Tax Systems Project April, 2011 Timing & Approach

The Challenge Need to balance between achieving the stated objectives of the Tax Systems Project (TIS replacement by Year End) with input & activities from the Tax Department’s Project Teams. Rationalize & Streamline … Replace TIS by Year End Tax Accounting Tax Planning Tax Compliance Data Management Tax Controversy Specific Year End Deliverable Ongoing Process Improvement

Universe of Data Management Issues Data Management & Projects Data Quality 2011 Tax Systems Project E&P Pools B.O. Auto FIT W/H Tax Pool SMEs Tax Fcst 2011 Data Management Projects Each Project Makes Small Improvement To Overall Data Management Types of Data Problems

Process Improvement Activities Coordination of Tax Systems & Continuous Improvement TIS Replacement BETTER Moves Tax to supported platform – avoids potential disaster with TIS Accomplishes “step” process improvement in 2011 –Eliminates many interfaces/data challenges –Integrates Provision/Compliance –Improved tool (functionality) Provides flexible platform to accommodate Continuous Improvement activities (e.g. changes in source data) Meet’s Stated Objective of Domestic Provision (TIS) / Domestic Compliance Solution “Step” improvements in processes, data, productivity

Platform Recommendation Process ID Areas that may have requirements & the appropriate POC to work with. Define & Document Final Requirements Vendor Demos / Discussions Vendor Follow-Up Discuss any additional requirements/needs – Add’l meetings/demos if necessary. Recommendation Team Analysis March 22 Requirements Update Meeting OneSource - 3/24 CorpTax – 3/31. Ongoing Process Improvement Activity with Compliance, Tax Accounting, Planning and Data Teams. Initial considerations from ongoing Process Improvement Projects. Approximately End of April Input from Process Improvement teams at various stages in Tax Systems Project RFI Requirements ID Additional Requirements ID Undefined Requirements

Platform Evaluation Evaluation A&E Phoenix Provision RFI A&E Phoenix Provision RFI Rich History of Background Data Halliburton Subject Matter Experts References KPMG Study KBR Site Visit References KPMG Study KBR Site Visit External Data CorpTax OneSource 1.Software Functionality 2.Integration 3.Software Company 4.Project Complexity/Risk 5.Cost (TCO) 6.IT Considerations Evaluation Criteria:Recommendation Tax Department Functional Teams Tax Department Functional Teams Staff Input Vendor Demos & Workshops

High-Level Implementation Steps Project Planning / Scheduling Vendor Negotiation Procure Products / Services RecommendationPlanning Configuration / Implementation Test / DebugRollout Data Interfaces Workflow Security Tax Functionality (Exception reporting, automated adjustments, etc.) LIVE ! Installation Training Parallel Ongoing Process Improvement (CI) Activity with Compliance, Tax Accounting, Planning and Data Teams. Input From CI Activities To Be Incorporated Into Planning & Implementation of 2011 TIS Replacement Project 4Q 2011May-Sept Approximately End of April Input from Process Improvement teams at various stages in Tax Systems Project Staff

Ongoing Process Process Improvement Activity with Compliance, Tax Accounting, Planning and Data Teams. AlignPlanExecuteTest/ControlAlignPlanExecuteTest/ControlAlignPlanExecuteTest/Control Each Year Tax Systems Activities Are Coordinated With Opportunities Identified Through Compliance, Tax Accounting, Planning & Data Teams

Data Management & Projects SOURCING ISSUES TIMING PROBLEMS DATA QUALITY PROCESS ISSUES FIT Automation

Data Management & Projects Data Quality Tax Systems Project 2011 E&P Pools BO Auto FIT W/H Tax Pool SMEs Tax Fcst