HALLIBURTON CO

Note 6. Leases

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 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 theyears ended December 31, 2025,

2024, and 2023, along with other supplemental information about our existing leases:

The following table summarizes the maturity of our operating and finance leases as of December 31, 2025: