Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information


	March 31, 2018
					Other
	Nabors			Nabors	Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	474	$	44	$	366,521	$	—	$	367,039
Short-term investments		—		—		26,548		—		26,548
Accounts receivable, net		—		—		733,541		—		733,541
Inventory, net		—		—		174,308		—		174,308
Assets held for sale		—		—		36,404		—		36,404
Other current assets		50		—		156,483		—		156,533
Total current assets		524		44		1,493,805		—		1,494,373
Property, plant and equipment, net		—		—		5,969,063		—		5,969,063
Goodwill		—		—		172,982		—		172,982
Intercompany receivables		138,120		555,926		—		(694,046)		—
Investment in consolidated affiliates		2,592,942		5,555,826		3,803,983		(11,952,751)		—
Deferred income taxes		—		348,436		417,781		(348,436)		417,781
Other long-term assets		—		122		271,534		(26,025)		245,631
Total assets	$	2,731,586	$	6,460,354	$	12,129,148	$	(13,021,258)	$	8,299,830

	LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt	$	—	$	—	$	375	$	—	$	375
Trade accounts payable		127		36		309,720		—		309,883
Accrued liabilities		21,851		27,785		382,658		—		432,294
Income taxes payable		—		—		24,276		—		24,276
Total current liabilities		21,978		27,821		717,029		—		766,828
Long-term debt		—		4,282,185		—		(26,025)		4,256,160
Other long-term liabilities		—		16,291		305,361		—		321,652
Deferred income taxes		—		—		360,222		(348,436)		11,786
Intercompany payable		—		—		694,046		(694,046)		—
Total liabilities		21,978		4,326,297		2,076,658		(1,068,507)		5,356,426
Redeemable noncontrolling interest in subsidiary		—		—		206,396		—		206,396
Shareholders’ equity		2,709,608		2,134,057		9,818,694		(11,952,751)		2,709,608
Noncontrolling interest		—		—		27,400		—		27,400
Total equity		2,709,608		2,134,057		9,846,094		(11,952,751)		2,737,008
Total liabilities and equity	$	2,731,586	$	6,460,354	$	12,129,148	$	(13,021,258)	$	8,299,830

Condensed Consolidating Balance Sheets


	December 31, 2017
					Other
	Nabors		Nabors		Subsidiaries
	(Parent/		Delaware		(Non-		Consolidating
	Guarantor)		(Issuer)		Guarantors)		Adjustments		Total
	(In thousands)
	ASSETS
Current assets:
Cash and cash equivalents	$	1,091	$	44	$	335,862	$	—	$	336,997
Short-term investments		—		—		28,369		—		28,369
Accounts receivable, net		—		—		698,477		—		698,477
Inventory, net		—		—		166,307		—		166,307
Assets held for sale		—		—		37,052		—		37,052
Other current assets		50		56		180,028		—		180,134
Total current assets		1,141		100		1,446,095		—		1,447,336
Property, plant and equipment, net		—		—		6,109,565		—		6,109,565
Goodwill		—		—		173,226		—		173,226
Intercompany receivables		133,602		481,092		—		(614,694)		—
Investment in consolidated affiliates		2,799,320		5,531,799		3,799,933		(12,131,052)		—
Deferred tax assets		—		333,349		419,003		(333,349)		419,003
Other long-term assets		—		78		324,919		(72,143)		252,854
Total assets	$	2,934,063	$	6,346,418	$	12,272,741	$	(13,151,238)	$	8,401,984

	LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt	$	—	$	—	$	181	$	—	$	181
Trade accounts payable		147		124		363,145		—		363,416
Accrued liabilities		21,100		67,760		444,184		—		533,044
Income taxes payable		—		—		22,835		—		22,835
Total current liabilities		21,247		67,884		830,345		—		919,476
Long-term debt		—		4,099,909		—		(72,143)		4,027,766
Other long-term liabilities		—		16,284		285,349		—		301,633
Deferred income taxes		—		—		343,687		(333,349)		10,338
Intercompany payable		1,000		—		613,694		(614,694)		—
Total liabilities		22,247		4,184,077		2,073,075		(1,020,186)		5,259,213
Redeemable noncontrolling interest in subsidiary		—		—		203,998		—		203,998
Shareholders’ equity		2,911,816		2,162,341		9,968,711		(12,131,052)		2,911,816
Noncontrolling interest		—		—		26,957		—		26,957
Total equity		2,911,816		2,162,341		9,995,668		(12,131,052)		2,938,773
Total liabilities and equity	$	2,934,063	$	6,346,418	$	12,272,741	$	(13,151,238)	$	8,401,984

Condensed Consolidating Statements of Income (Loss)


	Three Months Ended March 31, 2018
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Revenues and other income:
Operating revenues	$	—	$	—	$	734,194	$	—	$	734,194
Earnings (losses) from unconsolidated affiliates		—		—		2		—		2
Earnings (losses) from consolidated affiliates		(141,825)		23,985		(26,525)		144,365		—
Investment income (loss)		2		—		3,444		(2,981)		465
Total revenues and other income		(141,823)		23,985		711,115		141,384		734,661
Costs and other deductions:
Direct costs		—		—		475,403		—		475,403
General and administrative expenses		2,383		242		72,115		(169)		74,571
Research and engineering		—		—		15,806		—		15,806
Depreciation and amortization		—		30		213,418		—		213,448
Interest expense		—		65,325		(3,939)		—		61,386
Other, net		(5)		—		13,925		169		14,089
Total costs and other deductions		2,378		65,597		786,728		—		854,703
Income (loss) from continuing operations before income taxes		(144,201)		(41,612)		(75,613)		141,384		(120,042)
Income tax expense (benefit)		—		(15,087)		38,632		—		23,545
Income (loss) from continuing operations, net of tax		(144,201)		(26,525)		(114,245)		141,384		(143,587)
Income (loss) from discontinued operations, net of tax		—		—		(75)		—		(75)
Net income (loss)		(144,201)		(26,525)		(114,320)		141,384		(143,662)
Less: Net (income) loss attributable to noncontrolling interest		—		—		(539)		—		(539)
Net income (loss) attributable to Nabors	$	(144,201)	$	(26,525)	$	(114,859)	$	141,384	$	(144,201)

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 Comprehensive Income (Loss)


	Three Months Ended March 31, 2018
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net income (loss) attributable to Nabors	$	(144,201)	$	(26,525)	$	(114,859)	$	141,384	$	(144,201)
Other comprehensive income (loss) before tax
Translation adjustment attributable to Nabors		(9,343)		—		(9,343)		9,343		(9,343)
Pension liability amortization and adjustment		54		54		108		(162)		54
Unrealized gains (losses) and amortization on cash flow hedges		140		140		140		(280)		140
Adoption of ASU No. 2016-01		(9,144)		—		(9,144)		9,144		(9,144)
Other comprehensive income (loss) before tax		(18,293)		194		(18,239)		18,045		(18,293)
Income tax expense (benefit) related to items of other comprehensive income (loss)		43		43		86		(129)		43
Other comprehensive income (loss), net of tax		(18,336)		151		(18,325)		18,174		(18,336)
Comprehensive income (loss) attributable to Nabors		(162,537)		(26,374)		(133,184)		159,558		(162,537)
Net income (loss) attributable to noncontrolling interest		—		—		539		—		539
Translation adjustment attributable to noncontrolling interest		—		—		(96)		—		(96)
Comprehensive income (loss) attributable to noncontrolling interest		—		—		443		—		443
Comprehensive income (loss)	$	(162,537)	$	(26,374)	$	(132,741)	$	159,558	$	(162,094)

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		3,860		(7)		3,860		(3,853)		3,860
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 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 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		3,860		(7)		3,860		(3,853)		3,860
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 Cash Flows


	Three Months Ended March 31, 2018
			Nabors		Other
	Nabors		Delaware		Subsidiaries
	(Parent/		(Issuer/		(Non-		Consolidating
	Guarantor)		Guarantor)		Guarantors)		Adjustments		Total
	(In thousands)
Net cash provided by (used for) operating activities	$	22,374	$	(98,371)	$	19,295	$	(24,981)	$	(81,683)
Cash flows from investing activities:
Purchases of investments		—		—		(676)		—		(676)
Sales and maturities of investments		—		—		1,148		—		1,148
Capital expenditures		—		—		(94,026)		—		(94,026)
Proceeds from sales of assets and insurance claims		—		—		3,076		—		3,076
Change in intercompany balances		—		(122,864)		122,864		—		—
Other changes in investing		—		—		1,034		—		1,034
Net cash provided by (used for) investing activities		—		(122,864)		33,420		—		(89,444)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts		—		—		(383)		—		(383)
Proceeds from issuance of long-term debt		—		800,000		—		—		800,000
Debt issuance costs		—		(12,928)		—		—		(12,928)
Proceeds from revolving credit facilities		—		615,000		—		—		615,000
Reduction of long-term debt		—		(460,837)		—		—		(460,837)
Dividends to shareholders		(20,129)		—		—		2,981		(17,148)
Proceeds from (payment for) commercial paper, net		—		(40,000)		—		—		(40,000)
Reduction in revolving credit facilities		—		(680,000)		—		—		(680,000)
Proceeds from (payments for) short-term borrowings		—		—		194		—		194
Proceeds from issuance of intercompany debt		20,000		—		(20,000)		—		—
Paydown of intercompany debt		(21,000)		—		21,000		—		—
Distribution from subsidiary to parent		—		—		(22,000)		22,000		—
Other changes		(1,862)		—		—		—		(1,862)
Net cash (used for) provided by financing activities		(22,991)		221,235		(21,189)		24,981		202,036
Effect of exchange rate changes on cash and cash equivalents		—		—		(867)		—		(867)
Net increase (decrease) in cash and cash equivalents		(617)		—		30,659		—		30,042
Cash and cash equivalents, beginning of period		1,091		44		335,862		—		336,997
Cash and cash equivalents, end of period	$	474	$	44	$	366,521	$	—	$	367,039

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 sale of assets and insurance claims		—		—		3,253		—		3,253
Change in intercompany balances		—		(198,035)		198,035		—		—
Other		—		—		(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)
Debt issuance costs		—		(10,439)		—		—		(10,439)
Proceeds from (payments for) issuance of common shares		8,300		—		—		—		8,300
Reduction in long-term debt		—		(57,670)		(112,821)		—		(170,491)
Dividends to shareholders		(20,020)		—		—		2,980		(17,040)
Proceeds from (payments for) issuance of intercompany debt		20,000		20,000		(40,000)		—		—
Purchase of capped call hedge transactions		—		(40,250)		—		—		(40,250)
Proceeds from issuance of long-term debt		—		411,200		—		—		411,200
Payments on term loan		—		(162,500)		—		—		(162,500)
Paydown of intercompany debt		(66,000)		(20,000)		86,000		—		—
Cash proceeds from equity component of convertible debt		—		159,952		—		—		159,952
Proceeds from (payments for) short-term borrowings		—		—		16		—		16
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