Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2016

Condensed Consolidating Financial Information


	March 31, 2016
					Other
	Nabors			Nabors	Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	1,570	$	11	$	199,093	$	—	$	200,674
Short-term investments		—		—		20,827		—		20,827
Assets held for sale		—		—		80,100		—		80,100
Accounts receivable, net		—		—		594,506		—		594,506
Inventory		—		—		153,837		—		153,837
Other current assets		50		8,471		200,922		—		209,443
Total current assets		1,620		8,482		1,249,285		—		1,259,387
Property, plant and equipment, net		—		—		6,942,315		—		6,942,315
Goodwill		—		—		167,217		—		167,217
Intercompany receivables		142,423		11,000		1,292,096		(1,445,519)		—
Investment in consolidated affiliates		3,823,216		4,867,299		1,146,408		(9,836,923)		—
Investment in unconsolidated affiliates		—		—		94,657		—		94,657
Deferred tax assets		—		385,543		—		(385,543)		—
Other long-term assets		—		435		708,330		(222,010)		486,755
Total assets	$	3,967,259	$	5,272,759	$	11,600,308	$	(11,889,995)	$	8,950,331

	LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—	$	5,880	$	—	$	5,880
Trade accounts payable		127		25		249,926		—		250,078
Accrued liabilities		312		18,494		553,219		—		572,025
Income taxes payable		—		—		43,285		—		43,285
Total current liabilities		439		18,519		852,310		—		871,268
Long-term debt		—		3,806,412		—		(222,010)		3,584,402
Other long-term liabilities		—		22,501		542,585		—		565,086
Deferred income taxes		—		—		398,921		(385,543)		13,378
Intercompany payable		62,500		1,383,019		—		(1,445,519)		—
Total liabilities		62,939		5,230,451		1,793,816		(2,053,072)		5,034,134
Shareholders’ equity		3,904,320		42,308		9,794,615		(9,836,923)		3,904,320
Noncontrolling interest		—		—		11,877		—		11,877
Total equity		3,904,320		42,308		9,806,492		(9,836,923)		3,916,197
Total liabilities and equity	$	3,967,259	$	5,272,759	$	11,600,308	$	(11,889,995)	$	8,950,331

Condensed Consolidating Balance Sheets


	December 31, 2015
					Other
	Nabors		Nabors		Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	873	$	10	$	253,647	$	—	$	254,530
Short-term investments		—		—		20,059		—		20,059
Assets held for sale		—		—		75,678		—		75,678
Accounts receivable, net		—		—		784,671		—		784,671
Inventory		—		—		153,824		—		153,824
Other current assets		50		9,016		178,069		—		187,135
Total current assets		923		9,026		1,465,948		—		1,475,897
Property, plant and equipment, net		—		—		7,027,802		—		7,027,802
Goodwill		—		—		166,659		—		166,659
Intercompany receivables		139,366		11,000		1,260,310		(1,410,676)		—
Investment in consolidated affiliates		4,183,362		4,973,327		1,284,225		(10,440,914)		—
Investment in unconsolidated affiliates		—		—		415,177		—		415,177
Deferred tax assets		—		366,818		—		(366,818)		—
Other long-term assets		—		12,907		507,336		(67,938)		452,305
Total assets	$	4,323,651	$	5,373,078	$	12,127,457	$	(12,286,346)	$	9,537,840

	LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—	$	6,508	$	—	$	6,508
Trade accounts payable		71		3		271,910		—		271,984
Accrued liabilities		370		64,550		621,693		—		686,613
Income taxes payable		—		—		41,394		—		41,394
Total current liabilities		441		64,553		941,505		—		1,006,499
Long-term debt		—		3,723,138		—		(67,938)		3,655,200
Other long-term liabilities		—		35,086		517,861		—		552,947
Deferred income taxes		—		—		396,144		(366,818)		29,326
Intercompany payable		40,500		1,370,176		—		(1,410,676)		—
Total liabilities		40,941		5,192,953		1,855,510		(1,845,432)		5,243,972
Shareholders’ equity		4,282,710		180,125		10,260,789		(10,440,914)		4,282,710
Noncontrolling interest		—		—		11,158		—		11,158
Total equity		4,282,710		180,125		10,271,947		(10,440,914)		4,293,868
Total liabilities and equity	$	4,323,651	$	5,373,078	$	12,127,457	$	(12,286,346)	$	9,537,840

Condensed Consolidating Statements of Income (Loss)


	Three Months Ended March 31, 2016
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—	$	597,571	$	—	$	597,571
Earnings (losses) from unconsolidated affiliates		—		—		(167,151)		—		(167,151)
Earnings (losses) from consolidated affiliates		(395,770)		(106,087)		(137,970)		639,827		—
Investment income (loss)		—		123		3,201		(2,981)		343
Intercompany interest income		—		160		—		(160)		—
Total revenues and other income		(395,770)		(105,804)		295,651		636,686		430,763
Costs and other deductions:
Direct costs		—		—		365,023		—		365,023
General and administrative expenses		2,362		131		59,998		(157)		62,334
Research and engineering		—		—		8,162		—		8,162
Depreciation and amortization		—		31		215,787		—		215,818
Interest expense		—		50,664		(4,934)		—		45,730
Other, net		157		65		182,025		157		182,404
Intercompany interest expense		5		—		155		(160)		—
Total costs and other deductions		2,524		50,891		826,216		(160)		879,471
Income (loss) from continuing operations before income taxes		(398,294)		(156,695)		(530,565)		636,846		(448,708)
Income tax expense (benefit)		—		(18,725)		(33,339)		—		(52,064)
Income (loss) from continuing operations, net of tax		(398,294)		(137,970)		(497,226)		636,846		(396,644)
Income (loss) from discontinued operations, net of tax		—		—		(926)		—		(926)
Net income (loss)		(398,294)		(137,970)		(498,152)		636,846		(397,570)
Less: Net (income) loss attributable to noncontrolling interest		—		—		(724)		—		(724)
Net income (loss) attributable to Nabors	$	(398,294)	$	(137,970)	$	(498,876)	$	636,846	$	(398,294)

Condensed Consolidating Statements of Income (Loss)


	Three Months Ended March 31, 2015
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		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		112,497		(144)		115,430
Research and engineering		—		—		11,703		—		11,703
Depreciation and amortization		—		612		280,407		—		281,019
Interest expense		—		52,264		(5,663)		—		46,601
Other, net		11,684		—		(67,670)		144		(55,842)
Intercompany interest expense		—		—		2,439		(2,439)		—
Total costs and other deductions		14,403		53,234		1,253,323		(2,439)		1,318,521
Income (loss) from continuing operations before income taxes		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

Condensed Consolidating Statements of Comprehensive Income (Loss)


	Three Months Ended March 31, 2016
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net income (loss) attributable to Nabors	$	(398,294)	$	(137,970)	$	(498,876)	$	636,846	$	(398,294)
Other comprehensive income (loss) before tax
Translation adjustment attributable to Nabors:
Unrealized loss on translation adjustment		33,362		(46)		33,316		(33,270)		33,362
Less: reclassification adjustment for realized loss on translation adjustment		—		—		—		—		—
Translation adjustment attributable to Nabors		33,362		(46)		33,316		(33,270)		33,362
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities		769		—		769		(769)		769
Less: reclassification adjustment for (gains) losses included in net income (loss)		—		—		—		—		—
Unrealized gains (losses) on marketable securities		769		—		769		(769)		769
Pension liability amortization and adjustment		174		174		348		(522)		174
Unrealized gains (losses) and amortization on cash flow hedges		153		153		153		(306)		153
Other comprehensive income (loss) before tax		34,458		281		34,586		(34,867)		34,458
Income tax expense (benefit) related to items of other comprehensive income (loss)		129		129		198		(327)		129
Other comprehensive income (loss), net of tax		34,329		152		34,388		(34,540)		34,329
Comprehensive income (loss) attributable to Nabors		(363,965)		(137,818)		(464,488)		602,306		(363,965)
Net income (loss) attributable to noncontrolling interest		—		—		724		—		724
Translation adjustment attributable to noncontrolling interest		—		—		419		—		419
Comprehensive income (loss) attributable to noncontrolling interest		—		—		1,143		—		1,143
Comprehensive income (loss)	$	(363,965)	$	(137,818)	$	(463,345)	$	602,306	$	(362,822)

Condensed Consolidating Statements of Comprehensive Income (Loss)


	Three Months Ended March 31, 2015
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		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:										—
Unrealized gains (losses) on marketable securities		153		—		153		(153)		153
Less: reclassification adjustment for (gains) losses included in net income (loss)		—		—		—		—		—
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 on 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 attributable 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

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements Cash Flows


	Three Months Ended March 31, 2016
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net cash provided by (used for) operating activities	$	1,790	$	(116,240)	$	278,937	$	(2,981)	$	161,506
Cash flows from investing activities:
Sales and maturities of investments		—		—		41		—		41
Capital expenditures		—		—		(129,875)		—		(129,875)
Proceeds from sales of assets and insurance claims		—		—		5,448		—		5,448
Change in intercompany balances		—		34,916		(34,916)		—		—
Other		—		—		(4,439)		—		(4,439)
Net cash provided by (used for) investing activities		—		34,916		(163,741)		—		(128,825)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—		—		1,642		—		1,642
Proceeds from revolving credit facilities		—		150,000		—		—		150,000
Reduction in revolving credit facilities		—		(70,000)		—		—		(70,000)
Repurchase of common shares		—		—		(1,687)		—		(1,687)
Reduction in long-term debt		—		—		(148,045)		—		(148,045)
Dividends to shareholders		(19,903)		—		—		2,981		(16,922)
Proceeds from (payments for) commercial paper, net		—		1,325		—		—		1,325
Proceeds from issuance of intercompany debt		22,000		—		(22,000)		—		—
Other		(3,190)		—		(628)		—		(3,818)
Net cash (used for) provided by financing activities		(1,093)		81,325		(170,718)		2,981		(87,505)
Effect of exchange rate changes on cash and cash equivalents		—		—		968		—		968
Net increase (decrease) in cash and cash equivalents		697		1		(54,554)		—		(53,856)
Cash and cash equivalents, beginning of period		873		10		253,647		—		254,530
Cash and cash equivalents, end of period	$	1,570	$	11	$	199,093	$	—	$	200,674

Condensed Consolidating Statements Cash Flows


	Three Months Ended March 31, 2015
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		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:
Purchases of investments		—		—		1,710		—		1,710
Sales and maturities of investments		—		—		623		—		623
Investments 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 sale of assets and insurance claims		—		—		8,997		—		8,997
Change 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 parent common shares to affiliates		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