HALLIBURTON CO

Previous wording

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions.

Current wording

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business.

Previous wording

The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 49,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Current wording

The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 48,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Previous wording

Oil prices strengthened in the second quarter of 2024 as increased demand and OPEC+ production cuts tightened the oil market. While easing inflationary pressure has reduced macroeconomic uncertainty, risks associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major sources of volatility for the oil and natural gas markets.

Current wording

Oil prices declined in the third quarter of 2024 from the second quarter of 2024 as a result of demand concerns coupled with increased supply. While easing inflationary pressure has reduced macroeconomic uncertainty, risks associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major sources of volatility for the oil and natural gas markets.

Previous wording

During the second quarter of 2024, the U.S. active rig count declined to its lowest level since the first quarter of 2022 as both oil and gas basins saw declines. The international rig count declined in the second quarter of 2024 from the first quarter of 2024 driven by Latin America, the Middle East, and Africa, after a sequential increase in the first quarter of 2024.

Current wording

During the third quarter of 2024, the U.S. active rig count declined to its lowest level since the first quarter of 2022 as both oil and gas basins saw declines. The international rig count continued to decline in the third quarter of 2024 from the second quarter of 2024 driven by Asia-Pacific, Latin America, and Europe.

Previous wording

The following graph illustrates our revenue and operating margins for each operating segment for the second quarter of 2023 and 2024.

Current wording

The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of 2023 and 2024.

Previous wording

Our Drilling and Evaluation segment revenue increased 5% in the second quarter of 2024 as compared to the second quarter of 2023, primarily due to increased drilling services in U.S. land and the Middle East and improved testing services in Latin America and the Middle East. Partially offsetting these improvements were lower drilling-related services in Africa.

Current wording

Our Drilling and Evaluation segment revenue increased 3% in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to increased drilling services in the Western Hemisphere and Middle East/Asia, improved project management activity in Ecuador, Mexico and Kuwait, and higher testing services in Middle East/Asia and Latin America. Partially offsetting these improvements were decreased fluid services in the Gulf of Mexico and Eastern Hemisphere, and lower wireline activity in the Gulf of Mexico and Africa.

Previous wording

Our North America revenue decreased 8% in the second quarter of 2024, as compared to the second quarter of 2023. This decline was primarily driven by decreased pressure pumping services and lower artificial lift activity in U.S. land. Partially offsetting these declines were increased completion tool sales in the Gulf of Mexico and higher drilling services in U.S. land.

Current wording

Our North America revenue decreased 9% in the third quarter of 2024, as compared to the third quarter of 2023. This decline was primarily driven by lower pressure pumping services and decreased well intervention services in U.S. land. Additionally, there was decreased activity across multiple product services lines in the Gulf of Mexico partly due to the impacts from hurricanes. Partially offsetting these declines were improved pressure pumping services in Canada and the Gulf of Mexico, along with increased drilling services in the region.

Previous wording

As of June 30, 2024, we had $2.1 billion of cash and equivalents, compared to $2.3 billion of cash and equivalents at December 31, 2023.

Current wording

As of September 30, 2024, we had $2.2 billion of cash and equivalents, compared to $2.3 billion of cash and equivalents at December 31, 2023.

Previous wording

Significant sources and uses of cash during the first six months of 2024

Current wording

Significant sources and uses of cash during the first nine months of 2024

Previous wording

•Cash flows from operating activities were $1.6 billion. Working capital, which consists of receivables, inventories, and accounts payable, had a negative impact of $365 million, primarily due to increased receivables.

Current wording

•Cash flows from operating activities were $2.4 billion. Working capital, which consists of receivables, inventories, and accounts payable, had a negative impact of $645 million, primarily due to increased receivables.

Previous wording

•We repurchased 13.9 million shares of our common stock for $500 million.

Current wording

•We repurchased 20.1 million shares of our common stock for $696 million.

Previous wording

•We paid $302 million of dividends to our shareholders.

Current wording

•We paid $452 million of dividends to our shareholders.

Previous wording

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $151 million. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2024.

Current wording

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $150 million. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2024.

Previous wording

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 6.9 million shares of common stock during the second quarter of 2024 under this program. Approximately $3.6 billion remained authorized for repurchases as of June 30, 2024 and may be used for open market and other share purchases.

Current wording

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 6.2 million shares of common stock during the third quarter of 2024 under this program. Approximately $3.4 billion remained authorized for repurchases as of September 30, 2024 and may be used for open market and other share purchases.

Previous wording

During 2023, we began our migration to SAP S4, which we expect to complete by the end of 2025. During the six months ended June 30, 2024, we incurred $63 million in expense on our SAP S4 migration. The total project investment is estimated to cost approximately $250 million, of which we have incurred $114 million to date. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

Current wording

During 2023, we began our migration to SAP S4, which we now expect to complete in the first half of 2026. During the nine months ended September 30, 2024, we incurred $91 million in expense on our SAP S4 migration. The total project investment is now estimated to increase between $20 million and $30 million above our initial $250 million forecast, of which we have incurred $142 million to date. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

Previous wording

Financial position in current market. As of June 30, 2024, we had $2.1 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately $472 million coming due beginning in 2025 through 2027. 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 expected global cash needs, including capital expenditures, working capital investments, shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments.

Current wording

Financial condition in current market. As of September 30, 2024, we had $2.2 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately $472 million coming due beginning in 2025 through 2027. 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 expected global cash needs, including capital expenditures, working capital investments, shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments.

Previous wording

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 positive outlook. Our credit ratings with Moody's Investors Service (Moody's) remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook.

Current wording

Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-term debt, with a positive outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook.

Previous wording

Receivables from our primary customer in Mexico accounted for approximately 11% of our total receivables as of June 30, 2024. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect any material write-offs due to collectability of receivables from this customer.

Current wording

Receivables from our primary customer in Mexico accounted for approximately 10% of our total receivables as of September 30, 2024. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect any material write-offs due to collectability of receivables from this customer.

Previous wording

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. During the first six months of 2024, based on the location of the services provided and products sold, 41% of our consolidated revenue was from the United States, compared to 46% of our consolidated revenue from the United States in the first six months of 2023. No other country accounted for more than 10% of our revenue for those periods.

Current wording

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. During the first nine months of 2024, based on the location of the services provided and products sold, 41% of our consolidated revenue was from the United States, compared to 45% of our consolidated revenue from the United States in the first nine months of 2023. No other country accounted for more than 10% of our revenue for those periods.

Previous wording

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, during 2024, we generally expect that many of our customers in North America will continue their strategy of operating within their cash flows and generating returns rather than prioritizing production growth. 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.

Current wording

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, during the remainder of 2024, we generally expect that many of our customers in North America will continue their strategy of operating within their cash flows and generating returns rather than prioritizing production growth. 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.

Previous wording

As we consider the balance of 2024, we remain positive on the oil and natural gas markets and continue to see strength across our portfolio. We expect strong oil and natural gas demand growth for the rest of 2024 as concerns about a potential economic slowdown ease. We believe long-term demand growth will be driven by economic expansion, energy security concerns, and population growth. Oil and natural gas continue to demonstrate their critical roles in the global economy in meeting this long term demand, and necessitate sustained capital investment in existing and new sources of production. To meet this growing demand, production will be needed from conventional, unconventional, deep-water, shallow-water, and short and long-cycle projects. Capital discipline by major oil and natural gas producers continues to underpin a more durable and less volatile upstream spending cycle versus prior cycles.

Current wording

As we consider the balance of 2024, we remain positive on the oil and natural gas markets and continue to see strength across our portfolio. We believe long-term demand growth will be driven by economic expansion, energy security concerns, and population growth. Oil and natural gas continue to demonstrate their critical roles in the global economy in meeting this long term demand, and necessitate sustained capital investment in existing and new sources of production. To meet this growing demand, production will be needed from conventional, unconventional, deep-water, shallow-water, and short and long-cycle projects. Capital discipline by major oil and natural gas producers continues to underpin a more durable and less volatile upstream spending cycle versus prior cycles.

Previous wording

As noted above, rig counts and, as a result, service activity in North America continued to decline in the second quarter of 2024. Consequently, we expect our revenues in North America to decline in 2024 as compared to 2023. Nevertheless, we expect our international business to deliver about 10% revenue growth for the full year. and we remain confident that over the longer run investment in upstream activity will grow (including in North America) in order to meet growing demand for oil and natural gas and that demand for our products and services will grow accordingly.

Current wording

As noted above, rig counts and, as a result, service activity in U.S. continued to decline in the third quarter of 2024. Consequently, we expect our revenues in North America to decline in 2024 as compared to 2023. Nevertheless, we expect our international business to deliver mid to high single digit revenue growth for the full year of 2024.

Previous wording

Drilling and Evaluation revenue in the second quarter of 2024 was $2.4 billion, an increase of $110 million, or 5%, when compared to the second quarter of 2023. Operating income in the second quarter of 2024 was $403 million, an increase of $27 million, or 7%, when compared to the second quarter of 2023. These results were primarily driven by increased drilling services in U.S. land and the Middle East and improved testing services in Latin America and the Middle East. Partially offsetting these improvements were lower drilling-related services in Africa.

Current wording

Drilling and Evaluation revenue in the third quarter of 2024 was $2.4 billion, an increase of $81 million, or 3%, when compared to the third quarter of 2023. Operating income in the third quarter of 2024 was $406 million, an increase of $28 million, or 7%, when compared to the third quarter of 2023. These results were primarily driven by increased drilling services in the Western Hemisphere and Middle East/Asia, improved project management activity in Ecuador, Mexico and Kuwait, and higher testing services in Middle East/Asia and Latin America. Partially offsetting these improvements were decreased fluid services in the Gulf of Mexico and Eastern Hemisphere, and lower wireline activity in the Gulf of Mexico and Africa.

Previous wording

North America revenue in the second quarter of 2024 was $2.5 billion, an 8% decrease compared to the second quarter of 2023. This decline was primarily driven by decreased pressure pumping services and lower artificial lift activity in U.S. land. Partially offsetting these declines were increased completion tool sales in the Gulf of Mexico and higher drilling services in U.S. land.

Current wording

North America revenue in the third quarter of 2024 was $2.4 billion, a 9% decrease compared to the third quarter of 2023. This decline was primarily driven by lower pressure pumping services and decreased well intervention services in U.S. land. Additionally, there was decreased activity across multiple product services lines in the Gulf of Mexico partly due to the impacts from hurricanes. Partially offsetting these declines were improved pressure pumping services in Canada and the Gulf of Mexico, along with increased drilling services in the region.

Previous wording

Latin America revenue in the second quarter of 2024 was $1.1 billion, a 10% increase compared to the second quarter of 2023. This increase was primarily driven by higher stimulation activity and improved wireline services in Argentina and Mexico, increased testing services in Mexico and the Caribbean, and improved project management activity in Ecuador. Partially offsetting these improvements were lower well construction activity, decreased software sales, and lower project management activity in Mexico, along with lower completion tool sales in Brazil.

Current wording

Latin America revenue in the third quarter of 2024 was $1.1 billion, flat compared to the third quarter of 2023. Increased well construction activity and improved project management activity in Ecuador and Mexico were offset by decreased completion tool sales in Brazil, lower stimulation activity in Argentina and Brazil, and lower project management and well construction activity in Colombia.

Previous wording

Middle East/Asia revenue in the second quarter of 2024 was $1.5 billion, a 6% increase compared to the second quarter of 2023. This increase was primarily driven by higher drilling services in Saudi Arabia and Qatar, improved well construction activity in United Arab Emirates, improved project management activity in Kuwait, and increased completion tool sales in Saudi Arabia. Partially offsetting these improvements were decreased fluid services in Saudi Arabia, lower project management activity in Iraq, Saudi Arabia, and Asia, along with decreased wireline activity across the region.

Current wording

Middle East/Asia revenue in the third quarter of 2024 was $1.5 billion, a 9% increase compared to the third quarter of 2023. This increase resulted from increased activity across multiple product service lines in Kuwait and Australia, improved pressure pumping services and higher completion tool sales in Saudi Arabia, higher well construction activity in United Arab Emirates, and increased testing services in the region. Partially offsetting these improvements were lower fluid services in Saudi Arabia and Indonesia.

Previous wording

SAP S4 Upgrade Expense. During 2023, we began our migration to SAP S4, which we expect to complete by the end of 2025. During the second quarter of 2024, we recognized $29 million of expense on our SAP S4 migration. During the second quarter of 2023, we recognized $13 million of expense on our SAP S4 migration.

Current wording

SAP S4 Upgrade Expense. During 2023, we began our migration to SAP S4, which we now expect to complete in the first half of 2026. During the third quarter of 2024, we recognized $28 million of expense on our SAP S4 migration. During the third quarter of 2023, we recognized $23 million of expense on our SAP S4 migration.

Previous wording

Income Tax Provision. During the three months ended June 30, 2024, we recorded a total income tax provision of $207 million on a pre-tax income of $920 million, resulting in an effective tax rate of 22.5% for the quarter. During the three months ended June 30, 2023, we recorded a total income tax provision of $167 million on a pre-tax income of $783 million, resulting in an effective tax rate of 21.3% for the quarter.

Current wording

Income Tax Provision. During the three months ended September 30, 2024, we recorded a total income tax provision of $154 million on a pre-tax income of $734 million, resulting in an effective tax rate of 21.0% for the quarter. We recorded a tax benefit of $41 million during the three months ended September 30, 2024, due to a partial release of a valuation allowance on our deferred tax assets based on market conditions. During the three months ended September 30, 2023, we recorded a total income tax provision of $192 million on a pre-tax income of $916 million, resulting in an effective tax rate of 21.0% for the quarter.

Previous wording

Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023

Current wording

Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023

Previous wording

Completion and Production revenue in the first six months of 2024 was $6.8 billion, a decrease of $111 million, or 2%, compared to the first six months of 2023. Operating income for the segment in the first six months of 2024 was $1.4 billion, an increase of $38 million, or 3%, compared to the first six months of 2023. The decrease in revenue was largely driven by lower pressure pumping services in U.S. land. Partially offsetting this decline were higher completion tool sales and improved artificial lift activity globally, improved cementing services internationally, and higher stimulation activity in Latin America. Operating income for the segment increased due to pressure pumping and completion tools activity growth internationally, completion tools activity growth in the Gulf of Mexico, and artificial lift activity and pricing improvements in U.S. land.

Current wording

Completion and Production revenue in the first nine months of 2024 was $10.1 billion, a decrease of $299 million, or 3%, compared to the first nine months of 2023. Operating income for the segment in the first nine months of 2024 was $2.1 billion, a decrease of $39 million, or 2%, compared to the first nine months of 2023. These results were largely driven by lower pressure pumping services in U.S. land and declined well intervention services in North America. Partially offsetting these declines were increased pressure pumping services in Canada, the Gulf of Mexico, Argentina, Europe and the Middle East, higher completion tool sales in the Gulf of Mexico, Europe/Africa and Saudi Arabia, and improved artificial lift activity globally.

Previous wording

Drilling and Evaluation revenue in the first six months of 2024 was $4.9 billion, an increase of $273 million, or 6%, compared to the first six months of 2023. Operating income for the segment in the first six months of 2024 was $801 million, an increase of $56 million, or 8%, compared to the first six months of 2023. These results were primarily driven by improved drilling services in the Middle East and U.S. land, higher drilling services, improved wireline activity, and increased testing services in Latin America, and improved fluid services in Europe. These improvements were partially offset by lower project management activity and decreased fluid services in Saudi Arabia, lower drilling services in Africa and Asia, and decreased wireline activity in North America.

Current wording

Drilling and Evaluation revenue in the first nine months of 2024 was $7.3 billion, an increase of $354 million, or 5%, compared to the first nine months of 2023. Operating income for the segment in the first nine months of 2024 was $1.2 billion, an increase of $84 million, or 7%, compared to the first nine months of 2023. These results were primarily driven by increased drilling services in the Western Hemisphere and the Middle East, improved activity across multiple product service lines in Mexico, increased testing services in Latin America and the Middle East, and higher project management activity in Kuwait. These improvements were partially offset by lower wireline activity in North America, reduced drilling services in Europe/Africa, and decreased fluid services in Brazil, Africa, and Asia.

Previous wording

North America revenue in the first six months of 2024 was $5.0 billion, an 8% decrease compared to the first six months of 2023, resulting primarily from lower pressure pumping services in U.S. land. Partially offsetting this decline were improved completion tool sales, higher well construction activity and improved stimulation activity in the Gulf of Mexico, and increased drilling services in U.S. land.

Current wording

North America revenue in the first nine months of 2024 was $7.4 billion, an 8% decrease compared to the first nine months of 2023, resulting primarily from lower pressure pumping services in U.S. land, decreased well intervention services and lower wireline activity in U.S. land and the Gulf of Mexico, and decreased fluid services in the region. Partially offsetting these declines were increased pressure pumping services in Canada and the Gulf of Mexico and improved drilling services and completion tool sales in the region.

Previous wording

SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we expect to complete by the end of 2025. During the six months ended June 30, 2024, we recognized $63 million of expense on our SAP S4 migration. During the six months ended June 30, 2023, we recognized $13 million of expense on our SAP S4 migration.

Current wording

SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we now expect to complete in the first half of 2026. During the nine months ended September 30, 2024, we recognized $91 million of expense on our SAP S4 migration. During the nine months ended September 30, 2023, we recognized $36 million of expense on our SAP S4 migration.

Previous wording

Argentina Impairment on Investment. In 2022 and 2023, we executed a series of loans to a third party and received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During the six months ended June 30, 2024, we recorded a loss of $38 million in March of 2024 due to the fair value decrease in one of the notes, resulting from the deterioration in the outlook of the debtor’s liquidity and financial projections.

Current wording

Argentina Impairment on Investment. In 2022 and 2023, we executed a series of loans to a third party and received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During the nine months ended September 30, 2024, we recorded a loss of $38 million in March of 2024 due to the fair value decrease in one of the notes, resulting from the deterioration in the outlook of the debtor’s liquidity and financial projections.

Previous wording

Egypt Currency Impact. In the first quarter of 2024, the Egyptian pound devalued by approximately 35% relative to the U.S. dollar. Consequently, we incurred a loss of $38 million in the six months ended June 30, 2024, due to the devaluation of the currency in Egypt.

Current wording

Egypt Currency Impact. In the first quarter of 2024, the Egyptian pound devalued by approximately 35% relative to the U.S. dollar. Consequently, we incurred a loss of $38 million in the nine months ended September 30, 2024, due to the devaluation of the currency in Egypt.

Previous wording

Argentina Blue Chip Swap. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. During the three months ended June 30, 2023, we entered into Blue Chip Swap transactions, which resulted in a $104 million pre-tax loss on investment.

Current wording

Argentina Blue Chip Swap. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. During the nine months ended September 30, 2023, we entered into Blue Chip Swap transactions, which resulted in a $104 million pre-tax loss on investment.

Previous wording

Income Tax Provision. During the six months ended June 30, 2024, we recorded a total income tax provision of $385 million on a pre-tax income of $1.7 billion, resulting in an effective tax rate of 22.6%. During the six months ended June 30, 2023, we recorded a total income tax provision of $341 million on pre-tax income of $1.6 billion, resulting in an effective tax rate of 21.1%.

Current wording

Income Tax Provision. During the nine months ended September 30, 2024, we recorded a total income tax provision of $539 million on a pre-tax income of $2.4 billion, resulting in an effective tax rate of 22.1%. We recorded a tax benefit of $41 million during the nine months ended September 30, 2024, due to a partial release of a valuation allowance on our deferred tax assets based on market conditions. During the nine months ended September 30, 2023, we recorded a total income tax provision of $533 million on pre-tax income of $2.5 billion, resulting in an effective tax rate of 21.1%.

Previous wording

Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the six months ended June 30, 2024.

Current wording

Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the nine months ended September 30, 2024.