Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Balance Sheets

	March 31, 2012
(In thousands)	Nabors (Parent/ Guarantor)		Nabors Delaware (Issuer/ Guarantor)		Other Subsidiaries (Non- Guarantors)		Consolidating Adjustments			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	3,808	$	21	$	350,193	$	—		$	354,022
Short-term investments		—		—		139,950		—			139,950
Assets held for sale		—		—		433,446		—			433,446
Accounts receivable, net		—		—		1,717,375		—			1,717,375
Inventory		—		—		265,787		—			265,787
Deferred income taxes		—		—		45,038		—			45,038
Other current assets		50		671		172,885		—			173,606
Total current assets		3,858		692		3,124,674		—			3,129,224
Long-term investments and other receivables		—		—		6,373		—			6,373
Property, plant and equipment, net		—		39,913		8,774,168		—			8,814,081
Goodwill		—		—		501,536		—			501,536
Intercompany receivables		164,629		—		537,881		(702,510	)		—
Investment in unconsolidated affiliates		5,644,060		6,200,966		1,810,355		(13,352,278	)		303,103
Other long-term assets		—		30,737		363,140		—			393,877
Total assets	$	5,812,547	$	6,272,308	$	15,118,127	$	(14,054,788	)	$	13,148,194
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	274,761	$	855	$	—		$	275,616
Trade accounts payable		52		23		687,501		—			687,576
Accrued liabilities		1,572		35,933		549,406		—			586,911
Income taxes payable		—		—		30,938		—			30,938
Total current liabilities		1,624		310,717		1,268,700		—			1,581,041
Long-term debt		—		4,447,940		49,785		—			4,497,725
Other long-term liabilities		—		31,862		290,141		—			322,003
Deferred income taxes		—		30,404		824,653		—			855,057
Intercompany payable		—		292,134		410,376		(702,510	)		—
Total liabilities		1,624		5,113,057		2,843,655		(702,510	)		7,255,826
Subsidiary preferred stock		—		—		69,188		—			69,188
Shareholders’ equity		5,810,923		1,159,251		12,193,027		(13,352,278	)		5,810,923
Noncontrolling interest		—		—		12,257		—			12,257
Total equity		5,810,923		1,159,251		12,205,284		(13,352,278	)		5,823,180
Total liabilities and equity	$	5,812,547	$	6,272,308	$	15,118,127	$	(14,054,788	)	$	13,148,194

	December 31, 2011
(In thousands)	Nabors (Parent/ Guarantor)		Nabors Delaware (Issuer/ Guarantor)		Other Subsidiaries (Non- Guarantors)		Consolidating Adjustments			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	203	$	21	$	398,351	$	—		$	398,575
Short-term investments		—		—		140,914		—			140,914
Assets held for sale		—		—		401,500		—			401,500
Accounts receivable, net		—		—		1,576,555		—			1,576,555
Inventory		—		—		272,852		—			272,852
Deferred income taxes		—		—		127,874		—			127,874
Other current assets		50		671		169,323		—			170,044
Total current assets		253		692		3,087,369		—			3,088,314
Long-term investments and other receivables		—		—		11,124		—			11,124
Property, plant and equipment, net		—		40,792		8,589,154		—			8,629,946
Goodwill		—		—		501,258		—			501,258
Intercompany receivables		164,760		—		537,881		(702,641	)		—
Investment in unconsolidated affiliates		5,429,029		6,084,868		1,843,654		(12,986,530	)		371,021
Other long-term assets		—		32,037		278,440		—			310,477
Total assets	$	5,594,042	$	6,158,389	$	14,848,880	$	(13,689,171	)	$	12,912,140
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	274,604	$	722	$	—		$	275,326
Trade accounts payable		42		23		782,688		—			782,753
Accrued liabilities		6,185		100,101		610,487		—			716,773
Income taxes payable		—				27,710		—			27,710
Total current liabilities		6,227		374,728		1,421,607		—			1,802,562
Long-term debt		—		4,297,500		50,990		—			4,348,490
Other long-term liabilities		—		32,303		260,454		—			292,757
Deferred income taxes		—		11,221		786,705		—			797,926
Intercompany payable		—		379,400		323,241		(702,641	)		—
Total liabilities		6,227		5,095,152		2,842,997		(702,641	)		7,241,735
Subsidiary preferred stock		—		—		69,188		—			69,188
Shareholders’ equity		5,587,815		1,063,237		11,923,293		(12,986,530	)		5,587,815
Noncontrolling interest		—		—		13,402		—			13,402
Total equity		5,587,815		1,063,237		11,936,695		(12,986,530	)		5,601,217
Total liabilities and equity	$	5,594,042	$	6,158,389	$	14,848,880	$	(13,689,171	)	$	12,912,140

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended March 31, 2012
(In thousands)	Nabors (Parent/ Guarantor)		Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Revenues and other income:
Operating revenues	$	—	$	—		$	1,890,426		$	—		$	1,890,426
Earnings (losses) from unconsolidated affiliates		—		—			(68,669	)		—			(68,669	)
Earnings (losses) from consolidated affiliates		135,879		54,528			28,361			(218,768	)		—
Investment income (loss)		—		—			20,252			—			20,252
Intercompany interest income		—		16,932			—			(16,932	)		—
Total revenues and other income		135,879		71,460			1,870,370			(235,700	)		1,842,009
Costs and other deductions:
Direct costs		—		—			1,184,816			—			1,184,816
General and administrative expenses		1,527		140			134,942			(263	)		136,346
Depreciation and amortization		—		902			246,719			—			247,621
Interest expense		—		68,169			(5,515	)		—			62,654
Intercompany interest expense		—		—			16,932			(16,932	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		262		(433	)		(1,932	)		263			(1,840	)
Total costs and other deductions		1,789		68,778			1,575,962			(16,932	)		1,629,597
Income (loss) from continuing operations before income taxes		134,090		2,682			294,408			(218,768	)		212,412
Income tax expense (benefit)		—		(19,183	)		88,227			—			69,044
Subsidiary preferred stock dividend		—		—			750			—			750
Income (loss) from continuing operations, net of tax		134,090		21,865			205,431			(218,768	)		142,618
Income (loss) from discontinued operations, net of tax		—		—			(8,795	)		—			(8,795	)
Net income (loss)		134,090		21,865			196,636			(218,768	)		133,823
Less: Net (income) loss attributable to noncontrolling interest		—		—			267			—			267
Net income (loss) attributable to Nabors	$	134,090	$	21,865		$	196,903		$	(218,768	)	$	134,090

	Three Months Ended March 31, 2011
(In thousands)	Nabors (Parent/ Guarantor)		Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Revenues and other income:
Operating revenues	$	—	$	—		$	1,373,568		$	—		$	1,373,568
Earnings (losses) from unconsolidated affiliates		—		—			16,274			—			16,274
Earnings (losses) from consolidated affiliates		85,792		59,893			29,660			(175,345	)		—
Investment income (loss)		3		—			12,277			—			12,280
Intercompany interest income		—		18,684			—			(18,684	)		—
Total revenues and other income		85,795		78,577			1,431,779			(194,029	)		1,402,122
Costs and other deductions:
Direct costs		—		—			841,108			—			841,108
General and administrative expenses		2,872		41			113,136			(98	)		115,951
Depreciation and amortization		—		871			224,339			—			225,210
Interest expense		—		77,349			(3,383	)		—			73,966
Intercompany interest expense		—		—			18,684			(18,684	)		—
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net		98		(464	)		6,427			98			6,159
Total costs and other deductions		2,970		77,797			1,200,311			(18,684	)		1,262,394
Income (loss) from continuing operations before income taxes		82,825		780			231,468			(175,345	)		139,728
Income tax expense (benefit)		—		(21,872	)		66,298			—			44,426
Subsidiary preferred stock dividend		—		—			750			—			750
Income (loss) from continuing operations, net of tax		82,825		22,652			164,420			(175,345	)		94,552
Income (loss) from discontinued operations, net of tax		—		—			(12,396	)		—			(12,396	)
Net income (loss)		82,825		22,652			152,024			(175,345	)		82,156
Less: Net (income) loss attributable to noncontrolling interest		—		—			669			—			669
Net income (loss) attributable to Nabors	$	82,825	$	22,652		$	152,693		$	(175,345	)	$	82,825

Condensed consolidating statements of other comprehensive income

	Three Months Ended March 31, 2012
(In thousands)	Nabors (Parent/ Guarantor)			Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Net income (loss) attributable to Nabors	$	134,090		$	21,865		$	196,903		$	(218,768	)	$	134,090
Other comprehensive income, before tax
Translation adjustment attributable to Nabors		17,266			(53	)		17,213			(17,160	)		17,266
Unrealized gains/(losses) on marketable securities:
Unrealized gains/(losses) on marketable securities		12,223			64			12,287			(12,351	)		12,223
Less: reclassification adjustment for (gains)/losses included in net income (loss)		(12,465	)		(10,288	)		(22,753	)		33,041			(12,465	)
Unrealized gains (losses) on marketable securities		(242	)		(10,224	)		(10,466	)		20,690			(242	)
Defined benefit pension plans:
Pension liability amortization		260			260			520			(780	)		260
Pension liability adjustment		—			—			—			—			—
Defined benefit pension plans		260			260			520			(780	)		260
Unrealized gains/(losses) and amortization of (gains)/losses on cash flow hedges		191			191			191			(382	)		191
Other comprehensive income, before tax		17,475			(9,826	)		7,458			2,368			17,475
Income tax expense related to items of other comprehensive income		(3,724	)		(3,724	)		(7,508	)		11,232			(3,724	)
Other comprehensive income, net of tax		21,199			(6,102	)		14,966			(8,864	)		21,199
Comprehensive income		155,289			15,763			211,869			(227,632	)		155,289
Net income (loss) attributable to noncontrolling interest		(267	)		—			(267	)		267			(267	)
Translation adjustment to noncontrolling interest		243			—			243			(243	)		243
Comprehensive income attributable to noncontrolling interest		(24	)		—			(24	)		24			(24	)
Comprehensive income attributable to Nabors	$	155,265		$	15,763		$	211,845		$	(227,608	)	$	155,265

	Three Months Ended March 31, 2011
(In thousands)	Nabors (Parent/ Guarantor)			Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Net income (loss) attributable to Nabors	$	82,825		$	22,652		$	152,693		$	(175,345	)	$	82,825
Other comprehensive income, before tax
Translation adjustment attributable to Nabors		31,439			(21	)		31,419			(31,398	)		31,439
Unrealized gains/(losses) on marketable securities:
Unrealized gains/(losses) on marketable securities		6,308			167			6,477			(6,644	)		6,308
Less: reclassification adjustment for (gains)/losses included in net income (loss)		(3	)		—			(3	)		3			(3	)
Unrealized gains (losses) on marketable securities		6,305			167			6,474			(6,641	)		6,305
Defined benefit pension plans:
Pension liability amortization		151			151			302			(453	)		151
Pension liability adjustment		—			—			—			—			—
Defined benefit pension plans		151			151			302			(453	)		151
Unrealized gains/(losses) and amortization of (gains)/losses on cash flow hedges		191			191			191			(382	)		191
Other comprehensive income, before tax		38,086			488			38,386			(38,874	)		38,086
Income tax expense related to items of other comprehensive income		182			182			304			(486	)		182
Other comprehensive income, net of tax		37,904			306			38,082			(38,388	)		37,904
Comprehensive income		120,729			22,958			190,775			(213,733	)		120,729
Net income (loss) attributable to noncontrolling interest		(669	)		—			(669	)		669			(669	)
Translation adjustment to noncontrolling interest		357			—			357			(357	)		357
Comprehensive income attributable to noncontrolling interest		(312	)		—			(312	)		312			(312	)
Comprehensive income attributable to Nabors	$	120,417		$	22,958		$	190,463		$	(213,421	)	$	120,417

Condensed Consolidating Statements of Cash Flows

	Three Months Ended March 31, 2012
(In thousands)	Nabors (Parent/ Guarantor)			Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Net cash provided by (used for) operating activities	$	10,693		$	(150,000	)	$	395,990		$	(12,500	)	$	244,183
Cash flows from investing activities:
Purchases of investments		—			—			(791	)		—			(791	)
Sales and maturities of investments		—			—			23,478			—			23,478
Cash paid for acquisition of businesses, net		—			—			—			—			—
Capital expenditures		—			—			(473,687	)		—			(473,687	)
Proceeds from sales of assets and insurance claims		—			—			21,321			—			21,321
Cash paid for investments in consolidated affiliates		—			—			—			—			—
Net cash provided by (used for) investing activities		—			—			(429,679	)		—			(429,679	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			(2,269	)		—			(2,269	)
Proceeds from revolving credit facilities		—			150,000			—			—			150,000
Proceeds from issuance of common shares		(5,319	)		—			(1	)		—			(5,320	)
Reduction in long-term debt		—			—			(1,072	)		—			(1,072	)
Purchase of restricted stock		(1,769	)		—			—			—			(1,769	)
Tax benefit related to share-based awards								(31	)		—			(31	)
Proceeds from parent contributions		—			—			(12,500	)		12,500			—
Net cash (used for) provided by financing activities		(7,088	)		150,000			(15,873	)		12,500			139,539
Effect of exchange rate changes on cash and cash equivalents		—			—			1,404			—			1,404
Net (decrease) increase in cash and cash equivalents		3,605			—			(48,158	)		—			(44,553	)
Cash and cash equivalents, beginning of period		203			21			398,351			—			398,575
Cash and cash equivalents, end of period	$	3,808		$	21		$	350,193		$	—		$	354,022

	Three Months Ended March 31, 2011
(In thousands)	Nabors (Parent/ Guarantor)			Nabors Delaware (Issuer/ Guarantor)			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Total
Net cash provided by (used for) operating activities	$	(4,988	)	$	5,003		$	290,909		$	—		$	290,924
Cash flows from investing activities:
Purchases of investments		—			—			(5,870	)		—			(5,870	)
Sales and maturities of investments		—			—			3,529			—			3,529
Cash paid for acquisition of businesses, net		—			—			—			—			—
Investment in unconsolidated affiliates		—			—			(19,000	)		—			(19,000	)
Capital expenditures		—			—			(358,574	)		—			(358,574	)
Proceeds from sales of assets and insurance claims		—			—			5,491			—			5,491
Cash paid for investments in consolidated affiliates		(6,500	)		—			—			6,500			—
Net cash provided by (used for) investing activities		(6,500	)		—			(374,424	)		6,500			(374,424	)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—			—			7,565			—			7,565
Proceeds from issuance of common shares		9,424			—			—			—			9,424
Reduction in long-term debt		—			(4,988	)		(572	)		—			(5,560	)
Repurchase of equity component of convertible debt		—			(14	)		—			—			(14	)
Purchase of restricted stock		(2,340	)		—			—			—			(2,340	)
Tax benefit related to share-based awards		—			(1	)					—			(1	)
Proceeds from parent contributions		—			—			6,500			(6,500	)		—
Net cash (used for) provided by financing activities		7,084			(5,003	)		13,493			(6,500	)		9,074
Effect of exchange rate changes on cash and cash equivalents		—			—			2,460			—			2,460
Net (decrease) increase in cash and cash equivalents		(4,404	)		—			(67,562	)		—			(71,966	)
Cash and cash equivalents, beginning of period		10,847			20			630,835			—			641,702
Cash and cash equivalents, end of period	$	6,443		$	20		$	563,273		$	—		$	569,736