Segment Information

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
	(In thousands)
Operating revenues:
U.S. Drilling	$	1,207,629	$	1,100,614	$	669,656
Canada Drilling		—		—		39,336
International Drilling		1,345,249		1,199,282		1,043,197
Drilling Solutions		301,757		243,349		172,473
Rig Technologies		242,768		195,129		149,273
Other reconciling items (1)		(91,422)		(84,608)		(56,387)
Total	$	3,005,981	$	2,653,766	$	2,017,548

	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Adjusted operating income (loss): (2)
U.S. Drilling	$	262,353	$	108,506	$	(76,492)
Canada Drilling		—		—		2,893
International Drilling		40,868		(879)		(40,117)
Drilling Solutions		110,957		77,868		32,771
Rig Technologies		19,529		8,906		158
Total segment adjusted operating income (loss)	$	433,707	$	194,401	$	(80,787)

	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss):
Net income (loss)	$	49,904	$	(307,218)	$	(543,690)
Income (loss) from discontinued operations, net of tax		—		—		(20)
Income (loss) from continuing operations, net of tax		49,904		(307,218)		(543,710)
Income tax expense (benefit)		79,220		61,536		55,621
Income (loss) before income taxes	$	129,124	$	(245,682)	$	(488,089)
Investment (income) loss		(43,820)		(14,992)		(1,557)
Interest expense		185,285		177,895		171,476
Impairments and other charges		—		—		66,731
Other, net		(726)		127,099		39,998
Other reconciling items (3)		163,844		150,081		130,654
Total segment adjusted operating income (loss) (2)	$	433,707	$	194,401	$	(80,787)

	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Depreciation and amortization
U.S. Drilling	$	271,308	$	311,759	$	326,361
Canada Drilling		—		—		11,604
International Drilling		347,784		329,335		323,431
Drilling Solutions		18,634		20,829		26,660
Rig Technologies		7,864		5,794		8,191
Other reconciling items (3)		(296)		(2,645)		(2,866)
Total	$	645,294	$	665,072	$	693,381

	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Capital expenditures:
U.S. Drilling	$	136,311	$	118,017	$	53,875
Canada Drilling		—		—		2,938
International Drilling		357,609		222,099		173,078
Drilling Solutions		25,721		19,946		9,919
Rig Technologies		21,229		15,660		2,790
Other reconciling items (3)		12,038		5,765		1,089
Total	$	552,908	$	381,487	$	243,689

	December 31,
	2023		2022
	(In thousands)
Total assets:
U.S. Drilling	$	1,239,765	$	1,389,459
International Drilling		2,227,308		2,273,766
Drilling Solutions		78,472		63,652
Rig Technologies		239,167		207,345
Other reconciling items (3)		1,493,253		795,632
Total	$	5,277,965	$	4,729,854

(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), 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) 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,
	2023		2022		2021
	(In thousands)
Operating revenues
U.S.	$	1,477,774	$	1,323,531	$	804,807
Outside the U.S.		1,528,207		1,330,235		1,212,741
	$	3,005,981	$	2,653,766	$	2,017,548
Property, plant and equipment, net:
U.S.	$	1,304,686	$	1,437,333	$	1,648,622
Outside the U.S.		1,594,042		1,588,767		1,699,876
	$	2,898,728	$	3,026,100	$	3,348,498

During the years ended December 31, 2023, 2022 and 2021, $821.1 million, $712.8 million and $645.0 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 26%, 26% and 31% of our consolidated operating revenues during the years ended December 31, 2023, 2022 and 2021, respectively, and is included primarily in our International Drilling reportable segment.