SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
MARCH 14, 2002
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
3600 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-3391
(Address of principal executive offices)
Registrant's telephone number,
including area code - 214/978-2600
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
The registrant may, at its option, report under this item any events, with
respect to which information is not otherwise called for by this form, that the
registrant deems of importance to security holders.
On March 14, 2002 registrant issued a press release entitled "Halliburton
Responds to Court Order".
The following summarizes that press release:
Registrant announced that on March 13, 2002, the Delaware Supreme Court
issued an Order affirming without opinion the judgment of the Court of Chancery
in litigation between Highlands Insurance Company and registrant. The Chancery
Court had held that the fixed-cost primary insurance policies issued by
Highlands Insurance Company to Brown & Root, Inc. from 1958 until 1986
terminated on January 23, 1996 at the time of the spin-off of Highlands
Insurance Group, Inc. by registrant. There is more than $2 billion of excess
coverage above the Highlands primary coverage. Based on a legal opinion written
by outside counsel that registrant would prevail in the Highlands litigation,
registrant determined to carry approximately $80 million in claim receivables
against the Highlands insurance policies for settlement and defense costs and
pending asbestos litigation. These receivables will likely be written off in the
first quarter of 2002 and if so will result in an after tax reduction in income
of $0.11 per diluted share.
Please see the full text of the attached press release for further details.
Item 7. Financial Statements and Exhibits
List below the financial statements, pro forma financial information and
exhibits, if any, filed as part of this report.
(c) Exhibits.
Exhibit 20 - Press release dated March 14, 2002.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: March 14, 2002 By: /s/ Susan S. Keith
---------------------------------------
Susan S. Keith
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Description
20 Press Release Dated March 14, 2002
Incorporated by Reference
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FOR IMMEDIATE RELEASE CONTACT: Wendy Hall
March 14, 2002 Halliburton, Public Relations
713-676-5227
Cedric Burgher
Halliburton, Investor Relations
713-676-4608
HALLIBURTON RESPONDS TO COURT ORDER
DALLAS, Texas - Halliburton Company announces that, on March 13, 2002, the
Delaware Supreme Court issued an Order affirming without opinion the judgment of
the Court of Chancery in litigation between Highlands Insurance Company and
Halliburton. The Chancery Court had held that the fixed-cost primary insurance
policies issued by Highlands Insurance Company to Brown & Root, Inc. from 1958
until 1986 terminated on January 23, 1996 at the time of the spin-off of
Highlands Insurance Group, Inc. by Halliburton. These policies provided primary
insurance for the approximately 30,000 Brown & Root asbestos claims noted in
Halliburton's Annual Report on Form 10-K filed March 12, 2002. This primary
coverage represents only a portion of total insurance covering Brown & Root
asbestos claims. There is more than $2 billion of excess coverage above the
Highlands primary coverage. As reported in the Form 10-K, based on a written
legal opinion by outside counsel that Halliburton would prevail in the Highlands
litigation, Halliburton determined to carry approximately $80 million in claim
receivables against the Highlands insurance policies for settlement and defense
costs and pending asbestos litigation. These receivables will likely be written
off in the first quarter of 2002 and if so will result in an after tax reduction
in income of $0.11 per diluted share. Approximately 45% of these receivables
relate to payments of settlement and defense costs already made by Halliburton.
The remainder is management's estimate of insurance recoveries against future
settlement payments on existing Brown & Root asbestos claims.
"We are surprised by the decision of the Court and we are currently
reviewing our options," said Dave Lesar, Chairman and CEO, Halliburton. "The
actions of the Court only affect claims that are related to Brown & Root
operations, which represent less than 11 percent of the total 274,000 claims
outstanding at the end of last year."
Doug Foshee Executive Vice President and Chief Financial Officer of
Halliburton will hold a telephone conference on March 14, 2002 at 9:00 am (CST)
to discuss these matters. If you plan to participate in the teleconference,
please telephone (719) 457-2727 ten to fifteen minutes prior to starting time
and refer to confirmation code 792467.
Halliburton Company, founded in 1919, is one of the world's largest
providers of products and services to the petroleum and energy industries. The
company serves its customers with a broad range of products and services through
its Energy Services Group and Engineering and Construction Group business
segments. The company's World Wide Web site can be accessed at
www.halliburton.com.
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