Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Consolidating Financial Information

Condensed Consolidating Balance Sheets

	March 31, 2014
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-		Consolidating
	Guarantor)		(Issuer)			Guarantors)		Adjustments			Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	892	$	4		$	325,985	$	—		$	326,881
Short-term investments	—		—			97,886		—			97,886
Assets held for sale	—		—			231,880		—			231,880
Accounts receivable, net	—		—			1,454,368		—			1,454,368
Inventory	—		—			194,371		—			194,371
Deferred income taxes	—		—			133,667		—			133,667
Other current assets	50		30,214			221,951		—			252,215
Total current assets	942		30,218			2,660,108		—			2,691,268
Long-term investments	—		—			2,915		—			2,915
Property, plant and equipment, net	—		32,944			8,657,815		—			8,690,759
Goodwill	—		—			512,391		—			512,391
Intercompany receivables	153,352		—			1,787,393		(1,940,745		)	—
Investment in consolidated affiliates	5,806,653		6,088,501			1,749,780		(13,644,934		)	—
Investment in unconsolidated affiliates	—		—			63,069		—			63,069
Other long-term assets	—		32,630			194,041		—			226,671
Total assets	$	5,960,947	$	6,184,293		$	15,627,512	$	(15,585,679	)	$	12,187,073
	LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt	$	—	$	—		$	5,296	$	—		$	5,296
Trade accounts payable	150		2			630,863		—			631,015
Accrued liabilities	328		18,094			566,326		—			584,748
Income taxes payable	—		—			17,083		—			17,083
Total current liabilities	478		18,096			1,219,568		—			1,238,142
Long-term debt	—		3,804,956			7,520		—			3,812,476
Other long-term liabilities	—		30,142			539,851		—			569,993
Deferred income taxes	—		(237,076		)	763,081		—			526,005
Intercompany payable	—		1,940,745			—		(1,940,745		)	—
Total liabilities	478		5,556,863			2,530,020		(1,940,745		)	6,146,616
Subsidiary preferred stock	—		—			69,188		—			69,188
Shareholders’ equity	5,960,469		627,430			13,017,504		(13,644,934		)	5,960,469
Noncontrolling interest	—		—			10,800		—			10,800
Total equity	5,960,469		627,430			13,028,304		(13,644,934		)	5,971,269
Total liabilities and equity	$	5,960,947	$	6,184,293		$	15,627,512	$	(15,585,679	)	$	12,187,073

	December 31, 2013
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-		Consolidating
	Guarantor)		(Issuer)			Guarantors)		Adjustments			Total
	(In thousands)
	ASSETS
Current assets:
Cash	$	730	$	7,029		$	382,156	$	—		$	389,915
Short-term investments	—		—			117,218		—			117,218
Assets held for sale	—		—			243,264		—			243,264
Accounts receivable, net	27		—			1,399,516		—			1,399,543
Inventory	—		—			209,793		—			209,793
Deferred income taxes	—		—			121,316		—			121,316
Other current assets	50		26,378			246,353		—			272,781
Total current assets	807		33,407			2,719,616		—			2,753,830
Long-term investments	—		—			3,236		—			3,236
Property, plant and equipment, net	—		33,815			8,563,998		—			8,597,813
Goodwill	—		—			512,964		—			512,964
Intercompany receivables	160,136		3,891			1,583,539		(1,747,566		)	—
Investment in consolidated affiliates	5,808,607		6,097,337			1,789,851		(13,695,795		)	—
Investment in unconsolidated affiliates	—		—			64,260		—			64,260
Other long-term assets	—		34,487			193,221		—			227,708
Total assets	$	5,969,550	$	6,202,937		$	15,430,685	$	(15,443,361	)	$	12,159,811
	LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—		$	10,185	$	—		$	10,185
Trade accounts payable	86		25			545,401		—			545,512
Accrued liabilities	378		65,947			630,768		—			697,093
Income taxes payable	—		—			58,634		—			58,634
Total current liabilities	464		65,972			1,244,988		—			1,311,424
Long-term debt	—		3,904,059			58		—			3,904,117
Other long-term liabilities	—		31,071			346,673		—			377,744
Deferred income taxes	—		(213,233		)	729,394		—			516,161
Intercompany payable	—		1,747,566			—		(1,747,566		)	—
Total liabilities	464		5,535,435			2,321,113		(1,747,566		)	6,109,446
Subsidiary preferred stock	—		—			69,188		—			69,188
Shareholders’ equity	5,969,086		667,502			13,028,293		(13,695,795		)	5,969,086
Noncontrolling interest	—		—			12,091		—			12,091
Total equity	5,969,086		667,502			13,040,384		(13,695,795		)	5,981,177
Total liabilities and equity	$	5,969,550	$	6,202,937		$	15,430,685	$	(15,443,361	)	$	12,159,811

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended March 31, 2014
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	1,589,618		$	—		$	1,589,618
Earnings from unconsolidated affiliates	—		—			(2,445		)	—			(2,445		)
Earnings (losses) from consolidated affiliates	52,583		(8,760		)	(40,089		)	(3,734		)	—
Investment income (loss)	—		—			2,116			(1,136		)	980
Total revenues and other income	52,583		(8,760		)	1,549,200			(4,870		)	1,588,153
Costs and other deductions:
Direct costs	—		—			1,061,739			—			1,061,739
General and administrative expenses	2,453		(319		)	132,281			(149		)	134,266
Depreciation and amortization	—		902			281,225			—			282,127
Interest expense	—		49,369			(4,559		)	—			44,810
Intercompany interest expense	62		—			(62		)	—			—
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net	149		(223		)	1,401			149			1,476
Total costs and other deductions	2,664		49,729			1,472,025			—			1,524,418
Income from continuing operations before income tax	49,919		(58,489		)	77,175			(4,870		)	63,735
Income tax expense (benefit)	—		(18,400		)	32,408			—			14,008
Subsidiary preferred stock dividend	—		—			750			—			750
Income (loss) from continuting operations, net of tax	49,919		(40,089		)	44,017			(4,870		)	48,977
Income (loss) from discontinued operations, net of tax	—		—			1,515			—			1,515
Net income (loss)	49,919		(40,089		)	45,532			(4,870		)	50,492
Less: Net (income) loss attributable to noncontrolling interest	—		—			(573		)	—			(573		)
Net income (loss) attributable to Nabors	$	49,919	$	(40,089	)	$	44,959		$	(4,870	)	$	49,919

	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	$	—	$	—		$	1,535,478		$	—		$	1,535,478
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			1,619,801			(152,245		)	1,617,794
Costs and other deductions:
Direct costs	—		—			994,992			—			994,992
General and administrative expenses	1,834		37			129,151			(144		)	130,878
Depreciation and amortization	—		902			268,463			—			269,365
Interest expense	—		63,049			(3,038		)	—			60,011
Intercompany interest expense	—		—			29			(29		)	—
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net	6,918		21			52,654			144			59,737
Total costs and other deductions	8,752		64,009			1,442,251			(29		)	1,514,983
Income from continuing operations before income tax	99,121		(21,644		)	177,550			(152,216		)	102,811
Income tax expense (benefit)	—		(23,667		)	33,521			—			9,854
Subsidiary preferred stock dividend	—		—			750			—			750
Income (loss) from continuting operations, net of tax	99,121		2,023			143,279			(152,216		)	92,207
Income (loss) from discontinued operations, net of tax	—		—			7,011			—			7,011
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

Condensed Consolidating Statements of Other Comprehensive Income (Loss)

	Three Months Ended March 31, 2014
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net income (loss) attributable to Nabors	$	49,919		$	(40,089	)	$	44,959		$	(4,870	)	$	49,919
Other comprehensive income (loss) before taxes:
Translation adjustment attributable to Nabors	(36,594		)	(216		)	(36,813		)	37,029			(36,594		)
Unrealized gains/(losses) on marketable securities	(19,208		)	—			(19,208		)	19,208			(19,208		)
Pension liability amortization and adjustment	123			123			246			(369		)	123
Unrealized gains/(losses) and amortization of cash flow hedges	153			153			153			(306		)	153
Other comprehensive income (loss) before tax	(55,526		)	60			(55,622		)	55,562			(55,526		)
Income tax expense (benefit) related to items of other comprehensive income (loss)	148			148			236			(384		)	148
Other comprehensive income (loss), net of tax	(55,674		)	(88		)	(55,858		)	55,946			(55,674		)
Comprehensive income (loss) attributable to Nabors	(5,755		)	(40,177		)	(10,899		)	51,076			(5,755		)
Net income (loss) attributable to noncontrolling interest	—			—			573			—			573
Translation adjustment to noncontrolling interest	—			—			(481		)	—			(481		)
Comprehensive income (loss) attributable to noncontrolling interest	—			—			92			—			92
Comprehensive income (loss)	$	(5,755	)	$	(40,177	)	$	(10,807	)	$	51,076		$	(5,663	)

	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 cash flow hedges	153			153			153			(306		)	153
Other comprehensive income (loss) before tax	(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
Translation adjustment to noncontrolling interest	—			—			(1,414		)	—			(1,414		)
Comprehensive income (loss) attributable to noncontrolling interest	—			—			(1,317		)	—			(1,317		)
Comprehensive income (loss)	$	10,669		$	1,618		$	59,925		$	(62,860	)	$	9,352

Condensed Consolidating Statements of Cash Flows

	Three Months Ended March 31, 2014
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net cash provided by (used for) operating activities	$	(1,579	)	$	(83,877	)	$	514,731		$	15,288		$	444,563
Cash flows from investing activities:
Purchase of investments	—			—			(286		)	—			(286		)
Sales and maturities of investments	—			—			733			—			733
Cash paid for acquisition of businesses, net	—			—			(10,200		)	—			(10,200		)
Investment in unconsolidated affiliates	—			—			(1,255		)	—			(1,255		)
Capital expenditures	—			—			(396,465		)	—			(396,465		)
Proceeds from sales of assets and insurance claims	—			—			21,605			—			21,605
Changes in intercompany balances	—			176,446			(176,446		)	—			—
Net cash provided by (used for) investing activities	—			176,446			(562,314		)	—			(385,868		)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	—			—			(1,822		)	—			(1,822		)
Proceeds from (payments for) issuance of common shares	4,931			—			—			—			4,931
Dividends to shareholders	(13,029		)	—			—			1,136			(11,893		)
Proceeds from (payments for) commercial paper, net	—			(39,594		)	—			—			(39,594		)
Proceeds from revolving credit facilities	—			—			15,000			—			15,000
Reduction in revolving credit facilities	—			(60,000		)	(7,500		)	—			(67,500		)
Proceeds from (payments for) issuance of parent common shares to affiliates	16,424			—			—			(16,424		)	—
Other	(6,585		)	—			(5,000		)	—			(11,585		)
Net cash (used for) provided by financing activities	1,741			(99,594		)	678			(15,288		)	(112,463		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(9,266		)	—			(9,266		)
Net increase (decrease) in cash and cash equivalents	162			(7,025		)	(56,171		)	—			(63,034		)
Cash and cash equivalents, beginning of period	730			7,029			382,156			—			389,915
Cash and cash equivalents, end of period	$	892		$	4		$	325,985		$	—		$	326,881

	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	)	$	304,142		$	12,800		$	179,295
Cash flows from investing activities:
Sales and maturities of investments	—			—			142,336			—			142,336
Cash paid for acquisition of businesses, net	—			—			(37,516		)	—			(37,516		)
Investment in unconsolidated affilaites	—			—			(12		)	—			(12		)
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		)
Proceeds from (payments for) issuance of common shares	1,027			—			—			—			1,027
Dividends to shareholders	(12,891		)	—			—			—			(12,891		)
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		)	—
Other	(2,773		)	(89		)	4,257			—			1,395
Net cash (used for) provided by financing activities	(1,837		)	99,911			202,282			(312,800		)	(12,444		)
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