HALLIBURTON CO
For the period ended Dec 31, 2025. Filed Feb 6, 2026.
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FY2025 · Filed Feb 6, 2026
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Retirement Plans
Note 17. Retirement Plans
Our company and subsidiaries have various plans that cover a significant number of our employees. These plans
include defined contribution plans, defined benefit plans, and other postretirement plans:
-Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an
individual account for each participant and have terms that specify how contributions to the participant’s account are
to be determined rather than the amount of pension benefits the participant is to receive. Contributions to these plans
are based on a percentage of pre-tax income, after-tax income, or discretionary amounts determined on an annual
basis. Our expense for the defined contribution plans totaled$206 million in 2025,$182 million in 2024, and$181
million in 2023. The increase in expense from 2024 to 2025 was primarily driven by higher discretionary employer
contributions, along with increases in employee headcount and employer contribution rates in certain foreign
locations.
-Our defined benefit plans, which include both overfunded and underfunded pension plans, define an amount of
pension benefit to be provided, usually as a function of age, years of service and/or compensation. The underfunded
obligations and net periodic benefit cost of our United States defined benefit plans were not material for the periods
presented.
-Our postretirement plans other than pensions are offered to specific eligible employees. The accumulated benefit
obligations (ABO) and net periodic benefit cost for these plans were not material for the periods presented.
- In 2024, the Trustees of the Company’s United Kingdom (U.K.) defined benefit plan executed an annuity buy-in
with a third-party insurance company with no affiliation with the Company. All pension obligations will be funded
by the insurer’s annuity payments. However, the plan retains full legal responsibility to pay the benefits to plan
participants using the insurance payments. As the plan maintains full legal responsibility, and the insurance contract
is considered an asset of the plan, accordingly, the arrangement did not meet the settlement criteria of ASC 715. The
policy is carried at fair value within plan assets and presented as a level 3 in the fair value table below. Fair value is
determined using a quote from an insurance company, reflecting prevailing market conditions for similar
transactions. Changes in the fair value of the policy are reflected in actual return on plan assets.
Funded status
For our international pension plans, at December 31, 2025, the projected benefit obligation (PBO) was$783 million
and the fair value of plan assets was$583 million, which resulted in an underfunded obligation of$200 million. At
December 31, 2024, the PBO was$773 million and the fair value of plan assets was$594 million, which resulted in an
underfunded obligation of$179 million. The ABO for our international plans was$698 million at December 31, 2025 and$694
million at December 31, 2024. Despite an increase in the Company’s weighted‑average discount rate, the localized actuarial
changes in a few countries created upward pressure on pension obligations, resulting in a net increase in PBO and ABO
compared to the prior year.
The following table presents additional information about our international pension plans.
| December 31, | ||
|---|---|---|
| Millions of dollars | 2025 | 2024 |
| Amounts recognized on the Consolidated Balance Sheets | ||
| Other assets | $3 | $11 |
| Accrued employee compensation and benefits | 9 | 11 |
| Employee compensation and benefits | 193 | 177 |
| Pension plans in which projected benefit obligation exceeded plan assets | ||
| Projected benefit obligation | $213 | $200 |
| Fair value of plan assets | 11 | 12 |
| Pension plans in which accumulated benefit obligation exceeded plan assets | ||
| Accumulated benefit obligation | $127 | $122 |
| Fair value of plan assets | 11 | 12 |
Fair value measurements of plan assets
The fair value of our plan assets categorized within level 1 on the fair value hierarchy is based on quoted prices in
active markets for identical assets. The fair value of our plan assets categorized within level 2 on the fair value hierarchy is
based on significant observable inputs for similar assets. The fair value of our plan assets categorized within level 3 on the fair
value hierarchy is based on significant unobservable inputs.
| Table of Contents | Item 8 | Notes to Consolidated Financial Statements |
|---|
The following table sets forth the fair values of assets held by our international pension plans by level within the fair
value hierarchy.
| Millions of dollars | Level 1 | Level 2 | Level 3 | Net Asset Value (a) | Total |
|---|---|---|---|---|---|
| Cash and equivalents | $4 | $4 | $— | $— | $8 |
| Bond funds (b) | — | 4 | — | — | 4 |
| Real estate funds (c) | — | — | — | — | — |
| Other investments (d) | 1 | 9 | 561 | — | 571 |
| Fair value of plan assets at December 31, 2025 | $5 | $17 | $561 | $— | $583 |
| Cash and equivalents | $— | $— | $— | $— | $— |
| Bond funds (b) | — | 11 | — | — | 11 |
| Real estate funds (c) | — | — | — | 8 | 8 |
| Other investments (d) | 1 | 9 | 565 | — | 575 |
| Fair value of plan assets at December 31, 2024 | $1 | $20 | $565 | $8 | $594 |
| (a) | Represents investments measured at fair value using the Net Asset Value (NAV) per share practical expedient and thus has not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of our international pension plan assets. |
|---|---|
| (b) | Strategy of bond funds is to invest in diversified funds of fixed income securities of varying geographies and credit quality. |
| (c) | Strategy of real estate funds is to invest in diversified funds of real estate investment trusts and private real estate. |
| (d) | Other investments consist of insurance contracts, a buy-in annuity insurance contract, non-US equities, and government bonds. The fair value of the buy-in annuity insurance contract is determined using a quote provided by an insurance company, reflecting prevailing market conditions for similar transactions. |
Level 3 Rollforward
The following presents our Level 3 Rollforward for buy-in annuity insurance contract for 2025 and 2024.
| Millions of dollars | 2025 | 2024 |
|---|---|---|
| Balance at the beginning of the year | $565 | $2 |
| Purchase of insurance contract | — | 590 |
| Return on assets | 23 | (18) |
| Payment from the insurance policy | (27) | (9) |
| Balance at the end of the year | $561 | $565 |
Risk management practices for these plans include diversification by issuer, industry, and geography, where permitted,
as well as by asset classes and investment managers. Our U.K. pension plan, which constituted 72% of our international
pension plans’ PBO at December 31, 2025, is no longer accruing service benefits and completed a pension buy-in transaction
during 2024 entering into a bulk annuity contract with an insurance company. The bulk annuity contract effectively covers all
benefit payments to members. The investments backing the contract are invested at the discretion of the insurance company,
which assumes the investment risk associated with these assets.
Net periodic benefit cost
Net periodic benefit cost for our international pension plans was$57 million in 2025,$43 million in 2024, and$32
million in 2023.
| Table of Contents | Item 8 | Notes to Consolidated Financial Statements |
|---|
Actuarial assumptions
Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension
plans at December 31 were as follows:
| 2025 | 2024 | |
|---|---|---|
| Discount rate | 5.4% | 5.3% |
| Rate of compensation increase | 5.1% | 4.9% |
Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international
pension plans for theyears ended December 31 were as follows:
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Discount rate | 5.3% | 5.1% | 5.6% |
| Expected long-term return on plan assets | 4.9% | 4.0% | 3.8% |
| Rate of compensation increase | 4.9% | 2.9% | 5.4% |
Assumed long-term rates of return on plan assets, discount rates for estimating benefit obligations, and rates of
compensation increases vary by plan according to local economic conditions. Where possible, discount rates were determined
based on the prevailing market rates of a portfolio of high-quality debt instruments with maturities matching the expected
timing of the payment of the benefit obligations. Expected long-term rates of return on plan assets were determined based upon
an evaluation of our plan assets and historical trends and experience, taking into account current and expected market
conditions.
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