Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information

Segment Information

Note 13 Segment Information

The following table sets forth financial information with respect to our operating segments:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates: (1)
Drilling & Rig Services:
U.S.	$	532,894		$	467,129		$	1,043,370		$	951,902
Canada	54,861			64,789			166,482			191,656
International	391,251			351,421			766,320			672,937
Rig Services (2)	161,740			118,120			305,466			252,351
Subtotal Drilling & Rig Services (3)	1,140,746			1,001,459			2,281,638			2,068,846
Completion & Production Services:
Completion Services	276,639			254,016			504,538			516,154
Production Services	258,378			244,602			533,778			496,173
Subtotal Completion & Production Services (4)	535,017			498,618			1,038,316			1,012,327
Other reconciling items (5)	(59,358		)	(40,751		)	(116,376		)	(83,474		)
Total	$	1,616,405		$	1,459,326		$	3,203,578		$	2,997,699

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Adjusted income (loss) derived from operating activities (1) (6)
Drilling & Rig Services:
U.S.	$	89,977		$	69,813		$	162,471		$	147,408
Canada	225			3,895			26,385			34,413
International	50,583			32,481			98,702			53,950
Rig Services (2)	9,059			(5,383		)	17,787			(4,096		)
Subtotal Drilling & Rig Services (3)	149,844			100,806			305,345			231,675
Completion & Production Services:
Completion Services	(581		)	6,870			(34,216		)	24,626
Production Services	29,889			23,471			60,480			49,485
Subtotal Completion & Production Services (4)	29,308			30,341			26,264			74,111
Other reconciling items (5)	(45,692		)	(41,543		)	(89,108		)	(73,044		)
Total adjusted income (loss)
derived from operating activities	$	133,460		$	89,604		$	242,501		$	232,742
Interest expense	(46,303		)	(60,273		)	(91,113		)	(120,284		)
Investment income (loss)	7,066			14,821			8,046			94,242
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	(16,504		)	(9,242		)	(17,980		)	(68,979		)
Income (loss) from continuing operations before income taxes	77,719			34,910			141,454			137,721
Income tax expense (benefit)	10,756			6,032			24,764			15,886
Subsidiary preferred stock dividend	1,234			750			1,984			1,500
Income (loss) from continuing operations, net of tax	65,729			28,128			114,706			120,335
Income (loss) from discontinued operations, net of tax	(1,032		)	(26,873		)	483			(19,862		)
Net income (loss)	64,697			1,255			115,189			100,473
Less: Net (income) loss attributable to noncontrolling interest	(253		)	(5,616		)	(826		)	(5,713		)
Net income (loss) attributable to Nabors	$	64,444		$	(4,361	)	$	114,363		$	94,760

	June 30,		December 31,
	2014		2013
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	4,352,311	$	4,248,630
Canada	647,313		608,018
International	3,817,316		3,584,339
Rig Services	503,222		474,275
Subtotal Drilling & Rig Services (7)	9,320,162		8,915,262
Completion & Production Services (8) (9)	2,319,326		2,394,865
Other reconciling items (5)	796,511		849,684
Total assets:	$	12,435,999	$	12,159,811

(1) All periods present the operating activities of our wholly owned oil and gas businesses, our previously held equity interests in oil and gas joint ventures in Canada and Colombia, aircraft logistics operations and construction services as discontinued operations.

(2) Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software 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 $(0.8) million and $1.2 million for the three months ended June 30, 2014 and 2013, and $(3.3) million and $4.0 million for the six months ended June 30, 2014 and 2013, respectively.

(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.2 million for each of the three months ended June 30, 2014 and 2013, and $0.3 million for each of the six months ended June 30, 2014 and 2013.

(5) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets.

(6) Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization 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) Includes $51.3 million and $56.9 million of investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2014 and December 31, 2013, respectively.

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

(9) Includes $9.2 million and $7.4 million of investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2014 and December 31, 2013, respectively.