Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note 12   Segment Information

The following table sets forth financial information with respect to our reportable segments:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates from continuing operations:(1)
Contract Drilling:(2)
U.S. Lower 48 Land Drilling	$	430,895		$	350,348		$	1,214,447		$	925,262
U.S. Land Well-servicing		189,356			119,127			503,752			321,978
U.S. Offshore		46,069			26,504			116,807			103,680
Alaska		27,027			45,920			100,678			139,099
Canada		145,587			85,728			406,004			262,043
International		281,686			288,535			809,394			800,886
Subtotal Contract Drilling(3)		1,120,620			916,162			3,151,082			2,552,948
Pressure Pumping(4)		343,723			61,611			867,512			61,611
Oil and Gas(5)		43,104			11,280			74,987			31,682
Other Operating Segments(6)(7)		199,604			130,392			483,478			333,654
Other reconciling items(8)		(48,537	)		(38,342	)		(156,780	)		(94,930	)
Total	$	1,658,514		$	1,081,103		$	4,420,279		$	2,884,965
Adjusted income (loss) derived from operating activities from continuing operations:(1)(9)
Contract Drilling:
U.S. Lower 48 Land Drilling	$	104,877		$	70,452		$	284,203		$	188,907
U.S. Land Well-servicing		22,839			9,049			50,488			19,465
U.S. Offshore		2,457			(1,090	)		(2,579	)		14,387
Alaska		3,021			14,299			22,328			40,644
Canada		21,604			1,013			58,084			6,398
International		29,015			64,379			100,363			182,930
Subtotal Contract Drilling(3)		183,813			158,102			512,887			452,731
Pressure Pumping(4)		65,052			11,987			152,655			11,987
Oil and Gas(5)		23,841			1,037			28,030			5,654
Other Operating Segments(6)(7)		22,012			17,969			41,791			33,176
Other reconciling items(10)		(35,430	)		(24,676	)		(110,184	)		(70,559	)
Total adjusted income derived from operating activities	$	259,288		$	164,419		$	625,179		$	432,989
Interest expense		(57,907	)		(66,973	)		(195,570	)		(199,035	)
Investment income (loss)		738			(733	)		12,056			(976	)
Gains (losses) on sales and retirements of long-lived assets and other income (expense), net		12,157			(9,407	)		556			(40,798	)
Impairments and other charges		(98,072	)		(123,099	)		(98,072	)		(123,099	)
Income (loss) from continuing operations before income taxes		116,204			(35,793	)		344,149			69,081
Income tax expense (benefit)		33,250			(4,230	)		107,221			13,154
Subsidiary preferred stock dividend		750			—			2,250			—
Income (loss) from continuing operations, net of tax		82,204			(31,563	)		234,678			55,927
Income (loss) from discontinued operations, net of tax		(7,240	)		(7,591	)		114,496			(12,921	)
Net income (loss)		74,964			(39,154	)		349,174			43,006
Less: Net income (loss) attributable to noncontrolling interest		(708	)		(453	)		355			1,208
Net income (loss) attributable to Nabors	$	74,256		$	(39,607	)	$	349,529		$	44,214

	September 30,		December 31,
	2011		2010
	(In thousands)
Total assets:
Contract Drilling:(11)
U.S. Lower 48 Land Drilling	$	3,047,093	$	2,762,362
U.S. Land Well-servicing		768,442		630,518
U.S. Offshore		385,087		379,292
Alaska		281,252		313,123
Canada		919,341		1,065,268
International		3,594,294		3,279,763
Subtotal Contract Drilling		8,995,509		8,430,326
Pressure Pumping(4)		1,353,403		1,163,236
Oil and Gas(12)		848,135		805,410
Other Operating Segments(13)		675,908		539,373
Other reconciling items(10) (14)		445,391		708,224
Total assets	$	12,318,346	$	11,646,569

(1)	All information presents the operating activities of oil and gas assets in the Horn River basin in Canada and in the Llanos basin in Colombia as discontinued operations.
(2)	These segments include our drilling, well-servicing and workover operations on land and offshore.
(3)	Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.9) million and $.6 million for the three months ended September 30, 2011 and 2010, respectively, and $3.0 million and $3.7 million for the nine months ended September 30, 2011 and 2010, respectively.
(4)	Includes operating results of our Pressure Pumping operating segment for the period September 10 through September 30, 2010 and for the three and nine months ended September 30, 2011.
(5)	Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $34.9 million and $6.8 million for the three months ended September 30, 2011 and 2010, respectively, and $56.3 million and $14.5 million for the nine months ended September 30, 2011 and 2010, respectively.
(6)	Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software, and construction and logistics operations.
(7)	Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.3) million and $4.4 million for the three months ended September 30, 2011 and 2010, respectively, and $0 and $10.1 million for the nine months ended September 30, 2011 and 2010, respectively.
(8)	Represents the elimination of inter-segment transactions.
(9)	Adjusted income (loss) derived from operating activities is computed by subtracting direct costs, general and administrative expenses, depreciation and amortization, and depletion expense from Operating revenues and then adding Earnings (losses) from unconsolidated affiliates. Such amounts should not be used as a substitute for those amounts reported under GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided within the above table.

(10)	Represents the elimination of inter-segment transactions and unallocated corporate expenses.
(11)	Includes $57.9 million and $54.8 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively.
(12)	Includes $234.6 million and $146.5 million investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively.
(13)	Includes $28.0 million and $64.5 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2011 and December 31, 2010, respectively.
(14)	Includes $2.5 million and $1.9 million of investments in unconsolidated affiliates accounted for using the cost method as of September 30, 2011 and December 31, 2010, respectively.