Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'NABORS INDUSTRIES LTD | ' |
Entity Central Index Key | '0001163739 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 297,444,279 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $326,881 | $389,915 |
Short-term investments | 97,886 | 117,218 |
Assets held for sale | 231,880 | 243,264 |
Accounts receivable, net | 1,454,368 | 1,399,543 |
Inventory | 194,371 | 209,793 |
Deferred income taxes | 133,667 | 121,316 |
Other current assets | 252,215 | 272,781 |
Total current assets | 2,691,268 | 2,753,830 |
Long-term investments and other receivables | 2,915 | 3,236 |
Property, plant and equipment, net | 8,690,759 | 8,597,813 |
Goodwill | 512,391 | 512,964 |
Investment in unconsolidated affiliates | 63,069 | 64,260 |
Other long-term assets | 226,671 | 227,708 |
Total assets | 12,187,073 | 12,159,811 |
Current liabilities: | ' | ' |
Current portion of debt | 5,296 | 10,185 |
Trade accounts payable | 631,015 | 545,512 |
Accrued liabilities | 584,748 | 697,093 |
Income taxes payable | 17,083 | 58,634 |
Total current liabilities | 1,238,142 | 1,311,424 |
Long-term debt | 3,812,476 | 3,904,117 |
Other long-term liabilities | 569,993 | 377,744 |
Deferred income taxes | 526,005 | 516,161 |
Total liabilities | 6,146,616 | 6,109,446 |
Commitments and contingencies (Note 9) | ' | ' |
Subsidiary preferred stock | 69,188 | 69,188 |
Shareholders' equity: | ' | ' |
Common shares, par value $0.001 per share: Authorized common shares 800,000; issued 325,772 and 323,711, respectively | 326 | 324 |
Capital in excess of par value | 2,401,614 | 2,392,585 |
Accumulated other comprehensive income | 160,466 | 216,140 |
Retained earnings | 4,342,690 | 4,304,664 |
Less: treasury shares, at cost, 28,414 common shares | -944,627 | -944,627 |
Total shareholders' equity | 5,960,469 | 5,969,086 |
Noncontrolling interest | 10,800 | 12,091 |
Total equity | 5,971,269 | 5,981,177 |
Total liabilities and equity | $12,187,073 | $12,159,811 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common shares, par value (in dollars per share) | $0.00 | $0.00 |
Common shares, shares authorized | 800,000 | 800,000 |
Common shares, shares issued | 325,772 | 323,711 |
Treasury shares, at cost | 28,414 | 28,414 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues and other income: | ' | ' |
Operating revenues | $1,589,618 | $1,535,478 |
Earnings (losses) from unconsolidated affiliates | -2,445 | 2,895 |
Investment income (loss) | 980 | 79,421 |
Total revenues and other income | 1,588,153 | 1,617,794 |
Costs and other deductions: | ' | ' |
Direct costs | 1,061,739 | 994,992 |
General and administrative expenses | 134,266 | 130,878 |
Depreciation and amortization | 282,127 | 269,365 |
Interest expense | 44,810 | 60,011 |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 1,476 | 59,737 |
Total costs and other deductions | 1,524,418 | 1,514,983 |
Income (loss) from continuing operations before income tax | 63,735 | 102,811 |
Income tax expense (benefit): | ' | ' |
Current | 13,658 | 18,829 |
Deferred | 350 | -8,975 |
Total income tax expense (benefit) | 14,008 | 9,854 |
Subsidiary preferred stock dividend | 750 | 750 |
Income (loss) from continuing operations, net of tax | 48,977 | 92,207 |
Income (loss) from discontinued operations, net of tax | 1,515 | 7,011 |
Net income (loss) | 50,492 | 99,218 |
Less: Net (income) loss attributable to noncontrolling interest | -573 | -97 |
Net income (loss) attributable to Nabors | $49,919 | $99,121 |
Earnings (losses) per share: | ' | ' |
Basic from continuing operations (in dollars per share) | $0.16 | $0.31 |
Basic from discontinued operations (in dollars per share) | $0.01 | $0.03 |
Total Basic (in dollars per share) | $0.17 | $0.34 |
Diluted from continuing operations (in dollars per share) | $0.16 | $0.31 |
Diluted from discontinued operations (in dollars per share) | ' | $0.02 |
Total Diluted (in dollars per share) | $0.16 | $0.33 |
Weighted-average number of common shares outstanding: | ' | ' |
Basic (in shares) | 296,210 | 291,687 |
Diluted (in shares) | 299,050 | 294,170 |
CONSOLIDATED_STATEMENTS_OF_OTH
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' |
Net income (loss) attributable to Nabors | $49,919 | $99,121 |
Other comprehensive income (loss), before tax: | ' | ' |
Translation adjustment attributable to Nabors | -36,594 | -23,265 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | -19,208 | 10,139 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | -75,974 |
Unrealized gains/(losses) on marketable securities | -19,208 | -65,835 |
Pension liability amortization and adjustment | 123 | 281 |
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 |
Other comprehensive income (loss), before tax | -55,526 | -88,666 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | -214 |
Other comprehensive income (loss), net of tax | -55,674 | -88,452 |
Comprehensive income (loss) attributable to Nabors | -5,755 | 10,669 |
Net income (loss) attributable to noncontrolling interest | -573 | -97 |
Translation adjustment attributable to noncontrolling interest | -481 | -1,414 |
Comprehensive income (loss) attributable to noncontrolling interest | 92 | -1,317 |
Comprehensive income (loss) | ($5,663) | $9,352 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $50,492 | $99,218 |
Adjustments to net income (loss): | ' | ' |
Depreciation and amortization | 282,349 | 273,423 |
Deferred income tax expense (benefit) | 451 | -5,371 |
Losses (gains) on long-lived assets, net | 3,517 | ' |
Losses (gains) on investments, net | -7 | -78,655 |
Share-based compensation | 10,685 | 32,853 |
Foreign currency transaction losses (gains), net | -3,293 | 4,316 |
Equity in (earnings) losses of unconsolidated affiliates, net of dividends | 2,445 | -2,896 |
Other | 910 | 12,827 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ' | ' |
Accounts receivable | -57,004 | -61,399 |
Inventory | 14,480 | 5,500 |
Other current assets | 4,742 | -33,829 |
Other long-term assets | 1,275 | 16,233 |
Trade accounts payable and accrued liabilities | -28,471 | -63,130 |
Income taxes payable | -26,036 | 11,327 |
Other long-term liabilities | 188,028 | -31,123 |
Net cash provided by operating activities | 444,563 | 179,295 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -286 | ' |
Sales and maturities of investments | 733 | 142,336 |
Cash paid for acquisition of businesses, net | -10,200 | -37,516 |
Investment in unconsolidated affiliates | -1,255 | -12 |
Capital expenditures | -396,465 | -235,539 |
Proceeds from sales of assets and insurance claims | 21,605 | 6,605 |
Net cash used for investing activities | -385,868 | -124,126 |
Cash flows from financing activities: | ' | ' |
Increase (decrease) in cash overdrafts | -1,822 | -1,975 |
Proceeds from (payments for) issuance of common shares | 4,931 | 1,027 |
Dividends to shareholders | -11,893 | ' |
Proceeds from (payment for) commercial paper, net | -39,594 | -12,891 |
Proceeds from revolving credit facilities | 15,000 | ' |
Reduction in revolving credit facilities | -67,500 | ' |
Other | -11,585 | 1,395 |
Net cash (used for) provided by financing activities | -112,463 | -12,444 |
Effect of exchange rate changes on cash and cash equivalents | -9,266 | -2,759 |
Net increase (decrease) in cash and cash equivalents | -63,034 | 39,966 |
Cash and cash equivalents, beginning of period | 389,915 | 524,922 |
Cash and cash equivalents, end of period | $326,881 | $564,888 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Shares | Capital in Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Shares | Non-controlling Interest |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 (As previously reported) | $5,957,117 | $319 | $2,337,244 | $431,595 | $4,120,398 | ($944,627) | $12,188 |
Balance at Dec. 31, 2012 | 5,957,117 | 319 | 2,337,244 | 340,143 | 4,211,850 | -944,627 | 12,188 |
Balance (in shares) at Dec. 31, 2012 (As previously reported) | ' | 318,813 | ' | ' | ' | ' | ' |
Balance (in shares) at Dec. 31, 2012 | ' | 318,813 | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' |
Revision | ' | ' | ' | -91,452 | 91,452 | ' | ' |
Net income (loss) | 99,218 | ' | ' | ' | 99,121 | ' | 97 |
Dividends to shareholders ($.04/share) | -12,891 | ' | ' | ' | -12,891 | ' | ' |
Other comprehensive income (loss), net of tax | -89,866 | ' | ' | -88,452 | ' | ' | -1,414 |
Issuance of common shares for stock options exercised | 1,027 | ' | 1,027 | ' | ' | ' | ' |
Issuance of common shares for stock options exercised (in shares) | 100 | 108 | ' | ' | ' | ' | ' |
Share-based compensation | 32,853 | ' | 32,853 | ' | ' | ' | ' |
Other | -2,773 | 4 | -2,777 | ' | ' | ' | ' |
Other (in shares) | ' | 4,098 | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2013 | 5,984,685 | 323 | 2,368,347 | 251,691 | 4,298,080 | -944,627 | 10,871 |
Balance (in shares) at Mar. 31, 2013 | ' | 323,019 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 (As previously reported) | 5,981,177 | 324 | 2,392,585 | 307,592 | 4,213,212 | -944,627 | 12,091 |
Balance at Dec. 31, 2013 | 5,981,177 | 324 | 2,392,585 | 216,140 | 4,304,664 | -944,627 | 12,091 |
Balance (in shares) at Dec. 31, 2013 (As previously reported) | ' | 323,711 | ' | ' | ' | ' | ' |
Balance (in shares) at Dec. 31, 2013 | ' | 323,711 | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' | ' | ' |
Revision | ' | ' | ' | -91,452 | 91,452 | ' | ' |
Net income (loss) | 50,492 | ' | ' | ' | 49,919 | ' | 573 |
Dividends to shareholders ($.04/share) | -11,893 | ' | ' | ' | -11,893 | ' | ' |
Other comprehensive income (loss), net of tax | -56,155 | ' | ' | -55,674 | ' | ' | -481 |
Issuance of common shares for stock options exercised | 4,931 | 1 | 4,930 | ' | ' | ' | ' |
Issuance of common shares for stock options exercised (in shares) | 500 | 517 | ' | ' | ' | ' | ' |
Share-based compensation | 10,685 | ' | 10,685 | ' | ' | ' | ' |
Other | -7,968 | 1 | -6,586 | ' | ' | ' | -1,383 |
Other (in shares) | ' | 1,544 | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2014 | $5,971,269 | $326 | $2,401,614 | $160,466 | $4,342,690 | ($944,627) | $10,800 |
Balance (in shares) at Mar. 31, 2014 | ' | 325,772 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ' | ' |
Dividends to shareholders (in dollars per share) | $0.04 | $0.04 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Nature of Operations | ' |
Nature of Operations | ' |
Note 1 Nature of Operations | |
Nabors has grown from a land drilling business centered in the United States and Canada to a global business aimed at optimizing the entire well life cycle, with operations on land and offshore in most of the major oil and gas markets in the world. The majority of our business is conducted through two business lines: | |
Drilling & Rig Services | |
This business line is comprised of our global drilling rig operations and drilling-related services, consisting of equipment manufacturing, instrumentation optimization software and directional drilling services. | |
Completion & Production Services | |
This business line is comprised of our operations involved in the completion, life-of-well maintenance and eventual plugging and abandonment of a well. These services include stimulation, coiled-tubing, cementing, wireline, workover, well-servicing and fluids management. | |
As a global provider of services for land-based and offshore oil and natural gas wells, Nabors’ fleet of rigs and equipment includes: | |
· 493 actively marketed land drilling rigs for oil and gas land drilling operations in the United States, Canada and over 20 other countries throughout the world. | |
· 445 actively marketed rigs for land well-servicing and workover services in the United States and approximately 98 rigs for land well-servicing and workover services in Canada. | |
· 39 platform, 7 jackup and 4 barge rigs actively marketed in the United States and multiple international markets. | |
· Approximately 800,000 hydraulic horsepower for hydraulic fracturing, cementing, nitrogen and acid pressure pumping services in key basins throughout the United States and Canada. | |
In addition: | |
· We offer a wide range of ancillary well-site services, including engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, rig instrumentation, data collection and other support services in select U.S. and international markets. | |
· We manufacture and lease or sell top drives for a broad range of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling equipment and rig reporting software. | |
· We have a 51% ownership interest in a joint venture in Saudi Arabia, which owns and actively markets 5 rigs in addition to the rigs we lease to the joint venture. | |
Unless the context requires otherwise, references in this report to “we,” “us,” “our,” “the Company,” or “Nabors” mean Nabors Industries Ltd., together with our subsidiaries where the context requires, including Nabors Industries, Inc., a Delaware corporation (“Nabors Delaware”), our wholly owned subsidiary. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Note 2 Summary of Significant Accounting Policies | ||||||||
Interim Financial Information | ||||||||
The unaudited consolidated financial statements of Nabors are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted. Therefore, these financial statements should be read along with our annual report on Form 10-K for the year ended December 31, 2013 (“2013 Annual Report”). In management’s opinion, the consolidated financial statements contain all adjustments necessary to present fairly our financial position as of March 31, 2014, as well as the results of our operations, other comprehensive income, our cash flows and changes in equity for the three months ended March 31, 2014 and 2013, in accordance with GAAP. Interim results for the three months ended March 31, 2014 may not be indicative of results that will be realized for the full year ending December 31, 2014. | ||||||||
Our independent registered public accounting firm has reviewed and issued a report on these consolidated interim financial statements in accordance with standards established by the Public Company Accounting Oversight Board. Pursuant to Rule 436(c) under the Securities Act of 1933, as amended (the “Securities Act”), this report should not be considered a part of any registration statement prepared or certified within the meanings of Sections 7 and 11 of such Act. | ||||||||
Prior Period Revision | ||||||||
During the first quarter of 2014, we determined that we had incorrectly applied certain aspects of ASC 830 - Foreign Currency Matters with respect to the recording of foreign currency gains or losses on certain intercompany transactions. GAAP requires the recognition of foreign currency gains or losses on U.S. dollar denominated intercompany balances of our subsidiaries that have a functional currency other than the U.S. dollar. The primary years impacted were 2002 and 2009, which is the period over which a series of intercompany loans were outstanding between our Canadian subsidiary, whose functional currency is the Canadian dollar, and other subsidiaries whose functional currencies are the U.S. dollar. | ||||||||
The net effect understated net income for periods before 2009 by approximately $91.5 million, due to foreign currency gains that should have been recorded through net income, rather than through Cumulative Translation Adjustments (a component of Accumulated Other Comprehensive Income). The correction of this error resulted in a revision to increase the beginning Retained Earnings at January 1, 2010 by approximately $91.5 million with the offset being a decrease to Accumulated Other Comprehensive Income, both of which are components of Shareholders’ Equity. There was no other material impact to our assets, liabilities, cash flows or profit and loss for any periods presented. We do not consider this revision material to any period. | ||||||||
Principles of Consolidation | ||||||||
Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries required to be consolidated under GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. | ||||||||
Investments in operating entities where we have the ability to exert significant influence, but where we do not control operating and financial policies, are accounted for using the equity method. Our share of the net income (loss) of these entities is recorded as earnings (losses) from unconsolidated affiliates in our consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our consolidated balance sheets. | ||||||||
Inventory | ||||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out or weighted-average cost methods and includes the cost of materials, labor and manufacturing overhead. Inventory included the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 121,780 | $ | 128,606 | ||||
Work-in-progress | 27,009 | 26,762 | ||||||
Finished goods | 45,582 | 54,425 | ||||||
$ | 194,371 | $ | 209,793 | |||||
Goodwill | ||||||||
We review goodwill for impairment annually during the second quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the carrying amount of such goodwill and intangible assets exceed their fair value. We initially assess goodwill for impairment based on qualitative factors to determine whether to perform the two-step annual goodwill impairment test, a Level 3 fair value measurement. After our qualitative assessment, step one of the impairment test compares the estimated fair value of the reporting unit to its carrying amount. If the carrying amount exceeds the fair value, a second step is required to measure the goodwill impairment loss. The second step compares the implied fair value of the reporting unit’s goodwill to its carrying amount. If the carrying amount exceeds the implied fair value, an impairment loss is recognized in an amount equal to the excess. | ||||||||
Our estimated fair values of our reporting units incorporate judgment and the use of estimates by management. Potential factors requiring assessment include a further or sustained decline in our stock price, declines in oil and natural gas prices, a variance in results of operations from forecasts, a change in operating strategy for particular assets and additional transactions in the oil and gas industry. Another factor in determining whether impairment has occurred is the relationship between our market capitalization and our book value. As part of our annual review, we compare the sum of our reporting units’ estimated fair value, which includes the estimated fair value of non-operating assets and liabilities, less debt, to our market capitalization and assess the reasonableness of our estimated fair value. Any of the above-mentioned factors may cause us to re-evaluate goodwill during any quarter throughout the year. |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Short-term Investments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Cash and Cash Equivalents and Short-term Investments | ' | |||||||||||||||||||
Cash and Cash Equivalents and Short-term Investments | ' | |||||||||||||||||||
Note 3 Cash and Cash Equivalents and Short-term Investments | ||||||||||||||||||||
Certain information related to our cash and cash equivalents and short-term investments follows: | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Gross | Gross | Fair Value | Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | |||||||||||||||||
Holding | Holding | Holding | Holding | |||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 326,881 | $ | — | $ | — | $ | 389,915 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||||||
Available-for-sale equity securities | 77,591 | 49,045 | — | 96,942 | 68,395 | — | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Corporate debt securities | 19,525 | 4,252 | — | 19,388 | 4,122 | — | ||||||||||||||
Mortgage-backed debt securities | 209 | 11 | — | 210 | 11 | — | ||||||||||||||
Mortgage-CMO debt securities | 20 | — | (1 | ) | 20 | — | (2 | ) | ||||||||||||
Asset-backed debt securities | 541 | 1 | (37 | ) | 658 | 2 | (54 | ) | ||||||||||||
Total available-for-sale debt securities | 20,295 | 4,264 | (38 | ) | 20,276 | 4,135 | (56 | ) | ||||||||||||
Total available-for-sale securities | 97,886 | 53,309 | (38 | ) | 117,218 | 72,530 | (56 | ) | ||||||||||||
Total short-term investments | 97,886 | 53,309 | (38 | ) | 117,218 | 72,530 | (56 | ) | ||||||||||||
Total cash, cash equivalents and short-term investments | $ | 424,767 | $ | 53,309 | $ | (38 | ) | $ | 507,133 | $ | 72,530 | $ | (56 | ) | ||||||
Certain information related to the gross unrealized losses of our cash and cash equivalents and short-term investments follows: | ||||||||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | |||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Losses | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale debt securities: (1) | ||||||||||||||||||||
Mortgage-CMO debt securities | $ | 20 | $ | 1 | $ | — | $ | — | ||||||||||||
Asset-backed debt securities | — | — | 361 | 37 | ||||||||||||||||
Total available-for-sale debt securities | 20 | 1 | 361 | 37 | ||||||||||||||||
Total | $ | 20 | $ | 1 | $ | 361 | $ | 37 | ||||||||||||
(1) Our unrealized losses on available-for-sale debt securities held for more than one year are comprised of various types of securities. Each of these securities has a rating ranging from “A” to “AAA” from Standard & Poor’s and ranging from “A2” to “Aaa” from Moody’s Investors Service and is considered to be of high credit quality. In each case, we do not intend to sell these investments, and it is less likely than not that we will be required to sell them to satisfy our own cash flow and working capital requirements. We believe that we will be able to collect all amounts due according to the contractual terms of each investment and, therefore, do not consider the decline in value of these investments to be other-than-temporary at March 31, 2014. | ||||||||||||||||||||
The estimated fair values of our corporate, mortgage-backed, mortgage-CMO and asset-backed debt securities at March 31, 2014, classified by time to contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to repay obligations without prepayment penalties and we may elect to sell the securities prior to the contractual maturity date. | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Due in one year or less | $ | — | ||||||||||||||||||
Due after one year through five years | 15,525 | |||||||||||||||||||
Due in more than five years | 4,770 | |||||||||||||||||||
Total debt securities | $ | 20,295 | ||||||||||||||||||
Certain information regarding our debt and equity securities is presented below: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
Proceeds from sales and maturities | $ | 135 | $ | 86,601 | ||||||||||||||||
Realized gains (losses), net | $ | — | $ | 75,974 |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note 4 Fair Value Measurements | ||||||||||||||
The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2014. Our debt securities could transfer into or out of a Level 1 or 2 measure depending on the availability of independent and current pricing at the end of each quarter. During the three months ended March 31, 2014, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||
Fair Value as of March 31, 2014 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Short-term investments: | ||||||||||||||
Available-for-sale equity securities (energy industry) | $ | 76,729 | $ | 862 | $ | — | $ | 77,591 | ||||||
Available-for-sale debt securities: | ||||||||||||||
Corporate debt securities | — | 19,525 | — | 19,525 | ||||||||||
Mortgage-backed debt securities | — | 209 | — | 209 | ||||||||||
Mortgage-CMO debt securities | — | 20 | — | 20 | ||||||||||
Asset-backed debt securities | 541 | — | — | 541 | ||||||||||
Total short-term investments | $ | 77,270 | $ | 20,616 | $ | — | $ | 97,886 | ||||||
Nonrecurring Fair Value Measurements | ||||||||||||||
Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to assets held-for-sale, goodwill, intangible assets and other long-lived assets, assets acquired and liabilities assumed in a business combination, asset retirement obligations and our pipeline contractual commitment. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The fair value of our financial instruments has been estimated in accordance with GAAP. The fair value of our long-term debt, revolving credit facility, commercial paper and subsidiary preferred stock is estimated based on quoted market prices or prices quoted from third-party financial institutions. The carrying and fair values of these liabilities were as follows: | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Value | Value | Value | Value | |||||||||||
(In thousands) | ||||||||||||||
2.35% senior notes due September 2016 | $ | 349,836 | $ | 357,851 | $ | 349,820 | $ | 354,694 | ||||||
6.15% senior notes due February 2018 | 970,234 | 1,102,511 | 969,928 | 1,097,480 | ||||||||||
9.25% senior notes due January 2019 | 339,607 | 427,966 | 339,607 | 428,733 | ||||||||||
5.00% senior notes due September 2020 | 698,208 | 748,720 | 697,947 | 731,955 | ||||||||||
4.625% senior notes due September 2021 | 698,024 | 723,030 | 698,148 | 709,793 | ||||||||||
5.10% senior notes due September 2023 | 348,797 | 362,250 | 348,765 | 349,731 | ||||||||||
Subsidiary preferred stock | 69,188 | 69,000 | 69,188 | 69,000 | ||||||||||
Revolving credit facility | 117,500 | 117,500 | 170,000 | 170,000 | ||||||||||
Commercial paper | 290,250 | 290,250 | 329,844 | 329,844 | ||||||||||
Other | 5,316 | 5,316 | 10,243 | 10,243 | ||||||||||
Total | $ | 3,886,960 | $ | 4,204,394 | $ | 3,983,490 | $ | 4,251,473 | ||||||
The fair values of our cash equivalents, trade receivables and trade payables approximate their carrying values due to the short-term nature of these instruments. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Share-Based Compensation | ' | |||||||
Share-Based Compensation | ' | |||||||
Note 5 Share-Based Compensation | ||||||||
We have several share-based employee and director compensation plans, which are more fully described in Note 9 — Share-Based Compensation in our 2013 Annual Report. Total share-based compensation expense, which includes stock options and restricted stock, totaled $10.7 million and $32.9 million for the three months ended March 31, 2014 and 2013, respectively. Share-based compensation expense has been allocated to our various operating segments. See Note 13 — Segment Information. | ||||||||
Stock Options | ||||||||
The total intrinsic value of stock options exercised during the three months ended March 31, 2014 and 2013 was $6.0 million and $0.7 million, respectively. The total fair value of stock options that vested during the three months ended March 31, 2014 and 2013 was $1.5 million and $3.8 million, respectively. | ||||||||
Restricted Stock | ||||||||
During the three months ended March 31, 2014 and 2013, we awarded 1,106,919 and 4,061,027 shares of restricted stock, respectively, vesting over periods of up to four years, to our employees and directors. These awards had an aggregate value at their date of grant of $25.2 million and $66.8 million, respectively. The fair value of restricted stock that vested during the three months ended March 31, 2014 and 2013 was $22.4 million and $35.5 million, respectively. | ||||||||
Restricted Stock Based on Performance | ||||||||
During the three months ended March 31, 2014, we awarded 362,311 shares of restricted stock, vesting over a period of three years to some of our executives. The performance awards granted were based upon achievement of specific financial or operational objectives. The number of shares granted was determined by the number of performance goals achieved during the period January 1, 2013 through December 31, 2013. | ||||||||
Our performance awards based on performance conditions are liability-classified awards until shares are granted, of which our accrued liabilities included $0.4 million at March 31, 2014 for the performance period beginning January 1, 2014 through December 31, 2014. The fair value of these awards are estimated at each reporting period, based on internal metrics and marked to market. | ||||||||
Restricted Stock Based on Market Conditions | ||||||||
During the three months ended March 31, 2014 and 2013, we awarded 395,550 and 353,933 shares of restricted stock, respectively, which will vest based on our performance compared to our peer group over a three-year period. These awards had an aggregate value at their date of grant of $4.5 million and $3.7 million, respectively, after consideration of all assumptions. The grant date fair value of these awards was based on a Monte Carlo model, using the following assumptions during the three months ended March 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Risk free interest rate | 0.8 | % | 0.41 | % | ||||
Expected volatility | 40 | % | 46 | % | ||||
Closing stock price | $ | 18.19 | $ | 16.53 | ||||
Expected term (in years) | 2.97 years | 2.82 years | ||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
Note 6 Debt | ||||||||
Debt consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
2.35% senior notes due September 2016 | $ | 349,836 | $ | 349,820 | ||||
6.15% senior notes due February 2018 | 970,234 | 969,928 | ||||||
9.25% senior notes due January 2019 | 339,607 | 339,607 | ||||||
5.00% senior notes due September 2020 | 698,208 | 697,947 | ||||||
4.625% senior notes due September 2021 | 698,024 | 698,148 | ||||||
5.10% senior notes due September 2023 | 348,797 | 348,765 | ||||||
Revolving credit facility | 117,500 | 170,000 | ||||||
Commercial paper | 290,250 | 329,844 | ||||||
Other | 5,316 | 10,243 | ||||||
$ | 3,817,772 | $ | 3,914,302 | |||||
Less: current portion | 5,296 | 10,185 | ||||||
$ | 3,812,476 | $ | 3,904,117 | |||||
Commercial Paper Program | ||||||||
As of March 31, 2014, we had approximately $290.3 million of commercial paper outstanding. The weighted average interest rate on borrowings at March 31, 2014 was 0.33%. Our commercial paper borrowings are classified as long-term debt because the borrowings are fully supported by availability under our revolving credit facility, which matures as currently structured in November 2017, more than one year from now. | ||||||||
Revolving Credit Facility | ||||||||
As of March 31, 2014, we had approximately $117.5 million of borrowings outstanding. The weighted average interest rate on borrowings at March 31, 2014 was 1.46%. The revolving credit facility contains various covenants and restrictive provisions that limit our ability to incur additional indebtedness, make investments or loans and create liens and require us to maintain a net funded indebtedness to total capitalization ratio, as defined in each agreement. We were in compliance with all covenants under the agreement at March 31, 2014. If we fail to perform our obligations under the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable. |
Common_Shares
Common Shares | 3 Months Ended |
Mar. 31, 2014 | |
Common Shares | ' |
Common Shares | ' |
Note 7 Common Shares | |
During the three months ended March 31, 2014 and 2013, our employees exercised vested options to acquire 0.5 million and 0.1 million of our common shares, respectively, resulting in proceeds of $4.9 million and $1.0 million respectively. During the three months ended March 31, 2014 and 2013, we withheld 0.3 million and 0.2 million, respectively, of our common shares with a fair value of $6.6 million and $2.8 million, respectively, to satisfy tax withholding obligations in connection with the vesting of all stock awards. | |
On February 21, 2014, a cash dividend of $0.04 per share was declared for shareholders of record on March 10, 2014. The dividend was paid on March 31, 2014 in the amount of $11.9 million and was charged to retained earnings in our consolidated statement of changes in equity for the three months ended March 31, 2014. |
Subsidiary_Preferred_Stock
Subsidiary Preferred Stock | 3 Months Ended |
Mar. 31, 2014 | |
Subsidiary Preferred Stock | ' |
Subsidiary Preferred Stock | ' |
Note 8 Subsidiary Preferred Stock | |
As of March 31, 2014, dividends on outstanding shares of preferred stock had been declared and paid in full with respect to each quarter since their issuance. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Note 9 Commitments and Contingencies | |||||||||||||||||
Commitments | |||||||||||||||||
Employment Agreement | |||||||||||||||||
Effective March 3, 2014, we entered an employment agreement with William Restrepo, our Chief Financial Officer. The employment agreement provides for an initial term through December 2017, with automatic one-year extensions at the end of each term, subject to a 365-day notice of termination provided within the agreement. Mr. Restrepo’s annual base salary was set at $0.65 million. In addition, the employment agreement provides for an annual bonus targeted at base salary, with a cap of twice that amount, based on the achievement of one or more annual financial and operational performance goals, as determined by the Compensation Committee of our Board of Directors. | |||||||||||||||||
The employment agreement also provides for long-term equity incentive awards. Mr. Restrepo will receive awards of restricted stock that may or may not vest depending upon the Company’s performance relative to a Performance Peer Group (as defined) over a three-year period (“TSR Shares”). The agreement provides that the target number of TSR Shares that will vest is valued at 100% of base salary, with a maximum number of TSR Shares valued at twice that amount. In addition, Mr. Restrepo’s employment agreement provides for long-term equity incentive awards in the form of restricted stock based upon the achievement of specific financial or operational objectives (“Performance Shares”). Once earned, Performance Shares are then subject to three-year vesting requirements. Performance Shares are targeted at 100% of base salary, with a maximum award of twice that amount, and are also subject to a minimum threshold before any amount can be earned. | |||||||||||||||||
As an inducement to join the Company and to make him whole for certain foregone amounts at his prior employer, Mr. Restrepo received an award of restricted stock with a grant-date fair value of $4.9 million. The award vests over four years. | |||||||||||||||||
Mr. Restrepo’s employment agreement provides for severance payments in the event the agreement is terminated, including in connection with a change in control (as defined in the employment agreement), (i) by the Company prior to the expiration date of the agreement for any reason other than for cause, or (ii) by Mr. Restrepo for constructive termination without cause, each as defined in the employment agreement. Mr. Restrepo would have the right to receive within 30 days of a termination without cause or constructive termination without cause, 2.99 times the sum of the average of his base salary and annual bonus during the three fiscal years preceding the termination (or, if employed less than three completed fiscal years, his then-current base salary and target annual bonus would be used for the years not employed). | |||||||||||||||||
Mr. Restrepo’s employment agreement also provides that, upon death, disability, termination without cause, or constructive termination without cause, he would receive (a) any unvested stock options and restricted stock outstanding (except for TSR Shares), which will immediately and fully vest; (b) any amounts earned, accrued or owing to him but not yet paid (including executive benefits, life insurance, disability benefits and reimbursement of expenses and perquisites); (c) continued participation in medical, dental and life insurance coverage; and (d) certain perquisites and other or additional benefits in accordance with applicable plans and programs of Nabors. In addition, under the employment agreement, any unvested TSR Shares at the time of termination for these reasons will vest at target levels. | |||||||||||||||||
Contingencies | |||||||||||||||||
Income Tax | |||||||||||||||||
We are subject to income taxes in the United States and numerous other jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are regularly audited by tax authorities. Although we believe our tax estimates are reasonable, the final determination of tax audits and any related litigation could be materially different than what is reflected in income tax provisions and accruals. An audit or litigation could materially affect our financial position, income tax provision, net income, or cash flows in the period or periods challenged. | |||||||||||||||||
It is possible that future changes to tax laws (including tax treaties) could impact our ability to realize the tax savings recorded to date as well as future tax savings, resulting from our 2002 corporate reorganization. See Note 14 — Income Taxes to our 2013 Annual Report for additional discussion. | |||||||||||||||||
In 2006, Nabors Drilling International Limited, one of our wholly owned Bermuda subsidiaries (“NDIL”), received a Notice of Assessment from Mexico’s federal tax authorities in connection with the audit of NDIL’s Mexico branch for 2003. The notice proposed to deny depreciation expense deductions relating to drilling rigs operating in Mexico in 2003. The notice also proposed to deny a deduction for payments made to an affiliated company for the procurement of labor services in Mexico. NDIL’s Mexico branch took similar deductions for depreciation and labor expenses from 2004 to 2008. In 2009, the government proposed similar assessments against the Mexico branch of another wholly owned Bermuda subsidiary, Nabors Drilling International II Ltd. (“NDIL II”) for 2006. We anticipate that a similar assessment will eventually be proposed against NDIL through 2008 and against NDIL II for 2007 to 2010. Although we previously concluded that the deductions were appropriate for each of the years, a reserve has been recorded in accordance with GAAP. During 2013, we reached a negotiated settlement for NDIL’s 2003, 2005 and 2006 tax years (the statute of limitations had previously expired on the 2004 tax year) and NDIL II’s 2006 tax year. Accordingly, the corresponding reserves were reduced by approximately $20 million during 2013. After this settlement, the remaining amounts assessed or expected to be assessed in the aggregate, range from $30 million to $35 million, for which reserves are recorded in accordance with GAAP. If we ultimately do not prevail, we would be required to recognize additional tax expense for any amount in excess of the current reserve. | |||||||||||||||||
Self-Insurance | |||||||||||||||||
We estimate the level of our liability related to insurance and record reserves for these amounts in our consolidated financial statements. Our estimates are based on the facts and circumstances specific to existing claims and our past experience with similar claims. These loss estimates and accruals recorded in our financial statements for claims have historically been reasonable in light of the actual amount of claims paid and are actuarially supported. Although we believe our insurance coverage and reserve estimates are reasonable, a significant accident or other event that is not fully covered by insurance or contractual indemnity could occur and could materially affect our financial position and results of operations for a particular period. | |||||||||||||||||
We self-insure for certain losses relating to workers’ compensation, employers’ liability, general liability, automobile liability and property damage. Effective April 1, 2014, some of our workers’ compensation claims, employers’ liability and marine employers’ liability claims are subject to a $3.0 million per-occurrence deductible; additionally, some of our automobile liability claims are subject to a $2.5 million deductible. General liability claims remain subject to a $5.0 million per-occurrence deductible. | |||||||||||||||||
In addition, we are subject to a $5.0 million deductible for land rigs and for offshore rigs. This applies to all kinds of risks of physical damage except for named windstorms in the U.S. Gulf of Mexico for which we are self-insured. | |||||||||||||||||
Litigation | |||||||||||||||||
Nabors and its subsidiaries are defendants or otherwise involved in a number of lawsuits in the ordinary course of business. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can be estimated. We record our best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the lawsuits or claims. As additional information becomes available, we assess the potential liability related to our pending litigation and claims and revise our estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ from our estimates. For matters where an unfavorable outcome is reasonably possible and significant, we disclose the nature of the matter and a range of potential exposure, unless an estimate cannot be made at the time of disclosure. In the opinion of management and based on liability accruals provided, our ultimate exposure with respect to these pending lawsuits and claims is not expected to have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our results of operations for a particular reporting period. | |||||||||||||||||
In 2009, the Court of Ouargla entered a judgment of approximately $17.7 million (at current exchange rates) against us relating to alleged customs infractions in Algeria. We believe we did not receive proper notice of the judicial proceedings, and that the amount of the judgment was excessive in any case. We asserted the lack of legally required notice as a basis for challenging the judgment on appeal to the Algeria Supreme Court. In May 2012, that court reversed the lower court and remanded the case to the Ouargla Court of Appeals for treatment consistent with the Supreme Court’s ruling. In January 2013, the Ouargla Court of Appeals reinstated the judgment. We have again lodged an appeal to the Algeria Supreme Court, asserting the same challenges as before. Based upon our understanding of applicable law and precedent, we continue to believe that we will prevail. Although the appeal remains ongoing at this time, the Hassi Messaoud customs office recently initiated efforts to collect the judgment prior to the Supreme Court’s decision in the case. As a result, we paid approximately $3.1 million and posted security of approximately $1.33 million to suspend those collection efforts and to enter into a formal negotiations process with the customs authority. We have recorded a reserve in the amount of the posted security. If we are ultimately required to pay a fine or judgment related to this matter, the resulting loss could be up to $13.3 million in excess of amounts accrued. | |||||||||||||||||
In March 2011, the Court of Ouargla entered a judgment of approximately $34.8 million (at current exchange rates) against us relating to alleged violations of Algeria’s foreign currency exchange controls, which require that goods and services provided locally be invoiced and paid in local currency. The case relates to certain foreign currency payments made to us by CEPSA, a Spanish operator, for wells drilled in 2006. Approximately $7.5 million of the total contract amount was paid offshore in foreign currency, and approximately $3.2 million was paid in local currency. The judgment includes fines and penalties of approximately four times the amount at issue. We have appealed the ruling based on our understanding that the law in question applies only to resident entities incorporated under Algerian law. An intermediate court of appeals has upheld the lower court’s ruling, and we have appealed the matter to the Algeria Supreme Court. While our payments were consistent with our historical operations in the country, and, we believe, those of other multinational corporations there, as well as interpretations of the law by the Central Bank of Algeria, the ultimate resolution of this matter could result in a loss of up to $26.8 million in excess of amounts accrued. | |||||||||||||||||
In 2012, Nabors Global Holdings II Limited (“NGH2L”) signed a contract with ERG Resources, LLC (“ERG”) relating to the sale of all of the Class A shares of NGH2L’s wholly owned subsidiary, Ramshorn International Limited, an oil and gas exploration company. When ERG failed to meet its closing obligations, NGH2L terminated the transaction on March 19, 2012 and, as contemplated in the agreement, retained ERG’s $3.0 million escrow deposit. ERG filed suit the following day in the 61st Judicial District Court of Harris County, Texas, in a case styled ERG Resources, LLC v. Nabors Global Holdings II Limited, Ramshorn International Limited, and Parex Resources, Inc.; Cause No. 2012-16446, seeking injunctive relief to halt any sale of the shares to a third party, specifically naming as defendant Parex Resources, Inc. (“Parex”). The lawsuit also seeks monetary damages of up to $750.0 million based on an alleged breach of contract by NGH2L and alleged tortious interference with contractual relations by Parex. Nabors successfully defeated ERG’s effort to obtain a temporary restraining order from the Texas court on March 20, 2012. Nabors completed the sale of Ramshorn’s Class A shares to a Parex affiliate in April 2012, which mooted ERG’s application for a temporary injunction. The lawsuit is staid, pending further court actions. ERG retains its causes of action for monetary damages, but Nabors believes the claims are foreclosed by the terms of the agreement and are without factual or legal merit. Although we are vigorously defending the lawsuit, its ultimate outcome cannot be determined at this time. | |||||||||||||||||
Off-Balance Sheet Arrangements (Including Guarantees) | |||||||||||||||||
We are a party to some transactions, agreements or other contractual arrangements defined as “off-balance sheet arrangements” that could have a material future effect on our financial position, results of operations, liquidity and capital resources. The most significant of these off-balance sheet arrangements involve agreements and obligations under which we provide financial or performance assurance to third parties. Certain of these agreements serve as guarantees, including standby letters of credit issued on behalf of insurance carriers in conjunction with our workers’ compensation insurance program and other financial surety instruments such as bonds. In addition, we have provided indemnifications, which serve as guarantees, to some third parties. These guarantees include indemnification provided by Nabors to our share transfer agent and our insurance carriers. We are not able to estimate the potential future maximum payments that might be due under our indemnification guarantees. | |||||||||||||||||
Management believes the likelihood that we would be required to perform or otherwise incur any material losses associated with any of these guarantees is remote. The following table summarizes the total maximum amount of financial guarantees issued by Nabors: | |||||||||||||||||
Maximum Amount | |||||||||||||||||
Remainder of | 2015 | 2016 | Thereafter | Total | |||||||||||||
2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Financial standby letters of credit and other financial surety instruments | $ | 115,018 | $ | 40,408 | $ | — | $ | 19 | $ | 155,445 | |||||||
Earnings_Losses_Per_Share
Earnings (Losses) Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings (Losses) Per Share | ' | |||||||
Earnings (Losses) Per Share | ' | |||||||
Note 10 Earnings (Losses) Per Share | ||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands, except per share amounts) | ||||||||
Net income (loss) (numerator): | ||||||||
Income (loss) from continuing operations, net of tax | $ | 48,977 | $ | 92,207 | ||||
Less: net (income) loss attributable to noncontrolling interest | (573 | ) | (97 | ) | ||||
Less: (earnings) losses allocated to unvested shareholders | (733 | ) | (814 | ) | ||||
Adjusted income (loss) from continuing operations - basic and diluted | $ | 47,671 | $ | 91,296 | ||||
Income (loss) from discontinued operations, net of tax | $ | 1,515 | $ | 7,011 | ||||
Earnings (losses) per share: | ||||||||
Basic from continuing operations | $ | 0.16 | $ | 0.31 | ||||
Basic from discontinued operations | 0.01 | 0.03 | ||||||
Total Basic | $ | 0.17 | $ | 0.34 | ||||
Diluted from continuing operations | $ | 0.16 | $ | 0.31 | ||||
Diluted from discontinued operations | — | 0.02 | ||||||
Total Diluted | $ | 0.16 | $ | 0.33 | ||||
Shares (denominator): | ||||||||
Weighted-average number of shares outstanding - basic | 296,210 | 291,687 | ||||||
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method | 2,840 | 2,483 | ||||||
Weighted-average number of shares outstanding - diluted | 299,050 | 294,170 | ||||||
For all periods presented, the computation of diluted earnings (losses) per share excludes outstanding stock options with exercise prices greater than the average market price of our common shares, because their inclusion would be anti-dilutive and because they are not considered participating securities. The average number of options and warrants that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share were 7,853,509 and 12,452,263 shares during the three months ended March 31, 2014 and 2013, respectively. In any period during which the average market price of our common shares exceeds the exercise prices of these stock options and warrants, such stock options and warrants will be included in our diluted earnings (losses) per share computation using the if-converted method of accounting. Restricted stock is included in our basic and diluted earnings (losses) per share computation using the two-class method of accounting in all periods because such stock is considered participating securities. |
Supplemental_Balance_Sheet_Inc
Supplemental Balance Sheet, Income Statement and Cash Flow Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Supplemental Balance Sheet, Income Statement and Cash Flow Information | ' | ||||||||||||||||
Supplemental Balance Sheet, Income Statement and Cash Flow Information | ' | ||||||||||||||||
Note 11 Supplemental Balance Sheet, Income Statement and Cash Flow Information | |||||||||||||||||
Accrued liabilities include the following: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Accrued compensation | $ | 158,676 | $ | 172,803 | |||||||||||||
Deferred revenue | 234,900 | 202,918 | |||||||||||||||
Other taxes payable | 41,047 | 76,781 | |||||||||||||||
Workers’ compensation liabilities | 29,459 | 29,459 | |||||||||||||||
Interest payable | 18,284 | 64,728 | |||||||||||||||
Warranty accrual | 4,240 | 4,653 | |||||||||||||||
Litigation reserves | 24,774 | 30,784 | |||||||||||||||
Current liability to discontinued operations | 29,381 | 64,404 | |||||||||||||||
Professional fees | 2,652 | 2,971 | |||||||||||||||
Current deferred tax liability | 3,075 | 3,075 | |||||||||||||||
Current liability to acquisition of KVS | 22,033 | 22,033 | |||||||||||||||
Other accrued liabilities | 16,227 | 22,484 | |||||||||||||||
$ | 584,748 | $ | 697,093 | ||||||||||||||
Investment income (loss) includes the following: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Interest and dividend income | $ | 970 | $ | 776 | |||||||||||||
Gains (losses) on investments, net | 10 | 78,645 | -1 | ||||||||||||||
$ | 980 | $ | 79,421 | ||||||||||||||
(1) Includes realized gains of $76.2 million from the sale of short-term and other long-term investments and net realized gains of $2.4 million from the sale of our trading securities. | |||||||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net include the following: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $ | 2,432 | $ | 3,411 | |||||||||||||
Termination of employment contract | — | 45,000 | -1 | ||||||||||||||
Litigation expenses | 3,060 | 6,161 | |||||||||||||||
Foreign currency transaction losses (gains) | (3,293 | ) | 4,317 | ||||||||||||||
Other losses (gains) | (723 | ) | 848 | ||||||||||||||
$ | 1,476 | $ | 59,737 | ||||||||||||||
(1) Represents a one-time stock grant valued at $27 million, which vested immediately and $18 million in cash awarded and paid to Mr. Petrello in connection with the termination of his prior employment agreement. See Note 9 — Commitments and Contingencies to our 2013 Annual Report for additional discussion. | |||||||||||||||||
The changes in accumulated other comprehensive income (loss), by component, includes the following: | |||||||||||||||||
Unrealized | |||||||||||||||||
gains (losses) | Defined | ||||||||||||||||
Gains (losses) | on available- | benefit | |||||||||||||||
on cash flow | for-sale | pension plan | Foreign | ||||||||||||||
hedges | securities | items | currency items | Total | |||||||||||||
(In thousands)(1) | |||||||||||||||||
As of January 1, 2013 | $ | (2,793 | ) | $ | 134,229 | $ | (7,632 | ) | $ | 216,339 | -2 | $ | 340,143 | -2 | |||
Other comprehensive income (loss) before reclassifications, net of tax of $70 | — | 10,069 | — | (23,265 | ) | (13,196 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 94 | (75,523 | ) | 173 | — | (75,256 | ) | ||||||||||
Net other comprehensive income (loss) | 94 | (65,454 | ) | 173 | (23,265 | ) | (88,452 | ) | |||||||||
As of March 31, 2013 | $ | (2,699 | ) | $ | 68,775 | $ | (7,459 | ) | $ | 193,074 | $ | 251,691 | |||||
Gains (losses) | Unrealized | Defined | Foreign | Total | |||||||||||||
on cash flow | gains (losses) | benefit | currency items | ||||||||||||||
hedges | on available- | pension plan | |||||||||||||||
for-sale | items | ||||||||||||||||
securities | |||||||||||||||||
(In thousands)(1) | |||||||||||||||||
As of January 1, 2014 | $ | (2,419 | ) | $ | 71,742 | $ | (4,075 | ) | $ | 150,892 | -2 | $ | 216,140 | -2 | |||
Other comprehensive income (loss) before reclassifications | — | (19,248 | ) | — | (36,594 | ) | (55,842 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 93 | — | 75 | — | 168 | ||||||||||||
Net other comprehensive income (loss) | 93 | (19,248 | ) | 75 | (36,594 | ) | (55,674 | ) | |||||||||
As of March 31, 2014 | $ | (2,326 | ) | $ | 52,494 | $ | (4,000 | ) | $ | 114,298 | $ | 160,466 | |||||
(1) All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||
(2) Reflects amounts reclassified from foreign currency translation adjustment to retained earnings as discussed in Note 2 - Summary of Significant Accounting Policies. | |||||||||||||||||
The line items that were reclassified from net income include the following: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Line item in consolidated statement of income (loss) | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Investment income (loss), net of income taxes of $0 and $(451) | $ | — | $ | (75,974 | ) | ||||||||||||
Interest expense, net of income taxes of $60 and $59 | (153 | ) | (153 | ) | |||||||||||||
General and administrative expenses, net of income taxes of $48 and $108 | (123 | ) | (281 | ) | |||||||||||||
Total before tax | $ | 276 | $ | (75,540 | ) | ||||||||||||
Tax expense (benefit) | 108 | (284 | ) | ||||||||||||||
Reclassification adjustment for (gains)/losses included in net income (loss) | $ | 168 | $ | (75,256 | ) |
Assets_HeldforSale_and_Discont
Assets Held-for-Sale and Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Assets Held-for-Sale and Discontinued Operations | ' | |||||||
Assets Held-for-Sale and Discontinued Operations | ' | |||||||
Note 12 Assets Held-for-Sale and Discontinued Operations | ||||||||
March 31, | December 31, | |||||||
Assets Held-for-Sale | 2014 | 2013 | ||||||
(In thousands) | ||||||||
Oil and Gas | $ | 231,880 | $ | 239,936 | ||||
Rig Services | — | 3,328 | ||||||
$ | 231,880 | $ | 243,264 | |||||
We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing. At March 31, 2014, our undiscounted contractual commitments for these contracts approximated $145.4 million and we had liabilities of $64.9 million, $29.4 million of which were classified as current and were included in accrued liabilities. At December 31, 2013, we had liabilities of $113.6 million, $64.4 million of which were classified as current and were included in accrued liabilities. These amounts represent our best estimate of the fair value of the excess capacity of the pipeline commitments calculated using a discounted cash flow model, when considering our disposal plan, current production levels, natural gas prices and expected utilization of the pipeline over the remaining contractual term. Decreases in actual production or natural gas prices could result in future charges related to excess pipeline commitments. | ||||||||
Discontinued Operations | ||||||||
Our condensed statements of income (loss) from discontinued operations for each operating segment were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Operating revenues | ||||||||
Oil and Gas | $ | 5,057 | $ | 9,989 | ||||
Rig Services | $ | — | $ | 47,204 | ||||
Income (loss) from Oil and Gas discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | 2,618 | $ | 2,070 | ||||
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets | 1,002 | 2,000 | ||||||
Less: Income tax expense (benefit) | 101 | (283 | ) | |||||
Income (loss) from Oil and Gas discontinued operations, net of tax | $ | 1,515 | $ | 353 | ||||
Income (loss) from Rig Services discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | — | $ | 9,371 | ||||
Less: Impairment charges or other (gains) and losses on sale of long-lived assets | — | 323 | ||||||
Less: Income tax expense (benefit) | — | 2,390 | ||||||
Income (loss) from Rig Services discontinued operations, net of tax | $ | — | $ | 6,658 |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Segment Information | ' | |||||||
Note 13 Segment Information | ||||||||
The following table sets forth financial information with respect to our operating segments: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: (1) | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 510,476 | $ | 484,773 | ||||
Canada | 111,621 | 126,867 | ||||||
International | 375,069 | 321,516 | ||||||
Rig Services (2) | 143,726 | 134,231 | ||||||
Subtotal Drilling & Rig Services (3) | 1,140,892 | 1,067,387 | ||||||
Completion & Production Services: | ||||||||
Completion Services | 227,899 | 262,138 | ||||||
Production Services | 275,400 | 251,571 | ||||||
Subtotal Completion & Production Services (4) | 503,299 | 513,709 | ||||||
Other reconciling items (5) | (57,018 | ) | (42,723 | ) | ||||
Total | $ | 1,587,173 | $ | 1,538,373 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Adjusted income (loss) derived from operating activities (1) (6) | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 72,494 | $ | 77,595 | ||||
Canada | 26,160 | 30,518 | ||||||
International | 48,119 | 21,469 | ||||||
Rig Services (2) | 8,728 | 1,287 | ||||||
Subtotal Drilling & Rig Services (3) | 155,501 | 130,869 | ||||||
Completion & Production Services: | ||||||||
Completion Services | (33,635 | ) | 17,756 | |||||
Production Services | 30,591 | 26,014 | ||||||
Subtotal Completion & Production Services (4) | (3,044 | ) | 43,770 | |||||
Other reconciling items (5) | (43,416 | ) | (31,501 | ) | ||||
Total adjusted income (loss) derived from operating activities | $ | 109,041 | $ | 143,138 | ||||
Interest expense | (44,810 | ) | (60,011 | ) | ||||
Investment income (loss) | 980 | 79,421 | ||||||
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net | (1,476 | ) | (59,737 | ) | ||||
Income (loss) from continuing operations before income taxes | 63,735 | 102,811 | ||||||
Income tax expense (benefit) | 14,008 | 9,854 | ||||||
Subsidiary preferred stock dividend | 750 | 750 | ||||||
Income (loss) from continuing operations, net of tax | 48,977 | 92,207 | ||||||
Income (loss) from discontinued operations, net of tax | 1,515 | 7,011 | ||||||
Net income (loss) | 50,492 | 99,218 | ||||||
Less: Net (income) loss attributable to noncontrolling interest | (573 | ) | (97 | ) | ||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | 99,121 | ||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Total assets: | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 4,340,581 | $ | 4,248,630 | ||||
Canada | 608,533 | 608,018 | ||||||
International | 3,668,340 | 3,584,339 | ||||||
Rig Services | 479,252 | 474,275 | ||||||
Subtotal Drilling & Rig Services (7) | 9,096,706 | 8,915,262 | ||||||
Completion & Production Services (8) (9) | 2,314,481 | 2,394,865 | ||||||
Other reconciling items (5) | 775,886 | 849,684 | ||||||
Total assets: | $ | 12,187,073 | $ | 12,159,811 | ||||
(1) All periods present the operating activities of our wholly owned oil and gas businesses, our previously held equity interests in oil and gas joint ventures in Canada and Colombia, aircraft logistics operations and construction services as discontinued operations. | ||||||||
(2) Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. These services represent our other companies that are not aggregated into a reportable operating segment. | ||||||||
(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of ($2.5) million and $2.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.1 for each of the three months ended March 31, 2014 and 2013. | ||||||||
(5) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets. | ||||||||
(6) Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the above table. | ||||||||
(7) Includes $54.4 million and $56.9 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2014 and December 31, 2013, respectively. | ||||||||
(8) Reflects assets allocated to the line of business necessary to conduct its operations. Further allocation to individual operating segments of Completion & Production Services is not available. | ||||||||
(9) Includes $8.7 million and $7.4 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2014 and December 31, 2013, respectively. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||
Note 14 Condensed Consolidating Financial Information | ||||||||||||||||||
Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware. The following condensed consolidating financial information is included so that separate financial statements of Nabors Delaware are not required to be filed with the SEC. The condensed consolidating financial statements present investments in both consolidated and unconsolidated affiliates using the equity method of accounting. | ||||||||||||||||||
The following condensed consolidating financial information presents condensed consolidating balance sheets as of March 31, 2014 and December 31, 2013 and statements of income (loss), statements of other comprehensive income (loss) and statements of cash flows for the three months ended March 31, 2014 and 2013 of (a) Nabors, parent/guarantor, (b) Nabors Delaware, issuer of public debt securities guaranteed by Nabors, (c) the non-guarantor subsidiaries, (d) consolidating adjustments necessary to consolidate Nabors and its subsidiaries and (e) Nabors on a consolidated basis. | ||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||
March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 892 | $ | 4 | $ | 325,985 | $ | — | $ | 326,881 | ||||||||
Short-term investments | — | — | 97,886 | — | 97,886 | |||||||||||||
Assets held for sale | — | — | 231,880 | — | 231,880 | |||||||||||||
Accounts receivable, net | — | — | 1,454,368 | — | 1,454,368 | |||||||||||||
Inventory | — | — | 194,371 | — | 194,371 | |||||||||||||
Deferred income taxes | — | — | 133,667 | — | 133,667 | |||||||||||||
Other current assets | 50 | 30,214 | 221,951 | — | 252,215 | |||||||||||||
Total current assets | 942 | 30,218 | 2,660,108 | — | 2,691,268 | |||||||||||||
Long-term investments | — | — | 2,915 | — | 2,915 | |||||||||||||
Property, plant and equipment, net | — | 32,944 | 8,657,815 | — | 8,690,759 | |||||||||||||
Goodwill | — | — | 512,391 | — | 512,391 | |||||||||||||
Intercompany receivables | 153,352 | — | 1,787,393 | (1,940,745 | ) | — | ||||||||||||
Investment in consolidated affiliates | 5,806,653 | 6,088,501 | 1,749,780 | (13,644,934 | ) | — | ||||||||||||
Investment in unconsolidated affiliates | — | — | 63,069 | — | 63,069 | |||||||||||||
Other long-term assets | — | 32,630 | 194,041 | — | 226,671 | |||||||||||||
Total assets | $ | 5,960,947 | $ | 6,184,293 | $ | 15,627,512 | $ | (15,585,679 | ) | $ | 12,187,073 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Current portion of debt | $ | — | $ | — | $ | 5,296 | $ | — | $ | 5,296 | ||||||||
Trade accounts payable | 150 | 2 | 630,863 | — | 631,015 | |||||||||||||
Accrued liabilities | 328 | 18,094 | 566,326 | — | 584,748 | |||||||||||||
Income taxes payable | — | — | 17,083 | — | 17,083 | |||||||||||||
Total current liabilities | 478 | 18,096 | 1,219,568 | — | 1,238,142 | |||||||||||||
Long-term debt | — | 3,804,956 | 7,520 | — | 3,812,476 | |||||||||||||
Other long-term liabilities | — | 30,142 | 539,851 | — | 569,993 | |||||||||||||
Deferred income taxes | — | (237,076 | ) | 763,081 | — | 526,005 | ||||||||||||
Intercompany payable | — | 1,940,745 | — | (1,940,745 | ) | — | ||||||||||||
Total liabilities | 478 | 5,556,863 | 2,530,020 | (1,940,745 | ) | 6,146,616 | ||||||||||||
Subsidiary preferred stock | — | — | 69,188 | — | 69,188 | |||||||||||||
Shareholders’ equity | 5,960,469 | 627,430 | 13,017,504 | (13,644,934 | ) | 5,960,469 | ||||||||||||
Noncontrolling interest | — | — | 10,800 | — | 10,800 | |||||||||||||
Total equity | 5,960,469 | 627,430 | 13,028,304 | (13,644,934 | ) | 5,971,269 | ||||||||||||
Total liabilities and equity | $ | 5,960,947 | $ | 6,184,293 | $ | 15,627,512 | $ | (15,585,679 | ) | $ | 12,187,073 | |||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ | 730 | $ | 7,029 | $ | 382,156 | $ | — | $ | 389,915 | ||||||||
Short-term investments | — | — | 117,218 | — | 117,218 | |||||||||||||
Assets held for sale | — | — | 243,264 | — | 243,264 | |||||||||||||
Accounts receivable, net | 27 | — | 1,399,516 | — | 1,399,543 | |||||||||||||
Inventory | — | — | 209,793 | — | 209,793 | |||||||||||||
Deferred income taxes | — | — | 121,316 | — | 121,316 | |||||||||||||
Other current assets | 50 | 26,378 | 246,353 | — | 272,781 | |||||||||||||
Total current assets | 807 | 33,407 | 2,719,616 | — | 2,753,830 | |||||||||||||
Long-term investments | — | — | 3,236 | — | 3,236 | |||||||||||||
Property, plant and equipment, net | — | 33,815 | 8,563,998 | — | 8,597,813 | |||||||||||||
Goodwill | — | — | 512,964 | — | 512,964 | |||||||||||||
Intercompany receivables | 160,136 | 3,891 | 1,583,539 | (1,747,566 | ) | — | ||||||||||||
Investment in consolidated affiliates | 5,808,607 | 6,097,337 | 1,789,851 | (13,695,795 | ) | — | ||||||||||||
Investment in unconsolidated affiliates | — | — | 64,260 | — | 64,260 | |||||||||||||
Other long-term assets | — | 34,487 | 193,221 | — | 227,708 | |||||||||||||
Total assets | $ | 5,969,550 | $ | 6,202,937 | $ | 15,430,685 | $ | (15,443,361 | ) | $ | 12,159,811 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Current debt | $ | — | $ | — | $ | 10,185 | $ | — | $ | 10,185 | ||||||||
Trade accounts payable | 86 | 25 | 545,401 | — | 545,512 | |||||||||||||
Accrued liabilities | 378 | 65,947 | 630,768 | — | 697,093 | |||||||||||||
Income taxes payable | — | — | 58,634 | — | 58,634 | |||||||||||||
Total current liabilities | 464 | 65,972 | 1,244,988 | — | 1,311,424 | |||||||||||||
Long-term debt | — | 3,904,059 | 58 | — | 3,904,117 | |||||||||||||
Other long-term liabilities | — | 31,071 | 346,673 | — | 377,744 | |||||||||||||
Deferred income taxes | — | (213,233 | ) | 729,394 | — | 516,161 | ||||||||||||
Intercompany payable | — | 1,747,566 | — | (1,747,566 | ) | — | ||||||||||||
Total liabilities | 464 | 5,535,435 | 2,321,113 | (1,747,566 | ) | 6,109,446 | ||||||||||||
Subsidiary preferred stock | — | — | 69,188 | — | 69,188 | |||||||||||||
Shareholders’ equity | 5,969,086 | 667,502 | 13,028,293 | (13,695,795 | ) | 5,969,086 | ||||||||||||
Noncontrolling interest | — | — | 12,091 | — | 12,091 | |||||||||||||
Total equity | 5,969,086 | 667,502 | 13,040,384 | (13,695,795 | ) | 5,981,177 | ||||||||||||
Total liabilities and equity | $ | 5,969,550 | $ | 6,202,937 | $ | 15,430,685 | $ | (15,443,361 | ) | $ | 12,159,811 | |||||||
Condensed Consolidating Statements of Income (Loss) | ||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Revenues and other income: | ||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 1,589,618 | $ | — | $ | 1,589,618 | ||||||||
Earnings from unconsolidated affiliates | — | — | (2,445 | ) | — | (2,445 | ) | |||||||||||
Earnings (losses) from consolidated affiliates | 52,583 | (8,760 | ) | (40,089 | ) | (3,734 | ) | — | ||||||||||
Investment income (loss) | — | — | 2,116 | (1,136 | ) | 980 | ||||||||||||
Total revenues and other income | 52,583 | (8,760 | ) | 1,549,200 | (4,870 | ) | 1,588,153 | |||||||||||
Costs and other deductions: | ||||||||||||||||||
Direct costs | — | — | 1,061,739 | — | 1,061,739 | |||||||||||||
General and administrative expenses | 2,453 | (319 | ) | 132,281 | (149 | ) | 134,266 | |||||||||||
Depreciation and amortization | — | 902 | 281,225 | — | 282,127 | |||||||||||||
Interest expense | — | 49,369 | (4,559 | ) | — | 44,810 | ||||||||||||
Intercompany interest expense | 62 | — | (62 | ) | — | — | ||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 149 | (223 | ) | 1,401 | 149 | 1,476 | ||||||||||||
Total costs and other deductions | 2,664 | 49,729 | 1,472,025 | — | 1,524,418 | |||||||||||||
Income from continuing operations before income tax | 49,919 | (58,489 | ) | 77,175 | (4,870 | ) | 63,735 | |||||||||||
Income tax expense (benefit) | — | (18,400 | ) | 32,408 | — | 14,008 | ||||||||||||
Subsidiary preferred stock dividend | — | — | 750 | — | 750 | |||||||||||||
Income (loss) from continuting operations, net of tax | 49,919 | (40,089 | ) | 44,017 | (4,870 | ) | 48,977 | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 1,515 | — | 1,515 | |||||||||||||
Net income (loss) | 49,919 | (40,089 | ) | 45,532 | (4,870 | ) | 50,492 | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest | — | — | (573 | ) | — | (573 | ) | |||||||||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | (40,089 | ) | $ | 44,959 | $ | (4,870 | ) | $ | 49,919 | ||||||
Condensed Consolidating Statements of Income (Loss) | ||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Revenues and other income: | ||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 1,535,478 | $ | — | $ | 1,535,478 | ||||||||
Earnings from unconsolidated affiliates | — | — | 2,895 | — | 2,895 | |||||||||||||
Earnings (losses) from consolidated affiliates | 107,873 | 42,320 | 2,023 | (152,216 | ) | — | ||||||||||||
Investment income (loss) | — | 16 | 79,405 | — | 79,421 | |||||||||||||
Intercompany interest income | — | 29 | — | (29 | ) | — | ||||||||||||
Total revenues and other income | 107,873 | 42,365 | 1,619,801 | (152,245 | ) | 1,617,794 | ||||||||||||
Costs and other deductions: | ||||||||||||||||||
Direct costs | — | — | 994,992 | — | 994,992 | |||||||||||||
General and administrative expenses | 1,834 | 37 | 129,151 | (144 | ) | 130,878 | ||||||||||||
Depreciation and amortization | — | 902 | 268,463 | — | 269,365 | |||||||||||||
Interest expense | — | 63,049 | (3,038 | ) | — | 60,011 | ||||||||||||
Intercompany interest expense | — | — | 29 | (29 | ) | — | ||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 6,918 | 21 | 52,654 | 144 | 59,737 | |||||||||||||
Total costs and other deductions | 8,752 | 64,009 | 1,442,251 | (29 | ) | 1,514,983 | ||||||||||||
Income from continuing operations before income tax | 99,121 | (21,644 | ) | 177,550 | (152,216 | ) | 102,811 | |||||||||||
Income tax expense (benefit) | — | (23,667 | ) | 33,521 | — | 9,854 | ||||||||||||
Subsidiary preferred stock dividend | — | — | 750 | — | 750 | |||||||||||||
Income (loss) from continuting operations, net of tax | 99,121 | 2,023 | 143,279 | (152,216 | ) | 92,207 | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 7,011 | — | 7,011 | |||||||||||||
Net income (loss) | 99,121 | 2,023 | 150,290 | (152,216 | ) | 99,218 | ||||||||||||
Less: Net (income) loss attributable to noncontrolling interest | — | — | (97 | ) | — | (97 | ) | |||||||||||
Net income (loss) attributable to Nabors | $ | 99,121 | $ | 2,023 | $ | 150,193 | $ | (152,216 | ) | $ | 99,121 | |||||||
Condensed Consolidating Statements of Other Comprehensive Income (Loss) | ||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | (40,089 | ) | $ | 44,959 | $ | (4,870 | ) | $ | 49,919 | ||||||
Other comprehensive income (loss) before taxes: | ||||||||||||||||||
Translation adjustment attributable to Nabors | (36,594 | ) | (216 | ) | (36,813 | ) | 37,029 | (36,594 | ) | |||||||||
Unrealized gains/(losses) on marketable securities | (19,208 | ) | — | (19,208 | ) | 19,208 | (19,208 | ) | ||||||||||
Pension liability amortization and adjustment | 123 | 123 | 246 | (369 | ) | 123 | ||||||||||||
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 | 153 | (306 | ) | 153 | ||||||||||||
Other comprehensive income (loss) before tax | (55,526 | ) | 60 | (55,622 | ) | 55,562 | (55,526 | ) | ||||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | 148 | 236 | (384 | ) | 148 | ||||||||||||
Other comprehensive income (loss), net of tax | (55,674 | ) | (88 | ) | (55,858 | ) | 55,946 | (55,674 | ) | |||||||||
Comprehensive income (loss) attributable to Nabors | (5,755 | ) | (40,177 | ) | (10,899 | ) | 51,076 | (5,755 | ) | |||||||||
Net income (loss) attributable to noncontrolling interest | — | — | 573 | — | 573 | |||||||||||||
Translation adjustment to noncontrolling interest | — | — | (481 | ) | — | (481 | ) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | — | — | 92 | — | 92 | |||||||||||||
Comprehensive income (loss) | $ | (5,755 | ) | $ | (40,177 | ) | $ | (10,807 | ) | $ | 51,076 | $ | (5,663 | ) | ||||
Condensed Consolidating Statements of Other Comprehensive Income (Loss) | ||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net income (loss) attributable to Nabors | $ | 99,121 | $ | 2,023 | $ | 150,193 | $ | (152,216 | ) | $ | 99,121 | |||||||
Other comprehensive income (loss) before taxes: | ||||||||||||||||||
Translation adjustment attributable to Nabors | (23,265 | ) | (52 | ) | (23,317 | ) | 23,369 | (23,265 | ) | |||||||||
Unrealized gains/(losses) on marketable securities: | ||||||||||||||||||
Unrealized gains/(losses) on marketable securities | 10,139 | 185 | 10,324 | (10,509 | ) | 10,139 | ||||||||||||
Less: reclassification adjustment for (gains)/losses on marketable securities | (75,974 | ) | (1,186 | ) | (77,160 | ) | 78,346 | (75,974 | ) | |||||||||
Unrealized gains/(losses) on marketable securities | (65,835 | ) | (1,001 | ) | (66,836 | ) | 67,837 | (65,835 | ) | |||||||||
Pension liability amortization and adjustment | 281 | 281 | 562 | (843 | ) | 281 | ||||||||||||
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 | 153 | (306 | ) | 153 | ||||||||||||
Other comprehensive income (loss) before tax | (88,666 | ) | (619 | ) | (89,438 | ) | 90,057 | (88,666 | ) | |||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (214 | ) | (214 | ) | (487 | ) | 701 | (214 | ) | |||||||||
Other comprehensive income (loss), net of tax | (88,452 | ) | (405 | ) | (88,951 | ) | 89,356 | (88,452 | ) | |||||||||
Comprehensive income (loss) attributable to Nabors | 10,669 | 1,618 | 61,242 | (62,860 | ) | 10,669 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | 97 | — | 97 | |||||||||||||
Translation adjustment to noncontrolling interest | — | — | (1,414 | ) | — | (1,414 | ) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | — | — | (1,317 | ) | — | (1,317 | ) | |||||||||||
Comprehensive income (loss) | $ | 10,669 | $ | 1,618 | $ | 59,925 | $ | (62,860 | ) | $ | 9,352 | |||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net cash provided by (used for) operating activities | $ | (1,579 | ) | $ | (83,877 | ) | $ | 514,731 | $ | 15,288 | $ | 444,563 | ||||||
Cash flows from investing activities: | ||||||||||||||||||
Purchase of investments | — | — | (286 | ) | — | (286 | ) | |||||||||||
Sales and maturities of investments | — | — | 733 | — | 733 | |||||||||||||
Cash paid for acquisition of businesses, net | — | — | (10,200 | ) | — | (10,200 | ) | |||||||||||
Investment in unconsolidated affiliates | — | — | (1,255 | ) | — | (1,255 | ) | |||||||||||
Capital expenditures | — | — | (396,465 | ) | — | (396,465 | ) | |||||||||||
Proceeds from sales of assets and insurance claims | — | — | 21,605 | — | 21,605 | |||||||||||||
Changes in intercompany balances | — | 176,446 | (176,446 | ) | — | — | ||||||||||||
Net cash provided by (used for) investing activities | — | 176,446 | (562,314 | ) | — | (385,868 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Increase (decrease) in cash overdrafts | — | — | (1,822 | ) | — | (1,822 | ) | |||||||||||
Proceeds from (payments for) issuance of common shares | 4,931 | — | — | — | 4,931 | |||||||||||||
Dividends to shareholders | (13,029 | ) | — | — | 1,136 | (11,893 | ) | |||||||||||
Proceeds from (payments for) commercial paper, net | — | (39,594 | ) | — | — | (39,594 | ) | |||||||||||
Proceeds from revolving credit facilities | — | — | 15,000 | — | 15,000 | |||||||||||||
Reduction in revolving credit facilities | — | (60,000 | ) | (7,500 | ) | — | (67,500 | ) | ||||||||||
Proceeds from (payments for) issuance of parent common shares to affiliates | 16,424 | — | — | (16,424 | ) | — | ||||||||||||
Other | (6,585 | ) | — | (5,000 | ) | — | (11,585 | ) | ||||||||||
Net cash (used for) provided by financing activities | 1,741 | (99,594 | ) | 678 | (15,288 | ) | (112,463 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (9,266 | ) | — | (9,266 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 162 | (7,025 | ) | (56,171 | ) | — | (63,034 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 730 | 7,029 | 382,156 | — | 389,915 | |||||||||||||
Cash and cash equivalents, end of period | $ | 892 | $ | 4 | $ | 325,985 | $ | — | $ | 326,881 | ||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 1,144 | $ | (138,791 | ) | $ | 304,142 | $ | 12,800 | $ | 179,295 | |||||||
Cash flows from investing activities: | ||||||||||||||||||
Sales and maturities of investments | — | — | 142,336 | — | 142,336 | |||||||||||||
Cash paid for acquisition of businesses, net | — | — | (37,516 | ) | — | (37,516 | ) | |||||||||||
Investment in unconsolidated affilaites | — | — | (12 | ) | — | (12 | ) | |||||||||||
Capital expenditures | — | — | (235,539 | ) | — | (235,539 | ) | |||||||||||
Proceeds from sales of assets and insurance claims | — | — | 6,605 | — | 6,605 | |||||||||||||
Cash paid for investments in consolidated affiliates | — | (100,000 | ) | (200,000 | ) | 300,000 | — | |||||||||||
Changes in intercompany balances | — | 54,192 | (54,192 | ) | — | — | ||||||||||||
Net cash provided by (used for) investing activities | — | (45,808 | ) | (378,318 | ) | 300,000 | (124,126 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Increase (decrease) in cash overdrafts | — | — | (1,975 | ) | — | (1,975 | ) | |||||||||||
Proceeds from (payments for) issuance of common shares | 1,027 | — | — | — | 1,027 | |||||||||||||
Dividends to shareholders | (12,891 | ) | — | — | — | (12,891 | ) | |||||||||||
Proceeds from (payments for) issuance of parent common shares to affiliates | 12,800 | — | — | (12,800 | ) | — | ||||||||||||
Proceeds from parent contributions | — | 100,000 | 200,000 | (300,000 | ) | — | ||||||||||||
Other | (2,773 | ) | (89 | ) | 4,257 | — | 1,395 | |||||||||||
Net cash (used for) provided by financing activities | (1,837 | ) | 99,911 | 202,282 | (312,800 | ) | (12,444 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (2,759 | ) | — | (2,759 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (693 | ) | (84,688 | ) | 125,347 | — | 39,966 | |||||||||||
Cash and cash equivalents, beginning of period | 1,639 | 106,778 | 416,505 | — | 524,922 | |||||||||||||
Cash and cash equivalents, end of period | $ | 946 | $ | 22,090 | $ | 541,852 | $ | — | $ | 564,888 |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 15 Subsequent Events | |
On April 25, 2014, our Board of Directors declared a cash dividend of $0.04 per share to the holders of record of our common shares as of June 9, 2014 to be paid on June 30, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Interim Financial Information | ' | |||||||
Interim Financial Information | ||||||||
The unaudited consolidated financial statements of Nabors are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted. Therefore, these financial statements should be read along with our annual report on Form 10-K for the year ended December 31, 2013 (“2013 Annual Report”). In management’s opinion, the consolidated financial statements contain all adjustments necessary to present fairly our financial position as of March 31, 2014, as well as the results of our operations, other comprehensive income, our cash flows and changes in equity for the three months ended March 31, 2014 and 2013, in accordance with GAAP. Interim results for the three months ended March 31, 2014 may not be indicative of results that will be realized for the full year ending December 31, 2014. | ||||||||
Our independent registered public accounting firm has reviewed and issued a report on these consolidated interim financial statements in accordance with standards established by the Public Company Accounting Oversight Board. Pursuant to Rule 436(c) under the Securities Act of 1933, as amended (the “Securities Act”), this report should not be considered a part of any registration statement prepared or certified within the meanings of Sections 7 and 11 of such Act. | ||||||||
Prior Period Revision | ' | |||||||
Prior Period Revision | ||||||||
During the first quarter of 2014, we determined that we had incorrectly applied certain aspects of ASC 830 - Foreign Currency Matters with respect to the recording of foreign currency gains or losses on certain intercompany transactions. GAAP requires the recognition of foreign currency gains or losses on U.S. dollar denominated intercompany balances of our subsidiaries that have a functional currency other than the U.S. dollar. The primary years impacted were 2002 and 2009, which is the period over which a series of intercompany loans were outstanding between our Canadian subsidiary, whose functional currency is the Canadian dollar, and other subsidiaries whose functional currencies are the U.S. dollar. | ||||||||
The net effect understated net income for periods before 2009 by approximately $90 million, due to foreign currency gains that should have been recorded through net income, rather than through Cumulative Translation Adjustments (a component of Accumulated Other Comprehensive Income). The correction of this error resulted in a revision to increase the beginning Retained Earnings at January 1, 2010 by approximately $91.5 million with the offset being a decrease to Accumulated Other Comprehensive Income, both of which are components of Shareholders’ Equity. There was no other material impact to our assets, liabilities, cash flows or profit and loss for any periods presented. We do not consider this revision material to any period. | ||||||||
Principles of Consolidation | ' | |||||||
Principles of Consolidation | ||||||||
Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries required to be consolidated under GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. | ||||||||
Investments in operating entities where we have the ability to exert significant influence, but where we do not control operating and financial policies, are accounted for using the equity method. Our share of the net income (loss) of these entities is recorded as earnings (losses) from unconsolidated affiliates in our consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our consolidated balance sheets. | ||||||||
Inventory | ' | |||||||
Inventory | ||||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out or weighted-average cost methods and includes the cost of materials, labor and manufacturing overhead. Inventory included the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 121,780 | $ | 128,606 | ||||
Work-in-progress | 27,009 | 26,762 | ||||||
Finished goods | 45,582 | 54,425 | ||||||
$ | 194,371 | $ | 209,793 | |||||
Goodwill | ' | |||||||
Goodwill | ||||||||
We review goodwill for impairment annually during the second quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the carrying amount of such goodwill and intangible assets exceed their fair value. We initially assess goodwill for impairment based on qualitative factors to determine whether to perform the two-step annual goodwill impairment test, a Level 3 fair value measurement. After our qualitative assessment, step one of the impairment test compares the estimated fair value of the reporting unit to its carrying amount. If the carrying amount exceeds the fair value, a second step is required to measure the goodwill impairment loss. The second step compares the implied fair value of the reporting unit’s goodwill to its carrying amount. If the carrying amount exceeds the implied fair value, an impairment loss is recognized in an amount equal to the excess. | ||||||||
Our estimated fair values of our reporting units incorporate judgment and the use of estimates by management. Potential factors requiring assessment include a further or sustained decline in our stock price, declines in oil and natural gas prices, a variance in results of operations from forecasts, a change in operating strategy for particular assets and additional transactions in the oil and gas industry. Another factor in determining whether impairment has occurred is the relationship between our market capitalization and our book value. As part of our annual review, we compare the sum of our reporting units’ estimated fair value, which includes the estimated fair value of non-operating assets and liabilities, less debt, to our market capitalization and assess the reasonableness of our estimated fair value. Any of the above-mentioned factors may cause us to re-evaluate goodwill during any quarter throughout the year. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Inventory | ' | |||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 121,780 | $ | 128,606 | ||||
Work-in-progress | 27,009 | 26,762 | ||||||
Finished goods | 45,582 | 54,425 | ||||||
$ | 194,371 | $ | 209,793 |
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Short-term Investments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Cash and Cash Equivalents and Short-term Investments | ' | |||||||||||||||||||
Certain information related to our cash and cash equivalents and short term investments | ' | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Gross | Gross | Fair Value | Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | |||||||||||||||||
Holding | Holding | Holding | Holding | |||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 326,881 | $ | — | $ | — | $ | 389,915 | $ | — | $ | — | ||||||||
Short-term investments: | ||||||||||||||||||||
Available-for-sale equity securities | 77,591 | 49,045 | — | 96,942 | 68,395 | — | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Corporate debt securities | 19,525 | 4,252 | — | 19,388 | 4,122 | — | ||||||||||||||
Mortgage-backed debt securities | 209 | 11 | — | 210 | 11 | — | ||||||||||||||
Mortgage-CMO debt securities | 20 | — | (1 | ) | 20 | — | (2 | ) | ||||||||||||
Asset-backed debt securities | 541 | 1 | (37 | ) | 658 | 2 | (54 | ) | ||||||||||||
Total available-for-sale debt securities | 20,295 | 4,264 | (38 | ) | 20,276 | 4,135 | (56 | ) | ||||||||||||
Total available-for-sale securities | 97,886 | 53,309 | (38 | ) | 117,218 | 72,530 | (56 | ) | ||||||||||||
Total short-term investments | 97,886 | 53,309 | (38 | ) | 117,218 | 72,530 | (56 | ) | ||||||||||||
Total cash, cash equivalents and short-term investments | $ | 424,767 | $ | 53,309 | $ | (38 | ) | $ | 507,133 | $ | 72,530 | $ | (56 | ) | ||||||
Gross unrealized losses of cash and cash equivalents and short-term investments | ' | |||||||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | |||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Losses | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale debt securities: (1) | ||||||||||||||||||||
Mortgage-CMO debt securities | $ | 20 | $ | 1 | $ | — | $ | — | ||||||||||||
Asset-backed debt securities | — | — | 361 | 37 | ||||||||||||||||
Total available-for-sale debt securities | 20 | 1 | 361 | 37 | ||||||||||||||||
Total | $ | 20 | $ | 1 | $ | 361 | $ | 37 | ||||||||||||
(1) Our unrealized losses on available-for-sale debt securities held for more than one year are comprised of various types of securities. Each of these securities has a rating ranging from “A” to “AAA” from Standard & Poor’s and ranging from “A2” to “Aaa” from Moody’s Investors Service and is considered to be of high credit quality. In each case, we do not intend to sell these investments, and it is less likely than not that we will be required to sell them to satisfy our own cash flow and working capital requirements. We believe that we will be able to collect all amounts due according to the contractual terms of each investment and, therefore, do not consider the decline in value of these investments to be other-than-temporary at March 31, 2014. | ||||||||||||||||||||
Estimated fair values of corporate, mortgage-backed, mortgage-CMO and asset-backed debt securities | ' | |||||||||||||||||||
Estimated | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Due in one year or less | $ | — | ||||||||||||||||||
Due after one year through five years | 15,525 | |||||||||||||||||||
Due in more than five years | 4,770 | |||||||||||||||||||
Total debt securities | $ | 20,295 | ||||||||||||||||||
Debt and equity securities | ' | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
Proceeds from sales and maturities | $ | 135 | $ | 86,601 | ||||||||||||||||
Realized gains (losses), net | $ | — | $ | 75,974 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Recurring Fair Value Measurements | ' | |||||||||||||
Fair Value as of March 31, 2014 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Short-term investments: | ||||||||||||||
Available-for-sale equity securities (energy industry) | $ | 76,729 | $ | 862 | $ | — | $ | 77,591 | ||||||
Available-for-sale debt securities: | ||||||||||||||
Corporate debt securities | — | 19,525 | — | 19,525 | ||||||||||
Mortgage-backed debt securities | — | 209 | — | 209 | ||||||||||
Mortgage-CMO debt securities | — | 20 | — | 20 | ||||||||||
Asset-backed debt securities | 541 | — | — | 541 | ||||||||||
Total short-term investments | $ | 77,270 | $ | 20,616 | $ | — | $ | 97,886 | ||||||
Fair Value of Financial Instruments | ' | |||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Value | Value | Value | Value | |||||||||||
(In thousands) | ||||||||||||||
2.35% senior notes due September 2016 | $ | 349,836 | $ | 357,851 | $ | 349,820 | $ | 354,694 | ||||||
6.15% senior notes due February 2018 | 970,234 | 1,102,511 | 969,928 | 1,097,480 | ||||||||||
9.25% senior notes due January 2019 | 339,607 | 427,966 | 339,607 | 428,733 | ||||||||||
5.00% senior notes due September 2020 | 698,208 | 748,720 | 697,947 | 731,955 | ||||||||||
4.625% senior notes due September 2021 | 698,024 | 723,030 | 698,148 | 709,793 | ||||||||||
5.10% senior notes due September 2023 | 348,797 | 362,250 | 348,765 | 349,731 | ||||||||||
Subsidiary preferred stock | 69,188 | 69,000 | 69,188 | 69,000 | ||||||||||
Revolving credit facility | 117,500 | 117,500 | 170,000 | 170,000 | ||||||||||
Commercial paper | 290,250 | 290,250 | 329,844 | 329,844 | ||||||||||
Other | 5,316 | 5,316 | 10,243 | 10,243 | ||||||||||
Total | $ | 3,886,960 | $ | 4,204,394 | $ | 3,983,490 | $ | 4,251,473 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) (Restricted Stock Based on Market Conditions) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Restricted Stock Based on Market Conditions | ' | |||||||
Share-based compensation disclosures | ' | |||||||
Schedule of grant date fair value | ' | |||||||
2014 | 2013 | |||||||
Risk free interest rate | 0.8 | % | 0.41 | % | ||||
Expected volatility | 40 | % | 46 | % | ||||
Closing stock price | $ | 18.19 | $ | 16.53 | ||||
Expected term (in years) | 2.97 years | 2.82 years | ||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt | ' | |||||||
Long-term debt | ' | |||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
2.35% senior notes due September 2016 | $ | 349,836 | $ | 349,820 | ||||
6.15% senior notes due February 2018 | 970,234 | 969,928 | ||||||
9.25% senior notes due January 2019 | 339,607 | 339,607 | ||||||
5.00% senior notes due September 2020 | 698,208 | 697,947 | ||||||
4.625% senior notes due September 2021 | 698,024 | 698,148 | ||||||
5.10% senior notes due September 2023 | 348,797 | 348,765 | ||||||
Revolving credit facility | 117,500 | 170,000 | ||||||
Commercial paper | 290,250 | 329,844 | ||||||
Other | 5,316 | 10,243 | ||||||
$ | 3,817,772 | $ | 3,914,302 | |||||
Less: current portion | 5,296 | 10,185 | ||||||
$ | 3,812,476 | $ | 3,904,117 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Summary of total maximum amount of financial guarantees issued | ' | ||||||||||||||||
Maximum Amount | |||||||||||||||||
Remainder of | 2015 | 2016 | Thereafter | Total | |||||||||||||
2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Financial standby letters of credit and other financial surety instruments | $ | 115,018 | $ | 40,408 | $ | — | $ | 19 | $ | 155,445 | |||||||
Earnings_Losses_Per_Share_Tabl
Earnings (Losses) Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings (Losses) Per Share | ' | |||||||
Earnings (losses) per share computations | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands, except per share amounts) | ||||||||
Net income (loss) (numerator): | ||||||||
Income (loss) from continuing operations, net of tax | $ | 48,977 | $ | 92,207 | ||||
Less: net (income) loss attributable to noncontrolling interest | (573 | ) | (97 | ) | ||||
Less: (earnings) losses allocated to unvested shareholders | (733 | ) | (814 | ) | ||||
Adjusted income (loss) from continuing operations - basic and diluted | $ | 47,671 | $ | 91,296 | ||||
Income (loss) from discontinued operations, net of tax | $ | 1,515 | $ | 7,011 | ||||
Earnings (losses) per share: | ||||||||
Basic from continuing operations | $ | 0.16 | $ | 0.31 | ||||
Basic from discontinued operations | 0.01 | 0.03 | ||||||
Total Basic | $ | 0.17 | $ | 0.34 | ||||
Diluted from continuing operations | $ | 0.16 | $ | 0.31 | ||||
Diluted from discontinued operations | — | 0.02 | ||||||
Total Diluted | $ | 0.16 | $ | 0.33 | ||||
Shares (denominator): | ||||||||
Weighted-average number of shares outstanding - basic | 296,210 | 291,687 | ||||||
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method | 2,840 | 2,483 | ||||||
Weighted-average number of shares outstanding - diluted | 299,050 | 294,170 |
Supplemental_Balance_Sheet_Inc1
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Supplemental Balance Sheet, Income Statement and Cash Flow Information | ' | ||||||||||||||||
Accrued liabilities | ' | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Accrued compensation | $ | 158,676 | $ | 172,803 | |||||||||||||
Deferred revenue | 234,900 | 202,918 | |||||||||||||||
Other taxes payable | 41,047 | 76,781 | |||||||||||||||
Workers’ compensation liabilities | 29,459 | 29,459 | |||||||||||||||
Interest payable | 18,284 | 64,728 | |||||||||||||||
Warranty accrual | 4,240 | 4,653 | |||||||||||||||
Litigation reserves | 24,774 | 30,784 | |||||||||||||||
Current liability to discontinued operations | 29,381 | 64,404 | |||||||||||||||
Professional fees | 2,652 | 2,971 | |||||||||||||||
Current deferred tax liability | 3,075 | 3,075 | |||||||||||||||
Current liability to acquisition of KVS | 22,033 | 22,033 | |||||||||||||||
Other accrued liabilities | 16,227 | 22,484 | |||||||||||||||
$ | 584,748 | $ | 697,093 | ||||||||||||||
Investment income (loss) | ' | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Interest and dividend income | $ | 970 | $ | 776 | |||||||||||||
Gains (losses) on investments, net | 10 | 78,645 | -1 | ||||||||||||||
$ | 980 | $ | 79,421 | ||||||||||||||
(1) Includes realized gains of $76.2 million from the sale of short-term and other long-term investments and net realized gains of $2.4 million from the sale of our trading securities. | |||||||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | ' | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $ | 2,432 | $ | 3,411 | |||||||||||||
Termination of employment contract | — | 45,000 | -1 | ||||||||||||||
Litigation expenses | 3,060 | 6,161 | |||||||||||||||
Foreign currency transaction losses (gains) | (3,293 | ) | 4,317 | ||||||||||||||
Other losses (gains) | (723 | ) | 848 | ||||||||||||||
$ | 1,476 | $ | 59,737 | ||||||||||||||
(1) Represents a one-time stock grant valued at $27 million, which vested immediately and $18 million in cash awarded and paid to Mr. Petrello in connection with the termination of his prior employment agreement. See Note 9 — Commitments and Contingencies to our 2013 Annual Report for additional discussion. | |||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | ' | ||||||||||||||||
Unrealized | |||||||||||||||||
gains (losses) | Defined | ||||||||||||||||
Gains (losses) | on available- | benefit | |||||||||||||||
on cash flow | for-sale | pension plan | Foreign | ||||||||||||||
hedges | securities | items | currency items | Total | |||||||||||||
(In thousands)(1) | |||||||||||||||||
As of January 1, 2013 | $ | (2,793 | ) | $ | 134,229 | $ | (7,632 | ) | $ | 216,339 | -2 | $ | 340,143 | -2 | |||
Other comprehensive income (loss) before reclassifications, net of tax of $70 | — | 10,069 | — | (23,265 | ) | (13,196 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 94 | (75,523 | ) | 173 | — | (75,256 | ) | ||||||||||
Net other comprehensive income (loss) | 94 | (65,454 | ) | 173 | (23,265 | ) | (88,452 | ) | |||||||||
As of March 31, 2013 | $ | (2,699 | ) | $ | 68,775 | $ | (7,459 | ) | $ | 193,074 | $ | 251,691 | |||||
Gains (losses) | Unrealized | Defined | Foreign | Total | |||||||||||||
on cash flow | gains (losses) | benefit | currency items | ||||||||||||||
hedges | on available- | pension plan | |||||||||||||||
for-sale | items | ||||||||||||||||
securities | |||||||||||||||||
(In thousands)(1) | |||||||||||||||||
As of January 1, 2014 | $ | (2,419 | ) | $ | 71,742 | $ | (4,075 | ) | $ | 150,892 | -2 | $ | 216,140 | -2 | |||
Other comprehensive income (loss) before reclassifications | — | (19,248 | ) | — | (36,594 | ) | (55,842 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 93 | — | 75 | — | 168 | ||||||||||||
Net other comprehensive income (loss) | 93 | (19,248 | ) | 75 | (36,594 | ) | (55,674 | ) | |||||||||
As of March 31, 2014 | $ | (2,326 | ) | $ | 52,494 | $ | (4,000 | ) | $ | 114,298 | $ | 160,466 | |||||
(1) All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||
(2) Reflects amounts reclassified from foreign currency translation adjustment to retained earnings as discussed in Note 2 - Summary of Significant Accounting Policies. | |||||||||||||||||
Schedule of line items that were reclassified from net income | ' | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Line item in consolidated statement of income (loss) | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Investment income (loss), net of income taxes of $0 and $(451) | $ | — | $ | (75,974 | ) | ||||||||||||
Interest expense, net of income taxes of $60 and $59 | (153 | ) | (153 | ) | |||||||||||||
General and administrative expenses, net of income taxes of $48 and $108 | (123 | ) | (281 | ) | |||||||||||||
Total before tax | $ | 276 | $ | (75,540 | ) | ||||||||||||
Tax expense (benefit) | 108 | (284 | ) | ||||||||||||||
Reclassification adjustment for (gains)/losses included in net income (loss) | $ | 168 | $ | (75,256 | ) |
Assets_HeldforSale_and_Discont1
Assets Held-for-Sale and Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Assets Held-for-Sale and Discontinued Operations | ' | |||||||
Schedule of assets held for sale | ' | |||||||
March 31, | December 31, | |||||||
Assets Held-for-Sale | 2014 | 2013 | ||||||
(In thousands) | ||||||||
Oil and Gas | $ | 231,880 | $ | 239,936 | ||||
Rig Services | — | 3,328 | ||||||
$ | 231,880 | $ | 243,264 | |||||
Schedule of condensed statements of income (loss) from discontinued operations for each operating segment | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Operating revenues | ||||||||
Oil and Gas | $ | 5,057 | $ | 9,989 | ||||
Rig Services | $ | — | $ | 47,204 | ||||
Income (loss) from Oil and Gas discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | 2,618 | $ | 2,070 | ||||
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets | 1,002 | 2,000 | ||||||
Less: Income tax expense (benefit) | 101 | (283 | ) | |||||
Income (loss) from Oil and Gas discontinued operations, net of tax | $ | 1,515 | $ | 353 | ||||
Income (loss) from Rig Services discontinued operations: | ||||||||
Income (loss) from discontinued operations | $ | — | $ | 9,371 | ||||
Less: Impairment charges or other (gains) and losses on sale of long-lived assets | — | 323 | ||||||
Less: Income tax expense (benefit) | — | 2,390 | ||||||
Income (loss) from Rig Services discontinued operations, net of tax | $ | — | $ | 6,658 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Financial information with respect to operating segments | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: (1) | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 510,476 | $ | 484,773 | ||||
Canada | 111,621 | 126,867 | ||||||
International | 375,069 | 321,516 | ||||||
Rig Services (2) | 143,726 | 134,231 | ||||||
Subtotal Drilling & Rig Services (3) | 1,140,892 | 1,067,387 | ||||||
Completion & Production Services: | ||||||||
Completion Services | 227,899 | 262,138 | ||||||
Production Services | 275,400 | 251,571 | ||||||
Subtotal Completion & Production Services (4) | 503,299 | 513,709 | ||||||
Other reconciling items (5) | (57,018 | ) | (42,723 | ) | ||||
Total | $ | 1,587,173 | $ | 1,538,373 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Adjusted income (loss) derived from operating activities (1) (6) | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 72,494 | $ | 77,595 | ||||
Canada | 26,160 | 30,518 | ||||||
International | 48,119 | 21,469 | ||||||
Rig Services (2) | 8,728 | 1,287 | ||||||
Subtotal Drilling & Rig Services (3) | 155,501 | 130,869 | ||||||
Completion & Production Services: | ||||||||
Completion Services | (33,635 | ) | 17,756 | |||||
Production Services | 30,591 | 26,014 | ||||||
Subtotal Completion & Production Services (4) | (3,044 | ) | 43,770 | |||||
Other reconciling items (5) | (43,416 | ) | (31,501 | ) | ||||
Total adjusted income (loss) derived from operating activities | $ | 109,041 | $ | 143,138 | ||||
Interest expense | (44,810 | ) | (60,011 | ) | ||||
Investment income (loss) | 980 | 79,421 | ||||||
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net | (1,476 | ) | (59,737 | ) | ||||
Income (loss) from continuing operations before income taxes | 63,735 | 102,811 | ||||||
Income tax expense (benefit) | 14,008 | 9,854 | ||||||
Subsidiary preferred stock dividend | 750 | 750 | ||||||
Income (loss) from continuing operations, net of tax | 48,977 | 92,207 | ||||||
Income (loss) from discontinued operations, net of tax | 1,515 | 7,011 | ||||||
Net income (loss) | 50,492 | 99,218 | ||||||
Less: Net (income) loss attributable to noncontrolling interest | (573 | ) | (97 | ) | ||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | 99,121 | ||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Total assets: | ||||||||
Drilling & Rig Services: | ||||||||
U.S. | $ | 4,340,581 | $ | 4,248,630 | ||||
Canada | 608,533 | 608,018 | ||||||
International | 3,668,340 | 3,584,339 | ||||||
Rig Services | 479,252 | 474,275 | ||||||
Subtotal Drilling & Rig Services (7) | 9,096,706 | 8,915,262 | ||||||
Completion & Production Services (8) (9) | 2,314,481 | 2,394,865 | ||||||
Other reconciling items (5) | 775,886 | 849,684 | ||||||
Total assets: | $ | 12,187,073 | $ | 12,159,811 | ||||
(1) All periods present the operating activities of our wholly owned oil and gas businesses, our previously held equity interests in oil and gas joint ventures in Canada and Colombia, aircraft logistics operations and construction services as discontinued operations. | ||||||||
(2) Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. These services represent our other companies that are not aggregated into a reportable operating segment. | ||||||||
(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of ($2.5) million and $2.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
(4) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.1 for each of the three months ended March 31, 2014 and 2013. | ||||||||
(5) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets. | ||||||||
(6) Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the above table. | ||||||||
(7) Includes $54.4 million and $56.9 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2014 and December 31, 2013, respectively. | ||||||||
(8) Reflects assets allocated to the line of business necessary to conduct its operations. Further allocation to individual operating segments of Completion & Production Services is not available. | ||||||||
(9) Includes $8.7 million and $7.4 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2014 and December 31, 2013, respectively. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||
Condensed Consolidating Balance Sheets | ' | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 892 | $ | 4 | $ | 325,985 | $ | — | $ | 326,881 | ||||||||
Short-term investments | — | — | 97,886 | — | 97,886 | |||||||||||||
Assets held for sale | — | — | 231,880 | — | 231,880 | |||||||||||||
Accounts receivable, net | — | — | 1,454,368 | — | 1,454,368 | |||||||||||||
Inventory | — | — | 194,371 | — | 194,371 | |||||||||||||
Deferred income taxes | — | — | 133,667 | — | 133,667 | |||||||||||||
Other current assets | 50 | 30,214 | 221,951 | — | 252,215 | |||||||||||||
Total current assets | 942 | 30,218 | 2,660,108 | — | 2,691,268 | |||||||||||||
Long-term investments | — | — | 2,915 | — | 2,915 | |||||||||||||
Property, plant and equipment, net | — | 32,944 | 8,657,815 | — | 8,690,759 | |||||||||||||
Goodwill | — | — | 512,391 | — | 512,391 | |||||||||||||
Intercompany receivables | 153,352 | — | 1,787,393 | (1,940,745 | ) | — | ||||||||||||
Investment in consolidated affiliates | 5,806,653 | 6,088,501 | 1,749,780 | (13,644,934 | ) | — | ||||||||||||
Investment in unconsolidated affiliates | — | — | 63,069 | — | 63,069 | |||||||||||||
Other long-term assets | — | 32,630 | 194,041 | — | 226,671 | |||||||||||||
Total assets | $ | 5,960,947 | $ | 6,184,293 | $ | 15,627,512 | $ | (15,585,679 | ) | $ | 12,187,073 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Current portion of debt | $ | — | $ | — | $ | 5,296 | $ | — | $ | 5,296 | ||||||||
Trade accounts payable | 150 | 2 | 630,863 | — | 631,015 | |||||||||||||
Accrued liabilities | 328 | 18,094 | 566,326 | — | 584,748 | |||||||||||||
Income taxes payable | — | — | 17,083 | — | 17,083 | |||||||||||||
Total current liabilities | 478 | 18,096 | 1,219,568 | — | 1,238,142 | |||||||||||||
Long-term debt | — | 3,804,956 | 7,520 | — | 3,812,476 | |||||||||||||
Other long-term liabilities | — | 30,142 | 539,851 | — | 569,993 | |||||||||||||
Deferred income taxes | — | (237,076 | ) | 763,081 | — | 526,005 | ||||||||||||
Intercompany payable | — | 1,940,745 | — | (1,940,745 | ) | — | ||||||||||||
Total liabilities | 478 | 5,556,863 | 2,530,020 | (1,940,745 | ) | 6,146,616 | ||||||||||||
Subsidiary preferred stock | — | — | 69,188 | — | 69,188 | |||||||||||||
Shareholders’ equity | 5,960,469 | 627,430 | 13,017,504 | (13,644,934 | ) | 5,960,469 | ||||||||||||
Noncontrolling interest | — | — | 10,800 | — | 10,800 | |||||||||||||
Total equity | 5,960,469 | 627,430 | 13,028,304 | (13,644,934 | ) | 5,971,269 | ||||||||||||
Total liabilities and equity | $ | 5,960,947 | $ | 6,184,293 | $ | 15,627,512 | $ | (15,585,679 | ) | $ | 12,187,073 | |||||||
December 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash | $ | 730 | $ | 7,029 | $ | 382,156 | $ | — | $ | 389,915 | ||||||||
Short-term investments | — | — | 117,218 | — | 117,218 | |||||||||||||
Assets held for sale | — | — | 243,264 | — | 243,264 | |||||||||||||
Accounts receivable, net | 27 | — | 1,399,516 | — | 1,399,543 | |||||||||||||
Inventory | — | — | 209,793 | — | 209,793 | |||||||||||||
Deferred income taxes | — | — | 121,316 | — | 121,316 | |||||||||||||
Other current assets | 50 | 26,378 | 246,353 | — | 272,781 | |||||||||||||
Total current assets | 807 | 33,407 | 2,719,616 | — | 2,753,830 | |||||||||||||
Long-term investments | — | — | 3,236 | — | 3,236 | |||||||||||||
Property, plant and equipment, net | — | 33,815 | 8,563,998 | — | 8,597,813 | |||||||||||||
Goodwill | — | — | 512,964 | — | 512,964 | |||||||||||||
Intercompany receivables | 160,136 | 3,891 | 1,583,539 | (1,747,566 | ) | — | ||||||||||||
Investment in consolidated affiliates | 5,808,607 | 6,097,337 | 1,789,851 | (13,695,795 | ) | — | ||||||||||||
Investment in unconsolidated affiliates | — | — | 64,260 | — | 64,260 | |||||||||||||
Other long-term assets | — | 34,487 | 193,221 | — | 227,708 | |||||||||||||
Total assets | $ | 5,969,550 | $ | 6,202,937 | $ | 15,430,685 | $ | (15,443,361 | ) | $ | 12,159,811 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Current debt | $ | — | $ | — | $ | 10,185 | $ | — | $ | 10,185 | ||||||||
Trade accounts payable | 86 | 25 | 545,401 | — | 545,512 | |||||||||||||
Accrued liabilities | 378 | 65,947 | 630,768 | — | 697,093 | |||||||||||||
Income taxes payable | — | — | 58,634 | — | 58,634 | |||||||||||||
Total current liabilities | 464 | 65,972 | 1,244,988 | — | 1,311,424 | |||||||||||||
Long-term debt | — | 3,904,059 | 58 | — | 3,904,117 | |||||||||||||
Other long-term liabilities | — | 31,071 | 346,673 | — | 377,744 | |||||||||||||
Deferred income taxes | — | (213,233 | ) | 729,394 | — | 516,161 | ||||||||||||
Intercompany payable | — | 1,747,566 | — | (1,747,566 | ) | — | ||||||||||||
Total liabilities | 464 | 5,535,435 | 2,321,113 | (1,747,566 | ) | 6,109,446 | ||||||||||||
Subsidiary preferred stock | — | — | 69,188 | — | 69,188 | |||||||||||||
Shareholders’ equity | 5,969,086 | 667,502 | 13,028,293 | (13,695,795 | ) | 5,969,086 | ||||||||||||
Noncontrolling interest | — | — | 12,091 | — | 12,091 | |||||||||||||
Total equity | 5,969,086 | 667,502 | 13,040,384 | (13,695,795 | ) | 5,981,177 | ||||||||||||
Total liabilities and equity | $ | 5,969,550 | $ | 6,202,937 | $ | 15,430,685 | $ | (15,443,361 | ) | $ | 12,159,811 | |||||||
Condensed Consolidating Statements of Income (Loss) | ' | |||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Revenues and other income: | ||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 1,589,618 | $ | — | $ | 1,589,618 | ||||||||
Earnings from unconsolidated affiliates | — | — | (2,445 | ) | — | (2,445 | ) | |||||||||||
Earnings (losses) from consolidated affiliates | 52,583 | (8,760 | ) | (40,089 | ) | (3,734 | ) | — | ||||||||||
Investment income (loss) | — | — | 2,116 | (1,136 | ) | 980 | ||||||||||||
Total revenues and other income | 52,583 | (8,760 | ) | 1,549,200 | (4,870 | ) | 1,588,153 | |||||||||||
Costs and other deductions: | ||||||||||||||||||
Direct costs | — | — | 1,061,739 | — | 1,061,739 | |||||||||||||
General and administrative expenses | 2,453 | (319 | ) | 132,281 | (149 | ) | 134,266 | |||||||||||
Depreciation and amortization | — | 902 | 281,225 | — | 282,127 | |||||||||||||
Interest expense | — | 49,369 | (4,559 | ) | — | 44,810 | ||||||||||||
Intercompany interest expense | 62 | — | (62 | ) | — | — | ||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 149 | (223 | ) | 1,401 | 149 | 1,476 | ||||||||||||
Total costs and other deductions | 2,664 | 49,729 | 1,472,025 | — | 1,524,418 | |||||||||||||
Income from continuing operations before income tax | 49,919 | (58,489 | ) | 77,175 | (4,870 | ) | 63,735 | |||||||||||
Income tax expense (benefit) | — | (18,400 | ) | 32,408 | — | 14,008 | ||||||||||||
Subsidiary preferred stock dividend | — | — | 750 | — | 750 | |||||||||||||
Income (loss) from continuting operations, net of tax | 49,919 | (40,089 | ) | 44,017 | (4,870 | ) | 48,977 | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 1,515 | — | 1,515 | |||||||||||||
Net income (loss) | 49,919 | (40,089 | ) | 45,532 | (4,870 | ) | 50,492 | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest | — | — | (573 | ) | — | (573 | ) | |||||||||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | (40,089 | ) | $ | 44,959 | $ | (4,870 | ) | $ | 49,919 | ||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Revenues and other income: | ||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 1,535,478 | $ | — | $ | 1,535,478 | ||||||||
Earnings from unconsolidated affiliates | — | — | 2,895 | — | 2,895 | |||||||||||||
Earnings (losses) from consolidated affiliates | 107,873 | 42,320 | 2,023 | (152,216 | ) | — | ||||||||||||
Investment income (loss) | — | 16 | 79,405 | — | 79,421 | |||||||||||||
Intercompany interest income | — | 29 | — | (29 | ) | — | ||||||||||||
Total revenues and other income | 107,873 | 42,365 | 1,619,801 | (152,245 | ) | 1,617,794 | ||||||||||||
Costs and other deductions: | ||||||||||||||||||
Direct costs | — | — | 994,992 | — | 994,992 | |||||||||||||
General and administrative expenses | 1,834 | 37 | 129,151 | (144 | ) | 130,878 | ||||||||||||
Depreciation and amortization | — | 902 | 268,463 | — | 269,365 | |||||||||||||
Interest expense | — | 63,049 | (3,038 | ) | — | 60,011 | ||||||||||||
Intercompany interest expense | — | — | 29 | (29 | ) | — | ||||||||||||
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 6,918 | 21 | 52,654 | 144 | 59,737 | |||||||||||||
Total costs and other deductions | 8,752 | 64,009 | 1,442,251 | (29 | ) | 1,514,983 | ||||||||||||
Income from continuing operations before income tax | 99,121 | (21,644 | ) | 177,550 | (152,216 | ) | 102,811 | |||||||||||
Income tax expense (benefit) | — | (23,667 | ) | 33,521 | — | 9,854 | ||||||||||||
Subsidiary preferred stock dividend | — | — | 750 | — | 750 | |||||||||||||
Income (loss) from continuting operations, net of tax | 99,121 | 2,023 | 143,279 | (152,216 | ) | 92,207 | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 7,011 | — | 7,011 | |||||||||||||
Net income (loss) | 99,121 | 2,023 | 150,290 | (152,216 | ) | 99,218 | ||||||||||||
Less: Net (income) loss attributable to noncontrolling interest | — | — | (97 | ) | — | (97 | ) | |||||||||||
Net income (loss) attributable to Nabors | $ | 99,121 | $ | 2,023 | $ | 150,193 | $ | (152,216 | ) | $ | 99,121 | |||||||
Condensed Consolidating Statements of Other Comprehensive Income (Loss) | ' | |||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net income (loss) attributable to Nabors | $ | 49,919 | $ | (40,089 | ) | $ | 44,959 | $ | (4,870 | ) | $ | 49,919 | ||||||
Other comprehensive income (loss) before taxes: | ||||||||||||||||||
Translation adjustment attributable to Nabors | (36,594 | ) | (216 | ) | (36,813 | ) | 37,029 | (36,594 | ) | |||||||||
Unrealized gains/(losses) on marketable securities | (19,208 | ) | — | (19,208 | ) | 19,208 | (19,208 | ) | ||||||||||
Pension liability amortization and adjustment | 123 | 123 | 246 | (369 | ) | 123 | ||||||||||||
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 | 153 | (306 | ) | 153 | ||||||||||||
Other comprehensive income (loss) before tax | (55,526 | ) | 60 | (55,622 | ) | 55,562 | (55,526 | ) | ||||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | 148 | 236 | (384 | ) | 148 | ||||||||||||
Other comprehensive income (loss), net of tax | (55,674 | ) | (88 | ) | (55,858 | ) | 55,946 | (55,674 | ) | |||||||||
Comprehensive income (loss) attributable to Nabors | (5,755 | ) | (40,177 | ) | (10,899 | ) | 51,076 | (5,755 | ) | |||||||||
Net income (loss) attributable to noncontrolling interest | — | — | 573 | — | 573 | |||||||||||||
Translation adjustment to noncontrolling interest | — | — | (481 | ) | — | (481 | ) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | — | — | 92 | — | 92 | |||||||||||||
Comprehensive income (loss) | $ | (5,755 | ) | $ | (40,177 | ) | $ | (10,807 | ) | $ | 51,076 | $ | (5,663 | ) | ||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net income (loss) attributable to Nabors | $ | 99,121 | $ | 2,023 | $ | 150,193 | $ | (152,216 | ) | $ | 99,121 | |||||||
Other comprehensive income (loss) before taxes: | ||||||||||||||||||
Translation adjustment attributable to Nabors | (23,265 | ) | (52 | ) | (23,317 | ) | 23,369 | (23,265 | ) | |||||||||
Unrealized gains/(losses) on marketable securities: | ||||||||||||||||||
Unrealized gains/(losses) on marketable securities | 10,139 | 185 | 10,324 | (10,509 | ) | 10,139 | ||||||||||||
Less: reclassification adjustment for (gains)/losses on marketable securities | (75,974 | ) | (1,186 | ) | (77,160 | ) | 78,346 | (75,974 | ) | |||||||||
Unrealized gains/(losses) on marketable securities | (65,835 | ) | (1,001 | ) | (66,836 | ) | 67,837 | (65,835 | ) | |||||||||
Pension liability amortization and adjustment | 281 | 281 | 562 | (843 | ) | 281 | ||||||||||||
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 | 153 | (306 | ) | 153 | ||||||||||||
Other comprehensive income (loss) before tax | (88,666 | ) | (619 | ) | (89,438 | ) | 90,057 | (88,666 | ) | |||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (214 | ) | (214 | ) | (487 | ) | 701 | (214 | ) | |||||||||
Other comprehensive income (loss), net of tax | (88,452 | ) | (405 | ) | (88,951 | ) | 89,356 | (88,452 | ) | |||||||||
Comprehensive income (loss) attributable to Nabors | 10,669 | 1,618 | 61,242 | (62,860 | ) | 10,669 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | — | — | 97 | — | 97 | |||||||||||||
Translation adjustment to noncontrolling interest | — | — | (1,414 | ) | — | (1,414 | ) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | — | — | (1,317 | ) | — | (1,317 | ) | |||||||||||
Comprehensive income (loss) | $ | 10,669 | $ | 1,618 | $ | 59,925 | $ | (62,860 | ) | $ | 9,352 | |||||||
Condensed Consolidating Statements of Cash Flows | ' | |||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net cash provided by (used for) operating activities | $ | (1,579 | ) | $ | (83,877 | ) | $ | 514,731 | $ | 15,288 | $ | 444,563 | ||||||
Cash flows from investing activities: | ||||||||||||||||||
Purchase of investments | — | — | (286 | ) | — | (286 | ) | |||||||||||
Sales and maturities of investments | — | — | 733 | — | 733 | |||||||||||||
Cash paid for acquisition of businesses, net | — | — | (10,200 | ) | — | (10,200 | ) | |||||||||||
Investment in unconsolidated affiliates | — | — | (1,255 | ) | — | (1,255 | ) | |||||||||||
Capital expenditures | — | — | (396,465 | ) | — | (396,465 | ) | |||||||||||
Proceeds from sales of assets and insurance claims | — | — | 21,605 | — | 21,605 | |||||||||||||
Changes in intercompany balances | — | 176,446 | (176,446 | ) | — | — | ||||||||||||
Net cash provided by (used for) investing activities | — | 176,446 | (562,314 | ) | — | (385,868 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Increase (decrease) in cash overdrafts | — | — | (1,822 | ) | — | (1,822 | ) | |||||||||||
Proceeds from (payments for) issuance of common shares | 4,931 | — | — | — | 4,931 | |||||||||||||
Dividends to shareholders | (13,029 | ) | — | — | 1,136 | (11,893 | ) | |||||||||||
Proceeds from (payments for) commercial paper, net | — | (39,594 | ) | — | — | (39,594 | ) | |||||||||||
Proceeds from revolving credit facilities | — | — | 15,000 | — | 15,000 | |||||||||||||
Reduction in revolving credit facilities | — | (60,000 | ) | (7,500 | ) | — | (67,500 | ) | ||||||||||
Proceeds from (payments for) issuance of parent common shares to affiliates | 16,424 | — | — | (16,424 | ) | — | ||||||||||||
Other | (6,585 | ) | — | (5,000 | ) | — | (11,585 | ) | ||||||||||
Net cash (used for) provided by financing activities | 1,741 | (99,594 | ) | 678 | (15,288 | ) | (112,463 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (9,266 | ) | — | (9,266 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 162 | (7,025 | ) | (56,171 | ) | — | (63,034 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 730 | 7,029 | 382,156 | — | 389,915 | |||||||||||||
Cash and cash equivalents, end of period | $ | 892 | $ | 4 | $ | 325,985 | $ | — | $ | 326,881 | ||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||
Other | ||||||||||||||||||
Nabors | Nabors | Subsidiaries | ||||||||||||||||
(Parent/ | Delaware | (Non- | Consolidating | |||||||||||||||
Guarantor) | (Issuer) | Guarantors) | Adjustments | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 1,144 | $ | (138,791 | ) | $ | 304,142 | $ | 12,800 | $ | 179,295 | |||||||
Cash flows from investing activities: | ||||||||||||||||||
Sales and maturities of investments | — | — | 142,336 | — | 142,336 | |||||||||||||
Cash paid for acquisition of businesses, net | — | — | (37,516 | ) | — | (37,516 | ) | |||||||||||
Investment in unconsolidated affilaites | — | — | (12 | ) | — | (12 | ) | |||||||||||
Capital expenditures | — | — | (235,539 | ) | — | (235,539 | ) | |||||||||||
Proceeds from sales of assets and insurance claims | — | — | 6,605 | — | 6,605 | |||||||||||||
Cash paid for investments in consolidated affiliates | — | (100,000 | ) | (200,000 | ) | 300,000 | — | |||||||||||
Changes in intercompany balances | — | 54,192 | (54,192 | ) | — | — | ||||||||||||
Net cash provided by (used for) investing activities | — | (45,808 | ) | (378,318 | ) | 300,000 | (124,126 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Increase (decrease) in cash overdrafts | — | — | (1,975 | ) | — | (1,975 | ) | |||||||||||
Proceeds from (payments for) issuance of common shares | 1,027 | — | — | — | 1,027 | |||||||||||||
Dividends to shareholders | (12,891 | ) | — | — | — | (12,891 | ) | |||||||||||
Proceeds from (payments for) issuance of parent common shares to affiliates | 12,800 | — | — | (12,800 | ) | — | ||||||||||||
Proceeds from parent contributions | — | 100,000 | 200,000 | (300,000 | ) | — | ||||||||||||
Other | (2,773 | ) | (89 | ) | 4,257 | — | 1,395 | |||||||||||
Net cash (used for) provided by financing activities | (1,837 | ) | 99,911 | 202,282 | (312,800 | ) | (12,444 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (2,759 | ) | — | (2,759 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (693 | ) | (84,688 | ) | 125,347 | — | 39,966 | |||||||||||
Cash and cash equivalents, beginning of period | 1,639 | 106,778 | 416,505 | — | 524,922 | |||||||||||||
Cash and cash equivalents, end of period | $ | 946 | $ | 22,090 | $ | 541,852 | $ | — | $ | 564,888 |
Nature_of_Operations_Details
Nature of Operations (Details) | 3 Months Ended |
Mar. 31, 2014 | |
item | |
rig | |
Nature of Operations | ' |
Number of major business lines | 2 |
Number of platform rigs actively marketed | 39 |
Number of jack-up rigs actively marketed | 7 |
Number of barge rigs actively marketed | 4 |
Number of hydraulic horsepower pressure pumping services in key basins throughout United States and Canada | 800,000 |
Nature of operations | ' |
Number of actively marketed land drilling rigs | 493 |
Minimum number of countries in which oil and gas land drilling operations are conducted | 20 |
Joint Venture in Saudi Arabia | ' |
Nature of Operations | ' |
Ownership percentage | 51.00% |
Number of rigs actively markets in joint venture | 5 |
U.S. | ' |
Nature of Operations | ' |
Number of rigs marketing for land well-servicing and workover service | 445 |
Canada | ' |
Nature of Operations | ' |
Number of rigs marketing for land well-servicing and workover service | 98 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Retained earnings | $4,342,690,000 | $4,304,664,000 |
Adjustment of opening balance | Revision of CTA | ' | ' |
Retained earnings | 91,500,000 | ' |
Accumulated Other Comprehensive Income | $91,500,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory | ' | ' |
Raw materials | $121,780 | $128,606 |
Work-in-progress | 27,009 | 26,762 |
Finished goods | 45,582 | 54,425 |
Total inventory | $194,371 | $209,793 |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Short-term Investments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents and short-term investments | ' | ' |
Cash and cash equivalents, fair value | $326,881 | $389,915 |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 97,886 | 117,218 |
Available-for-sale securities, gross unrealized holding gains | 53,309 | 72,530 |
Available-for-sale securities, gross unrealized holding losses | -38 | -56 |
Total short-term investments | 97,886 | 117,218 |
Total cash, cash equivalents and short-term investments, fair value | 424,767 | 507,133 |
Total cash, cash equivalents and short-term investments, gross unrealized gains | 53,309 | 72,530 |
Total cash, cash equivalents and short-term investments, gross unrealized losses | -38 | -56 |
Available-for-sale equity securities | ' | ' |
Available-for-sale equities securities | ' | ' |
Available-for-sale equity securities, fair value | 77,591 | 96,942 |
Available-for-sale debt securities: | ' | ' |
Available-for-sale securities, gross unrealized holding gains | 49,045 | 68,395 |
Available-for-sale debt securities | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 20,295 | 20,276 |
Available-for-sale securities, gross unrealized holding gains | 4,264 | 4,135 |
Available-for-sale securities, gross unrealized holding losses | -38 | -56 |
Corporate debt securities | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 19,525 | 19,388 |
Available-for-sale securities, gross unrealized holding gains | 4,252 | 4,122 |
Mortgage-backed debt securities | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 209 | 210 |
Available-for-sale securities, gross unrealized holding gains | 11 | 11 |
Mortgage-CMO debt securities | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 20 | 20 |
Available-for-sale securities, gross unrealized holding losses | -1 | -2 |
Asset-backed debt securities | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total available-for-sale debt securities, fair value | 541 | 658 |
Available-for-sale securities, gross unrealized holding gains | 1 | 2 |
Available-for-sale securities, gross unrealized holding losses | -37 | -54 |
Total Short-term investments | ' | ' |
Available-for-sale debt securities: | ' | ' |
Total short-term investments | 97,886 | 117,218 |
Total short-term investments, gross unrealized gains | 53,309 | 72,530 |
Total short-term investments, gross unrealized holding losses | ($38) | ($56) |
Cash_and_Cash_Equivalents_and_3
Cash and Cash Equivalents and Short-term Investments (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Gross unrealized losses of cash and cash equivalents and short-term investments | ' |
Available-for-sale securities, less than 12 months | $20 |
Available-for-sale securities, more than 12 months | 361 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, aggregate losses | 1 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 37 |
Available-for-sale debt securities | ' |
Gross unrealized losses of cash and cash equivalents and short-term investments | ' |
Available-for-sale securities, less than 12 months | 20 |
Available-for-sale securities, more than 12 months | 361 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, aggregate losses | 1 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | 37 |
Mortgage-CMO debt securities | ' |
Gross unrealized losses of cash and cash equivalents and short-term investments | ' |
Available-for-sale securities, less than 12 months | 20 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, aggregate losses | 1 |
Asset-backed debt securities | ' |
Gross unrealized losses of cash and cash equivalents and short-term investments | ' |
Available-for-sale securities, more than 12 months | 361 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $37 |
Cash_and_Cash_Equivalents_and_4
Cash and Cash Equivalents and Short-term Investments (Details 3) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt securities: | ' |
Due after one year through five years | $15,525 |
Due in more than five years | 4,770 |
Total debt securities | $20,295 |
Cash_and_Cash_Equivalents_and_5
Cash and Cash Equivalents and Short-term Investments (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Available-for-sale: | ' | ' |
Proceeds from sales and maturities | $135 | $86,601 |
Realized gains (losses), net | ' | $75,974 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements | ' | ' |
Amount of transfers of financial assets between Level 1 and Level 2 measures | $0 | ' |
Available-for-sale equity securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 77,591 | 96,942 |
Recurring | ' | ' |
Assets: | ' | ' |
Total short-term investments | 97,886 | ' |
Recurring | Available-for-sale equity securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 77,591 | ' |
Recurring | Corporate debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 19,525 | ' |
Recurring | Mortgage-backed debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 209 | ' |
Recurring | Mortgage-CMO debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 20 | ' |
Recurring | Asset-backed debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 541 | ' |
Recurring | Level 1 | ' | ' |
Assets: | ' | ' |
Total short-term investments | 77,270 | ' |
Recurring | Level 1 | Available-for-sale equity securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 76,729 | ' |
Recurring | Level 1 | Asset-backed debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 541 | ' |
Recurring | Level 2 | ' | ' |
Assets: | ' | ' |
Total short-term investments | 20,616 | ' |
Recurring | Level 2 | Available-for-sale equity securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 862 | ' |
Recurring | Level 2 | Corporate debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 19,525 | ' |
Recurring | Level 2 | Mortgage-backed debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | 209 | ' |
Recurring | Level 2 | Mortgage-CMO debt securities | ' | ' |
Assets: | ' | ' |
Short term investments: | $20 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value of Financial Instruments | ' | ' |
Carrying Value | $3,886,960 | $3,983,490 |
Fair Value | 4,204,394 | 4,251,473 |
Subsidiary preferred stock, carrying value | 69,188 | 69,188 |
Subsidiary preferred stock, fair value | 69,000 | 69,000 |
2.35% senior notes due September 2016 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 349,836 | 349,820 |
Fair Value | 357,851 | 354,694 |
Interest rate on senior notes due (as a percent) | 2.35% | ' |
6.15% senior notes due February 2018 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 970,234 | 969,928 |
Fair Value | 1,102,511 | 1,097,480 |
Interest rate on senior notes due (as a percent) | 6.15% | ' |
9.25% senior notes due January 2019 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 339,607 | 339,607 |
Fair Value | 427,966 | 428,733 |
Interest rate on senior notes due (as a percent) | 9.25% | ' |
5.00% senior notes due September 2020 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 698,208 | 697,947 |
Fair Value | 748,720 | 731,955 |
Interest rate on senior notes due (as a percent) | 5.00% | ' |
4.625% senior notes due September 2021 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 698,024 | 698,148 |
Fair Value | 723,030 | 709,793 |
Interest rate on senior notes due (as a percent) | 4.63% | ' |
5.10% senior notes due September 2023 | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 348,797 | 348,765 |
Fair Value | 362,250 | 349,731 |
Interest rate on senior notes due (as a percent) | 5.10% | ' |
Revolving Credit Facility | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 117,500 | 170,000 |
Fair Value | 117,500 | 170,000 |
Commercial paper | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 290,250 | 329,844 |
Fair Value | 290,250 | 329,844 |
Other | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Carrying Value | 5,316 | 10,243 |
Fair Value | $5,316 | $10,243 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Share-based compensation disclosures | ' | ' | ' |
Share Based Compensation expense | $10,700,000 | $32,900,000 | ' |
Liability related to awards | 158,676,000 | ' | 172,803,000 |
Restricted Stock Award | Employees and Director | ' | ' | ' |
Share-based compensation disclosures | ' | ' | ' |
Shares awarded during period | 1,106,919 | 4,061,027 | ' |
Aggregate value of restricted stock awards at date of grant | 25,200,000 | 66,800,000 | ' |
Fair value awards vested | 22,400,000 | 35,500,000 | ' |
Restricted Stock Award | Maximum | Employees and Director | ' | ' | ' |
Share-based compensation disclosures | ' | ' | ' |
Vesting period of shares | '4 years | ' | ' |
Restricted Stock Based on Performance Conditions | Executives | ' | ' | ' |
Share-based compensation disclosures | ' | ' | ' |
Shares awarded during period | 362,311 | ' | ' |
Vesting period of shares | '3 years | ' | ' |
Liability related to awards | 400,000 | ' | ' |
Restricted Stock Based on Market Conditions | ' | ' | ' |
Assumptions used to value grant date fair value | ' | ' | ' |
Risk free interest rate (as a percent | 0.80% | 0.41% | ' |
Expected volatility (as a percent) | 40.00% | 46.00% | ' |
Closing stock price (in dollars per share) | $18.19 | $16.53 | ' |
Expected term (in years) | '2 years 11 months 19 days | '2 years 9 months 25 days | ' |
Restricted Stock Based on Market Conditions | Executives | ' | ' | ' |
Share-based compensation disclosures | ' | ' | ' |
Shares awarded during period | 395,550 | 353,933 | ' |
Aggregate value of restricted stock awards at date of grant | 4,500,000 | 3,700,000 | ' |
Stock options | Employees and Director | ' | ' | ' |
Share-based compensation disclosures | ' | ' | ' |
Total intrinsic value of stock options exercised | 6,000,000 | 700,000 | ' |
Total fair value of option vested during the period | $1,500,000 | $3,800,000 | ' |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
2.35% senior notes due September 2016 | 2.35% senior notes due September 2016 | 6.15% senior notes due February 2018 | 6.15% senior notes due February 2018 | 9.25% senior notes due January 2019 | 9.25% senior notes due January 2019 | 5.00% senior notes due September 2020 | 5.00% senior notes due September 2020 | 4.625% senior notes due September 2021 | 4.625% senior notes due September 2021 | 5.10% senior notes due September 2023 | 5.10% senior notes due September 2023 | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Commercial paper | Commercial paper | |||
Minimum | |||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes | ' | ' | $349,836,000 | $349,820,000 | $970,234,000 | $969,928,000 | $339,607,000 | $339,607,000 | $698,208,000 | $697,947,000 | $698,024,000 | $698,148,000 | $348,797,000 | $348,765,000 | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,500,000 | 170,000,000 | ' | ' | ' |
Other | 5,316,000 | 10,243,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | 3,817,772,000 | 3,914,302,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 290,250,000 | 329,844,000 |
Less: Current portion | 5,296,000 | 10,185,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 3,812,476,000 | 3,904,117,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on senior notes due (as a percent) | ' | ' | 2.35% | ' | 6.15% | ' | 9.25% | ' | 5.00% | ' | 4.63% | ' | 5.10% | ' | ' | ' | ' | ' | ' |
Aggregate amount of senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 290,300,000 | ' |
Weighted average interest rate on revolving credit facilities (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.46% | ' | ' | 0.33% | ' |
Remaining period to maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Remaining availability under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,500,000 | ' | ' | ' | ' |
Common_Shares_Details
Common Shares (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Feb. 21, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Common shares | ' | ' | ' |
Issuance of common shares for stock options exercised (in shares) | ' | 0.5 | 0.1 |
Proceeds from stock options exercised | ' | $4,900,000 | $1,000,000 |
Common shares withheld by company | ' | 0.3 | 0.2 |
Common shares fair value | ' | 6,600,000 | 2,800,000 |
Common stock dividend declared (in dollars per share) | $0.04 | ' | ' |
Cash dividends paid | ' | $11,893,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Mr. Restrepo, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Employment contracts | ' |
New term of the employment agreement | '365 days |
Automatic extension period | '1 year |
Annual base salary | $0.60 |
Employment benefit due to termination or contructive termination without cause | '30 days |
Employment agreement termination without cause, benefit as a ratio to 3 year average base salary and bonus | 2.99 |
Employment agreement termination without cause, benefit base period | '3 years |
Minimum | ' |
Employment contracts | ' |
Number of financial performance goals used to calculate annual bonus | 1 |
Number of operational performance goals used to calculate annual bonus | 1 |
TSR Shares | ' |
Employment contracts | ' |
Vesting period | '3 years |
Maximum value of award that will vest as multiplier of base salary | 2 |
Value of award that will vest as percentage of base salary | 100.00% |
Restricted stock | ' |
Employment contracts | ' |
Vesting period | '4 years |
Award grant date fair value | $4.90 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Mexico | Mexico | Mexico | |
Minimum | Maximum | |||
Income tax | ' | ' | ' | ' |
Aggregate remaining amounts assessed or expected to assessed range | ' | ' | $30 | $35 |
Reduction in reserves | ' | 20 | ' | ' |
Self-Insurance disclosures | ' | ' | ' | ' |
Employer's liability claims subject to per-occurrence deductible | 3 | ' | ' | ' |
Workers automobile claims | 2.5 | ' | ' | ' |
General liability claims subject to per-occurrence deductible | 5 | ' | ' | ' |
Deductions in land rigs and for offshore rigs | $5 | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2006 | Mar. 31, 2014 | Mar. 19, 2012 | Mar. 31, 2014 |
Court of Ouargla Customs Infringement | Court of Ouargla Customs Infringement | Court of Ouargla Customs Infringement | Court of Ouargla Foreign Currency Controls | Court of Ouargla Foreign Currency Controls | Court of Ouargla Foreign Currency Controls | Court of Ouargla Foreign Currency Controls | NGH2L | NGH2L | |
Maximum | Maximum | Maximum | |||||||
Commitments and Contingencies, Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Judgment against the reporting entity at current exchange rate | ' | $17.70 | ' | $34.80 | ' | ' | ' | ' | ' |
Payment of contract amount in foreign currency | ' | ' | ' | ' | ' | 7.5 | ' | ' | ' |
Payment of contract amount in domestic currency | ' | ' | ' | ' | ' | 3.2 | ' | ' | ' |
Approximate multiplier of the amount at issue for fines and penalties | ' | ' | ' | ' | 4 | ' | ' | ' | ' |
Amount paid to customs authority | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Posted security paid | 1.33 | ' | ' | ' | ' | ' | ' | ' | ' |
Potential judgment in excess of accrual | ' | ' | 13.3 | ' | ' | ' | 26.8 | ' | ' |
Escrow Deposit | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Monetary damages sought based on alleged breach of contract by NGH2L and alleged tortious interference with contractual relations by Parex | ' | ' | ' | ' | ' | ' | ' | ' | $750 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 4) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of total maximum amount of financial guarantees issued | ' |
Remainder of 2014 | $115,018 |
2015 | 40,408 |
Thereafter | 19 |
Total | $155,445 |
Earnings_Losses_Per_Share_Deta
Earnings (Losses) Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income (loss) (numerator): | ' | ' |
Income (loss) from continuing operations, net of tax | $48,977 | $92,207 |
Less: Net (income) loss attributable to noncontrolling interest | -573 | -97 |
Less: (earnings) losses allocated to unvested shareholders | -733 | -814 |
Adjusted income (loss) from continuing operations - basic and diluted | 47,671 | 91,296 |
Income (loss) from discontinued operations, net of tax | $1,515 | $7,011 |
Earnings (losses) per share: | ' | ' |
Basic from continuing operations (in dollars per share) | $0.16 | $0.31 |
Basic from discontinued operations (in dollars per share) | $0.01 | $0.03 |
Total Basic (in dollars per share) | $0.17 | $0.34 |
Diluted from continuing operations (in dollars per share) | $0.16 | $0.31 |
Diluted from discontinued operations (in dollars per share) | ' | $0.02 |
Total Diluted (in dollars per share) | $0.16 | $0.33 |
Shares (denominator): | ' | ' |
Weighted-average number of shares outstanding - basic | 296,210 | 291,687 |
Net effect of dilutive stock options, warrants and restricted stock awards based on the if-converted method (in shares) | 2,840 | 2,483 |
Weighted-average number of shares outstanding - diluted | 299,050 | 294,170 |
Earnings_Losses_Per_Share_Deta1
Earnings (Losses) Per Share (Details 2) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Debt | ' | ' |
Average number of options and warrants excluded from diluted earnings (losses) per share (in shares) | 7,853,509 | 12,452,263 |
Supplemental_Balance_Sheet_Inc2
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ' | ' |
Accrued compensation | $158,676 | $172,803 |
Deferred revenue | 234,900 | 202,918 |
Other taxes payable | 41,047 | 76,781 |
Workers' compensation liabilities | 29,459 | 29,459 |
Interest payable | 18,284 | 64,728 |
Warranty accrual | 4,240 | 4,653 |
Litigation reserves | 24,774 | 30,784 |
Current liability to discontinued operations | 29,381 | 64,404 |
Professional fees | 2,652 | 2,971 |
Current deferred tax liability | 3,075 | 3,075 |
Current liability to acquisition of KVS | 22,033 | 22,033 |
Other accrued liabilities | 16,227 | 22,484 |
Accrued liabilities | $584,748 | $697,093 |
Supplemental_Balance_Sheet_Inc3
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Investment income (loss) | ' | ' |
Interest and dividend income | $970 | $776 |
Gains (losses) on investments, net | 10 | 78,645 |
Investment income (loss) | $980 | $79,421 |
Supplemental_Balance_Sheet_Inc4
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details 3) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | ' |
Realized gains on short-term and long term investments | $76.20 |
Net unrealized gains (loss) from trading securities | $2.40 |
Supplemental_Balance_Sheet_Inc5
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | ' | ' |
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $2,432 | $3,411 |
Termination of employment contract | ' | 45,000 |
Litigation expenses | 3,060 | 6,161 |
Foreign currency transaction losses (gains) | -3,293 | 4,317 |
Other losses (gains) | -723 | 848 |
Losses (gains) on sales and retirements of long-lived assets and other expense (income), net | 1,476 | 59,737 |
Accumulated other comprehensive income (loss) | ' | ' |
Balance at the beginning of the period | 216,140 | 340,143 |
Other comprehensive income (loss) before reclassifications, net of tax | -55,842 | -13,196 |
Other comprehensive income (loss) before reclassifications, tax portion | ' | 70 |
Amount reclassified from accumulated other comprehensive income (loss) | 168 | -75,256 |
Other comprehensive income (loss), net of tax | -55,674 | -88,452 |
Balance at the end of the period | 160,466 | 251,691 |
Gains (losses) on cash flow hedges | ' | ' |
Accumulated other comprehensive income (loss) | ' | ' |
Balance at the beginning of the period | -2,419 | -2,793 |
Amount reclassified from accumulated other comprehensive income (loss) | 93 | 94 |
Other comprehensive income (loss), net of tax | 93 | 94 |
Balance at the end of the period | -2,326 | -2,699 |
Unrealized gains (losses) on available-for-sale securities | ' | ' |
Accumulated other comprehensive income (loss) | ' | ' |
Balance at the beginning of the period | 71,742 | 134,229 |
Other comprehensive income (loss) before reclassifications, net of tax | -19,248 | 10,069 |
Amount reclassified from accumulated other comprehensive income (loss) | ' | -75,523 |
Other comprehensive income (loss), net of tax | -19,248 | -65,454 |
Balance at the end of the period | 52,494 | 68,775 |
Defined benefit pension plan items | ' | ' |
Accumulated other comprehensive income (loss) | ' | ' |
Balance at the beginning of the period | -4,075 | -7,632 |
Amount reclassified from accumulated other comprehensive income (loss) | 75 | 173 |
Other comprehensive income (loss), net of tax | 75 | 173 |
Balance at the end of the period | -4,000 | -7,459 |
Foreign currency items | ' | ' |
Accumulated other comprehensive income (loss) | ' | ' |
Balance at the beginning of the period | 150,892 | 216,339 |
Other comprehensive income (loss) before reclassifications, net of tax | -36,594 | -23,265 |
Other comprehensive income (loss), net of tax | -36,594 | -23,265 |
Balance at the end of the period | $114,298 | $193,074 |
Supplemental_Balance_Sheet_Inc6
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details 5) (Petrello, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Employment agreement | ' |
Value of incentives in the form of one-time stock grant | $18 |
Common stock | ' |
Employment agreement | ' |
Value of incentives in the form of one-time stock grant | $27 |
Supplemental_Balance_Sheet_Inc7
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | ' | ' |
Investment income (loss) | $980 | $79,421 |
Interest expense | 44,810 | 60,011 |
General and administrative expenses | 134,266 | 130,878 |
Income (loss) from continuing operations before income tax | 63,735 | 102,811 |
Tax expense (benefit) | -14,008 | -9,854 |
Net income (loss) attributable to Nabors | 49,919 | 99,121 |
Unrealized gains (losses) on available-for-sale securities | Reclassification adjustment for (gains)/losses included in net income (loss) | ' | ' |
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | ' | ' |
Investment income (loss) | ' | -75,974 |
Investment income (loss), income taxes | 0 | -451 |
Interest expense | -153 | -153 |
Interest expense, income taxes | 60 | 59 |
General and administrative expenses | -123 | -281 |
General and administrative expenses, income taxes | 48 | 108 |
Income (loss) from continuing operations before income tax | 276 | -75,540 |
Tax expense (benefit) | 108 | -284 |
Net income (loss) attributable to Nabors | $168 | ($75,256) |
Assets_HeldforSale_and_Discont2
Assets Held-for-Sale and Discontinued Operations (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets held-for-sale | ' | ' |
Assets held for sale | $231,880 | $243,264 |
Oil and gas | ' | ' |
Assets held-for-sale | ' | ' |
Assets held for sale | 231,880 | 239,936 |
Rig Services | ' | ' |
Assets held-for-sale | ' | ' |
Assets held for sale | ' | $3,328 |
Assets_HeldforSale_and_Discont3
Assets Held-for-Sale and Discontinued Operations (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Discontinued operations | ' | ' | ' |
Undiscounted contractual commitments | $145,400,000 | ' | ' |
Liability related to discontinue operation | 64,900,000 | ' | 113,600,000 |
Current liability to discontinued operations | 29,381,000 | ' | 64,404,000 |
Income (loss) from discontinued operations | ' | ' | ' |
Income (loss) from discontinued operations, net of tax | 1,515,000 | 7,011,000 | ' |
Oil and gas | ' | ' | ' |
Operating revenues | ' | ' | ' |
Operating revenues | 5,057,000 | 9,989,000 | ' |
Income (loss) from discontinued operations | ' | ' | ' |
Income (loss) from discontinued operations | 2,618,000 | 2,070,000 | ' |
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets | 1,002,000 | 2,000,000 | ' |
Less: Income tax expense (benefit) | 101,000 | -283,000 | ' |
Income (loss) from discontinued operations, net of tax | 1,515,000 | 353,000 | ' |
Rig Services | ' | ' | ' |
Operating revenues | ' | ' | ' |
Operating revenues | ' | 47,204,000 | ' |
Income (loss) from discontinued operations | ' | ' | ' |
Income (loss) from discontinued operations | ' | 9,371,000 | ' |
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets | ' | 323,000 | ' |
Less: Income tax expense (benefit) | ' | 2,390,000 | ' |
Income (loss) from discontinued operations, net of tax | ' | $6,658,000 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | $1,587,173,000 | $1,538,373,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 109,041,000 | 143,138,000 | ' |
Interest expense | -44,810,000 | -60,011,000 | ' |
Investment income (loss) | 980,000 | 79,421,000 | ' |
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net | -1,476,000 | -59,737,000 | ' |
Income (loss) from continuing operations before income tax | 63,735,000 | 102,811,000 | ' |
Income tax expense (benefit) | 14,008,000 | 9,854,000 | ' |
Subsidiary preferred stock dividend | 750,000 | 750,000 | ' |
Income (loss) from continuing operations, net of tax | 48,977,000 | 92,207,000 | ' |
Income (loss) from discontinued operations, net of tax | 1,515,000 | 7,011,000 | ' |
Net income (loss) | 50,492,000 | 99,218,000 | ' |
Less: Net (income) loss attributable to noncontrolling interest | -573,000 | -97,000 | ' |
Net income (loss) attributable to Nabors | 49,919,000 | 99,121,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 12,187,073,000 | ' | 12,159,811,000 |
Equity in earnings (losses) from unconsolidated affiliates, net | -2,445,000 | 2,896,000 | ' |
Operating segment | Drilling and Rig Services | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 1,140,892,000 | 1,067,387,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 155,501,000 | 130,869,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 9,096,706,000 | ' | 8,915,262,000 |
Equity in earnings (losses) from unconsolidated affiliates, net | -2,500,000 | 2,800,000 | ' |
Investments in unconsolidated affiliates accounted for using equity method | 54,400,000 | ' | 56,900,000 |
Operating segment | Drilling and Rig Services | Reportable subsegments | U.S. | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 510,476,000 | 484,773,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 72,494,000 | 77,595,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 4,340,581,000 | ' | 4,248,630,000 |
Operating segment | Drilling and Rig Services | Reportable subsegments | Canada | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 111,621,000 | 126,867,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 26,160,000 | 30,518,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 608,533,000 | ' | 608,018,000 |
Operating segment | Drilling and Rig Services | Reportable subsegments | International | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 375,069,000 | 321,516,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 48,119,000 | 21,469,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 3,668,340,000 | ' | 3,584,339,000 |
Operating segment | Drilling and Rig Services | Reportable subsegments | Rig Services | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 143,726,000 | 134,231,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 8,728,000 | 1,287,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 479,252,000 | ' | 474,275,000 |
Operating segment | Completion and Production Services | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 503,299,000 | 513,709,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | -3,044,000 | 43,770,000 | ' |
ASSETS | ' | ' | ' |
Total assets | 2,314,481,000 | ' | 2,394,865,000 |
Equity in earnings (losses) from unconsolidated affiliates, net | 100,000 | 100,000 | ' |
Investments in unconsolidated affiliates accounted for using equity method | 8,700,000 | ' | 7,400,000 |
Operating segment | Completion and Production Services | Reportable subsegments | Production Services | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 275,400,000 | 251,571,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | 30,591,000 | 26,014,000 | ' |
Operating segment | Completion and Production Services | Reportable subsegments | Completion Services | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | 227,899,000 | 262,138,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | -33,635,000 | 17,756,000 | ' |
Other reconciling items | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | ' | ' | ' |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | -57,018,000 | -42,723,000 | ' |
Adjusted income (loss) derived from operating activities | ' | ' | ' |
Adjusted income (loss) derived from operating activities | -43,416,000 | -31,501,000 | ' |
ASSETS | ' | ' | ' |
Total assets | $775,886,000 | ' | $849,684,000 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $326,881,000 | $389,915,000 | $564,888,000 | $524,922,000 |
Short-term investments | 97,886,000 | 117,218,000 | ' | ' |
Assets held for sale | 231,880,000 | 243,264,000 | ' | ' |
Accounts receivable, net | 1,454,368,000 | 1,399,543,000 | ' | ' |
Inventory | 194,371,000 | 209,793,000 | ' | ' |
Deferred income taxes | 133,667,000 | 121,316,000 | ' | ' |
Other current assets | 252,215,000 | 272,781,000 | ' | ' |
Total current assets | 2,691,268,000 | 2,753,830,000 | ' | ' |
Long-term investments | 2,915,000 | 3,236,000 | ' | ' |
Property, plant and equipment, net | 8,690,759,000 | 8,597,813,000 | ' | ' |
Goodwill | 512,391,000 | 512,964,000 | ' | ' |
Investment in unconsolidated affiliates | 63,069,000 | 64,260,000 | ' | ' |
Other long-term assets | 226,671,000 | 227,708,000 | ' | ' |
Total assets | 12,187,073,000 | 12,159,811,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt | 5,296,000 | 10,185,000 | ' | ' |
Trade accounts payable | 631,015,000 | 545,512,000 | ' | ' |
Accrued liabilities | 584,748,000 | 697,093,000 | ' | ' |
Income taxes payable | 17,083,000 | 58,634,000 | ' | ' |
Total current liabilities | 1,238,142,000 | 1,311,424,000 | ' | ' |
Long-term debt | 3,812,476,000 | 3,904,117,000 | ' | ' |
Other long-term liabilities | 569,993,000 | 377,744,000 | ' | ' |
Deferred income taxes | 526,005,000 | 516,161,000 | ' | ' |
Total liabilities | 6,146,616,000 | 6,109,446,000 | ' | ' |
Subsidiary preferred stock | 69,188,000 | 69,188,000 | ' | ' |
Shareholders' equity | 5,960,469,000 | 5,969,086,000 | ' | ' |
Noncontrolling interest | 10,800,000 | 12,091,000 | ' | ' |
Total equity | 5,971,269,000 | 5,981,177,000 | 5,984,685,000 | 5,957,117,000 |
Total liabilities and equity | 12,187,073,000 | 12,159,811,000 | ' | ' |
Nabors (Parent/Guarantor) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 892,000 | 730,000 | 946,000 | 1,639,000 |
Accounts receivable, net | ' | 27,000 | ' | ' |
Other current assets | 50,000 | 50,000 | ' | ' |
Total current assets | 942,000 | 807,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 150,000 | 86,000 | ' | ' |
Accrued liabilities | 328,000 | 378,000 | ' | ' |
Total current liabilities | 478,000 | 464,000 | ' | ' |
Nabors Delaware (Issuer) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 4,000 | 7,029,000 | 22,090,000 | 106,778,000 |
Other current assets | 30,214,000 | 26,378,000 | ' | ' |
Total current assets | 30,218,000 | 33,407,000 | ' | ' |
Property, plant and equipment, net | 32,944,000 | 33,815,000 | ' | ' |
Other long-term assets | 32,630,000 | 34,487,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 2,000 | 25,000 | ' | ' |
Accrued liabilities | 18,094,000 | 65,947,000 | ' | ' |
Total current liabilities | 18,096,000 | 65,972,000 | ' | ' |
Long-term debt | 3,804,956,000 | 3,904,059,000 | ' | ' |
Other long-term liabilities | 30,142,000 | 31,071,000 | ' | ' |
Deferred income taxes | -237,076,000 | -213,233,000 | ' | ' |
Other Subsidiaries (Non-Guarantors) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 325,985,000 | 382,156,000 | 541,852,000 | 416,505,000 |
Short-term investments | 97,886,000 | 117,218,000 | ' | ' |
Assets held for sale | 231,880,000 | 243,264,000 | ' | ' |
Accounts receivable, net | 1,454,368,000 | 1,399,516,000 | ' | ' |
Inventory | 194,371,000 | 209,793,000 | ' | ' |
Deferred income taxes | 133,667,000 | 121,316,000 | ' | ' |
Other current assets | 221,951,000 | 246,353,000 | ' | ' |
Total current assets | 2,660,108,000 | 2,719,616,000 | ' | ' |
Long-term investments | 2,915,000 | 3,236,000 | ' | ' |
Property, plant and equipment, net | 8,657,815,000 | 8,563,998,000 | ' | ' |
Goodwill | 512,391,000 | 512,964,000 | ' | ' |
Other long-term assets | 194,041,000 | 193,221,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of debt | 5,296,000 | 10,185,000 | ' | ' |
Trade accounts payable | 630,863,000 | 545,401,000 | ' | ' |
Accrued liabilities | 566,326,000 | 630,768,000 | ' | ' |
Income taxes payable | 17,083,000 | 58,634,000 | ' | ' |
Total current liabilities | 1,219,568,000 | 1,244,988,000 | ' | ' |
Long-term debt | 7,520,000 | 58,000 | ' | ' |
Other long-term liabilities | 539,851,000 | 346,673,000 | ' | ' |
Deferred income taxes | 763,081,000 | 729,394,000 | ' | ' |
Subsidiary preferred stock | 69,188,000 | 69,188,000 | ' | ' |
Noncontrolling interest | 10,800,000 | 12,091,000 | ' | ' |
Reportable Legal Entities | Nabors (Parent/Guarantor) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | 153,352,000 | 160,136,000 | ' | ' |
Investment in consolidated affiliates | 5,806,653,000 | 5,808,607,000 | ' | ' |
Total assets | 5,960,947,000 | 5,969,550,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Total liabilities | 478,000 | 464,000 | ' | ' |
Shareholders' equity | 5,960,469,000 | 5,969,086,000 | ' | ' |
Total equity | 5,960,469,000 | 5,969,086,000 | ' | ' |
Total liabilities and equity | 5,960,947,000 | 5,969,550,000 | ' | ' |
Reportable Legal Entities | Nabors Delaware (Issuer) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | ' | 3,891,000 | ' | ' |
Investment in consolidated affiliates | 6,088,501,000 | 6,097,337,000 | ' | ' |
Total assets | 6,184,293,000 | 6,202,937,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payable | 1,940,745,000 | 1,747,566,000 | ' | ' |
Total liabilities | 5,556,863,000 | 5,535,435,000 | ' | ' |
Shareholders' equity | 627,430,000 | 667,502,000 | ' | ' |
Total equity | 627,430,000 | 667,502,000 | ' | ' |
Total liabilities and equity | 6,184,293,000 | 6,202,937,000 | ' | ' |
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | 1,787,393,000 | 1,583,539,000 | ' | ' |
Investment in consolidated affiliates | 1,749,780,000 | 1,789,851,000 | ' | ' |
Investment in unconsolidated affiliates | 63,069,000 | 64,260,000 | ' | ' |
Total assets | 15,627,512,000 | 15,430,685,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Total liabilities | 2,530,020,000 | 2,321,113,000 | ' | ' |
Shareholders' equity | 13,017,504,000 | 13,028,293,000 | ' | ' |
Total equity | 13,028,304,000 | 13,040,384,000 | ' | ' |
Total liabilities and equity | 15,627,512,000 | 15,430,685,000 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | -1,940,745,000 | -1,747,566,000 | ' | ' |
Investment in consolidated affiliates | -13,644,934,000 | -13,695,795,000 | ' | ' |
Total assets | -15,585,679,000 | -15,443,361,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payable | -1,940,745,000 | -1,747,566,000 | ' | ' |
Total liabilities | -1,940,745,000 | -1,747,566,000 | ' | ' |
Shareholders' equity | -13,644,934,000 | -13,695,795,000 | ' | ' |
Total equity | -13,644,934,000 | -13,695,795,000 | ' | ' |
Total liabilities and equity | ($15,585,679,000) | ($15,443,361,000) | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues and other income: | ' | ' |
Operating revenues | $1,589,618 | $1,535,478 |
Earnings from unconsolidated affiliates | -2,445 | 2,895 |
Investment income (loss) | 980 | 79,421 |
Total revenues and other income | 1,588,153 | 1,617,794 |
Costs and other deductions: | ' | ' |
Direct costs | 1,061,739 | 994,992 |
General and administrative expenses | 134,266 | 130,878 |
Depreciation and amortization | 282,127 | 269,365 |
Interest expense | 44,810 | 60,011 |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 1,476 | 59,737 |
Total costs and other deductions | 1,524,418 | 1,514,983 |
Income (loss) from continuing operations before income tax | 63,735 | 102,811 |
Income tax expense (benefit) | 14,008 | 9,854 |
Subsidiary preferred stock dividend | 750 | 750 |
Income (loss) from continuing operations, net of tax | 48,977 | 92,207 |
Income (loss) from discontinued operations, net of tax | 1,515 | 7,011 |
Net income (loss) | 50,492 | 99,218 |
Less: Net (income) loss attributable to noncontrolling interest | -573 | -97 |
Net income (loss) attributable to Nabors | 49,919 | 99,121 |
Nabors Delaware (Issuer) | ' | ' |
Revenues and other income: | ' | ' |
Investment income (loss) | ' | 16 |
Costs and other deductions: | ' | ' |
Depreciation and amortization | 902 | 902 |
Interest expense | 49,369 | 63,049 |
Other Subsidiaries (Non-Guarantors) | ' | ' |
Revenues and other income: | ' | ' |
Operating revenues | 1,589,618 | 1,535,478 |
Earnings from unconsolidated affiliates | -2,445 | 2,895 |
Investment income (loss) | 2,116 | 79,405 |
Costs and other deductions: | ' | ' |
Direct costs | 1,061,739 | 994,992 |
Depreciation and amortization | 281,225 | 268,463 |
Interest expense | -4,559 | -3,038 |
Income tax expense (benefit) | 32,408 | 33,521 |
Subsidiary preferred stock dividend | 750 | 750 |
Income (loss) from discontinued operations, net of tax | 1,515 | 7,011 |
Less: Net (income) loss attributable to noncontrolling interest | -573 | -97 |
Reportable Legal Entities | Nabors (Parent/Guarantor) | ' | ' |
Revenues and other income: | ' | ' |
Earnings (losses) from consolidated affiliates | 52,583 | 107,873 |
Total revenues and other income | 52,583 | 107,873 |
Costs and other deductions: | ' | ' |
General and administrative expenses | 2,453 | 1,834 |
Intercompany interest expense | 62 | ' |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 149 | 6,918 |
Total costs and other deductions | 2,664 | 8,752 |
Income (loss) from continuing operations before income tax | 49,919 | 99,121 |
Income (loss) from continuing operations, net of tax | 49,919 | 99,121 |
Net income (loss) | 49,919 | 99,121 |
Net income (loss) attributable to Nabors | 49,919 | 99,121 |
Reportable Legal Entities | Nabors Delaware (Issuer) | ' | ' |
Revenues and other income: | ' | ' |
Earnings (losses) from consolidated affiliates | -8,760 | 42,320 |
Intercompany interest income | ' | 29 |
Total revenues and other income | -8,760 | 42,365 |
Costs and other deductions: | ' | ' |
General and administrative expenses | -319 | 37 |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | -223 | 21 |
Total costs and other deductions | 49,729 | 64,009 |
Income (loss) from continuing operations before income tax | -58,489 | -21,644 |
Income tax expense (benefit) | -18,400 | -23,667 |
Income (loss) from continuing operations, net of tax | -40,089 | 2,023 |
Net income (loss) | -40,089 | 2,023 |
Net income (loss) attributable to Nabors | -40,089 | 2,023 |
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ' | ' |
Revenues and other income: | ' | ' |
Earnings (losses) from consolidated affiliates | -40,089 | 2,023 |
Total revenues and other income | 1,549,200 | 1,619,801 |
Costs and other deductions: | ' | ' |
General and administrative expenses | 132,281 | 129,151 |
Intercompany interest expense | -62 | 29 |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 1,401 | 52,654 |
Total costs and other deductions | 1,472,025 | 1,442,251 |
Income (loss) from continuing operations before income tax | 77,175 | 177,550 |
Income (loss) from continuing operations, net of tax | 44,017 | 143,279 |
Net income (loss) | 45,532 | 150,290 |
Net income (loss) attributable to Nabors | 44,959 | 150,193 |
Consolidating Adjustments | ' | ' |
Revenues and other income: | ' | ' |
Earnings (losses) from consolidated affiliates | -3,734 | -152,216 |
Investment income (loss) | -1,136 | ' |
Intercompany interest income | ' | -29 |
Total revenues and other income | -4,870 | -152,245 |
Costs and other deductions: | ' | ' |
General and administrative expenses | -149 | -144 |
Intercompany interest expense | ' | -29 |
Losses (gains) on sales and disposals of long-lived assets and other expense (income), net | 149 | 144 |
Total costs and other deductions | ' | -29 |
Income (loss) from continuing operations before income tax | -4,870 | -152,216 |
Income (loss) from continuing operations, net of tax | -4,870 | -152,216 |
Net income (loss) | -4,870 | -152,216 |
Net income (loss) attributable to Nabors | ($4,870) | ($152,216) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statements of Other Comprehensive Income | ' | ' |
Net income (loss) attributable to Nabors | $49,919 | $99,121 |
Other comprehensive income (loss) before taxes: | ' | ' |
Translation adjustment attributable to Nabors | -36,594 | -23,265 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | -19,208 | 10,139 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | -75,974 |
Unrealized gains/(losses) on marketable securities | -19,208 | -65,835 |
Pension liability amortization and adjustment | 123 | 281 |
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 |
Other comprehensive income (loss), before tax | -55,526 | -88,666 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | -214 |
Other comprehensive income (loss), net of tax | -55,674 | -88,452 |
Comprehensive income (loss) attributable to Nabors | -5,755 | 10,669 |
Net income (loss) attributable to noncontrolling interest | 573 | 97 |
Translation adjustment to noncontrolling interest | 481 | 1,414 |
Comprehensive income (loss) attributable to noncontrolling interest | 92 | -1,317 |
Comprehensive income (loss) | -5,663 | 9,352 |
Other Subsidiaries (Non-Guarantors) | ' | ' |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Net income (loss) attributable to noncontrolling interest | 573 | 97 |
Reportable Legal Entities | Nabors (Parent/Guarantor) | ' | ' |
Statements of Other Comprehensive Income | ' | ' |
Net income (loss) attributable to Nabors | 49,919 | 99,121 |
Other comprehensive income (loss) before taxes: | ' | ' |
Translation adjustment attributable to Nabors | -36,594 | -23,265 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | ' | 10,139 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | -75,974 |
Unrealized gains/(losses) on marketable securities | -19,208 | -65,835 |
Pension liability amortization and adjustment | 123 | 281 |
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 |
Other comprehensive income (loss), before tax | -55,526 | -88,666 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | -214 |
Other comprehensive income (loss), net of tax | -55,674 | -88,452 |
Comprehensive income (loss) attributable to Nabors | -5,755 | 10,669 |
Comprehensive income (loss) | -5,755 | 10,669 |
Reportable Legal Entities | Nabors Delaware (Issuer) | ' | ' |
Statements of Other Comprehensive Income | ' | ' |
Net income (loss) attributable to Nabors | -40,089 | 2,023 |
Other comprehensive income (loss) before taxes: | ' | ' |
Translation adjustment attributable to Nabors | -216 | -52 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | ' | 185 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | -1,186 |
Unrealized gains/(losses) on marketable securities | ' | -1,001 |
Pension liability amortization and adjustment | 123 | 281 |
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 |
Other comprehensive income (loss), before tax | 60 | -619 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 148 | -214 |
Other comprehensive income (loss), net of tax | -88 | -405 |
Comprehensive income (loss) attributable to Nabors | -40,177 | 1,618 |
Comprehensive income (loss) | -40,177 | 1,618 |
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ' | ' |
Statements of Other Comprehensive Income | ' | ' |
Net income (loss) attributable to Nabors | 44,959 | 150,193 |
Other comprehensive income (loss) before taxes: | ' | ' |
Translation adjustment attributable to Nabors | -36,813 | -23,317 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | ' | 10,324 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | -77,160 |
Unrealized gains/(losses) on marketable securities | -19,208 | -66,836 |
Pension liability amortization and adjustment | 246 | 562 |
Unrealized gains/(losses) and amortization of cash flow hedges | 153 | 153 |
Other comprehensive income (loss), before tax | -55,622 | -89,438 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 236 | -487 |
Other comprehensive income (loss), net of tax | -55,858 | -88,951 |
Comprehensive income (loss) attributable to Nabors | -10,899 | 61,242 |
Translation adjustment to noncontrolling interest | -481 | -1,414 |
Comprehensive income (loss) attributable to noncontrolling interest | 92 | -1,317 |
Comprehensive income (loss) | -10,807 | 59,925 |
Consolidating Adjustments | ' | ' |
Statements of Other Comprehensive Income | ' | ' |
Net income (loss) attributable to Nabors | -4,870 | -152,216 |
Other comprehensive income (loss) before taxes: | ' | ' |
Translation adjustment attributable to Nabors | 37,029 | 23,369 |
Unrealized gains/(losses) on marketable securities: | ' | ' |
Unrealized gains/(losses) on marketable securities | ' | -10,509 |
Less: reclassification adjustment for (gains)/losses on marketable securities | ' | 78,346 |
Unrealized gains/(losses) on marketable securities | 19,208 | 67,837 |
Pension liability amortization and adjustment | -369 | -843 |
Unrealized gains/(losses) and amortization of cash flow hedges | -306 | -306 |
Other comprehensive income (loss), before tax | 55,562 | 90,057 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | -384 | 701 |
Other comprehensive income (loss), net of tax | 55,946 | 89,356 |
Comprehensive income (loss) attributable to Nabors | 51,076 | -62,860 |
Comprehensive income (loss) | $51,076 | ($62,860) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidating Statements Of Cash Flows | ' | ' |
Net cash provided by (used for) operating activities | $444,563 | $179,295 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -286 | ' |
Sales and maturities of investments | 733 | 142,336 |
Cash paid for acquisition of businesses, net | -10,200 | -37,516 |
Investment in unconsolidated affiliates | -1,255 | -12 |
Capital expenditures | -396,465 | -235,539 |
Proceeds from sales of assets and insurance claims | 21,605 | 6,605 |
Net cash used for investing activities | -385,868 | -124,126 |
Cash flows from financing activities: | ' | ' |
Increase (decrease) in cash overdrafts | -1,822 | -1,975 |
Proceeds from (payments for) issuance of common shares | 4,931 | 1,027 |
Dividends to shareholders | -11,893 | ' |
Proceeds from (payments for) commercial paper, net | -39,594 | -12,891 |
Proceeds from revolving credit facilities | 15,000 | ' |
Reduction in revolving credit facilities | -67,500 | ' |
Other | -11,585 | 1,395 |
Net cash (used for) provided by financing activities | -112,463 | -12,444 |
Effect of exchange rate changes on cash and cash equivalents | -9,266 | -2,759 |
Net increase (decrease) in cash and cash equivalents | -63,034 | 39,966 |
Cash and cash equivalents, beginning of period | 389,915 | 524,922 |
Cash and cash equivalents, end of period | 326,881 | 564,888 |
Nabors (Parent/Guarantor) | ' | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from (payments for) issuance of common shares | 4,931 | 1,027 |
Other | -6,585 | -2,773 |
Net increase (decrease) in cash and cash equivalents | 162 | -693 |
Cash and cash equivalents, beginning of period | 730 | 1,639 |
Cash and cash equivalents, end of period | 892 | 946 |
Nabors Delaware (Issuer) | ' | ' |
Cash flows from investing activities: | ' | ' |
Changes in intercompany balances | 176,446 | 54,192 |
Cash flows from financing activities: | ' | ' |
Proceeds from (payments for) commercial paper, net | -39,594 | ' |
Reduction in revolving credit facilities | -60,000 | ' |
Other | ' | -89 |
Net increase (decrease) in cash and cash equivalents | -7,025 | -84,688 |
Cash and cash equivalents, beginning of period | 7,029 | 106,778 |
Cash and cash equivalents, end of period | 4 | 22,090 |
Other Subsidiaries (Non-Guarantors) | ' | ' |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -286 | ' |
Sales and maturities of investments | 733 | 142,336 |
Cash paid for acquisition of businesses, net | -10,200 | -37,516 |
Investment in unconsolidated affiliates | -1,255 | -12 |
Capital expenditures | -396,465 | -235,539 |
Proceeds from sales of assets and insurance claims | 21,605 | 6,605 |
Changes in intercompany balances | -176,446 | -54,192 |
Cash flows from financing activities: | ' | ' |
Increase (decrease) in cash overdrafts | -1,822 | -1,975 |
Proceeds from revolving credit facilities | 15,000 | ' |
Reduction in revolving credit facilities | -7,500 | ' |
Other | -5,000 | 4,257 |
Effect of exchange rate changes on cash and cash equivalents | -9,266 | -2,759 |
Net increase (decrease) in cash and cash equivalents | -56,171 | 125,347 |
Cash and cash equivalents, beginning of period | 382,156 | 416,505 |
Cash and cash equivalents, end of period | 325,985 | 541,852 |
Reportable Legal Entities | Nabors (Parent/Guarantor) | ' | ' |
Condensed Consolidating Statements Of Cash Flows | ' | ' |
Net cash provided by (used for) operating activities | -1,579 | 1,144 |
Cash flows from financing activities: | ' | ' |
Dividends to shareholders | -13,029 | -12,891 |
Proceeds from (payments for) issuance of parent common shares to affiliates | 16,424 | 12,800 |
Net cash (used for) provided by financing activities | 1,741 | -1,837 |
Reportable Legal Entities | Nabors Delaware (Issuer) | ' | ' |
Condensed Consolidating Statements Of Cash Flows | ' | ' |
Net cash provided by (used for) operating activities | -83,877 | -138,791 |
Cash flows from investing activities: | ' | ' |
Cash paid for investments in consolidated affiliates | ' | -100,000 |
Net cash used for investing activities | 176,446 | -45,808 |
Cash flows from financing activities: | ' | ' |
Proceeds from parent contributions | ' | 100,000 |
Net cash (used for) provided by financing activities | -99,594 | 99,911 |
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ' | ' |
Condensed Consolidating Statements Of Cash Flows | ' | ' |
Net cash provided by (used for) operating activities | 514,731 | 304,142 |
Cash flows from investing activities: | ' | ' |
Cash paid for investments in consolidated affiliates | ' | -200,000 |
Net cash used for investing activities | -562,314 | -378,318 |
Cash flows from financing activities: | ' | ' |
Proceeds from parent contributions | ' | 200,000 |
Net cash (used for) provided by financing activities | 678 | 202,282 |
Consolidating Adjustments | ' | ' |
Condensed Consolidating Statements Of Cash Flows | ' | ' |
Net cash provided by (used for) operating activities | 15,288 | 12,800 |
Cash flows from investing activities: | ' | ' |
Cash paid for investments in consolidated affiliates | ' | 300,000 |
Net cash used for investing activities | ' | 300,000 |
Cash flows from financing activities: | ' | ' |
Dividends to shareholders | 1,136 | ' |
Proceeds from (payments for) issuance of parent common shares to affiliates | -16,424 | -12,800 |
Proceeds from parent contributions | ' | -300,000 |
Net cash (used for) provided by financing activities | ($15,288) | ($312,800) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
Feb. 21, 2014 | Apr. 25, 2014 | |
Subsequent event | ||
Subsequent event | ' | ' |
Dividend declared (in dollars per share) | $0.04 | $0.04 |