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)
February 2, 2004
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
1401 McKinney, Suite 2400
Houston, Texas 77010
(Address of principal executive offices)
Registrant's telephone number,
including area code - 713-759-2600
INFORMATION TO BE INCLUDED IN REPORT
Item 9. Regulation FD Disclosure
On February 2, 2004 registrant issued a press release entitled
"Halliburton Says War-Time Conditions Make It Hard to `Guess Who Is Coming To
Dinner.'"
The text of the press release is as follows:
HALLIBURTON SAYS WAR-TIME CONDITIONS MAKE IT HARD TO
"GUESS WHO IS COMING TO DINNER"
-- Company working with government to improve estimates on meal preparations
for troops --
HOUSTON, Texas - Halliburton today said it is working with the US government to
improve meal planning and preparation for troops in the Middle East. The issue
was raised following a routine audit question from the Defense Contracting Audit
Agency (DCAA). There have been no conclusions reached and this is a normal part
of the audit process for the DCAA to raise questions and request additional
materials.
What is certainly unusual, unprecedented and disturbing is for unidentified
"sources" to publicly comment on specifics of questions until conversations with
DCAA are complete.
"We have served more than 50 million meals to soldiers in the past year and any
assignment of this size is, of course, going to be subject to question. This is
not about charges. This is about finding a good way to estimate the number of
meals so soldiers can get fed," said Randy Harl, president and chief executive
officer, KBR. "We plan, purchase and prepare meals based on estimates. At times,
soldiers are on leave or troops are shifted to other locations. KBR is working
with the government to improve the counting method."
It is difficult to determine how many people will be at the dinner table in the
middle of a war zone and must be based on estimates. This is not a neighborhood
restaurant where you can quickly total up all the dinner tabs.
This is a complicated logistical operation to make sure the soldiers are fed.
Security issues are a major factor in determining an estimate for meals. For
example, commanders do not want troops "signing in" for meals due to the concern
for safety of the soldiers; nor do they want troops waiting in lines to get fed.
It is important to keep in mind that KBR also provides meals for other civilians
that support the military and all of these dining patrons are constantly on the
move in the region.
The government works with KBR to determine the count for the dining facilities
in Kuwait and Iraq.
KBR agreed to withhold from future billing of the subcontractor's charges while
the company works with the government to improve the counting method. KBR has a
responsibility to clients and it is important to understand that this is not any
sort of "admission". It is an agreement to temporarily delay billing while KBR
and the government jointly determine the best way to estimate how many meals to
prepare. It is part of KBR's job to be good stewards of taxpayers' dollars.
When KBR was tasked to provide dining services in Iraq and Kuwait the first
priority was getting food to the troops in a dangerous and hostile environment.
Halliburton is resolved to support the military while also carrying out the
important responsibility to maintain oversight in the expenditure of funds. Our
employees have had a significant and positive impact on the quality of life for
troops and are risking their lives everyday, while providing troops housing,
meals, mail and other vital services.
KBR will continue to work with all government agencies to establish that the
company's contracts are not only good for the United States but also that
Halliburton is the best and most qualified contractor to perform these difficult
and dangerous tasks. This is a routine process in government contracting. KBR
has always worked with the DCAA and will continue to work with them in the
future. At times, KBR and DCAA have disagreed on issues that were subject to
audit, but the company and the DCAA have always been able to work through these
issues.
Halliburton has a 60 year history of working with the government. KBR helped
build U.S. war ships in World War II, as well as projects in Somalia, Rwanda,
Haiti and the Balkans. Halliburton also helped put out more than half of the oil
well fires in Kuwait during the 1991 Gulf War and now are working in Iraq.
###
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: February 2, 2004 By: /s/ Margaret E. Carriere
----------------------------
Margaret E. Carriere
Vice President and Secretary