Segment Information

12 Months Ended

Dec. 31, 2021

Segment Information

Segment Information

Note 18 Segment Information

Our business consists of five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions and Rig Technologies. The accounting policies of the segments are the same as those described in Note 2—Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. We evaluate the performance of our segments based on several criteria, including adjusted operating income (loss).

The following table sets forth financial information with respect to our reportable operating segments:

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Operating revenues:
U.S. Drilling	$	669,656	$	713,057	$	1,240,936
Canada Drilling		39,336		54,753		68,274
International Drilling		1,043,197		1,131,673		1,324,142
Drilling Solutions		172,473		149,834		252,790
Rig Technologies		149,273		131,555		260,226
Other reconciling items (1)		(56,387)		(46,829)		(102,985)
Total	$	2,017,548	$	2,134,043	$	3,043,383

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Adjusted operating income (loss): (2)
U.S. Drilling	$	(76,492)	$	(96,176)	$	64,313
Canada Drilling		2,893		(11,766)		(14,483)
International Drilling		(40,117)		(56,205)		(8,903)
Drilling Solutions		32,771		6,167		59,465
Rig Technologies		158		(13,481)		(11,247)
Total segment adjusted operating income (loss)	$	(80,787)	$	(171,461)	$	89,145

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes:
Total segment adjusted operating income (loss) (2)	$	(80,787)	$	(171,461)	$	89,145
Other reconciling items (3)		(130,654)		(118,346)		(160,274)
Earnings (losses) from unconsolidated affiliates		—		—		(5)
Investment income (loss)		1,557		1,438		10,218
Interest expense		(171,476)		(206,274)		(204,311)
Gain/(loss) on debt buybacks and exchanges		13,423		228,274		11,468
Impairments and other charges		(66,731)		(410,631)		(301,939)
Other, net		(53,421)		(28,567)		(33,224)
Income (loss) from continuing operations before income taxes	$	(488,089)	$	(705,567)	$	(588,922)

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Depreciation and amortization
U.S. Drilling	$	326,361	$	398,326	$	419,680
Canada Drilling		11,604		24,784		29,766
International Drilling		323,431		377,599		372,883
Drilling Solutions		26,660		40,074		32,289
Rig Technologies		8,191		15,299		12,715
Other reconciling items (3)		(2,866)		(2,383)		8,758
Total	$	693,381	$	853,699	$	876,091

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Capital expenditures:
U.S. Drilling	$	53,875	$	44,606	$	184,705
Canada Drilling		2,938		2,018		5,020
International Drilling		173,078		127,888		209,728
Drilling Solutions		9,919		12,306		23,598
Rig Technologies		2,790		2,637		6,592
Other reconciling items (3)		1,089		251		(5,676)
Total	$	243,689	$	189,706	$	423,967

	December 31,
	2021		2020
	(In thousands)
Total assets:
U.S. Drilling	$	1,606,683	$	1,871,008
Canada Drilling		1,392		174,123
International Drilling		2,380,703		2,688,912
Drilling Solutions		65,899		100,278
Rig Technologies		190,489		225,954
Other reconciling items (3)		1,280,198		443,153
Total	$	5,525,364	$	5,503,428

(1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.

(2) Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), (gain)/loss on debt buybacks and exchanges, impairments and other charges and other, net. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table.

(3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures.

The following table sets forth financial information with respect to Nabors’ operations by geographic area based on the location of service provided:

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Operating revenues
U.S.	$	804,807	$	841,531	$	1,554,442
Outside the U.S.		1,212,741		1,292,512		1,488,941
	$	2,017,548	$	2,134,043	$	3,043,383
Property, plant and equipment, net:
U.S.	$	1,648,622	$	1,917,203	$	2,470,579
Outside the U.S.		1,683,876		2,068,504		2,459,970
	$	3,332,498	$	3,985,707	$	4,930,549
Goodwill:
U.S.	$	—	$	—	$	13,430
Outside the U.S.		—		—		14,950
	$	—	$	—	$	28,380

During the years ended December 31, 2021, 2020 and 2019, $645.0 million, $642.7 million and $696.4 million of our consolidated operating revenue was from Saudi Arabia. No other individual country outside of the U.S. was material to our consolidated operating revenue during any of the three periods presented.

One customer accounted for approximately 31%, 29% and 22% of our consolidated operating revenues during the years ended December 31, 2021, 2020 and 2019, respectively, and is included primarily in our International Drilling reportable segment.