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Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2015
Condensed Consolidating Financial Information  
Condensed Consolidating Financial Information

 

Note 16 Condensed Consolidating Financial Information

 

Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware, a wholly owned subsidiary. The following condensed consolidating financial information is included so that separate financial statements of Nabors Delaware are not required to be filed with the SEC. The condensed consolidating financial statements present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

 

The following condensed consolidating financial information presents condensed consolidating balance sheets as of June 30, 2015 and December 31, 2014 and statements of income (loss), statements of other comprehensive income (loss) and statements of cash flows for the three months ended June 30, 2015 and 2014 of (a) Nabors, parent/guarantor, (b) Nabors Delaware, issuer of public debt securities guaranteed by Nabors, (c) the non-guarantor subsidiaries, (d) consolidating adjustments necessary to consolidate Nabors and its subsidiaries and (e) Nabors on a consolidated basis.

 

Condensed Consolidating Balance Sheets

 

 

 

 

June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

 

 

ASSETS

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,436

 

$

10

 

$

435,229

 

$

—

 

$

436,675

 

Short-term investments

 

—

 

—

 

33,222

 

—

 

33,222

 

Assets held for sale

 

—

 

—

 

136,677

 

—

 

136,677

 

Accounts receivable, net

 

—

 

—

 

908,563

 

—

 

908,563

 

Inventory

 

—

 

—

 

183,775

 

—

 

183,775

 

Deferred income taxes

 

—

 

—

 

—

 

—

 

—

 

Other current assets

 

50

 

13,908

 

256,285

 

—

 

270,243

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

1,486

 

13,918

 

1,953,751

 

—

 

1,969,155

 

Long-term investments

 

—

 

—

 

2,617

 

—

 

2,617

 

Property, plant and equipment, net

 

—

 

—

 

7,405,441

 

—

 

7,405,441

 

Goodwill

 

—

 

—

 

139,756

 

—

 

139,756

 

Intercompany receivables

 

125,042

 

62,000

 

1,147,968

 

(1,335,010

)

—

 

Investment in consolidated affiliates

 

4,805,715

 

5,022,430

 

1,394,834

 

(11,222,979

)

—

 

Investment in unconsolidated affiliates

 

—

 

—

 

676,234

 

—

 

676,234

 

Other long-term assets

 

—

 

28,465

 

295,615

 

—

 

324,080

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,932,243

 

$

5,126,813

 

$

13,016,216

 

$

(12,557,989

)

$

10,517,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Current debt

 

$

—

 

$

—

 

66,359

 

$

—

 

$

66,359

 

Trade accounts payable

 

195

 

6

 

362,857

 

—

 

363,058

 

Accrued liabilities

 

88

 

64,286

 

708,913

 

—

 

773,287

 

Income taxes payable

 

—

 

—

 

20,049

 

—

 

20,049

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

283

 

64,292

 

1,158,178

 

—

 

1,222,753

 

Long-term debt

 

—

 

3,731,816

 

(40,459

)

—

 

3,691,357

 

Other long-term liabilities

 

—

 

35,546

 

590,965

 

—

 

626,511

 

Deferred income taxes

 

—

 

(330,586

)

367,873

 

—

 

37,287

 

Intercompany payable

 

—

 

1,335,010

 

—

 

(1,335,010

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

283

 

4,836,078

 

2,076,557

 

(1,335,010

)

5,577,908

 

Subsidiary preferred stock

 

—

 

—

 

—

 

—

 

—

 

Shareholders’ equity

 

4,931,960

 

290,735

 

10,932,244

 

(11,222,979

)

4,931,960

 

Noncontrolling interest

 

—

 

—

 

7,415

 

—

 

7,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

4,931,960

 

290,735

 

10,939,659

 

(11,222,979

)

4,939,375

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

4,932,243

 

$

5,126,813

 

$

13,016,216

 

$

(12,557,989

)

$

10,517,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Balance Sheets

 

 

 

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 consolidated affiliates

 

4,771,413

 

5,014,743

 

1,448,688

 

(11,234,844

)

—

 

Investment in unconsolidated affiliates

 

—

 

—

 

58,251

 

—

 

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 June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

—

 

$

—

 

$

863,305

 

$

—

 

$

863,305

 

Earnings (losses) from unconsolidated affiliates

 

—

 

—

 

(1,116

)

—

 

(1,116

)

Earnings (losses) from consolidated affiliates

 

(34,151

)

53,933

 

24,751

 

(44,533

)

—

 

Investment income (loss)

 

—

 

555

 

2,953

 

(2,327

)

1,181

 

Intercompany interest income

 

—

 

2,187

 

—

 

(2,187

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

 

(34,151

)

56,675

 

889,893

 

(49,047

)

863,370

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and other deductions:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

—

 

—

 

488,522

 

—

 

488,522

 

General and administrative expenses

 

2,112

 

(681

)

84,999

 

(140

)

86,290

 

Depreciation and amortization

 

—

 

31

 

218,165

 

—

 

218,196

 

Interest expense

 

(1

)

49,713

 

(5,243

)

—

 

44,469

 

Intercompany interest expense

 

24

 

—

 

2,163

 

(2,187

)

—

 

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net

 

535

 

—

 

663

 

140

 

1,338

 

Other

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other deductions

 

2,670

 

49,063

 

789,269

 

(2,187

)

838,815

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax

 

(36,821

)

7,612

 

100,624

 

(46,860

)

24,555

 

Income tax expense (benefit)

 

—

 

(17,139

)

83,584

 

—

 

66,445

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, net of tax

 

(36,821

)

24,751

 

17,040

 

(46,860

)

(41,890

)

Income (loss) from discontinued operations, net of tax

 

—

 

—

 

5,025

 

—

 

5,025

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(36,821

)

24,751

 

22,065

 

(46,860

)

(36,865

)

Less: Net (income) loss attributable to noncontrolling interest

 

—

 

—

 

44

 

—

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Nabors

 

$

(36,821

)

$

24,751

 

$

22,109

 

$

(46,860

)

$

(36,821

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Income (Loss)

 

 

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

—

 

$

—

 

$

1,616,981

 

$

—

 

$

1,616,981

 

Earnings (losses) from unconsolidated affiliates

 

—

 

—

 

(576

)

—

 

(576

)

Earnings (losses) from consolidated affiliates

 

67,009

 

53,368

 

21,844

 

(142,221

)

—

 

Investment income (loss)

 

—

 

146

 

8,056

 

(1,136

)

7,066

 

Intercompany interest income

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

 

67,009

 

53,514

 

1,646,305

 

(143,357

)

1,623,471

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and other deductions:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

—

 

—

 

1,066,495

 

—

 

1,066,495

 

General and administrative expenses

 

2,439

 

(31

)

131,351

 

(129

)

133,630

 

Depreciation and amortization

 

—

 

902

 

281,918

 

—

 

282,820

 

Interest expense

 

—

 

49,313

 

(3,010

)

—

 

46,303

 

Intercompany interest expense

 

(3

)

—

 

3

 

—

 

—

 

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net

 

129

 

—

 

16,246

 

129

 

16,504

 

Other

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other deductions

 

2,565

 

50,184

 

1,493,003

 

—

 

1,545,752

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax

 

64,444

 

3,330

 

153,302

 

(143,357

)

77,719

 

Income tax expense (benefit)

 

—

 

(18,514

)

29,270

 

—

 

10,756

 

Subsidiary preferred stock dividend

 

—

 

—

 

1,234

 

—

 

1,234

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, net of tax

 

64,444

 

21,844

 

122,798

 

(143,357

)

65,729

 

Income (loss) from discontinued operations, net of tax

 

—

 

—

 

(1,032

)

—

 

(1,032

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

64,444

 

21,844

 

121,766

 

(143,357

)

64,697

 

Less: Net (income) loss attributable to noncontrolling interest

 

—

 

—

 

(253

)

—

 

(253

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Nabors

 

$

64,444

 

$

21,844

 

$

121,513

 

$

(143,357

)

$

64,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Income (Loss)

 

 

 

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

—

 

$

—

 

$

2,278,012

 

$

—

 

$

2,278,012

 

Earnings (losses) from unconsolidated affiliates

 

—

 

—

 

5,386

 

—

 

5,386

 

Earnings (losses) from consolidated affiliates

 

103,886

 

7,493

 

(53,687

)

(57,692

)

—

 

Investment income (loss)

 

—

 

560

 

6,244

 

(4,654

)

2,150

 

Intercompany interest income

 

—

 

4,626

 

—

 

(4,626

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

 

103,886

 

12,679

 

2,235,955

 

(66,972

)

2,285,548

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and other deductions:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

—

 

—

 

1,408,132

 

—

 

1,408,132

 

General and administrative expenses

 

4,831

 

(323

)

209,199

 

(284

)

213,423

 

Depreciation and amortization

 

—

 

643

 

498,572

 

—

 

499,215

 

Interest expense

 

(1

)

101,977

 

(10,906

)

—

 

91,070

 

Intercompany interest expense

 

24

 

—

 

4,602

 

(4,626

)

—

 

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net

 

12,219

 

—

 

(67,007

)

284

 

(54,504

)

Other

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other deductions

 

17,073

 

102,297

 

2,042,592

 

(4,626

)

2,157,336

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax

 

86,813

 

(89,618

)

193,363

 

(62,346

)

128,212

 

Income tax expense (benefit)

 

—

 

(35,931

)

81,671

 

—

 

45,740

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, net of tax

 

86,813

 

(53,687

)

111,692

 

(62,346

)

82,472

 

Income (loss) from discontinued operations, net of tax

 

—

 

—

 

4,208

 

—

 

4,208

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

86,813

 

(53,687

)

115,900

 

(62,346

)

86,680

 

Less: Net (income) loss attributable to noncontrolling interest

 

—

 

—

 

133

 

—

 

133

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Nabors

 

$

86,813

 

$

(53,687

)

$

116,033

 

$

(62,346

)

$

86,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Income (Loss)

 

 

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

—

 

$

—

 

$

3,206,599

 

$

—

 

$

3,206,599

 

Earnings (losses) from unconsolidated affiliates

 

—

 

—

 

(3,021

)

—

 

(3,021

)

Earnings (losses) from consolidated affiliates

 

119,592

 

44,608

 

(18,245

)

(145,955

)

—

 

Investment income (loss)

 

—

 

146

 

10,172

 

(2,272

)

8,046

 

Intercompany interest income

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

 

119,592

 

44,754

 

3,195,505

 

(148,227

)

3,211,624

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and other deductions:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

—

 

—

 

2,128,234

 

—

 

2,128,234

 

General and administrative expenses

 

4,892

 

(350

)

263,632

 

(278

)

267,896

 

Depreciation and amortization

 

—

 

1,804

 

563,143

 

—

 

564,947

 

Interest expense

 

—

 

98,682

 

(7,569

)

—

 

91,113

 

Intercompany interest expense

 

59

 

—

 

(59

)

—

 

—

 

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net

 

278

 

(223

)

17,647

 

278

 

17,980

 

Other

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other deductions

 

5,229

 

99,913

 

2,965,028

 

—

 

3,070,170

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax

 

114,363

 

(55,159

)

230,477

 

(148,227

)

141,454

 

Income tax expense (benefit)

 

—

 

(36,914

)

61,678

 

—

 

24,764

 

Subsidiary preferred stock dividend

 

—

 

—

 

1,984

 

—

 

1,984

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, net of tax

 

114,363

 

(18,245

)

166,815

 

(148,227

)

114,706

 

Income (loss) from discontinued operations, net of tax

 

—

 

—

 

483

 

—

 

483

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

114,363

 

(18,245

)

167,298

 

(148,227

)

115,189

 

Less: Net (income) loss attributable to noncontrolling interest

 

—

 

—

 

(826

)

—

 

(826

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Nabors

 

$

114,363

 

$

(18,245

)

$

166,472

 

$

(148,227

)

$

114,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Comprehensive Income (Loss)

 

 

 

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net income (loss) attributable to Nabors

 

$

(36,821

)

$

24,751

 

$

22,109

 

$

(46,860

)

$

(36,821

)

Other comprehensive income (loss) before tax:

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on translation adjustment

 

12,273

 

—

 

12,273

 

(12,273

)

12,273

 

Less: reclassification adjustment for realized loss on translation adjustment

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

12,273

 

—

 

12,273

 

(12,273

)

12,273

 

Unrealized gains (losses) on marketable securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(2,153

)

—

 

(2,153

)

2,153

 

(2,153

)

Less: reclassification adjustment for (gains) losses on marketable securities

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(2,153

)

—

 

(2,153

)

2,153

 

(2,153

)

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

 

10,549

 

429

 

10,825

 

(11,254

)

10,549

 

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

161

 

161

 

263

 

(424

)

161

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

10,388

 

268

 

10,562

 

(10,830

)

10,388

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to Nabors

 

(26,433

)

25,019

 

32,671

 

(57,690

)

(26,433

)

Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

(44

)

—

 

(44

)

Translation adjustment to noncontrolling interest

 

—

 

—

 

162

 

—

 

162

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to noncontrolling interest

 

—

 

—

 

118

 

—

 

118

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

(26,433

)

$

25,019

 

$

32,789

 

$

(57,690

)

$

(26,315

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Comprehensive Income (Loss)

 

 

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net income (loss) attributable to Nabors

 

$

64,444

 

$

21,844

 

$

121,513

 

$

(143,357

)

$

64,444

 

Other comprehensive income (loss) before tax:

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

32,255

 

1,937

 

32,458

 

(34,395

)

32,255

 

Unrealized gains (losses) on marketable securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(325

)

243

 

(82

)

(161

)

(325

)

Less: reclassification adjustment for (gains) losses on marketable securities

 

(4,903

)

(506

)

(5,409

)

5,915

 

(4,903

)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(5,228

)

(263

)

(5,491

)

5,754

 

(5,228

)

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

 

27,303

 

1,950

 

27,366

 

(29,316

)

27,303

 

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

(784

)

(784

)

(1,863

)

2,647

 

(784

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

28,087

 

2,734

 

29,229

 

(31,963

)

28,087

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to Nabors

 

92,531

 

24,578

 

150,742

 

(175,320

)

92,531

 

Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

253

 

—

 

253

 

Translation adjustment to noncontrolling interest

 

—

 

—

 

379

 

—

 

379

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to noncontrolling interest

 

—

 

—

 

632

 

—

 

632

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

92,531

 

$

24,578

 

$

151,374

 

$

(175,320

)

$

93,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Comprehensive Income (Loss)

 

 

 

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net income (loss) attributable to Nabors

 

$

86,813

 

$

(53,687

)

$

116,033

 

$

(62,346

)

$

86,813

 

Other comprehensive income (loss) before tax:

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on translation adjustment

 

(56,266

)

51

 

(56,215

)

56,164

 

(56,266

)

Less: reclassification adjustment for realized loss on translation adjustment

 

5,365

 

—

 

5,365

 

(5,365

)

5,365

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

(50,901

)

51

 

(50,850

)

50,799

 

(50,901

)

Unrealized gains (losses) on marketable securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(2,000

)

—

 

(2,000

)

2,000

 

(2,000

)

Less: reclassification adjustment for (gains) losses on marketable securities

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(2,000

)

—

 

(2,000

)

2,000

 

(2,000

)

Pension liability amortization and adjustment

 

552

 

552

 

1,104

 

(1,656

)

552

 

Unrealized gains (losses) and amortization of cash flow hedges

 

306

 

306

 

306

 

(612

)

306

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before tax

 

(52,043

)

909

 

(51,440

)

50,531

 

(52,043

)

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

323

 

323

 

527

 

(850

)

323

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

(52,366

)

586

 

(51,967

)

51,381

 

(52,366

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to Nabors

 

34,447

 

(53,101

)

64,066

 

(10,965

)

34,447

 

Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

(133

)

—

 

(133

)

Translation adjustment to noncontrolling interest

 

—

 

—

 

(718

)

—

 

(718

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to noncontrolling interest

 

—

 

—

 

(851

)

—

 

(851

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

34,447

 

$

(53,101

)

$

63,215

 

$

(10,965

)

$

33,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements of Comprehensive Income (Loss)

 

 

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net income (loss) attributable to Nabors

 

$

114,363

 

$

(18,245

)

$

166,472

 

$

(148,227

)

$

114,363

 

Other comprehensive income (loss) before tax:

 

 

 

 

 

 

 

 

 

 

 

Translation adjustment attributable to Nabors

 

(4,339

)

1,721

 

(4,355

)

2,634

 

(4,339

)

Unrealized gains (losses) on marketable securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(19,533

)

243

 

(19,290

)

19,047

 

(19,533

)

Less: reclassification adjustment for (gains) losses on marketable securities

 

(4,903

)

(506

)

(5,409

)

5,915

 

(4,903

)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on marketable securities

 

(24,436

)

(263

)

(24,699

)

24,962

 

(24,436

)

Pension liability amortization and adjustment

 

246

 

246

 

492

 

(738

)

246

 

Unrealized gains (losses) and amortization of cash flow hedges

 

306

 

306

 

306

 

(612

)

306

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before tax

 

(28,223

)

2,010

 

(28,256

)

26,246

 

(28,223

)

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

(636

)

(636

)

(1,627

)

2,263

 

(636

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

(27,587

)

2,646

 

(26,629

)

23,983

 

(27,587

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to Nabors

 

86,776

 

(15,599

)

139,843

 

(124,244

)

86,776

 

Net income (loss) attributable to noncontrolling interest

 

—

 

—

 

826

 

—

 

826

 

Translation adjustment to noncontrolling interest

 

—

 

—

 

(102

)

—

 

(102

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to noncontrolling interest

 

—

 

—

 

724

 

—

 

724

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

86,776

 

$

(15,599

)

$

140,567

 

$

(124,244

)

$

87,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements Cash Flows

 

 

 

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net cash provided by (used for) operating activities

 

$

40,628

 

$

(120,729

)

$

623,481

 

$

(25,976

)

$

517,404

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Purchase of investments

 

—

 

—

 

(8

)

—

 

(8

)

Sales and maturities of investments

 

—

 

—

 

745

 

—

 

745

 

Cash paid for acquisition of businesses, net

 

—

 

—

 

(57,909

)

—

 

(57,909

)

Investment in unconsolidated affiliates

 

—

 

—

 

(445

)

—

 

(445

)

Proceeds from merger transaction

 

5,500

 

646,078

 

8,472

 

—

 

660,050

 

Capital expenditures

 

—

 

—

 

(566,672

)

—

 

(566,672

)

Proceeds from sales of assets and insurance claims

 

—

 

—

 

24,790

 

—

 

24,790

 

Other

 

—

 

—

 

1,809

 

—

 

1,809

 

Changes in intercompany balances

 

—

 

45,063

 

(45,063

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

5,500

 

691,141

 

(634,281

)

—

 

62,360

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash overdrafts

 

—

 

—

 

310

 

—

 

310

 

Proceeds from (payments for) issuance of common shares

 

1,198

 

—

 

—

 

—

 

1,198

 

Dividends to shareholders

 

(39,634

)

—

 

—

 

4,654

 

(34,980

)

Proceeds from short-term borrowings

 

—

 

—

 

60,169

 

—

 

60,169

 

Proceeds from (payments for) commercial paper, net

 

—

 

(208,467

)

—

 

—

 

(208,467

)

Reduction in revolving credit facility

 

—

 

(450,000

)

—

 

—

 

(450,000

)

Proceeds from term loan facility

 

—

 

300,000

 

—

 

—

 

300,000

 

Payments on term loan facility

 

—

 

(300,000

)

—

 

—

 

(300,000

)

Proceeds from issuance of intercompany debt

 

27,000

 

88,058

 

(115,058

)

—

 

—

 

Paydown of intercompany debt

 

(27,000

)

—

 

27,000

 

—

 

—

 

Payments on Parent (Equity or N/P)

 

—

 

—

 

(21,322

)

21,322

 

—

 

Other

 

(7,426

)

—

 

—

 

—

 

(7,426

)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used for) provided by financing activities

 

(45,862

)

(570,409

)

(48,901

)

25,976

 

(639,196

)

Effect of exchange rate changes on cash and cash equivalents

 

—

 

—

 

(5,042

)

—

 

(5,042

)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

266

 

3

 

(64,743

)

—

 

(64,474

)

Cash and cash equivalents, beginning of period

 

1,170

 

7

 

499,972

 

—

 

501,149

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

1,436

 

$

10

 

$

435,229

 

$

—

 

$

436,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statements Cash Flows

 

 

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Nabors

 

Nabors

 

Subsidiaries

 

 

 

 

 

 

 

(Parent/

 

Delaware

 

(Non-

 

Consolidating

 

 

 

 

 

Guarantor)

 

(Issuer)

 

Guarantors)

 

Adjustments

 

Total

 

 

 

(In thousands)

 

Net cash provided by (used for) operating activities

 

$

(11,728

)

$

(62,435

)

$

906,048

 

$

14,152

 

$

846,037

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Purchase of investments

 

—

 

—

 

(266

)

—

 

(266

)

Sales and maturities of investments

 

—

 

—

 

23,238

 

—

 

23,238

 

Cash paid for acquisition of businesses, net

 

—

 

—

 

(10,200

)

—

 

(10,200

)

Investment in unconsolidated affiliates

 

—

 

—

 

(1,612

)

—

 

(1,612

)

Capital expenditures

 

—

 

—

 

(862,680

)

—

 

(862,680

)

Proceeds from sales of assets and insurance claims

 

—

 

—

 

69,343

 

—

 

69,343

 

Other

 

—

 

—

 

(761

)

—

 

(761

)

Changes in intercompany balances

 

—

 

4,182

 

(4,182

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) investing activities

 

—

 

4,182

 

(787,120

)

—

 

(782,938

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash overdrafts

 

—

 

—

 

(3,383

)

—

 

(3,383

)

Proceeds from (payments for) issuance of common shares

 

29,048

 

—

 

(1

)

—

 

29,047

 

Dividends to shareholders

 

(26,064

)

—

 

—

 

2,272

 

(23,792

)

Proceeds from (payments for) commercial paper, net

 

—

 

111,228

 

—

 

—

 

111,228

 

Proceeds from revolving credit facilities

 

—

 

—

 

15,000

 

—

 

15,000

 

Reduction in revolving credit facilities

 

—

 

(60,000

)

(15,000

)

—

 

(75,000

)

Purchase of preferred stock

 

—

 

—

 

(70,875

)

—

 

(70,875

)

Reduction in short-term debt

 

—

 

—

 

(10,000

)

—

 

(10,000

)

Proceeds from (payments for) issuance of parent common shares to affiliates

 

16,424

 

—

 

—

 

(16,424

)

—

 

Other

 

(7,303

)

—

 

—

 

—

 

(7,303

)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used for) provided by financing activities

 

12,105

 

51,228

 

(84,259

)

(14,152

)

(35,078

)

Effect of exchange rate changes on cash and cash equivalents

 

—

 

—

 

(6,978

)

—

 

(6,978

)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

377

 

(7,025

)

27,691

 

—

 

21,043

 

Cash and cash equivalents, beginning of period

 

730

 

7,029

 

382,156

 

—

 

389,915

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

1,107

 

$

4

 

$

409,847

 

$

—

 

$

410,958