Nabors Industries (NBR) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information
Entity Registrant Name	NABORS INDUSTRIES LTD
Entity Central Index Key	1,163,739
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
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		283,428,125
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 177,043	$ 254,530
Short-term investments	23,607	20,059
Assets held for sale	69,436	75,678
Accounts receivable, net	503,966	784,671
Inventory	141,934	153,824
Other current assets	156,094	187,135
Total current assets	1,072,080	1,475,897
Property, plant and equipment, net	6,616,711	7,027,802
Goodwill	167,131	166,659
Investment in unconsolidated affiliates	889	415,177
Other long-term assets	567,693	452,305
Total assets	8,424,504	9,537,840
Current liabilities:
Current portion of debt	120	6,508
Trade accounts payable	215,627	271,984
Accrued liabilities	548,337	686,613
Income taxes payable	23,778	41,394
Total current liabilities	787,862	1,006,499
Long-term debt	3,475,978	3,655,200
Other long-term liabilities	551,004	552,947
Deferred income taxes	10,966	29,326
Total liabilities	4,825,810	5,243,972
Commitments and contingencies (Note 7)
Shareholders' equity:
Common shares, par value $0.001 per share: Authorized common shares 800,000; issued 333,007 and 330,526, respectively	333	331
Capital in excess of par value	2,513,417	2,493,100
Accumulated other comprehensive income (loss)	(11,925)	(47,593)
Retained earnings	2,386,053	3,131,134
Less: treasury shares, at cost, 49,673 and 49,342 common shares, respectively	(1,295,949)	(1,294,262)
Total shareholders' equity	3,591,929	4,282,710
Noncontrolling interest	6,765	11,158
Total equity	3,598,694	4,293,868
Total liabilities and equity	$ 8,424,504	$ 9,537,840

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares, shares authorized	800,000	800,000
Common shares, shares issued	333,007	330,526
Treasury shares, at cost	49,673	49,342

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues and other income
Operating revenues	$ 519,729	$ 847,553	$ 1,688,891	$ 3,125,565
Earnings (losses) from unconsolidated affiliates	2	(35,100)	(221,918)	(29,714)
Investment income (loss)	310	(22)	923	2,128
Total revenues and other income	520,041	812,431	1,467,896	3,097,979
Costs and other deductions:
Direct costs	306,436	518,174	1,012,738	1,926,306
General and administrative expenses	56,078	72,032	175,036	263,272
Research and Engineering	8,476	9,716	24,818	31,899
Depreciation and amortization	220,713	240,107	655,444	739,322
Interest expense	46,836	44,448	137,803	135,518
Other, net	10,392	259,731	267,403	205,227
Total costs and other deductions	648,931	1,144,208	2,273,242	3,301,544
Income (loss) from continuing operations before income taxes	(128,890)	(331,777)	(805,346)	(203,565)
Income tax expense (benefit):
Current	8,600	13,735	39,323	46,682
Deferred	(39,651)	(94,633)	(163,621)	(81,840)
Total income tax expense (benefit)	(31,051)	(80,898)	(124,298)	(35,158)
Income (loss) from continuing operations, net of tax	(97,839)	(250,879)	(681,048)	(168,407)
Income (loss) from discontinued operations, net of tax	(12,187)	(45,275)	(14,097)	(41,067)
Net income (loss)	(110,026)	(296,154)	(695,145)	(209,474)
Less: Net (income) loss attributable to noncontrolling interest	(1,185)	320	990	453
Net income (loss) attributable to Nabors	(111,211)	(295,834)	(694,155)	(209,021)
Amounts attributable to Nabors:
Net income (loss) from continuing operations	(99,024)	(250,559)	(680,058)	(167,954)
Net income (loss) from discontinued operations	(12,187)	(45,275)	(14,097)	(41,067)
Net income (loss) attributable to Nabors	$ (111,211)	$ (295,834)	$ (694,155)	$ (209,021)
Earnings (losses) per share:
Basic from continuing operations (in dollars per share)	$ (0.35)	$ (0.86)	$ (2.41)	$ (0.57)
Basic from discontinued operations (in dollars per share)	(0.04)	(0.16)	(0.05)	(0.15)
Total Basic (in dollars per share)	(0.39)	(1.02)	(2.46)	(0.72)
Diluted from continuing operations (in dollars per share)	(0.35)	(0.86)	(2.41)	(0.57)
Diluted from discontinued operations (in dollars per share)	(0.04)	(0.16)	(0.05)	(0.15)
Total Diluted (in dollars per share)	$ (0.39)	$ (1.02)	$ (2.46)	$ (0.72)
Weighted-average number of common shares outstanding:
Basic (in shares)	276,707	284,112	276,369	285,186
Diluted (in shares)	276,707	284,112	276,369	285,186

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss) attributable to Nabors	$ (209,021)
Translation adjustment attributable to Nabors
Unrealized gain (loss) on translation adjustment	(95,125)
Less: reclassification adjustment for realized loss on translation adjustment	5,365
Translation adjustment attributable to Nabors	(89,760)
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities	(10,127)
Unrealized gains (losses) on marketable securities	(10,127)
Pension liability amortization and adjustment	828
Unrealized gains (losses) and amortization on cash flow hedges	459
Other comprehensive income (loss), before tax	(98,600)
Income tax expense (benefit) related to items of other comprehensive income (loss)	485
Other comprehensive income (loss), net of tax	(99,085)
Comprehensive income (loss) attributable to Nabors	(308,106)
Net income (loss) attributable to noncontrolling interest	(453)
Translation adjustment attributable to noncontrolling interest	(1,194)
Comprehensive income (loss) attributable to noncontrolling interest	(1,647)
Comprehensive income (loss)	$ (309,753)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (695,145)	$ (209,474)
Adjustments to net income (loss):
Depreciation and amortization	657,541	741,919
Deferred income tax expense (benefit)	(168,413)	(100,751)
Impairments and other charges	45,809	62,838
Losses (gains) on debt buyback	(6,707)
Losses (gains) on long-lived assets, net	13,608	13,202
Impairments on equity method holdings	216,242	180,591
Share-based compensation	24,070	39,024
Foreign currency transaction losses (gains), net	5,916	7,443
Gain on merger transaction, net		(47,074)
Gains on acquisitions		(2,308)
Equity in (earnings) losses of unconsolidated affiliates, net of dividends	221,918	38,909
Other	6,957	7,259
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	255,455	449,847
Inventory	14,660	9,483
Other current assets	30,192	146,123
Other long-term assets	(377)	263,582
Trade accounts payable and accrued liabilities	(187,771)	(699,765)
Income taxes payable	(22,496)	(40,756)
Other long-term liabilities	(6,691)	(255,081)
Net cash provided by operating activities	404,768	605,011
Cash flows from investing activities:
Purchases of investments	(24)	(8)
Sales and maturities of investments	643	859
Cash paid for acquisition of businesses, net		(57,909)
Investment in unconsolidated affiliates		(445)
Capital expenditures	(284,950)	(744,047)
Proceeds from sales of assets and insurance claims	26,597	30,164
Proceeds from merger transaction		650,050
Other	(19)	1,700
Net cash (used for) provided by investing activities	(257,753)	(119,636)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	5	363
Proceeds from revolving credit facilities	560,000
Reduction in revolving credit facilities	(260,000)	(450,000)
Proceeds from (payments for) issuance of common shares	562	1,198
Repurchase of common shares	(1,687)	(44,978)
Reduction in long term debt	(492,625)
Dividends to shareholders	(33,927)	(52,489)
Proceeds from (payment for) commercial paper, net	15,000	(162,544)
Proceeds from term Loan		300,000
Payments on term loan		(300,000)
Proceeds from (payments for) short-term borrowings	(6,388)	2,792
Other	(4,313)	(7,534)
Net cash (used for) provided by financing activities	(223,373)	(713,192)
Effect of exchange rate changes on cash and cash equivalents	(1,129)	(21,966)
Net increase (decrease) in cash and cash equivalents	(77,487)	(249,783)
Cash and cash equivalents, beginning of period	254,530	501,149
Cash and cash equivalents, end of period	$ 177,043	$ 251,366

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Shares	Capital in Excess of Par Value	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Shares	Non-controlling Interest	Total
Balance at the beginning of the period at Dec. 31, 2014	$ 328	$ 2,452,261	$ 77,522	$ 3,573,172	$ (1,194,664)	$ 10,170	$ 4,918,789
Balance (in shares) at Dec. 31, 2014	328,196
Increase (Decrease) in Equity
Net income (loss)				(209,021)		(453)	(209,474)
Dividends to shareholders ($0.06 per share)				(52,489)			(52,489)
Repurchase of treasury shares					(78,399)		(78,399)
Other comprehensive income (loss), net of tax			(99,085)			(1,194)	(100,279)
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options		1,198					1,198
Issuance of common shares for stock options exercised (in shares)	130
Share-based compensation		39,024					39,024
Other	$ 3	(7,537)				563	(6,971)
Other (in shares)	2,269
Balance at the end of the period at Sep. 30, 2015	$ 331	2,484,946	(21,563)	3,311,662	(1,273,063)	9,086	4,511,399
Balance (in shares) at Sep. 30, 2015	330,595
Balance at the beginning of the period at Dec. 31, 2015	$ 331	2,493,100	(47,593)	3,131,134	(1,294,262)	11,158	4,293,868
Balance (in shares) at Dec. 31, 2015	330,526
Increase (Decrease) in Equity
Net income (loss)				(694,155)		(990)	(695,145)
Dividends to shareholders ($0.06 per share)				(50,926)			(50,926)
Repurchase of treasury shares					(1,687)		(1,687)
Other comprehensive income (loss), net of tax			35,668			371	36,039
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options		562					562
Issuance of common shares for stock options exercised (in shares)	57
Share-based compensation		24,070					24,070
Other	$ 2	(4,315)				(3,774)	(8,087)
Other (in shares)	2,424
Balance at the end of the period at Sep. 30, 2016	$ 333	$ 2,513,417	$ (11,925)	$ 2,386,053	$ (1,295,949)	$ 6,765	$ 3,598,694
Balance (in shares) at Sep. 30, 2016	333,007

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	Jul. 29, 2016	Sep. 30, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Dividend declared (in dollars per share)	$ 0.06	$ 0.06	$ 0.06

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 30, 2016
Nature of Operations
Nature of Operations	Note 1 Nature of Operations 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. We own and operate the world’s largest land-based drilling rig fleet and are a leading provider of offshore platform, workover and drilling rigs in the United States and numerous international markets. As a global provider of services for land-based and offshore oil and natural gas wells, our fleet of rigs and drilling-related equipment as of September 30, 2016 includes: · 430 actively marketed rigs for land-based drilling operations in the United States, Canada and approximately 20 other countries throughout the world; and · 42 actively marketed rigs for offshore drilling operations in the United States and multiple international markets. We also provide innovative drilling technology and equipment and comprehensive well-site services including engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, rig instrumentation, data collection and other support services in many of the most significant oil and gas markets in the world. In addition, we manufacture and lease or sell top drives and other rig equipment. Our Drilling & Rig Services business is comprised of our global land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation, optimization software and directional drilling services. Our Drilling & Rig Services business consists of four reportable operating segments: U.S., Canada, International and Rig Services. On March 24, 2015, we completed the merger (the “Merger”) of our Completion & Production Services business with C&J Energy Services, Inc. (“C&J Energy”). In the Merger and related transactions, our wholly-owned interest in our Completion & Production Services business was exchanged for cash and an equity interest in the combined entity, C&J Energy Services Ltd. (“CJES”), and was accounted for as an unconsolidated affiliate as of the acquisition date through June 30, 2016. As a result of the Merger, we reported our share of the earnings (losses) of CJES through earnings (losses) from unconsolidated affiliates in our condensed consolidated statements of income (loss). Prior to the Merger, our Completion & Production Services business conducted our operations involved in the completion, life-of-well maintenance and plugging and abandonment of wells in the United States and Canada. These services included stimulation, coiled-tubing, cementing, wireline, workover, well-servicing and fluids management. As we no longer consolidate the results of operations from our historical Completion & Production Services business, our results of operations for the nine months ended September 30, 2015 are not directly comparable to the nine months ended September 30, 2016. On July 20, 2016, CJES voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Based on the current reorganization plans, we no longer expect to maintain any significant influence over CJES. As a result, beginning in the third quarter of 2016, we ceased accounting for our investment in CJES as an equity method investment and now report this investment at our estimate of fair value. Due to the uncertainties around the eventual outcome of the bankruptcy process, we have reduced the carrying value of our currently held shares of CJES to zero. We continue to monitor the voluntary reorganization process and defend our interests in the bankruptcy proceedings. See further discussion in Note 3 — Investments in Unconsolidated Affiliates. On May 24, 2015, we paid $106.0 million in cash to acquire the remaining 49% equity interest in Nabors Arabia Company Limited (“Nabors Arabia”), our former joint venture in Saudi Arabia, making it a wholly owned subsidiary. The effects of the acquisition and the operating results of Nabors Arabia are included in the accompanying unaudited condensed consolidated financial statements beginning on the acquisition date, and are reflected in our International drilling segment.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 Summary of Significant Accounting Policies Interim Financial Information The accompanying unaudited consolidated condensed financial statements of Nabors have been prepared in conformity with the generally accepted accounting principles 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 together with our annual report on Form 10-K for the year ended December 31, 2015, as amended (“2015 Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments necessary to state fairly our financial position as of September 30, 2016 and the results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented herein. Interim results for the nine months ended September 30, 2016 may not be indicative of results that will be realized for the full year ending December 31, 2016. Principles of Consolidation Our condensed 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 condensed consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our condensed consolidated balance sheets. We have historically recorded our share of the net income (loss) of our equity method investment in CJES on a one-quarter lag, as we are not able to obtain the financial information of CJES on a timely basis. During the third quarter of 2016, CJES filed for bankruptcy, at which time we ceased accounting for our investment in CJES as an equity method investment and now report this investment at our estimate of fair value. See Note 3 — Investments in Unconsolidated Affiliates. Revenue Recognition We recognize revenues and costs on daywork contracts daily as the work progresses. For certain contracts, we receive lump-sum payments for the mobilization of rigs and other drilling equipment. We defer revenue related to mobilization periods and recognize the revenue over the term of the related drilling contract. At September 30, 2016 and December 31, 2015, our deferred revenues classified as other long-term liabilities were $342.5 million and $324.3 million, respectively. At September 30, 2016 and December 31, 2015, our deferred revenues classified as accrued liabilities were $269.6 million and $340.5 million, respectively. Costs incurred related to a mobilization period for which a contract is secured are deferred and recognized over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. We defer recognition of revenue on amounts received from customers for prepayment of services until those services are provided. At September 30, 2016 and December 31, 2015, our deferred expenses classified as other current assets were $57.5 million and $79.6 million, respectively. At September 30, 2016 and December 31, 2015, our deferred expenses classified as other long-term assets were $77.7 million and $68.9 million, respectively. We recognize revenue for top drives and instrumentation systems we manufacture when the earnings process is complete. This generally occurs when products have been shipped, title and risk of loss have been transferred, collectability is probable, and pricing is fixed and determinable. We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other expense (income), net in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred and recorded in other expense (income), net. We recognize reimbursements received for out-of-pocket expenses incurred as revenues and account for out-of-pocket expenses as direct costs. Inventory Inventory is stated at the lower of cost or net realizable value. 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: September 30, December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $ Property, Plant and Equipment We review our assets for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the estimated undiscounted future cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying amount of the long-lived asset to its estimated fair value. The determination of future cash flows requires the estimation of dayrates and utilization, and such estimates can change based on market conditions, technological advances in the industry or changes in regulations governing the industry. For an asset classified as held for sale, we consider the asset impaired when its carrying amount exceeds fair value less its cost to sell. Fair value is determined in the same manner as an impaired long-lived asset that is held and used. Significant and unanticipated changes to the assumptions could result in future impairments. A continuation of the lower oil and natural gas prices experienced over the last two years could continue to adversely affect the demand for and prices of our services. As such, we will continue to assess our asset fleet, particularly our legacy and undersized rigs. Should we continue experiencing weakening in the market for a prolonged period for any specific rig class, this could result in future impairment charges or retirements of assets. As the determination of whether impairment charges should be recorded on our long-lived assets is subject to significant management judgment, and an impairment of these assets could result in a material charge on our condensed consolidated statements of income (loss), management believes that accounting estimates related to impairment of long-lived assets are critical. 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 of 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. Based on our annual review during the second quarter of 2016, we did not record a goodwill impairment. No events were noted in the current quarter that would cause us to revise our previous assessment. However, a continuation of the lower natural gas or oil prices experienced over the last two years could continue to adversely affect demand for and prices of our services. This could result in future impairment charges, particularly in our U.S. Drilling and Rig Services segments. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , relating to the revenue recognition from contracts with customers that creates a common revenue standard for GAAP and IFRS. The core principle will require recognition of revenue to represent the transfer of promised goods or services to customers in an amount that reflects the consideration, including costs incurred, to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one year deferral of this standard, with a new effective date for fiscal years beginning after December 15, 2017. We are currently evaluating the impact this will have on our condensed consolidated financial statements and have not made any decision on the method of adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall , relating to the recognition and measurement of financial assets and liabilities. This standard enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. This guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early application is permitted. We are currently evaluating the impact this will have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , relating to leases to increase transparency and comparability among companies. This standard requires all leases with an initial term greater than one year be recorded on the balance sheet as an asset and a lease liability. Additionally, this standard will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for public companies for fiscal years beginning after December 15, 2018. Early application is permitted. This standard requires an entity to separate lease components from nonlease components within a contract. While the lease components would be accounted for under ASU No. 2016-02, nonlease components would be accounted for under ASU No. 2014-09. Therefore, we are evaluating ASU No. 2016-02 concurrently with the provisions of ASU No. 2014-09 and the impact this will have on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments—Equity Method and Joint Ventures , to simplify the transition to the equity method of accounting. This standard eliminates the requirement to retroactively adopt the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. Instead, the equity method investor should add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for the equity method of accounting. This guidance is effective for public companies for fiscal years beginning after December 15, 2016. Early application is permitted. We are currently evaluating the impact this will have on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation , to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for public companies for fiscal years beginning after December 15, 2016. Early application is permitted. We are currently evaluating the impact this will have on our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows , to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early application is permitted. We are currently evaluating the impact this will have on our condensed consolidated financial statements.

Investments in Unconsolidated A

Investments in Unconsolidated Affiliates	9 Months Ended
	Sep. 30, 2016
Investments in Unconsolidated Affiliates
Investments in Unconsolidated Affiliates	Note 3 Investments in Unconsolidated Affiliates On March 24, 2015, we completed the Merger of our Completion & Production Services business with C&J Energy. We received total consideration comprised of approximately $693.5 million in cash ($650.1 million after settlement of working capital requirements) and approximately 62.5 million common shares in the combined company, CJES, representing approximately 53% of the outstanding and issued common shares of CJES as of the closing date. On July 20, 2016, CJES voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Prior to the bankruptcy reorganization, we had significant influence over CJES, but not a controlling financial interest, and accounted for our investment in CJES under the equity method of accounting. Based on the current reorganization plans, we no longer expect to maintain any significant influence over CJES. Accordingly, beginning in the third quarter of 2016, we ceased accounting for our investment in CJES as an equity method investment and now report this investment at our estimated fair value. Due to the uncertainties around the eventual outcome of the bankruptcy process, we wrote off the remaining carrying value of our investment in CJES during the second quarter of 2016, and as such, there is no impact to our condensed consolidated financial statements during the third quarter as a result of the change in accounting. Historical Treatment of the Completion & Production Services business and our investment in CJES Prior to the Merger, we consolidated the results of our Completion & Production Services business into our operating results. As a result of the Merger, CJES became an unconsolidated affiliate and we ceased consolidating the operating results of our Completion & Production Services business. Therefore, subsequent to the closing date of the Merger, our share of the net income (loss), as adjusted for our basis difference, of our equity method investment in CJES was recorded as earnings (losses) from unconsolidated affiliates in our condensed consolidated statements of income (loss) through June 30, 2016. Our policy was to record our share of the net income (loss) of CJES on a one-quarter lag as we are not able to obtain the financial information of CJES on a timely basis. The equity in earnings from CJES, which is reflected in earnings (losses) from unconsolidated affiliates in our condensed consolidated statement of income (loss) was as follows for the periods noted below: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Nabors' share of equity method earnings (losses) $ — (1) $ $ $ (1) As we wrote off the remaining carrying value of our investment in CJES during the second quarter of 2016, we did not record our share of the earnings (losses) of CJES for the three months ended June 30, 2016 as we are not contractually responsible for losses beyond our investment. During the first quarter of 2015, we recognized an estimated gross gain of $102.2 million in connection with the Merger based on the difference between the consideration received and the carrying value of the assets and liabilities of our Completion & Production Services business. This gain was partially offset by $49.6 million in transaction costs related to the Merger. We recorded our investment in the equity of CJES in the investment in unconsolidated affiliates line in our condensed consolidated balance sheet. Our policy is to review our equity method investments for impairment whenever certain impairment indicators exist including the absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. A loss in value of an investment that is other than a temporary decline should be recognized. As a result of this review, during the first quarter of 2016, we determined the carrying value of our investment was other than temporarily impaired, which resulted in an impairment charge of $153.4 million to reduce our carrying value to its estimated fair value of $93.8 million, determined principally based on the average share price over a specified period. Additionally, we recognized a $23.8 million charge to reserve certain other amounts associated with our CJES holdings including affiliate receivables. As a result of CJES’s Chapter 11 filing on July 20, 2016, we determined our investment was other than temporarily impaired and recorded a charge of $39.0 million to write off substantially all of the remaining net book value of our investment. We also recognized an additional $3.9 million in professional fees incurred in connection with our efforts to preserve the value of our CJES holdings in anticipation of the bankruptcy filing. These charges are reflected in other expense (income), net in our condensed consolidated statement of income (loss) for the nine months ended September 30, 2016. See Note 9 – Supplemental Balance Sheet, Income Statement and Cash Flow Information. The following table presents summarized income statement (loss) information for CJES for each of the three months ended December 31, 2015, March 31, 2016 and June 30, 2016 and for the six months ended June 30, 2015, which is reflected in earnings (losses) from unconsolidated affiliates in our condensed consolidated statement of income (loss) for the nine months ended September 30, 2016 and 2015, respectively. As we wrote off the remaining carrying value of our investment in CJES during the second quarter of 2016, we did not record our share of the earnings (losses) of CJES for the three months ended June 30, 2016 in our condensed consolidated statement of income (loss) during the three months ended September 30, 2016 as we are not contractually responsible for losses beyond our investment. Three Months Ended Six Months Ended June 30, March 31, December 31, June 30, 2016 2016 2015 2015 (In thousands) Gross revenues $ $ $ $ Gross margin Net income (loss) Nabors' share of equity method earnings (losses) —

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	Note 4 Fair Value Measurements Our financial assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2016 consist of available-for-sale equity and debt securities. 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 and nine months ended September 30, 2016, 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. The majority of our short-term investments are categorized as Level 1 and had a fair value of $23.6 million as of September 30, 2016. Nonrecurring Fair Value Measurements We applied fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily to assets held for sale, goodwill, equity method investments, intangible assets and other long-lived assets, assets acquired and liabilities assumed in a business combination and our pipeline contractual commitment. Fair Value of Financial Instruments We estimate the fair value of our financial instruments in accordance with GAAP. The fair value of our long-term debt, revolving credit facility and commercial paper is estimated based on quoted market prices or prices quoted from third-party financial institutions. The fair value of our debt instruments is determined using Level 2 measurements. The carrying and fair values of these liabilities were as follows: September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value (In thousands) (In thousands) 2.35% senior notes due September 2016 $ — $ — $ $ 6.15% senior notes due February 2018 9.25% senior notes due January 2019 5.00% senior notes due September 2020 4.625% senior notes due September 2021 5.10% senior notes due September 2023 Term loan facility Revolving credit facility — — Commercial paper Other Less: Deferred financing costs $ $ 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.

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt
Debt	Note 5 Debt Debt consisted of the following: September 30, December 31, 2016 2015 (In thousands) 2.35% senior notes due September 2016 (1) $ — $ 6.15% senior notes due February 2018 9.25% senior notes due January 2019 5.00% senior notes due September 2020 4.625% senior notes due September 2021 5.10% senior notes due September 2023 Term loan facility Revolving credit facility — Commercial paper Other Less: current portion Less: deferred financing costs $ $ (1) The 2.35% senior notes were repaid in September 2016, primarily utilizing borrowings under our revolving credit facility, as well as cash on hand. During the nine months ended September 30, 2016, we repurchased $160.8 million aggregate principal amount of our senior notes (all of which is now held by a consolidated affiliate) at various maturities for approximately $156.5 million in cash, reflecting principal and approximately $3.0 million of accrued and unpaid interest. The discount represents the gain on the debt buybacks and is included in other expense (income), net in our condensed consolidated statement of income (loss) for the nine months ended September 30, 2016. Commercial Paper Program As of September 30, 2016, we had approximately $23.0 million of commercial paper outstanding. The weighted average interest rate on borrowings at September 30, 2016 was 1.14%. 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 July 2020, more than one year from now. Revolving Credit Facility As of September 30, 2016, we had approximately $300.0 million in borrowings outstanding and the ability to borrow up to an additional $1.9 billion from time-to-time under this facility. The revolving credit facility matures in July 2020. The weighted average interest rate on borrowings at September 30, 2016 was 1.82%. 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 the agreement. We were in compliance with all covenants under the agreement at September 30, 2016. 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. Term Loan Facility On February 6, 2015, Nabors Delaware entered into an unsecured term loan facility for $300.0 million with a three-year maturity, which was fully and unconditionally guaranteed by us. Under the new term loan facility, we were required to prepay the loan upon the closing of the Merger, or if we otherwise disposed of assets, issued term debt, or issued equity with net proceeds of more than $70.0 million, subject to certain exceptions. The term loan agreement contained customary representations and warranties, covenants and events of default for loan facilities of this type. On March 27, 2015, we repaid the $300.0 million term loan according to the terms of the agreement, using a portion of the cash consideration received in connection with the Merger and the facility was terminated. On September 29, 2015, Nabors Delaware entered into a new five-year unsecured term loan facility for $325.0 million, which is fully and unconditionally guaranteed by us. The term loan facility contains a mandatory prepayment of $162.5 million due in September 2018. As of September 30, 2016, we had $325.0 million of borrowings outstanding under this facility. The term loan facility matures in September 2020. The weighted average interest rate on borrowings at September 30, 2016 was 1.73%. Borrowings under this facility will bear interest for periods of one, two, three or six months, at an annual rate equal to LIBOR, plus the applicable interest margin. The interest margin is based on our long-term unsecured credit rating for debt as in effect from time to time.

Common Shares

Common Shares	9 Months Ended
	Sep. 30, 2016
Common Shares.
Common Shares	Note 6 Common Shares During the nine months ended September 30, 2016, we repurchased 0.3 million of our common shares in the open market for $1.7 million, all of which are held in treasury. On July 29, 2016, a cash dividend of $0.06 per share was declared for shareholders of record on September 13, 2016. The dividend was paid on October 4, 2016 in the amount of $17.0 million and was charged to retained earnings in our condensed consolidated statement of changes in equity for the nine months ended September 30, 2016.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	Note 7 Commitments and Contingencies Contingencies Income Tax We operate in a number of countries throughout the world and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We do not recognize the benefit of income tax positions we believe are more likely than not to be disallowed upon challenge by a tax authority. If any tax authority successfully challenges our operational structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain countries, if the terms of certain income tax treaties are interpreted in a manner that is adverse to our structure, or if we lose a material tax dispute in any country, our effective tax rate on our worldwide earnings could change substantially. We have received an assessment from a tax authority in Latin America in connection with a 2007 income tax return. The assessment relates to the denial of depreciation expense deductions related to drilling rigs. Similar deductions were taken for tax years 2009 and 2010. Although Nabors and its tax advisors believe these deductions are appropriate and intend to continue to defend our position, we have recorded a partial reserve to account for this contingency. If we ultimately do not prevail, we estimate that we would be required to recognize additional tax expense in the range of $3 million to $8 million. Self-Insurance We estimate the level of our liability related to insurance and record reserves for these amounts in our condensed 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, 2016, 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 condensed 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 $13.1 million (at September 30, 2016 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 (the “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 again lodged an appeal to the Supreme Court, asserting the same challenges as before. While the appeal was pending, the Hassi Messaoud customs office 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. The customs authority demanded 50% of the total fine as a final settlement and seized additional funds of approximately $3.6 million. We have recorded a reserve in the amount of the posted security. The matter was heard by the Supreme Court on February 26, 2015, and on March 26, 2015, that court set aside the judgment of the Ouargla Court of Appeals and remanded the case to that court for further proceedings. A hearing was held on October 28, 2015 in the Ouargla Court of Appeals and on November 4, 2015, the court affirmed the Supreme Court’s decision that we were not guilty. We have filed an application to the Conseil d’Etat in an effort to recover amounts previously paid by us. A portion of those amounts has been returned, and our efforts to recover the additional $4.4 million continue. In March 2011, the Court of Ouargla entered a judgment of approximately $25.8 million (at September 30, 2016 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 upheld the lower court’s ruling, and we appealed the matter to the Supreme Court. On September 25, 2014, the Supreme Court overturned the verdict against us, and the case was reheard by the Ouargla Court of Appeals on March 22, 2015 in light of the Supreme Court’s opinion. On March 29, 2015, the Ouargla Court of Appeals reinstated the initial judgment against us. We have appealed this decision again to the 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 $17.8 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. We successfully defeated ERG’s effort to obtain a temporary restraining order from the Texas court on March 20, 2012. We 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 defendants made numerous jurisdictional challenges and on April 30, 2015, ERG filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Accordingly, the civil actions are currently subject to the bankruptcy stay and the claims in the suit are assets of the estate. Nabors is monitoring the bankruptcy proceeding closely to determine how it will affect the pending litigation. The lawsuit was stayed, pending further court actions, including appeals of the jurisdictional decisions. On June 17, 2016, the Texas Supreme Court issued it opinion on the jurisdictional appeal holding that jurisdiction exists in Texas for Ramshorn, but not for Parex Bermuda or Parex Canada. ERG retains its causes of action for monetary damages, but we believe 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. On July 30, 2014, we and Red Lion, along with C&J Energy and its board of directors, were sued in a putative shareholder class action filed in the Court of Chancery of the State of Delaware (the “Court of Chancery”). The plaintiff alleges that the members of the C&J Energy board of directors breached their fiduciary duties in connection with the Merger, and that Red Lion and C&J Energy aided and abetted these alleged breaches. The plaintiff sought to enjoin the defendants from proceeding with or consummating the Merger and the C&J Energy stockholder meeting for approval of the Merger and, to the extent that the Merger was completed before any relief was granted, to have the Merger rescinded. On November 10, 2014, the plaintiff filed a motion for a preliminary injunction, and, on November 24, 2014, the Court of Chancery entered a bench ruling, followed by a written order on November 25, 2014, that (i) ordered certain members of the C&J Energy board of directors to solicit for a 30 day period alternative proposals to purchase C&J Energy (or a controlling stake in C&J Energy) that were superior to the Merger, and (ii) preliminarily enjoined C&J Energy from holding its stockholder meeting until it complied with the foregoing. C&J Energy complied with the order while it simultaneously pursued an expedited appeal of the Court of Chancery’s order to the Supreme Court of the State of Delaware (the “Delaware Supreme Court”). On December 19, 2014, the Delaware Supreme Court overturned the Court of Chancery’s judgment and vacated the order. Nabors and the C&J Energy defendants filed a motion to dismiss that was granted by the Chancellor on August 24, 2016, including a ruling that C&J Energy could recover on the bond that was posted to support the temporary restraining order. The plaintiffs filed a Notice of Appeal on September 22, 2016 and their opening brief is due November 7, 2016. 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 2016 2017 2018 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ — — $

Earnings (Losses) Per Share

Earnings (Losses) Per Share	9 Months Ended
	Sep. 30, 2016
Earnings (Losses) Per Share
Earnings (Losses) Per Share	Note 8 Earnings (Losses) Per Share ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have nonforfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings (losses) per share. We have granted and expect to continue to grant to employees restricted stock grants that contain nonforfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings (losses) per share and calculate basic earnings (losses) per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Basic earnings (losses) per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings (losses) per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and unvested restricted stock. A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss) from continuing operations, net of tax $ $ $ $ Less: net (income) loss attributable to noncontrolling interest Less: (earnings) losses allocated to unvested shareholders Numerator for basic earnings per share: Adjusted income (loss) from continuing operations, net of tax - basic $ $ $ $ Income (loss) from discontinued operations, net of tax $ $ $ $ Weighted-average number of shares outstanding - basic Earnings (losses) per share: Basic from continuing operations $ $ $ $ Basic from discontinued operations Total Basic $ $ $ $ DILUTED EPS: Adjusted income (loss) from continuing operations, net of tax - basic $ $ $ $ Add: effect of reallocating undistributed earnings of unvested shareholders — — — — Adjusted income (loss) from continuing operations, net of tax - diluted $ $ $ $ Income (loss) from discontinued operations, net of tax $ $ $ $ Weighted-average number of shares outstanding - basic Add: dilutive effect of potential common shares — — — — Weighted-average number of shares outstanding - diluted Earnings (losses) per share: Diluted from continuing operations $ $ $ $ Diluted from discontinued operations Total Diluted $ $ $ $ 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 Nabors’ common shares, because their inclusion would be anti-dilutive and because they are not considered participating securities. For periods in which we experience a net loss from continuing operations, all potential common shares have been excluded from the calculation of weighted-average shares outstanding, because their inclusion would be anti-dilutive. The average number of options that were excluded from diluted earnings (losses) per share that would potentially dilute earnings per share in the future were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Potentially dilutive securities excluded as anti-dilutive In any period during which the average market price of Nabors’ common shares exceeds the exercise prices of these stock options, such stock options 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	9 Months Ended
	Sep. 30, 2016
Supplemental Balance Sheet, Income Statement and Cash Flow Information
Supplemental Balance Sheet, Income Statement and Cash Flow Information	Note 9 Supplemental Balance Sheet and Income Statement Information Accrued liabilities included the following: September 30, December 31, 2016 2015 (In thousands) Accrued compensation $ $ Deferred revenue Other taxes payable Workers’ compensation liabilities Interest payable Litigation reserves Current liability to discontinued operations Current liability to acquisition of KVS Other accrued liabilities $ $ Other expense (income), net included the following: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ $ $ (1) $ Other-than-temporary impairment of equity security (2) — — Impairment of our CJES holdings (3) — Merger transaction (4) — — Provision for International operations (5) Litigation expenses Foreign currency transaction losses (gains) Gain on debt buyback — — Other losses (gains) $ $ $ $ (1) Includes charges of $22.4 million for nine months ended September 30, 2016 related to a reserve for amounts associated with our retained interest in the oil and gas properties located on the North Slope of Alaska and a $3.8 million charge to reduce the carrying value of one of our jack-up rigs, which was re-classified as held for sale at June 30, 2016, to its estimated fair value based on expected sales price. (2) Represents an other-than-temporary impairment charge related to an equity security. Because the trading price of this security remained below our cost basis for an extended period, we determined the investment was other than temporarily impaired and it was appropriate to write down the investment’s carrying value to its current estimated fair value. (3) Represents impairment charges related to our CJES holdings. See Note 3 — Investments in Unconsolidated Affiliates. (4) Includes the gain and transaction costs associated with the Merger. See Note 3 — Investments in Unconsolidated Affiliates. (5) Includes $25.4 million related to assets and receivables impacted by the degradation of the overall economy and financial situation in Venezuela, which was adversely affected by the downturn in oil prices, primarily comprised of a loss of $10.0 million related to the remeasurement of our net monetary assets denominated in local currency from the official exchange rate of 6.3 Bolivares per US dollar to the SIMADI exchange rate of 199 Bolivares per US dollar as of September 30, 2015 and $15.4 million related to the write-off of a receivable balance. The balance of this provision represents an obligation associated with the decision to exit a non-core business line in the region of $1.1 million for each of the three and nine months ended September 30, 2016 and $22.9 million for each of the three and nine months ended September 30, 2015. The changes in accumulated other comprehensive income (loss), by component, included the following: Unrealized Gains gains (losses) Defined (losses) on on available- benefit Foreign cash flow for-sale pension plan currency hedges securities items items Total (In thousands (1) ) As of January 1, 2015 $ $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) As of September 30, 2015 $ $ $ $ $ (1) All amounts are net of tax. Unrealized Gains gains (losses) Defined (losses) on on available- benefit Foreign cash flow for-sale pension plan currency hedges securities items items Total (In thousands (1) ) As of January 1, 2016 $ $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) As of September 30, 2016 $ $ $ $ $ (1) All amounts are net of tax. The line items that were reclassified to net income included the following: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Interest expense $ $ General and administrative expenses Other expense (income), net — Total income (loss) from continuing operations before income tax Tax expense (benefit) Reclassification adjustment for (gains)/ losses included in net income (loss) $ $ $ $

Assets Held for Sale and Discon

Assets Held for Sale and Discontinued Operations	9 Months Ended
	Sep. 30, 2016
Assets Held for Sale and Discontinued Operations
Assets Held for Sale and Discontinued Operations	Note 10 Assets Held for Sale and Discontinued Operations Assets Held for Sale Assets held for sale as of September 30, 2016 and December 31, 2015 was $69.4 million and $75.7 million, respectively. These assets consisted primarily of our oil and gas holdings which are mainly in the Horn River basin in western Canada of $62.0 million and $73.6 million, respectively, as of the periods noted above and the operating results have been reflected in discontinued operations. The remainder represents assets that meet the criteria to be classified as assets held for sale, but do not represent a disposal of a component of an entity or a group of components of an entity representing a strategic shift that has or will have a major effect on the entity's operations and financial results. We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing with respect to our oil and gas properties classified as discontinued operations. At September 30, 2016, our undiscounted contractual commitments for these contracts approximated $19.4 million and we had liabilities of $13.9 million, $5.5 million of which were classified as current and were included in accrued liabilities. At December 31, 2015, our undiscounted contractual commitments for these contracts approximated $23.3 million and we had liabilities of $16.1 million, $5.2 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 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Operating revenues (1) $ $ $ $ Income (loss) from Oil & Gas discontinued operations: Income (loss) from discontinued operations $ $ $ $ Less: Impairment charges or other (gains) and losses on sale of wholly owned assets (2) Less: Income tax expense (benefit) Income (loss) from Oil and Gas discontinued operations, net of tax $ $ $ $ (1) Reflects operating revenues of our historical oil and gas operating segment. (2) Reflects impairment charges of $15.4 million and $51.0 million during each of the three and nine months ended September 30, 2016 and 2015, respectively, due to the deterioration of economic conditions in the dry gas market in western Canada as well as an impairment charge for a note receivable of $4.0 million remaining from the sale of one of our former Canada subsidiaries that provided logistics services during the three and nine-months ended September 30, 2015.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Information
Segment Information	Note 11 Segment Information The following table sets forth financial information with respect to our reportable operating segments: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Operating revenues: (1) Drilling & Rig Services: U.S. $ $ $ $ Canada International Rig Services (2) Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — — — Production Services — — — Subtotal Completion & Production Services — — — Other reconciling items (3) Total $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Adjusted operating income (loss): (1) (4) Drilling & Rig Services: U.S. $ $ $ $ Canada International Rig Services (2) Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — — — Production Services — — — Subtotal Completion & Production Services — — — Other reconciling items (5) Total $ $ $ $ Earnings (losses) from unconsolidated affiliates (6) $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total adjusted operating income (loss) (4) $ $ $ $ Earnings (losses) from unconsolidated affiliates (6) Investment income (loss) Interest expense Other, net Income (loss) from continuing operations before income taxes $ $ $ $ September 30, December 31, 2016 2015 (In thousands) Total assets: Drilling & Rig Services: U.S. $ $ Canada International Rig Services Subtotal Drilling & Rig Services Investment in unconsolidated affiliates (7) Other reconciling items (5) Total $ $ (1) All periods present the operating activities of most of our wholly owned oil and gas businesses as discontinued operations. (2) Includes our other services comprised of our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. (3) Represents the elimination of inter-segment transactions. (4) Adjusted operating income (loss) is computed by subtracting the sum of direct costs, general and administrative expenses, research and engineering expenses and depreciation and amortization from operating revenues. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our operating segments and the company’s consolidated results based on several criteria, including adjusted operating income (loss) and adjusted EBITDA, because it believes that these financial measures reflect our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. Other companies in our industry may compute these measures differently. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the above table. (5) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures (6) Represents our share of the net income (loss), as adjusted for our basis difference, of our unconsolidated affiliates accounted for by the equity method including a loss of $221.9 million for the nine months ended September 30, 2016, and losses of $35.1 million and $35.9 million for the three and nine months ended September 30, 2015, respectively, related to our share of the net loss of CJES, which we reported on a one-quarter lag through June 30, 2016. Beginning in the third quarter of 2016, we ceased accounting for our investment in CJES under the equity method of accounting. (7) Represents our investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2016 and December 31, 2015, respectively.

Condensed Consolidating Financi

Condensed Consolidating Financial Information	9 Months Ended
	Sep. 30, 2016
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information	Note 12 Condensed Consolidating Financial Information Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware, a wholly owned subsidiary. 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 September 30, 2016 and December 31, 2015, statements of income (loss) and statements of other comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015, and statements of cash flows for the nine months ended September 30, 2016 and 2015 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 September 30, 2016 Other Nabors Nabors Subsidiaries (Parent/ Delaware (Non- Consolidating Guarantor) (Issuer) Guarantors) Adjustments Total (In thousands) ASSETS Current assets: Cash and cash equivalents $ $ $ $ — $ Short-term investments — — — Assets held for sale — — — Accounts receivable, net — — — Inventory — — — Other current assets — Total current assets — Property, plant and equipment, net — — — Goodwill — — — Intercompany receivables — Investment in consolidated affiliates — Investment in unconsolidated affiliates — — — Deferred tax assets — — — Other long-term assets — Total assets $ $ $ $ $ LIABILITIES AND EQUITY Current liabilities: Current debt $ — $ — $ $ — $ Trade accounts payable — Accrued liabilities — Income taxes payable — — — Total current liabilities — Long-term debt — — Other long-term liabilities — — Deferred income taxes — — Intercompany payable — — Total liabilities Shareholders’ equity Noncontrolling interest — — — Total equity Total liabilities and equity $ $ $ $ $ Condensed Consolidating Balance Sheets December 31, 2015 Other Nabors Nabors Subsidiaries (Parent/ Delaware (Non- Consolidating Guarantor) (Issuer) Guarantors) Adjustments Total (In thousands) ASSETS Current assets: Cash and cash equivalents $ $ $ $ — $ Short-term investments — — — Assets held for sale — — — Accounts receivable, net — — — Inventory — — — Other current assets — Total current assets — Property, plant and equipment, net — — — Goodwill — — — Intercompany receivables — Investment in consolidated affiliates — Investment in unconsolidated affiliates — — — Deferred tax assets — — — Other long-term assets — Total assets $ $ $ $ $ LIABILITIES AND EQUITY Current liabilities: Current debt $ — $ — $ $ — $ Trade accounts payable — Accrued liabilities — Income taxes payable — — — Total current liabilities — Long-term debt — — Other long-term liabilities — — Deferred income taxes — — Intercompany payable — — Total liabilities Shareholders’ equity Noncontrolling interest — — — Total equity Total liabilities and equity $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Three Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings (losses) from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — — Intercompany interest income — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Three Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — — Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net — Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings (losses) from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — Other, net — Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax: Translation adjustment attributable to Nabors Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax: Translation adjustment attributable to Nabors Unrealized loss on translation adjustment — Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors — Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — — — — — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax Translation adjustment attributable to Nabors: Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax Translation adjustment attributable to Nabors: Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — — — — — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements Cash Flows Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net cash provided by (used for) operating activities $ $ $ $ $ Cash flows from investing activities: Purchases of investments — — — Sales and maturities of investments — — — Cash paid for investments in consolidated affiliates — — Capital expenditures — — — Proceeds from sales of assets and insurance claims — — — Change in intercompany balances — — — Other — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Proceeds from revolving credit facilities — — — Reduction in revolving credit facilities — — — Proceeds from (payments for) issuance of common shares — — — Repurchase of common shares — — — Reduction in long-term debt — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds from parent contributions — — Proceeds from (payments for) short-term borrowings — — — Proceeds from issuance of intercompany debt — — — Other — — — Net cash (used for) provided by financing activities Effect of exchange rate changes on cash and cash equivalents — — — Net increase (decrease) in cash and cash equivalents — Cash and cash equivalents, beginning of period — Cash and cash equivalents, end of period $ $ $ $ — $ Condensed Consolidating Statements Cash Flows Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net cash provided by (used for) operating activities $ Cash flows from investing activities: Purchases of investments — — — Sales and maturities of investments — — — Cash paid for acquisitions of businesses, net — — — Investments in unconsolidated affiliates — — — Proceeds from merger transaction — Capital expenditures — — — Proceeds from sale of assets and insurance claims — — — Other — — — Change in intercompany balances — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Proceeds from (payments for) issuance of parent common shares to affiliates — — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds from issuance of intercompany debt — — Reduction in revolving credit facilities — — — Proceeds from term loan — — — Payments on term loan — — — Purchase of treasury stock — — — Proceeds from short-term borrowings — — — Paydown of intercompany debt — — — Payments on parent (Equity or N/P) — — — Other — — — Net cash (used for) provided by financing activities Effect of exchange rate changes on cash and cash equivalents — — — Net increase (decrease) in cash and cash equivalents — Cash and cash equivalents, beginning of period — Cash and cash equivalents, end of period $ $ $ $ — $

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	Note 13 Subsequent Events On October 28, 2016, our Board of Directors declared a cash dividend of $0.06 per common share, which will be paid on January 4, 2017 to shareholders of record at the close of business on December 14, 2016. On October 31, 2016, we entered into an agreement with Saudi Arabian Development Company (“Saudi Aramco”), a wholly-owned subsidiary of Saudi Arabian Oil Company, to form a new joint venture to own, manage and operate onshore drilling rigs in The Kingdom of Saudi Arabia. The total initial value of the investment through January 2019 of each party in the joint venture is expected to approach $500.0 million in exchange for an equal interest.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Interim Financial Information	Interim Financial Information The accompanying unaudited consolidated condensed financial statements of Nabors have been prepared in conformity with the generally accepted accounting principles 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 together with our annual report on Form 10-K for the year ended December 31, 2015, as amended (“2015 Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments necessary to state fairly our financial position as of September 30, 2016 and the results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented herein. Interim results for the nine months ended September 30, 2016 may not be indicative of results that will be realized for the full year ending December 31, 2016.
Principles of Consolidation	Principles of Consolidation Our condensed 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 condensed consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our condensed consolidated balance sheets. We have historically recorded our share of the net income (loss) of our equity method investment in CJES on a one-quarter lag, as we are not able to obtain the financial information of CJES on a timely basis. During the third quarter of 2016, CJES filed for bankruptcy, at which time we ceased accounting for our investment in CJES as an equity method investment and now report this investment at our estimate of fair value. See Note 3 — Investments in Unconsolidated Affiliates.
Revenue Recognition	Revenue Recognition We recognize revenues and costs on daywork contracts daily as the work progresses. For certain contracts, we receive lump-sum payments for the mobilization of rigs and other drilling equipment. We defer revenue related to mobilization periods and recognize the revenue over the term of the related drilling contract. At September 30, 2016 and December 31, 2015, our deferred revenues classified as other long-term liabilities were $342.5 million and $324.3 million, respectively. At September 30, 2016 and December 31, 2015, our deferred revenues classified as accrued liabilities were $269.6 million and $340.5 million, respectively. Costs incurred related to a mobilization period for which a contract is secured are deferred and recognized over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. We defer recognition of revenue on amounts received from customers for prepayment of services until those services are provided. At September 30, 2016 and December 31, 2015, our deferred expenses classified as other current assets were $57.5 million and $79.6 million, respectively. At September 30, 2016 and December 31, 2015, our deferred expenses classified as other long-term assets were $77.7 million and $68.9 million, respectively. We recognize revenue for top drives and instrumentation systems we manufacture when the earnings process is complete. This generally occurs when products have been shipped, title and risk of loss have been transferred, collectability is probable, and pricing is fixed and determinable. We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other expense (income), net in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred and recorded in other expense (income), net. We recognize reimbursements received for out-of-pocket expenses incurred as revenues and account for out-of-pocket expenses as direct costs.
Inventory	Inventory Inventory is stated at the lower of cost or net realizable value. 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: September 30, December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $
Property, Plant and Equipment	Property, Plant and Equipment We review our assets for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the estimated undiscounted future cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying amount of the long-lived asset to its estimated fair value. The determination of future cash flows requires the estimation of dayrates and utilization, and such estimates can change based on market conditions, technological advances in the industry or changes in regulations governing the industry. For an asset classified as held for sale, we consider the asset impaired when its carrying amount exceeds fair value less its cost to sell. Fair value is determined in the same manner as an impaired long-lived asset that is held and used. Significant and unanticipated changes to the assumptions could result in future impairments. A continuation of the lower oil and natural gas prices experienced over the last two years could continue to adversely affect the demand for and prices of our services. As such, we will continue to assess our asset fleet, particularly our legacy and undersized rigs. Should we continue experiencing weakening in the market for a prolonged period for any specific rig class, this could result in future impairment charges or retirements of assets. As the determination of whether impairment charges should be recorded on our long-lived assets is subject to significant management judgment, and an impairment of these assets could result in a material charge on our condensed consolidated statements of income (loss), management believes that accounting estimates related to impairment of long-lived assets are critical.
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 of 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. Based on our annual review during the second quarter of 2016, we did not record a goodwill impairment. No events were noted in the current quarter that would cause us to revise our previous assessment. However, a continuation of the lower natural gas or oil prices experienced over the last two years could continue to adversely affect demand for and prices of our services. This could result in future impairment charges, particularly in our U.S. Drilling and Rig Services segments.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Inventory	September 30, December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $

Investments in Unconsolidated24

Investments in Unconsolidated Affiliates (Tables)	9 Months Ended
	Sep. 30, 2016
Investments in Unconsolidated Affiliates
Schedule of equity in earnings of unconsolidated affiliates	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Nabors' share of equity method earnings (losses) $ — (1) $ $ $ (1) As we wrote off the remaining carrying value of our investment in CJES during the second quarter of 2016, we did not record our share of the earnings (losses) of CJES for the three months ended June 30, 2016 as we are not contractually responsible for losses beyond our investment.
Investments in unconsolidated affiliates	Three Months Ended Six Months Ended June 30, March 31, December 31, June 30, 2016 2016 2015 2015 (In thousands) Gross revenues $ $ $ $ Gross margin Net income (loss) Nabors' share of equity method earnings (losses) —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair value of financial instruments	September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair Value Value Value Value (In thousands) (In thousands) 2.35% senior notes due September 2016 $ — $ — $ $ 6.15% senior notes due February 2018 9.25% senior notes due January 2019 5.00% senior notes due September 2020 4.625% senior notes due September 2021 5.10% senior notes due September 2023 Term loan facility Revolving credit facility — — Commercial paper Other Less: Deferred financing costs $ $

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt
Long-term debt	September 30, December 31, 2016 2015 (In thousands) 2.35% senior notes due September 2016 (1) $ — $ 6.15% senior notes due February 2018 9.25% senior notes due January 2019 5.00% senior notes due September 2020 4.625% senior notes due September 2021 5.10% senior notes due September 2023 Term loan facility Revolving credit facility — Commercial paper Other Less: current portion Less: deferred financing costs $ $ (1) The 2.35% senior notes were repaid in September 2016, primarily utilizing borrowings under our revolving credit facility, as well as cash on hand.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Summary of total maximum amount of financial guarantees issued	Maximum Amount 2016 2017 2018 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ — — $

Earnings (Losses) Per Share (Ta

Earnings (Losses) Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings (Losses) Per Share
Earnings (losses) per share computations	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) BASIC EPS: Net income (loss) (numerator): Income (loss) from continuing operations, net of tax $ $ $ $ Less: net (income) loss attributable to noncontrolling interest Less: (earnings) losses allocated to unvested shareholders Numerator for basic earnings per share: Adjusted income (loss) from continuing operations, net of tax - basic $ $ $ $ Income (loss) from discontinued operations, net of tax $ $ $ $ Weighted-average number of shares outstanding - basic Earnings (losses) per share: Basic from continuing operations $ $ $ $ Basic from discontinued operations Total Basic $ $ $ $ DILUTED EPS: Adjusted income (loss) from continuing operations, net of tax - basic $ $ $ $ Add: effect of reallocating undistributed earnings of unvested shareholders — — — — Adjusted income (loss) from continuing operations, net of tax - diluted $ $ $ $ Income (loss) from discontinued operations, net of tax $ $ $ $ Weighted-average number of shares outstanding - basic Add: dilutive effect of potential common shares — — — — Weighted-average number of shares outstanding - diluted Earnings (losses) per share: Diluted from continuing operations $ $ $ $ Diluted from discontinued operations Total Diluted $ $ $ $
Potentially dilutive securities excluded as anti-dilutive	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Potentially dilutive securities excluded as anti-dilutive

Supplemental Balance Sheet, I29

Supplemental Balance Sheet, Income Statement and Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2016
Supplemental Balance Sheet, Income Statement and Cash Flow Information
Accrued liabilities	September 30, December 31, 2016 2015 (In thousands) Accrued compensation $ $ Deferred revenue Other taxes payable Workers’ compensation liabilities Interest payable Litigation reserves Current liability to discontinued operations Current liability to acquisition of KVS Other accrued liabilities $ $
Other expense (income)	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ $ $ (1) $ Other-than-temporary impairment of equity security (2) — — Impairment of our CJES holdings (3) — Merger transaction (4) — — Provision for International operations (5) Litigation expenses Foreign currency transaction losses (gains) Gain on debt buyback — — Other losses (gains) $ $ $ $
Schedule of changes in accumulated other comprehensive income (loss)	Unrealized Gains gains (losses) Defined (losses) on on available- benefit Foreign cash flow for-sale pension plan currency hedges securities items items Total (In thousands (1) ) As of January 1, 2015 $ $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) As of September 30, 2015 $ $ $ $ $ (1) All amounts are net of tax. Unrealized Gains gains (losses) Defined (losses) on on available- benefit Foreign cash flow for-sale pension plan currency hedges securities items items Total (In thousands (1) ) As of January 1, 2016 $ $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) As of September 30, 2016 $ $ $ $ $ (1) All amounts are net of tax.
Schedule of line items that were reclassified from net income	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Interest expense $ $ General and administrative expenses Other expense (income), net — Total income (loss) from continuing operations before income tax Tax expense (benefit) Reclassification adjustment for (gains)/ losses included in net income (loss) $ $ $ $

Assets Held for Sale and Disc30

Assets Held for Sale and Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2016
Assets Held for Sale and Discontinued Operations
Schedule of condensed statements of income (loss) from discontinued operations	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Operating revenues (1) $ $ $ $ Income (loss) from Oil & Gas discontinued operations: Income (loss) from discontinued operations $ $ $ $ Less: Impairment charges or other (gains) and losses on sale of wholly owned assets (2) Less: Income tax expense (benefit) Income (loss) from Oil and Gas discontinued operations, net of tax $ $ $ $ (1) Reflects operating revenues of our historical oil and gas operating segment. Reflects impairment charges of $15.4 million and $51.0 million during each of the three and nine months ended September 30, 2016 and 2015, respectively, due to the deterioration of economic conditions in the dry gas market in western Canada as well as an impairment charge for a note receivable of $4.0 million remaining from the sale of one of our former Canada subsidiaries that provided logistics services during the three and nine-months ended September 30, 2015.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Information
Financial information with respect to operating segments	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Operating revenues: (1) Drilling & Rig Services: U.S. $ $ $ $ Canada International Rig Services (2) Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — — — Production Services — — — Subtotal Completion & Production Services — — — Other reconciling items (3) Total $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Adjusted operating income (loss): (1) (4) Drilling & Rig Services: U.S. $ $ $ $ Canada International Rig Services (2) Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — — — Production Services — — — Subtotal Completion & Production Services — — — Other reconciling items (5) Total $ $ $ $ Earnings (losses) from unconsolidated affiliates (6) $ $ $ $ Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total adjusted operating income (loss) (4) $ $ $ $ Earnings (losses) from unconsolidated affiliates (6) Investment income (loss) Interest expense Other, net Income (loss) from continuing operations before income taxes $ $ $ $ September 30, December 31, 2016 2015 (In thousands) Total assets: Drilling & Rig Services: U.S. $ $ Canada International Rig Services Subtotal Drilling & Rig Services Investment in unconsolidated affiliates (7) Other reconciling items (5) Total $ $ (1) All periods present the operating activities of most of our wholly owned oil and gas businesses as discontinued operations. (2) Includes our other services comprised of our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. (3) Represents the elimination of inter-segment transactions. (4) Adjusted operating income (loss) is computed by subtracting the sum of direct costs, general and administrative expenses, research and engineering expenses and depreciation and amortization from operating revenues. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our operating segments and the company’s consolidated results based on several criteria, including adjusted operating income (loss) and adjusted EBITDA, because it believes that these financial measures reflect our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. Other companies in our industry may compute these measures differently. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is the most closely comparable GAAP measure, is provided in the above table. (5) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures (6) Represents our share of the net income (loss), as adjusted for our basis difference, of our unconsolidated affiliates accounted for by the equity method including a loss of $221.9 million for the nine months ended September 30, 2016, and losses of $35.1 million and $35.9 million for the three and nine months ended September 30, 2015, respectively, related to our share of the net loss of CJES, which we reported on a one-quarter lag through June 30, 2016. Beginning in the third quarter of 2016, we ceased accounting for our investment in CJES under the equity method of accounting. (7) Represents our investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2016 and December 31, 2015, respectively.

Condensed Consolidating Finan32

Condensed Consolidating Financial Information (Tables)	9 Months Ended
	Sep. 30, 2016
Condensed Consolidating Financial Information
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets September 30, 2016 Other Nabors Nabors Subsidiaries (Parent/ Delaware (Non- Consolidating Guarantor) (Issuer) Guarantors) Adjustments Total (In thousands) ASSETS Current assets: Cash and cash equivalents $ $ $ $ — $ Short-term investments — — — Assets held for sale — — — Accounts receivable, net — — — Inventory — — — Other current assets — Total current assets — Property, plant and equipment, net — — — Goodwill — — — Intercompany receivables — Investment in consolidated affiliates — Investment in unconsolidated affiliates — — — Deferred tax assets — — — Other long-term assets — Total assets $ $ $ $ $ LIABILITIES AND EQUITY Current liabilities: Current debt $ — $ — $ $ — $ Trade accounts payable — Accrued liabilities — Income taxes payable — — — Total current liabilities — Long-term debt — — Other long-term liabilities — — Deferred income taxes — — Intercompany payable — — Total liabilities Shareholders’ equity Noncontrolling interest — — — Total equity Total liabilities and equity $ $ $ $ $ Condensed Consolidating Balance Sheets December 31, 2015 Other Nabors Nabors Subsidiaries (Parent/ Delaware (Non- Consolidating Guarantor) (Issuer) Guarantors) Adjustments Total (In thousands) ASSETS Current assets: Cash and cash equivalents $ $ $ $ — $ Short-term investments — — — Assets held for sale — — — Accounts receivable, net — — — Inventory — — — Other current assets — Total current assets — Property, plant and equipment, net — — — Goodwill — — — Intercompany receivables — Investment in consolidated affiliates — Investment in unconsolidated affiliates — — — Deferred tax assets — — — Other long-term assets — Total assets $ $ $ $ $ LIABILITIES AND EQUITY Current liabilities: Current debt $ — $ — $ $ — $ Trade accounts payable — Accrued liabilities — Income taxes payable — — — Total current liabilities — Long-term debt — — Other long-term liabilities — — Deferred income taxes — — Intercompany payable — — Total liabilities Shareholders’ equity Noncontrolling interest — — — Total equity Total liabilities and equity $ $ $ $ $
Condensed Consolidating Statements of Income (Loss)	Condensed Consolidating Statements of Income (Loss) Three Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings (losses) from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — — Intercompany interest income — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Three Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — — Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net — Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings (losses) from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $ Condensed Consolidating Statements of Income (Loss) Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Revenues and other income: Operating revenues $ — $ — $ $ — $ Earnings from unconsolidated affiliates — — — Earnings (losses) from consolidated affiliates — Investment income (loss) — Intercompany interest income — — — Total revenues and other income Costs and other deductions: Direct costs — — — General and administrative expenses Research and engineering — — — Depreciation and amortization — — Interest expense — Other, net — Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Income (loss) from continuing operations, net of tax Income (loss) from discontinued operations, net of tax — — — Net income (loss) Less: Net (income) loss attributable to noncontrolling interest — — — Net income (loss) attributable to Nabors $ $ $ $ $
Condensed Consolidating Statements of Comprehensive Income (Loss)	Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax: Translation adjustment attributable to Nabors Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax: Translation adjustment attributable to Nabors Unrealized loss on translation adjustment — Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors — Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — — — — — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax Translation adjustment attributable to Nabors: Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — — — — — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax Translation adjustment attributable to Nabors: Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — — — — — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $
Condensed Consolidating Statements of Cash Flows	Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net income (loss) attributable to Nabors $ $ $ $ $ Other comprehensive income (loss) before tax Translation adjustment attributable to Nabors: Unrealized loss on translation adjustment Less: reclassification adjustment for realized loss on translation adjustment — Translation adjustment attributable to Nabors Unrealized gains (losses) on marketable securities: Unrealized gains (losses) on marketable securities — Less: reclassification adjustment for (gains) losses included in net income (loss) — — — — — Unrealized gains (losses) on marketable securities — Pension liability amortization and adjustment Unrealized gains (losses) and amortization on cash flow hedges Other comprehensive income (loss) before tax Income tax expense (benefit) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax Comprehensive income (loss) attributable to Nabors Net income (loss) attributable to noncontrolling interest — — — Translation adjustment attributable to noncontrolling interest — — — Comprehensive income (loss) attributable to noncontrolling interest — — — Comprehensive income (loss) $ $ $ $ $ Condensed Consolidating Statements Cash Flows Nine Months Ended September 30, 2016 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net cash provided by (used for) operating activities $ $ $ $ $ Cash flows from investing activities: Purchases of investments — — — Sales and maturities of investments — — — Cash paid for investments in consolidated affiliates — — Capital expenditures — — — Proceeds from sales of assets and insurance claims — — — Change in intercompany balances — — — Other — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Proceeds from revolving credit facilities — — — Reduction in revolving credit facilities — — — Proceeds from (payments for) issuance of common shares — — — Repurchase of common shares — — — Reduction in long-term debt — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds from parent contributions — — Proceeds from (payments for) short-term borrowings — — — Proceeds from issuance of intercompany debt — — — Other — — — Net cash (used for) provided by financing activities Effect of exchange rate changes on cash and cash equivalents — — — Net increase (decrease) in cash and cash equivalents — Cash and cash equivalents, beginning of period — Cash and cash equivalents, end of period $ $ $ $ — $ Condensed Consolidating Statements Cash Flows Nine Months Ended September 30, 2015 Nabors Other Nabors Delaware Subsidiaries (Parent/ (Issuer/ (Non- Consolidating Guarantor) Guarantor) Guarantors) Adjustments Total (In thousands) Net cash provided by (used for) operating activities $ Cash flows from investing activities: Purchases of investments — — — Sales and maturities of investments — — — Cash paid for acquisitions of businesses, net — — — Investments in unconsolidated affiliates — — — Proceeds from merger transaction — Capital expenditures — — — Proceeds from sale of assets and insurance claims — — — Other — — — Change in intercompany balances — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Proceeds from (payments for) issuance of parent common shares to affiliates — — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds from issuance of intercompany debt — — Reduction in revolving credit facilities — — — Proceeds from term loan — — — Payments on term loan — — — Purchase of treasury stock — — — Proceeds from short-term borrowings — — — Paydown of intercompany debt — — — Payments on parent (Equity or N/P) — — — Other — — — Net cash (used for) provided by financing activities Effect of exchange rate changes on cash and cash equivalents — — — Net increase (decrease) in cash and cash equivalents — Cash and cash equivalents, beginning of period — Cash and cash equivalents, end of period $ $ $ $ — $

Nature of Operations (Details)

Nature of Operations (Details) $ in Millions	May 24, 2015USD ($)	Sep. 30, 2016segmentcountyitem
Nature of Operations
Actively marketed rigs for land based drilling operations		430
Number of countries company has actively marketed rigs for land based drilling operations | county		20
Actively marketed rigs for offshore based drilling operations		42
Drilling and Rig Services
Nature of Operations
Number of Operating Segments | segment		4
Joint Venture in Saudi Arabia
Nature of Operations
Cash paid for acquisitions of businesses | $	$ 106
Ownership percentage	49.00%

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory
Raw materials	$ 98,072	$ 105,217
Work-in-progress	26,057	29,710
Finished goods	17,805	18,897
Total inventory	141,934	153,824
Other long-term liabilities
Revenue Recognition
Deferred revenue	342,500	324,300
Accrued liabilities
Revenue Recognition
Deferred revenue	269,600	340,500
Other current assets
Revenue Recognition
Deferred expenses	57,500	79,600
Other long term assets
Revenue Recognition
Deferred expenses	$ 77,700	$ 68,900

Investments in Unconsolidated35

Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands, shares in Millions	Mar. 24, 2015	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	May 24, 2015
Investments in Unconsolidated Affiliates
Cash consideration in merger										$ 650,050
Other-than-temporary impairment		$ 3,495							$ 3,495
Summarized income statement (loss) information for investment in unconsolidated affiliates
Gross revenues			$ 269,615			$ 225,168		$ 912,381
Gross margin			7,849			(4,603)		146,772
Net income (loss)			(428,412)			$ (291,116)		(95,784)
Nabors' share of equity method earnings (losses)		2	(54,788)		$ (35,100)			$ (35,900)	$ (221,918)	(29,714)
Joint Venture in Saudi Arabia
Investments in Unconsolidated Affiliates
Percentage of outstanding and issued common shares held											49.00%
C&J Energy Services, Ltd.
Investments in Unconsolidated Affiliates
Cash consideration in merger	$ 693,500
Cash proceeds from merger after working capital requirements	$ 650,100
Common shares held in merged entity	62.5
Percentage of outstanding and issued common shares held	53.00%
Lag in recording share in net income									3 months
Estimated gross gain in merger							$ 102,200
Transaction costs related to the merger	$ 49,600
Summarized income statement (loss) information for investment in unconsolidated affiliates
Gross revenues				$ 409,011
Gross margin				37,417
Net income (loss)				(321,742)
Nabors' share of equity method earnings (losses)				$ (167,145)	$ (35,100)				$ (221,933)	$ (35,900)
C&J Energy Services, Ltd. | Other expense (income)
Investments in Unconsolidated Affiliates
Other-than-temporary impairment			153,400
Estimated fair value			93,800
Charge against receivables			$ 23,800
Equity method investment charge to write off remaining value of investment		39,000
Transaction costs related to the merger		$ 3,900

Fair Value Measurements - Asset

Fair Value Measurements - Assets (Details) $ in Thousands	Sep. 30, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Amount of transfers of financial assets between Level 1 and Level 2 measures	$ 0
Assets:
Amount of transfers of financial assets between Level 1 and Level 2 measures	0
Level 1
Assets:
Short term investments	$ 23,600

Fair Value Measurements - Debt

Fair Value Measurements - Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value of Financial Instruments
Less: Deferred financing costs	$ (14,374)	$ (18,012)
Carrying Value
Fair Value of Financial Instruments
Debt	3,490,472	3,679,720
Less: Deferred financing costs	(14,374)	(18,012)
Debt, net of financing costs	3,476,098	3,661,708
Fair Value
Fair Value of Financial Instruments
Debt	$ 3,502,800	3,445,699
2.35% senior notes due September 2016
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	2.35%
2.35% senior notes due September 2016 | Carrying Value
Fair Value of Financial Instruments
Debt		347,955
2.35% senior notes due September 2016 | Fair Value
Fair Value of Financial Instruments
Debt		347,708
6.15% senior notes due February 2018
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	6.15%
6.15% senior notes due February 2018 | Carrying Value
Fair Value of Financial Instruments
Debt	$ 828,176	921,162
6.15% senior notes due February 2018 | Fair Value
Fair Value of Financial Instruments
Debt	$ 864,452	935,962
9.25% senior notes due January 2019
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	9.25%
9.25% senior notes due January 2019 | Carrying Value
Fair Value of Financial Instruments
Debt	$ 303,489	339,607
9.25% senior notes due January 2019 | Fair Value
Fair Value of Financial Instruments
Debt	$ 334,217	342,575
5.00% senior notes due September 2020
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	5.00%
5.00% senior notes due September 2020 | Carrying Value
Fair Value of Financial Instruments
Debt	$ 669,463	683,839
5.00% senior notes due September 2020 | Fair Value
Fair Value of Financial Instruments
Debt	$ 662,714	617,409
4.625% senior notes due September 2021
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	4.625%
4.625% senior notes due September 2021 | Carrying Value
Fair Value of Financial Instruments
Debt	$ 694,808	698,628
4.625% senior notes due September 2021 | Fair Value
Fair Value of Financial Instruments
Debt	$ 656,850	581,630
5.10% senior notes due September 2023
Fair Value of Financial Instruments
Interest rate on senior notes due (as a percent)	5.10%
5.10% senior notes due September 2023 | Carrying Value
Fair Value of Financial Instruments
Debt	$ 346,416	349,021
5.10% senior notes due September 2023 | Fair Value
Fair Value of Financial Instruments
Debt	336,447	280,907
Term Loan Facility | Carrying Value
Fair Value of Financial Instruments
Debt	325,000	325,000
Term Loan Facility | Fair Value
Fair Value of Financial Instruments
Debt	325,000	325,000
Revolving Credit Facility | Carrying Value
Fair Value of Financial Instruments
Debt	300,000
Revolving Credit Facility | Fair Value
Fair Value of Financial Instruments
Debt	300,000
Commercial paper | Carrying Value
Fair Value of Financial Instruments
Debt	23,000	8,000
Commercial paper | Fair Value
Fair Value of Financial Instruments
Debt	23,000	8,000
Other | Carrying Value
Fair Value of Financial Instruments
Debt	120	6,508
Other | Fair Value
Fair Value of Financial Instruments
Debt	$ 120	$ 6,508

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2015	Mar. 27, 2015	Feb. 06, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Long-term debt
Long-term Debt				$ 3,490,472		$ 3,679,720
Other				120		6,508
Less: current portion				120		6,508
Less: deferred finance costs				(14,374)		(18,012)
Long-term Debt, Excluding Current Maturities, Total				3,475,978		3,655,200
Reduction in long-term debt				492,625
Payment of debt principal					$ 300,000
Amount drawn from term loan facility					$ 300,000
Senior Notes.
Long-term debt
Reduction in long-term debt				156,500
Payment of debt accrued interest				3,000
Consolidated affiliate | Senior Notes.
Long-term debt
Principal amount redeemed				$ 160,800
2.35% senior notes due September 2016
Long-term debt
Senior Notes						347,955
Interest rate on senior notes due (as a percent)				2.35%
6.15% senior notes due February 2018
Long-term debt
Senior Notes				$ 828,176		921,162
Interest rate on senior notes due (as a percent)				6.15%
9.25% senior notes due January 2019
Long-term debt
Senior Notes				$ 303,489		339,607
Interest rate on senior notes due (as a percent)				9.25%
5.00% senior notes due September 2020
Long-term debt
Senior Notes				$ 669,463		683,839
Interest rate on senior notes due (as a percent)				5.00%
4.625% senior notes due September 2021
Long-term debt
Senior Notes				$ 694,808		698,628
Interest rate on senior notes due (as a percent)				4.625%
5.10% senior notes due September 2023
Long-term debt
Senior Notes				$ 346,416		349,021
Interest rate on senior notes due (as a percent)				5.10%
Term Loan Facility
Long-term debt
Senior Notes				$ 325,000		325,000
Three-year maturity term loan facility
Long-term debt
Unsecured term loan facility			$ 300,000
Unsecured debt maturity period			3 years
Prepayment of loan upon closing the merger				$ 70,000
Payment of debt principal		$ 300,000
Five-year term loan facility
Long-term debt
Weighted average interest rate (as a percent)				1.73%
Maximum borrowing capacity	$ 325,000
Unsecured term loan facility				$ 325,000
Unsecured debt maturity period	5 years
Prepayment of loan upon closing the merger	$ 162,500
Commercial paper
Long-term debt
Long-term Debt				23,000		$ 8,000
Aggregate amount of senior notes				$ 23,000
Weighted average interest rate (as a percent)				1.14%
Commercial paper | Minimum
Long-term debt
Remaining period to maturity				1 year
Revolving Credit Facility
Long-term debt
Revolving credit facility				$ 300,000
Weighted average interest rate (as a percent)				1.82%
Remaining availability under credit facility				$ 1,900,000

Common Shares (Details)

Common Shares (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Jul. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Common Shares
Shares repurchased		0.3
Repurchase of treasury shares		$ 1,687	$ 78,399
Common shares
Common stock dividend declared (in dollars per share)	$ 0.06	$ 0.06		$ 0.06
Cash dividends paid		$ 33,927	$ 52,489

Commitments and Contingencies -

Commitments and Contingencies - Self Insurance Disclosures (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
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
Latin American tax authority [Member] | Minimum
Income tax
Aggregate remaining amounts assessed or expected to assessed range	3
Latin American tax authority [Member] | Maximum
Income tax
Aggregate remaining amounts assessed or expected to assessed range	$ 8

Commitments and Contingencies41

Commitments and Contingencies - Litigation (Details) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2011USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2009USD ($)	Dec. 31, 2006USD ($)	Mar. 19, 2012USD ($)
Court of Ouargla Customs Infringement
Commitments and Contingencies, Disclosure
Litigation amount as per judgment		$ 3,600	$ 13,100
Litigation settlement fine (as percent)		50.00%
Additional amount to be recovered		$ 4,400
Amount paid to customs authority		3,100
Posted security paid		$ 1,330
Court of Ouargla Foreign Currency Controls
Commitments and Contingencies, Disclosure
Litigation amount as per judgment	$ 25,800
Payment of contract amount in foreign currency				$ 7,500
Payment of contract amount in domestic currency				$ 3,200
Approximate multiplier of the amount at issue for fines and penalties		4
Court of Ouargla Foreign Currency Controls | Maximum
Commitments and Contingencies, Disclosure
Potential judgment in excess of accrual		$ 17,800
NGH2L
Commitments and Contingencies, Disclosure
Escrow Deposit					$ 3,000
NGH2L | Maximum
Commitments and Contingencies, Disclosure
Monetary damages sought based on alleged breach of contract by NGH2L and alleged tortious interference with contractual relations by Parex		$ 750,000

Commitments and Contingencies42

Commitments and Contingencies - Financial Guarantees (Details) $ in Thousands	Sep. 30, 2016USD ($)
Summary of total maximum amount of financial guarantees issued
2,016	$ 84,167
2,017	166,330
Total	$ 250,497

Earnings (Losses) Per Share (De

Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income (loss) (numerator):
Income (loss) from continuing operations, net of tax	$ (97,839)	$ (250,879)	$ (681,048)	$ (168,407)
Less: net (income) loss attributable to noncontrolling interest	(1,185)	320	990	453
Less: (earnings) losses allocated to unvested shareholders	2,698	5,834	14,683	4,523
Adjusted income (loss) from continuing operations, net of tax - basic	(96,326)	(244,725)	(665,375)	(163,431)
Income (loss) from discontinued operations, net of tax	$ (12,187)	$ (45,275)	$ (14,097)	$ (41,067)
Weighted-average number of shares outstanding - basic	276,707	284,112	276,369	285,186
Earnings (losses) Per Share - Basic
Basic from continuing operations (in dollars per share)	$ (0.35)	$ (0.86)	$ (2.41)	$ (0.57)
Basic from discontinued operations (in dollars per share)	(0.04)	(0.16)	(0.05)	(0.15)
Total Basic (in dollars per share)	$ (0.39)	$ (1.02)	$ (2.46)	$ (0.72)
DILUTED EPS:
Adjusted income (loss) from continuing operations, net of tax - basic	$ (96,326)	$ (244,725)	$ (665,375)	$ (163,431)
Adjusted income (loss) from continuing operations, net of tax - diluted	(96,326)	(244,725)	(665,375)	(163,431)
Income (loss) from discontinued operations, net of tax	$ (12,187)	$ (45,275)	$ (14,097)	$ (41,067)
Weighted-average number of shares outstanding - basic	276,707	284,112	276,369	285,186
Weighted-average number of shares outstanding - diluted	276,707	284,112	276,369	285,186
Earnings (losses) per share:
Diluted from continuing operations (in dollars per share)	$ (0.35)	$ (0.86)	$ (2.41)	$ (0.57)
Diluted from discontinued operations (in dollars per share)	(0.04)	(0.16)	(0.05)	(0.15)
Total Diluted (in dollars per share)	$ (0.39)	$ (1.02)	$ (2.46)	$ (0.72)

Earnings (Losses) Per Share - E

Earnings (Losses) Per Share - Exclusions from Diluted Earnings (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings (Losses) Per Share
Average number of options and warrants excluded from diluted earnings (losses) per share (in shares)	5,368,596	9,416,647	5,387,577	9,910,476

Supplemental Balance Sheet, I45

Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accrued liabilities
Accrued compensation	$ 106,864	$ 120,204
Deferred revenue	269,601	340,472
Other taxes payable	28,218	39,850
Workers' compensation liabilities	37,459	37,459
Interest payable	15,372	62,776
Litigation reserves	25,776	27,097
Current liability to discontinued operations	5,539	5,197
Current liability to acquisition of KVS	22,278	22,278
Other accrued liabilities	37,230	31,280
Accrued liabilities	$ 548,337	$ 686,613

Supplemental Balance Sheet, I46

Supplemental Balance Sheet, Income Statement and Cash Flow Information - Other Expense (Income) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)VEF / $	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)VEF / $
Other expense (income)
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets	$ 6,546	$ 20,984	$ 40,527	$ 23,709
Other-than-temporary impairment of equity security	3,495		3,495
Impairment of our CJES holdings			216,242	180,591
Merger transaction		5,500		(47,074)
Provision for International operations	1,128	48,279	1,128	48,279
Litigation expenses	2,327	5,522	2,651	3,578
Foreign currency transaction losses (gains)	(1,102)	(1,496)	5,916	(2,044)
Gain on debt buybacks	(680)		(6,707)
Other losses (gains)	(1,322)	351	276	(1,812)
Reserve with our retained interest on North Slope of Alaska assets			22,400
Charges to reduce the carrying value of asset held for sale			3,800
Other expense (income)	10,392	$ 259,731	267,403	205,227
Provision for assets and receivable impacted by degradation of overall country economy				25,400
Charge for remeasurement of net monetary assets				$ 10,000
Official exchange rate of Bolivares per USD | VEF / $		6.3		6.3
SIMADI exchange rate of Bolivares per USD | VEF / $		199		199
Write-off of receivable				$ 15,400
Provision for exit of non-core business line	$ 1,100	$ 22,900	1,100	22,900
C&J Energy Services, Ltd.
Other expense (income)
Impairment of our CJES holdings		$ 180,591	$ 220,117	$ 180,591

Supplemental Balance Sheet, I47

Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accumulated Other Comp Inc (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			$ 4,282,710
Other comprehensive income (loss), net of tax	$ (3,675)	$ (46,719)	35,668	$ (99,085)
Balance at the end of the period	3,591,929		3,591,929
Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			(47,593)	77,522
Other comprehensive income (loss) before reclassifications, net of tax			31,421	(105,252)
Amounts reclassified from accumulated other comprehensive income (loss)			4,247	6,167
Other comprehensive income (loss), net of tax			35,668	(99,085)
Balance at the end of the period	(11,925)	(21,563)	(11,925)	(21,563)
Gains (losses) on cash flow hedges
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			(1,670)	(2,044)
Amounts reclassified from accumulated other comprehensive income (loss)			472	280
Other comprehensive income (loss), net of tax			472	280
Balance at the end of the period	(1,198)	(1,764)	(1,198)	(1,764)
Unrealized gains (losses) on available-for-sale securities.
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			(314)	14,996
Other comprehensive income (loss) before reclassifications, net of tax			3,551	(10,127)
Amounts reclassified from accumulated other comprehensive income (loss)			3,495
Other comprehensive income (loss), net of tax			7,046	(10,127)
Balance at the end of the period	6,732	4,869	6,732	4,869
Defined benefit pension plan items
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			(6,568)	(7,263)
Amounts reclassified from accumulated other comprehensive income (loss)			280	522
Other comprehensive income (loss), net of tax			280	522
Balance at the end of the period	(6,288)	(6,741)	(6,288)	(6,741)
Foreign currency items
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period			(39,041)	71,833
Other comprehensive income (loss) before reclassifications, net of tax			27,870	(95,125)
Amounts reclassified from accumulated other comprehensive income (loss)				5,365
Other comprehensive income (loss), net of tax			27,870	(89,760)
Balance at the end of the period	$ (11,171)	$ (17,927)	$ (11,171)	$ (17,927)

Supplemental Balance Sheet, I48

Supplemental Balance Sheet, Income Statement and Cash Flow Information - Reclass Accumulated Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income
Investment income (loss)	$ 310	$ (22)	$ 923	$ 2,128
Interest expense	46,836	44,448	137,803	135,518
General and administrative expenses	56,078	72,032	175,036	263,272
Other expense (income), net	10,392	259,731	267,403	205,227
Income (loss) from continuing operations before income taxes	(128,890)	(331,777)	(805,346)	(203,565)
Income tax expense (benefit)	(31,051)	(80,898)	(124,298)	(35,158)
Net income (loss)	(110,026)	(296,154)	(695,145)	(209,474)
Accumulated Other Comprehensive Income | Reclassification adjustment for (gains)/losses included in net income (loss)
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income
Interest expense	153	153	459	459
General and administrative expenses	297	276	765	828
Other expense (income), net	3,495		3,495	5,365
Income (loss) from continuing operations before income taxes	(3,945)	(429)	(4,719)	(6,652)
Income tax expense (benefit)	172	162	472	485
Net income (loss)	$ (3,773)	$ (267)	$ (4,247)	$ (6,167)

Assets Held-for-Sale and Discon

Assets Held-for-Sale and Discontinued Operations (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets held-for-sale
Assets held for sale	$ 69,436	$ 75,678
Oil and Gas | Assets Held-for-sale
Assets held-for-sale
Assets held for sale	$ 62,000	$ 73,600

Assets Held-for-Sale and Disc50

Assets Held-for-Sale and Discontinued Operations Disc Ops (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income (loss) from discontinued operations
Income (loss) from discontinued operations, net of tax	$ (12,187)	$ (45,275)	$ (14,097)	$ (41,067)
Impairment charge	15,400	15,400	51,000	51,000
Impairment of note receivable		4,000		4,000
Gas transport and processing
Contracts for gas transport and processing
Contractual Obligation	19,400		19,400		$ 23,300
Gas transport and processing | Disposal Group, Held-for-sale, Not Discontinued Operations
Contracts for gas transport and processing
Recorded contractual commitments			13,900		16,100
Gas transport and processing | Disposal Group, Held-for-sale, Not Discontinued Operations | Accrued liabilities
Contracts for gas transport and processing
Recorded contractual commitments			5,500		$ 5,200
Oil and Gas | Discontinued Operations, Held-for-sale or Disposed of by Sale
Income (loss) from discontinued operations
Operating revenues	688	432	1,449	2,737
Income (loss) from discontinued operations	(836)	(1,388)	(3,501)	(3,903)
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets and obligations	15,392	55,044	15,388	56,075
Less: Income tax expense (benefit)	(4,041)	(11,157)	(4,792)	(18,911)
Income (loss) from discontinued operations, net of tax	$ (12,187)	$ (45,275)	$ (14,097)	$ (41,067)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	$ 519,729			$ 847,553		$ 1,688,891	$ 3,125,565
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(71,974)			7,524		(179,145)	164,766
Earnings (losses) from unconsolidated affiliates	2	$ (54,788)		(35,100)	$ (35,900)	(221,918)	(29,714)
Investment income	310			(22)		923	2,128
Interest expense	(46,836)			(44,448)		(137,803)	(135,518)
Other, net	(10,392)			(259,731)		(267,403)	(205,227)
Income (loss) from continuing operations before income taxes	(128,890)			(331,777)		(805,346)	(203,565)
ASSETS
Total assets	8,424,504		$ 9,537,840			8,424,504
Investment in unconsolidated affiliates	889		415,177			889
Equity in earnings (losses) from unconsolidated affiliates, net						(221,918)	(38,909)
C&J Energy Services, Ltd.
Adjusted income (loss) derived from operating activities
Earnings (losses) from unconsolidated affiliates			(167,145)	(35,100)		(221,933)	(35,900)
ASSETS
Equity in earnings (losses) from unconsolidated affiliates, net				(35,100)		(221,900)	(35,900)
Operating segment | Drilling and Rig Services
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	549,041			879,569		1,757,350	2,876,201
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(38,374)			45,486		(81,940)	345,730
ASSETS
Total assets	7,818,626		8,564,102			7,818,626
Operating segment | Drilling and Rig Services | Reportable subsegments | U.S.
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	116,095			259,939		405,113	1,034,929
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(58,876)			(14,034)		(154,763)	94,449
ASSETS
Total assets	3,391,585		3,654,216			3,391,585
Operating segment | Drilling and Rig Services | Reportable subsegments | Canada
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	10,444			29,929		34,555	109,182
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(10,156)			(4,085)		(28,265)	(5,995)
ASSETS
Total assets	352,771		371,151			352,771
Operating segment | Drilling and Rig Services | Reportable subsegments | International
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	363,552			516,180		1,165,631	1,413,886
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	43,595			74,039		144,326	256,412
ASSETS
Total assets	3,694,029		4,108,416			3,694,029
Operating segment | Drilling and Rig Services | Reportable subsegments | Rig Services
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	58,950			73,521		152,051	318,204
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(12,937)			(10,434)		(43,238)	864
ASSETS
Total assets	380,241		430,319			380,241
Operating segment | Completion and Production Services
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues							366,372
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities							(58,802)
Operating segment | Completion and Production Services | Reportable subsegments | Completion Services
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues							207,860
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities							(55,243)
Operating segment | Completion and Production Services | Reportable subsegments | Production Services
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues							158,512
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities							(3,559)
Other reconciling items (3)
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Operating revenues	(29,312)			(32,016)		(68,459)	(117,008)
Other reconciling items (5)
Adjusted income (loss) derived from operating activities
Adjusted income (loss) derived from operating activities	(33,600)			$ (37,962)		(97,205)	$ (122,162)
ASSETS
Total assets	$ 604,989		$ 558,561			$ 604,989

Condensed Consolidating Finan52

Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 177,043	$ 254,530	$ 251,366	$ 501,149
Short-term investments	23,607	20,059
Assets held for sale	69,436	75,678
Accounts receivable, net	503,966	784,671
Inventory	141,934	153,824
Other current assets	156,094	187,135
Total current assets	1,072,080	1,475,897
Property, plant and equipment, net	6,616,711	7,027,802
Goodwill	167,131	166,659
Investment in unconsolidated affiliates	889	415,177
Other long-term assets	567,693	452,305
Total assets	8,424,504	9,537,840
Current liabilities:
Current portion of debt	120	6,508
Trade accounts payable	215,627	271,984
Accrued liabilities	548,337	686,613
Income taxes payable	23,778	41,394
Total current liabilities	787,862	1,006,499
Long-term debt	3,475,978	3,655,200
Other long-term liabilities	551,004	552,947
Deferred income taxes	10,966	29,326
Total liabilities	4,825,810	5,243,972
Shareholders' equity	3,591,929	4,282,710
Noncontrolling interest	6,765	11,158
Total equity	3,598,694	4,293,868	4,511,399	4,918,789
Total liabilities and equity	8,424,504	9,537,840
Reportable Legal Entities | Parent Company
Current assets:
Cash and cash equivalents	1,055	873	820	1,170
Other current assets	50	50
Total current assets	1,105	923
Intercompany receivables	136,195	139,366
Investment in consolidated affiliates	3,541,138	4,183,362
Total assets	3,678,438	4,323,651
Current liabilities:
Trade accounts payable	110	71
Accrued liabilities	20,399	370
Total current liabilities	20,509	441
Intercompany payable	66,000	40,500
Total liabilities	86,509	40,941
Shareholders' equity	3,591,929	4,282,710
Total equity	3,591,929	4,282,710
Total liabilities and equity	3,678,438	4,323,651
Reportable Legal Entities | Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	8	10	12	7
Other current assets	6,694	9,016
Total current assets	6,702	9,026
Intercompany receivables	11,000	11,000
Investment in consolidated affiliates	4,891,538	4,973,327
Deferred tax assets	423,166	366,818
Other long-term assets	413	12,907
Total assets	5,332,819	5,373,078
Current liabilities:
Trade accounts payable	114	3
Accrued liabilities	18,239	64,550
Total current liabilities	18,353	64,553
Long-term debt	3,693,248	3,723,138
Other long-term liabilities	22,606	35,086
Intercompany payable	1,523,396	1,370,176
Total liabilities	5,257,603	5,192,953
Shareholders' equity	75,216	180,125
Total equity	75,216	180,125
Total liabilities and equity	5,332,819	5,373,078
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors)
Current assets:
Cash and cash equivalents	175,980	253,647	$ 250,534	$ 499,972
Short-term investments	23,607	20,059
Assets held for sale	69,436	75,678
Accounts receivable, net	503,966	784,671
Inventory	141,934	153,824
Other current assets	149,350	178,069
Total current assets	1,064,273	1,465,948
Property, plant and equipment, net	6,616,711	7,027,802
Goodwill	167,131	166,659
Intercompany receivables	1,442,201	1,260,310
Investment in consolidated affiliates	1,178,531	1,284,225
Investment in unconsolidated affiliates	889	415,177
Other long-term assets	784,550	507,336
Total assets	11,254,286	12,127,457
Current liabilities:
Current portion of debt	120	6,508
Trade accounts payable	215,403	271,910
Accrued liabilities	509,699	621,693
Income taxes payable	23,778	41,394
Total current liabilities	749,000	941,505
Other long-term liabilities	528,398	517,861
Deferred income taxes	434,132	396,144
Total liabilities	1,711,530	1,855,510
Shareholders' equity	9,535,991	10,260,789
Noncontrolling interest	6,765	11,158
Total equity	9,542,756	10,271,947
Total liabilities and equity	11,254,286	12,127,457
Consolidating Adjustments
Current assets:
Intercompany receivables	(1,589,396)	(1,410,676)
Investment in consolidated affiliates	(9,611,207)	(10,440,914)
Deferred tax assets	(423,166)	(366,818)
Other long-term assets	(217,270)	(67,938)
Total assets	(11,841,039)	(12,286,346)
Current liabilities:
Long-term debt	(217,270)	(67,938)
Deferred income taxes	(423,166)	(366,818)
Intercompany payable	(1,589,396)	(1,410,676)
Total liabilities	(2,229,832)	(1,845,432)
Shareholders' equity	(9,611,207)	(10,440,914)
Total equity	(9,611,207)	(10,440,914)
Total liabilities and equity	$ (11,841,039)	$ (12,286,346)

Condensed Consolidating Finan53

Condensed Consolidating Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues and other income:
Operating revenues	$ 519,729		$ 847,553		$ 1,688,891	$ 3,125,565
Earnings (losses) from unconsolidated affiliates	2	$ (54,788)	(35,100)	$ (35,900)	(221,918)	(29,714)
Investment income (loss)	310		(22)		923	2,128
Total revenues and other income	520,041		812,431		1,467,896	3,097,979
Costs and other deductions:
Direct costs	306,436		518,174		1,012,738	1,926,306
General and administrative expenses	56,078		72,032		175,036	263,272
Research and Engineering	8,476		9,716		24,818	31,899
Depreciation and amortization	220,713		240,107		655,444	739,322
Interest expense	46,836		44,448		137,803	135,518
Other, net	10,392		259,731		267,403	205,227
Total costs and other deductions	648,931		1,144,208		2,273,242	3,301,544
Income (loss) from continuing operations before income taxes	(128,890)		(331,777)		(805,346)	(203,565)
Income tax expense (benefit)	(31,051)		(80,898)		(124,298)	(35,158)
Income (loss) from continuing operations, net of tax	(97,839)		(250,879)		(681,048)	(168,407)
Income (loss) from discontinued operations, net of tax	(12,187)		(45,275)		(14,097)	(41,067)
Net income (loss)	(110,026)		(296,154)		(695,145)	(209,474)
Less: Net (income) loss attributable to noncontrolling interest	(1,185)		320		990	453
Net income (loss) attributable to Nabors	(111,211)		(295,834)		(694,155)	(209,021)
Consolidating Adjustments
Revenues and other income:
Earnings (losses) from consolidated affiliates	230,179		419,183		1,118,370	361,491
Investment income (loss)	(2,981)		(2,327)		(8,943)	(6,981)
Intercompany interest income	(153)		(913)		(417)	(5,539)
Total revenues and other income	227,045		415,943		1,109,010	348,971
Costs and other deductions:
General and administrative expenses	(167)		(135)		(481)	(419)
Other, net	167		135		481	419
Intercompany interest expense	(153)		(913)		(417)	(5,539)
Total costs and other deductions	(153)		(913)		(417)	(5,539)
Income (loss) from continuing operations before income taxes	227,198		416,856		1,109,427	354,510
Income (loss) from continuing operations, net of tax	227,198		416,856		1,109,427	354,510
Net income (loss)	227,198		416,856		1,109,427	354,510
Net income (loss) attributable to Nabors	227,198		416,856		1,109,427	354,510
Parent Company | Reportable Legal Entities
Revenues and other income:
Earnings (losses) from consolidated affiliates	(107,229)		(293,510)		(685,148)	(189,624)
Investment income (loss)					1
Intercompany interest income	(9)
Total revenues and other income	(107,238)		(293,510)		(685,147)	(189,624)
Costs and other deductions:
General and administrative expenses	3,053		2,216		7,767	7,047
Interest expense						(1)
Other, net	929		109		1,245	12,328
Intercompany interest expense	(9)		(1)		(4)	23
Total costs and other deductions	3,973		2,324		9,008	19,397
Income (loss) from continuing operations before income taxes	(111,211)		(295,834)		(694,155)	(209,021)
Income (loss) from continuing operations, net of tax	(111,211)		(295,834)		(694,155)	(209,021)
Net income (loss)	(111,211)		(295,834)		(694,155)	(209,021)
Net income (loss) attributable to Nabors	(111,211)		(295,834)		(694,155)	(209,021)
Guarantor Subsidiaries | Reportable Legal Entities
Revenues and other income:
Earnings (losses) from consolidated affiliates	(45,527)		(47,522)		(168,639)	(40,029)
Investment income (loss)					132	560
Intercompany interest income	162		913		417	5,539
Total revenues and other income	(45,365)		(46,609)		(168,090)	(33,930)
Costs and other deductions:
General and administrative expenses	182		180		448	(143)
Depreciation and amortization	31		31		93	674
Interest expense	50,595		49,320		152,318	151,297
Other, net	(18)				(18)
Total costs and other deductions	50,790		49,531		152,841	151,828
Income (loss) from continuing operations before income taxes	(96,155)		(96,140)		(320,931)	(185,758)
Income tax expense (benefit)	(18,732)		(17,989)		(56,348)	(53,920)
Income (loss) from continuing operations, net of tax	(77,423)		(78,151)		(264,583)	(131,838)
Net income (loss)	(77,423)		(78,151)		(264,583)	(131,838)
Net income (loss) attributable to Nabors	(77,423)		(78,151)		(264,583)	(131,838)
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities
Revenues and other income:
Operating revenues	519,729		847,553		1,688,891	3,125,565
Earnings (losses) from unconsolidated affiliates	2		(35,100)		(221,918)	(29,714)
Earnings (losses) from consolidated affiliates	(77,423)		(78,151)		(264,583)	(131,838)
Investment income (loss)	3,291		2,305		9,733	8,549
Total revenues and other income	445,599		736,607		1,212,123	2,972,562
Costs and other deductions:
Direct costs	306,436		518,174		1,012,738	1,926,306
General and administrative expenses	53,010		69,771		167,302	256,787
Research and Engineering	8,476		9,716		24,818	31,899
Depreciation and amortization	220,682		240,076		655,351	738,648
Interest expense	(3,759)		(4,872)		(14,515)	(15,778)
Other, net	9,314		259,487		265,695	192,480
Intercompany interest expense	162		914		421	5,516
Total costs and other deductions	594,321		1,093,266		2,111,810	3,135,858
Income (loss) from continuing operations before income taxes	(148,722)		(356,659)		(899,687)	(163,296)
Income tax expense (benefit)	(12,319)		(62,909)		(67,950)	18,762
Income (loss) from continuing operations, net of tax	(136,403)		(293,750)		(831,737)	(182,058)
Income (loss) from discontinued operations, net of tax	(12,187)		(45,275)		(14,097)	(41,067)
Net income (loss)	(148,590)		(339,025)		(845,834)	(223,125)
Less: Net (income) loss attributable to noncontrolling interest	(1,185)		320		990	453
Net income (loss) attributable to Nabors	$ (149,775)		$ (338,705)		$ (844,844)	$ (222,672)

Condensed Consolidating Finan54

Condensed Consolidating Financial Information - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Nabors	$ (111,211)	$ (295,834)	$ (694,155)	$ (209,021)
Translation adjustment attributable to Nabors
Unrealized loss on translation adjustment	(8,950)	(38,859)		(95,125)
Less: reclassification adjustment for realized loss on translation adjustment			27,870	5,365
Translation adjustment attributable to Nabors	(8,950)	(38,859)	27,870	(89,760)
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities	1,502	(8,127)	3,551	(10,127)
Unrealized gain (loss) on translation adjustment	(8,950)	(38,859)	27,870	(95,125)
Less: reclassification adjustment for (gains) losses included in net income (loss)	3,495		3,495
Unrealized gains (losses) on marketable securities	4,997	(8,127)	7,046	(10,127)
Pension liability amortization and adjustment	297	276	765	828
Unrealized gains (losses) and amortization on cash flow hedges	153	153	459	459
Other comprehensive income (loss), before tax	(3,503)	(46,557)	36,140	(98,600)
Income tax expense (benefit) related to items of other comprehensive income (loss)	172	162	472	485
Other comprehensive income (loss), net of tax	(3,675)	(46,719)	35,668	(99,085)
Comprehensive income (loss) attributable to Nabors	(114,886)	(342,553)	(658,487)	(308,106)
Net income (loss) attributable to noncontrolling interest	1,185	(320)	(990)	(453)
Translation adjustment attributable to noncontrolling interest	(90)	(476)	371	(1,194)
Comprehensive income (loss) attributable to noncontrolling interest	1,095	(796)	(619)	(1,647)
Comprehensive income (loss)	(113,791)	(343,349)	(659,106)	(309,753)
Reportable Legal Entities | Parent Company
Condensed Consolidating Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Nabors	(111,211)	(295,834)	(694,155)	(209,021)
Translation adjustment attributable to Nabors
Unrealized loss on translation adjustment	(8,950)	(38,859)		(95,125)
Less: reclassification adjustment for realized loss on translation adjustment			27,870	5,365
Translation adjustment attributable to Nabors	(8,950)	(38,859)		(89,760)
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities	1,502	(8,127)	3,551	(10,127)
Less: reclassification adjustment for (gains) losses included in net income (loss)	3,495		3,495
Unrealized gains (losses) on marketable securities	4,997	(8,127)	7,046	(10,127)
Pension liability amortization and adjustment	297	276	765	828
Unrealized gains (losses) and amortization on cash flow hedges	153	153	459	459
Other comprehensive income (loss), before tax	(3,503)	(46,557)	36,140	(98,600)
Income tax expense (benefit) related to items of other comprehensive income (loss)	172	162	472	485
Other comprehensive income (loss), net of tax	(3,675)	(46,719)	35,668	(99,085)
Comprehensive income (loss) attributable to Nabors	(114,886)	(342,553)	(658,487)	(308,106)
Comprehensive income (loss)	(114,886)	(342,553)	(658,487)	(308,106)
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Nabors	(77,423)	(78,151)	(264,583)	(131,838)
Translation adjustment attributable to Nabors
Unrealized loss on translation adjustment	12			51
Less: reclassification adjustment for realized loss on translation adjustment			(39)
Translation adjustment attributable to Nabors	12			51
Unrealized gains (losses) on marketable securities:
Pension liability amortization and adjustment	297	276	765	828
Unrealized gains (losses) and amortization on cash flow hedges	153	153	459	459
Other comprehensive income (loss), before tax	462	429	1,185	1,338
Income tax expense (benefit) related to items of other comprehensive income (loss)	172	162	472	485
Other comprehensive income (loss), net of tax	290	267	713	853
Comprehensive income (loss) attributable to Nabors	(77,133)	(77,884)	(263,870)	(130,985)
Comprehensive income (loss)	(77,133)	(77,884)	(263,870)	(130,985)
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors)
Condensed Consolidating Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Nabors	(149,775)	(338,705)	(844,844)	(222,672)
Translation adjustment attributable to Nabors
Unrealized loss on translation adjustment	(8,938)	(38,859)		(95,074)
Less: reclassification adjustment for realized loss on translation adjustment			27,870	5,365
Translation adjustment attributable to Nabors	(8,938)	(38,859)		(89,709)
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities	2,782	(8,127)	3,551	(10,127)
Less: reclassification adjustment for (gains) losses included in net income (loss)	3,495		3,495
Unrealized gains (losses) on marketable securities	6,277	(8,127)	7,046	(10,127)
Pension liability amortization and adjustment	594	552	1,530	1,656
Unrealized gains (losses) and amortization on cash flow hedges	153	153	459	459
Other comprehensive income (loss), before tax	(1,914)	(46,281)	36,905	(97,721)
Income tax expense (benefit) related to items of other comprehensive income (loss)	284	264	765	791
Other comprehensive income (loss), net of tax	(2,198)	(46,545)	36,140	(98,512)
Comprehensive income (loss) attributable to Nabors	(151,973)	(385,250)	(808,704)	(321,184)
Net income (loss) attributable to noncontrolling interest	1,185	(320)	(990)	(453)
Translation adjustment attributable to noncontrolling interest	(90)	(476)	371	(1,194)
Comprehensive income (loss) attributable to noncontrolling interest	1,095	(796)	(619)	(1,647)
Comprehensive income (loss)	(150,878)	(386,046)	(809,323)	(322,831)
Consolidating Adjustments
Condensed Consolidating Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Nabors	227,198	416,856	1,109,427	354,510
Translation adjustment attributable to Nabors
Unrealized loss on translation adjustment	8,926	38,859		95,023
Less: reclassification adjustment for realized loss on translation adjustment			(27,831)	(5,365)
Translation adjustment attributable to Nabors	8,926	38,859		89,658
Unrealized gains (losses) on marketable securities:
Unrealized gains (losses) on marketable securities	(2,782)	8,127	(3,551)	10,127
Less: reclassification adjustment for (gains) losses included in net income (loss)	(3,495)		(3,495)
Unrealized gains (losses) on marketable securities	(6,277)	8,127	(7,046)	10,127
Pension liability amortization and adjustment	(891)	(828)	(2,295)	(2,484)
Unrealized gains (losses) and amortization on cash flow hedges	(306)	(306)	(918)	(918)
Other comprehensive income (loss), before tax	1,452	45,852	(38,090)	96,383
Income tax expense (benefit) related to items of other comprehensive income (loss)	(456)	(426)	(1,237)	(1,276)
Other comprehensive income (loss), net of tax	1,908	46,278	(36,853)	97,659
Comprehensive income (loss) attributable to Nabors	229,106	463,134	1,072,574	452,169
Comprehensive income (loss)	$ 229,106	$ 463,134	$ 1,072,574	$ 452,169

Condensed Consolidating Finan55

Condensed Consolidating Financial Information - Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statements Of Cash Flows
Net cash provided by (used for) operating activities	$ 404,768	$ 605,011
Cash flows from investing activities:
Purchases of investments	(24)	(8)
Sales and maturities of investments	643	859
Investment in unconsolidated affiliates		(445)
Capital expenditures	(284,950)	(744,047)
Proceeds from sales of assets and insurance claims	26,597	30,164
Other	(19)	1,700
Cash paid for acquisition of businesses, net		(57,909)
Proceeds from merger transaction		650,050
Net cash (used for) provided by investing activities	(257,753)	(119,636)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	5	363
Proceeds from revolving credit facilities	560,000
Reduction in revolving credit facilities	(260,000)	(450,000)
Proceeds from (payments for) issuance of common shares	562	1,198
Repurchase of common shares	(1,687)	(44,978)
Reduction of long-term debt	(492,625)
Dividends to shareholders	(33,927)	(52,489)
Proceeds from (payments for) commercial paper, net	15,000	(162,544)
Proceeds from (payments for) short-term borrowings	(6,388)	2,792
Other	(4,313)	(7,534)
Proceeds from term Loan		300,000
Payments on term loan		(300,000)
Dividends to shareholders	33,927	52,489
Net cash (used for) provided by financing activities	(223,373)	(713,192)
Effect of exchange rate changes on cash and cash equivalents	(1,129)	(21,966)
Net increase (decrease) in cash and cash equivalents	(77,487)	(249,783)
Cash and cash equivalents, beginning of period	254,530	501,149
Cash and cash equivalents, end of period	177,043	251,366
Reportable Legal Entities | Parent Company
Condensed Consolidating Statements Of Cash Flows
Net cash provided by (used for) operating activities	18,320	39,956
Cash flows from investing activities:
Proceeds from merger transaction		5,500
Net cash (used for) provided by investing activities		5,500
Cash flows from financing activities:
Proceeds from (payments for) issuance of common shares	562	1,198
Dividends to shareholders	(39,887)	(59,470)
Proceeds from issuance of intercompany debt	25,500	47,000
Other	(4,313)	(7,534)
Dividends to shareholders	39,887	59,470
Paydown of intercompany debt		(27,000)
Net cash (used for) provided by financing activities	(18,138)	(45,806)
Net increase (decrease) in cash and cash equivalents	182	(350)
Cash and cash equivalents, beginning of period	873	1,170
Cash and cash equivalents, end of period	1,055	820
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statements Of Cash Flows
Net cash provided by (used for) operating activities	(276,655)	(188,781)
Cash flows from investing activities:
Investment in unconsolidated affiliates	(86,459)
Change in intercompany balances	239,112	67,194
Proceeds from merger transaction		646,078
Net cash (used for) provided by investing activities	152,653	713,272
Cash flows from financing activities:
Proceeds from revolving credit facilities	560,000
Reduction in revolving credit facilities	(260,000)	(450,000)
Reduction of long-term debt	(350,000)
Proceeds from (payments for) commercial paper, net	15,000	(162,544)
Proceeds from parent contributions	159,000
Proceeds from issuance of intercompany debt		88,058
Proceeds from term Loan		300,000
Payments on term loan		(300,000)
Net cash (used for) provided by financing activities	124,000	(524,486)
Net increase (decrease) in cash and cash equivalents	(2)	5
Cash and cash equivalents, beginning of period	10	7
Cash and cash equivalents, end of period	8	12
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors)
Condensed Consolidating Statements Of Cash Flows
Net cash provided by (used for) operating activities	669,063	782,139
Cash flows from investing activities:
Purchases of investments	(24)	(8)
Sales and maturities of investments	643	859
Investment in unconsolidated affiliates	(159,000)	(445)
Capital expenditures	(284,950)	(744,047)
Proceeds from sales of assets and insurance claims	26,597	30,164
Change in intercompany balances	(239,112)	(67,194)
Other	(19)	1,700
Cash paid for acquisition of businesses, net		(57,909)
Proceeds from merger transaction		(1,528)
Net cash (used for) provided by investing activities	(655,865)	(838,408)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts	5	363
Repurchase of common shares	(1,687)	(44,978)
Reduction of long-term debt	(142,625)
Proceeds from parent contributions	86,459	(21,322)
Proceeds from (payments for) short-term borrowings	(6,388)	2,792
Proceeds from issuance of intercompany debt	(25,500)	(135,058)
Paydown of intercompany debt		27,000
Net cash (used for) provided by financing activities	(89,736)	(171,203)
Effect of exchange rate changes on cash and cash equivalents	(1,129)	(21,966)
Net increase (decrease) in cash and cash equivalents	(77,667)	(249,438)
Cash and cash equivalents, beginning of period	253,647	499,972
Cash and cash equivalents, end of period	175,980	250,534
Consolidating Adjustments
Condensed Consolidating Statements Of Cash Flows
Net cash provided by (used for) operating activities	(5,960)	(28,303)
Cash flows from investing activities:
Investment in unconsolidated affiliates	245,459
Net cash (used for) provided by investing activities	245,459
Cash flows from financing activities:
Dividends to shareholders	5,960	6,981
Proceeds from parent contributions	(245,459)	21,322
Dividends to shareholders	(5,960)	(6,981)
Net cash (used for) provided by financing activities	$ (239,499)	$ 28,303

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 31, 2016	Oct. 28, 2016	Jul. 29, 2016	Sep. 30, 2016	Dec. 31, 2015
Subsequent event
Dividend declared (in dollars per share)			$ 0.06	$ 0.06	$ 0.06
Subsequent Event
Subsequent event
Dividend declared (in dollars per share)		$ 0.06
Subsequent Event | Joint Venture Saudi Aramco
Subsequent event
Total initial value of the investment per party	$ 500