Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Note 13   Condensed Consolidating Financial Information

Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware. The following condensed consolidating financial information is included so that separate financial statements of Nabors Delaware are not required to be filed with the SEC. The condensed consolidating financial statements present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

The following condensed consolidating financial information presents condensed consolidating balance sheets as of June 30, 2011 and December 31, 2010, statements of income (loss) for the three and six months ended June 30, 2011 and 2010 and the consolidating statements of cash flows for the six months ended June 30, 2011 and 2010 of (a) Nabors, parent/guarantor, (b) Nabors Delaware, issuer of public debt securities guaranteed by Nabors, (c) the non-guarantor subsidiaries, (d) consolidating adjustments necessary to consolidate Nabors and its subsidiaries and (e) Nabors on a consolidated basis.

Condensed Consolidating Balance Sheets

	June 30, 2011
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating			Consolidated
	Guarantor)		Guarantor)		Guarantors)		Adjustments			Total
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,687	$	22	$	527,113	$	—		$	528,822
Short-term investments		—		—		144,220		—			144,220
Assets held for sale		—		—		311,295		—			311,295
Accounts receivable, net		—		—		1,191,182		—			1,191,182
Inventory		—		—		199,899		—			199,899
Deferred income taxes		—		—		38,809		—			38,809
Other current assets		50		3,959		134,705		—			138,714
Total current assets		1,737		3,981		2,547,223		—			2,552,941
Long-term investments and other receivables		—		—		42,119		—			42,119
Property, plant and equipment, net		—		42,742		8,329,663		—			8,372,405
Goodwill		—		—		494,100		—			494,100
Intercompany receivables		160,778		—		430,289		(591,067	)		—
Investment in unconsolidated affiliates		5,496,529		5,893,457		1,711,132		(12,797,148	)		303,970
Other long-term assets		—		33,742		316,375		—			350,117
Total assets	$	5,659,044	$	5,973,922	$	13,870,901	$	(13,388,215	)	$	12,115,652
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$		$	881	$	—		$	881
Trade accounts payable		44		27		550,939		—			551,010
Accrued liabilities		3,496		89,983		368,864		—			462,343
Income taxes payable		—				10,716		—			10,716
Total current liabilities		3,540		90,010		931,400		—			1,024,950
Long-term debt		—		4,213,363		51,223		—			4,264,586
Other long-term liabilities		—		33,383		224,313		—			257,696
Deferred income taxes		—		48,167		782,590		—			830,757
Intercompany payable		—		591,067		—		(591,067	)		—
Total liabilities		3,540		4,975,990		1,989,526		(591,067	)		6,377,989
Subsidiary preferred stock		—		—		69,188		—			69,188
Shareholders’ equity		5,655,504		997,932		11,799,216		(12,797,148	)		5,655,504
Noncontrolling interest		—		—		12,971		—			12,971
Total equity		5,655,504		997,932		11,812,187		(12,797,148	)		5,668,475
Total liabilities and equity	$	5,659,044	$	5,973,922	$	13,870,901	$	(13,388,215	)	$	12,115,652

	December 31, 2010
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating			Consolidated
	Guarantor)		Guarantor)		Guarantors)		Adjustments			Total
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	10,847	$	20	$	630,835	$	—		$	641,702
Short-term investments		—		—		159,488		—			159,488
Assets held for sale		—		—		352,048		—			352,048
Accounts receivable, net		—		—		1,116,510		—			1,116,510
Inventory		—		—		158,836		—			158,836
Deferred income taxes		—		—		31,510		—			31,510
Other current assets		50		16,366		136,420		—			152,836
Total current assets		10,897		16,386		2,585,647		—			2,612,930
Long-term investments and other receivables		—		—		40,300		—			40,300
Property, plant and equipment, net		—		44,270		7,771,149		—			7,815,419
Goodwill		—		—		494,372		—			494,372
Intercompany receivables		160,250		—		322,697		(482,947	)		—
Investment in unconsolidated affiliates		5,160,800		5,814,219		1,665,459		(12,372,755	)		267,723
Other long-term assets		—		36,538		379,287		—			415,825
Total assets	$	5,331,947	$	5,911,413	$	13,258,911	$	(12,855,702	)	$	11,646,569
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	1,378,178	$	840	$	—		$	1,379,018
Trade accounts payable		—		—		355,282		—			355,282
Accrued liabilities		3,785		89,480		301,027		—			394,292
Income taxes payable		—		6,859		18,929		—			25,788
Total current liabilities		3,785		1,474,517		676,078		—			2,154,380
Long-term debt		—		3,062,291		1,835		—			3,064,126
Other long-term liabilities		—		12,787		232,978		—			245,765
Deferred income taxes		—		71,815		698,432		—			770,247
Intercompany payable		—		301,451		181,496		(482,947	)		—
Total liabilities		3,785		4,922,861		1,790,819		(482,947	)		6,234,518
Subsidiary preferred stock		—		—		69,188		—			69,188
Shareholders’ equity		5,328,162		988,552		11,384,203		(12,372,755	)		5,328,162
Noncontrolling interest		—		—		14,701		—			14,701
Total equity		5,328,162		988,552		11,398,904		(12,372,755	)		5,342,863
Total liabilities and equity	$	5,331,947	$	5,911,413	$	13,258,911	$	(12,855,702	)	$	11,646,569

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended June 30, 2011
			Nabors			Other
	Nabors		Delaware			Subsidiaries
	(Parent/		(Issuer/			(Non-			Consolidating			Consolidated
	Guarantor)		Guarantor)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	1,354,905		$	—		$	1,354,905
Earnings (losses) from unconsolidated affiliates		—		—			9,307			—			9,307
Earnings (losses) from consolidated affiliates		195,770		18,971			(7,481	)		(207,260	)		—
Investment income (loss)		1		68			(1,038	)		—			(969	)
Intercompany interest income		—		17,405			—			(17,405	)		—
Total revenues and other income		195,771		36,444			1,355,693			(224,665	)		1,363,243
Costs and other deductions:
Direct costs		—		—			835,112			—			835,112
General and administrative expenses		3,120		49			122,683			(204	)		125,648
Depreciation and amortization		—		871			225,041			—			225,912
Depletion		—		—			2,698			—			2,698
Interest expense		—		69,059			(5,320	)		—			63,739
Intercompany interest expense		—		—			17,405			(17,405	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		203		(344	)		5,509			204			5,572
Total costs and other deductions		3,323		69,635			1,203,128			(17,405	)		1,258,681
Income (loss) from continuing operations before income taxes		192,448		(33,191	)		152,565			(207,260	)		104,562
Income tax expense (benefit)		—		(19,300	)		54,964			—			35,664
Subsidiary preferred stock dividend		—		—			750			—			750
Income (loss) from continuing operations, net of tax		192,448		(13,891	)		96,851			(207,260	)		68,148
Income (loss) from discontinued operations, net of tax		—		—			123,906			—			123,906
Net income (loss)		192,448		(13,891	)		220,757			(207,260	)		192,054
Less: Net (income) loss attributable to noncontrolling interest		—		—			394			—			394
Net income (loss) attributable to Nabors	$	192,448	$	(13,891	)	$	221,151		$	(207,260	)	$	192,448

	Three Months Ended June 30, 2010
				Nabors			Other
	Nabors			Delaware			Subsidiaries
	(Parent/			(Issuer/			(Non-			Consolidating			Consolidated
	Guarantor)			Guarantor)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—		$	—		$	896,029		$	—		$	896,029
Earnings (losses) from unconsolidated affiliates		—			—			8,845			—			8,845
Earnings (losses) from consolidated affiliates		40,070			54,499			23,802			(118,371	)		—
Investment income (loss)		3			—			2,311			—			2,314
Intercompany interest income		—			17,828			—			(17,828	)		—
Total revenues and other income		40,073			72,327			930,987			(136,199	)		907,188
Costs and other deductions:
Direct costs		—			—			517,531			—			517,531
General and administrative expenses		1,573			108			78,838			(182	)		80,337
Depreciation and amortization		—			700			174,697			—			175,397
Depletion		—			—			4,841			—			4,841
Interest expense		—			67,516			(2,223	)		—			65,293
Intercompany interest expense		—			—			17,828			(17,828	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		(5,121	)		9,781			6,182			182			11,024
Total costs and other deductions		(3,548	)		78,105			797,694			(17,828	)		854,423
Income (loss) from continuing operations before income taxes		43,621			(5,778	)		133,293			(118,371	)		52,765
Income tax expense (benefit)		—			(22,302	)		31,096			—			8,794
Income (loss) from continuing operations, net of tax		43,621			16,524			102,197			(118,371	)		43,971
Income (loss) from discontinued operations, net of tax		—			—			(909	)		—			(909	)
Net income (loss)		43,621			16,524			101,288			(118,371	)		43,062
Less: Net (income) loss attributable to noncontrolling interest		—			—			559			—			559
Net income (loss) attributable to Nabors	$	43,621		$	16,524		$	101,847		$	(118,371	)	$	43,621

	Six Months Ended June 30, 2011
			Nabors			Other
	Nabors		Delaware			Subsidiaries
	(Parent/		(Issuer/			(Non —			Consolidating			Consolidated
	Guarantor)		Guarantor)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	2,736,184		$	—		$	2,736,184
Earnings (losses) from unconsolidated affiliates		—		—			25,581			—			25,581
Earnings (losses) from consolidated affiliates		281,564		78,864			22,177			(382,605	)		—
Investment income (loss)		4		68			11,246			—			11,318
Intercompany interest income		—		36,089			—			(36,089	)		—
Total revenues and other income		281,568		115,021			2,795,188			(418,694	)		2,773,083
Costs and other deductions:
Direct costs		—		—			1,693,483			—			1,693,483
General and administrative expenses		5,993		90			238,325			(302	)		244,106
Depreciation and amortization		—		1,742			450,272			—			452,014
Depletion		—		—			6,271			—			6,271
Interest expense		—		146,408			(8,745	)		—			137,663
Intercompany interest expense		—		—			36,089			(36,089	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		302		(808	)		11,805			302			11,601
Total costs and other deductions		6,295		147,432			2,427,500			(36,089	)		2,545,138
Income (loss) from continuing operations before income taxes		275,273		(32,411	)		367,688			(382,605	)		227,945
Income tax expense (benefit)		—		(41,172	)		115,143			—			73,971
Subsidiary preferred stock dividend		—		—			1,500			—			1,500
Income (loss) from continuing operations, net of tax		275,273		8,761			251,045			(382,605	)		152,474
Income (loss) from discontinued operations, net of tax		—		—			121,736			—			121,736
Net income (loss)		275,273		8,761			372,781			(382,605	)		274,210
Less: Net (income) loss attributable to noncontrolling interest		—		—			1,063			—			1,063
Net income (loss) attributable to Nabors	$	275,273	$	8,761		$	373,844		$	(382,605	)	$	275,273

	Six Months Ended June 30, 2010
				Nabors			Other
	Nabors			Delaware			Subsidiaries
	(Parent/			(Issuer/			(Non —			Consolidating			Consolidated
	Guarantor)			Guarantor)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—		$	—		$	1,787,375		$	—		$	1,787,375
Earnings (losses) from unconsolidated affiliates		—			—			16,487			—			16,487
Earnings (losses) from consolidated affiliates		74,016			72,275			8,010			(154,301	)		—
Investment income (loss)		7			—			(250	)		—			(243	)
Intercompany interest income		—			35,943			—			(35,943	)		—
Total revenues and other income		74,023			108,218			1,811,622			(190,244	)		1,803,619
Costs and other deductions:
Direct costs		—			—			1,022,728			—			1,022,728
General and administrative expenses		3,783			179			152,073			(272	)		155,763
Depreciation and amortization		—			1,561			345,372			—			346,933
Depletion		—			—			9,868			—			9,868
Interest expense		—			137,715			(5,653	)		—			132,062
Intercompany interest expense		—			—			35,943			(35,943	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		(13,581	)		21,292			23,408			272			31,391
Total costs and other deductions		(9,798	)		160,747			1,583,739			(35,943	)		1,698,745
Income (loss) from continuing operations before income taxes		83,821			(52,529	)		227,883			(154,301	)		104,874
Income tax expense (benefit)		—			(46,177	)		63,561			—			17,384
Income (loss) from continuing operations, net of tax		83,821			(6,352	)		164,322			(154,301	)		87,490
Income (loss) from discontinued operations, net of tax		—			—			(5,330	)		—			(5,330	)
Net income (loss)		83,821			(6,352	)		158,992			(154,301	)		82,160
Less: Net (income) loss attributable to noncontrolling interest		—			—			1,661			—			1,661
Net income (loss) attributable to Nabors	$	83,821		$	(6,352	)	$	160,653		$	(154,301	)	$	83,821

Condensed Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2011
				Nabors			Other
	Nabors			Delaware			Subsidiaries
	(Parent/			(Issuer/			(Non —			Consolidating			Consolidated
	Guarantor)			Guarantor)			Guarantors)			Adjustments			Total
	(In thousands)
Net cash provided by (used for) operating activities	$	1,044		$	256,452		$	612,406		$	—		$	869,902
Cash flows from investing activities:
Purchases of investments		—			—			(7,945	)		—			(7,945	)
Sales and maturities of investments		—			—			20,622			—			20,622
Investment in unconsolidated affiliates		—			—			(29,762	)		—			(29,762	)
Distribution of proceeds from asset sales from unconsolidated affiliates		—			—			119,207			—			119,207
Capital expenditures		—			—			(1,003,245	)		—			(1,003,245	)
Proceeds from sales of assets and insurance claims		—			—			102,067			—			102,067
Cash paid for investments in consolidated affiliates		(19,300	)		—			—			19,300			—
Net cash provided by (used for) investing activities		(19,300	)		—			(799,056	)		19,300			(799,056	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			11,203			—			11,203
Proceeds from issuance of common shares, net		11,623			—			(1	)		—			11,622
Proceeds from revolving credit facilities		—			1,150,000			50,000			—			1,200,000
Debt issuance costs					(2,188	)								(2,188	)
Reduction in long-term debt		—			(1,404,247	)		—			—			(1,404,247	)
Repurchase of equity component of convertible debt		—			(14	)		—			—			(14	)
Purchase of restricted stock		(2,527	)		—			—			—			(2,527	)
Tax benefit related to share-based awards		—			(1	)		43			—			42
Proceeds from parent contributions		—			—			19,300			(19,300	)		—
Net cash (used for) provided by financing activities		9,096			(256,450	)		80,545			(19,300	)		(186,109	)
Effect of exchange rate changes on cash and cash equivalents		—			—			2,383			—			2,383
Net (decrease) increase in cash and cash equivalents		(9,160	)		2			(103,722	)		—			(112,880	)
Cash and cash equivalents, beginning of period		10,847			20			630,835			—			641,702
Cash and cash equivalents, end of period	$	1,687		$	22		$	527,113		$	—		$	528,822

	Six Months Ended June 30, 2010
				Nabors			Other
	Nabors			Delaware			Subsidiaries
	(Parent/			(Issuer/			(Non —			Consolidating
	Guarantor)			Guarantor)			Guarantors)			Adjustments			Consolidated Total
	(In thousands)
Net cash provided by (used for) operating activities	$	88,082		$	279,825		$	102,002		$	—		$	469,909
Cash flows from investing activities:
Purchases of investments		—			—			(27,988	)		—			(27,988	)
Sales and maturities of investments		—			—			27,997			—			27,997
Investment in unconsolidated affiliates		—			—			(10,936	)		—			(10,936	)
Capital expenditures		—			—			(369,455	)		—			(369,455	)
Proceeds from sales of assets and insurance claims		—			—			17,567			—			17,567
Cash paid for investments in consolidated affiliates		(88,000	)		—			—			88,000			—
Net cash provided by (used for) investing activities		(88,000	)		—			(362,815	)		88,000			(362,815	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			(6,130	)		—			(6,130	)
Proceeds from issuance of common shares, net		4,733			—			—			—			4,733
Reduction in long-term debt		—			(273,605	)		—			—			(273,605	)
Repurchase of equity component of convertible debt		—			(4,712	)		—			—			(4,712	)
Settlement of call options and warrants, net		—			1,133			—			—			1,133
Purchase of restricted stock		(1,887	)		—			—			—			(1,887	)
Tax benefit related to share-based awards		—			—			(45	)		—			(45	)
Proceeds from parent contributions		—			—			88,000			(88,000	)		—
Net cash (used for) provided by financing activities		2,846			(277,184	)		81,825			(88,000	)		(280,513	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(6,803	)		—			(6,803	)
Net (decrease) increase in cash and cash equivalents		2,928			2,641			(185,791	)		—			(180,222	)
Cash and cash equivalents, beginning of period		11,702			135			915,978			—			927,815
Cash and cash equivalents, end of period	$	14,630		$	2,776		$	730,187		$	—		$	747,593