Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information

Segment Information

Note 14 Segment Information

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

	Three Months Ended
	March 31,
	2015			2014
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates: (1)
Drilling & Rig Services:
U.S.	$	453,821		$	510,476
Canada	57,840			111,621
International	445,400			375,069
Rig Services (2)	144,084			143,726
Subtotal Drilling & Rig Services (3)	1,101,145			1,140,892
Completion & Production Services:
Completion Services	208,123			227,899
Production Services	158,512			275,400
Subtotal Completion & Production Services (4)	366,635			503,299
Other reconciling items (5)	(46,571		)	(57,018		)
Total	$	1,421,209		$	1,587,173

	Three Months Ended
	March 31,
	2015			2014
	(In thousands)
Adjusted income (loss) derived from operating activities: (1) (6)
Drilling & Rig Services:
U.S.	$	77,038		$	72,494
Canada	6,358			26,160
International	105,041			48,119
Rig Services (2)	12,873			8,728
Subtotal Drilling & Rig Services (3)	201,310			155,501
Completion & Production Services:
Completion Services	(55,243		)	(33,635		)
Production Services	(3,296		)	30,591
Subtotal Completion & Production Services (4)	(58,539		)	(3,044		)
Other reconciling items (7)	(49,324		)	(43,416		)
Total adjusted income (loss) derived from operating activities	$	93,447		$	109,041
Interest expense	(46,601		)	(44,810		)
Investment income (loss)	969			980
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	55,842			(1,476		)
Income (loss) from continuing operations before income taxes	103,657			63,735
Income tax expense (benefit)	(20,705		)	14,008
Subsidiary preferred stock dividend	—			750
Income (loss) from continuing operations, net of tax	124,362			48,977
Income (loss) from discontinued operations, net of tax	(817		)	1,515
Net income (loss)	123,545			50,492
Less: Net (income) loss attributable to noncontrolling interest	89			(573		)
Net income (loss) attributable to Nabors	$	123,634		$	49,919

	March 31,		December 31,
	2015		2014
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	4,146,988	$	4,184,854
Canada	593,436		615,269
International	3,901,424		3,815,051
Rig Services	512,545		549,622
Subtotal Drilling & Rig Services (8)	9,154,393		9,164,796
Completion & Production Services (9) (10)	—		1,933,387
Other reconciling items (7) (11)	1,450,205		781,759
Total assets:	$	10,604,598	$	11,879,942

(1) All periods present the operating activities of most 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 other services comprised of our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services.

(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $6.2 million and ($2.5) million for the three months ended March 31, 2015 and 2014, respectively.

(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.3 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively.

(5) Represents the elimination of inter-segment transactions.

(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) Represents the elimination of inter-segment transactions, unallocated corporate expenses and earnings (losses), net from unconsolidated affiliates related to our investment in CJES.

(8) Includes $54.4 million and $48.1 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2015 and December 31, 2014, respectively.

(9) 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.

(10) Includes $10.2 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2014.  These investments were sold as part of the merger with C&J Energy in March 2015.

(11) Includes $676.1 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2015, inclusive of our investment in CJES.