Condensed Consolidating Financial Information

9 Months Ended

Sep. 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 September 30, 2011 and December 31, 2010, statements of income (loss) for the three and nine months ended September 30, 2011 and 2010 and the consolidating statements of cash flows for the nine months ended September 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

	September 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	$	1,156	$	22	$	274,283	$	—		$	275,461
Short-term investments		—		—		119,859		—			119,859
Assets held for sale		—		—		267,911		—			267,911
Accounts receivable, net		—		—		1,397,725		—			1,397,725
Inventory		—		—		233,298		—			233,298
Deferred income taxes		—		—		83,388		—			83,388
Other current assets		50		1,140		165,512		—			166,702
Total current assets		1,206		1,162		2,541,976		—			2,544,344
Long-term investments and other receivables		—		—		40,373		—			40,373
Property, plant and equipment, net		—		41,656		8,535,557		—			8,577,213
Goodwill		—		—		501,297		—			501,297
Intercompany receivables		162,615		—		537,881		(700,496	)		—
Investment in unconsolidated affiliates		5,472,298		6,069,063		1,810,558		(13,028,853	)		323,066
Other long-term assets		—		33,402		298,651		—			332,053
Total assets	$	5,636,119	$	6,145,283	$	14,266,293	$	(13,729,349	)	$	12,318,346
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	274,447	$	780	$	—		$	275,227
Trade accounts payable		1		148		658,543		—			658,692
Accrued liabilities		4,306		40,586		415,051		—			459,943
Income taxes payable		—		—		21,903		—			21,903
Total current liabilities		4,307		315,181		1,096,277		—			1,415,765
Long-term debt		—		4,037,060		51,073		—			4,088,133
Other long-term liabilities		—		32,813		187,249		—			220,062
Deferred income taxes		—		30,225		851,434		—			881,659
Intercompany payable		—		651,883		48,613		(700,496	)		—
Total liabilities		4,307		5,067,162		2,234,646		(700,496	)		6,605,619
Subsidiary preferred stock		—		—		69,188		—			69,188
Shareholders’ equity		5,631,812		1,078,121		11,950,732		(13,028,853	)		5,631,812
Noncontrolling interest		—		—		11,727		—			11,727
Total equity		5,631,812		1,078,121		11,962,459		(13,028,853	)		5,643,539
Total liabilities and equity	$	5,636,119	$	6,145,283	$	14,266,293	$	(13,729,349	)	$	12,318,346

	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 September 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	$	—	$	—		$	1,624,791		$	—		$	1,624,791
Earnings (losses) from unconsolidated affiliates		—		—			33,723			—			33,723
Earnings (losses) from consolidated affiliates		77,212		111,096			87,037			(275,345	)		—
Investment income (loss)		—		—			738			—			738
Intercompany interest income		—		16,615			—			(16,615	)		—
Total revenues and other income		77,212		127,711			1,746,289			(291,960	)		1,659,252
Costs and other deductions:
Direct costs		—		—			1,030,231			—			1,030,231
General and administrative expenses		2,809		154			119,557			(148	)		122,372
Depreciation and amortization		—		872			233,962			—			234,834
Depletion		—		—			11,789			—			11,789
Interest expense		—		64,655			(6,748	)		—			57,907
Intercompany interest expense		—		—			16,615			(16,615	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		147		(574	)		(11,878	)		148			(12,157	)
Impairments and other charges		—		—			98,072			—			98,072
Total costs and other deductions		2,956		65,107			1,491,600			(16,615	)		1,543,048
Income (loss) from continuing operations before income taxes		74,256		62,604			254,689			(275,345	)		116,204
Income tax expense (benefit)		—		(17,942	)		51,192			—			33,250
Subsidiary preferred stock dividend		—		—			750			—			750
Income (loss) from continuing operations, net of tax		74,256		80,546			202,747			(275,345	)		82,204
Income (loss) from discontinued operations, net of tax		—		—			(7,240	)		—			(7,240	)
Net income (loss)		74,256		80,546			195,507			(275,345	)		74,964
Less: Net (income) loss attributable to noncontrolling interest		—		—			(708	)		—			(708	)
Net income (loss) attributable to Nabors	$	74,256	$	80,546		$	194,799		$	(275,345	)	$	74,256

	Three Months Ended September 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	$	—		$	—		$	1,069,261		$	—		$	1,069,261
Earnings (losses) from unconsolidated affiliates		—			—			11,842			—			11,842
Earnings (losses) from consolidated affiliates		(38,086	)		(176,410	)		(200,847	)		415,343			—
Investment income (loss)		5			—			(738	)		—			(733	)
Intercompany interest income		—			18,178			—			(18,178	)		—
Total revenues and other income		(38,081	)		(158,232	)		879,518			397,165			1,080,370
Costs and other deductions:
Direct costs		—			—			625,561			—			625,561
General and administrative expenses		2,250			119			85,109			(284	)		87,194
Depreciation and amortization		—			871			197,280			—			198,151
Depletion		—			—			5,778			—			5,778
Interest expense		—			69,021			(2,048	)		—			66,973
Intercompany interest expense		—			—			18,178			(18,178	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		(724	)		1,151			8,696			284			9,407
Impairments and other charges		—			—			123,099			—			123,099
Total costs and other deductions		1,526			71,162			1,061,653			(18,178	)		1,116,163
Income (loss) from continuing operations before income taxes		(39,607	)		(229,394	)		(182,135	)		415,343			(35,793	)
Income tax expense (benefit)		—			(19,604	)		15,374			—			(4,230	)
Income (loss) from continuing operations, net of tax		(39,607	)		(209,790	)		(197,509	)		415,343			(31,563	)
Income (loss) from discontinued operations, net of tax		—			—			(7,591	)		—			(7,591	)
Net income (loss)		(39,607	)		(209,790	)		(205,100	)		415,343			(39,154	)
Less: Net (income) loss attributable to noncontrolling interest		—			—			(453	)		—			(453	)
Net income (loss) attributable to Nabors	$	(39,607	)	$	(209,790	)	$	(205,553	)	$	415,343		$	(39,607	)

	Nine Months Ended September 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	$	—	$	—		$	4,360,975		$	—		$	4,360,975
Earnings (losses) from unconsolidated affiliates		—		—			59,304			—			59,304
Earnings (losses) from consolidated affiliates		358,778		189,960			109,212			(657,950	)		—
Investment income (loss)		4		68			11,984			—			12,056
Intercompany interest income		—		52,704			—			(52,704	)		—
Total revenues and other income		358,782		242,732			4,541,475			(710,654	)		4,432,335
Costs and other deductions:
Direct costs		—		—			2,723,714			—			2,723,714
General and administrative expenses		8,803		244			357,881			(450	)		366,478
Depreciation and amortization		—		2,614			684,234			—			686,848
Depletion		—		—			18,060			—			18,060
Interest expense		—		211,063			(15,493	)		—			195,570
Intercompany interest expense		—		—			52,704			(52,704	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		450		(1,382	)		(74	)		450			(556	)
Impairments and other charges		—		—			98,072			—			98,072
Total costs and other deductions		9,253		212,539			3,919,098			(52,704	)		4,088,186
Income (loss) from continuing operations before income taxes		349,529		30,193			622,377			(657,950	)		344,149
Income tax expense (benefit)		—		(59,114	)		166,335			—			107,221
Subsidiary preferred stock dividend		—		—			2,250			—			2,250
Income (loss) from continuing operations, net of tax		349,529		89,307			453,792			(657,950	)		234,678
Income (loss) from discontinued operations, net of tax		—		—			114,496			—			114,496
Net income (loss)		349,529		89,307			568,288			(657,950	)		349,174
Less: Net (income) loss attributable to noncontrolling interest		—		—			355			—			355
Net income (loss) attributable to Nabors	$	349,529	$	89,307		$	568,643		$	(657,950	)	$	349,529

	Nine Months Ended September 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	$	—		$	—		$	2,856,636		$	—		$	2,856,636
Earnings (losses) from unconsolidated affiliates		—			—			28,329			—			28,329
Earnings (losses) from consolidated affiliates		35,930			(104,135	)		(192,837	)		261,042			—
Investment income (loss)		12			—			(988	)		—			(976	)
Intercompany interest income		—			54,121			—			(54,121	)		—
Total revenues and other income		35,942			(50,014	)		2,691,140			206,921			2,883,989
Costs and other deductions:
Direct costs		—			—			1,648,289			—			1,648,289
General and administrative expenses		6,033			298			237,182			(556	)		242,957
Depreciation and amortization		—			2,432			542,652			—			545,084
Depletion		—			—			15,646			—			15,646
Interest expense		—			206,736			(7,701	)		—			199,035
Intercompany interest expense		—			—			54,121			(54,121	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		(14,305	)		22,443			32,104			556			40,798
Impairments and other charges		—			—			123,099			—			123,099
Total costs and other deductions		(8,272	)		231,909			2,645,392			(54,121	)		2,814,908
Income (loss) from continuing operations before income taxes		44,214			(281,923	)		45,748			261,042			69,081
Income tax expense (benefit)		—			(65,781	)		78,935			—			13,154
Income (loss) from continuing operations, net of tax		44,214			(216,142	)		(33,187	)		261,042			55,927
Income (loss) from discontinued operations, net of tax		—			—			(12,921	)		—			(12,921	)
Net income (loss)		44,214			(216,142	)		(46,108	)		261,042			43,006
Less: Net (income) loss attributable to noncontrolling interest		—			—			1,208			—			1,208
Net income (loss) attributable to Nabors	$	44,214		$	(216,142	)	$	(44,900	)	$	261,042		$	44,214

Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 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	$	6,163		$	227,747		$	874,224		$	—		$	1,108,134
Cash flows from investing activities:
Purchases of investments		—			—			(9,567	)		—			(9,567	)
Sales and maturities of investments		—			—			24,580			—			24,580
Cash paid for acquisition of business, net		—			—			(55,459	)		—			(55,459	)
Investment in unconsolidated affiliates		—			—			(54,762	)		—			(54,762	)
Distribution of proceeds from asset sales from unconsolidated affiliates		—			—			142,984			—			142,984
Capital expenditures		—			—			(1,532,597	)		—			(1,532,597	)
Proceeds from sales of assets and insurance claims		—			—			110,535			—			110,535
Cash paid for investments in consolidated affiliates		(25,450	)		(65,000	)		—			90,450			—
Net cash provided by (used for) investing activities		(25,450	)		(65,000	)		(1,374,286	)		90,450			(1,374,286	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			5,074			—			5,074
Proceeds from issuance of long-term debt		—			697,578			—			—			697,578
Proceeds from issuance of common shares, net		12,175			—			—			—			12,175
Proceeds from revolving credit facilities		—			1,250,000			50,000			—			1,300,000
Debt issuance costs		—			(6,065	)		—			—			(6,065	)
Reduction in long-term debt		—			(1,404,245	)		(26	)		—			(1,404,271	)
Reduction in revolving credit facilities		—			(700,000	)		—			—			(700,000	)
Repurchase of equity component of convertible debt		—			(12	)		—			—			(12	)
Purchase of restricted stock		(2,579	)		—			—			—			(2,579	)
Tax benefit related to share-based awards		—			(1	)		186			—			185
Proceeds from parent contributions		—			—			90,450			(90,450	)		—
Net cash (used for) provided by financing activities		9,596			(162,745	)		145,684			(90,450	)		(97,915	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(2,174	)		—			(2,174	)
Net (decrease) increase in cash and cash equivalents		(9,691	)		2			(356,552	)		—			(366,241	)
Cash and cash equivalents, beginning of period		10,847			20			630,835			—			641,702
Cash and cash equivalents, end of period	$	1,156		$	22		$	274,283		$	—		$	275,461

	Nine Months Ended September 30, 2010
				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	$	87,995		$	325,427		$	268,712		$	—		$	682,134
Cash flows from investing activities:
Purchases of investments		—			—			(27,695	)		—			(27,695	)
Sales and maturities of investments		—			—			32,103			—			32,103
Cash paid for acquisition of business, net		—			—			(680,230	)		—			(680,230	)
Investment in unconsolidated affiliates		—			—			(40,936	)		—			(40,936	)
Capital expenditures		—			—			(640,953	)		—			(640,953	)
Proceeds from sales of assets and insurance claims		—			—			26,084			—			26,084
Cash paid for investments in consolidated affiliates		(99,300	)		(732,000	)		—			831,300			—
Net cash provided by (used for) investing activities		(99,300	)		(732,000	)		(1,331,627	)		831,300			(1,331,627	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			(4,649	)		—			(4,649	)
Proceeds from issuance of long-term debt		—			691,281			—			—			691,281
Proceeds from issuance of common shares, net		5,391			—			—			—			5,391
Proceeds from revolving credit facilities		—			600,000			—			—			600,000
Debt issuance costs		—			(7,144	)		—			—			(7,144	)
Reduction in long-term debt		—			(274,095	)		(40,258	)		—			(314,353	)
Reduction in revolving credit facilities		—			(600,000	)		—			—			(600,000	)
Repurchase of equity component of convertible debt		—			(4,712	)		—			—			(4,712	)
Settlement of call options and warrants, net		—			1,134			—			—			1,134
Purchase of restricted stock		(1,904	)		—			—			—			(1,904	)
Tax benefit related to share-based awards		—			—			(38	)		—			(38	)
Proceeds from parent contributions		—			—			831,300			(831,300	)		—
Net cash (used for) provided by financing activities		3,487			406,464			786,355			(831,300	)		365,006
Effect of exchange rate changes on cash and cash equivalents		—			—			(3,645	)		—			(3,645	)
Net (decrease) increase in cash and cash equivalents		(7,818	)		(109	)		(280,205	)		—			(288,132	)
Cash and cash equivalents, beginning of period		11,702			135			915,978			—			927,815
Cash and cash equivalents, end of period	$	3,884		$	26		$	635,773		$	—		$	639,683