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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