Halliburton Tax Systems Project

Income Tax System Recommendation

page - 2

Need For Change

Are inadequate for basic tax functions: - Provision system (TIS) is unsupported- Provision & Compliance systems not integrated- Poor functionality (FIN48, FIN18, TBBS do not exist in current systems)

And do not support our Tax Vision: - More Tax resources allocated to Tax Planning- Single Income Tax System platform supporting:

• Global provision and U.S. compliance Integrated• Tax planning and tax controversy processes• Visibility of global tax attributes

- Foreign Tax Compliance- Integration of Transactional Taxes

• VAT, Sales & Use, Property

- Finance ERP systems (SAP, HFM, and Hyperion Planning) configured to support Tax

Our Current Systems …

page - 3

Software Evaluation

Engaged All Tax Disciplines Intense evaluation of two leading vendors:

CorpTax OneSource

CompanyMLM Information Services, LLC.

(Private Equity)

Thomson ReutersNYSE:TRI$13B RevenuePresence in 100 countries

Strategy • Build on Compliance Core • Single Database

• Acquire Best–In-Class Tax Systems

• Integrate

Software Strengths

• Compliance• Single Database

• Provision• Data Management (supports

Process Improvement)• Foreign Support

OneSource Is A Better Fit For Halliburton

page - 4

How OneSource Supports Our Direction

Process Improvement:- Flexible Data Feeds & Automation of Adjustments enables us to work with

F&A to Improve upstream data feeds- Workflow: build standard processes into software = Risk mitigation- Improved functionality (fewer manual workarounds, reformatting reports)- Easier for Tax staff to move between Provision & Compliance

Data Management:- Enables automation- More flexible data feeds- Less maintenance

Provision:- Uncertain Tax Position Functionality (FIN 48)- Forecasting Functionality (FIN18)- Global Provision view– visibility across board, less manual effort

Allows Us To Focus On Higher Value-Added Tax Activities

page - 5

Project Cost

Total Project Spend (2011 & 2012): $2.0M Annual Savings (Post-Implementation):

$0.75M- Headcount reduction (4) : $680K- Elimination of Legacy Systems: $200K- Increased Annual Software Cost: ($130K)

Pay-Back in Year 4 (2014)

OneSource Implementation Complete Jan. 1 2013

2011 2012 2013 2014 TotalProject Spend 943 1,080 0 0 2,023Project Savings 170 538 748 748 2,204Cumulative Headcount Reduction 1 2 4 4 4

Budget Impact (773) (542) 748 748 181Cumulative Budget Impact (773) (1,315) (567) 181

Implementation Production

page - 6

Next Steps

Coordinate with:- Procurement & Legal- IT- Audit- F & A

Acquire Software/Services- Begin Implementation