Segment Information (Tables)

12 Months Ended

Dec. 31, 2012

Segment Information

Financial information with respect to reportable segments

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates from continuing operations: (1)
Drilling & Rig Services:
U.S. Lower 48 Land Drilling	$	1,860,357		$	1,698,620		$	1,294,853
U.S. Offshore	268,986			170,727			123,761
Alaska	147,465			129,894			179,218
Canada	572,616			574,754			389,229
International	1,265,060			1,104,461			1,093,608
Other Rig Services (2)	839,533			674,206			427,154
Subtotal Drilling & Rig Services (3)	4,954,017			4,352,662				3,507,823
Completion & Production Services:
U.S. Production Services	857,668			701,223			444,665
Completion Services	1,462,767			1,237,306			321,295
Subtotal Completion & Production Services (4)	2,320,435			1,938,529			765,960
Other reconciling items (5)	(586,199		)	(174,193		)	(106,033		)
Total	$	6,688,253		$	6,116,998		$	4,167,750

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Adjusted income (loss) derived from operating activities from continuing operations: (1) (6)
Drilling & Rig Services:
U.S. Lower 48 Land Drilling	$	467,716		$	414,317		$	274,215
U.S. Offshore	(305		)	843			9,245
Alaska	42,483			27,671			51,896
Canada	96,536			94,637			22,970
International	91,226			123,813			254,744
Other Rig Services (2)	79,061			55,617			42,401
Subtotal Drilling & Rig Services (3)	776,717			716,898			655,471
Completion & Production Services:
U.S. Production Services	103,659			74,725			31,597
Completion Services	188,518			229,125			66,651
Subtotal Completion & Production Services (4)	292,177			303,850			98,248
Other reconciling items (7)	(150,245		)	(153,385		)	(104,827		)
Total adjusted income (loss) derived from operating activities	$	918,649		$	867,363		$	648,892
U.S. oil and gas joint venture earnings (losses)	(301,801		)	59,685			18,657
Interest expense	(251,552		)	(256,633		)	(272,712		)
Investment income (loss)	63,137			19,940			7,263
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	136,510			(4,514		)	(47,238		)
Impairments and other charges	(290,260		)	(198,072		)	(61,292		)
Income (loss) from continuing operations before income taxes	274,683			487,769			293,570
Income tax expense (benefit)	32,628			142,605			36,950
Subsidiary preferred stock dividend	3,000			3,000			750
Income (loss) from continuing operations, net of tax	239,055			342,164			255,870
Income (loss) from discontinued operations, net of tax	(74,400		)	(97,440		)	(161,090		)
Net income (loss)	164,655			244,724			94,780
Less: Net (income) loss attributable to noncontrolling interest	(621		)	(1,045		)	(85		)
Net income (loss) attributable to Nabors	$	164,034		$	243,679		$	94,695

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Depreciation and amortization: (1)
Drilling & Rig Services:
U.S. Lower 48 Land Drilling	$	334,555		$	288,373		$	241,258
U.S. Offshore	44,328			37,242			37,059
Alaska	27,857			34,989			37,195
Canada	76,663			75,919			74,735
International	330,388			273,315			247,134
Other Rig Services (2)	45,209			34,162			28,452
Subtotal Drilling & Rig Services	859,000			744,000			665,833
Completion & Production Services:
U.S. Production Services	86,730			78,314			65,561
Completion Services	112,401			102,009			32,204
Subtotal Completion & Production Services	199,131			180,323			97,765
Other reconciling items (5)	(2,614		)	(229		)	(2,636		)
Total depreciation and amortization	$	1,055,517		$	924,094		$	760,962

	Year Ended December 31,
	2012		2011		2010
			(In thousands)
Capital expenditures and acquisitions of businesses: (9)
Drilling & Rig Services:
U.S. Lower 48 Land Drilling	$	649,078	$	650,342	$	294,239
U.S. Offshore	105,245		63,817		23,625
Alaska	4,232		5,582		891
Canada	102,599		95,001		53,834
International	265,249		653,759		365,597
Other Rig Services (2)	39,923		136,515		28,799
Subtotal Drilling & Rig Services	1,166,326		1,605,016		766,985
Completion & Production Services (8)	214,430		451,257		1,009,350
Other reconciling items (7) (10)	52,830		191,462		101,728
Total capital expenditures and acquisitions of businesses	$	1,433,586	$	2,247,735	$	1,878,063

	As of December 31,
	2012		2011		2010
			(In thousands)
Total assets:
Drilling & Rig Services:
U.S. Lower 48 Land Drilling	$	3,358,339	$	3,216,803	$	2,762,362
U.S. Offshore	523,162		402,506		379,292
Alaska	275,969		288,253		313,123
Canada	881,194		962,239		1,065,268
International	3,626,307		3,702,611		3,279,763
Other Rig Services	644,350		720,775		539,373
Subtotal Drilling & Rig Services (10)	9,309,321		9,293,187		8,339,181
Completion & Production Services (8) (11)	2,120,307		2,315,347		1,793,754
Other reconciling items (7)(12)	1,226,394		1,303,606		1,513,634
Total assets	$	12,656,022	$	12,912,140	$	11,646,569

(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 $(3.1) million and $14.6 million for the years ended December 31, 2011 and 2010, respectively.

(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $.5 million for the year ended December 31, 2012.

(5) Represents the elimination of inter-segment transactions and earnings (losses), net from the U.S. unconsolidated oil and gas joint venture, accounted for using the equity method until sold in December 2012, of $(301.8) million, $59.7 million and $18.7 million for the years ended December 31, 2012, 2011 and 2010, respectively.

(6) Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization and earnings (losses) from the U.S. oil and gas joint venture from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the 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) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures.

(8) Reflects assets allocated to the line of business to conduct its operations. Further allocation to individual operating segments of U.S. Production Services and Completion Services is not available.

(9) Includes the portion of the purchase price of acquisitions allocated to fixed assets and goodwill based on their fair market value.

(10) Includes $59.9 million, $76.9 million and $119.3 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2012, 2011 and 2010, respectively, and $1.9 million of investments in unconsolidated affiliates accounted for using the cost method as of December 31, 2010.

(11) Includes $1.8 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2012.

(12) Includes assets of $377.6 million, $385.4 million and $352.0 million from oil and gas businesses classified as assets held for sale as of December 31, 2012, 2011 and 2010, respectively.

Schedule of financial information with respect to Nabors' operations by geographic area

	Year Ended December 31,
	2012		2011		2010
			(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates from continuing operations:
U.S.	$	4,759,534	$	4,329,079	$	2,612,954
Outside the U.S.	1,928,719		1,787,919		1,554,796
	$	6,688,253	$	6,116,998	$	4,167,750
Property, plant and equipment, net:
U.S.	$	5,179,578	$	4,974,239	$	4,447,388
Outside the U.S.	3,532,510		3,655,707		3,368,031
	$	8,712,088	$	8,629,946	$	7,815,419
Goodwill:
U.S.	$	456,463	$	466,794	$	459,560
Outside the U.S.	15,863		34,464		34,812
	$	472,326	$	501,258	$	494,372