UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
__________
Form
11-K
(X) Annual
Report pursuant to Section 15(d) of The Securities Exchange Act of
1934.
For
the
fiscal year ended December 31, 2005.
or
(
) Transition
Report pursuant to Section 15(d) of The Securities Exchange Act of
1934.
For
the
transition period from ______________ to ___________.
Commission
file number 1-3492
A. Full
title of the plan and the address of the plan, if different from that of the
issuer named below:
Halliburton
Savings Plan
10200
Bellaire Blvd.
Building
91, Room 2NE18B
Houston,
TX 77072
B. Name
of
issuer of the securities held pursuant to the plan and the address of its
principal executive office:
Halliburton
Company
(a
Delaware Corporation)
75-2677995
140l
McKinney, Suite 2400
Houston,
Texas 77010
Telephone
Number - (713) 759-2600
Required
Information
The
following financial statements prepared in accordance with the financial
reporting requirements of the Employee Retirement Income Security Act of 1974,
signature and exhibit are filed for the Halliburton Savings Plan:
Financial
Statements and Supplemental Schedule
Report
of
Independent Registered Public Accounting Firm
Statements
of Net Assets Available for Plan Benefits -- December 31, 2005 and
2004
Statement
of Changes in Net Assets Available for Plan Benefits -- Year ended
December 31, 2005
Notes
to
Financial Statements - December 31, 2005 and 2004
Supplemental
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) --
December 31, 2005
Signature
Exhibit
Consent
of Harper & Pearson Company, P.C. (Exhibit 23.1)
HALLIBURTON
SAVINGS PLAN
Table
of Contents
|
Page
|
|
|
Financial
Statements
|
|
|
Report
of Independent Registered Public Accounting Firm
|
1
|
|
Statements
of Net Assets Available for Plan Benefits
|
|
|
December
31, 2005 and 2004
|
2
|
|
Statement
of Changes in Net Assets Available for Plan Benefits
|
|
|
Year
ended December 31, 2005
|
3
|
|
Notes
to Financial Statements
|
|
|
December
31, 2005 and 2004
|
4-13
|
|
Supplemental
Schedule
|
|
|
Schedule
H, Line 4i - Schedule of Assets (Held at End of Year)
|
|
|
December
31, 2005
|
14
|
Schedules
not listed above are omitted because of the absence of conditions under which
they are required under the Department of Labor’s Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act
of
1974.
Report
of Independent Registered Public Accounting Firm
To
the
Benefits Committee of
Halliburton
Savings Plan
Houston,
Texas
We
have
audited the accompanying statements of net assets available for plan benefits
of
the Halliburton
Savings Plan
(the
“Plan”) as of December 31, 2005 and 2004, and the related statement of changes
in net assets available for plan benefits for the year ended December 31, 2005.
These financial statements are the responsibility of the Plan’s management. Our
responsibility is to express an opinion on these financial statements based
on
our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In
our
opinion, the financial statements referred to above present fairly, in all
material respects, the net assets available for plan benefits of the Plan as
of
December 31, 2005 and 2004, and the changes in its net assets available for
plan
benefits for the year ended December 31, 2005 in conformity with generally
accepted accounting principles in the United States of America.
Our
audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets
(held
at end of year) is presented for the purpose of additional analysis and is
not a
required part of the basic financial statements but is supplementary information
required by the Department of Labor’s Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedule is the responsibility of the Plan’s management. The
supplemental schedule has been subjected to the auditing procedures applied
in
the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/s/
Harper & Pearson Company, P.C.
Houston,
Texas
May
5,
2006
1
HALLIBURTON
SAVINGS PLAN
Statements
of Net Assets Available for Plan Benefits
December 31,
2005 and 2004
|
2005
|
2004
|
||||||
|
Assets
|
|||||||
|
Investments,
at fair value
|
|||||||
|
Cash
and cash equivalents
|
$
|
2,077
|
$
|
54,401
|
|||
|
Plan
interest in Master Trust
|
3,800,338
|
3,195,267
|
|||||
|
Participant
loans
|
85,180
|
57,502
|
|||||
|
Total
investments
|
3,887,595
|
3,307,170
|
|||||
|
Receivables
|
|||||||
|
Plan
participants’ contributions
|
-
|
3,264
|
|||||
|
Total
receivables
|
-
|
3,264
|
|||||
|
Net
assets available for plan benefits
|
$
|
3,887,595
|
$
|
3,310,434
|
|||
See
accompanying notes to financial statements.
2
HALLIBURTON
SAVINGS PLAN
Statement
of Changes in Net Assets Available for Plan Benefits
Year
Ended December 31, 2005
|
Additions:
|
||||
|
Investment
income, net
|
||||
|
Plan
interest in Master Trust investment gain
|
$
|
630,480
|
||
|
Interest
on loans to participants
|
3,326
|
|||
|
Total
investment income
|
|
633,806
|
||
|
Contributions:
|
||||
|
Company,
net of forfeitures
|
4,726
|
|||
|
Plan
participants
|
83,285
|
|||
|
Total
contributions
|
88,011
|
|||
|
TOTAL
ADDITIONS
|
721,817
|
|||
|
Deductions:
|
||||
|
Benefits
paid to participants
|
(144,656
|
)
|
||
|
TOTAL
DEDUCTIONS
|
(144,656
|
)
|
||
|
NET
INCREASE
|
577,161
|
|||
|
NET
ASSETS AVAILABLE FOR PLAN BENEFITS
|
||||
|
Beginning
of year
|
3,310,434
|
|||
|
End
of year
|
$
|
3,887,595
|
See
accompanying notes to financial statements.
3
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
(1) Description
of the Plan
The
Halliburton Savings Plan (the “Plan”) is a defined contribution plan
maintained for the benefit of certain qualified employees of Halliburton Company
and certain subsidiaries (the “Company”). The Plan was established in
accordance with Sections 401(a) and 401(k) of the Internal Revenue Code of
1986,
as amended (“IRC”) and is subject to the provisions of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). The following description of
the Plan provides only general information. Participants should refer to the
plan document or summary plan description for a more complete description of
the
Plan’s provisions.
(a) Eligibility
Employees
of the Company are eligible for participation in the Plan upon completion of
three months of service except those who are among the following ineligible
populations: (1) nonresident aliens with no earned income from the Company
from
sources within the United States; (2) employees who are eligible to participate
in any other 401(k) plan of the Company or a member of its controlled group;
(3)
leased employees or independent contractors as defined in the plan document;
(4)
employees covered by a collective bargaining agreement unless the Company has
specifically extended the participation to the employee group, or (5) employees
employed by an operation located in Puerto Rico. The Company has specifically
extended participation to certain employee groups covered by a collective
bargaining agreement with the Bentonite (Colony) Union representing the majority
of the collective bargaining members in the Plan.
(b) Contributions
Participants
may elect to contribute to the tax deferred savings and/or after tax savings
features of the Plan through periodic payroll deductions. Participants may
contribute up to 25% of their eligible earnings on a pre-tax basis and up to
another 25% of their eligible earnings on an after-tax basis. The total amount
of a participant’s tax deferred savings contributions was limited to $14,000 for
2005 and the 2005 limit for eligible earnings was $210,000. Any contributions
in
excess of the $14,000 limit are automatically made to the participant’s
after-tax account. The Company makes matching contributions and fixed company
contributions to certain groups of participants based on separate formulas
set
forth in the collective bargaining agreements as defined in the plan
document.
Participants
who are age 50 or older before the close of the Plan year may elect to make
a
catch-up contribution, subject to certain limitations under the IRC ($4,000
per
participant in 2005).
Employees
are permitted to rollover balances held in other qualified plans or individual
retirement accounts (“IRAs”) into the Plan, as specified in the plan
document.
4
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
(c) Plan
Accounts
The
Company has entered into a master trust agreement known as the Halliburton
Company Employee Benefit Master Trust (the “Master Trust”). The Master
Trust was established for the collective investment of certain defined
contribution and defined benefit plans sponsored by the Company or its
affiliates. The Plan maintains a clearing account, which invests in a short
term
investment fund to facilitate the payment of benefits and receipt of
contributions to the Plan.
(d) Investment
Elections and Transfers
Contributions
and participant account balances may be directed to one of twelve funds or
a
combination of funds. The assets of the funds are held in the Master Trust
(see
note 3). Participants may direct up to a maximum of 15 percent of their
contributions to the Halliburton Stock Fund (“HSF”).
The
Plan
allows participants to make daily transfers of their account balances among
the
funds. The amount of the transfer may be all or any portion of the participant’s
account balance. The Plan imposes a fifteen calendar-day waiting period on
transfers involving the Non-U.S. Equity Fund. The waiting period has been
extended to twenty calendar days effective January 1, 2006 (see note
7).
(e) Administration
The
Halliburton Company Benefits Committee (the “Committee”) controls and
manages the operation and administration of the Plan. State Street Bank and
Trust Company (“State Street”) is the Plan’s trustee and Hewitt Associates LLC
is the record keeper.
(f) Participant
Loans
A
participant may borrow from their vested account balance a minimum of $1,000
up
to a maximum equal to the lesser of $50,000 (reduced by the highest outstanding
loan balance in all Company sponsored plans in the prior twelve months) or
50%
of their vested account balance. A participant may not have more than one loan
outstanding at any time. Loans bear interest at the current prime rate plus
1%
as published in the Wall Street Journal as of the first day of the month. Loans
must be repaid within five years (ten years for primary residence loans) through
payroll deductions and are collateralized by the participant’s account balance.
If a participant fails to comply with the repayment terms of the loan, the
Committee or its designee may deem such defaulted loans as a distribution when
the loans are considered uncollectible from the participant.
(g) Vesting
Participants
are immediately 100% vested in their tax deferred contributions, after-tax
contributions, rollover contributions and the related earnings. Generally,
except as provided in the provisions of the plan document, the participant’s
interest in the matching contributions and the related earnings shall become
fully vested after the completion of five years of service.
5
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
Participants,
who terminate before becoming fully vested, will forfeit the nonvested portion
of their account balance in accordance with the terms of the Plan and collective
bargaining agreement, as applicable.
Forfeitures
are used to reduce future Company contributions. The forfeiture amounts that
were used to reduce Company contributions were $61,083 for the year ended
December 31, 2005. Forfeitures available to reduce future company matching
contributions were $0 and $35,834 as of December 31, 2005 and 2004,
respectively.
(h) Distributions
Each
participant or their designated beneficiaries may elect to receive a
distribution upon retirement, termination, disability, or death. Direct
rollovers to an IRA or other eligible retirement plans are permitted. All
distributions are made in lump-sum amounts or in periodic installments, at
the
participant’s election. Distributions from the HSF may be in the form of shares
of stock or cash.
While
employed, a participant may make one in-service withdrawal of $500 or more
from
his or her after-tax account during a plan year. In-service withdrawals from
all
accounts under the Plan are also permitted upon attainment of age 59-1/2.
Further, in-service withdrawals from a participant’s pre-tax account, rollover
account and after-tax account can be made in the event of a proven financial
hardship, subject to limitations under the Plan. Certain additional in-service
withdrawals are permitted for account balances transferred from acquired company
plans as defined in the Plan document.
(i) Investment
Earnings
Investment
earnings on participants’ accounts are allocated proportionately based on their
relative account balance in each investment fund.
(j) Halliburton
Stock Fund
Effective
July 1, 2002, the HSF was converted into an Employee Stock Ownership Plan
(“ESOP”). The ESOP is designed to comply with Section 4975(e)(7) of the Internal
Revenue Code and Section 407(d)(6) of ERISA.
The
ESOP
has a dividend pass-through election whereby any cash dividends attributable
to
Halliburton Company common stock held by the ESOP are to be paid by the Company
directly to the Trustee. The participants may elect to receive the dividends
in
cash or reinvest it for more units of the HSF. Any cash dividends received
by
the Trustee which are attributable to financed stock are to be used by the
Trustee to make exempt loan payments until the exempt loan has been repaid
in
full. During 2005 and 2004, there were no loans related to stock
purchases.
6
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
Each
participant is entitled to exercise voting rights attributable to the
Halliburton Company Common Stock allocated to his or her account and is notified
by the Trustee prior to the time that such rights are to be exercised. The
Trustee is not permitted to vote any allocated shares for which instructions
have been given by a participant. The Trustee is required, however, to vote
those shares which have not been voted by Plan participants or
beneficiaries.
(k) Plan
Termination
The
Board
of Directors or the Chief Executive Officer of the Company may amend, modify,
or
terminate the Plan at any time. No such termination is contemplated, but if
it
should occur, the accounts of all participants would immediately become fully
vested and be paid in accordance with the terms of the Plan.
(2) Significant
Accounting Policies
(a) Basis
of Accounting
The
accompanying financial statements are prepared using the accrual basis of
accounting.
(b) Valuation
of Investments
The
Plan
invests in cash and cash equivalents and participant loans, which are held
by
the Trustee outside of the Master Trust. Cash and cash equivalents are a short
term investment fund which is valued at cost, which approximates fair value.
Participant loans are valued at cost, which approximates fair
value.
Cash
equivalents, derivative financial instruments, stock securities, mutual funds,
bonds and notes, and all other debt securities held within the Master Trust
are
presented at their quoted market value. Common/collective trust funds are stated
at the fair market value of the underlying securities.
The
Master Trust’s investment in pooled equity managers (the Pooled Fund) represents
the unitized values of certain equity managers’ accounts on a combined basis.
Each manager’s account is valued daily. A unit price is calculated for each
manager by dividing the total value of the manager’s account by the total number
of units in existence for that manager. Net income and realized/unrealized
investment gains and losses by each manager are passed through to the investment
options through the managers’ unit price.
7
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
The
Fixed
Income Fund within the Master Trust holds bank, insurance, and investment
contracts providing a fully benefit-responsive feature. These investments are
stated at contract value, which approximates fair value. Where the Master Trust
owns the underlying securities of asset-backed investment contracts, the
contracts are stated at fair market value of the underlying securities plus
an
adjustment for the difference between fair market value of the underlying
securities and contract value. Contract value represents the principal balance
of the investment plus accrued interest at the stated contract rate, less
payments received, and contract charges by the insurance company or bank. The
weighted average crediting interest rates for these contracts were 5.40% and
4.89% as of December 31, 2005 and 2004, respectively, and the weighted
average return was 5.14% for the year ended December 31, 2005. In addition,
the Fixed Income Fund holds a common/collective trust fund, which also invests
in investment contracts and asset-backed investment contracts. The return for
the common/collective trust fund was 4.24% for the year ended December 31,
2005.
These
investment funds are exposed to various risks, such as interest rate, market
and
credit. Due to these risks, the amounts reported in the statements of net assets
available for plan benefits could be materially affected in the near
term.
The
Plan’s proportionate interest in the investments of the Master Trust is shown in
the statements of net assets available for plan benefits as Plan’s interest in
the Master Trust net assets (see note 3).
(c) Securities
Transactions and Investment Income
The
Plan
records interest on cash and cash equivalents and participant loans held outside
of the Master Trust when earned. Purchases and sales of securities held outside
the Master Trust are recorded on the trade-date basis.
Purchases
and sales of securities in the Master Trust are also recorded on the trade-date
basis. Realized gains (losses) on investments sold and unrealized appreciation
(depreciation) for investments of the Master Trust are combined and presented
as
net Plan interest in Master Trust investment gain on the statement of changes
in
net assets available for plan benefits.
In
addition, investment income of the Master Trust includes interest, dividends,
and other income. Interest income of the Master Trust investments is recorded
when earned. Dividends on the Master Trust investments are recorded on the
ex-dividend date.
(d) Administrative
Expenses
The
Master Trust pays substantially all plan expenses on behalf of the Plan.
Generally, trustee fees, recordkeeping fees, audit fees, and investment
management fees are paid from Master Trust assets and are charged to the plans
participating in the Master Trust. Expenses related to the direct management
of
the Master Trust are shared on an equitable basis by the participating plans.
Expenses specifically related to an individual plan are charged to the assets
of
the Plan which incurred the charges. These expenses are shown as a component
of
Plan interest in Master Trust investment gain.
8
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
(e) Payment
of Benefits
Benefits
are recorded when paid.
(f) Use
of Estimates
The
preparation of financial statements in conformity with generally accepted
accounting principles in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities, and
changes therein, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
(3) Investment
Assets Held in the Master Trust
Certain
assets of the Plan are combined with the assets of certain other benefit plans
of affiliated companies in the Master Trust. The assets of the Master Trust
are
segregated into twelve funds in which the defined contribution plans may
participate. The combination of the plans’ assets is only for investment
purposes and the plans continue to be operated under their current individual
plan documents, as amended.
The
Master Trust assets are allocated among participating plans by assigning to
each
plan those transactions (primarily contributions, benefit payments, and certain
administrative expenses) which can be specifically identified and allocating
among all plans, in proportion to the fair value of the assets assigned to
each
plan, the income and expenses resulting from the collective investment of the
assets.
The
following is a summary of net assets as of December 31, 2005 and 2004,
total investment income for the year ended December 31, 2005 and net
appreciation (depreciation) by investment type for the year ended
December 31, 2005 of the Master Trust (dollar amounts in thousands). The
Plan’s interests in the Master Trust’s net assets for the applicable periods
(dollar amounts in thousands) are also presented.
9
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
|
Net
Assets
|
2005
|
2004
|
|||||
|
(in
000’s)
|
(in
000’s)
|
||||||
|
Assets:
|
|||||||
|
Investments
-
|
|||||||
|
Cash
and equivalents
|
$
|
352,803
|
$
|
458,525
|
|||
|
Collateral
received for securities loaned
|
532,223
|
852,554
|
|||||
|
Asset-backed
investment contracts
|
(22,852
|
)
|
(69,632
|
)
|
|||
|
U.S.
bonds and notes
|
1,842,616
|
1,117,725
|
|||||
|
Non-U.S.
bonds and notes
|
135,349
|
134,345
|
|||||
|
Halliburton
stock
|
378,906
|
269,080
|
|||||
|
Other
U.S. stock
|
1,031,147
|
1,068,028
|
|||||
|
Non-U.S.
stock
|
490,670
|
421,315
|
|||||
|
Common/collective
trust funds
|
644,634
|
615,634
|
|||||
|
Mutual
funds
|
228,965
|
218,990
|
|||||
|
Securities
loaned -
|
|||||||
|
U.S.
bonds and notes
|
362,492
|
713,032
|
|||||
|
Other
U.S. stock
|
127,777
|
102,130
|
|||||
|
Non-U.S.
stock
|
31,518
|
20,849
|
|||||
|
Total
investments
|
6,136,248
|
5,922,575
|
|||||
|
Receivables
-
|
|||||||
|
Receivables
for investment sold
|
133,665
|
73,853
|
|||||
|
Dividends
|
2,036
|
1,998
|
|||||
|
Interest
|
17,740
|
17,653
|
|||||
|
Other
|
180
|
512
|
|||||
|
Total
receivables
|
153,621
|
94,016
|
|||||
|
Total
assets
|
6,289,869
|
6,016,591
|
|||||
|
Liabilities:
|
|||||||
|
Payables
for investments purchased
|
523,408
|
271,752
|
|||||
|
Obligation
for collateral received for securities loaned
|
532,223
|
852,554
|
|||||
|
Other
payables
|
8,358
|
4,284
|
|||||
|
Total
liabilities
|
1,063,989
|
1,128,590
|
|||||
|
Net
Assets
|
$
|
5,225,880
|
$
|
4,888,001
|
|||
|
Plan’s
interest in Master Trust net assets
|
$
|
3,800
|
$
|
3,195
|
|||
|
Plan’s
percentage interest in Master Trust net assets
|
0.07
|
%
|
0.07
|
%
|
|||
|
Year
ended
|
||||
|
December
31,
|
||||
|
Total
Investment Income
|
2005
|
|||
|
(in
000’s)
|
||||
|
Net
investment appreciation
|
$
|
311,606
|
||
|
Investment
income
|
161,566
|
|||
|
Expenses
|
(17,919
|
)
|
||
|
Total
investment income
|
$
|
455,253
|
||
10
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
|
Year
ended
|
||||
|
December
31,
|
||||
|
Net
Appreciation (Depreciation) by Investment Type
|
2005
|
|||
|
(in
000’s)
|
||||
|
Cash
and equivalents
|
$
|
1,491
|
||
|
U.S.
bonds and notes
|
(6,440
|
)
|
||
|
Non-U.S.
bonds and notes
|
(1,051
|
)
|
||
|
Halliburton
stock
|
150,793
|
|||
|
U.S.
stock
|
47,387
|
|||
|
Non-U.S.
stock
|
84,671
|
|||
|
Common/collective
trust funds
|
31,914
|
|||
|
Mutual
funds
|
1,103
|
|||
|
Other
investments
|
1,738
|
|||
|
Total
appreciation
|
$
|
311,606
|
||
The
Master Trust makes use of several investment strategies involving limited use
of
derivative investments. The Master Trust’s management, as a matter of policy and
with risk management as their primary objective, monitors risk indicators such
as duration and counter-party credit risk, both for the derivatives themselves
and for the investment portfolios holding the derivatives. Investment managers
are allowed to use derivatives for such strategies as portfolio structuring,
return enhancement, and hedging against deterioration of investment holdings
from market and interest rate changes. Derivatives are also used as a hedge
against foreign currency fluctuations. The Master Trust’s management does not
allow investment managers for the Master Trust to use leveraging for any
investment purchase. Derivative investments are stated at estimated fair market
values as determined by quoted market prices. Gains and losses on such
investments are included in the net appreciation of the Master
Trust.
Certain
investment managers of the Master Trust participate in a securities lending
program administered by State Street. The transfer of assets under State
Street’s securities lending program are secured borrowings with pledge of
collateral. The fair market value of the securities loaned as of
December 31, 2005 and 2004 was $521,786,769 and $836,010,385 respectively.
The cash and non-cash collateral received for securities loaned as of
December 31, 2005 and 2004 was $532,223,051 and $852,554,443 respectively.
As of December 31, 2005 and 2004, none of the collateral received for
securities loaned has been sold or repledged.
11
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
(4) Investments
The
following table represents the fair value of individual investment funds held
under the Master Trust which exceed 5% of the Plan’s net assets as of
December 31, 2005 and 2004:
|
2005
|
2004
|
||||||
|
Participation
in Master Trust, at fair value:
|
|||||||
|
S&P
500 Index Fund
|
$
|
311,997
|
$
|
310,699
|
|||
|
Fixed
Investment Fund
|
406,442
|
358,172
|
|||||
|
Balanced
Fund
|
319,532
|
311,879
|
|||||
|
Halliburton
Company Stock Fund
|
1,227,426
|
848,628
|
|||||
|
Large
Cap Value Equity
|
1,117,733
|
1,057,944
|
|||||
(5) Tax
Status
The
Internal Revenue Service informed the Company by a letter dated March 4, 2004,
that the Plan and related trust were designed in accordance with the applicable
provisions of the IRC. The Plan has been amended since receiving the letter;
however, the plan administrator believes that the Plan is currently designed
and
being operated in compliance with the applicable requirements of the IRC.
Therefore, the plan administrator believes that the Plan was qualified and
the
related trust was tax-exempt as of December 31, 2005 and 2004.
(6) Related-Party
Transactions
The
Plan,
through its participation in the Master Trust, may invest in investment
securities issued and or managed by the Trustee and asset managers.
Additionally, the Master Trust invests in Halliburton Company’s common stock
through the HSF. These entities are considered parties-in-interest to the Plan.
These transactions are covered by an exemption from the prohibited transaction
provisions of ERISA and the IRC.
(7) Subsequent
Events
Effective
January 1, 2006, the Master Trust added a new investment for Plan participants
called the Conservative Premixed Portfolio, and renamed three of its investment
funds as follows: (1) Stable Value Premixed Portfolio from Fixed Income Fund,
(2) Moderate Premixed Portfolio from General Investment Fund and (3) Aggressive
Premixed Portfolio from Equity Investment Fund.
12
HALLIBURTON
SAVINGS PLAN
Notes
to
Financial Statements
December 31,
2005 and 2004
Also
effective January 1, 2006, the Plan imposed a twenty calendar-day waiting
period on transfers involving all funds except the Stable Value Premixed
Portfolio. This policy applies to the frequency and timing of transferring
amounts among funds. When a participant completes a transfer or a fund
reallocation out of a fund, the participant is restricted from transferring
money into the same fund for a period of twenty calendar days. However, amounts
can still be transferred out of the fund. This rule works differently for the
Stable Value Premixed Portfolio. If amounts are transferred or funds are
reallocated into the Stable Value Premixed Portfolio, the number of units that
amount represented on the day of the transaction is restricted and cannot be
transferred out of the fund for twenty calendar days.
13
HALLIBURTON
SAVINGS PLAN
EIN:
75-2677995
PLAN
#:
145
Schedule
H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,
2005
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
Description
of investments, including
|
|||||
|
Identity
of issue, borrower,
|
maturity
date, rate of interest, collateral,
|
Current
|
|||
|
lessor,
or similar party
|
par
or maturity value
|
Cost
|
value
|
||
|
*
|
State
Street Bank and Trust
|
SSBTC
short term investment fund
|
|||
|
Company
|
**
|
$
|
2,077
|
||
| * |
Halliburton
Company
|
Investment
in net assets of Halliburton
|
|||
|
|
Employee
Benefit
|
Company
Employee Benefit
|
|||
|
Master
Trust
|
Master
Trust
|
**
|
3,800,338
|
||
|
*
|
Participant
Loans
|
Loans
issued at interest rates between
|
|||
|
5.0%
and 9.0%; various maturity dates
|
**
|
85,180
|
|||
|
$
|
3,887,595
|
* Column
(a) indicates each identified person/entity known to be a
party-in-interest.
** Cost
omitted for participant directed investments.
See
accompanying report of independent registered public accounting
firm.
14
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Halliburton
Company Benefits Committee of the Halliburton Savings Plan has duly caused
this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
Date:
June 6, 2006
By:
/s/ Michele Mastrean
Michele
Mastrean, Chairperson of the
Halliburton
Company Benefits Committee
15
EXHIBIT
23.1
Consent
of Independent Registered Public Accounting Firm
We
hereby
consent to the incorporation by reference in the Registration Statement on
Form
S-8 (File No. 333-86080) pertaining to Halliburton Company of our report dated
May 5, 2006, related to the financial statements and supplemental schedule
of
the Halliburton Savings Plan, included in the annual report on Form 11-K for
the
year ended December 31, 2005.
/s/
Harper & Pearson Company, P.C.
Houston,
Texas
June
5,
2006