Segment Information

9 Months Ended

Sep. 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						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates: (1)
Drilling & Rig Services:
U.S.	$	571,736		$	491,857		$	1,615,106		$	1,443,759
Canada	80,491			81,397			246,973			273,053
International	424,698			383,712			1,191,018			1,056,649
Rig Services (2)	191,437			131,151			496,903			383,502
Subtotal Drilling & Rig Services (3)	1,268,362			1,088,117			3,550,000			3,156,963
Completion & Production Services:
Completion Services	352,027			266,520			856,565			782,674
Production Services	259,863			246,806			793,641			742,979
Subtotal Completion & Production Services (4)	611,890			513,326			1,650,206			1,525,653
Other reconciling items (5)	(69,341		)	(52,478		)	(185,717		)	(135,952		)
Total	$	1,810,911		$	1,548,965		$	5,014,489		$	4,546,664

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)
Adjusted income (loss) derived from operating activities (1) (6)
Drilling & Rig Services:
U.S.	$	117,212		$	92,710		$	279,683		$	240,118
Canada	11,517			12,244			37,902			46,657
International	68,452			54,271			167,154			108,221
Rig Services (2)	21,136			2,357			38,923			(1,739		)
Subtotal Drilling & Rig Services (3)	218,317			161,582			523,662			393,257
Completion & Production Services:
Completion Services	14,211			13,024			(20,005		)	37,650
Production Services	21,182			25,909			81,662			75,394
Subtotal Completion & Production Services (4)	35,393			38,933			61,657			113,044
Other reconciling items (5)	(50,333		)	(34,622		)	(139,441		)	(107,666		)
Total adjusted income (loss) derived from operating activities	$	203,377		$	165,893		$	445,878		$	398,635
Interest expense	(43,138		)	(56,059		)	(134,251		)	(176,343		)
Investment income (loss)	2,189			1,229			10,235			95,471
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	1,513			(3,266		)	(16,467		)	(27,245		)
Impairments and other charges	—			(242,241		)	—			(287,241		)
Income (loss) from continuing operations before income taxes	163,941			(134,444		)	305,395			3,277
Income tax expense (benefit)	61,511			(44,684		)	86,275			(28,798		)
Subsidiary preferred stock dividend	—			750			1,984			2,250
Income (loss) from continuing operations, net of tax	102,430			(90,510		)	217,136			29,825
Income (loss) from discontinued operations, net of tax	4,005			(14,430		)	4,488			(34,292		)
Net income (loss)	106,435			(104,940		)	221,624			(4,467		)
Less: Net (income) loss attributable to noncontrolling interest	(387		)	(441		)	(1,213		)	(6,154		)
Net income (loss) attributable to Nabors	$	106,048		$	(105,381	)	$	220,411		$	(10,621	)

	September 30,		December 31,
	2014		2013
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	4,438,876	$	4,248,630
Canada	599,979		608,018
International	3,988,285		3,584,339
Rig Services	522,673		474,275
Subtotal Drilling & Rig Services (7)	9,549,813		8,915,262
Completion & Production Services (8) (9)	2,326,016		2,394,865
Other reconciling items (5)	743,511		849,684
Total assets:	$	12,619,340	$	12,159,811

(1) All periods present the operating activities of our wholly owned oil and gas businesses, 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 separate reportable operating segment.

(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $(2.9) million for each of the three months ended September 30, 2014 and 2013, and $(6.1) million and $1.0 million for the nine months ended September 30, 2014 and 2013, respectively.

(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0 million and $0.3 million for the three months ended September 30, 2014 and 2013, respectively, and $0.2 million and $0.6 million for the nine months ended September 30, 2014 and 2013, respectively.

(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. Adjusted income is a non-GAAP measure and should not be used in isolation 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 $50.8 million and $56.9 million of investments in unconsolidated affiliates accounted for using the equity method as of September 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 $9.7 million and $7.4 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2014 and December 31, 2013, respectively.