Note 10 to the consolidated financial statements and "Item 1(a). Risk Factors.” Hydraulic fracturing Hydraulic fracturing is a process that creates fractures extending from the well bore into the rock formation to enable natural gas or oil to move more easily from the rock pores to a production conduit. A significant portion of our Completion and Production segment provides hydraulic fracturing services to customers developing shale natural gas and shale oil. From time to time, questions arise about the scope of our operations in the shale natural gas and shale oil sectors, and the extent to which these operations may affect human health and the environment. At the direction of our customer, we design and generally implement a hydraulic fracturing operation to 'stimulate' the well's production, once the well has been drilled, cased, and cemented. Our customer is generally responsible for providing the base fluid (usually water) used in the hydraulic fracturing of a well. We frequently supply the proppant (primarily sand) and at least a portion of the additives used in the overall fracturing fluid mixture. In addition, we mix the additives and proppant with the base fluid and pump the mixture down the wellbore to create the desired fractures in the target formation. The customer is responsible for disposing and/or recycling for further use any materials that are subsequently produced or pumped out of the well, including flowback fluids and produced water. As part of the process of constructing the well, the customer will take a number of steps designed to protect drinking water resources. In particular, the casing and cementing of the well are designed to provide 'zonal isolation' so that the fluids pumped down the wellbore and the oil and natural gas and other materials that are subsequently pumped out of the well will not come into contact with shallow aquifers or other shallow formations through which those materials could potentially migrate to freshwater aquifers or the surface. The potential environmental impacts of hydraulic fracturing have been studied by numerous government entities and others. In 2004, the United States Environmental Protection Agency (EPA) conducted an extensive study of hydraulic fracturing practices, focusing on coalbed methane wells, and their potential effect on underground sources of drinking water. The EPA’s study concluded that hydraulic fracturing of coalbed methane wells poses little or no threat to underground sources of drinking water. In December 2016, the EPA released a final report, “Hydraulic Fracturing for Oil and Gas: Impacts from the Hydraulic Fracturing Water Cycle on Drinking Water Resources in the United States” representing the culmination of a six- year study requested by Congress. While the EPA report noted a potential for some impact to drinking water sources caused by hydraulic fracturing, the agency confirmed the overall incidence of impacts is low. Moreover, a number of the areas of potential impact identified in the report involve activities for which we are not generally responsible, such as potential impacts associated with withdrawals of surface water for use as a base fluid and management of wastewater. HAL 2020 FORM 10-K | 5 Item 1 | Business We have proactively developed processes to provide our customers with the chemical constituents of our hydraulic fracturing fluids to enable our customers to comply with state laws as well as voluntary standards established by the Chemical Disclosure Registry, www.fracfocus.org. We have invested considerable resources in developing hydraulic fracturing technologies, in both the equipment and chemistry portions of our business, which offer our customers a variety of environment-friendly options related to the use of hydraulic fracturing fluid additives and other aspects of our hydraulic fracturing operations. We created a hydraulic fracturing fluid system comprised of materials sourced entirely from the food industry. In addition, we have engineered a process that uses ultraviolet light to control the growth of bacteria in hydraulic fracturing fluids, allowing customers to minimize the use of chemical biocides. We are committed to the continued development of innovative chemical and mechanical technologies that allow for more economical and environment-friendly development of the world’s oil and natural gas reserves, and that reduce noise while complying with Tier 4 lower emission legislation. In evaluating any environmental risks that may be associated with our hydraulic fracturing services, it is helpful to understand the role that we play in the development of shale natural gas and shale oil. Our principal task generally is to manage the process of injecting fracturing fluids into the borehole to 'stimulate' the well. Thus, based on the provisions in our contracts and applicable law, the primary environmental risks we face are potential pre-injection spills or releases of stored fracturing fluids and potential spills or releases of fuel or other fluids associated with pumps, blenders, conveyors, or other above-ground equipment used in the hydraulic fracturing process. Although possible concerns have been raised about hydraulic fracturing, the circumstances described above have helped to mitigate those concerns. To date, we have not been obligated to compensate any indemnified party for any environmental liability arising directly from hydraulic fracturing, although there can be no assurance that such obligations or liabilities will not arise in the future. For further information on risks related to hydraulic fracturing, see "Item 1(a). Risk Factors.” Working capital We fund our business operations through a combination of available cash and equivalents, short-term investments, and cash flow generated from operations. In addition, our revolving credit facility is available for additional working capital needs. Web site access - www.halliburton.com Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished to the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available at www.halliburton.com soon thereafter. The SEC website www.sec.gov contains our reports, proxy and information statements and our other SEC filings. Our Code of Business Conduct, which applies to all our employees and Directors and serves as a code of ethics for our principal executive officer, principal financial officer, principal accounting officer, and other persons performing similar functions, can be found at www.halliburton.com. Any amendments to our Code of Business Conduct or any waivers from provisions of our Code of Business Conduct granted to the specified officers above are also disclosed on our web site within four business days after the date of any amendment or waiver pertaining to these officers. There have been no waivers from provisions of our Code of Business Conduct for the years 2020, 2019, or 2018. Except to the extent expressly stated otherwise, information contained on or accessible from our web site or any other web site is not incorporated by reference into this annual report on Form 10-K and should not be considered part of this report. Executive Officers of the Registrant The following table indicates the names and ages of the executive officers of Halliburton Company as of February 5, 2021, including all offices and positions held by each in the past five years: Name and Age Offices Held and Term of Office Anne L. Beaty (Age 64) Van H. Beckwith (Age 55) Senior Vice President, Finance of Halliburton Company, since March 2017 Senior Vice President, Internal Assurance Services of Halliburton Company, November 2013 to March 2017 Executive Vice President, Secretary and Chief Legal Officer of Halliburton Company, since December 2020 Senior Vice President and General Counsel, January 2020 to December 2020 Partner, Baker Botts L.L.P., January 1999 to December 2019 HAL 2020 FORM 10-K | 6 Item 1 | Business Eric J. Carre (Age 54) Executive Vice President, Global Business Lines of Halliburton Company, since May 2016 Senior Vice President, Drilling and Evaluation Division of Halliburton Company, June 2011 to April 2016 Charles E. Geer, Jr. (Age 50) Senior Vice President and Chief Accounting Officer of Halliburton Company, since December 2019 Vice President and Corporate Controller of Halliburton Company, January 2015 to December 2019 Myrtle L. Jones (Age 61) Lance Loeffler (Age 43) Timothy M. McKeon (Age 48) Jeffrey A. Miller (Age 57) Lawrence J. Pope (Age 52) Joe D. Rainey (Age 64) Mark J. Richard (Age 59) Senior Vice President, Tax of Halliburton Company, since March 2013 Executive Vice President and Chief Financial Officer of Halliburton Company, since November 2018 Vice President of Investor Relations of Halliburton Company, April 2016 to November 2018 Vice President of Corporate Development of Halliburton Company, August 2014 to April 2016 Vice President and Treasurer of Halliburton Company, since January 2014 Chairman of the Board, President and Chief Executive Officer of Halliburton Company, since January 2019 Member of the Board of Directors, President and Chief Executive Officer of Halliburton Company, June 2017 to December 2018 Member of the Board of Directors and President of Halliburton Company, August 2014 to May 2017 Executive Vice President of Administration and Chief Human Resources Officer of Halliburton Company, since January 2008 President, Eastern Hemisphere of Halliburton Company, since January 2011 President, Western Hemisphere of Halliburton Company, since February 2019 Senior Vice President, Northern U.S. Region of Halliburton Company, August 2018 to January 2019 Senior Vice President, Business Development and Marketing of Halliburton Company, November 2015 to July 2018 There are no family relationships between the executive officers of the registrant or between any director and any executive officer of the registrant. HAL 2020 FORM 10-K | 7 Item 1(a) | Risk Factors Item 1(a). Risk Factors. When considering an investment in Halliburton Company, all of the risk factors described below and other information included and incorporated by reference in this annual report should be carefully considered. Any of these risk factors could have a significant or material adverse effect on our business, results of operations, financial condition, or cash flows. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also adversely affect our business, financial condition, results of operations, or cash flows. Industry Environment Related Trends in oil and natural gas prices affect the level of exploration, development, and production activity of our customers and the demand for our services and products, which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Demand for our services and products is particularly sensitive to the level of exploration, development and production activity of, and the corresponding capital spending by, oil and natural gas companies. The level of exploration, development, and production activity is directly affected by trends in oil and natural gas prices, which historically have been volatile and are likely to continue to be volatile. Prices for oil and natural gas are subject to large fluctuations in response to relatively minor changes in the supply of and demand for oil and natural gas, market uncertainty, and a variety of other economic factors that are beyond our control. Given the long-term nature of many large-scale development projects, even the perception of longer-term lower oil and natural gas prices by oil and natural gas companies can cause them to reduce or defer major expenditures. Any prolonged reductions of commodity prices or expectations of such reductions could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition, and could result in asset impairments and severance costs. Factors affecting the prices of oil and natural gas include: - the level of supply and demand for oil and natural gas; - the ability or willingness of the Organization of Petroleum Exporting Countries and the expanded alliance collectively known as OPEC+ to set and maintain oil production levels; - the level of oil production in the U.S. and by other non-OPEC+ countries; - oil refining capacity and shifts in end-customer preferences toward fuel efficiency and the use of natural gas; - the cost of, and constraints associated with, producing and delivering oil and natural gas; - governmental regulations, including the policies of governments regarding the exploration for and production and development of their oil and natural gas reserves; - weather conditions, natural disasters, and health or similar issues, such as pandemics or epidemics; - worldwide political, military, and economic conditions; and - increased demand for alternative energy and electric vehicles, including government initiatives to promote the use of renewable energy sources and public sentiment around alternatives to oil and gas. Our business is dependent on capital spending by our customers, and reductions in capital spending could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Our business is directly affected by changes in capital expenditures by our customers, and reductions in their capital spending could reduce demand for our services and products and have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Some of the items that may impact our customer's capital spending include: - oil and natural gas prices, including volatility of oil and natural gas prices and expectations regarding future prices; - the inability of our customers to access capital on economically advantageous terms, which may be impacted by, among other things, a decrease of investors' interest in hydrocarbon producers because of environmental and sustainability initiatives; - changes in customers' capital allocation, leading to less focus on production growth; - restrictions on our customers' ability to get their produced oil and natural gas to market due to infrastructure limitations; - the consolidation of our customers; - customer personnel changes; and - adverse developments in the business or operations of our customers, including write-downs of oil and natural gas reserves and borrowing base reductions under customers' credit facilities. Any significant reduction in commodity prices or a change in our customers’ expectations of commodity prices, economic growth or supply and demand for oil and natural gas may result in capital budget reductions in the future. Any substantial and unexpected drop in commodity prices in the future, even if the drop is relatively short-lived, could similarly HAL 2020 FORM 10-K | 8 Item 1(a) | Risk Factors affect our customers’ expectations and capital spending, which could result in a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Liabilities arising out of our products and services could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Events can occur at sites where our products and equipment are installed or where we conduct our operations or provide our services, or at chemical blending or manufacturing facilities, including well blowouts and equipment or materials failures, which could result in explosions, fires, personal injuries, property damage (including surface and subsurface damage), pollution, and potential legal responsibility. For example, a well where we provided services in Indonesian waters experienced a well control issue in July 2019, which resulted in hydrocarbons being released into the water surrounding the well site. Generally, we rely on liability insurance coverage and on contractual indemnities, releases and limitations of liability with our customers to protect us from potential liability related to such occurrences, and, although no claim has been asserted against us, we expect to rely on these with respect to the event in Indonesia. However, we do not have these contractual provisions in all contracts, and even where we do, it is possible that the respective customer or insurer could seek to avoid or be financially unable to meet its obligations, or a court may decline to enforce such provisions. Damages that are not indemnified or released could greatly exceed available insurance coverage and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. 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 Canada, the Gulf of Mexico, Russia and the North Sea. Many 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 oil and natural gas during unseasonably warm winters; and - loss of productivity. 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. If we are not able to design, develop and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, and technology trends, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced. The market for our services and products is characterized by continual technological developments to provide better and more reliable performance and services. If we are not able to design, develop, and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, and technology trends, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced. Likewise, if our proprietary technologies, equipment, facilities, or work processes become obsolete, we may no longer be competitive, and our business and consolidated results of operations could be materially and adversely affected. We sometimes provide integrated project management services in the form of long-term, fixed price contracts that may require us to assume additional risks associated with cost over-runs, operating cost inflation, labor availability and productivity, supplier and contractor pricing and performance, and potential claims for liquidated damages. We sometimes provide integrated project management services outside our normal discrete business in the form of long-term, fixed price contracts. Some of these contracts are required by our customers, primarily national oil companies (NOCs). These services include acting as project managers as well as service providers and may require us to assume additional risks associated with cost over-runs. These customers may provide us with inaccurate information in relation to their reserves, HAL 2020 FORM 10-K | 9 Item 1(a) | Risk Factors which is a subjective process that involves location and volume estimation, that may result in cost over-runs, delays, and project losses. In addition, NOCs often operate in countries with unsettled political conditions, war, civil unrest, or other types of community issues. These issues may also result in cost over-runs, delays, and project losses. Providing services on an integrated basis may also require us to assume additional risks associated with operating cost inflation, labor availability and productivity, supplier pricing and performance, and potential claims for liquidated damages. We rely on third-party subcontractors and equipment providers to assist us with the completion of these types of contracts. To the extent that we cannot engage subcontractors or acquire equipment or materials in a timely manner and on reasonable terms, our ability to complete a project in accordance with stated deadlines or at a profit may be impaired. If the amount we are required to pay for these goods and services exceeds the amount we have estimated in bidding for fixed-price work, we could experience losses in the performance of these contracts. These delays and additional costs may be substantial, and we may be required to compensate our customers for these delays. This may reduce the profit to be realized or result in a loss on a project. 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 (primarily sand), 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 ability to operate and our growth potential could be materially and adversely affected if we cannot attract, 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 attract, 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. Laws and Regulations Related Our operations outside the United States require us to comply with a number of United States and international regulations, violations of which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Our operations outside the United States require us to comply with a number of United States and international regulations. For example, our operations in countries outside the United States are subject to the United States Foreign Corrupt Practices Act (FCPA), which prohibits United States companies and their agents and employees from providing anything of value to a foreign official for the purposes of influencing any act or decision of these individuals in their official capacity to help obtain or retain business, direct business to any person or corporate entity, or obtain any unfair advantage. Our activities create the risk of unauthorized payments or offers of payments by our employees, agents, or joint venture partners that could be in violation of anti-corruption laws, even though some of these parties are not subject to our control. We have internal control policies and procedures and have implemented training and compliance programs for our employees and agents with respect to the FCPA. However, we cannot assure that our policies, procedures, and programs will always protect us from reckless or criminal acts committed by our employees or agents. We are also subject to the risks that our employees, joint venture partners and agents outside of the United States may fail to comply with other applicable laws. Allegations of violations of applicable anti-corruption laws have resulted and may in the future result in internal, independent, or government investigations. Violations of anti-corruption laws may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition. HAL 2020 FORM 10-K | 10 Item 1(a) | Risk Factors In addition, the shipment of goods, services, and technology across international borders subjects us to extensive trade laws and regulations. Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Moreover, many countries, including the United States, control the export and re-export of certain goods, services and technology and impose related export recordkeeping and reporting obligations. Governments may also impose economic sanctions against certain countries, persons and entities that may restrict or prohibit transactions involving such countries, persons, and entities, which may limit or prevent our conduct of business in certain jurisdictions. During 2014, the United States and European Union imposed sectoral sanctions directed at Russia’s oil and gas industry. Among other things, these sanctions restrict the provision of U.S. and EU goods, services, and technology in support of exploration or production for deep water, Arctic offshore, or shale projects that have the potential to produce oil in Russia. These sanctions resulted in our winding down and ending work on two projects in Russia in 2014, and have prevented us from pursuing certain other projects in Russia. In 2017 and 2018, the U.S. Government imposed additional sanctions against Russia, Russia’s oil and gas industry, and certain Russian companies. Our ability to engage in certain future projects in Russia or involving certain Russian customers is dependent upon whether or not our involvement in such projects is restricted under U.S. or EU sanctions laws and the extent to which any of our current or prospective operations in Russia or with certain Russian customers may be subject to those laws. Those laws may change from time to time, and any expansion of sanctions against Russia’s oil and gas industry could further hinder our ability to do business in Russia or with certain Russian customers, which could have a material adverse effect on our consolidated results of operations. The U.S. Government imposed sanctions against Venezuela that have effectively required us to discontinue our operations there. Consequently, in connection with us winding down our operations in Venezuela, we wrote down all of our remaining investment in Venezuela in 2020. As of December 29, 2020, we no longer have any employees in Venezuela, although we continue to maintain our local entity, facilities, and equipment in-country, as permitted under applicable law. We are not currently conducting any other operational activities in Venezuela. The laws and regulations concerning import activity, export recordkeeping and reporting, export control and economic sanctions are complex and constantly changing. These laws and regulations can cause delays in shipments and unscheduled operational downtime. Moreover, any failure to comply with applicable legal and regulatory trading obligations could result in criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from governmental contracts, seizure of shipments, and loss of import and export privileges. In addition, investigations by governmental authorities and legal, social, economic, and political issues in these countries could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition. Changes in, compliance with, or our failure to comply with laws in the countries in which we conduct business may negatively impact our ability to provide services in, make sales of equipment to, and transfer personnel or equipment among some of those countries and could have a material adverse effect on our business and consolidated results of operations. In the countries in which we conduct business, we are subject to multiple and, at times, inconsistent regulatory regimes, including those that govern our use of radioactive materials, explosives, and chemicals in the course of our operations. Various national and international regulatory regimes govern the shipment of these items. Many countries, but not all, impose special controls upon the export and import of radioactive materials, explosives, and chemicals. Our ability to do business is subject to maintaining required licenses and complying with these multiple regulatory requirements applicable to these special products. In addition, the various laws governing import and export of both products and technology apply to a wide range of services and products we offer. In turn, this can affect our employment practices of hiring people of different nationalities because these laws may prohibit or limit access to some products or technology by employees of various nationalities. Changes in, compliance with, or our failure to comply with these laws may negatively impact our ability to provide services in, make sales of equipment to, and transfer personnel or equipment among some of the countries in which we operate and could have a material adverse effect on our business and consolidated results of operations. The adoption of any future federal, state, or local laws or implementing regulations imposing reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Various federal and state legislative and regulatory initiatives, as well as actions in other countries, have been or could be undertaken that could result in additional requirements or restrictions being imposed on hydraulic fracturing operations. For example, the new United States presidential administration may seek to adopt federal regulations or urge federal laws that would impose additional regulatory requirements on or even prohibit hydraulic fracturing in some areas. Legislation and/or regulations have been adopted in many U.S. states that require additional disclosure regarding chemicals used in the hydraulic fracturing process but that generally include protections for proprietary information. Legislation, regulations, and/or policies have also been adopted at the state level that impose other types of requirements on hydraulic fracturing operations (such as limits on operations in the event of certain levels of seismic activity). Additional legislation and/or regulations have been HAL 2020 FORM 10-K | 11 Item 1(a) | Risk Factors adopted or are being considered at the state and local level that could impose further chemical disclosure or other regulatory requirements (such as prohibitions on hydraulic fracturing operations in certain areas) that could affect our operations. Four states (New York, Maryland, Vermont, and Washington) have banned the use of high volume hydraulic fracturing, Oregon has adopted a five-year moratorium, and Colorado has enacted legislation providing local governments with regulatory authority over hydraulic fracturing operations. Local jurisdictions in some states have adopted ordinances that restrict or in certain cases prohibit the use of hydraulic fracturing, although many of these ordinances have been challenged and some have been overturned. In addition, governmental authorities in various foreign countries where we have provided or may provide hydraulic fracturing services have imposed or are considering imposing various restrictions or conditions that may affect hydraulic fracturing operations. The adoption of any future federal, state, local, or foreign laws or regulations imposing reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Liability for cleanup costs, natural resource damages and other damages arising as a result of environmental laws and regulations could be substantial and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are subject to numerous environmental laws and regulations in the United States and the other countries where we do business. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with legal and regulatory requirements. From time to time, claims have been made against us under environmental laws and regulations. In the United States, environmental laws and regulations typically impose strict liability. Strict liability means that in some situations we could be exposed to liability for cleanup costs, natural resource damages, and other damages as a result of our conduct that was lawful at the time it occurred or the conduct of prior operators or other third parties. We are periodically notified of potential liabilities at federal and state superfund sites. These potential liabilities may arise from both historical Halliburton operations and the historical operations of companies that we have acquired. Our exposure at these sites may be materially impacted by unforeseen adverse developments both in the final remediation costs and with respect to the final allocation among the various parties involved at the sites. The relevant regulatory agency may bring suit against us for amounts in excess of what we have accrued and what we believe is our proportionate share of remediation costs at any superfund site. We also could be subject to third-party claims, including punitive damages, with respect to environmental matters for which we have been named as a potentially responsible party. Liability for damages arising as a result of environmental laws or related third-party claims could be substantial and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Failure on our part to comply with, and the costs of compliance with, applicable health, safety, and environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. In addition to the numerous environmental laws and regulations that apply to our operations, we are subject to a variety of laws and regulations in the United States and other countries relating to health and safety. Among those laws and regulations are those covering hazardous materials and requiring emission performance standards for facilities. For example, our well service operations routinely involve the handling of significant amounts of waste materials, some of which are classified as hazardous substances. We also store, transport, and use radioactive and explosive materials in certain of our operations. Applicable regulatory requirements include those concerning: - the containment and disposal of hazardous substances, oilfield waste, and other waste materials; - the importation and use of radioactive materials; - the use of underground storage tanks; - the use of underground injection wells; and - the protection of worker safety both onshore and offshore. These and other requirements generally are becoming increasingly strict. The failure to comply with the requirements, many of which may be applied retroactively, may result in: - administrative, civil, and criminal penalties; - revocation of permits to conduct business; and - corrective action orders, including orders to investigate and/or clean up contamination. Failure on our part to comply with applicable health, safety, and environmental laws and regulations or costs arising from regulatory compliance, including compliance with changes in or expansion of applicable regulatory requirements, could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Existing or future laws, regulations, treaties or international agreements related to greenhouse gases, climate change, and alternative energy sources could have a negative impact on our business and may result in additional HAL 2020 FORM 10-K | 12 Item 1(a) | Risk Factors compliance obligations that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Changes in environmental requirements related to greenhouse gases, climate change, and alternative energy sources may negatively impact demand for our services and products. For example, oil and natural gas exploration and production may decline as a result of environmental requirements, including land use policies responsive to environmental concerns. State, national, and international governments and agencies in areas in which we conduct business continue to evaluate, and in some instances adopt, climate-related legislation and other regulatory initiatives that would restrict emissions of greenhouse gases. The new United States presidential administration has issued Executive Orders seeking to adopt new regulations and policies to address climate change and to suspend, revise, or rescind prior agency actions that are identified as conflicting with the administration's climate policies. These include Executive Orders requiring a review of current federal lands leasing and permitting practices, as well as a temporary halt of new leasing of federal lands and offshore waters available for oil and gas exploration. The new presidential administration also announced that in February 2021, the United States will formally re-join the Paris Agreement. The Paris Agreement requires countries to review and “represent a progression” in their intended nationally determined contributions, which set greenhouse gases emission reduction goals, every five years. Though we are closely following developments in this area and changes in the regulatory landscape in the United States, we cannot predict how or when those challenges may ultimately impact our business. Because our business depends on the level of activity in the oil and natural gas industry, existing or future laws, regulations, treaties, or international agreements related to greenhouse gases and climate change, including incentives to conserve energy or use alternative energy sources, may reduce demand for oil and natural gas and could have a negative impact on our business. Likewise, such restrictions may result in additional compliance obligations with respect to the release, capture, sequestration, and use of carbon dioxide. The efforts we have taken, and may undertake in the future, to respond to these evolving or new regulations and to environmental initiatives of customers, investors, and others may increase our costs. These and other environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. The Company could be subject to changes in its tax rates, the adoption of new tax legislation, tax audits, or exposure to additional tax liabilities that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are subject to taxes in the U.S. and numerous jurisdictions where we operate and our subsidiaries are organized. Due to economic and political conditions, tax rates in the U.S. and other jurisdictions may be subject to significant change. In addition, our tax returns are subject to examination by the U.S. and other tax authorities and governmental bodies. We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of our provision for taxes. There can be no assurance as to the outcome of the examinations. An increase in tax rates, particularly in the U.S., changes in our ability to realize our deferred tax assets, or adverse outcomes resulting from examinations of our tax returns could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. Our operations are subject to political and economic instability and risk of government actions that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are exposed to risks inherent in doing business in each of the countries in which we operate. Our operations are subject to various risks unique to each country that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. With respect to any particular country, these risks may include: - political and economic instability, including: • • • civil unrest, acts of terrorism, war, and other armed conflict; inflation; and currency fluctuations, devaluations and conversion restrictions; and - governmental actions that may: • • • • • • result in expropriation and nationalization of our assets in that country; result in confiscatory taxation or other adverse tax policies; limit or disrupt markets or our customers and our operations, restrict payments, or limit the movement of funds; impose sanctions on our ability to conduct business with certain customers or persons; result in the deprivation of contract rights; and result in the inability to obtain or retain licenses required for operation. For example, due to the unsettled political conditions in many oil-producing countries, our operations, revenue, and profits are subject to the adverse consequences of war, terrorism, civil unrest, strikes, currency controls, and governmental actions. These, and other risks described above, could result in the loss of our personnel or assets, cause us to evacuate our personnel from certain countries, cause us to increase spending on security worldwide, cause us to cease operating in certain countries, disrupt financial and commercial markets, including the supply of and pricing for oil and natural gas, and generate HAL 2020 FORM 10-K | 13 Item 1(a) | Risk Factors greater political and economic instability in some of the geographic areas in which we operate. Areas where we operate that have significant risk include, but are not limited to: the Middle East, North Africa, Angola, Argentina, Azerbaijan, Brazil, Indonesia, Kazakhstan, Mexico, Mozambique, Nigeria, Papa New Guinea, and Russia. In addition, any possible reprisals as a consequence of military or other action, such as acts of terrorism in the United States or elsewhere, could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. General Risk Factors The COVID-19 pandemic and related economic repercussions have had a material adverse effect on our business, liquidity, consolidated results of operations, and consolidated financial condition, which effect could worsen. The COVID-19 pandemic and related economic repercussions have created significant volatility, uncertainty, and turmoil in the oil and gas industry. These events have directly affected our business and have exacerbated the potential negative impact from many of the risks our business is subject to, including those relating to our customers’ capital spending and trends in oil and natural gas prices. In addition, we are facing logistical challenges including border closures, travel restrictions, and an inability to commute to certain facilities and job sites, as we provide services and products to our customers. We are also experiencing inefficiencies surrounding stay-at-home orders and remote work arrangements. These logistical challenges and inefficiencies could increase if the pandemic worsens or persists. In the midst of the ongoing COVID-19 pandemic, in the first quarter of 2020 OPEC+ was initially unable to reach an agreement to continue to impose limits on the production of crude oil. Oil demand has significantly deteriorated as a result of the virus and corresponding preventative measures taken around the world to mitigate the spread of the virus. The convergence of these events created the unprecedented dual impact of a global oil demand decline coupled with the risk of a substantial increase in supply. While OPEC+ agreed in April 2020 to cut production, there is no assurance that the agreement, or any subsequent agreements, will continue or be observed by its parties, and downward pressure on commodity prices could continue for the foreseeable future. Given the nature and significance of the events described above, we are not able to enumerate all potential risks to our business; however, we believe that in addition to the impacts described above, other current and potential impacts of these recent events include, but are not limited to: • • • • • • • • • • • • • • disruption to our supply chain for raw materials essential to our business, including restrictions on importing and exporting products; notices from customers, suppliers, and other third parties arguing that their non-performance under our contracts with them is permitted as a result of force majeure or other reasons; liquidity challenges, including impacts related to delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies; a credit rating downgrade of our corporate debt and potentially higher borrowing costs in the future; a need to preserve liquidity, which could result in a further reduction or suspension of our quarterly dividend or a delay or change in our capital investment plan; cybersecurity issues, as digital technologies may become more vulnerable and experience a higher rate of cyberattacks in the current environment of remote connectivity; litigation risk and possible loss contingencies related to COVID-19 and its impact, including with respect to commercial contracts, employee matters and insurance arrangements; a further reduction of our global workforce to adjust to market conditions, including severance payments, retention issues, and an inability to hire employees when market conditions improve; additional costs associated with rationalization of our portfolio of real estate facilities, including possible exit of leases and facility closures to align with expected activity and workforce capacity; additional asset impairments, including an impairment of the carrying value of our goodwill, along with other accounting charges; infections and quarantining of our employees and the personnel of our customers, suppliers, and other third parties in areas in which we operate; changes in the regulation of the production of hydrocarbons, such as the imposition of limitations on the production of oil and gas by states or other jurisdictions, that may result in additional limits on demand for our products and services; actions undertaken by national, regional, and local governments and health officials to contain COVID-19 or treat its effects; and a structural shift in the global economy and its demand for oil and natural gas as a result of changes in the way people work, travel, and interact, or in connection with a global recession or depression. HAL 2020 FORM 10-K | 14 Item 1(a) | Risk Factors Given the dynamic nature of these events, we cannot reasonably estimate the period of time that the COVID-19 pandemic and related market conditions will persist or their severity, the full extent of the impact they will have on our business, financial condition, results of operations or cash flows or the pace or extent of any subsequent recovery. The events described above have had a significant adverse impact on the oil and gas industry and a material adverse effect on our business, liquidity, consolidated results of operations, and consolidated financial condition, all of which could worsen. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview.” Our operations are subject to cyberattacks that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are increasingly dependent on digital technologies and services to conduct our business. We use these technologies for internal purposes, including data storage, processing, and transmissions, as well as in our interactions with our business associates, such as customers and suppliers. Examples of these digital technologies include analytics, automation, and cloud services. Our digital technologies and services, and those of our business associates, are subject to the risk of cyberattacks and, given the nature of such attacks, some incidents can remain undetected for a period of time despite efforts to detect and respond to them in a timely manner. We routinely monitor our systems for cyber threats and have processes in place to detect and remediate vulnerabilities. Nevertheless, we have experienced occasional cyberattacks and attempted breaches over the past year, including attacks resulting from phishing emails and ransomware infections. We detected and remediated all of these incidents. Even if we successfully defend our own digital technologies and services, we also rely on our business associates, with whom we may share data and services, to defend their digital technologies and services against attack. No known leakage of material financial, technical or customer data occurred as a result of cyberattacks against us and none of the incidents mentioned above had a material adverse effect on our business, operations, reputation, or consolidated results of operations or consolidated financial condition. If our systems, or our business associates' systems, for protecting against cybersecurity risks prove not to be sufficient, we could be adversely affected by, among other things: loss of or damage to intellectual property, proprietary, or confidential information, or customer, supplier, or employee data; interruption of our business operations; and increased costs required to prevent, respond to, or mitigate cybersecurity attacks. These risks could harm our reputation and our relationships with our business associates, employees, and other third parties, and may result in claims against us. These risks could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition. We are subject to foreign currency 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 that have restricted or limited trading markets for their local currencies and restrict or limit cash repatriation. 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. If we lose one or more of our significant customers or if our customers delay paying or fail to pay a significant amount of our outstanding receivables, it could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We depend on a limited number of significant customers. While no single customer represented more than 10% of consolidated revenue in any period presented, the loss of one or more significant customers could have a material adverse effect on our business and our consolidated results of operations. In most cases, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices. In weak economic or commodity price environments, we may experience increased delays and failures due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets. If our customers delay paying or fail to pay us a significant amount of our outstanding receivables, it could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition. HAL 2020 FORM 10-K | 15 Item 1(a) | Risk Factors 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 business, 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 use cash on hand or be financed by additional borrowings or by the issuance of our common stock. These transactions may also affect our business, consolidated results of operations, and consolidated financial condition. These transactions also involve risks, and we cannot ensure that: - any acquisitions we attempt will be completed on the terms announced, or at all; - 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; or - any dispositions, investments, or acquisitions, including integration efforts, would not divert management resources. 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 in which unaffiliated third parties may control the operations of the joint venture or we may share control. As with any joint venture arrangement, differences in views among the joint venture participants may result in delayed decisions, the joint venture operating in a manner that is contrary to our preference 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. 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. HAL 2020 FORM 10-K | 16 Item 1(b) | Unresolved Staff Comments Item 1(b). Unresolved Staff Comments. None. Item 2. Properties. We own or lease numerous properties in domestic and foreign locations. Our principal properties include manufacturing facilities, research and development laboratories, technology centers, and corporate offices. We also have numerous small facilities that include sales, project and support offices, and bulk storage facilities throughout the world. Our owned properties have no material encumbrances. We believe all properties that we currently occupy are suitable for their intended use. The following locations represent our major facilities by segment: – Completion and Production: Arbroath, United Kingdom; Duncan, Oklahoma; Johor Bahru, Malaysia; Lafayette, Louisiana; and Rio de Janeiro, Brazil – Drilling and Evaluation: Alvarado, Texas and The Woodlands, Texas – Shared/corporate facilities: Bangalore, India; Carrollton, Texas; Dhahran, Saudi Arabia; Dubai, United Arab Emirates; Houston, Texas (corporate executive offices); Kuala Lumpur, Malaysia; London, England; Moscow, Russia; Panama City, Panama; Pune, India; Singapore; and Tananger, Norway Item 3. Legal Proceedings. Information related to Item 3. Legal Proceedings is included in Note 10 to the consolidated financial statements. Item 4. Mine Safety Disclosures. Our barite and bentonite mining operations, in support of our fluid services business, are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this annual report. HAL 2020 FORM 10-K | 17 Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Halliburton Company’s common stock is traded on the New York Stock Exchange under the symbol "HAL." Information related to quarterly dividend payments is included under the caption “Quarterly Financial Data” in the consolidated financial statements. The declaration and payment of future dividends will be at the discretion of the Board of Directors and will depend on, among other things, future earnings, general financial condition and liquidity, success in business activities, capital requirements, and general business conditions. The following graph and table compare total shareholder return on our common stock for the five-year period ended December 31, 2020, with the Philadelphia Oil Service Index (OSX) and the Standard & Poor’s 500 ® Index over the same period. This comparison assumes the investment of $100 on December 31, 2015 and the reinvestment of all dividends. The shareholder return set forth is not necessarily indicative of future performance. The following graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that Halliburton specifically incorporates it by reference into such filing. 2015 2016 2017 2018 2019 2020 December 31 Halliburton Philadelphia Oil Service Index (OSX) Standard & Poor’s 500 ® Index $ 100.00 $ 142.39 $ 130.67 $ 118.98 111.96 98.51 136.40 100.00 100.00 72.43 $ 53.97 130.42 68.30 $ 53.67 171.49 54.03 31.09 203.04 HAL 2020 FORM 10-K | 18 HalliburtonOSXS & P 500 ®12/31/1512/31/1612/31/1712/31/1812/31/1912/31/200255075100125150175200225Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities At January 29, 2021, we had 11,050 shareholders of record. In calculating the number of shareholders, we consider clearing agencies and security position listings as one shareholder for each agency or listing. The following table is a summary of repurchases of our common stock during the three-month period ended December 31, 2020. Period October 1 - 31 November 1 - 30 December 1 - 31 Total Total Number of Shares Purchased (a) Average Price Paid per Share 15,301 20,895 134,775 170,971 $11.26 $11.96 $19.01 $17.46 Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) — — — — Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b) $5,100,008,081 $5,100,008,081 $5,100,008,081 (a) All of the 170,971 shares purchased during the three-month period ended December 31, 2020 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to purchase common stock. (b) Our Board of Directors has authorized a plan to repurchase a specified dollar amount of our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of December 31, 2020. From the inception of this program in February 2006 through December 31, 2020, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. Item 6. Selected Financial Data. The Selected Financial Data should be read in conjunction with "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Item 8. Financial Statements and Supplementary Data," both contained herein. HALLIBURTON COMPANY Selected Financial Data (Unaudited) Year ended December 31 Millions of dollars except per share data 2020 2019 2018 2017 2016 Revenue Operating income (loss) Net Income (loss) Basic and diluted income (loss) per share attributable to company shareholders Cash dividends per share Net working capital Total assets Long-term debt Total debt Total shareholders’ equity Cash flows from operating activities Capital expenditures $ 14,445 $ 22,408 $ 23,995 $ 20,620 $ 15,887 (2,436) (2,942) (448) (1,129) 2,467 1,657 1,374 (449) (6,770) (5,767) (3.34) (1.29) 0.315 5,054 20,680 9,132 9,827 4,983 1,881 728 0.72 6,334 25,377 10,316 10,327 8,025 2,445 1,530 1.89 0.72 6,349 25,982 10,312 10,344 9,544 3,157 2,026 (0.51) (6.69) 0.72 5,915 25,085 10,430 10,942 8,349 2,468 1,373 0.72 7,654 27,000 12,214 12,384 9,448 (1,703) 798 HAL 2020 FORM 10-K | 19 Item 7 | Executive Overview Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated and combined financial statements included in "Item 8. Financial Statements and Supplementary Data" contained herein. EXECUTIVE OVERVIEW Financial results We experienced challenging market dynamics in 2020 as we faced a global pandemic, record oil demand destruction, and an unprecedented downturn in the energy industry. Despite these difficulties, we demonstrated resilience and a strong commitment to our execution culture. We delivered historic results across our key safety and service quality metrics and demonstrated our ability to generate competitive cash flow in different business environments. The following graph illustrates our revenue and operating margins for each operating segment over the past three years. During 2020, we generated total company revenue of $14.4 billion, a 36% decrease from the $22.4 billion of revenue generated in 2019, with our Completion and Production (C&P) segment declining by 44% and our Drilling and Evaluation (D&E) segment declining by 21%. We reported a total company operating loss of approximately $2.4 billion in 2020 driven by $3.8 billion of impairments and other charges. This compares to operating loss of $448 million in 2019 that was driven by $2.5 billion of impairments and other charges. A significant decline in pressure pumping services in North America land during 2020 negatively impacted operating results. Our North America revenue declined 52% in 2020 compared to 2019, resulting from lower activity and pricing in North America land, primarily associated with reduced stimulation and well construction activity. While the U.S. land rig count recovered from its August 2020 low, it is still 60% below pre-pandemic levels. Even without improved pricing, we took advantage of the recovery in completions and drilling activity in the fourth quarter of 2020 and delivered margin improvement, demonstrating the operating leverage from our cost reductions and service delivery improvements in North America. Internationally, revenue declined 17% in 2020 compared to 2019 primarily driven by reduced activity for drilling and completions related services across all international regions. Internationally, rig counts and customer spending declined more than 20%. Despite this tough backdrop, we improved our overall international margin in 2020. Business outlook Oil prices have returned to pre-pandemic levels. As oil demand recovers, we anticipate favorable market dynamics, with international short-cycle producers leading the activity recovery. Our strategic priorities should continue to drive our success as markets around the world stabilize and begin to grow. Internationally, we expect activity recovery to vary widely across the regions, with both a cyclical and seasonal bottoming of activity expected in the first quarter. While the pace of recovery depends on demand improvement, the second half of 2021 could see an increase in international activity as compared to the second half of 2020. We have a strong presence in mature fields completions and interventions work, a number of resilient integrated contracts around the world, leverage to unconventional developments in Latin America and the Middle East, and opportunities in key active offshore areas. Our new drilling technologies are penetrating the market and gaining customer confidence, and we have growth opportunities as we expand our production related businesses internationally. Also, we have adopted digital solutions which help our customers HAL 2020 FORM 10-K | 20 (millions)Financial Performance SummaryC&P RevenueD&E RevenueC&P MarginD&E Margin201820192020$0$5,000$10,000$15,000$20,000$25,0000%10%Item 7 | Executive Overview reduce cost per barrel, improve economics, and increase efficiencies. Our digital and other technology advances, geographic expansion of our products and services, along with continued discipline in cost management and cost efficiency, should achieve profitable returns-driven growth in international markets. In North America, our focused approach to building a leaner and more profitable business allowed us to improve our operating margins and cash flows in 2020. Activity has rebounded from its lows in 2020. Completions activity in North America is expected to continue improving in the first half of 2021, as commodity prices remain supportive and customers complete their back log of drilled, but uncompleted wells. For the full year of 2021, provided that the impact of the pandemic moderates, economic activity continues to increase, and commodity prices remain strong, we believe that our customers will sustain activity in order to hold their production flat to 2020 exit levels, with completions spend expected to outpace drilling. In 2021, we will focus on executing our key strategic priorities to deliver industry-leading returns and strong free cash flow. Our service delivery improvements, structural cost reductions, deployment of digital and other technologies, and lower capital intensity are expected to deliver on both customers' expectations and shareholder objectives. Our operating performance and business outlook are described in more detail in “Business Environment and Results of Operations.” Capital expenditures During 2020, our capital expenditures were approximately $728 million, a decrease of 52% from 2019, and were predominantly made in our Sperry Drilling, Production Enhancement, Baroid, Artificial Lift, and Wireline and Perforating product service lines. We intend for our capital expenditures in 2021 to remain relatively flat at $750 million. Our lower capital intensity, aided by technological innovation, should contribute to ongoing cash flow generation. We believe this level of spend will equip us to take advantage of an anticipated recovery in the market as 2021 unfolds. Financial markets, liquidity and capital resources We believe we have invested our cash balances conservatively and secured sufficient financing to help mitigate any near-term negative impact on our operations from adverse market conditions. As of December 31, 2020, we had $2.6 billion of cash and equivalents and $3.5 billion of available committed bank credit under our revolving credit facility which expires in 2024. We believe this provides us with sufficient liquidity to address the challenges and opportunities of the current market. For additional information on market conditions, see “Liquidity and Capital Resources” and “Business Environment and Results of Operations.” HAL 2020 FORM 10-K | 21 LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2020, we had $2.6 billion of cash and equivalents, compared to $2.3 billion of cash and equivalents at December 31, 2019. Item 7 | Liquidity and Capital Resources Significant sources and uses of cash in 2020 Sources of cash: • Cash flows from operating activities were $1.9 billion. This included a positive impact from the primary components of our working capital (receivables, inventories, and accounts payable) of a net $800 million, primarily associated with lower customer receivables, partially offset by approximately $350 million of severance payments. Uses of cash: • In March 2020, we executed two transactions resulting in a reduction of gross debt by $500 million. We issued $1.0 billion aggregate principal amount of senior notes and used the net proceeds from issuance along with cash on hand to repurchase $1.5 billion aggregate principal amount of senior notes. Inclusive of the tender premium and fees, these transactions resulted in a net payment of approximately $654 million. • Capital expenditures were $728 million. • We paid $278 million of dividends to our shareholders. • We repurchased approximately 7.4 million shares of our common stock in early March, largely before the significant decline in oil prices, under our share repurchase program, at a total cost of approximately $100 million. Future sources and uses of cash We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. Capital spending for 2021 is currently expected to be approximately $750 million. We believe this level of spend will allow us to invest in our key strategic areas. We will continue to maintain capital discipline, monitor the rapidly changing market dynamics, and adjust our capital spend accordingly. For additional information on capital expenditures, see "Executive Overview." We have debt payments of $185 million and $500 million due in the first quarter of 2021 and the fourth quarter of 2021, respectively. Based on our market outlook, we reduced our quarterly dividend rate in the second quarter of 2020 from $0.18 per common share to $0.045 per common share and remained at this amount for the rest of 2020, reducing cash outflows by approximately $360 million in 2020. We will continue to maintain our focus on liquidity and review our quarterly dividend considering our priorities of future debt reduction and, as market conditions evolve, reinvesting in our business. Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of December 31, 2020 and may be used for open market and other share purchases. HAL 2020 FORM 10-K | 22 Contractual obligations The following table summarizes our significant contractual obligations and other long-term liabilities as of Item 7 | Liquidity and Capital Resources December 31, 2020: Millions of dollars Long-term debt (a) Interest on debt (b) Operating leases Finance leases Purchase obligations (c) Other long-term liabilities (d) Total Payments Due 2021 2022 2023 2024 2025 Thereafter Total $ 695 $ 9 $ 602 $ — $ 1,000 $ 7,604 $ 484 287 63 385 26 460 233 63 72 — 460 146 62 17 — 439 94 49 6 — 439 70 38 192 — 7,129 428 55 1 — 9,910 9,411 1,258 330 673 26 $ 1,940 $ 837 $ 1,287 $ 588 $ 1,739 $ 15,217 $ 21,608 (a) Represents principal amounts of long-term debt, including current maturities of debt, which excludes any unamortized debt issuance costs and discounts. Interest on debt includes 76 years of interest on $300 million of debentures at 7.6% interest that become due in 2096. (b) (c) Amounts in 2021 primarily represent certain purchase orders for goods and services utilized in the ordinary course of our business. Includes pension funding obligations. Amounts for pension funding obligations, which include international plans and are based on (d) assumptions that are subject to change, are only included for 2021 as we are currently not able to reasonably estimate our contributions for years after 2021. Due to the uncertainty with respect to the timing of potential future cash outflows associated with our uncertain tax positions, we are not able to reasonably estimate the period of cash settlement with the respective taxing authorities. Therefore, gross unrecognized tax benefits have been excluded from the contractual obligations table above. We had $355 million of gross unrecognized tax benefits, excluding penalties and interest, at December 31, 2020, of which we estimate $211 million may require a cash payment by us. We estimate that $193 million of the cash payment will not be settled within the next 12 months. Other factors affecting liquidity Financial position in current market. As of December 31, 2020, we had $2.6 billion of cash and equivalents and $3.5 billion of available committed bank credit under our revolving credit facility. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will provide sufficient liquidity to address the challenges and opportunities of the current market and our global cash needs, including capital expenditures, working capital investments, dividends, if any, debt repayment, and contingent liabilities. Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2020. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred. Credit ratings. Our credit ratings with Standard & Poor’s (S&P) remain BBB+ for our long-term debt and A-2 for our short-term debt, with a negative outlook. Our credit ratings with Moody’s Investors Service (Moody's) remain Baa1 for our long-term debt and P-2 for our short-term debt, with a negative outlook. Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets, as well as unsettled political conditions. Given the nature and significance of the pandemic and disruption in the oil and gas industry, we have experienced delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies. If our customers delay paying or fail to pay us a significant amount of our outstanding receivables, it could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition. See Note 5 to the consolidated financial statements for further discussion. HAL 2020 FORM 10-K | 23 Item 7 | Business Environment and Results of Operations BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each segment of our business. In 2020, 2019, and 2018, based on the location of services provided and products sold, 38%, 51%, and 58%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our revenue. Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, sanctions, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that an interruption of operations in any one country, other than the United States, would be materially adverse to our consolidated results of operations. Activity within our business segments is significantly impacted by spending on upstream exploration, development and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil and natural gas consumption. The COVID-19 pandemic and efforts to mitigate its effect have had a substantial negative impact on the global economy and demand for oil. Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers' expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, many of our customers in North America have shifted their strategy from production growth to operating within cash flow and generating returns. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below. The table below shows the average oil and natural gas prices for WTI, United Kingdom Brent crude oil, and Henry Hub natural gas. 2020 2019 2018 Oil price - WTI (1) Oil price - Brent (1) $ 39.23 $ 56.98 $ 41.76 64.36 Natural gas price - Henry Hub (2) (1) Oil price measured in dollars per barrel. (2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu. 2.04 2.54 64.94 71.08 3.17 The historical average rig counts based on the weekly Baker Hughes rig count data were as follows: U.S. Land U.S. Offshore Canada North America International Worldwide total 2020 2019 2018 418 15 89 522 825 1,347 920 23 134 1,077 1,098 2,175 1,013 19 191 1,223 988 2,211 HAL 2020 FORM 10-K | 24 Item 7 | Business Environment and Results of Operations The oil and gas industry experienced an unprecedented disruption during 2020 as a result of a combination of factors, including the substantial decline in global demand for oil caused by the COVID-19 pandemic and subsequent mitigation efforts. This disruption created a substantial surplus of oil and a decline in oil prices. West Texas Intermediate (WTI) oil spot prices decreased during the first quarter of 2020 from a high of $63 per barrel in early January of 2020 to approximately $21 per barrel by the end of the first quarter of 2020. Although oil prices recovered moderately to approximately $48 per barrel by the end of December 2020, WTI oil spot prices averaged approximately $43 per barrel during the fourth quarter of 2020 and $39 per barrel during the year 2020, which was approximately 25% and 31%, respectively, less than the average price per barrel during the same periods in 2019. As a result, oil and gas activity declined significantly during 2020, with the global rig count sinking to the lowest level since 1973. The U.S. and international average rig counts dropped 54% and 25%, respectively, during 2020, contributing to a global rig count decline of 38% since 2019. Crude oil prices traded within a wide range during 2020. After averaging $63 a barrel in January 2020, Brent prices fell to an average of $18 a barrel in April, the lowest monthly average price since February 1999. The low prices were the result of significant declines in oil consumption that caused a sharp rise in global oil inventories. However, Brent prices increased through much of the rest of 2020 as rising oil demand and reduced production caused global oil inventories to fall. Prices rose to a monthly average of $50 a barrel in December due to expectations of future economic recovery based on the roll out of multiple COVID-19 vaccines. In the early part of January 2021, Brent prices reached their highest levels in 10 months after Saudi Arabia announced a one-month unilateral cut in its crude oil production for February and March that is in addition to its OPEC+ commitments. Oil prices are back to pre-pandemic levels, driven by global vaccine distribution, an unfolding demand recovery, OPEC+ agreement on production volume, and a declining production base. However, the surge in COVID-19 infections globally and the expected gradual return of spare production capacity make us cautious about near term recovery. In the United States Energy Information Administration (EIA) January 2021 "Short Term Energy Outlook," the EIA projected Brent prices to average $53 per barrel in 2021, while WTI prices were projected to average approximately $3.00 less per barrel than Brent prices. The International Energy Agency's (IEA) January 2021 "Oil Market Report" forecasts 2021 global demand to average approximately 96.6 million barrels per day, an increase of 6% from 2020. The recent widespread escalation of COVID-19 cases remains a significant factor impacting oil demand. Vaccination campaigns are underway; however, several regions, including areas of the United States, are dealing with a rebound in the pandemic resulting in tighter mobility constraints and less travel. There is also concern about whether vaccines will be effective against different strains of the virus that have developed and may develop in the future. The Henry Hub natural gas spot price in the United States averaged $2.04 per MMBtu in 2020, a decrease of $0.50 per MMBtu, or 20%, from 2019. The EIA expects Henry Hub natural gas prices to rise to annual average of $3.01 per MMBtu in 2021 and forecasts prices will rise to an average of $3.27 per MMBtu in 2022. North America operations The average North America rig count decreased 52% for the full year 2020 as compared to 2019. The decline in activity was rapid, but both rig count and completions activity have started to recover off their 2020 lows. We responded swiftly and aggressively to the market conditions, and as business conditions improve, our actions resulted in margin improvements through the second half of 2020. In the first quarter of 2021, we expect positive activity momentum to continue, with completions activity increasing more than drilling. The EIA estimates that annual U.S. crude oil production averaged 11.3 million barrels per day as of the year ended 2020, down 1.0 million barrels per day compared to the year ended 2019 as a result of well curtailment and a drop in drilling activity related to low oil prices. The EIA expects production to again decline in 2021, averaging 11.1 million barrels per day, and to increase to an annual average of 11.5 million barrels per day in 2022, as prices and drilling conditions become more favorable. We continue to focus on driving strategic changes, building on the operating leverage we have created in the business, and maximizing our cash flow generation in North America. International operations Full year international revenue for 2020 declined 17%, while rig counts and customer spending were down more than 20% as compared to 2019. The pace of recovery depends on the trajectory of demand improvement, and in the second half of 2021, we expect to see an increase in international activity compared to the second half of 2020. We are well positioned to benefit from this increase. We have a strong presence in mature fields completions and interventions work, resilient integrated contracts around the world, leverage to unconventional developments in Latin America and the Middle East, and a leading position in key active offshore areas. The EIA expects the recent rise in COVID-19 infections, the re-imposition of some restrictions, and ongoing changes to consumer behaviors due to the pandemic will continue to adversely affect global oil demand in the first half of 2021. Despite the uncertainty, the EIA forecasts economic activity to return to pre-pandemic levels in 2021 based partly on assumptions regarding the effect of recent vaccine rollouts and reopening efforts. As in the United States, HAL 2020 FORM 10-K | 25 Item 7 | Business Environment and Results of Operations the pace of oil consumption growth internationally may, to a significant extent, depend on the manufacture and distribution of effective vaccines on a global scale. Venezuela. The U.S. Government imposed sanctions against Venezuela have effectively required us to discontinue our operations there. Consequently, in connection with us winding down our operations in Venezuela, we wrote down all of our remaining investment in Venezuela in 2020. As of December 29, 2020 we no longer have any employees in Venezuela, although we continue to maintain our local entity, facilities, and equipment in-country, as permitted under applicable law. We are not currently conducting any other operational activities in Venezuela. HAL 2020 FORM 10-K | 26 RESULTS OF OPERATIONS IN 2020 COMPARED TO 2019 Item 7 | Results of Operations in 2020 Compared to 2019 Revenue: Millions of dollars Completion and Production Drilling and Evaluation Total revenue By geographic region: North America Latin America Europe/Africa/CIS Middle East/Asia Total Operating loss: Millions of dollars Completion and Production Drilling and Evaluation Total Corporate and other Impairments and other charges Total operating loss n/m = not meaningful Favorable Percentage 2020 2019 (Unfavorable) Change $ $ 7,839 $ 14,031 $ 6,606 8,377 14,445 $ 22,408 $ (6,192) (1,771) (7,963) (44) % (21) (36) % $ 5,731 $ 11,884 $ (6,153) (52) % 1,668 2,813 4,233 2,364 3,285 4,875 (696) (472) (642) (29) (14) (13) $ 14,445 $ 22,408 $ (7,963) (36) % 2020 2019 (Unfavorable) Change Favorable Percentage $ 995 $ 1,671 $ 569 1,564 (201) (3,799) $ (2,436) $ 642 2,313 (255) (2,506) (448) $ (676) (73) (749) 54 (1,293) (1,988) (40) % (11) (32) 21 (52) n/m Consolidated revenue in 2020 was $14.4 billion, a decrease of $8.0 billion, or 36%, compared to 2019, mainly due to lower activity and pricing in North America land, primarily associated with stimulation services and well construction. Revenue from North America was 40% of consolidated revenue in 2020 and 53% of consolidated revenue in 2019. We reported a consolidated operating loss of $2.4 billion in 2020 driven in part by $3.8 billion of impairments and other charges. This compares to an operating loss of $448 million in 2019, driven by $2.5 billion of impairments and other charges. A significant decline in stimulation activity and pricing in North America land during 2020 negatively impacted operating results, partially offset by increase in stimulation activity and completion tool sales in the Middle East/Asia. See Note 2 to the consolidated financial statements for further discussion on impairments and other charges. OPERATING SEGMENTS Completion and Production Completion and Production revenue was $7.8 billion in 2020, a decrease of $6.2 billion, or 44%, compared to 2019. Operating income was $1.0 billion in 2020, a 40% decrease from $1.7 billion in 2019. These results were primarily driven by reduced activity and pricing for pressure pumping services, lower completion tool sales, and reduced artificial lift activity in North America land. Partially offsetting these results were higher completion tool sales in the Eastern Hemisphere. Drilling and Evaluation Drilling and Evaluation revenue was $6.6 billion in 2020, a decrease of $1.8 billion, or 21%, from 2019. These results were primarily driven by lower activity for drilling-related services in North America land, lower project management activity in the Middle East/Asia, and a global decrease in wireline activity. Operating income was $569 million in 2020, a decrease of $73 million, or 11%, compared to 2019. These results were primarily driven by a decline in drilling activity in North America land, coupled with lower project management activity in the HAL 2020 FORM 10-K | 27 Item 7 | Results of Operations in 2020 Compared to 2019 Middle East/Asia. Partially offsetting these results were improvements in wireline profitability in the Middle East/Asia and the North Sea, as well as drilling-related services in the North Sea. GEOGRAPHIC REGIONS North America North America revenue was $5.7 billion in 2020, a 52% decrease compared to 2019, resulting from lower activity and pricing in North America land, primarily associated with reduced stimulation, well construction, artificial lift, and wireline activity. This decline was partially offset by increased stimulation activity in the Gulf of Mexico and project management in North America land. Latin America Latin America revenue was $1.7 billion in 2020, a 29% decrease compared to 2019, resulting primarily from decreased activity in multiple product service lines in Argentina, Colombia, Ecuador, and Brazil, partially offset by increased project management activity in Mexico and drilling-related services in Guyana. Europe/Africa/CIS Europe/Africa/CIS revenue was $2.8 billion in 2020, a 14% decrease compared to 2019. The decrease was due to lower activity for multiple product service lines throughout the region, primarily in Nigeria, Egypt, and United Kingdom, partially offset by increased completion tool sales in the North Sea, Algeria, and Azerbaijan, and drilling-related activity in the North Sea. Middle East/Asia Middle East/Asia revenue was $4.2 billion in 2020, a 13% decrease compared to 2019. The decrease was due to lower activity throughout the region, primarily related to project management, stimulation in Saudi Arabia, and well construction activity, partially offset by increased completion tool sales and pipeline services in the Middle East/Asia. OTHER OPERATING ITEMS Impairments and other charges were $3.8 billion in 2020, consisting of asset and real estate impairments, primarily associated with pressure pumping and drilling equipment, as well as severance and other costs incurred as we continued to adjust our cost structure during the year. This compares to $2.5 billion of impairments and other charges recorded in 2019, consisting of asset impairments, primarily associated with pressure pumping and drilling equipment, as well as severance and other costs incurred as we adjusted our cost structure during the year. See Note 2 to the consolidated financial statements for further discussion on these charges. NONOPERATING ITEMS Loss on early extinguishment of debt. During the year ended December 31, 2020, we recorded a $168 million loss on the early extinguishment of debt, which included a tender premium, unamortized discounts and costs on the retired notes, and tender fees. See Note 9 to the consolidated financial statements for further information. Income tax (provision) benefit. Our tax (provisions) benefits are sensitive to the geographic mix of earnings and our ability to use our deferred tax assets. During 2020, we recorded a total income tax benefit of $278 million on a pre-tax loss of $3.2 billion, resulting in an effective tax rate of 8.6%. During 2019, we recorded a total income tax provision of $7 million on a pre-tax loss of $1.1 billion, resulting in an effective tax rate of -0.6%. See Note 11 to the consolidated financial statements for significant drivers of these tax (provisions) benefits. HAL 2020 FORM 10-K | 28 Item 7 | Results of Operations in 2019 Compared to 2018 RESULTS OF OPERATIONS IN 2019 COMPARED TO 2018 Information related to the comparison of our operating results between the years 2019 and 2018 is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2019 Form 10-K filed with the SEC and is incorporated by reference into this annual report on Form 10-K. HAL 2020 FORM 10-K | 29 Item 7 | Critical Accounting Estimates CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements requires the use of judgments and estimates. Our critical accounting policies are described below to provide a better understanding of how we develop our assumptions and judgments about future events and related estimates and how they can impact our financial statements. A critical accounting estimate is one that requires our most difficult, subjective, or complex judgments and assessments and is fundamental to our results of operations. We identified our most critical accounting estimates to be: - forecasting our income tax (provision) benefit, including our future ability to utilize foreign tax credits and the realizability of deferred tax assets (including net operating loss carryforwards), and providing for uncertain tax positions; - legal and investigation matters; - valuations of long-lived assets, including intangible assets and goodwill; and - allowance for credit losses. We base our estimates on historical experience and on various other assumptions we believe to be reasonable according to the current facts and circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We believe the following are the critical accounting policies used in the preparation of our consolidated financial statements, as well as the significant estimates and judgments affecting the application of these policies. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes included in this report. Income tax accounting We recognize the amount of taxes payable or refundable for the current year and use an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. We apply the following basic principles in accounting for our income taxes: - a current tax liability or asset is recognized for the estimated taxes payable or refundable on tax returns for the current year; - a deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and carryforwards; - the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law, and the effects of potential future changes in tax laws or rates are not considered; and - the value of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. We determine deferred taxes separately for each tax-paying component (an entity or a group of entities that is consolidated for tax purposes) in each tax jurisdiction. That determination includes the following procedures: - identifying the types and amounts of existing temporary differences; - measuring the total deferred tax liability for taxable temporary differences using the applicable tax rate; - measuring the total deferred tax asset for deductible temporary differences and operating loss carryforwards using the applicable tax rate; - measuring the deferred tax assets for each type of tax credit carryforward; and - reducing the deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our methodology for recording income taxes requires a significant amount of judgment and the use of assumptions and estimates. Additionally, we use forecasts of certain tax elements, such as taxable income and foreign tax credit utilization, as well as evaluate the feasibility of implementing tax planning strategies. Given the inherent uncertainty involved with the use of such variables, there can be significant variation between anticipated and actual results that could have a material impact on our income tax accounts related to continuing operations. HAL 2020 FORM 10-K | 30 Item 7 | Critical Accounting Estimates We have operations in more than 70 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. Our tax filings are routinely examined in the normal course of business by tax authorities. 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, the timing and nature of income earned and expenditures incurred. The final determination of tax audits or changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our income tax liabilities for a tax year and have an adverse effect on our financial statements. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined in the normal course of business by tax authorities. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate, and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties, as needed based on this outcome. We provide for uncertain tax positions pursuant to current accounting standards, which prescribe a minimum recognition threshold and measurement methodology that a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. The standards also provide guidance for derecognition classification, interest and penalties, accounting in interim periods, disclosure, and transition. Legal and investigation matters As discussed in Note 10 of our consolidated financial statements, we are subject to various legal and investigation matters arising in the ordinary course of business. As of December 31, 2020, we have accrued an estimate of the probable and estimable costs for the resolution of some of our legal and investigation matters, which is not material to our consolidated financial statements. For other matters for which the liability is not probable and reasonably estimable, we have not accrued any amounts. Attorneys in our legal department monitor and manage all claims filed against us and review all pending investigations. Generally, the estimate of probable costs related to these matters is developed in consultation with internal and outside legal counsel representing us. Our estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. The accuracy of these estimates is impacted by, among other things, the complexity of the issues and the amount of due diligence we have been able to perform. We attempt to resolve these matters through settlements, mediation, and arbitration proceedings when possible. If the actual settlement costs, final judgments or fines, after appeals, differ from our estimates, there may be a material adverse effect on our future financial results. We have in the past recorded significant adjustments to our initial estimates of these types of contingencies. Value of long-lived assets, including intangible assets and goodwill We carry a variety of long-lived assets on our balance sheet including property, plant and equipment, goodwill, and other intangibles. Impairment is the condition that exists when the carrying amount of a long-lived asset exceeds its fair value, and any impairment charge that we record reduces our operating income. Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. We conduct impairment tests on goodwill annually, during the third quarter, or more frequently whenever events or changes in circumstances indicate an impairment may exist. We conduct impairment tests on long-lived assets, other than goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When conducting an impairment test on long-lived assets, other than goodwill, we first group individual assets based on the lowest level for which identifiable cash flows are largely independent of the cash flows from other assets. This requires some judgment. We then compare estimated future undiscounted cash flows expected to result from the use and eventual disposition of the asset group to its carrying amount. If the undiscounted cash flows are less than the asset group’s carrying amount, we then determine the asset group's fair value by using a discounted cash flow analysis. This analysis is based on estimates such as management’s short-term and long-term forecast of operating performance, including revenue growth rates and expected profitability margins, estimates of the remaining useful life and service potential of the assets within the asset group, and a discount rate based on our weighted average cost of capital. An impairment loss is measured and recorded as the amount by which the asset group's carrying amount exceeds its fair value. See Note 2 to the consolidated financial statements for impairments and other charges recorded during the year ended December 31, 2020. HAL 2020 FORM 10-K | 31 Item 7 | Critical Accounting Estimates We perform our goodwill impairment assessment for each reporting unit, which is the same as our reportable segments, the Completion and Production division and the Drilling and Evaluation division, comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill. We estimate the fair value for each reporting unit using a discounted cash flow analysis based on management’s short-term and long-term forecast of operating performance. This analysis includes significant assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures and the timing of expected future cash flows based on market conditions. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, an impairment loss is measured and recorded. The impairment assessments discussed above incorporate inherent uncertainties, including projected commodity pricing, supply and demand for our services and future market conditions, which are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in our forecasts. If market conditions further deteriorate, including crude oil prices significantly declining and remaining at low levels for a sustained period of time, we could be required to record additional impairments of the carrying value of our long-lived assets in the future which could have a material adverse impact on our operating results. See Note 1 to the consolidated financial statements for our accounting policies related to long-lived assets. Allowance for credit losses We evaluate our global accounts receivable through a continuous process of assessing our portfolio on an individual customer and overall basis. This process consists of a thorough review of historical collection experience, current aging status of the customer accounts, financial condition of our customers, and whether the receivables involve retainages. We also consider the economic environment of our customers, both from a marketplace and geographic perspective, in evaluating the need for an allowance. Based on our review of these factors, we establish or adjust allowances for specific customers. This process involves judgment and estimation, and frequently involves significant dollar amounts. Accordingly, our results of operations can be affected by adjustments to the allowance due to actual write-offs that differ from estimated amounts. At December 31, 2020, our allowance for credit losses totaled $824 million, or 22.5% of notes and accounts receivable before the allowance. At December 31, 2019, our allowance for credit losses totaled $776 million, or 15.4% of notes and accounts receivable before the allowance. The allowance for credit losses in both years is primarily comprised of accounts receivable with our primary customer in Venezuela. A hypothetical 100 basis point change in our estimate of the collectability of our notes and accounts receivable balance as of December 31, 2020 would have resulted in a $37 million adjustment to 2020 total operating costs and expenses. See Note 5 to the consolidated financial statements for further information. OFF BALANCE SHEET ARRANGEMENTS At December 31, 2020, we had no material off balance sheet arrangements. In the normal course of business, we have agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees or surety bonds were outstanding as of December 31, 2020. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred. FINANCIAL INSTRUMENT MARKET RISK We are exposed to market risk from changes in foreign currency exchange rates and interest rates. We selectively manage these exposures through the use of derivative instruments, including forward foreign exchange contracts, foreign exchange options, and interest rate swaps. The objective of our risk management strategy is to minimize the volatility from fluctuations in foreign currency and interest rates. We do not use derivative instruments for trading purposes. The counterparties to our forward contracts, options, and interest rate swaps are global commercial and investment banks. We use a sensitivity analysis model to measure the impact of potential adverse movements in foreign currency exchange rates and interest rates. With respect to foreign exchange sensitivity, after consideration of the impact from our foreign forward contracts and options, a hypothetical 10% adverse change in the value of all our foreign currency positions relative to the United States dollar as of December 31, 2020 would result in a $83 million, pre-tax, loss for our net monetary assets denominated in currencies other than United States dollars. With respect to interest rates sensitivity, after consideration of the impact from our interest rate swap, a hypothetical 100 basis point increase in the LIBOR rate would result in approximately an additional $1 million of interest charges for the year ended December 31, 2020. HAL 2020 FORM 10-K | 32 Item 7 | Financial Instrument Market Risk There are certain limitations inherent in the sensitivity analysis presented, primarily due to the assumption that exchange rates and interest rates change instantaneously in an equally adverse fashion. In addition, the analysis are unable to reflect the complex market reactions that normally would arise from the market shifts modeled. While this is our best estimate of the impact of the various scenarios, these estimates should not be viewed as forecasts. For further information regarding foreign currency exchange risk, interest rate risk, and credit risk, see Note 15 to the consolidated financial statements. ENVIRONMENTAL MATTERS We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For information related to environmental matters, see Note 10 to the consolidated financial statements and "Part I, Item 1(a). “Risk Factors.” FORWARD-LOOKING INFORMATION The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form 10-K are forward-looking and use words like “may,” “may not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,” “should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in other materials we release to the public. Forward-looking information involves risk and uncertainties and reflects our best judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may vary materially. We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether factors change as a result of new information, future events or for any other reason. You should review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC. We also suggest that you listen to our quarterly earnings release conference calls with financial analysts. HAL 2020 FORM 10-K | 33 Item 7(a) | Quantitative and Qualitative Disclosures About Market Risk Item 7(a). Quantitative and Qualitative Disclosures About Market Risk. Information related to market risk is included in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and Note 15 to the consolidated financial statements. HAL 2020 FORM 10-K | 34 Item 8. Financial Statements and Supplementary Data. Financial Statements Management’s Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020, 2019 and 2018 Consolidated Balance Sheets at December 31, 2020 and 2019 Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2020, 2019 and 2018 Notes to Consolidated Financial Statements Note 1. Description of Company and Significant Accounting Policies Note 2. Impairments and Other Charges Note 3. Business Segment and Geographic Information Note 4. Revenue Note 5. Receivables Note 6. Leases Note 7. Inventories Note 8. Property, Plant and Equipment Note 9. Debt Note 10. Commitments and Contingencies Note 11. Income Taxes Note 12. Shareholders’ Equity Note 13. Stock-based Compensation Note 14. Income per Share Note 15. Financial Instruments and Risk Management Note 16. Retirement Plans Quarterly Financial Data (Unaudited) PAGE 36 37 40 41 42 43 44 45 48 49 51 52 53 55 55 56 57 57 60 60 63 63 65 68 HAL 2020 FORM 10-K | 35 MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Halliburton Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in the Securities Exchange Act Rule 13a-15(f). Internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Further, because of changes in conditions, the effectiveness of internal control over financial reporting may vary over time. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation to assess the effectiveness of our internal control over financial reporting as of December 31, 2020 based upon criteria set forth in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, we believe that, as of December 31, 2020, our internal control over financial reporting is effective. The effectiveness of Halliburton’s internal control over financial reporting as of December 31, 2020 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report that is included herein. HALLIBURTON COMPANY by /s/ Jeffrey A. Miller Jeffrey A. Miller Chairman of the Board, President and Chief Executive Officer /s/ Lance Loeffler Lance Loeffler Executive Vice President and Chief Financial Officer HAL 2020 FORM 10-K | 36 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Halliburton Company: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Halliburton Company and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 5, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Change in Accounting Principle As discussed in Note 6 to the consolidated financial statements, the Company has changed its method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Codification Topic 842, Leases. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Evaluation of the Realizability of Deferred Tax Assets As discussed in Notes 1 and 11 to the consolidated financial statements, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized, which is dependent upon the generation of the future taxable income. As of December 31, 2020, the Company had gross deferred tax assets of $3.8 billion and a related valuation allowance of $1.4 billion. We identified the evaluation of the realizability of domestic deferred tax assets as a critical audit matter. The evaluation of the realizability of domestic deferred tax assets, specifically related to domestic net operating loss HAL 2020 FORM 10-K | 37 carryforwards and foreign tax credits, required subjective auditor judgment to assess the forecasts of future taxable income over the periods in which those temporary differences become deductible. Changes in assumptions regarding forecasted taxable income, specifically revenue growth rates, could have an impact on the Company’s evaluation of the realizability of the domestic deferred tax assets. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter. This included controls related to the development of forecasts of future taxable income. We evaluated the assumptions used in the development of forecasts of future taxable income, specifically revenue growth rates, by comparing to historical actuals while considering current and anticipated future commodity prices or market events. We also evaluated the Company’s history of realizing domestic deferred tax assets by evaluating the expiration of domestic net operating loss carryforwards and foreign tax credits. Assessment of the Fair Value of Property, Plant and Equipment As discussed in Notes 1, 2, and 8 to the consolidated financial statements, the gross amount of property, plant and equipment as of December 31, 2020 was $15.4 billion and related accumulated depreciation was $11.0 billion. When events or changes in circumstances indicate that long-lived assets may be impaired, an evaluation is performed. The Company compares estimated future undiscounted cash flows expected to result from the use and eventual disposition of the asset group to its carrying amount. If the asset group's undiscounted cash flows are less than their carrying amount, then they determine the asset group's fair value. The fair value of an asset group is determined by using a discounted cash flow analysis, and an impairment is recognized in the event the fair value is less than the carrying value. The Company recognized an impairment charge of $2.3 billion for the year ended December 31, 2020. We identified the assessment of the Company’s estimate of the fair value of property, plant and equipment as a critical audit matter for certain asset groups. There was a high degree of subjectivity in evaluating the significant assumptions used in determining the discounted cash flows used to estimate the fair value of certain asset groups, specifically the revenue growth rates, expected profitability margin and the discount rate used. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process to estimate the discounted cash flows of certain asset groups, including controls related to the significant assumptions. We evaluated the Company’s development of the revenue growth rates and expected profitability margin assumptions by identifying and assessing the sources of data that management used in their assessment. We evaluated the revenue growth rates and expected profitability margin for consistency with relevant historical data, changes in the business, and external industry data, as applicable. In addition, we involved valuation professionals with specialized skills and knowledge to assist with evaluating the selected discount rate by comparing it against a discount rate range that was independently developed using publicly available market data for comparable companies. /s/ KPMG LLP We have served as the Company’s auditor since 2002. Houston, Texas February 5, 2021 HAL 2020 FORM 10-K | 38 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Halliburton Company: Opinion on Internal Control Over Financial Reporting We have audited Halliburton Company's and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity, and cash flows for each of the years in the three- year period ended December 31, 2020, and the related notes (collectively, the consolidated financial statements), and our report dated February 5, 2021 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Houston, Texas February 5, 2021 HAL 2020 FORM 10-K | 39 HALLIBURTON COMPANY Consolidated Statements of Operations Millions of dollars and shares except per share data Revenue: Services Product sales Total revenue Operating costs and expenses: Cost of services Cost of sales Impairments and other charges General and administrative Total operating costs and expenses Operating income (loss) Interest expense, net of interest income of $38, $23, and $44 Loss on early extinguishment of debt Other, net Income (loss) before income taxes Income tax benefit (provision) Net income (loss) Net income attributable to noncontrolling interest Net income (loss) attributable to company Basic and diluted income (loss) per share attributable to company shareholders: Net income (loss) per share Basic weighted average common shares outstanding Diluted weighted average common shares outstanding See notes to consolidated financial statements. Year Ended December 31 2020 2019 2018 $ 10,203 $ 16,884 $ 18,444 4,242 14,445 9,458 3,442 3,799 182 16,881 (2,436) (505) (168) (111) 5,524 22,408 15,684 4,439 2,506 227 22,856 (448) (569) — (105) (3,220) (1,122) 278 (7) (2,942) $ (1,129) $ (3) (2) 5,551 23,995 16,591 4,418 265 254 21,528 2,467 (554) — (99) 1,814 (157) 1,657 (1) (2,945) $ (1,131) $ 1,656 (3.34) $ (1.29) $ 1.89 881 881 875 875 875 877 $ $ $ HAL 2020 FORM 10-K | 40 HALLIBURTON COMPANY Consolidated Statements of Comprehensive Income (Loss) Millions of dollars Net income (loss) Other comprehensive income (loss), net of income taxes: Defined benefit and other post retirement plans adjustment Other Other comprehensive income (loss), net of income taxes Comprehensive income (loss) Comprehensive income attributable to noncontrolling interest Comprehensive income (loss) attributable to company shareholders See notes to consolidated financial statements. Year Ended December 31 2020 2019 2018 $ (2,942) $ (1,129) $ 1,657 (24) 24 — (11) 3 (8) 131 (17) 114 $ $ (2,942) $ (1,137) $ 1,771 (3) (2) (1) (2,945) $ (1,139) $ 1,770 HAL 2020 FORM 10-K | 41 HALLIBURTON COMPANY Consolidated Balance Sheets Millions of dollars and shares except per share data Assets Current assets: Cash and equivalents Receivables (net of allowances for credit losses of $824 and $776) Inventories Assets held for resale Other current assets Total current assets Property, plant and equipment (net of accumulated depreciation of $11,039 and $12,630) Goodwill Deferred income taxes Operating lease right-of-use assets Other assets Total assets Current liabilities: Accounts payable Liabilities and Shareholders’ Equity Current maturities of long-term debt Accrued employee compensation and benefits Taxes other than income Current portion of operating lease liabilities Other current liabilities Total current liabilities Long-term debt Operating lease liabilities Employee compensation and benefits Other liabilities Total liabilities Shareholders’ equity: Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,068 shares) Paid-in capital in excess of par value Accumulated other comprehensive loss Retained earnings Treasury stock, at cost (181 and 190 shares) Company shareholders’ equity Noncontrolling interest in consolidated subsidiaries Total shareholders’ equity Total liabilities and shareholders’ equity See notes to consolidated financial statements. December 31 2020 2019 $ 2,563 $ 3,071 2,349 550 942 9,475 4,325 2,804 2,166 786 1,124 2,268 4,577 3,139 180 1,048 11,212 7,310 2,812 1,683 931 1,429 $ 20,680 $ 25,377 $ 1,573 $ 2,432 695 517 292 251 1,093 4,421 9,132 758 562 824 11 604 310 208 1,313 4,878 10,316 825 525 808 15,697 17,352 2,666 — (362) 8,691 (6,021) 4,974 9 4,983 20,680 $ $ 2,669 143 (362) 11,989 (6,427) 8,012 13 8,025 25,377 HAL 2020 FORM 10-K | 42 HALLIBURTON COMPANY Consolidated Statements of Cash Flows Millions of dollars Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to cash flows from operating activities Impairments and other charges Cash impact of impairments and other charges - severance payments Depreciation, depletion, and amortization Deferred income tax benefit Accrued employee benefits Changes in assets and liabilities: Receivables Accounts payable Inventories Other operating activities Total cash flows provided by operating activities Cash flows from investing activities: Capital expenditures Proceeds from sales of property, plant and equipment Payments to acquire businesses, net of cash acquired Other investing activities Total cash flows used in investing activities Cash flows from financing activities: Payments on long-term borrowings Proceeds from issuance of long-term debt, net Dividends to shareholders Stock repurchase program Proceeds from issuance of common stock Other financing activities Total cash flows used in financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and equivalents Cash and equivalents at beginning of year Cash and equivalents at end of year Supplemental disclosure of cash flow information: Cash payments during the period for: Interest Income taxes See notes to consolidated financial statements. Year Ended December 31 2020 2019 2018 $ (2,942) $ (1,129) $ 1,657 3,799 (350) 1,058 (444) (160) 1,394 (934) 340 120 2,506 (144) 1,625 (396) (38) 636 (595) (202) 182 265 — 1,606 (267) (69) (186) 483 (681) 349 1,881 2,445 3,157 (728) (1,530) (2,026) 286 — (44) 190 — (105) 218 (187) 2 (486) (1,445) (1,993) (1,654) 994 (278) (100) 87 (56) (1,007) (93) 295 (13) — (630) (100) 118 (70) (695) (45) 260 (445) — (630) (400) 195 (139) (1,419) (74) (329) 2,268 2,008 2,337 $ 2,563 $ 2,268 $ 2,008 $ $ 509 $ 300 $ 534 $ 363 $ 556 178 HAL 2020 FORM 10-K | 43 HALLIBURTON COMPANY Consolidated Statements of Shareholders' Equity Company Shareholders’ Equity Paid-in Capital in Excess of Par Value Common Stock Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total $ 2,673 $ 207 $ (6,757) $ 12,668 $ (469) $ 27 $ 8,349 — — — (2) — — — — — 4 — — — — — 413 (400) — 1,656 — (630) — — 45 — 114 — — — — 1 — — — — (6) 1,657 114 (630) 415 (400) 39 $ 2,671 $ 211 $ (6,744) $ 13,739 $ (355) $ 22 $ 9,544 — — — (2) — — — — — (67) — (1) — — — 417 (100) — (1,131) — (630) — — 11 — (8) — — — 1 2 — — — — (1,129) (8) (630) 348 (100) (11) — $ 2,669 $ 143 $ (6,427) $ 11,989 $ (362) $ 13 $ 8,025 — — (3) — — — — (143) — — — — 506 (100) — (2,945) (278) (75) — — — — — — — 3 — — — (7) (2,942) (278) 285 (100) (7) Millions of dollars Balance at December 31, 2017 Comprehensive income (loss): Net income Other comprehensive income Cash dividends ($0.72 per share) Stock plans Stock repurchase program Other Balance at December 31, 2018 Comprehensive income (loss): Net income (loss) Other comprehensive loss Cash dividends ($0.72 per share) Stock plans Stock repurchase program Other Balance at December 31, 2019 Comprehensive income (loss): Net income (loss) Cash dividends ($0.315 per share) Stock plans Stock repurchase program Other Balance at December 31, 2020 $ 2,666 $ — $ (6,021) $ 8,691 $ (362) $ 9 $ 4,983 See notes to consolidated financial statements. HAL 2020 FORM 10-K | 44 Item 8 | Notes to Consolidated Financial Statements HALLIBURTON COMPANY Notes to Consolidated Financial Statements Note 1. Description of Company and Significant Accounting Policies Description of Company Halliburton Company is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. We help our customers maximize asset value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. We serve major, national, and independent oil and natural gas companies throughout the world and operate under two divisions, which form the basis for the two operating segments we report, the Completion and Production segment and the Drilling and Evaluation segment. Use of estimates Our financial statements are prepared in conformity with United States generally accepted accounting principles, requiring us to make estimates and assumptions that affect: - - the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenue and expenses during the reporting period. We believe the most significant estimates and assumptions are associated with the forecasting of our income tax (provision) benefit and the valuation of deferred taxes, legal reserves, long-lived asset valuations, and allowance for credit losses. Ultimate results could differ from our estimates. Basis of presentation The consolidated financial statements include the accounts of our company and all of our subsidiaries that we control or variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany accounts and transactions are eliminated. Investments in companies in which we do not have a controlling interest, but over which we do exercise significant influence, are accounted for using the equity method of accounting. If we do not have significant influence, we use the cost method of accounting. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. Revenue recognition Our services and products are generally sold based upon purchase orders or contracts with our customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. The vast majority of our service and product contracts are short-term in nature. We recognize revenue based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of our customers. Rates for services are typically priced on a per day, per meter, per man-hour, or similar basis. See Note 4 for further information on revenue recognition. Research and development We maintain an active research and development program. The program improves products, processes, and engineering standards and practices that serve the changing needs of our customers, such as those related to high pressure and high temperature environments, and also develops new products and processes. Research and development costs are expensed as incurred and were $309 million in 2020, $404 million in 2019, and $390 million in 2018. Cash equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Inventories Inventories are stated at the lower of cost and net realizable value. Cost represents invoice or production cost for new items and original cost. Production cost includes material, labor, and manufacturing overhead. Our inventory is recorded on the weighted average cost method. We regularly review inventory quantities on hand and record provisions for excess or obsolete inventory based primarily on historical usage, estimated product demand, and technological developments. HAL 2020 FORM 10-K | 45 Item 8 | Notes to Consolidated Financial Statements Allowance for credit losses We establish an allowance for credit losses through a review of several factors, including historical collection experience, current aging status of the customer accounts, and current financial condition of our customers. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. Property, plant and equipment Other than those assets that have been written down to their fair values due to impairment, property, plant, and equipment are reported at cost less accumulated depreciation, which is generally provided on the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are often used for tax purposes, when permitted. Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Planned major maintenance costs are generally expensed as incurred. Expenditures for additions, modifications, and conversions are capitalized when they increase the value or extend the useful life of the asset. Goodwill and other intangible assets We record as goodwill the excess purchase price over the fair value of the tangible and identifiable intangible assets acquired in a business acquisition. Changes in the carrying amount of goodwill are detailed below by reportable segment. Millions of dollars Balance at December 31, 2018: Current year acquisitions Purchase price adjustments for previous acquisitions Other Balance at December 31, 2019: Other Balance at December 31, 2020: Completion and Production Drilling and Evaluation Total $ 2,055 $ 770 $ 2,825 6 (1) (21) 2,039 $ (66) 1,973 $ $ $ 5 (1) (1) 773 $ 58 831 $ 11 (2) (22) 2,812 (8) 2,804 The reported amounts of goodwill for each reporting unit are reviewed for impairment on an annual basis, during the third quarter, and more frequently when circumstances indicate an impairment may exist. As a result of our goodwill impairment assessments performed in the years ended December 31, 2020, 2019, and 2018, we determined that the fair value of each reporting unit exceeded its net book value and, therefore, no goodwill impairments were deemed necessary. For further information on our goodwill impairment assessments, see "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates.” We amortize other identifiable intangible assets with a finite life on a straight-line basis over the period which the asset is expected to contribute to our future cash flows, ranging from one year to twenty-eight years. The components of these other intangible assets generally consist of patents, license agreements, non-compete agreements, trademarks, and customer lists and contracts. Evaluating impairment of long-lived assets When events or changes in circumstances indicate that long-lived assets other than goodwill may be impaired, an evaluation is performed. For assets classified as held for use, we first group individual assets based on the lowest level for which identifiable cash flows are largely independent of the cash flows from other assets. We then compare estimated future undiscounted cash flows expected to result from the use and eventual disposition of the asset group to its carrying amount. If the asset group's undiscounted cash flows are less than its carrying amount, we then determine the asset group's fair value by using a discounted cash flow analysis and recognize any resulting impairment. When an asset is classified as held for sale, the asset’s book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. In addition, depreciation and amortization is ceased while it is classified as held for sale. See Note 2 for further information on impairments and other charges recorded in 2020. Income taxes We recognize the amount of taxes payable or refundable for the year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. HAL 2020 FORM 10-K | 46 Item 8 | Notes to Consolidated Financial Statements In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations. Derivative instruments At times, we enter into derivative financial transactions to hedge existing or projected exposures to changing foreign currency exchange rates and interest rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value and reflected through the results of operations. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against: - - the change in fair value of the hedged assets, liabilities or firm commitments through earnings; or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in earnings. Recognized gains or losses on derivatives entered into to manage foreign currency exchange risk are included in “Other, net” on the consolidated statements of operations. Gains or losses on interest rate derivatives are included in “Interest expense, net.” Foreign currency translation Foreign entities whose functional currency is the United States dollar translate monetary assets and liabilities at year- end exchange rates, and nonmonetary items are translated at historical rates. Revenue and expense transactions are translated at the average rates in effect during the year, except for those expenses associated with nonmonetary balance sheet accounts, which are translated at historical rates. Gains or losses from remeasurement of monetary assets and liabilities due to changes in exchange rates are recognized in our consolidated statements of operations in “Other, net” in the year of occurrence. Stock-based compensation Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award and is recognized as expense over the employee’s service period, which is generally the vesting period of the equity grant. Additionally, compensation cost is recognized based on awards ultimately expected to vest, therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods to reflect actual forfeitures. See Note 13 for additional information related to stock-based compensation. HAL 2020 FORM 10-K | 47 Item 8 | Notes to Consolidated Financial Statements Note 2. Impairments and Other Charges The oil and gas industry experienced an unprecedented disruption during 2020 as a result of a combination of factors, including the substantial decline in global demand for oil caused by the COVID-19 pandemic and subsequent mitigation efforts. This disruption created a substantial surplus of oil and a decline in oil prices. West Texas Intermediate (WTI) oil spot prices decreased during the first quarter of 2020 from a high of $63 per barrel in early January of 2020 to approximately $21 per barrel by the end of the first quarter of 2020. Although oil prices recovered moderately to approximately $48 per barrel by the end of December 2020, WTI oil spot prices averaged approximately $43 per barrel during the fourth quarter of 2020 and $39 per barrel during the year 2020, which was approximately 25% and 31%, respectively, less than the average price per barrel during the same periods in 2019. As a result, oil and gas activity declined significantly during 2020, with the global rig count sinking to the lowest level since 1973. The U.S. and international average rig counts dropped 54% and 25%, respectively, during 2020, contributing to a global rig count decline of 38% since December 31, 2019. In the first and second quarters of 2020, we determined these events constituted triggering events that required us to review the recoverability of our long-lived assets and perform an interim goodwill impairment assessment as of March 31, 2020 and May 1, 2020. We determined the fair value of our long-lived assets based on a discounted cash flow analysis, with the exception of real estate facilities which are classified as held for sale for which fair value was based on third party sales price estimates. We determined the fair value for each reporting unit in our goodwill impairment assessment using both a discounted cash flow analysis and a multiples-based market approach for comparable companies. Given the current volatile market environment, we utilized third-party valuation advisors to assist us with these valuations. These analyses included significant judgment, including management’s short-term and long-term forecast of operating performance, discount rates based on our weighted average cost of capital, revenue growth rates, profitability margins, capital expenditures, the timing of future cash flows based on an eventual recovery of the oil and gas industry, and in the case of long-lived assets, the remaining useful life and service potential of the asset. These impairment assessments incorporate inherent uncertainties, including projected commodity pricing, supply and demand for our services and future market conditions, which are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in our forecasts. Based upon our impairment assessments, we determined the carrying amount of some of our long-lived assets exceeded their respective fair values. As a result of our goodwill impairment assessments, we determined that the fair value of each reporting unit exceeded its net book value and, therefore, no goodwill impairments were deemed necessary. As a result of the events described above, we recorded impairments and other charges of approximately $3.8 billion during the year ended December 31, 2020. The following table presents various pre-tax charges we recorded during the years ended December 31, 2020, 2019, and 2018 which are reflected within "Impairments and other charges" on our consolidated statements of operations. Millions of dollars Long-lived asset impairments Inventory costs and write-downs Severance Joint ventures Venezuela investment write-down Other Year Ended December 31 2020 2019 2018 $ 2,629 $ 1,603 $ 505 384 — — 281 458 172 154 — 119 Total impairments and other charges $ 3,799 $ 2,506 $ — — — — 265 — 265 Of the $3.8 billion of impairments and other charges recorded during the year ended December 31, 2020, approximately $2.4 billion was attributable to our Completion and Production segment and approximately $1.4 billion was attributable to our Drilling and Evaluation segment. Long-lived asset impairments include impairments of property, plant, and equipment, intangible assets, and real estate facilities. The $2.6 billion of long-lived asset impairments during 2020 consisted of the following: $1.0 billion attributable to hydraulic fracturing equipment, the majority of which was located in North America; $297 million related to drilling-related services equipment; $191 million related to right-of-use assets, primarily operating leases; $131 million related to intangible assets; and $394 million associated with other fixed asset impairments. Also included in Long-lived asset impairments is $616 million related to real estate properties, primarily related to a fair value adjustment for a contemplated structured transaction for most of our remaining North America real estate owned assets classified as held for sale, and to approximately 50% of North American facilities being closed, sold, consolidated, or reduced in size during 2020. HAL 2020 FORM 10-K | 48 Item 8 | Notes to Consolidated Financial Statements For the year ended December 31, 2019, the $1.6 billion of long-lived asset impairments consisted of the following: $759 million attributable to hydraulic fracturing equipment, the majority of which was located in North America; $243 million related to legacy drilling equipment; $215 million related to real estate owned and classified as held for sale; $139 million related to right-of-use assets associated with operating leases; $98 million related to intangible assets; and $148 million of other fixed asset impairments. We also rationalized our portfolio of existing joint ventures and recorded resulting charges within "Joint ventures" in the table above. Inventory costs and write-downs in the table above primarily represent disposal of excess inventory, including drilling fluids and other chemicals, and write-downs in which some of our inventory cost exceeded its market value. For the year ended December 31, 2018, the $265 million impairment related to a write-down of all of our remaining investment in Venezuela. Given the dynamic nature of the COVID-19 pandemic and related market conditions, we cannot reasonably estimate the period that these events will persist or the full extent of the impact they will have on our business. If market conditions continue to deteriorate, including crude oil prices further declining or remaining at low levels for a sustained period, we may record further asset impairments, which may include an impairment of the carrying value of our goodwill. Note 3. Business Segment and Geographic Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment. HAL 2020 FORM 10-K | 49 Operations by business segment The following tables present financial information on our business segments. Item 8 | Notes to Consolidated Financial Statements Millions of dollars Revenue: Completion and Production Drilling and Evaluation Total revenue Operating income: Completion and Production Drilling and Evaluation Total operations Corporate and other (a) Impairments and other charges (b) Total operating income (loss) Interest expense, net of interest income Loss on early extinguishment of debt Other, net Income (loss) before income taxes Capital expenditures: Completion and Production Drilling and Evaluation Corporate and other Total Depreciation, depletion and amortization: Completion and Production Drilling and Evaluation Corporate and other Total Year Ended December 31 2020 2019 2018 $ 7,839 $ 14,031 $ 15,973 6,606 8,377 8,022 $ 14,445 $ 22,408 $ 23,995 $ 995 $ 1,671 $ 2,278 569 1,564 (201) 642 2,313 (255) (3,799) (2,506) 745 3,023 (291) (265) $ $ (2,436) $ (448) $ 2,467 (505) $ (569) $ (554) (168) (111) — (105) — (99) $ (3,220) $ (1,122) $ 1,814 $ 314 $ 800 $ 1,364 $ $ 410 4 728 2 657 5 728 $ 1,530 $ 2,026 615 $ 1,049 $ 1,058 430 13 552 24 512 36 $ 1,058 $ 1,625 $ 1,606 (a) Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions. (b) Impairments and other charges are as follows: -For the year ended December 31, 2020, amount includes approximately $2.4 billion attributable to Completion and Production, $1.4 billion attributable to Drilling and Evaluation, and $62 million attributable to Corporate and other. -For the year ended December 31, 2019, amount includes approximately $1.6 billion attributable to Completion and Production, $849 million attributable to Drilling and Evaluation, and $56 million attributable to Corporate and other. -For the years ended December 31, 2018, we recorded aggregate charges of $265 million to write-down our investment in Venezuela. Millions of dollars Total assets: Completion and Production (a) Drilling and Evaluation (a) Corporate and other (b) Total December 31 2020 2019 $ 7,924 $ 11,894 8,059 6,371 5,424 6,385 $ 20,680 $ 25,377 (a) Assets associated with specific segments primarily include receivables, inventories, property, plant, and equipment, operating lease right-of-use assets, equity in and advances to related companies, and goodwill. (b) Corporate and other primarily include cash and equivalents and deferred tax assets. HAL 2020 FORM 10-K | 50 Operations by geographic region The following tables present information by geographic area. In 2020, 2019, and 2018, based on the location of services provided and products sold, 38%, 51%, and 58%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our revenue or property, plant, and equipment during the periods presented. As of December 31, 2020 and December 31, 2019, 49% and 59% of our property, plant, and equipment was located in the United States. Millions of dollars Revenue: North America Latin America Europe/Africa/CIS Middle East/Asia Total Millions of dollars Net property, plant and equipment: North America Latin America Europe/Africa/CIS Middle East/Asia Total Year Ended December 31 2019 2020 2018 $ 5,731 $ 11,884 $ 14,431 2,065 2,364 1,668 2,945 3,285 2,813 4,554 4,875 4,233 $ 14,445 $ 22,408 $ 23,995 December 31 2020 2019 $ $ 2,211 $ 544 602 968 4,325 $ 4,666 754 772 1,118 7,310 Note 4. Revenue Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion, and calculating the corresponding amount of revenue to recognize. Disaggregation of revenue We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 38%, 51%, and 58% of our consolidated revenue was from the United States for the years ended December 31, 2020, 2019, and 2018, respectively. No other country accounted for more than 10% of our revenue. The following table presents information on our disaggregated revenue. HAL 2020 FORM 10-K | 51 Item 8 | Notes to Consolidated Financial Statements Millions of dollars Revenue by segment: Completion and Production Drilling and Evaluation Total revenue Revenue by geographic region: North America Latin America Europe/Africa/CIS Middle East/Asia Total revenue Year Ended December 31 2020 2019 2018 $ $ $ 7,839 $ 14,031 $ 6,606 8,377 14,445 $ 22,408 $ 15,973 8,022 23,995 5,731 $ 11,884 $ 14,431 1,668 2,813 4,233 2,364 3,285 4,875 2,065 2,945 4,554 $ 14,445 $ 22,408 $ 23,995 Contract balances We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our consolidated financial statements. Transaction price allocated to remaining performance obligations Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material. Note 5. Receivables As of December 31, 2020, 32% of our net trade receivables were from customers in the United States. As of December 31, 2019, 36% of our net trade receivables were from customers in the United States. No other country or single customer accounted for more than 10% of our net trade receivables at these dates. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit agency ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors. The table below presents a rollforward of our global allowance for credit losses for 2018, 2019 and 2020. Millions of dollars Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Balance at Beginning of Period Provision (a) Other (b) Balance at End of Period (c) $ 725 $ 738 776 57 $ 50 58 (44) $ (12) (10) 738 776 824 (a) Represents increases to allowance for credit losses charged to costs and expenses, net of recoveries. (b) Includes write-offs, balance sheet reclassifications, and other activity. (c) The allowance for credit losses in all years is primarily comprised of a full reserve against accounts receivable with our primary customer in Venezuela. HAL 2020 FORM 10-K | 52 Item 8 | Notes to Consolidated Financial Statements Note 6. Leases We adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. We adopted the standard using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the year ended December 31, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. The adoption of this standard resulted in the recognition of approximately $1.0 billion of operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheet as of January 1, 2019. The adoption of this standard did not materially impact our consolidated results of operations for the year ended December 31, 2019. Beginning January 1, 2019, for all leases with a term in excess of 12 months, we recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term and accretion of the lease liability, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. We recognize lease expense for these short-term leases on a straight-line basis over the lease term. We are a lessee for numerous operating leases, primarily related to real estate, transportation, and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of our leases may require judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We also have some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment leases, such as offshore vessels and drilling rigs, we account for the lease and non-lease components separately. The following tables illustrate the financial impact of our leases as of and for the years ended December 31, 2020 and December 31, 2019, along with other supplemental information about our existing leases: HAL 2020 FORM 10-K | 53 Millions of dollars Components of lease expense: Finance lease cost: Amortization of right-of-use assets Interest on lease liabilities Operating lease cost Short-term lease cost Sublease income Total lease cost Item 8 | Notes to Consolidated Financial Statements Year Ended December 31 2020 2019 $ $ 19 $ 32 296 31 (4) 374 $ 19 51 355 110 (5) 530 For the year ended December 31, 2018, total rentals on our operating leases under the previous lease standard, net of sublease rentals, was $680 million. Millions of dollars Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) Current portion of operating lease liabilities Operating lease liabilities (non-current) Finance leases: Other assets (non-current) Other current liabilities Other liabilities (non-current) As of December 31 2020 2019 $ $ 786 $ 251 758 113 $ 24 118 931 208 825 123 19 124 During the years ended December 31, 2020 and December 31, 2019, impairment charges were recorded related to operating and finance lease right-of-use assets totaling $191 million and $139 million, respectively. See Note 2 to the consolidated financial statements for further discussion on impairments and other charges. Millions of dollars except years and percentages Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) Finance leases Weighted-average remaining lease term: Operating leases Finance leases Weighted-average discount rate for operating leases Year Ended December 31 2020 2019 $ $ 299 $ 32 21 447 $ 39 8.6 years 6.4 years 4.1 % 316 51 24 1,362 74 9.5 years 5.4 years 4.4 % (a) The 2019 balance primarily consists of operating lease right-of-use assets exchanged for lease obligations upon implementation of the new lease accounting standard on January 1, 2019. HAL 2020 FORM 10-K | 54 The following table summarizes the maturity of our operating and finance leases as of December 31, 2020: Item 8 | Notes to Consolidated Financial Statements Millions of dollars 2021 2022 2023 2024 2025 Thereafter Total lease payments Less imputed interest Total Note 7. Inventories Inventories consisted of the following: Millions of dollars Finished products and parts Raw materials and supplies Work in process Total Operating Leases Finance Leases $ 287 $ 233 146 94 70 428 1,258 (249) $ 1,009 $ 63 63 62 49 38 55 330 (188) 142 December 31 2020 2019 $ $ 1,330 $ 952 67 2,349 $ 1,865 1,147 127 3,139 All amounts in the table above are reported net of obsolescence reserves of $150 million at December 31, 2020 and $149 million at December 31, 2019. During the year ended December 31, 2020, we recorded $505 million of impairment charges related to inventory. These charges primarily consisted of the disposal of excess inventory, including drilling fluids and other chemicals, and write- downs in which some of our inventory cost exceeded its market value. Note 8. Property, Plant, and Equipment Property, plant, and equipment were composed of the following: Millions of dollars Land Buildings and property improvements Machinery, equipment, and other Total Less accumulated depreciation Net property, plant, and equipment December 31 2020 2019 $ 120 $ 1,652 13,592 15,364 11,039 4,325 $ $ 202 3,167 16,571 19,940 12,630 7,310 During the year ended December 31, 2020, a $2.3 billion impairment charge was recorded related to property, plant, and equipment. See Note 2 to the consolidated financial statements for further discussion on impairments and other charges. HAL 2020 FORM 10-K | 55 Classes of assets are depreciated over the following useful lives: Item 8 | Notes to Consolidated Financial Statements Buildings and Property Improvements 2020 13% 41% 21% 25% 2019 12% 41% 22% 25% Machinery, Equipment, and Other 2020 49% 41% 10% 2019 43% 47% 10% 1 11 21 31 - 10 years - 20 years - 30 years - 40 years 1 - 5 years 6 - 10 years 11 - 20 years Note 9. Debt Our total debt, including short-term borrowings and current maturities of long-term debt, consisted of the following: Millions of dollars 5.0% senior notes due November 2045 3.8% senior notes due November 2025 4.85% senior notes due November 2035 7.45% senior notes due September 2039 2.92% senior notes due March 2030 4.75% senior notes due August 2043 6.7% senior notes due September 2038 3.5% senior notes due August 2023 4.5% senior notes due November 2041 3.25% senior notes due November 2021 7.6% senior debentures due August 2096 8.75% senior debentures due February 2021 6.75% notes due February 2027 Other Unamortized debt issuance costs and discounts Total Short-term borrowings and current maturities of long-term debt Total long-term debt December 31 2020 2019 2,000 2,000 $ 2,000 1,000 1,000 1,000 1,000 1,000 — 1,000 900 900 800 800 1,100 600 500 500 500 500 300 300 185 185 104 104 28 20 (90) (82) 10,327 9,827 (695) (11) 9,132 $ 10,316 $ $ HAL 2020 FORM 10-K | 56 Item 8 | Notes to Consolidated Financial Statements $1.0 billion issuance On March 3, 2020, we issued $1.0 billion aggregate principal amount of 2.92% senior notes due March 2030. Subsequently, on March 5, 2020, we completed a tender offer to purchase $1.5 billion aggregate principal amount of senior notes using proceeds from the debt issuance and cash on hand. In the tender offer, we purchased $500 million aggregate principal amount of our 3.50% senior notes due August 2023 and $1.0 billion aggregate principal amount of our 3.80% senior notes due November 2025. This early debt repurchase resulted in a $168 million loss on extinguishment, which included a tender premium, unamortized discounts and costs on the retired notes, and other tender fees. These costs are included in "Loss on early extinguishment of debt" on our consolidated statements of operations for the year ended December 31, 2020. Senior debt The $1.0 billion of senior notes issued in March rank equally with our existing and future senior unsecured indebtedness, have semiannual interest payments and have no sinking fund requirements. We may redeem all of our senior notes from time to time or all of the notes of each series at any time at the applicable redemption prices, plus accrued and unpaid interest. Our 6.75% notes due February 2027, 7.6% senior debentures due August 2096 and 8.75% senior debentures due February 2021 may not be redeemed prior to maturity. Revolving credit facilities We have a revolving credit facility with a capacity of $3.5 billion, which expires in March 2024. The facility is for working capital or general corporate purposes. The full amount of the revolving credit facility was available as of December 31, 2020. Debt maturities Our long-term debt matures as follows: $695 million in 2021, $9 million in 2022, $602 million in 2023, no amounts in 2024, $1.0 billion in 2025, and the remainder thereafter. Note 10. Commitments and Contingencies The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, and tax-related matters, arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any litigation, claim or investigation and no assurance can be given as to the outcome of these proceedings. Guarantee arrangements In the normal course of business, we have agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2020. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements. Note 11. Income Taxes The components of the (provision) benefit for income taxes on continuing operations were: Millions of dollars Current income taxes: Federal Foreign State Total current Deferred income taxes: Federal Foreign State Total deferred Income tax (provision) benefit Year Ended December 31 2019 2020 2018 $ 1 $ 32 $ (167) — (166) 372 2 70 444 278 $ (426) (9) (403) 383 (36) 49 396 (7) $ $ 19 (428) (15) (424) 286 9 (28) 267 (157) HAL 2020 FORM 10-K | 57 The United States and foreign components of income (loss) from continuing operations before income taxes were as follows: Item 8 | Notes to Consolidated Financial Statements Millions of dollars United States Foreign Total Year Ended December 31 2020 2019 2018 $ (3,031) $ (1,517) $ 1,097 (189) 395 717 $ (3,220) $ (1,122) $ 1,814 Reconciliations between the actual (provision) benefit for income taxes on continuing operations and that computed by applying the United States statutory rate to income (loss) from continuing operations before income taxes were as follows: United States statutory rate Impact of impairments and other charges Impact of foreign income taxed at different rates Valuation allowance against tax assets Adjustments of prior year taxes State income taxes Venezuela adjustment Impact of U.S. tax reform Other items, net Total effective tax rate on continuing operations Year Ended December 31 2020 2019 2018 21.0 % 21.0 % 21.0 % (12.3) (1.1) 0.9 0.7 — — — (20.9) 0.8 (10.7) 13.0 (1.3) — — (0.6) 8.6 % (2.5) (0.6) % — (3.0) (16.2) 2.0 1.9 5.7 (2.6) (0.1) 8.7 % During the year ended December 31, 2020, we recorded a total income tax benefit of $278 million on a pre-tax loss of $3.2 billion, resulting in an effective tax rate of 8.6%. The effective tax rate for 2020 was primarily impacted by our geographic mix of earnings, tax adjustments related to the reassessment of prior year tax accruals and valuation allowances on some of our deferred tax assets. The increase in our valuation allowances results from our decreased forecasted ability to generate sufficient taxable income before the expiration of foreign tax credits and net operating losses as a direct result of deteriorated market conditions that led to impairment charges of $3.8 billion in 2020 and $2.5 billion in 2019. See Note 2 for further information. The primary components of our deferred tax assets and liabilities were as follows: Millions of dollars Gross deferred tax assets: Net operating loss carryforwards Foreign tax credit carryforwards Research and development tax credit carryforwards Employee compensation and benefits Accrued liabilities Other Total gross deferred tax assets Gross deferred tax liabilities: Depreciation and amortization Operating lease right-of-use assets Other Total gross deferred tax liabilities Valuation allowances Net deferred income tax asset December 31 2020 2019 $ $ 1,691 $ 945 196 237 263 469 3,801 7 86 155 248 1,394 2,159 $ 1,301 877 198 215 316 382 3,289 373 109 58 540 1,082 1,667 At December 31, 2020, we had $1.8 billion of domestic and foreign tax-effected net operating loss carryforwards, with approximately $133 million estimated to be utilized against our unrecognized tax benefits. The ultimate realization of these HAL 2020 FORM 10-K | 58 Item 8 | Notes to Consolidated Financial Statements deferred tax assets depends on our ability to generate sufficient taxable income in the appropriate taxing jurisdiction. Our deferred tax assets from net operating losses, foreign tax credits, and research and development credits will expire as follows: Millions of dollars U.S. Net Operating Loss Foreign Net Operating Loss Foreign Tax Credits Research and Development Credit Total 2021-2025 2026-2030 2031-2041 Non-Expiring $ $ 2 $ 186 $ 533 $ — $ 7 665 312 125 92 435 557 — — — 196 — 721 689 953 747 986 $ 838 $ 1,090 $ 196 $ 3,110 During the year ended December 31, 2020, we increased our valuation allowance on deferred tax assets by $312 million related to $16 million associated with foreign deferred tax assets and $296 million associated with foreign tax credits. In accordance with the Tax Cuts and Jobs Act of 2017, a company’s foreign earnings accumulated under the legacy tax laws are deemed to be repatriated into the United States. We have provided federal and state income tax related to this deemed repatriation. We have not provided incremental United States income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries as of December 31, 2020. The Company generally does not provide for taxes related to its undistributed earnings because such earnings either would not be taxable when remitted or they are considered to be indefinitely reinvested. The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties. Millions of dollars Balance at January 1, 2018 Change in prior year tax positions Change in current year tax positions Cash settlements with taxing authorities Lapse of statute of limitations Balance at December 31, 2018 Change in prior year tax positions Change in current year tax positions Cash settlements with taxing authorities Lapse of statute of limitations Balance at December 31, 2019 Change in prior year tax positions Change in current year tax positions Cash settlements with taxing authorities Lapse of statute of limitations Balance at December 31, 2020 Unrecognized Tax Benefits $ $ Interest and Penalties 60 $ 11 — (2) (2) 67 11 — — (8) 70 6 — — (5) 71 333 32 63 (7) (4) 417 25 29 (4) (42) 425 (a) (66) 16 (3) (17) 355 (a)(b) $ $ $ $ $ (a) (b) Includes $18 million as of December 31, 2020 and $25 million as of December 31, 2019 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2020 and December 31, 2019, a net $224 million and $271 million without a net operating loss carryforward offset, respectively, of unrecognized tax benefits would positively impact the effective tax rate and be recognized as additional tax benefits in our statement of operations if resolved in our favor. Includes $17 million that could be resolved within the next 12 months. Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2009. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. The United States federal income tax filings for tax years 2016 through 2019 are currently under review or remain open for review by the U.S. Internal Revenue Service. HAL 2020 FORM 10-K | 59 Item 8 | Notes to Consolidated Financial Statements Note 12. Shareholders’ Equity Shares of common stock The following table summarizes total shares of common stock outstanding: Millions of shares Issued In treasury Total shares of common stock outstanding December 31 2020 2019 1,066 (181) 885 1,068 (190) 878 Our Board of Directors has authorized a program to repurchase a specified dollar amount of our common stock from time to time. The program does not require a specific number of shares to be purchased and the program may be effected through solicited or unsolicited transactions in the market or in privately negotiated transactions. The program may be terminated or suspended at any time. During the year ended December 31, 2020 we repurchased approximately 7.4 million shares of our common stock for a total cost of $100 million. There were 4.5 million repurchases made under the program during the year ended December 31, 2019. Approximately $5.1 billion remained authorized for repurchases as of December 31, 2020. From the inception of this program in February 2006 through December 31, 2020, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. Paid-in Capital in Excess of Par Value During 2020, we issued common stock from treasury shares under our employee stock purchase plan awards and for restricted stock grants. As a result, additional paid in capital was reduced below zero, which resulted in a reduction of retained earnings by $75 million. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings. Preferred stock Our preferred stock consists of five million total authorized shares at December 31, 2020, of which none are issued. Accumulated other comprehensive loss Accumulated other comprehensive loss consisted of the following: Millions of dollars December 31 2020 2019 Defined benefit and other postretirement liability adjustments (a) $ (226) $ (214) Cumulative translation adjustment Other (83) (53) (82) (66) Total accumulated other comprehensive loss $ (362) $ (362) (a) Included net actuarial losses for our international pension plans of $212 million at December 31, 2020 and $189 million at December 31, 2019. Note 13. Stock-based Compensation The following table summarizes stock-based compensation costs for the years ended December 31, 2020, 2019 and 2018. Millions of dollars Stock-based compensation cost Tax benefit Stock-based compensation cost, net of tax Year Ended December 31 2020 2019 2018 $ $ 218 $ 257 $ (35) (48) 183 $ 209 $ 274 (51) 223 HAL 2020 FORM 10-K | 60 Our Stock and Incentive Plan, as amended (Stock Plan), provides for the grant of any or all of the following types of stock-based awards: Item 8 | Notes to Consolidated Financial Statements - stock options, including incentive stock options and nonqualified stock options; - restricted stock awards; - restricted stock unit awards; - stock appreciation rights; and - stock value equivalent awards. There are currently no stock appreciation rights, stock value equivalent awards, or incentive stock options outstanding. Under the terms of the Stock Plan, approximately 247 million shares of common stock have been reserved for issuance to employees and non-employee directors. At December 31, 2020, approximately 23 million shares were available for future grants under the Stock Plan. The stock to be offered pursuant to the grant of an award under the Stock Plan may be authorized but unissued common shares or treasury shares. In addition to the provisions of the Stock Plan, we also have stock-based compensation provisions under the Restricted Stock Plan for Non-Employee Directors and the Employee Stock Purchase Plan (ESPP). Each of the active stock-based compensation arrangements is discussed below. Stock options The majority of our options are generally issued during the second quarter of the year. All stock options under the Stock Plan are granted at the fair market value of our common stock at the grant date. Employee stock options generally vest ratably over a period of three years and expire 10 years from the grant date. Compensation expense for stock options is generally recognized on a straight line basis over the entire vesting period. The following table represents our stock options activity during 2020. Outstanding at January 1, 2020 Granted Forfeited/expired Outstanding at December 31, 2020 Exercisable at December 31, 2020 Number of Shares (in millions) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) 25.3 $ 2.2 (1.6) 25.9 $ 19.7 $ 41.58 24.59 37.87 40.36 44.29 5.4 $ 4.5 $ — — The total intrinsic value of options exercised was $7 million in 2020, $2 million in 2019 and $25 million in 2018. As of December 31, 2020, there was $20 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately two years. Cash received from issuance of common stock was $87 million of which none related to proceeds from exercises of stock option during 2020. Cash received from issuance of common stock was $118 million during 2019 and $195 million during 2018, of which $6 million and $88 million related to proceeds from exercises of stock options in 2019 and 2018, respectively. The remainder relates to cash proceeds from the issuance of shares related to our employee stock purchase plan. HAL 2020 FORM 10-K | 61 Item 8 | Notes to Consolidated Financial Statements The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. The expected volatility of options granted was a blended rate based upon implied volatility calculated on actively traded options on our common stock and upon the historical volatility of our common stock. The expected term of options granted was based upon historical observation of actual time elapsed between date of grant and exercise of options for all employees. The assumptions and resulting fair values of options granted were as follows: Expected term (in years) Expected volatility Expected dividend yield Risk-free interest rate Year Ended December 31 2020 5.39 33% 2019 5.31 31% 2018 5.27 28% 2.92 - 3.23% 2.25 - 3.88% 1.37 - 2.29% 1.43 - 1.69% 1.35 - 2.51% 2.27 - 2.84% Weighted average grant-date fair value of option $5.41 $5.91 $11.56 Restricted stock Restricted shares issued under the Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically generally over a period of five years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to income on a straight-line basis over the requisite service period for the entire award. In 2020, we also granted performance based restricted stock units, with the actual number of shares earned to be determined at the end of a three year performance period based on our achievement of certain predefined targets. These targets are based upon our average return on capital employed as compared to certain competitors and a modifier based upon stock performance compared to the Oilfield Services Index (OSX). A Monte Carlo simulation that uses a probabilistic approach was performed by an actuary to measure grant date fair value. The fair value of these performance based restricted stock units is recognized on a straight-line basis over the three year performance cycle. The following table represents our restricted stock awards and restricted stock units granted, vested, and forfeited during 2020. Nonvested shares at January 1, 2020 Granted Vested Forfeited Nonvested shares at December 31, 2020 Number of Shares (in millions) Weighted Average Grant-Date Fair Value per Share 18.1 $ 8.2 (5.4) (1.9) 19.0 $ 34.72 16.53 36.97 33.66 26.26 The weighted average grant-date fair value of shares granted was $16.53 during 2020, $24.75 during 2019, and $47.43 during 2018. The total fair value of shares vested was $79 million during 2020, $107 million during 2019, and $219 million during 2018. As of December 31, 2020, there was $330 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock, which is expected to be recognized over a weighted average period of three years. Employee Stock Purchase Plan Under the ESPP, eligible employees may have up to 10% of their earnings withheld, subject to some limitations, to be used to purchase shares of our common stock. The ESPP contains four three-month offering periods commencing on January 1, April 1, July 1 and October 1 of each year. The price at which common stock may be purchased under the ESPP is equal to 90% (85% for 2019 and 2018) of the lower of the fair market value of the common stock on the commencement date or last trading day of each offering period. Under the ESPP, 74 million shares of common stock have been reserved for issuance, of which 65 million shares have been sold through the ESPP since the inception of the plan through December 31, 2020 and 9 million shares are available for future issuance. The stock to be offered may be authorized but unissued common shares or treasury shares. HAL 2020 FORM 10-K | 62 Item 8 | Notes to Consolidated Financial Statements The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. The expected volatility was a one-year historical volatility of our common stock. The assumptions and resulting fair values were as follows: Expected volatility Expected dividend yield Risk-free interest rate Year Ended December 31 2020 2019 2018 68 % 4.89 % 0.65 % 34 % 3.06 % 2.20 % 25 % 1.62 % 1.92 % Weighted average grant-date fair value per share $ 3.18 $ 5.22 $ 8.86 Note 14. Income per Share Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact was antidilutive. A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows: Millions of shares Basic weighted average common shares outstanding Dilutive effect of awards granted under our stock incentive plans Diluted weighted average common shares outstanding Antidilutive shares: Options with exercise price greater than the average market price Options which are antidilutive due to net loss position Total antidilutive shares Year Ended December 31 2020 2019 2018 881 — 881 27 1 28 875 — 875 24 1 25 875 2 877 14 — 14 Note 15. Financial Instruments and Risk Management The carrying amount of cash and equivalents, receivables and accounts payable, as reflected in the consolidated balance sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long term debt, is as follows: December 31, 2020 December 31, 2019 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 10,856 $ 700 $ 11,556 $ 9,827 $ 11,093 $ 868 $ 11,961 $ 10,327 The total fair value of our debt decreased during 2020, primarily due to the early repurchase of senior notes partially offset by lower average yields. See Note 9 for further information. Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when transactions are executed. We have no debt categorized within level 3 on the fair value hierarchy based on unobservable inputs. HAL 2020 FORM 10-K | 63 Item 8 | Notes to Consolidated Financial Statements We are exposed to market risk from changes in foreign currency exchange rates and interest rates. We selectively manage these exposures through the use of derivative instruments, including forward foreign exchange contracts, foreign exchange options and interest rate swaps. The objective of our risk management strategy is to minimize the volatility from fluctuations in foreign currency and interest rates. We do not use derivative instruments for trading purposes. The fair value of our forward contracts, options and interest rate swaps was not material as of December 31, 2020 or December 31, 2019. The counterparties to our derivatives are primarily global commercial and investment banks. Foreign currency exchange risk We have operations in many international locations and are involved in transactions denominated in currencies other than the United States dollar, our functional currency, which exposes us to foreign currency exchange rate risk. Techniques in managing foreign currency exchange risk include, but are not limited to, foreign currency borrowing and investing, and the use of currency exchange instruments. We attempt to selectively manage significant exposures to potential foreign currency exchange losses based on current market conditions, future operating activities, and the associated cost in relation to the perceived risk of loss. The purpose of our foreign currency risk management activities is to minimize the risk that our cash flows from the purchase and sale of products and services in foreign currencies will be adversely affected by changes in exchange rates. We use forward contracts and options to manage our exposure to fluctuations in the currencies of certain countries in which we do business internationally. These instruments are not treated as hedges for accounting purposes, generally have an expiration date of one year or less, and are not exchange traded. While these instruments are subject to fluctuations in value, the fluctuations are generally offset by the value of the underlying exposures being managed. The use of some of these instruments may limit our ability to benefit from favorable fluctuations in foreign currency exchange rates. Derivatives are not utilized to manage exposures in some currencies due primarily to the lack of available markets or cost considerations (non-traded currencies). We attempt to manage our working capital position to minimize foreign currency exposure in non-traded currencies and recognize that pricing for the services and products offered in these countries should account for the cost of exchange rate devaluations. We have historically incurred transaction losses in non-traded currencies. The notional amounts of open foreign exchange derivatives were $817 million at December 31, 2020 and $513 million at December 31, 2019. The notional amounts of these instruments do not generally represent amounts exchanged by the parties, and thus are not a measure of our exposure or of the cash requirements related to these contracts. The fair value of our foreign exchange derivatives as of December 31, 2020 and December 31, 2019 is included in “Other current assets” in our consolidated balance sheets and was immaterial. The fair value of these instruments is categorized within level 2 on the fair value hierarchy and was determined using a market approach with certain inputs, such as notional amounts hedged, exchange rates, and other terms of the contracts that are observable in the market or can be derived from or corroborated by observable data. Interest rate risk We are subject to interest rate risk on our existing long-term debt. Our short-term borrowings do not give rise to significant interest rate risk due to their short-term nature. We had fixed rate long-term debt totaling $9.8 billion at December 31, 2020 and $10.3 billion at December 31, 2019. We maintain an interest rate management strategy that is intended to mitigate the exposure to changes in interest rates in the aggregate for our debt portfolio. We use interest rate swaps to effectively convert a portion of our fixed rate debt to floating LIBOR-based rates. Our interest rate swaps, which expire when the underlying debt matures, are designated as fair value hedges of the underlying debt and are determined to be highly effective. These derivative instruments are marked to market with gains and losses recognized currently in interest expense to offset the respective gains and losses recognized on changes in the fair value of the hedged debt. As of December 31, 2020, we had an interest rate swap relating to one of our debt instruments with a total notional amount of $100 million. The fair value of this interest rate swap as of December 31, 2020 and December 31, 2019 is included in “Other assets” in our consolidated balance sheets and was immaterial. The fair value of this interest rate swap is categorized within level 2 on the fair value hierarchy and was determined using a market approach with inputs, such as the notional amount, LIBOR rate spread, and settlement terms that are observable in the market or can be derived from or corroborated by observable data. HAL 2020 FORM 10-K | 64 Item 8 | Notes to Consolidated Financial Statements Credit risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents and trade receivables. It is our practice to place our cash equivalents in high quality investments with various institutions. Our trade receivables are from a broad and diverse group of customers and are generally not collateralized. As of December 31, 2020, 32% of our net trade receivables were from customers in the United States. As of December 31, 2019, 36% of our net trade receivables were from customers in the United States. We maintain an allowance for credit losses based upon several factors, including historical collection experience, current aging status of the customer accounts and financial condition of our customers. See Note 5 for further information. We do not have any significant concentrations of credit risk with any individual counterparty to our derivative contracts. We select counterparties to those contracts based on our belief that each counterparty’s profitability, balance sheet, and capacity for timely payment of financial commitments is unlikely to be materially adversely affected by foreseeable events. Note 16. Retirement Plans Our company and subsidiaries have various plans that cover a significant number of our employees. These plans include defined contribution plans, defined benefit plans, and other postretirement plans: - our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of pension benefits the participant is to receive. Contributions to these plans are based on a percentage of pre-tax income, after-tax income, or discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $100 million in 2020, $206 million in 2019, and $193 million in 2018. The decrease in expense from 2019 to 2020 was due to significant headcount reductions during the year ended December 31, 2020, coupled with the suspension of discretionary contributions in 2020. - our defined benefit plans, which include both funded and unfunded pension plans, define an amount of pension benefit to be provided, usually as a function of age, years of service and/or compensation. The unfunded obligations and net periodic benefit cost of our United States defined benefit plans were not material for the periods presented; and - our postretirement plans other than pensions are offered to specific eligible employees. The accumulated benefit obligations and net periodic benefit cost for these plans were not material for the periods presented. Funded status For our international pension plans, at December 31, 2020, the projected benefit obligation was $1.2 billion and the fair value of plan assets was $1.1 billion, which resulted in an unfunded obligation of $152 million. At December 31, 2019, the projected benefit obligation was $1.1 billion and the fair value of plan assets was $1.0 billion, which resulted in an unfunded obligation of $111 million. The accumulated benefit obligation for our international plans was $1.1 billion at December 31, 2020 and $1.0 billion at December 31, 2019. The following table presents additional information about our international pension plans. Millions of dollars Amounts recognized on the Consolidated Balance Sheets Other Assets Accrued employee compensation and benefits Employee compensation and benefits Pension plans in which projected benefit obligation exceeded plan assets Projected benefit obligation Fair value of plan assets Pension plans in which accumulated benefit obligation exceeded plan assets Accumulated benefit obligation Fair value of plan assets $ $ $ December 31 2020 2019 45 $ 8 189 228 $ 31 126 $ 25 85 7 189 214 18 121 18 Fair value measurements of plan assets The fair value of our plan assets categorized within level 1 on the fair value hierarchy is based on quoted prices in active markets for identical assets. The fair value of our plan assets categorized within level 2 on the fair value hierarchy is HAL 2020 FORM 10-K | 65 based on significant observable inputs for similar assets. The fair value of our plan assets categorized within level 3 on the fair value hierarchy is based on significant unobservable inputs. The following table sets forth the fair values of assets held by our international pension plans by level within the fair Item 8 | Notes to Consolidated Financial Statements value hierarchy. Millions of dollars Cash and equivalents Equity funds (b) Bond funds (c) Alternatives funds (d) Real estate funds (e) Other investments (f) Fair value of plan assets at December 31, 2020 Cash and equivalents Equity funds (b) Bond funds (c) Alternatives funds (d) Real estate funds (e) Other investments (f) Level 1 Level 2 Level 3 Net Asset Value (a) Total $ $ $ — $ — — — — 5 5 $ — $ — — — — 6 136 $ 170 319 4 68 21 718 $ 151 $ 118 292 — 74 21 — $ — — — — 14 14 $ — $ — — — — 15 — $ — 149 163 28 — 340 $ — $ — 99 197 29 — 136 170 468 167 96 40 1,077 151 118 391 197 103 42 Fair value of plan assets at December 31, 2019 $ 6 $ 656 $ 15 $ 325 $ 1,002 (a) Represents investments measured at fair value using the Net Asset Value (NAV) per share practical expedient and thus has not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of our international pension plans assets. (b) Strategy of equity funds is to invest in diversified funds of global common stocks. (c) Strategy of bond funds is to invest in diversified funds of fixed income securities of varying geographies and credit quality. (d) Strategy of alternative funds is to invest in a fund of diversifying investments, including but not limited to reinsurance, commodities, and currencies. (e) Strategy of real estate funds is to invest in diversified funds of real estate investment trusts and private real estate. (f) Other investments primarily include investments in insurance contracts, balanced funds, and government bonds. Risk management practices for these plans include diversification by issuer, industry and geography, as well as the use of multiple asset classes and investment managers within each asset class. Our investment strategy for our United Kingdom pension plan, which constituted 81% of our international pension plans’ projected benefit obligation at December 31, 2020 and is no longer accruing service benefits, aims to achieve full funding of the benefit obligation, with the plan's assets increasingly composed of investments whose cash flows match the projected liabilities of the plan. Net periodic benefit cost Net periodic benefit cost for our international pension plans was $30 million in 2020, $23 million in 2019, and $32 million in 2018. Actuarial assumptions Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension plans at December 31 were as follows: Discount rate Rate of compensation increase 2020 1.8% 5.9% 2019 2.5% 6.0% Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international pension plans for the years ended December 31 were as follows: Discount rate Expected long-term return on plan assets Rate of compensation increase 2020 2.5% 3.5% 6.0% 2019 3.3% 4.4% 5.8% 2018 2.8% 4.1% 5.5% HAL 2020 FORM 10-K | 66 Item 8 | Notes to Consolidated Financial Statements Assumed long-term rates of return on plan assets, discount rates for estimating benefit obligations, and rates of compensation increases vary by plan according to local economic conditions. Where possible, discount rates were determined based on the prevailing market rates of a portfolio of high-quality debt instruments with maturities matching the expected timing of the payment of the benefit obligations. Expected long-term rates of return on plan assets were determined based upon an evaluation of our plan assets and historical trends and experience, taking into account current and expected market conditions. Other information Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In certain countries the funding requirements are mandatory, while in other countries they are discretionary. We currently expect to contribute $17 million to our international pension plans in 2021. Benefit payments. Expected benefit payments over the next 10 years for our international pension plans are as follows: $46 million in 2021, $44 million in 2022, $45 million in 2023, $45 million in 2024, $47 million in 2025, and an aggregate $266 million in years 2026 through 2030. HAL 2020 FORM 10-K | 67 Item 8 | Quarterly Financial Data HALLIBURTON COMPANY Quarterly Financial Data (Unaudited) Quarter Millions of dollars except per share data First Second Third Fourth Year 2020 Revenue Operating income (loss) Net loss Net loss attributable to company Basic and diluted net loss per share Cash dividends paid per share 2019 Revenue Operating income (loss) Net income (loss) Net income (loss) attributable to company Basic and diluted net income (loss) per share Cash dividends paid per share $ 5,037 $ 3,196 $ 2,975 $ 3,237 $ 14,445 (571) (1,911) (1,015) (1,681) (1,017) (1,676) 142 (19) (17) (1.16) (1.91) (0.02) 0.18 0.045 0.045 (96) (227) (235) (0.27) 0.045 (2,436) (2,942) (2,945) (3.34) 0.315 $ 5,737 $ 5,930 $ 5,550 $ 5,191 $ 22,408 365 152 152 0.17 0.18 303 77 75 0.09 0.18 536 296 295 0.34 0.18 (1,652) (1,654) (1,653) (1.88) 0.18 (448) (1,129) (1,131) (1.29) 0.72 Note: Results for 2020 and 2019 include charges related to asset impairments and other charges. See Note 2 to the consolidated financial statements for further information. HAL 2020 FORM 10-K | 68 Item 9 | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None. Item 9(a). Controls and Procedures. In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2020 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. There has been no change in our internal control over financial reporting that occurred during the three months ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. See page 36 for Management’s Report on Internal Control Over Financial Reporting and page 39 for Report of Independent Registered Public Accounting Firm on its assessment of our internal control over financial reporting. Item 9(b). Other Information. None. HAL 2020 FORM 10-K | 69 Item 10 | Directors, Executive Officers and Corporate Governance PART III Item 10. Directors, Executive Officers, and Corporate Governance. The information required for the directors of the Registrant is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the captions “Election of Directors” and “Involvement in Certain Legal Proceedings.” The information required for the executive officers of the Registrant is included under Part I on pages 6 through 7 of this annual report. The information required for a delinquent form required under Section 16(a) of the Securities Exchange Act of 1934 is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Delinquent Section 16(a) Reports,” to the extent any disclosure is required. The information for our code of ethics is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Corporate Governance.” The information regarding our Audit Committee and the independence of its members, along with information about the audit committee financial expert(s) serving on the Audit Committee, is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “The Board of Directors and Standing Committees of Directors.” Item 11. Executive Compensation. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the captions “Compensation Discussion and Analysis,” “Compensation Committee Report,” “Summary Compensation Table,” “Grants of Plan-Based Awards in Fiscal 2020,” “Outstanding Equity Awards at Fiscal Year End 2020,” “2020 Option Exercises and Stock Vested,” “2020 Nonqualified Deferred Compensation,” “Employment Contracts and Change-in-Control Arrangements,” “Post-Termination or Change-in-Control Payments,” “Equity Compensation Plan Information,” and “Directors’ Compensation.” Item 12(a). Security Ownership of Certain Beneficial Owners. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Stock Ownership of Certain Beneficial Owners and Management.” Item 12(b). Security Ownership of Management. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Stock Ownership of Certain Beneficial Owners and Management.” Item 12(c). Changes in Control. Not applicable. Item 12(d). Securities Authorized for Issuance Under Equity Compensation Plans. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Equity Compensation Plan Information.” Item 13. Certain Relationships and Related Transactions, and Director Independence. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Corporate Governance” to the extent any disclosure is required, and under the caption “The Board of Directors and Standing Committees of Directors.” Item 14. Principal Accounting Fees and Services. This information is incorporated by reference to the Halliburton Company Proxy Statement for our 2021 Annual Meeting of Shareholders (File No. 001-03492) under the caption “Fees Paid to KPMG LLP.” HAL 2020 FORM 10-K | 70  PART IV Item 15. Exhibits. Item 15 | Exhibits 1. 2. 3. Financial Statements: The reports of the Independent Registered Public Accounting Firm and the financial statements of Halliburton Company are included within Part II, Item 8 of this Annual Report on Form 10-K. Financial Statement Schedules: The schedules listed in Rule 5-04 of Regulation S-X (17 CFR 210.5-04) have been omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto. Exhibits: Exhibit Number Exhibits 3.1 3.2 4.1 4.2 4.3 4.4 4.5 Restated Certificate of Incorporation of Halliburton Company filed with the Secretary of State of Delaware on May 30, 2006 (incorporated by reference to Exhibit 3.1 to Halliburton’s Form 8-K filed June 5, 2006, File No. 001-03492). By-laws of Halliburton Company revised effective December 7, 2017 (incorporated by reference to Exhibit 3.1 to Halliburton’s Form 8-K filed December 12, 2017, File No. 001-03492). Form of debt security of 8.75% Debentures due February 12, 2021 (incorporated by reference to Exhibit 4(a) to the Form 8-K of Halliburton Company, now known as Halliburton Energy Services, Inc. (the Predecessor), dated as of February 20, 1991, File No. 001-03492). Senior Indenture dated as of January 2, 1991 between the Predecessor and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), as Trustee (incorporated by reference to Exhibit 4(b) to the Predecessor’s Registration Statement on Form S-3 (Registration No. 33-38394) originally filed with the Securities and Exchange Commission on December 21, 1990), as supplemented and amended by the First Supplemental Indenture dated as of December 12, 1996 among the Predecessor, Halliburton and the Trustee (incorporated by reference to Exhibit 4.1 of Halliburton’s Registration Statement on Form 8-B dated December 12, 1996, File No. 001-03492). Resolutions of the Predecessor’s Board of Directors adopted at a meeting held on February 11, 1991 and of the special pricing committee of the Board of Directors of the Predecessor adopted at a meeting held on February 11, 1991 and the special pricing committee’s consent in lieu of meeting dated February 12, 1991 (incorporated by reference to Exhibit 4(c) to the Predecessor’s Form 8-K dated as of February 20, 1991, File No. 001-03492). Second Senior Indenture dated as of December 1, 1996 between the Predecessor and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), as Trustee, as supplemented and amended by the First Supplemental Indenture dated as of December 5, 1996 between the Predecessor and the Trustee and the Second Supplemental Indenture dated as of December 12, 1996 among the Predecessor, Halliburton and the Trustee (incorporated by reference to Exhibit 4.2 of Halliburton’s Registration Statement on Form 8-B dated December 12, 1996, File No. 001-03492). Third Supplemental Indenture dated as of August 1, 1997 between Halliburton and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), as Trustee, to the Second Senior Indenture dated as of December 1, 1996 (incorporated by reference to Exhibit 4.7 to Halliburton’s Form 10-K for the year ended December 31, 1998, File No. 001-03492). HAL 2020 FORM 10-K | 71 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 Item 15 | Exhibits Fourth Supplemental Indenture dated as of September 29, 1998 between Halliburton and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), as Trustee, to the Second Senior Indenture dated as of December 1, 1996 (incorporated by reference to Exhibit 4.8 to Halliburton’s Form 10-K for the year ended December 31, 1998, File No. 001-03492). Resolutions of Halliburton’s Board of Directors adopted by unanimous consent dated December 5, 1996 (incorporated by reference to Exhibit 4(g) of Halliburton’s Form 10-K for the year ended December 31, 1996, File No. 001-03492). Form of debt security of 6.75% Notes due February 1, 2027 (incorporated by reference to Exhibit 4.1 to Halliburton’s Form 8-K dated as of February 11, 1997, File No. 001-03492). Copies of instruments that define the rights of holders of miscellaneous long-term notes of Halliburton Company and its subsidiaries have not been filed with the Commission. Halliburton Company agrees to furnish copies of these instruments upon request. Form of Indenture dated as of April 18, 1996 between Dresser and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), as Trustee (incorporated by reference to Exhibit 4 to Dresser’s Registration Statement on Form S-3/A filed on April 19, 1996, Registration No. 333-01303), as supplemented and amended by Form of First Supplemental Indenture dated as of August 6, 1996 between Dresser and The Bank of New York Trust Company, N.A. (as successor to Texas Commerce Bank National Association), Trustee, for 7.60% Debentures due 2096 (incorporated by reference to Exhibit 4.1 to Dresser’s Form 8-K filed on August 9, 1996, File No. 1-4003). Second Supplemental Indenture dated as of October 27, 2003 between DII Industries, LLC and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank), as Trustee, to the Indenture dated as of April 18, 1996 (incorporated by reference to Exhibit 4.15 to Halliburton’s Form 10-K for the year ended December 31, 2003, File No. 001-03492). Third Supplemental Indenture dated as of December 12, 2003 among DII Industries, LLC, Halliburton Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank), as Trustee, to the Indenture dated as of April 18, 1996, (incorporated by reference to Exhibit 4.16 to Halliburton’s Form 10-K for the year ended December 31, 2003, File No. 001-03492). Indenture dated as of October 17, 2003 between Halliburton Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank), as Trustee (incorporated by reference to Exhibit 4.1 to Halliburton’s Form 10-Q for the quarter ended September 30, 2003, File No. 001-03492). Second Supplemental Indenture dated as of December 15, 2003 between Halliburton Company and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank), as Trustee, to the Senior Indenture dated as of October 17, 2003 (incorporated by reference to Exhibit 4.27 to Halliburton’s Form 10-K for the year ended December 31, 2003, File No. 001-03492). 4.15 Form of note of 7.6% debentures due 2096 (included as Exhibit A to Exhibit 4.14 above). 4.16 Fourth Supplemental Indenture, dated as of September 12, 2008, between Halliburton Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank, to the Senior Indenture dated as of October 17, 2003 (incorporated by reference to Exhibit 4.2 to Halliburton’s Form 8-K filed September 12, 2008, File No. 001-03492). 4.17 Form of Global Note for Halliburton’s 6.70% Senior Notes due 2038 (included as part of Exhibit 4.16). 4.18 Fifth Supplemental Indenture, dated as of March 13, 2009, between Halliburton Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank, to the Senior Indenture dated as of October 17, 2003 (incorporated by reference to Exhibit 4.2 to Halliburton’s Form 8-K filed March 13, 2009, File No. 001-03492). HAL 2020 FORM 10-K | 72 Item 15 | Exhibits 4.19 Form of Global Note for Halliburton’s 7.45% Senior Notes due 2039 (included as part of Exhibit 4.18). 4.20 Sixth Supplemental Indenture, dated as of November 14, 2011, between Halliburton Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank, to the Senior Indenture dated as of October 17, 2003 (incorporated by reference to Exhibit 4.2 to Halliburton’s Form 8-K filed November 14, 2011, File No. 001-03492). 4.21 Form of Global Note for Halliburton’s 3.25% Senior Notes due 2021 (included as part of Exhibit 4.20). 4.22 Form of Global Note for Halliburton’s 4.50% Senior Notes due 2041 (included as part of Exhibit 4.20). 4.23 4.24 4.25 4.26 4.27 4.28 4.29 Seventh Supplemental Indenture, dated as of August 5, 2013, between Halliburton Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank (incorporated by reference to Exhibit 4.2 of Halliburton’s Form 8-K filed August 5, 2013, File No. 001-03492). Form of Global Note for Halliburton’s 3.50% Senior Notes due 2023 (included as part of Exhibit 4.23). Form of Global Note for Halliburton’s 4.75% Senior Notes due 2043 (included as part of Exhibit 4.23). Eighth Supplemental Indenture, dated as of November 13, 2015, between Halliburton Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank (incorporated by reference to Exhibit 4.2 to Halliburton’s Form 8-K filed November 13, 2015, File No. 001-03492). Form of Global Note for Halliburton’s 3.800% Senior Notes due 2025 (included as part of Exhibit 4.26). Form of Global Note for Halliburton’s 4.850% Senior Notes due 2035 (included as part of Exhibit 4.26). Form of Global Note for Halliburton’s 5.000% Senior Notes due 2045 (included as part of Exhibit 4.26). * 4.30 Description of Registrant's Securities. 4.31 Ninth Supplemental Indenture, dated as of March 3, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank (incorporated by reference to Exhibit 4.2 to Halliburton’s Form 8-K filed March 3, 2020, File No. 001-03492). 4.32 Form of Global Note for the Company’s 2.920% Senior Notes due 2030 (included as part of Exhibit 4.31). † † 10.1 10.2 † 10.3 Halliburton Company Restricted Stock Plan for Non-Employee Directors (incorporated by reference to Appendix B of the Predecessor’s proxy statement dated March 23, 1993, File No. 001-03492). Dresser Industries, Inc. Deferred Compensation Plan, as amended and restated effective January 1, 2000 (incorporated by reference to Exhibit 10.16 to Halliburton’s Form 10-K for the year ended December 31, 2000, File No. 001-03492). ERISA Excess Benefit Plan for Dresser Industries, Inc., as amended and restated effective June 1, 1995 (incorporated by reference to Exhibit 10.7 to Dresser’s Form 10-K for the year ended October 31, 1995, File No. 1-4003). 10.4 Form of Indemnification Agreement for Officers (incorporated by reference to Exhibit 10.1 to Halliburton’s Form 8-K filed August 3, 2007, File No. 001-03492). HAL 2020 FORM 10-K | 73 Item 15 | Exhibits 10.5 10.6 10.7 † 10.8 † 10.9 Form of Indemnification Agreement for Directors (incorporated by reference to Exhibit 10.2 to Halliburton’s Form 8-K filed August 3, 2007, File No. 001-03492). Form of Indemnification Agreement for Officers (first elected after January 1, 2013) (incorporated by reference to Exhibit 10.2 to Halliburton's Form 10-Q for the quarter ended March 31, 2013, File No. 001-03492). Form of Indemnification Agreement for Directors (first elected after January 1, 2013) (incorporated by reference to Exhibit 10.1 of Halliburton’s Form 8-K filed March 22, 2013, File No. 001-03492). Halliburton Company Pension Equalizer Plan, as amended and restated effective March 1, 2007 (incorporated by reference to Exhibit 10.8 to Halliburton’s Form 10-Q for the quarter ended September 30, 2007, File No. 001-03492). Halliburton Company Directors' Deferred Compensation Plan, as amended and restated effective May 16, 2012 (incorporated by reference to Exhibit 10.5 to Halliburton's Form 10-Q for the quarter ended June 30, 2012, File No. 001-03492). † 10.10 Halliburton Company Employee Stock Purchase Plan, as amended and restated effective February 24, 2015 (incorporated by reference to Appendix C of Halliburton’s proxy statement filed April 7, 2015, File No. 001-03492). † 10.11 First Amendment to Restricted Stock Plan for Non-Employee Directors of Halliburton Company, effective December 7, 2011 (incorporated by reference to Exhibit 10.41 to Halliburton’s Form 10-K for the year ended December 31, 2011, File No. 001-03492). † 10.12 † 10.13 Second Amendment to Restricted Stock Plan for Non-Employee Directors of Halliburton Company, effective May 16, 2012 (incorporated by reference to Exhibit 10.4 to Halliburton's Form 10-Q for the quarter ended June 30, 2012, File No. 001-03492). Third Amendment to Restricted Stock Plan for Non-Employee Directors of Halliburton Company, effective December 1, 2012 (incorporated by reference to Exhibit 10.44 to Halliburton’s Form 10-K for the year ended December 31, 2012, File No. 001-03492). † 10.14 First Amendment dated December 1, 2012 to Halliburton Company Directors' Deferred Compensation Plan, as amended and restated effective May 16, 2012 (incorporated by reference to Exhibit 10.45 to Halliburton’s Form 10-K for the year ended December 31, 2012, File No. 001-03492). † † † † 10.15 10.16 10.17 10.18 Executive Agreement (Myrtle L. Jones) (incorporated by reference to Exhibit 10.1 to Halliburton's Form 10- Q for the quarter ended March 31, 2013, File No. 001-03492). Executive Agreement (Timothy McKeon) (incorporated by reference to Exhibit 10.49 to Halliburton’s Form 10-K for the year ended December 31, 2013, File No. 001-03492). Executive Agreement (Charles E. Geer, Jr.) (incorporated by reference to Exhibit 10.2 to Halliburton’s Form 8-K filed December 9, 2014, File No. 001-03492). Halliburton Annual Performance Pay Plan, as amended and restated effective January 1, 2019) (incorporated by reference to Exhibit 10.7 to Halliburton's Form 10-Q for the quarter ended June 30, 2019, File No. 001-03492). † 10.19 Form of Non-Employee Director Restricted Stock Agreement (Directors Plan) (incorporated by reference as Exhibit 99.5 of Halliburton's Form S-8 filed May 21, 2009, Registration No. 333-159394). HAL 2020 FORM 10-K | 74 Item 15 | Exhibits † 10.20 Form of Non-Employee Director Restricted Stock Agreement (Stock and Incentive Plan) (incorporated by reference to Exhibit 10.43 to Halliburton's Form 10-K for the year ended December 31, 2011, File No. 001-03492). † † † † † † † † † † † † † † † 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 Executive Agreement (Joe D. Rainey) (incorporated by reference to Exhibit 10.1 to Halliburton's Form 8-K filed December 12, 2017, File No. 001-03492). Executive Agreement (Anne Lyn Beaty) (incorporated by reference to Exhibit 10.1 to Halliburton's Form 10- Q for the quarter ended March 31, 2017, File No. 001-03492). Executive Agreement (Jeffrey A. Miller) (incorporated by reference to Exhibit 10.1 to Halliburton's Form 8- K filed June 5, 2017, File No. 001-03492). Halliburton Company Stock and Incentive Plan, as amended and restated effective February 11, 2020 (incorporated by reference to Appendix A of Halliburton's proxy statement filed April 7, 2020, File No. 001-03492). Form of Nonstatutory Stock Option Agreement (U.S.) (incorporated by reference as Exhibit 99.2 of Halliburton's Form S-8 filed May 17, 2019, Registration No. 333-231571). Form of Nonstatutory Stock Option Agreement (International) (incorporated by reference as Exhibit 99.3 of Halliburton's Form S-8 filed May 17, 2019, Registration No. 333-231571). Form of Restricted Stock Agreement (incorporated by reference as Exhibit 99.2 of Halliburton's Form S-8 filed July 24, 2020, Registration No. 333-240075). Form of Restricted Stock Unit Agreement (International) (incorporated by reference as Exhibit 99.3 of Halliburton's Form S-8 filed July 24, 2020, Registration No. 333-240075). Form of Restricted Stock Unit Agreement (U.S. Expat) (incorporated by reference as Exhibit 99.4 of Halliburton's Form S-8 filed July 24, 2020, Registration No. 333-240075). Executive Agreement (Eric J. Carre) (incorporated by reference as Exhibit 10.46 of Halliburton's Form 10- K for the year ended December 31, 2017, File No. 001-03492). Executive Agreement (Lawrence J. Pope) (incorporated by reference as Exhibit 10.47 of Halliburton's Form 10-K for the year ended December 31, 2017, File No. 001-03492). Executive Agreement (Lance Loeffler) (incorporated by reference as Exhibit 10.1 of Halliburton’s Form 8-K filed December 11, 2018, File No. 001-03492). Second Amendment dated January 1, 2019, to Halliburton Company Directors’ Deferred Compensation Plan, as amended and restated effective May 16, 2012 (incorporated by reference as Exhibit 10.47 of Halliburton's Form 10-K for the year ended December 31, 2018, File No. 001-03492). Executive Agreement (Mark J. Richard) (incorporated by reference as Exhibit 10.48 of Halliburton’s Form 10-K for the year ended December 31, 2018, File No. 001-03492). Halliburton Company Performance Unit Program, as amended and restated effective January 1, 2019 (incorporated by reference as Exhibit 10.8 of Halliburton's Form 10-Q for the quarter ended June 30, 2019, File No. 001-03492). HAL 2020 FORM 10-K | 75 Item 15 | Exhibits 10.36 U.S. $3,500,000,000 Five Year Revolving Credit Agreement among Halliburton, as Borrower, the Banks party thereto, and Citibank, N.A., as Agent (incorporated by reference to Exhibit 10.1 to Halliburton’s Form 8-K filed March 7, 2019, File No. 001-03492). † 10.37 Halliburton Company Supplemental Executive Retirement Plan, as amended and restated effective December 5, 2019 (incorporated by reference as Exhibit 10.41 of Halliburton's Form 10-K for the year ended December 31, 2019, File No. 001-03492). † 10.38 Halliburton Company Benefit Restoration Plan, as amended and restated effective December 5, 2019 (incorporated by reference as Exhibit 10.42 of Halliburton's Form 10-K for the year ended December 31, 2019, File No. 001-03492). † 10.39 Halliburton Elective Deferral Plan, as amended and restated effective December 5, 2019 (incorporated by reference as Exhibit 10.43 of Halliburton's Form 10-K for the year ended December 31, 2019, File No. 001-03492). † 10.40 First Amendment dated December 5, 2019 to Halliburton Company Employee Stock Purchase Plan, as amended and restated effective February 24, 2015 (incorporated by reference as Exhibit 10.44 of Halliburton's Form 10-K for the year ended December 31, 2019, File No. 001-03492). 10.41 Underwriting Agreement, dated February 19, 2020, among the Company and J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Mizuho Securities USA LLC, as representatives of the several underwriters named therein (incorporated by reference to Exhibit 1.1 to Halliburton’s Form 8-K filed February 20, 2020, File No. 001-03492). *† 10.42 Executive Agreement (Van H. Beckwith). *† 10.43 Form of Non-Management Director Restricted Stock Unit Agreement (Stock and Incentive Plan). * * * * * 21.1 Subsidiaries of the Registrant. 23.1 Consent of KPMG LLP. 24.1 Powers of attorney for the following directors signed in January 2021: Abdulaziz F. Al Khayyal William E. Albrecht M. Katherine Banks Alan M. Bennett Milton Carroll Nance K. Dicciani Murry S. Gerber Patricia Hemingway Hall Robert A. Malone 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ** 32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** 32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. HAL 2020 FORM 10-K | 76 95 Mine Safety Disclosures. 101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document Item 15 | Exhibits 101.SCH XBRL Taxonomy Extension Schema Document 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB XBRL Taxonomy Extension Label Linkbase Document 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF XBRL Taxonomy Extension Definition Linkbase Document 104 Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document * * * * * * * * * Filed with this Form 10-K. ** Furnished with this Form 10-K. † Management contracts or compensatory plans or arrangements. Item 16. Form 10-K Summary. None. HAL 2020 FORM 10-K | 77 SIGNATURES As required by Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has authorized this report to be signed on its behalf by the undersigned authorized individuals on this 5th day of February, 2021. HALLIBURTON COMPANY By /s/ Jeffrey A. Miller Jeffrey A. Miller Chairman of the Board, President and Chief Executive Officer As required by the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities indicated on this 5th day of February, 2021. Signature Title /s/ Jeffrey A. Miller Jeffrey A. Miller Chairman of the Board, Director, President and Chief Executive Officer /s/ Lance Loeffler Lance Loeffler Executive Vice President and Chief Financial Officer /s/ Charles E. Geer, Jr. Charles E. Geer, Jr. Senior Vice President and Chief Accounting Officer HAL 2020 FORM 10-K | 78 Title Director Director Director Director Director Director Director Director Director Signature * Abdulaziz F. Al Khayyal Abdulaziz F. Al Khayyal * William E. Albrecht William E. Albrecht * M. Katherine Banks M. Katherine Banks * Alan M. Bennett Alan M. Bennett * Milton Carroll Milton Carroll * Nance K. Dicciani Nance K. Dicciani * Murry S. Gerber Murry S. Gerber * Patricia Hemingway Hall Patricia Hemingway Hall * Robert A. Malone Robert A. Malone /s/ Van H. Beckwith *By Van H. Beckwith, Attorney-in-fact HAL 2020 FORM 10-K | 79 This page intentionally left blank This page intentionally left blank This page intentionally left blank Directions to the Halliburton Annual Meeting of Shareholders The Halliburton North Belt Facility is located on the North Sam Houston Parkway (Beltway 8 Tollway) south feeder between Aldine Westfield and JFK Boulevard. 3000 N. Sam Houston Parkway East Houston, Texas 77032 281-871-4000 From I-45 From I-69 / US 59 and IAH zz Take the Sam Houston Parkway East zz Take the Sam Houston Parkway West zz Exit JFK Blvd zz Exit Aldine Westfield The main entrance to the North Belt facility will be on your right, about halfway between Aldine Westfield and JFK Blvd. zz “U-Turn” at Aldine Westfield and proceed east on the Sam Houston Parkway feeder 281.871.2699 www.halliburton.com ©2021 Halliburton. All Rights Reserved. Printed in the USA 

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