Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Consolidating Financial Information

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

	March 31, 2017
					Other
	Nabors			Nabors	Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	8,579	$	4	$	192,105	$	—	$	200,688
Short-term investments		—		—		27,907		—		27,907
Accounts receivable, net		—		—		514,446		—		514,446
Inventory, net		—		—		109,461		—		109,461
Assets held for sale		—		—		77,118		—		77,118
Other current assets		57		28,080		164,899		—		193,036
Total current assets		8,636		28,084		1,085,936		—		1,122,656
Property, plant and equipment, net		—		—		6,218,699		—		6,218,699
Goodwill		—		—		166,999		—		166,999
Intercompany receivables		144,795		—		1,117,044		(1,261,839)		—
Investment in consolidated affiliates		3,044,185		4,779,879		1,151,049		(8,975,113)		—
Deferred tax assets		—		469,784		373,973		(469,784)		373,973
Other long-term assets		—		161		301,414		(88,590)		212,985
Total assets	$	3,197,616	$	5,277,908	$	10,415,114	$	(10,795,326)	$	8,095,312
	LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt	$	—	$	—	$	313	$	—	$	313
Trade accounts payable		113		24		241,195		—		241,332
Accrued liabilities		19,555		27,386		450,423		—		497,364
Income taxes payable		—		—		32,640		—		32,640
Total current liabilities		19,668		27,410		724,571		—		771,649
Long-term debt		—		3,750,255		—		(88,590)		3,661,665
Other long-term liabilities		—		22,729		444,519		—		467,248
Deferred income taxes		—		—		478,140		(469,784)		8,356
Intercompany payable		—		1,261,839		—		(1,261,839)		—
Total liabilities		19,668		5,062,233		1,647,230		(1,820,213)		4,908,918
Shareholders’ equity		3,177,948		215,675		8,759,438		(8,975,113)		3,177,948
Noncontrolling interest		—		—		8,446		—		8,446
Total equity		3,177,948		215,675		8,767,884		(8,975,113)		3,186,394
Total liabilities and equity	$	3,197,616	$	5,277,908	$	10,415,114	$	(10,795,326)	$	8,095,312

Condensed Consolidating Balance Sheets

	December 31, 2016
					Other
	Nabors		Nabors		Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	1,148	$	10,177	$	252,768	$	—	$	264,093
Short-term investments		—		—		31,109		—		31,109
Accounts receivable, net		—		—		508,355		—		508,355
Inventory, net		—		—		103,595		—		103,595
Assets held for sale		—		—		76,668		—		76,668
Other current assets		50		22,209		149,760		—		172,019
Total current assets		1,198		32,386		1,122,255		—		1,155,839
Property, plant and equipment, net		—		—		6,267,583		—		6,267,583
Goodwill		—		—		166,917		—		166,917
Intercompany receivables		142,447		—		1,342,942		(1,485,389)		—
Investment in consolidated affiliates		3,170,254		4,830,572		1,083,948		(9,084,774)		—
Deferred tax assets		—		443,049		366,586		(443,049)		366,586
Other long-term assets		—		344		447,962		(218,216)		230,090
Total assets	$	3,313,899	$	5,306,351	$	10,798,193	$	(11,231,428)	$	8,187,015
	LIABILITIES AND EQUITY
Current liabilities:
Current debt	$	—	$	—	$	297	$	—	$	297
Trade accounts payable		205		8		264,365		—		264,578
Accrued liabilities		20,669		65,246		457,333		—		543,248
Income taxes payable		—		—		13,811		—		13,811
Total current liabilities		20,874		65,254		735,806		—		821,934
Long-term debt		—		3,796,550		—		(218,215)		3,578,335
Other long-term liabilities		—		22,659		499,797		—		522,456
Deferred income taxes		—		—		452,544		(443,049)		9,495
Intercompany payable		46,000		1,439,390		—		(1,485,390)		—
Total liabilities		66,874		5,323,853		1,688,147		(2,146,654)		4,932,220
Shareholders’ equity		3,247,025		(17,502)		9,102,276		(9,084,774)		3,247,025
Noncontrolling interest		—		—		7,770		—		7,770
Total equity		3,247,025		(17,502)		9,110,046		(9,084,774)		3,254,795
Total liabilities and equity	$	3,313,899	$	5,306,351	$	10,798,193	$	(11,231,428)	$	8,187,015

Condensed Consolidating Statements of Income (Loss)

Condensed Consolidating Statements of Income (Loss)

	Three Months Ended March 31, 2017
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—	$	562,550	$	—	$	562,550
Earnings (losses) from unconsolidated affiliates		—		—		2		—		2
Earnings (losses) from consolidated affiliates		(145,871)		(50,717)		(96,239)		292,827		—
Investment income (loss)		17		63		3,621		(2,980)		721
Total revenues and other income		(145,854)		(50,654)		469,934		289,847		563,273
Costs and other deductions:
Direct costs		—		—		387,644		—		387,644
General and administrative expenses		3,298		137		60,153		(179)		63,409
Research and engineering		—		—		11,757		—		11,757
Depreciation and amortization		—		31		203,641		—		203,672
Interest expense		—		60,755		(4,237)		—		56,518
Other, net		(159)		11,397		2,093		179		13,510
Intercompany interest expense		(9)		—		9		—		—
Total costs and other deductions		3,130		72,320		661,060		—		736,510
Income (loss) from continuing operations before income taxes		(148,984)		(122,974)		(191,126)		289,847		(173,237)
Income tax expense (benefit)		—		(26,735)		1,126		—		(25,609)
Income (loss) from continuing operations, net of tax		(148,984)		(96,239)		(192,252)		289,847		(147,628)
Income (loss) from discontinued operations, net of tax		—		—		(439)		—		(439)
Net income (loss)		(148,984)		(96,239)		(192,691)		289,847		(148,067)
Less: Net (income) loss attributable to noncontrolling interest		—		—		(917)		—		(917)
Net income (loss) attributable to Nabors	$	(148,984)	$	(96,239)	$	(193,608)	$	289,847	$	(148,984)

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 Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended March 31, 2017
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net income (loss) attributable to Nabors	$	(148,984)	$	(96,239)	$	(193,608)	$	289,847	$	(148,984)
Other comprehensive income (loss) before tax:
Translation adjustment attributable to Nabors
Unrealized gain (loss) on translation adjustment		3,860		(7)		3,860		(3,853)		3,860
Less: reclassification adjustment for realized (gain) loss on translation adjustment		—		—		—		—		—
Translation adjustment attributable to Nabors		3,860		(7)		3,860		(3,853)		3,860
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities		(3,201)		—		(3,201)		3,201		(3,201)
Less: reclassification adjustment for (gains) losses included in net income (loss)		—		—		—		—		—
Unrealized gains (losses) on marketable securities		(3,201)		—		(3,201)		3,201		(3,201)
Pension liability amortization and adjustment		50		50		100		(150)		50
Unrealized gains (losses) and amortization on cash flow hedges		153		153		153		(306)		153
Other comprehensive income (loss) before tax		862		196		912		(1,108)		862
Income tax expense (benefit) related to items of other comprehensive income (loss)		79		79		158		(237)		79
Other comprehensive income (loss), net of tax		783		117		754		(871)		783
Comprehensive income (loss) attributable to Nabors		(148,201)		(96,122)		(192,854)		288,976		(148,201)
Net income (loss) attributable to noncontrolling interest		—		—		917		—		917
Translation adjustment attributable to noncontrolling interest		—		—		49		—		49
Comprehensive income (loss) attributable to noncontrolling interest		—		—		966		—		966
Comprehensive income (loss)	$	(148,201)	$	(96,122)	$	(191,888)	$	288,976	$	(147,235)

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 gain (loss) on translation adjustment		33,362		(46)		33,316		(33,270)		33,362
Less: reclassification adjustment for realized (gain) 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 Cash Flows

Condensed Consolidating Statements Cash Flows

	Three Months Ended March 31, 2017
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net cash provided by (used for) operating activities	$	70,492	$	(112,431)	$	53,928	$	(69,980)	$	(57,991)
Cash flows from investing activities:
Purchases of investments		—		—		(4)		—		(4)
Sales and maturities of investments		—		—		91		—		91
Capital expenditures		—		—		(183,427)		—		(183,427)
Proceeds from sales of assets and insurance claims		—		—		3,253		—		3,253
Change in intercompany balances		—		(198,035)		198,035		—		—
Other changes in investing		—		—		(106)		—		(106)
Net cash provided by (used for) investing activities		—		(198,035)		17,842		—		(180,193)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—		—		(469)		—		(469)
Proceeds from issuance of long-term debt		—		411,200		—		—		411,200
Debt issuance costs		—		(10,439)		—		—		(10,439)
Proceeds from (payments for) issuance of common shares		8,300		—		—		—		8,300
Capped call hedge transactions		—		(40,250)		—		—		(40,250)
Reduction of long-term debt		—		(57,670)		(112,821)		—		(170,491)
Dividends to shareholders		(20,020)		—		—		2,980		(17,040)
Payments on term loan		—		(162,500)		—		—		(162,500)
Proceeds from (payments for) short-term borrowings		—		—		16		—		16
Cash proceeds from equity component of convertible debt		—		159,952		—		—		159,952
Proceeds from issuance of intercompany debt		20,000		20,000		(40,000)		—		—
Paydown of intercompany debt		(66,000)		(20,000)		86,000		—		—
Distribution from subsidiary to parent		—		—		(67,000)		67,000		—
Other changes		(5,341)		—		—		—		(5,341)
Net cash (used for) provided by financing activities		(63,061)		300,293		(134,274)		69,980		172,938
Effect of exchange rate changes on cash and cash equivalents		—		—		1,841		—		1,841
Net increase (decrease) in cash and cash equivalents		7,431		(10,173)		(60,663)		—		(63,405)
Cash and cash equivalents, beginning of period		1,148		10,177		252,768		—		264,093
Cash and cash equivalents, end of period	$	8,579	$	4	$	192,105	$	—	$	200,688

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
Proceeds from sales of assets and insurance claims		—		—		5,448		—		5,448
Capital expenditures		—		—		(129,875)		—		(129,875)
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
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 (issuance) of intercompany debt		22,000		—		(22,000)		—		—
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)
Proceeds from short-term borrowings		—		—		(628)		—		(628)
Other changes		(3,190)		—		—		—		(3,190)
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