Earnings (Losses) Per Share

12 Months Ended

Dec. 31, 2012

Earnings (Losses) Per Share

Earnings (Losses) Per Share

Note 19 Earnings (Losses) Per Share

We include unvested restricted stock awards in the calculation of basic and diluted earnings per share using the two-class method as required by the Earnings Per Share Topic of the ASC.

A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows:

	Year Ended December 31,
	2012			2011			2010
	(In thousands, except per share amounts)
Net income (loss) (numerator):
Income (loss) from continuing operations, net of tax	$	239,055		$	342,164		$	255,870
Less: net (income) loss attributable noncontrolling interest	621			1,045			85
Net income (loss) from continuing operations - basic	238,434			341,119			255,785
Add: interest expense on assumed conversion of our 0.94% senior exchangeable notes, net of tax (1)	—			—			—
Adjusted net income (loss) from continuing operations, net of tax - diluted	238,434			341,119			255,785
Income (loss) from discontinued operations, net of tax	(74,400		)	(97,440		)	(161,090		)
Adjusted net income (loss) attributable to Nabors	$	164,034		$	243,679		$	94,695
Earnings (losses) per share:
Basic from continuing operations	$	0.82		$	1.19		$	0.90
Basic from discontinued operations	(0.25		)	(0.34		)	(0.57		)
Total Basic	$	0.57		$	0.85		$	0.33
Diluted from continuing operations	$	0.82		$	1.17		$	0.88
Diluted from discontinued operations	(0.26		)	(0.34		)	(0.55		)
Total Diluted	$	0.56		$	0.83		$	0.33
Shares (denominator):
Weighted-average number of shares outstanding - basic	289,965			287,118			285,145
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method	2,358			5,366			4,851
Assumed conversion of our 0.94% senior exchangeable notes due 2011 (1)	—			—			—
Weighted-average number of shares outstanding - diluted	292,323			292,484			289,996

(1) At maturity in May 2011, we redeemed the remaining aggregate principal amount of $1.4 billion of our 0.94% senior exchangeable notes. Prior to maturity, we had purchased $1.4 billion par value of these notes in the open market for cash of $1.2 billion. Diluted earnings (losses) per share for 2010 exclude any incremental shares that would have been issuable upon exchange of these notes based on a calculation using our stock price. Our stock price did not exceed the threshold during any period in 2010.

For all periods presented, the computation of diluted earnings (losses) per Nabors’ share excludes outstanding stock options and warrants with exercise prices greater than the average market price of Nabors’ common shares, because their inclusion would be anti-dilutive and because they are not considered participating securities. The average number of options and warrants that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share in the future was 14,200,915, 9,241,543 and 14,004,749 shares during the years ended December 31, 2012, 2011 and 2010, respectively.  In any period during which the average market price of Nabors’ common shares exceeds the exercise prices of these stock options and warrants, such stock options and warrants will be included in our diluted earnings (losses) per share computation using the if-converted method of accounting. Restricted stock is included in our basic and diluted earnings (losses) per share computation using the two-class method of accounting in all periods because such stock is considered participating securities.