Investments in Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2011

Investments in Unconsolidated Affiliates [Abstract]

Investments in Unconsolidated Affiliates

Note 10    Investments in Unconsolidated Affiliates

Our principal investments in unconsolidated affiliates accounted for using the equity method include drilling and workover operations located in Saudi Arabia (51% ownership) and an oil and gas exploration, development and production joint venture in the United States (49.7%). These unconsolidated affiliates are integral to our operations in those locations. See Note 17 — Related-Party Transactions for a discussion of transactions with all of these related parties.

As of December 31, 2011 and 2010, our consolidated balance sheets reflect our investments in unconsolidated affiliates accounted for using the equity method totaling $371.0 million and $265.8 million, respectively, and at December 31, 2010, our investments in unconsolidated affiliates accounted for using the cost method totaling $1.9 million. Assets held for sale include investments in unconsolidated affiliates accounted for using the equity method totaling $13.7 million and $79.5 million at December 31, 2011 and 2010, respectively.

Combined condensed financial data for investments in unconsolidated affiliates, including assets classified as held for sale, are summarized as follows:

	December 31,
	2011		2010
	(In thousands)
Current assets	$	311,972	$	322,086
Long-term assets		1,728,399		1,332,212
Current liabilities		275,171		345,279
Long-term liabilities		800,444		460,198

	Year Ended December 31,
	2011		2010		2009
	(In thousands)
Gross revenues	$	832,774	$	901,742	$	960,823
Gross margin		278,019		241,831		223,005
Net income (loss)		270,161		48,426		(462,613	)
Nabors’ earnings (losses) from unconsolidated affiliates(1)		56,647		33,267		(155,432	)

(1) Nabors’ earnings (losses) from unconsolidated affiliates included in discontinued operations, net of tax was $76.5 million, $(10.6) million, and $(59.2) million, respectively, for the years ended December 31, 2011, 2010 and 2009.

Cumulative undistributed (losses) earnings of our unconsolidated affiliates included in our retained earnings as of December 31, 2011 and 2010 totaled approximately $(404.6) million and $(373.9) million, respectively. The Earnings (losses) from unconsolidated affiliates in our consolidated statements of income (loss) for the years ended December 31, 2011 and 2009 include our proportionate share of full-cost ceiling test writedowns of $15.6 million and $189.3 million, respectively, from our unconsolidated U.S. oil and gas joint venture. This writedown is included in our Oil and Gas operating segment results. Our proportionate share of a full-cost ceiling test writedown of $47.8 million recorded for the year ended December 31, 2009 by unconsolidated oil and gas joint ventures is reflected in discontinued operations. See Note 4 — Discontinued Operations for additional information.