Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Financial Information

Condensed Consolidating Balance Sheets

	March 31, 2015
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	4,370	$	18		$	581,613		$	—		$	586,001
Short-term investments	—		—			35,170			—			35,170
Assets held for sale	—		—			134,709			—			134,709
Accounts receivable, net	—		—			971,601			—			971,601
Inventory	—		—			190,423			—			190,423
Deferred income taxes	—		—			91,050			—			91,050
Other current assets	50		18,394			142,934			—			161,378
Total current assets	4,420		18,412			2,147,500			—			2,170,332
Long-term investments	—		—			2,627			—			2,627
Property, plant and equipment, net	—		—			7,333,808			—			7,333,808
Goodwill	—		—			80,947			—			80,947
Intercompany receivables	136,729		150,058			1,030,444			(1,317,231		)	—
Investment in consolidated affiliates	4,848,785		4,968,528			1,370,331			(11,187,644		)	—
Investment in unconsolidated affiliates	—		—			730,487			—			730,487
Other long-term assets	—		29,578			256,819			—			286,397
Total assets	$	4,989,934	$	5,166,576		$	12,952,963		$	(12,504,875	)	$	10,604,598
LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—		8,739			$	—		$	8,739
Trade accounts payable	117		5			402,916			—			403,038
Accrued liabilities	17,004		18,202			634,606			—			669,812
Income taxes payable	—		—			75,007			—			75,007
Total current liabilities	17,121		18,207			1,121,268			—			1,156,596
Long-term debt	—		3,857,176			(40,459		)	—			3,816,717
Other long-term liabilities	—		35,487			569,039			—			604,526
Deferred income taxes	—		(313,447		)	372,444			—			58,997
Intercompany payable	14,000		1,303,231			—			(1,317,231		)	—
Total liabilities	31,121		4,900,654			2,022,292			(1,317,231		)	5,636,836
Subsidiary preferred stock	—		—			—			—			—
Shareholders’ equity	4,958,813		265,922			10,921,722			(11,187,644		)	4,958,813
Noncontrolling interest	—		—			8,949			—			8,949
Total equity	4,958,813		265,922			10,930,671			(11,187,644		)	4,967,762
Total liabilities and equity	$	4,989,934	$	5,166,576		$	12,952,963		$	(12,504,875	)	$	10,604,598

	December 31, 2014
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,170	$	7		$	499,972		$	—		$	501,149
Short-term investments	—		—			35,020			—			35,020
Assets held for sale	—		—			146,467			—			146,467
Accounts receivable, net	—		—			1,517,503			—			1,517,503
Inventory	—		—			230,067			—			230,067
Deferred income taxes	—		—			118,230			—			118,230
Other current assets	50		5,242			188,146			—			193,438
Short-term intercompany note	—		880,820			—			(880,820		)	—
Total current assets	1,220		886,069			2,735,405			(880,820		)	2,741,874
Long-term investments	—		—			2,806			—			2,806
Property, plant and equipment, net	—		30,330			8,568,795			—			8,599,125
Goodwill	—		—			173,928			—			173,928
Intercompany receivables	136,360		—			1,286,522			(1,422,882		)	—
Investment in unconsolidated affiliates	4,771,413		5,014,743			1,506,939			(11,234,844		)	58,251
Other long-term assets	—		30,298			273,660			—			303,958
Total assets	$	4,908,993	$	5,961,440		$	14,548,055		$	(13,538,546	)	$	11,879,942
LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—		$	6,190		$	—		$	6,190
Trade accounts payable	111		2			779,947			—			780,060
Accrued liabilities	263		64,390			663,351			—			728,004
Income taxes payable	—		—			53,221			—			53,221
Short-term intercompany note	—		—			880,820			(880,820		)	—
Total current liabilities	374		64,392			2,383,529			(880,820		)	1,567,475
Long-term debt	—		4,389,299			(40,440		)	—			4,348,859
Other long-term liabilities	—		35,480			566,336			—			601,816
Deferred income taxes	—		(294,655		)	737,658			—			443,003
Intercompany payable	—		1,422,882			—			(1,422,882		)	—
Total liabilities	374		5,617,398			3,647,083			(2,303,702		)	6,961,153
Subsidiary preferred stock	—		—			—			—			—
Shareholders’ equity	4,908,619		344,042			10,890,802			(11,234,844		)	4,908,619
Noncontrolling interest	—		—			10,170			—			10,170
Total equity	4,908,619		344,042			10,900,972			(11,234,844		)	4,918,789
Total liabilities and equity	$	4,908,993	$	5,961,440		$	14,548,055		$	(13,538,546	)	$	11,879,942

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended March 31, 2015
						Other
	Nabors		Nabors			Subsidiaries
	(Parent/		Delaware			(Non-			Consolidating
	Guarantor)		(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—		$	1,414,707		$	—		$	1,414,707
Earnings from unconsolidated affiliates	—		—			6,502			—			6,502
Earnings (losses) from consolidated affiliates	138,037		(46,440		)	(78,438		)	(13,159		)	—
Investment income (loss)	—		5			3,291			(2,327		)	969
Intercompany Interest income	—		2,439			—			(2,439		)	—
Total revenues and other income	138,037		(43,996		)	1,346,062			(17,925		)	1,422,178
Costs and other deductions:
Direct costs	—		—			919,610			—			919,610
General and administrative expenses	2,719		358			124,200			(144		)	127,133
Depreciation and amortization	—		612			280,407			—			281,019
Interest expense	—		52,264			(5,663		)	—			46,601
Intercompany interest expense	—		—			2,439			(2,439		)	—
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net	11,684		—			(67,670		)	144			(55,842		)
Impairment and other charges	—		—			—			—			—
Other	—		—			—			—			—
Total costs and other deductions	14,403		53,234			1,253,323			(2,439		)	1,318,521
Income from continuing operations before income tax	123,634		(97,230		)	92,739			(15,486		)	103,657
Income tax expense (benefit)	—		(18,792		)	(1,913		)	—			(20,705		)
Income (loss) from continuing operations, net of tax	123,634		(78,438		)	94,652			(15,486		)	124,362
Income (loss) from discontinued operations, net of tax	—		—			(817		)	—			(817		)
Net income (loss)	123,634		(78,438		)	93,835			(15,486		)	123,545
Less: Net (income) loss attributable to noncontrolling interest	—		—			89			—			89
Net income (loss) attributable to Nabors	$	123,634	$	(78,438	)	$	93,924		$	(15,486	)	$	123,634

	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
Intercompany Interest income	—		—			—			—			—
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
Impairment and other charges	—		—			—			—			—
Other	—		—			—			—			—
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 continuing 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

Condensed Consolidating Statements of Other Comprehensive Income (Loss)

	Three Months Ended March 31, 2015
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net income (loss) attributable to Nabors	$	123,634		$	(78,438	)	$	93,924		$	(15,486	)	$	123,634
Other comprehensive income (loss) before tax:
Translation adjustment attributable to Nabors:
Unrealized loss on translation adjustment	(68,539		)	51			(68,488		)	68,437			(68,539		)
Less: reclassification adjustment for realized loss on translation adjustment	5,365			—			5,365			(5,365		)	5,365
Translation adjustment attributable to Nabors	(63,174		)	51			(63,123		)	63,072			(63,174		)
Unrealized gains/(losses) on marketable securities	153			—			153			(153		)	153
Pension liability amortization and adjustment	276			276			552			(828		)	276
Unrealized gains/(losses) and amortization of cash flow hedges	153			153			153			(306		)	153
Other comprehensive income (loss) before tax	(62,592		)	480			(62,265		)	61,785			(62,592		)
Income tax expense (benefit) related to items of other comprehensive income (loss)	162			162			264			(426		)	162
Other comprehensive income (loss), net of tax	(62,754		)	318			(62,529		)	62,211			(62,754		)
Comprehensive income (loss) attributable to Nabors	60,880			(78,120		)	31,395			46,725			60,880
Net income (loss) attributable to noncontrolling interest	—			—			(89		)	—			(89		)
Translation adjustment to noncontrolling interest	—			—			(880		)	—			(880		)
Comprehensive income (loss) attributable to noncontrolling interest	—			—			(969		)	—			(969		)
Comprehensive income (loss)	$	60,880		$	(78,120	)	$	30,426		$	46,725		$	59,911

	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 tax:
Translation adjustment attributable to Nabors	(36,594		)	(216		)	(36,813		)	37,029			(36,594		)
Unrealized gains/(losses) on marketable securities:
Unrealized gains/(losses) on marketable securities	(19,208		)	—			(19,208		)	19,208			(19,208		)
Less: reclassification adjustment for (gains) losses on marketable securities	—			—			—			—			—
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	)

Condensed Consolidating Statements of Cash Flows

	Three Months Ended March 31, 2015
							Other
	Nabors			Nabors			Subsidiaries
	(Parent/			Delaware			(Non-			Consolidating
	Guarantor)			(Issuer)			Guarantors)			Adjustments			Total
	(In thousands)
Net cash provided by (used for) operating activities	$	10,404		$	(101,784	)	$	386,877		$	11,673		$	307,170
Cash flows from investing activities:
Purchase of investments	—			—			1,710			—			1,710
Sales and maturities of investments	—			—			623			—			623
Cash paid for acquisition of businesses, net	—			—			—			—			—
Investment in unconsolidated affiliates	—			—			(445		)	—			(445		)
Proceeds from merger transaction	5,500			646,078			41,872			—			693,450
Capital expenditures	—			—			(364,234		)	—			(364,234		)
Proceeds from sales of assets and insurance claims	—			—			8,997			—			8,997
Other	—			—			—			—			—
Changes in intercompany balances	—			(11,668		)	11,668			—			—
Net cash provided by (used for) investing activities	5,500			634,410			(299,809		)	—			340,101
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	—			—			(1,017		)	—			(1,017		)
Proceeds from (payments for) issuance of common shares	182			—			—			—			182
Dividends to shareholders	(19,797		)	—			—			2,327			(17,470		)
Proceeds from (payments for) commercial paper, net	—			(282,615		)	—			—			(282,615		)
Proceeds from issuance of intercompany debt	14,000			—			—			(14,000		)	—
Reduction in revolving credit facilities	—			(250,000		)	—			—			(250,000		)
Proceeds from term loan	—			300,000			—			—			300,000
Payments on term loan	—			(300,000		)	—			—			(300,000		)
Other	(7,089		)	—			2,540			—			(4,549		)
Net cash (used for) provided by financing activities	(12,704		)	(532,615		)	1,523			(11,673		)	(555,469		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(6,950		)	—			(6,950		)
Net increase (decrease) in cash and cash equivalents	3,200			11			81,641			—			84,852
Cash and cash equivalents, beginning of period	1,170			7			499,972			—			501,149
Cash and cash equivalents, end of period	$	4,370		$	18		$	581,613		$	—		$	586,001

	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