Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information

Segment Information

Note 15 Segment Information

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

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2012			2011			2012			2011
				(In thousands)
Operating revenues and earnings (losses) from unconsolidated affiliates from continuing operations: (1)
Drilling and Rig Services:
U.S. Lower 48 Land Drilling	$	461,860		$	430,895		$	1,451,928		$	1,214,447
U.S. Offshore	66,675			46,069			207,768			116,807
Alaska	27,249			27,027			121,958			100,678
Canada	135,786			145,587			420,469			406,004
International	329,245			281,686			940,332			809,394
Other Rig Services(2)	188,694			190,744			659,066			462,779
Subtotal Drilling and Rig Services (3)	1,209,509			1,122,008			3,801,521			3,110,109
Completion and Production Services:
U.S. Land Well-servicing	222,034			189,356			645,740			503,752
Pressure Pumping	381,241			343,723			1,166,940			867,512
Subtotal Completion and Production Services	603,275			533,079			1,812,680			1,371,264
Oil and Gas (4)	(98,805		)	34,909			(301,801		)	56,285
Other reconciling items (5)	(47,087		)	(47,769		)	(220,954		)	(152,639		)
Total	$	1,666,892		$	1,642,227		$	5,091,446		$	4,385,019
Adjusted income (loss) derived from operating activities from continuing operations: (1)(6)
Drilling and Rig Services:
U.S. Lower 48 Land Drilling	$	114,884		$	104,877		$	372,997		$	284,203
U.S. Offshore	(3,650		)	2,457			14,006			(2,579		)
Alaska	3,973			3,021			40,288			22,328
Canada	22,889			21,604			68,458			58,084
International	30,299			29,015			67,838			100,363
Other Rig Services(2)	16,207			20,175			74,232			42,465
Subtotal Drilling and Rig Services (3)	184,602			181,149			637,819			504,864
Completion and Production Services:
U.S. Land Well-servicing	32,766			22,839			83,253			50,488
Pressure Pumping	47,218			65,052			158,222			152,655
Subtotal Completion and Production Services	79,984			87,891			241,475			203,143
Oil and Gas (7)	(2,486		)	34,909			8,230			56,285
Other reconciling items (8)	(36,571		)	(34,650		)	(110,396		)	(109,932		)
Total adjusted income derived from operating activities	225,529			269,299			777,128			654,360
Full-cost ceiling test writedowns	(96,319		)	—			(310,031		)	—
Interest expense	(63,604		)	(58,060		)	(189,717		)	(195,781		)
Investment income (loss)	7,224			727			32,844			12,032
Gains (losses) on sales and retirements of long-lived assets and other income (expense), net	(10,263		)	11,607			(21,837		)	1,100
Impairments and other charges	—			(98,072		)	(147,503		)	(98,072		)
Income (loss) from continuing operations before income taxes	62,567			125,501			140,884			373,639
Income tax expense (benefit)	(4,001		)	37,561			28,851			118,760
Subsidiary preferred stock dividend	750			750			2,250			2,250
Income (loss) from continuing operations, net of tax	65,818			87,190			109,783			252,629
Income (loss) from discontinued operations, net of tax	10,826			(12,226		)	26,721			96,545
Net income (loss)	76,644			74,964			136,504			349,174
Less: Net income (loss) attributable to noncontrolling interest	(988		)	(708		)	453			355
Net income (loss) attributable to Nabors	$	75,656		$	74,256		$	136,957		$	349,529

	September 30,2012		December 31, 2011
	(In thousands)
Total assets:
Drilling and Rig Services:
U.S. Lower 48 Land Drilling	$	3,436,578	$	3,216,803
U.S. Offshore	484,100		402,506
Alaska	277,930		288,253
Canada	916,676		962,239
International	3,758,290		3,702,611
Other Rig Services (2)	683,120		720,775
Subtotal Drilling and Rig Services (9)	9,556,694		9,293,187
Completion and Production Services:
U.S. Land Well-servicing	842,312		812,049
Pressure Pumping	1,340,701		1,503,298
Subtotal Completion and Production Services	2,183,013		2,315,347
Oil and Gas(10)	513,666		796,327
Other reconciling items (8)	671,188		507,279
Total assets	$	12,924,561	$	12,912,140

(1)All periods present the operating activities of our wholly owned oil and gas businesses in the United States, Canada and Colombia, our equity interests in joint ventures in Canada and Colombia, and our aircraft logistics operations in Canada as discontinued operations.

(2)Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software, and construction services. These services represent our other companies that are not aggregated into a reportable operating segment.

(3)Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(.7) million and $(1.2) million for the three months ended September 30, 2012 and 2011, respectively, and $(.7) million and $3.0 million for the nine months ended September 30, 2012 and 2011, respectively.

(4)Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(98.8) million and $34.9 million for the three months ended September 30, 2012 and 2011, respectively, and $(301.8) million and $56.3 million for the nine months ended September 30, 2012 and 2011, respectively.

(5)Represents the elimination of inter-segment transactions.

(6)Adjusted income (loss) derived from operating activities is computed by subtracting direct costs, general and administrative expenses, and depreciation and amortization from Operating revenues and then adding Earnings (losses) from unconsolidated affiliates (excluding our proportionate share of full-cost ceiling test writedowns recorded by our oil and gas joint venture). These amounts should not be used as a substitute for those amounts reported in accordance with 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 in the above table.

(7)Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(2.5) million (excluding $96.3 million, which represents our proportionate share of full-cost ceiling test writedowns by our oil and gas joint venture) and $34.9 million for the three months ended September 30, 2012 and 2011, respectively, and $8.2 million (excluding $310.0 million, which represents our proportionate share of full-cost ceiling test writedowns by our oil and gas joint venture)  and $56.3 million, for the nine months ended September 30, 2012 and 2011, respectively.

(8)Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets.

(9)Includes $70.2 million and $76.9 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2012 and December 31, 2011, respectively.

(10)Includes $294.1 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2011.