Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Information

Condensed Consolidating Balance Sheets

	March 31, 2013
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-		Consolidating
	Guarantor)		(Issuer)			Guarantors)		Adjustments			Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	946	$	22,090		$	541,852	$	—		$	564,888
Short-term investments	—		—			125,592		—			125,592
Assets held for sale	—		—			385,133		—			385,133
Accounts receivable, net	—		—			1,434,530		—			1,434,530
Inventory	—		—			245,495		—			245,495
Deferred income taxes	—		—			92,310		—			92,310
Other current assets	50		17,074			253,626		—			270,750
Total current assets	996		39,164			3,078,538		—			3,118,698
Long-term investments	—		—			3,910		—			3,910
Property, plant and equipment, net	—		36,429			8,605,518		—			8,641,947
Goodwill	—		—			487,760		—			487,760
Intercompany receivables	184,068		3,874			713,094		(901,036		)	—
Investment in unconsolidated affiliates	5,788,937		5,272,011			600,500		(11,596,850		)	64,598
Other long-term assets	—		30,934			237,610		—			268,544
Total assets	$	5,974,001	$	5,382,412		$	13,726,930	$	(12,497,886	)	$	12,585,457
	LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	—		$	435	$	—		$	435
Trade accounts payable	54		23			492,817		—			492,894
Accrued liabilities	134		33,660			499,424		—			533,218
Income taxes payable	—		—			64,599		—			64,599
Total current liabilities	188		33,683			1,057,275		—			1,091,146
Long-term debt	—		4,379,704			54		—			4,379,758
Other long-term liabilities	—		31,005			459,554		—			490,559
Deferred income taxes	—		(48,573		)	618,694		—			570,121
Intercompany payable	—		901,036			—		(901,036		)	—
Total liabilities	188		5,296,855			2,135,577		(901,036		)	6,531,584
Subsidiary preferred stock	—		—			69,188		—			69,188
Shareholders’ equity	5,973,813		85,557			11,511,294		(11,596,850		)	5,973,814
Noncontrolling interest	—		—			10,871		—			10,871
Total equity	5,973,813		85,557			11,522,165		(11,596,850		)	5,984,685
Total liabilities and equity	$	5,974,001	$	5,382,412		$	13,726,930	$	(12,497,886	)	$	12,585,457

	December 31, 2012
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-		Consolidating
	Guarantor)		(Issuer)			Guarantors)		Adjustments			Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	1,639	$	106,778		$	416,505	$	—		$	524,922
Short-term investments	—		—			253,282		—			253,282
Assets held for sale	—		—			383,857		—			383,857
Accounts receivable, net	—		—			1,382,623		—			1,382,623
Inventory	—		—			251,133		—			251,133
Deferred income taxes	—		—			110,480		—			110,480
Other current assets	50		—			226,510		—			226,560
Total current assets	1,689		106,778			3,024,390		—			3,132,857
Long-term investments	—		—			4,269		—			4,269
Property, plant and equipment, net	—		37,300			8,674,788		—			8,712,088
Goodwill	—		—			472,326		—			472,326
Intercompany receivables	174,948		1,690,636			670,404		(2,535,988		)	—
Investment in unconsolidated affiliates	5,769,518		5,129,458			395,246		(11,232,532		)	61,690
Other long-term assets	—		31,904			240,888		—			272,792
Total assets	$	5,946,155	$	6,996,076		$	13,482,311	$	(13,768,520	)	$	12,656,022
	LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	—		$	364	$	—		$	364
Trade accounts payable	116		23			498,871		—			499,010
Accrued liabilities	1,110		91,520			506,750		—			599,380
Income taxes payable	—		—			33,628		—			33,628
Total current liabilities	1,226		91,543			1,039,613		—			1,132,382
Long-term debt	—		4,379,263			73		—			4,379,336
Other long-term liabilities	—		30,983			487,681		—			518,664
Deferred income taxes	—		(24,906		)	624,241		—			599,335
Intercompany payable	—		2,535,988			—		(2,535,988		)	—
Total liabilities	1,226		7,012,871			2,151,608		(2,535,988		)	6,629,717
Subsidiary preferred stock	—		—			69,188		—			69,188
Shareholders’ equity	5,944,929		(16,795		)	11,249,327		(11,232,532		)	5,944,929
Noncontrolling interest	—		—			12,188		—			12,188
Total equity	5,944,929		(16,795		)	11,261,515		(11,232,532		)	5,957,117
Total liabilities and equity	$	5,946,155	$	6,996,076		$	13,482,311	$	(13,768,520	)	$	12,656,022

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended March 31, 2013
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	1,578,645		$	—		$	1,578,645
Earnings from unconsolidated affiliates	—		—			2,895			—			2,895
Earnings (losses) from consolidated affiliates	107,873		42,320			2,023			(152,216		)	—
Investment income (loss)	—		16			79,405			—			79,421
Intercompany interest income	—		29			—			(29		)	—
Total revenues and other income	107,873		42,365			1,662,968			(152,245		)	1,660,961
Costs and other deductions:
Direct costs	—		—			1,026,042			—			1,026,042
General and administrative expenses	1,834		37			130,818			(144		)	132,545
Depreciation and amortization	—		902			272,463			—			273,365
Interest expense	—		63,049			(3,041		)	—			60,008
Intercompany interest expense	—		—			29			(29		)	—
Losses (gains) on sales of long-lived assets and other expense (income), net	6,918		21			52,724			144			59,807
Total costs and other deductions	8,752		64,009			1,479,035			(29		)	1,551,767
Income from continuing operations before income taxes	99,121		(21,644		)	183,933			(152,216		)	109,194
Income tax expense (benefit)	—		(23,667		)	34,939			—			11,272
Subsidiary preferred stock dividend	—		—			750			—			750
Income (loss) from continuting operations, net of tax	99,121		2,023			148,244			(152,216		)	97,172
Income (loss) from discontinued operations, net of tax	—		—			2,046			—			2,046
Net income (loss)	99,121		2,023			150,290			(152,216		)	99,218
Less: Net (income) loss attributable to noncontrolling interest	—		—			(97		)	—			(97		)
Net income (loss) attributable to Nabors	$	99,121	$	2,023		$	150,193		$	(152,216	)	$	99,121

	Three Months Ended March 31, 2012
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	1,890,426		$	—		$	1,890,426
Earnings from unconsolidated affiliates	—		—			(68,669		)	—			(68,669		)
Earnings (losses) from consolidated affiliates	135,879		54,528			28,361			(218,768		)	—
Investment income (loss)	—		—			20,252			—			20,252
Intercompany interest income	—		16,932			—			(16,932		)	—
Total revenues and other income	135,879		71,460			1,870,370			(235,700		)	1,842,009
Costs and other deductions:
Direct costs	—		—			1,184,816			—			1,184,816
General and administrative expenses	1,527		140			134,942			(263		)	136,346
Depreciation and amortization	—		902			246,719			—			247,621
Interest expense	—		68,169			(5,515		)	—			62,654
Intercompany interest expense	—		—			16,932			(16,932		)	—
Losses (gains) on sales of long-lived assets and other expense (income), net	262		(433		)	(1,932		)	263			(1,840		)
Total costs and other deductions	1,789		68,778			1,575,962			(16,932		)	1,629,597
Income from continuing operations before income taxes	134,090		2,682			294,408			(218,768		)	212,412
Income tax expense (benefit)	—		(19,183		)	88,227			—			69,044
Subsidiary preferred stock dividend	—		—			750			—			750
Income (loss) from continuting operations, net of tax	134,090		21,865			205,431			(218,768		)	142,618
Income (loss) from discontinued operations, net of tax	—		—			(8,795		)	—			(8,795		)
Net income (loss)	134,090		21,865			196,636			(218,768		)	133,823
Less: Net (income) loss attributable to noncontrolling interest	—		—			267			—			267
Net income (loss) attributable to Nabors	$	134,090	$	21,865		$	196,903		$	(218,768	)	$	134,090

Condensed consolidating statements of other comprehensive income

	Three Months Ended March 31, 2013
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net income (loss) attributable to Nabors	$	99,121		$	2,023		$	150,193		$	(152,216	)	$	99,121
Other comprehensive income (loss) before taxes:
Translation adjustment attributable to Nabors	(23,265		)	(52		)	(23,317		)	23,369			(23,265		)
Unrealized gains/(losses) on marketable securities:
Unrealized gains/(losses) on marketable securities	10,139			185			10,324			(10,509		)	10,139
Less: reclassification adjustment for (gains)/losses on marketable securities	(75,974		)	(1,186		)	(77,160		)	78,346			(75,974		)
Unrealized gains/(losses) on marketable securities	(65,835		)	(1,001		)	(66,836		)	67,837			(65,835		)
Pension liability amortization and adjustment	281			281			562			(843		)	281
Unrealized gains/(losses) and amortization of (gains)/losses on cash flow hedges	153			153			153			(306		)	153
Other comprehensive income (loss) before taxes	(88,666		)	(619		)	(89,438		)	90,057			(88,666		)
Income tax expense (benefit) related to items of other comprehensive income (loss)	(214		)	(214		)	(487		)	701			(214		)
Other comprehensive income (loss), net of tax	(88,452		)	(405		)	(88,951		)	89,356			(88,452		)
Comprehensive income (loss) attributable to Nabors	10,669			1,618			61,242			(62,860		)	10,669
Net income (loss) attributable to noncontrolling interest	97			—			97			(97		)	97
Translation adjustment to noncontrolling interest	(1,414		)	—			(1,414		)	1,414			(1,414		)
Comprehensive income (loss) attributable to noncontrolling interest	(1,317		)	—			(1,317		)	1,317			(1,317		)
Comprehensive income (loss)	$	9,352		$	1,618		$	59,925		$	(61,543	)	$	9,352

	Three Months Ended March 31, 2012
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net income (loss) attributable to Nabors	$	134,090		$	21,865		$	196,903		$	(218,768	)	$	134,090
Other comprehensive income (loss) before taxes:
Translation adjustment attributable to Nabors	17,266			(53		)	17,213			(17,160		)	17,266
Unrealized gains/(losses) on marketable securities:
Unrealized gains/(losses) on marketable securities	12,223			64			12,287			(12,351		)	12,223
Less: reclassification adjustment for (gains)/losses on marketable securities	(12,465		)	(10,288		)	(22,753		)	33,041			(12,465		)
Unrealized gains/(losses) on marketable securities	(242		)	(10,224		)	(10,466		)	20,690			(242		)
Pension liability amortization and adjustment	260			260			520			(780		)	260
Unrealized gains/(losses) and amortization of (gains)/losses on cash flow hedges	191			191			191			(382		)	191
Other comprehensive income (loss) before taxes	17,475			(9,826		)	7,458			2,368			17,475
Income tax expense (benefit) related to items of other comprehensive income (loss)	(3,724		)	(3,724		)	(7,508		)	11,232			(3,724		)
Other comprehensive income (loss), net of tax	21,199			(6,102		)	14,966			(8,864		)	21,199
Comprehensive income (loss) attributable to Nabors	155,289			15,763			211,869			(227,632		)	155,289
Net income (loss) attributable to noncontrolling interest	(267		)	—			(267		)	267			(267		)
Translation adjustment to noncontrolling interest	243			—			243			(243		)	243
Comprehensive income (loss) attributable to noncontrolling interest	(24		)	—			(24		)	24			(24		)
Comprehensive income (loss)	$	155,265		$	15,763		$	211,845		$	(227,608	)	$	155,265

Condensed Consolidating Statements of Cash Flows

	Three Months Ended March 31, 2013
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net cash provided by (used for) operating activities	$	1,144		$	(138,791	)	$	308,348		$	12,800		$	183,501
Cash flows from investing activities:
Purchases of investments	—			—			—			—			—
Sales and maturities of investments	—			—			142,336			—			142,336
Proceeds from sale of unconsolidated affiliates	—			—			—			—			—
Investment in unconsolidated affiliates	—			—			(12		)	—			(12		)
Cash paid for acquisition of businesses, net	—			—			(37,516		)	—			(37,516		)
Capital expenditures	—			—			(235,539		)	—			(235,539		)
Proceeds from sales of assets and insurance claims	—			—			6,605			—			6,605
Cash paid for investments in consolidated affiliates	—			(100,000		)	(200,000		)	300,000			—
Changes in intercompany balances	—			54,192			(54,192		)	—			—
Net cash provided by (used for) investing activities	—			(45,808		)	(378,318		)	300,000			(124,126		)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	—			—			(1,975		)	—			(1,975		)
Cash dividends paid	(12,891		)	—			—			—			(12,891		)
Proceeds from (payments for) issuance of common shares	1,027			—			—			—			1,027
Proceeds from (payments for) issuance of parent common shares to affiliates	12,800			—			—			(12,800		)	—
Proceeds from parent contributions	—			100,000			200,000			(300,000		)	—
Purchase of restricted stock	(2,773		)	—			—			—			(2,773		)
Tax benefit related to share-based awards	—			—			(4		)	—			(4		)
Other	—			(89		)	55			—			(34		)
Net cash (used for) provided by financing activities	(1,837		)	99,911			198,076			(312,800		)	(16,650		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(2,759		)	—			(2,759		)
Net increase (decrease) in cash and cash equivalents	(693		)	(84,688		)	125,347			—			39,966
Cash and cash equivalents, beginning of period	1,639			106,778			416,505			—			524,922
Cash and cash equivalents, end of period	$	946		$	22,090		$	541,852		$	—		$	564,888

	Three Months Ended March 31, 2012
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net cash provided by (used for) operating activities	$	10,693		$	(90,170	)	$	336,160		$	(12,500	)	$	244,183
Cash flows from investing activities:
Purchases of investments	—			—			(791		)	—			(791		)
Sales and maturities of investments	—			—			23,478			—			23,478
Capital expenditures	—			—			(473,687		)	—			(473,687		)
Proceeds from sales of assets and insurance claims	—			—			21,321			—			21,321
Cash paid for investments in consolidated affiliates	—			—			—			—			—
Changes in intercompany balances	—			(59,830		)	59,830			—			—
Net cash provided by (used for) investing activities	—			(59,830		)	(369,849		)	—			(429,679		)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	—			—			(2,269		)	—			(2,269		)
Proceeds from revolving credit facility	—			150,000			—			—			150,000
Proceeds from (payments for) issuance of common shares	(5,319		)	—			(1		)	—			(5,320		)
Reduction in long-term debt	—			—			(1,072		)	—			(1,072		)
Purchase of restricted stock	(1,769		)	—			—			—			(1,769		)
Tax benefit related to share-based awards	—			—			(31		)	—			(31		)
Cash dividends paid	—			—			(12,500		)	12,500			—
Net cash (used for) provided by financing activities	(7,088		)	150,000			(15,873		)	12,500			139,539
Effect of exchange rate changes on cash and cash equivalents	—			—			1,404			—			1,404
Net increase (decrease) in cash and cash equivalents	3,605			—			(48,158		)	—			(44,553		)
Cash and cash equivalents, beginning of period	203			21			398,351			—			398,575
Cash and cash equivalents, end of period	$	3,808		$	21		$	350,193		$	—		$	354,022