Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | NABORS INDUSTRIES LTD | ||
Entity Central Index Key | 1,163,739 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 2,077,413,209 | ||
Entity Common Stock, Shares Outstanding | 285,346,410 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 264,093 | $ 254,530 |
Short-term investments | 31,109 | 20,059 |
Assets held for sale | 76,668 | 75,678 |
Accounts receivable, net | 508,355 | 784,671 |
Inventory, net | 103,595 | 153,824 |
Other current assets | 172,019 | 187,135 |
Total current assets | 1,155,839 | 1,475,897 |
Property, plant and equipment, net | 6,267,583 | 7,027,802 |
Goodwill | 166,917 | 166,659 |
Investment in unconsolidated affiliates | 893 | 415,177 |
Other long-term assets | 595,783 | 452,305 |
Total assets | 8,187,015 | 9,537,840 |
Current liabilities: | ||
Current portion of debt | 297 | 6,508 |
Trade accounts payable | 264,578 | 271,984 |
Accrued liabilities | 543,248 | 686,613 |
Income taxes payable | 13,811 | 41,394 |
Total current liabilities | 821,934 | 1,006,499 |
Long-term debt | 3,578,335 | 3,655,200 |
Other long-term liabilities | 522,456 | 552,947 |
Deferred income taxes | 9,495 | 29,326 |
Total liabilities | 4,932,220 | 5,243,972 |
Commitments and contingencies (Note 17) | ||
Shareholders' equity: | ||
Common shares, par value $0.001 per share: Authorized common shares 800,000; issued 333,598 and 330,526, respectively | 334 | 331 |
Capital in excess of par value | 2,521,332 | 2,493,100 |
Accumulated other comprehensive income (loss) | (12,119) | (47,593) |
Retained earnings | 2,033,427 | 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 | 3,247,025 | 4,282,710 |
Noncontrolling interest | 7,770 | 11,158 |
Total equity | 3,254,795 | 4,293,868 |
Total liabilities and equity | $ 8,187,015 | $ 9,537,840 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 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 | 333,598 | 330,526 |
Treasury shares, at cost | 49,673 | 49,342 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues and other income | |||
Operating revenues | $ 2,227,839 | $ 3,864,437 | $ 6,804,197 |
Earnings (losses) from unconsolidated affiliates | (221,914) | (75,081) | (6,301) |
Investment income (loss) | 1,183 | 2,308 | 11,831 |
Total revenues and other income | 2,007,108 | 3,791,664 | 6,809,727 |
Costs and other deductions: | |||
Direct costs | 1,344,298 | 2,371,436 | 4,505,064 |
General and administrative expenses | 227,639 | 324,328 | 500,036 |
Research and Engineering | 33,582 | 41,253 | 49,698 |
Depreciation and amortization | 871,631 | 970,459 | 1,145,100 |
Interest expense | 185,360 | 181,928 | 177,948 |
Impairment and other charges | 505,164 | 368,967 | 1,005,110 |
Other, net | 37,509 | (39,172) | 31,386 |
Total costs and other deductions | 3,205,183 | 4,219,199 | 7,414,342 |
Income (loss) from continuing operations before income taxes | (1,198,075) | (427,535) | (604,615) |
Income tax expense (benefit): | |||
Current | 14,780 | 89,865 | 302,313 |
Deferred | (201,611) | (187,903) | (239,647) |
Total income tax expense (benefit) | (186,831) | (98,038) | 62,666 |
Subsidiary preferred stock dividend | 1,984 | ||
Income (loss) from continuing operations, net of tax | (1,011,244) | (329,497) | (669,265) |
Income (loss) from discontinued operations, net of tax | (18,363) | (42,797) | 21 |
Net income (loss) | (1,029,607) | (372,294) | (669,244) |
Less: Net (income) loss attributable to noncontrolling interest | (135) | (381) | (1,415) |
Net income (loss) attributable to Nabors | (1,029,742) | (372,675) | (670,659) |
Amounts attributable to Nabors: | |||
Net income (loss) from continuing operations | (1,011,379) | (329,878) | (670,680) |
Net income (loss) from discontinued operations | (18,363) | (42,797) | 21 |
Net income (loss) attributable to Nabors | $ (1,029,742) | $ (372,675) | $ (670,659) |
Earnings (losses) per share: | |||
Basic from continuing operations (in dollars per share) | $ (3.58) | $ (1.14) | $ (2.28) |
Basic from discontinued operations (in dollars per share) | (0.06) | (0.15) | |
Total Basic (in dollars per share) | (3.64) | (1.29) | (2.28) |
Diluted from continuing operations (in dollars per share) | (3.58) | (1.14) | (2.28) |
Diluted from discontinued operations (in dollars per share) | (0.06) | (0.15) | |
Total Diluted (in dollars per share) | $ (3.64) | $ (1.29) | $ (2.28) |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 276,475 | 282,982 | 290,694 |
Diluted (in shares) | 276,475 | 282,982 | 290,694 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |
Net income (loss) attributable to Nabors | $ (372,675) |
Translation adjustment attributable to Nabors | |
Unrealized gain (loss) on translation adjustment | (116,239) |
Less: reclassification adjustment for realized loss on translation adjustment | 5,365 |
Translation adjustment attributable to Nabors | (110,874) |
Unrealized gains (losses) on marketable securities: | |
Unrealized gains (losses) on marketable securities | (15,310) |
Unrealized gains (losses) on marketable securities | (15,310) |
Pension liability amortization and adjustment | 1,104 |
Unrealized gains (losses) and amortization on cash flow hedges | 613 |
Other comprehensive income (loss), before tax | (124,467) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 648 |
Other comprehensive income (loss), net of tax | (125,115) |
Comprehensive income (loss) attributable to Nabors | (497,790) |
Net income (loss) attributable to noncontrolling interest | 381 |
Translation adjustment attributable to noncontrolling interest | (1,461) |
Comprehensive income (loss) attributable to noncontrolling interest | (1,080) |
Comprehensive income (loss) | $ (498,870) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (1,029,607) | $ (372,294) | $ (669,244) |
Adjustments to net income (loss): | |||
Depreciation and amortization | 874,296 | 973,318 | 1,148,309 |
Deferred income tax expense (benefit) | (206,670) | (203,145) | (240,195) |
Impairments and other charges | 236,745 | 129,341 | 650,199 |
Deferred financing costs amortization | 4,381 | 5,290 | 4,231 |
Discount amortization on long-term debt | 2,074 | 1,969 | 3,131 |
Losses (gains) on debt buyback | 6,665 | (5,576) | |
Losses (gains) on long-lived assets, net | 85,064 | 63,338 | 353,110 |
Losses (gains) on investments, net | (5,580) | ||
Impairments on equity method holdings | 216,242 | 180,591 | |
Losses (gains) on merger and acquisitions | (49,382) | ||
Share-based compensation | 32,000 | 47,313 | 37,190 |
Foreign currency transaction losses (gains), net | 5,669 | 9,881 | 1,021 |
Pension Buy-out | 3,059 | ||
Equity in losses of unconsolidated affiliates, net of dividends | 221,914 | 84,275 | 7,102 |
Other | 1,333 | 627 | (762) |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | 250,400 | 529,151 | (126,883) |
Inventory | 40,647 | 23,852 | (65,398) |
Other current assets | 37,904 | 34,390 | 118,162 |
Other long-term assets | 98 | (27,461) | (30,475) |
Trade accounts payable and accrued liabilities | (180,200) | (566,042) | 267,907 |
Income taxes payable | (46,576) | (1,680) | (57,113) |
Other long-term liabilities | (10,203) | (6,776) | 381,623 |
Net cash provided by operating activities | 531,905 | 856,556 | 1,781,911 |
Cash flows from investing activities: | |||
Purchases of investments | (24) | (9) | (319) |
Sales and maturities of investments | 739 | 961 | 23,992 |
Proceeds from sales of unconsolidated affiliates | 750 | ||
Cash paid for acquisition of businesses, net of cash acquired | (22,278) | (80,187) | (72,534) |
Investment in unconsolidated affiliates | (445) | (2,365) | |
Capital expenditures | (395,455) | (867,106) | (1,821,315) |
Proceeds from sales of assets and insurance claims | 34,831 | 68,206 | 156,761 |
Proceeds from merger transaction | 650,050 | ||
Other | 64 | 1,081 | (1,879) |
Net cash (used for) provided by investing activities | (382,123) | (227,449) | (1,716,909) |
Cash flows from financing activities: | |||
Increase (decrease) in cash overdrafts | 3 | 645 | (6,151) |
Proceeds from Issuance of Long-term Debt | 600,000 | ||
Debt issuance costs | (11,520) | (1,847) | |
Proceeds from revolving credit facilities | 611,500 | 465,000 | |
Reduction in revolving credit facilities | (611,500) | (450,000) | (230,932) |
Proceeds from (payments for) issuance of common shares | 967 | 1,296 | 30,263 |
Repurchase of common shares | (1,687) | (99,598) | (250,037) |
Purchase of preferred stock | (70,875) | ||
Reduction in long term debt | (493,612) | (27,478) | (46,800) |
Dividends to shareholders | (50,924) | (69,363) | (59,145) |
Proceeds from (payment for) commercial paper, net | (8,000) | (525,119) | 203,275 |
Proceeds from term Loan | 625,000 | ||
Payments on term loan | (162,500) | (300,000) | |
Proceeds from (payments for) short-term borrowings | (6,211) | 318 | |
Cash proceeds from noncontrolling Interest | 3,972 | ||
Other | (4,732) | (7,767) | (11,550) |
Net cash (used for) provided by financing activities | (138,216) | (849,941) | 69,848 |
Effect of exchange rate changes on cash and cash equivalents | (2,003) | (25,785) | (23,616) |
Net increase (decrease) in cash and cash equivalents | 9,563 | (246,619) | 111,234 |
Cash and cash equivalents, beginning of period | 254,530 | 501,149 | 389,915 |
Cash and cash equivalents, end of period | $ 264,093 | $ 254,530 | $ 501,149 |
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, 2013 | $ 324 | $ 2,392,585 | $ 216,140 | $ 4,304,664 | $ (944,627) | $ 12,091 | $ 5,981,177 |
Balance (in shares) at Dec. 31, 2013 | 323,711 | ||||||
Increase (Decrease) in Equity | |||||||
Net income (loss) | (670,659) | 1,415 | (669,244) | ||||
Dividends to shareholders | (59,145) | (59,145) | |||||
Redemption of subsidiary preferred stock | (1,688) | (1,688) | |||||
Repurchase of treasury shares | (250,037) | (250,037) | |||||
Other comprehensive income (loss), net of tax | (138,618) | (1,017) | (139,635) | ||||
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options | $ 3 | 30,260 | 30,263 | ||||
Issuance of common shares for stock options exercised (in shares) | 3,036 | ||||||
Share-based compensation | 37,157 | 37,157 | |||||
Other | $ 1 | (7,741) | (2,319) | (10,059) | |||
Other (in shares) | 1,449 | ||||||
Balance at the end 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) | (372,675) | 381 | (372,294) | ||||
Dividends to shareholders | (69,363) | (69,363) | |||||
Repurchase of treasury shares | (99,598) | (99,598) | |||||
Other comprehensive income (loss), net of tax | (125,115) | (1,461) | (126,576) | ||||
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options | 1,296 | 1,296 | |||||
Issuance of common shares for stock options exercised (in shares) | 141 | ||||||
Share-based compensation | 47,863 | 47,863 | |||||
Other | $ 3 | (8,320) | 2,068 | (6,249) | |||
Other (in shares) | 2,189 | ||||||
Balance at the end 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) | (1,029,742) | 135 | (1,029,607) | ||||
Dividends to shareholders | (67,965) | (67,965) | |||||
Repurchase of treasury shares | (1,687) | (1,687) | |||||
Other comprehensive income (loss), net of tax | 35,474 | 251 | 35,725 | ||||
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options | 967 | 967 | |||||
Issuance of common shares for stock options exercised (in shares) | 102 | ||||||
Share-based compensation | 32,000 | 32,000 | |||||
Other | $ 3 | (4,735) | (3,774) | (8,506) | |||
Other (in shares) | 2,970 | ||||||
Balance at the end of the period at Dec. 31, 2016 | $ 334 | $ 2,521,332 | $ (12,119) | $ 2,033,427 | $ (1,295,949) | $ 7,770 | $ 3,254,795 |
Balance (in shares) at Dec. 31, 2016 | 333,598 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Operations | |
Nature of Operations | Nabors Industries Ltd. and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 Nature of Operations We own and operate the world’s largest land-based drilling rig fleet and are a leading provider of offshore platform and drilling rigs 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. The consolidated financial statements and related footnotes are presented in accordance with GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Principles of Consolidation Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non‑majority owned subsidiaries required to be consolidated under GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Investments in operating entities where we have the ability to exert significant influence, but where we do not control operating and financial policies, are accounted for using the equity method. Our share of the net income (loss) of these entities is recorded as earnings (losses) from unconsolidated affiliates in our consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our consolidated balance sheets. 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 were 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. See Note 9—Investments in Unconsolidated Affiliates. Change in Presentation Certain amounts within our consolidated statements of income (loss) have been reclassified to conform to the current period presentation. Cash and Cash Equivalents Cash and cash equivalents include demand deposits and various other short‑term investments with original maturities of three months or less. Investments Short‑term investments Short‑term investments consist primarily of equity securities. Securities classified as available‑for‑sale are stated at fair value. Unrealized holding gains and temporary losses for available‑for‑sale securities are excluded from earnings and, until realized, are presented in the statement of comprehensive income (loss). Unrealized holding losses are included in earnings during the period for which the loss is determined to be other‑than‑temporary. In computing realized gains and losses on the sale of equity securities, the specific‑identification method is used. In accordance with this method, the cost of the equity securities sold is determined using the specific cost of the security when originally purchased. 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 costs methods and includes the cost of materials, labor and manufacturing overhead. Inventory, which is net of reserves of $26.5 million, included the following: December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $ Property, Plant and Equipment Property, plant and equipment, including renewals and betterments, are stated at cost, while maintenance and repairs are expensed currently. Interest costs applicable to the construction of qualifying assets are capitalized as a component of the cost of such assets. We provide for the depreciation of our drilling and workover rigs using the units‑of‑production method. For each day a rig is operating, we depreciate it over an approximate 4,927‑day period, with the exception of our jackup rigs which are depreciated over an 8,030‑day period, after provision for salvage value. For each day a rig asset is not operating, it is depreciated over an assumed depreciable life of 20 years, with the exception of our jackup rigs, where a 30‑year depreciable life is used, after provision for salvage value. Depreciation on our buildings, well‑servicing rigs, oilfield hauling and mobile equipment, marine transportation and supply vessels, and other machinery and equipment is computed using the straight‑line method over the estimated useful life of the asset after provision for salvage value (buildings—10 to 30 years; well‑servicing rigs—3 to 15 years; marine transportation and supply vessels—10 to 25 years; oilfield hauling and mobile equipment and other machinery and equipment—3 to 10 years). Amortization of capitalized leases is included in depreciation and amortization expense. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are removed from the respective property, plant and equipment accounts and any gains or losses are included in our consolidated statements of income (loss). 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 the extent the carrying amount of the long-lived asset exceeds its estimated fair value. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. The determination of future cash flows requires the estimation of utilization, dayrates, operating margins, sustaining capital and remaining economic life. 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 significantly prolonged period of lower oil and natural gas prices could continue to adversely affect the demand for and prices of our services, which could result in future impairment charges. 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 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 may 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 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. The fair values calculated in these impairment tests were determined using discounted cash flow models involving assumptions based on our utilization of rigs or other oil and gas service equipment, revenues and earnings from affiliates, as well as direct costs, general and administrative costs, depreciation, applicable income taxes, capital expenditures and working capital requirements. Our discounted cash flow projections for each reporting unit were based on financial forecasts. The future cash flows were discounted to present value using discount rates determined to be appropriate for each reporting unit. Terminal values for each reporting unit were calculated using a Gordon Growth methodology with a long‑term growth rate of 3%. 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 compared the sum of our reporting units’ estimated fair value, which included the estimated fair value of non‑operating assets and liabilities, less debt, to our market capitalization and assessed 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. During the fourth quarter of 2016, we performed an updated analysis due to market conditions. We concluded that the fair values of our reporting units exceeded their carrying value, thus no impairment was recorded during 2016. Although we determined that there was no goodwill impairment, should current market conditions worsen or persist for an extended period of time, the timeline estimated to manufacture products and/or the viability of the products to come to market in the future could result in future impairment charges in our Rig Services segment related to 2TD. The change in the carrying amount of goodwill for our business lines for the years ended December 31, 2016 and 2015 was as follows: Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2014 Adjustments Impairments Adjustment 2015 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — (1) — — Rig Services (2) — Subtotal Drilling & Rig Services — Completion & Production Services Completion — — — — — Production — (3) — — Subtotal Completion & Production Services — — — Total $ $ $ $ $ Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2015 Adjustments Impairments Adjustment 2016 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — — — Rig Services — — Total $ $ — $ — $ $ (1) Represents the goodwill recorded in connection with our acquisition of Nabors Arabia. See Note 5—Acquisitions for additional discussion. (2) Represents the goodwill recorded in connection with our acquisition of 2TD. See Note 5 — Acquisitions for additional discussion. (3) Represents the goodwill associated with the Completion & Production Services business that was merged with CJES. See Note 9—Investments in unconsolidated affiliates for additional discussion. Goodwill for the consolidated company, totaling approximately $11.2 million, is expected to be deductible for tax purposes. Litigation and Insurance Reserves We estimate our reserves related to litigation and insurance based on the facts and circumstances specific to the litigation and insurance claims and our past experience with similar claims. We maintain actuarially determined accruals in our consolidated balance sheets to cover self‑insurance retentions. See Note 17—Commitments and Contingencies regarding self‑insurance accruals. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can reasonably 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. 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 December 31, 2016 and 2015, our deferred revenues classified as other long-term liabilities were $321.0 million and $324.3 million, respectively. At December 31, 2016 and 2015, our deferred revenues classified as accrued liabilities were $255.6 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 December 31, 2016 and 2015, our deferred expenses classified as other current assets were $63.4 million and $79.6 million, respectively. At December 31, 2016 and 2015, our deferred expenses classified as other long-term assets were $69.5 million and $68.9 million, respectively. We recognize revenue for top drives and other capital equipment 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 or 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, 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, net. We recognize reimbursements received for out‑of‑pocket expenses incurred as revenues and account for out‑of‑pocket expenses as direct costs. Research and Engineering Research and engineering expenses are expensed as incurred and include costs associated with the research and development of new products and services and costs associated with sustaining engineering of existing products and services. As a result of our acquisition of 2TD during 2014, we recorded intangible assets related to in process research and development of $47.7 million. As these products are developed, we will transfer the balances to completed technology and begin amortizing the intangible assets over the estimated useful life. No transfers occurred during the years ended December 31, 2016, 2015 or 2014. We have made progress in the development of our rotary steerable drilling technology tools, including successful tests in 2015 and most recently in October of 2016. The tools are currently being modified to another phase of verification testing before shipping the tools to the U.S. for further field tests. Income Taxes We are a Bermuda exempted company and are not subject to income taxes in Bermuda. We have provided for income taxes based on the tax laws and rates in effect in the countries where we operate and earn income. The income taxes in these jurisdictions vary substantially. Our worldwide effective tax rate for financial statement purposes will continue to fluctuate from year to year due to the change in the geographic mix of pre-tax earnings. We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long‑term liabilities. For U.S. and other jurisdictional income tax purposes, we have net operating loss carryforwards that we are required to assess quarterly for potential valuation allowances. We consider the sufficiency of existing temporary differences and expected future earnings levels in determining the amount, if any, of valuation allowance required against such carryforwards and against deferred tax assets. Foreign Currency Translation For certain of our foreign subsidiaries, such as those in Canada, the local currency is the functional currency, and therefore translation gains or losses associated with foreign‑denominated monetary accounts are accumulated in a separate section of the consolidated statements of changes in equity. For our other international subsidiaries, the U.S. dollar is the functional currency, and therefore local currency transaction gains and losses, arising from remeasurement of payables and receivables denominated in local currency, are included in our consolidated statements of income (loss). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: · depreciation of property, plant and equipment; · impairment of long‑lived assets; · impairment of goodwill and intangible assets; · impairment of short-term and equity method investments; · income taxes; · litigation and self‑insurance reserves; and · fair value of assets acquired and liabilities assumed. 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. During 2016, we established an implementation team and began a detailed analysis of our contracts in place during the retrospective period. We plan to have all revenue streams assessed and the impact of the new standard on the prior period quantified during 2017. As we are still evaluating certain aspects of our contract drilling revenues, we are unable to quantify the impact that the new revenue standard will have on our consolidated financial statements at this time. 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 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 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 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 will adopt this standard effective January 1, 2017 and the adoption will not have a material impact on our 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 consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes, which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. 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 consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash to provide guidance on the classification of restricted cash in the statement of cash flows. This guidance is effective for public companies for fiscal years beginning after beginning after December 15, 2017. Early application is permitted. The amendments in the ASU should be adopted on a retrospective basis. We are currently evaluating the impact this will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other, which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under this new standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognize an impairment charge, as necessary, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements. |
Impairments and Other Charges
Impairments and Other Charges | 12 Months Ended |
Dec. 31, 2016 | |
Impairments and Other Charges | |
Impairments and Other Charges | Note 3 Impairments and Other Charges The components of impairments and other charges are provided below: Year Ended December 31, 2016 2015 2014 (In thousands) Tangible Assets & Equipment: Provision for retirement of assets $ $ $ Impairment of long-lived assets Subtotal Goodwill & Intangible Assets: Goodwill impairments — — Intangible asset impairment — — Subtotal — — Other Charges: Other-than-temporary impairment Provision for International operations — — Total $ $ $ For the year ended December 31, 2016 Throughout the first half of 2016, we continued to experience decreased demand for our services as well as increased pricing pressure. Although there was a slight uptick in activity over the latter half of 2016, management evaluated our existing rig fleet and identified asset classes that may not fully participate in the next drilling cycle given the current requirements of many drilling programs and other factors. This resulted in both the provision for retirement of assets and tangible asset impairments. The majority of the remaining charges are attributable to our previous investment in CJES, which experienced severe financial and operational difficulties in their business, and ultimately commenced voluntarily cases under chapter 11 of the U.S. Bankruptcy code in July 2016. These charges are outlined below. Tangible Assets and Equipment The following table summarizes the 2016 retirement and impairment charges for tangible assets and equipment by reportable operating segment: Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Other — Total $ $ $ During 2016, we retired certain classes of rigs and rig components in our U.S., Canada and International drilling operating segments and reduced their carrying value to their estimated salvage value. As a result of the sustained decline in oil and gas prices and the extended period of reduced demand for some of our legacy asset classes, we retired 24 of our remaining SCR rigs within the U.S. drilling operating segment. We utilized some of the parts on these retired rigs to enhance and upgrade other existing rigs in our fleet. Additionally, we retired 7 older rigs in our Canada Drilling operating segment. Within our International drilling operating segment, we also retired various older, smaller and in some cases functionally obsolete rigs and yard assets. In 2016, we also recorded impairments totaling $216.4 million primarily comprised of $163.2 million for underutilized rigs in our U.S. Drilling operating segment as well as $12.7 million in our International drilling operating segment. These impairments were deemed necessary due to the lack of future contractual opportunities because of the nature of the rigs being lower horsepower and size than our newer rigs, which limits the rigs functional capabilities of drilling many of the more complex wells in the current environment. Included in the other amount was an impairment of $22.4 million that we recognized related to our retained interest in the oil and gas properties located on the North Slope of Alaska to reduce the carrying value to fair value, as a result of the sustained decline in oil prices. The balance of the impairment charge primarily relates to obsolete inventory and various rig-related equipment within our Rig Services operating segment. Other-than-temporary impairment During 2016, we recognized impairment charges associated with our CJES holdings in the amount of $216.2 million resulting from declines in the fair value of our investment including other than temporary impairment charges of $192.4 million. Additionally, we recorded a charge related to a reserve of certain other amounts associated with our CJES holdings, including affiliate receivables of $23.8 million. The balance of the charge was related to an impairment of an equity security during the third quarter of 2016. As the trading price of the 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. See Note 9—Investments in Unconsolidated Affiliates. For the year ended December 31, 2015 Throughout 2015, our industry continued to experience depressed oil prices, which led to considerable reductions in capital spending by some of our customers and has diminished demand for our drilling services. The impact of the industry downturn on our business activity and future outlook resulted in impairments and retirement provisions of approximately $140.1 million, an other-than-temporary impairment on our investment in CJES of $180.6 million, and the provision for International operations of $48.3 million during 2015 as discussed below. Tangible Assets and Equipment The following table summarizes the 2015 retirement and impairment charges for tangible assets and equipment by reportable operating segment: Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ — $ Canada — International Rig Services — Other — Total $ $ $ During 2015, we retired some rigs and rig components in our U.S., Canada and International drilling operating segments and reduced their carrying value to their estimated salvage value. Due to market conditions and resulting competitive drilling market, we experienced a decline in utilization of our remaining legacy rigs. Accordingly, we retired roughly half of our fleet of SCR rigs within the U.S. Drilling operating segment, continuing to market the remaining 47 of our most competitive assets within this group. Additionally, we retired various yard assets within our International operating segment as well as rig-related equipment in our Canada operating segment. In 2015, we also recorded impairments totaling $74.5 million primarily comprised of $52.5 million for an inactive jackup rig in our International operating segment. We recognized an impairment of $15.1 million to our retained interest in the oil and gas properties located on the North Slope of Alaska to reduce the carrying value to fair value, as a result of the sustained decline in oil prices. The balance of the impairment charge primarily relates to obsolete inventory within our Rig Services operating segment. Other-than-temporary impairment During the third quarter of 2015, we determined the carrying value of our investment in CJES was other than temporarily impaired which resulted in an impairment charge of $180.6 million. The charge directly resulted from reduced activity levels driven by lower customer demand stemming from lower oil prices coupled with the further pricing concessions required by the highly competitive environment. See Note 9—Investments in Unconsolidated Affiliates. Provision for International operations During 2015, we recognized $25.4 million related to assets and receivables impacted by the degradation of the overall country economy and financial situation in Venezuela, which has been 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 which was 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 another country within the region of $22.9 million. For the year ended December 31, 2014 During the latter part of 2014, oil prices fell sharply and remained depressed into 2015. As a result of the reduced price of oil, we experienced a decline in the demand for drilling and completion services as customers reduced or curtailed their capital spending and drilling activities. The reduction in demand for drilling services, coupled with the increased supply of newly built high specification rigs in the drilling market, has led to a highly competitive market for all rigs, including high specification rigs. This has accelerated the under-utilization of our legacy rig fleet (non AC rigs). We have also experienced downward pricing pressure for our services. Due to the aforementioned factors, we recorded impairments and retirement provisions of approximately $1 billion during 2014, as detailed in the table above. The impairments and retirement provision were comprised of approximately $611.6 million in charges related to drilling rigs and rig equipment and $386.5 million in impairments to our goodwill and intangible assets. Tangible Assets and Equipment The following table summarizes the 2014 retirement and impairment charges for tangible assets and equipment by operating segment: Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services — Total $ $ $ The majority of the 2014 charges from drilling rigs and rig equipment is due to the U.S. lower 48 legacy rig fleet. Given the sharp decline in crude oil prices and the resulting impact on our customers’ spending programs that we have experienced, and the disproportionate impact of the reduced activity that we believe our legacy rig fleet will absorb, we have retired approximately 25 mechanical rigs and impaired our fleet of SCR rigs, including retirements of rig related equipment associated with a reduced overall size of our working rig fleet. Also included in the 2014 charges for our U.S. drilling rigs and rig equipment is a retirement provision of approximately $54.4 million for our Gulf of Mexico jackup fleet. This market has been challenged for the past several years and we believe the drop in oil prices will exacerbate the lack of demand for these rigs. The majority of these rigs would require substantial amounts of capital in order for them to be operable again. The balance of the drilling rigs and rig equipment charges relate to our coil tubing drilling rig fleet in Canada and various under-utilized rigs or asset classes throughout our International and Canada drilling fleets. We also recognized an impairment charge related to obsolete inventory within our Rig Services operating segment. Goodwill and Intangible Assets During 2014, we recognized an impairment of goodwill totaling $356.6 million, the majority of which was for the remaining goodwill balance of $335.0 million in our Completion Services operating segment related to the acquisition of Superior Well Services, Inc. in 2010. The value attributable to the Merger with CJES declined sharply beginning in the fourth quarter of 2014, with a drop in the market price of CJES's stock and the agreed upon reduction to the amount of cash we expect to receive from this transaction. The combination of these events and a sharp decline in the market price of our stock, led us to believe that a triggering event had occurred in the fourth quarter of 2014, and we performed an impairment test on our remaining goodwill balances. We determined that our Completion Services goodwill balances should be fully impaired. The balance of the impairment relates to $21.6 million in goodwill related to Ryan Directional Services, Inc., our directional drilling operations included in our Rig Services operating segment. The decline in oil prices and the impact it has had on our businesses, along with the lack of certainty surrounding an eventual recovery, led us to impair these goodwill balances. Additionally, during 2014, we recognized an impairment of $29.9 million primarily related to various customer relationships within our Completion & Production Services and Rig Services operating segments. Other‑than‑temporary impairment During 2014, we recorded an other‑than‑temporary impairment of $7.0 million 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. |
Assets Held for Sale and Discon
Assets Held for Sale and Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Assets Held for Sale and Discontinued Operations | |
Assets Held for Sale and Discontinued Operations | Note 4 Assets Held for Sale and Discontinued Operations Assets Held for Sale Assets held for sale as of December 31, 2016 and 2015 was $76.7 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 $65.0 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. The carrying value of our assets held for sale represents the lower of carrying value or fair value less costs to sell. We continue to market these properties at prices that are reasonable compared to current fair value. We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing associated with these properties held for sale. At December 31, 2016, our undiscounted contractual commitments for these contracts approximated $17.2 million, and we had total liabilities of $12.5 million, $5.5 million of which were classified as current and are included in accrued liabilities. At December 31, 2015, our undiscounted contractual commitments for these contracts approximated $23.3 million, and we had total liabilities of $16.1 million, $5.2 million of which were classified as current and are included in accrued liabilities. The amounts at each balance sheet date represented 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 The operating results from the assets discussed above for all periods presented are retroactively presented and accounted for as discontinued operations in the accompanying audited consolidated statements of income (loss) and the respective accompanying notes to the consolidated financial statements. Our condensed statements of income (loss) from discontinued operations for each operating segment were as follows: Year Ended December 31, 2016 2015 2014 (In thousands, except percentages) 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 $ $ $ Income (loss) from Rig Services discontinued operations: Income (loss) from discontinued operations $ — $ — $ — Less: Impairment charges or other (gains) and losses on sale of wholly owned assets $ — $ (3) $ — Less: Income tax expense (benefit) $ — $ $ — Income (loss) from Rig Services discontinued operations, net of tax $ — $ $ — Income (loss) from discontinued operations, net of tax $ $ $ Oil and Gas (1) Reflects operating revenues of our historical oil and gas operating segment. (2) Includes impairment charges of $15.4 million and $51.0 million in 2016 and 2015, respectively, due to the deterioration of economic conditions in the natural gas market in western Canada, partially offset by a gain related to our restructure of our future pipeline obligations. Rig Services (3) Reflects an impairment charge for a note receivable of $3.1 million remaining from the sale of one of our former Canada subsidiaries that provided logistics services. During 2014, we sold a large portion of our interest in proved oil and gas properties located on the North Slope of Alaska, which was previously classified as discontinued operations. Under the terms of the agreement, we received $35.1 million at closing and expected to receive additional payments of $27.0 million upon certain future dates or the properties achieving certain production targets. In the event these production targets are not met and payments are not received, our recourse would be to reclaim the properties. During 2016, we recognized charges of $22.4 million to reserve for amounts associated with our retained interest in these properties. We retained both a working interest and an overriding royalty interest in the properties. The working interest is fully carried up to $600 million of total project costs. The $22.2 million gain from the transaction is included in other, net in our consolidated statement of income (loss) for the year ended December 31, 2014. The retained interest is no longer classified as assets-held-for-sale and is included in other long-term assets. We have not recast prior period results as the balances are not material to our consolidated statements of income (loss) for any period. Additional discussion of our policy pertaining to the calculations of our annual impairment tests, including any impairment to goodwill, is set forth in Note 2—Summary of Significant Accounting Policies. A further protraction of lower commodity prices or an inability to sell these assets in a timely manner could result in recognition of future impairment charges. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions | |
Acquisitions | Note 5 Acquisitions 2015 Acquisitions On May 24, 2015, we paid $106.0 million in cash to acquire the remaining 49% equity interest in Nabors Arabia, our joint venture in Saudi Arabia, making it a wholly owned subsidiary. Previously, we held a 51% equity interest with a carrying value of $44.7 million and we had accounted for the joint venture as an equity method investment. The acquisition of the remaining interest allows us to strategically align our future growth in this market by providing additional flexibility to invest capital and pursue future investment opportunities. As a result, we consolidated the assets and liabilities of Nabors Arabia on May 24, 2015 based on their respective fair values. We have also consolidated the operating results of Nabors Arabia since the acquisition date and reported those results in our International drilling segment. The excess of the estimated fair value of the assets and liabilities over the net carrying value of our previously held equity interest resulted in a gain of $2.3 million and was reflected in other, net in the consolidated statement of income (loss) for the year ended December 31, 2015. The following table provides the allocation of the purchase price as of the acquisition date. The purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on fair value. The excess of the purchase price over such fair values was recorded as goodwill. Fair Value (In thousands) at Acquisition Assets: Cash $ Accounts receivable Other current assets Property, plant and equipment, net Intangible assets Goodwill Other long-term assets Total assets Liabilities: Accounts payable $ Accrued liabilities Intangible liability Deferred tax liability Other long-term liabilities Total liabilities Net assets acquired $ The goodwill recognized as a result of the acquisition of $75.6 million is primarily attributable to the workforce of the acquired business, strategic market access, ability to provide other services and products, a strategic customer with a long history of business and the expected synergies from combining the operations. This goodwill is not expected to be deductible for tax purposes. The identifiable intangible asset of $28.8 million and liability of $13.5 million consist of the fair value of the acquired favorable and unfavorable contracts, respectively, with a weighted-average amortization period of 2 years. We included an additional $248.9 million in operating revenues and $6.0 million in earnings from the acquisition date through December 31, 2015 in our consolidated statements of income (loss) as a result of this acquisition. The following unaudited supplemental pro forma results present consolidated information as if the acquisition had been completed as of January 1, 2014. The unaudited supplemental pro forma results should not be considered indicative of the results that would have occurred if the acquisition had been consummated as of January 1, 2014; nor are they indicative of future results. Year Ended December 31, (In thousands, except per share amounts) 2015 2014 Operating revenues $ $ Income (loss) from continuing operations, net of tax Income (loss) from continuing operations per share - basic $ $ Income (loss) from continuing operations per share - diluted $ $ 2014 Acquisitions In October 2014, we purchased the outstanding shares of 2TD, a drilling technology company based out of Norway. 2TD is in the process of developing a rotary steerable system for directional drilling which, once developed will be included in our Rig Services segment. Under the terms of the transaction, we paid an initial amount of $40.3 million for the purchase of the shares. We may also be required to make future payments contingent on the achievement of various milestone objectives. As of December 31, 2016, these future payments are estimated to be $13.9 million. As part of our purchase price allocation, we recorded intangible assets of $47.7 million (in process research and development), goodwill of $28.1 million and contingent consideration of $24.7 million. The proforma effect on revenue and net income have been determined to be immaterial to our financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6 Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market‑corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy: · Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; · Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and · Level 3 measurements include those that are unobservable and of a subjective nature. Our financial assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2016 consist primarily of available-for-sale equity securities. During 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 $31.1 million as of December 31, 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, 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 carrying and fair values of these liabilities were as follows: As of December 31, 2016 2015 Effective Effective Interest Carrying Fair Interest Carrying Fair Rate Value Value Rate Value Value (In thousands, except rates) 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 % % 5.50% senior notes due January 2023 % — % — — 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. As of December 31, 2016, our short-term investments were carried at fair market value and included $31.1 million in securities classified as available-for-sale. As of December 31, 2015, our short-term investments were carried at fair market value and included $20.1 million in securities classified as available-for-sale. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation | |
Share-Based Compensation | Note 7 Share‑Based Compensation Total share‑based compensation expense, which includes stock options and restricted shares, totaled $32.0 million, $47.3 million and $37.2 million for 2016, 2015 and 2014, respectively. Compensation expense related to awards of restricted shares totaled $31.3 million, $37.0 million and $35.0 million for 2016, 2015 and 2014, respectively, which is included in direct costs and general and administrative expenses in our consolidated statements of income (loss). Additionally, we recognized $8.7 million of expense related to awards of restricted shares granted in connection with the closing of the Merger during 2015 which is included in other, net in our consolidated statements of income (loss). Share-based compensation expense has been allocated to our various operating segments. See Note 21—Segment Information. In addition to the time-based restricted stock share-based awards, we provide two types of performance share awards: the first, based on our performance measured against pre-determined performance metrics and the second, based on market conditions measured against a predetermined peer group. The performance period for the awards granted in 2016 commenced on January 1, 2015 and ended December 31, 2015. Stock Option Plans As of December 31, 2016, we had several stock plans under which options to purchase our common shares could be granted to key officers, directors and managerial employees of Nabors and its subsidiaries. Options granted under the plans generally are at prices equal to the fair market value of the shares on the date of the grant. Options granted under the plans generally are exercisable in varying cumulative periodic installments after one year. In the case of certain key executives and directors, options granted may vest immediately on the grant date. Options granted under the plans cannot be exercised more than ten years from the date of grant. Options to purchase 8.0 million and 3.3 million Nabors common shares remained available for grant as of December 31, 2016 and 2015, respectively. Of the common shares available for grant as of December 31, 2016, approximately 6.8 million of these shares are also available for issuance in the form of restricted shares. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model which uses assumptions for the risk-free interest rate, volatility, dividend yield and the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equal to the expected term of the option. Expected volatilities are based on implied volatilities from traded options on Nabors’ common shares, historical volatility of Nabors’ common shares, and other factors. We use historical data to estimate the expected term of the options and employee terminations within the option-pricing model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of the options represents the period of time that the options granted are expected to be outstanding. We also consider an estimated forfeiture rate for these option awards, and we recognize compensation cost only for those shares that are expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three to five years. The forfeiture rate is based on historical experience. Estimated forfeitures have been adjusted to reflect actual forfeitures during 2016. Stock option transactions under our various stock-based employee compensation plans are presented below: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (In thousands, except exercise price) Options outstanding as of December 31, 2015 $ Granted Exercised Forfeited Options outstanding as of December 31, 2016 $ 3.35 years $ Options exercisable as of December 31, 2016 $ 3.30 years $ During 2016, 2015 and 2014, respectively, we awarded options vesting over periods up to four years to purchase 99,711, 158,219 and 60,662 of our common shares to our employees, executive officers and directors. The fair value of stock options granted during 2016, 2015 and 2014 was calculated using the Black‑Scholes option pricing model and the following weighted‑average assumptions: Year Ended December 31, 2016 2015 2014 Weighted average fair value of options granted $ $ $ 6.76 Weighted average risk free interest rate 1.37% Dividend yield 1.21% Volatility (1) 51.01% Expected life (in years) 4.0 (1) Expected volatilities are based on implied volatilities from publicly traded options to purchase Nabors' common shares, historical volatility of Nabors' common shares and other factors. A summary of our unvested stock options as of December 31, 2016, and the changes during the year then ended is presented below: Weighted-Average Grant-Date Fair Unvested Stock Options Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2015 $ Granted Vested Forfeited — — Unvested as of December 31, 2016 $ The total intrinsic value of options exercised during 2016, 2015 and 2014 was $0.3 million, $0.8 million and $49.1 million, respectively. The total fair value of options that vested during the years ended December 31, 2016, 2015 and 2014 was $1.9 million, $1.9 million and $2.0 million, respectively. As of December 31, 2016, there was $0.2 million of total future compensation cost related to unvested options that are expected to vest. That cost is expected to be recognized over a weighted‑average period of approximately two years. Restricted Stock Our stock plans allow grants of restricted shares. Restricted shares are issued on the grant date, but cannot be sold or transferred. Restricted shares vest in varying periodic installments ranging up to five years. A summary of our restricted shares as of December 31, 2016, and the changes during the year then ended, is presented below: Weighted-Average Grant-Date Fair Restricted shares Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2015 $ Granted Vested Forfeited Unvested as of December 31, 2016 $ During 2016, 2015 and 2014, we awarded 1,885,440, 2,546,801 and 1,169,000 restricted shares, respectively, to our employees and directors. These awards had an aggregate value at their date of grant of $20.5 million, $34.8 million and $26.7 million, respectively, and were scheduled to vest over a period of up to four years. The fair value of restricted shares that vested during 2016, 2015 and 2014 was $13.5 million, $18.3 million and $28.0 million, respectively. As of December 31, 2016, there was $30.9 million of total future compensation cost related to unvested restricted share awards that are expected to vest. That cost is expected to be recognized over a weighted‑average period of approximately two years. Restricted Shares Based on Performance Conditions During the years ended December 31, 2016, 2015 and 2014, we awarded 1,284,829, 438,307 and 362,311 restricted shares, respectively, vesting over a period of three years to some of our executives. The performance awards granted were based upon achievement of specific financial or operational objectives. The number of shares granted was determined by the number of performance goals achieved during fiscal years 2015, 2014 and 2013, respectively. These awards had an aggregate fair value at their date of grant of $13.9 million, $5.9 million and $8.0 million, respectively. The following table sets forth information regarding outstanding restricted shares based on performance conditions as of December 31, 2016: Weighted-Average Grant-Date Fair Performance based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2015 $ Granted Vested Outstanding as of December 31, 2016 $ Until shares are granted, our awards that are earned based on performance conditions are liability-classified awards. Our accrued liabilities included $2.5 million for such awards at December 31, 2016 for the performance period beginning January 1, 2016 through December 31, 2016 and $2.2 million for such awards at December 31, 2015 for the performance period beginning January 1, 2015 through December 31, 2015. The fair value of these awards that vested during the years ended December 31, 2016, 2015 and 2014 was $1.5 million, $6.8 million and $5.9 million, respectively. The fair value of these liability-classified awards are estimated at each reporting period, based on internal metrics and marked to market. Restricted Shares Based on Market Conditions During 2016, 2015 and 2014, we granted 749,427, 544,925 and 395,550 restricted shares, respectively, which are equity classified awards and will vest on our performance compared to our peer group over a three-year period. These awards had an aggregate fair value at their date of grant of $4.2 million, $4.7 million and $4.5 million, respectively, after consideration of all assumptions. The grant date fair value of these awards was based on a Monte Carlo model, using the following assumptions: Year Ended December 31, 2016 2015 2014 Risk free interest rate Expected volatility Closing stock price at grant date $ $ $ Expected term (in years) The following table sets forth information regarding outstanding restricted shares based on market conditions as of December 31, 2016: Weighted-Average Grant-Date Fair Market based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2015 $ Granted Vested Forfeited Outstanding as of December 31, 2016 $ As of December 31, 2016, there was $4.6 million of total future compensation cost related to unvested performance share awards that are expected to vest. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 8 Property, Plant and Equipment The major components of our property, plant and equipment are as follows: December 31, 2016 2015 (In thousands) Land $ $ Buildings Drilling, workover and well-servicing rigs, and related equipment Marine transportation and supply vessels — Oilfield hauling and mobile equipment Other machinery and equipment Oil and gas properties Construction-in-process (1) $ $ Less: accumulated depreciation and amortization $ $ (1) Relates primarily to amounts capitalized for new or substantially new drilling rigs and related equipment that were under construction and had not yet been placed in service as of December 31, 2016 or 2015. Depreciation expense included in depreciation and amortization expense in our consolidated statements of income (loss) totaled $855.4 million, $951.4 million and $1.1 billion during 2016, 2015 and 2014, respectively. Repair and maintenance expense included in direct costs in our consolidated statements of income (loss) totaled $151.4 million, $304.7 million and $603.4 million during 2016, 2015 and 2014, respectively. Interest costs of $6.7 million, $20.4 million and $24.4 million were capitalized during 2016, 2015 and 2014, respectively. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Unconsolidated Affiliates | |
Investments in Unconsolidated Affiliates | Note 9 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 ($650.0 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 and certain of its subsidiaries commenced voluntarily cases 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. As a result of the chapter 11 filing, beginning in the third quarter of 2016, we ceased accounting for our investment in CJES as an equity method investment and began to report this investment at our estimated fair value as we did not expect to have a meaningful continuing interest in CJES. We wrote off the remaining carrying value of our investment in CJES during the second quarter of 2016, and as such, there was no impact to our consolidated financial statements 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 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 were 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 consolidated statement of income (loss) was as follows for the periods noted below: Years Ended December 31, 2016 2015 2014 (In thousands) Nabors' share of equity method earnings (losses) $ $ $ — 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. During 2015, we recorded a post-closing adjustment of $5.5 million attributable to the settlement of certain working capital requirements at the completion of the transition period. We recorded our investment in the equity of CJES in the investment in unconsolidated affiliates line in our 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. Similarly, during 2015, we recorded an other than temporary impairment charge of $180.6 million. These other-than-temporary impairments are reflected in impairments and other charges in our consolidated statements of income (loss) for the years ended December 31, 2016 and 2015. See Note 3—Impairments and Other Charges. As a result of CJES’s Chapter 11 filing on July 20, 2016, we determined our investment was other than temporarily impaired as of June 30, 2016 and recorded a charge of $39.0 million to write off substantially all of the remaining net book value of our investment. These charges are reflected in impairments and other charges in our consolidated statement of income (loss) for the year ended December 31, 2016. We also recognized an additional $9.1 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, net in our consolidated statement of income (loss) for the year ended December 31, 2016. Pursuant to a mediated settlement agreement we entered into with various other parties in the CJES bankruptcy proceedings, we agreed to support the debtors' chapter 11 plan of reorganization in exchange for: (i) two allowed unsecured claims for which we will receive distributions of up to $4.85 million; (ii) an amendment to the tax matters agreement providing that CJES pay up to $11.5 million of obligations for which we would have otherwise been responsible; (iii) cancellation of various other obligations we had to the debtors; (iv) our pro rata share of warrants to acquire 2% of the common equity in the reorganized debtors at a strike price of $1.55 billion; and (v) a mutual release of claims. The bankruptcy court approved the terms of the Settlement Agreement and confirmed the debtors' plan and, on January 6, 2017, CJES announced it had emerged from bankruptcy. The tables below present summarized financial information for our investments in unconsolidated affiliates. 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 consolidated statement of income (loss) during the year ended December 31, 2016 as we are not contractually responsible for losses beyond our investment. September 30, 2016 2015 (In thousands) Current assets $ $ Long-term assets $ $ Current liabilities $ $ Long-term liabilities $ $ Nine Months Ended Year Ended September 30, December 31, 2016 2015 2014 Gross revenues $ $ $ Gross margin $ $ $ Net income (loss) $ $ $ Nabors' share of equity method earnings (losses) $ $ $ |
Financial Instruments and Risk
Financial Instruments and Risk Concentration | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments and Risk Concentration | |
Financial Instruments and Risk Concentration | Note 10 Financial Instruments and Risk Concentration We may be exposed to certain market risks arising from the use of financial instruments in the ordinary course of business. These risks arise primarily as a result of potential changes in the fair market value of financial instruments that would result from adverse fluctuations in foreign currency exchange rates, credit risk, interest rates, and marketable and non‑marketable security prices as discussed below. Foreign Currency Risk We operate in a number of international areas and are involved in transactions denominated in currencies other than U.S. dollars, which exposes us to foreign exchange rate risk or foreign currency devaluation risk. The most significant exposures arise in connection with our operations in Argentina and Canada, which usually are substantially unhedged. At various times, we utilize local currency borrowings (foreign‑currency‑denominated debt), the payment structure of customer contracts and foreign exchange contracts to selectively hedge our exposure to exchange rate fluctuations in connection with monetary assets, liabilities, cash flows and commitments denominated in certain foreign currencies. A foreign exchange contract is a foreign currency transaction, defined as an agreement to exchange different currencies at a given future date and at a specified rate. Credit Risk Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, short-term and long‑term investments and accounts receivable. Cash equivalents such as deposits and temporary cash investments are held by major banks or investment firms. Our short‑term and long‑term investments are managed within established guidelines that limit the amounts that may be invested with any one issuer and provide guidance as to issuer credit quality. We believe that the credit risk in our cash and investment portfolio is minimized as a result of the mix of our investments. In addition, our trade receivables are with a variety of U.S., international and foreign‑country national oil and gas companies. Management considers this credit risk to be limited due to the financial resources of these companies. We perform ongoing credit evaluations of our customers, and we generally do not require material collateral. We do occasionally require prepayment of amounts from customers whose creditworthiness is in question prior to providing services to them. We maintain reserves for potential credit losses, and these losses historically have been within management’s expectations. Interest Rate and Marketable and Non‑marketable Security Price Risk Our financial instruments that are potentially sensitive to changes in interest rates include our floating rate debt instruments (our revolving credit facility and Nabors Delaware term loan) and our fixed rate debt securities comprised of our 2.35%, 6.15%, 9.25%, 5.0%, 4.625%, 5.50% and 5.10% senior notes. We may utilize derivative financial instruments that are intended to manage our exposure to interest rate risks. The use of derivative financial instruments could expose us to further credit risk and market risk. Credit risk in this context is the failure of a counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty would owe us, which can create credit risk for us. When the fair value of a derivative contract is negative, we would owe the counterparty, and therefore, we would not be exposed to credit risk. We attempt to minimize credit risk in derivative instruments by entering into transactions with major financial institutions that have a significant asset base. Market risk related to derivatives is the adverse effect on the value of a financial instrument that results from changes in interest rates. We try to manage market risk associated with interest‑rate contracts by establishing and monitoring parameters that limit the type and degree of market risk that we undertake. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Debt | Note 11 Debt Debt consisted of the following: As of 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 5.50% senior notes due January 2023 — 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. As of December 31, 2016, the maturities of our primary debt for each of the five years after 2016 and thereafter are as follows: Paid at Maturity (In thousands) 2017 $ — 2018 (1) 2019 (2) 2020 (3) 2021 (4) Thereafter (5) $ (1) Represents our 6.15% senior notes due February 2018. (2) Represents our 9.25% senior notes due January 2019. (3) Represents our 5.0% senior notes due September 2020 and borrowings outstanding under the term loan due September 2020. In January 2017, we issued $575 million in exchangeable notes. The net proceeds from this offering were used to prepay the remaining $162.5 million outstanding under our term loan facility. See Note 23 — Subsequent Events. (4) Represents our 4.625% senior notes due September 2021. (5) Represents our 5.50% senior notes due January 2023 and 5.10% senior notes due September 2023. Nabors Delaware’s various fixed rate debt securities comprised of our 6.15%, 9.25%, 5.0%, 4.625% and 5.10%, senior unsecured notes are fully and unconditionally guaranteed by us. The notes rank equal in right of payment to all of Nabors Delaware’s existing and future senior unsubordinated debt. The notes rank senior in right of payment to all of our existing and future senior subordinated and subordinated debt. Our guarantee of the notes is unsecured and ranks equal in right of payment to all of our unsecured and unsubordinated indebtedness from time to time outstanding. The notes are subject to redemption by Nabors Delaware, in whole or in part, at any time at a redemption price equal to the greater of (i) 100% of the principal amount of the notes then outstanding to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest, determined in the manner set forth in the applicable indenture. In the event of a change in control triggering event, as defined in the indenture, the holders of notes may require Nabors Delaware to purchase all or any part of each note in cash equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the date of purchase, except to the extent Nabors Delaware has exercised its right to redeem the notes. During 2016, 2015 and 2014, we repurchased $152.7 million, $27.5 million, and $40.6 million aggregate principal amount of our senior unsecured notes for approximately $157.5 million, $27.5 million and $46.8 million, respectively, in cash, reflecting principal, accrued and unpaid interest. 5.50% Senior Notes Due January 2023 In December 2016, Nabors Delaware issued $600 million aggregate principal amount of its 5.50% senior notes due 2023, which are fully and unconditionally guaranteed by us. The notes are subject to registration rights. The notes pay interest semi-annually on January 15 and July 15, beginning on July 15, 2017, and will mature on January 15, 2023. The notes rank equal in right of payment to all of Nabors Delaware’s existing and future unsubordinated indebtedness, and senior in right of payment to all of Nabors Delaware’s existing and future senior subordinated and subordinated indebtedness. Our guarantee of the notes is unsecured and an unsubordinated obligation and ranks equal in right of payments to all of our unsecured and unsubordinated indebtedness from time to time outstanding. In the event of a change of control triggering event, as defined in the indenture, the holders of the notes may require Nabors Delaware to purchase all or a portion of the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any. The notes are redeemable in whole or in part at any time at the option of Nabors Delaware at a redemption price, plus accrued and unpaid interest, as specified in the indenture. Nabors Delaware used a portion of the proceeds to prepay the $162.5 million portion due in 2018 under the term loan facility and all amounts outstanding at the time under the revolving credit facility, which matures in 2020. Any remaining proceeds not used for such purposes were allocated for general corporate purposes, including to repay amounts outstanding under the commercial paper program and to repurchase or repay other indebtedness. Commercial Paper Program In April 2013, Nabors Delaware established a commercial paper program. This program, as amended, currently allows for the issuance from time to time of up to an aggregate amount of $2.25 billion in commercial paper with a maturity of no more than 397 days. 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. The weighted average interest rate on borrowings during the year ended December 31, 2016 was 1.16%. As of December 31, 2016, we had no borrowings outstanding under this program. The commercial paper program can be used for short-term needs that arise and can be repaid with cash flows from operations. Revolving Credit Facility In July 2015, we entered into an amendment to our existing committed, unsecured revolving credit facility to increase the borrowing capacity to $2.2 billion, extend the maturity date to July 2020 and increase the size of the accordion option to $500.0 million. We subsequently exercised $50.0 million of the accordion option to bring the total availability to $2.25 billion. The weighted average interest rate on borrowings during the year ended December 31, 2016 was 1.86%. As of December 31, 2016, we had no borrowings outstanding under this facility. 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 December 31, 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 In February 2015, Nabors Industries, Inc., our wholly owned subsidiary, 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. 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. In September 2015, Nabors Industries, Inc. 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. 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. The weighted average interest rate on borrowings at December 31, 2016 was 1.76%. As of December 31, 2016, we had $162.5 million outstanding under this facility, which was repaid in January 2017. Short‑Term Borrowings We had 15 letter‑of‑credit facilities with various banks as of December 31, 2016. Availability and borrowings under our letter-of-credit facilities are as follows: December 31, 2016 (In thousands) Credit available $ Less: Letters of credit outstanding, inclusive of financial and performance guarantees Remaining availability $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 12 Income Taxes Income (loss) from continuing operations before income taxes consisted of the following: Year Ended December 31, United States and Other Jurisdictions 2016 2015 2014 (In thousands) United States $ $ $ Other jurisdictions Income (loss) from continuing operations before income taxes $ $ $ Income tax expense (benefit) from continuing operations consisted of the following: Year Ended December 31, 2016 2015 2014 (In thousands) Current: U.S. federal $ $ $ Outside the U.S. State $ $ $ Deferred: U.S. federal $ $ $ Outside the U.S. State $ $ $ Income tax expense (benefit) $ $ $ A reconciliation of our statutory tax rate to our worldwide effective tax rate consists of the following: Year Ended December 31, 2016 2015 2014 (In thousands) Income tax provision at statutory (Bermuda rate of 0%) $ — $ — $ — Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate Increase (decrease) in valuation allowance Tax reserves and interest State income taxes (benefit) Income tax expense (benefit) $ $ $ Effective tax rate (10.4)% The change in our worldwide effective tax rate from 2015 to 2016 was attributable to the effect of the geographic mix of pre-tax earnings (losses), including greater losses in high-tax jurisdictions. The tax effect of impairments and our share of the net loss of CJES also contributed to the change. The change in our worldwide effective tax rate from 2014 to 2015 is primarily attributable to the tax effect of the geographic mix of pre-tax earnings (losses), including greater losses in higher-tax jurisdictions. The tax effect of impairments, our share of the net loss of CJES and internal restructuring also contributed to the change. The components of our net deferred taxes consisted of the following: December 31, 2016 2015 (In thousands) Deferred tax assets: Net operating loss carryforwards $ $ Equity compensation Deferred revenue Tax credit and other attribute carryforwards Insurance loss reserves Accrued interest Other Subtotal Valuation allowance Deferred tax assets: $ $ Deferred tax liabilities: Depreciation and amortization for tax in excess of book expense $ $ Variable interest investments Other Deferred tax liability $ $ Net deferred tax assets (liabilities) $ $ Balance Sheet Summary: Net noncurrent deferred asset (1) $ $ Net noncurrent deferred liability Net deferred asset (liability) $ $ (1) This amount is included in other long-term assets. For U.S. federal income tax purposes, we have net operating loss (“NOL”) carryforwards of approximately $462.0 million that, if not utilized, will expire between 2019 and 2036. The NOL carryforwards for alternative minimum tax purposes are approximately $461.0 million. Additionally, we have NOL carryforwards in other jurisdictions of approximately $6.1 billion of which $383.0 million, if not utilized, will expire at various times from 2017 to 2036. We provide a valuation allowance against NOL carryforwards in various tax jurisdictions based on our consideration of existing temporary differences and expected future earning levels in those jurisdictions. We have recorded a deferred tax asset of approximately $1.67 billion as of December 31, 2016 relating to NOL carryforwards that have an indefinite life in several non‑U.S. jurisdictions. A valuation allowance of approximately $1.67 billion has been recognized because we believe it is more likely than not that substantially all of the deferred tax asset will not be realized. In addition, for state income tax purposes, we have NOL carryforwards of approximately $655.0 million that, if not utilized, will expire at various times from 2017 to 2036. The following is a reconciliation of our uncertain tax positions: Year Ended December 31, 2016 2015 2014 (In thousands) Balance as of January 1 $ $ $ Additions based on tax positions related to the current year — (4) Additions for tax positions of prior years — Reductions for tax positions for prior years (1) (2) Settlements (3) (5) Balance as of December 31 $ $ $ (1) Includes $7.2 million related to the expiration of statute of limitations in Australia, Algeria and Mexico, a $2.0 million reduction to Trinidad and $2.1 million related to foreign currency translation. (2) Includes a $6.0 million reduction in Canada, Trinidad and the U.S., $2.0 million related to foreign currency translation and $1.1 million due to the expiration of statute of limitations. (3) Includes $5.0 million related to settlements in Colombia, Ecuador, U.S. and Canada. (4) Includes $166.0 million related to internal restructuring. (5) Includes $7.6 million related to settlements in Algeria, Canada and Oman. If the reserves of $179.3 million are not realized, this would favorably impact the worldwide effective tax rate. As of December 31, 2016, 2015 and 2014, we had approximately $9.2 million, $7.4 million and $19.2 million, respectively, of interest and penalties related to uncertain tax positions. During 2016, 2015 and 2014, we accrued and recognized estimated interest and penalties related to uncertain tax positions of approximately $0.6 million, $1.4 million and $6.1 million, respectively. We include potential interest and penalties related to uncertain tax positions within our global operations in the income tax expense (benefit) line item in our consolidated statements of income (loss). It is reasonably possible that our existing liabilities related to our reserve for uncertain tax positions may increase or decrease in the next twelve months primarily due to the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities due to various uncertainties, such as the unresolved nature of various audits. We conduct business globally and, as a result, we file numerous income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including major jurisdictions such as Algeria, Canada, Mexico, Saudi Arabia and the United States. We are no longer subject to U.S. Federal income tax examinations for years before 2013 and non-U.S. income tax examinations for years before 2005. |
Common Shares
Common Shares | 12 Months Ended |
Dec. 31, 2016 | |
Common Shares. | |
Common Shares | Note 13 Common Shares During 2016 and 2015, with approval of the Board, we repurchased 0.3 million and 10.6 million, respectively, of our common shares in the open market for $1.7 million and $99.6 million, respectively, all of which are held by our subsidiaries, and which are accounted for as treasury shares. Our authorized share capital consists of 825,000,000 shares of which 800,000,000 are common shares, par value $0.001 per share, and 25,000,000 are preferred shares, par value $0.001 per share. No preferred shares were issued or outstanding as of December 31, 2016. The preferred shares are issuable in one or more classes or series, full, limited or no voting rights, designations, preferences, special rights, qualifications, limitations and restrictions, as may be determined by the Board. From time to time, treasury shares may be reissued. When shares are reissued, we use the weighted‑average‑cost method for determining cost. The difference between the cost of the shares and the issuance price is added to or deducted from our capital in excess of par value account. No shares have been reissued during 2016, 2015 or 2014. In 2016, 2015 and 2014, the Compensation Committee of our Board granted restricted share awards to some of our executive officers, other key employees, and independent directors. We awarded 3,919,696, 3,530,033 and 1,926,861 restricted shares at an average market price of $9.85, $10.09 and $19.53 to these individuals for 2016, 2015 and 2014, respectively. See Note 7—Share-Based Compensation for a summary of our restricted stock and option awards as of December 31, 2016. In 2015 and 2016, our Board declared quarterly cash dividends of $0.06 per outstanding common share, which was paid in March, June, September and December of 2015 and March, July and October of 2016. The aggregate amount paid in 2015 for dividends was $69.4 million. The aggregate amount paid in 2016 for dividends was $50.9 million. The fourth quarter 2016 dividend was paid on January 4, 2017 in the amount of $17.1 million. Shareholder Rights Plan On July 16, 2012, the Board declared the issuance of one preferred share purchase right (a “Right”) for each Common Share issued and outstanding on July 27, 2012 (the “Record Date”) to the shareholders of record on that date. On July 16, 2016, the Rights expired. |
Subsidiary Preferred Stock
Subsidiary Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Subsidiary Preferred Stock | |
Subsidiary Preferred Stock | Note 14 Subsidiary Preferred Stock During 2014, we paid $70.9 million to redeem the 75,000 shares of Series A Preferred Stock outstanding of our subsidiary and paid all dividends due on such shares. The result of the redemption was a loss of $1.688 million, representing the difference between the redemption amount and the carrying value of the subsidiary preferred stock. The loss resulted in a charge to retained earnings and a reduction to net income used to determine income available for common shareholders in the calculation of basic and diluted earnings per share in the period of the transaction. We also paid regular and accrued dividends of $750,000 and $108,750, respectively, and special dividends of $375,000. These dividends were treated as regular dividends, and as such were reflected in earnings in the consolidated statement of income (loss) for the year ended December 31, 2014. |
Pension, Postretirement and Pos
Pension, Postretirement and Postemployment Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Pension, Postretirement and Postemployment Benefits | |
Pension, Postretirement and Postemployment Benefits | Note 15 Pension, Postretirement and Postemployment Benefits Pension Plans In conjunction with our acquisition of Pool Energy Services Co. (“Pool”) in November 1999, we acquired the assets and liabilities of a defined benefit pension plan, the Pool Company Retirement Income Plan (the “Pool Pension Plan”). Benefits under the Pool Pension Plan are frozen and participants were fully vested in their accrued retirement benefit on December 31, 1998. The unfunded liability was $7.3 million and $8.4 million as of December 31, 2016 and 2015, respectively, and our net periodic benefit expense was $1.1 million, $1.0 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. During 2016, we launched a voluntary, one-time opportunity to buyout active employees and retirees who were eligible participants of the Pool Pension Plan. The total amount of payments to those who elected to take the buyout was approximately $10.3 million and such payments were made from pension plan assets. Additionally, we recognized charge related to the buyout of approximately $3.0 million, which is reflected in other, net in our consolidated statement of income (loss) for the year ended December 31, 2016. Due to the immateriality of the costs and liabilities of this plan, no further disclosure is presented. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related-Party Transactions | |
Related-Party Transactions | Note 16 Related‑Party Transactions Nabors and certain current and former key employees, including Mr. Petrello, entered into split‑dollar life insurance agreements, pursuant to which we pay a portion of the premiums under life insurance policies with respect to these individuals and, in some instances, members of their families. These agreements provide that we are reimbursed for the premium payments upon the occurrence of specified events, including the death of an insured individual. Any recovery of premiums paid by Nabors could be limited to the cash surrender value of the policies under certain circumstances. As such, the values of these policies are recorded at their respective cash surrender values in our consolidated balance sheets. We have made premium payments to date totaling $6.6 million related to these policies. The cash surrender value of these policies of approximately $6.0 million is included in other long‑term assets in our consolidated balance sheets as of December 31, 2016 and 2015. Under the Sarbanes‑Oxley Act of 2002, the payment of premiums by Nabors under the agreements could be deemed to be prohibited loans by us to these individuals. Consequently, we have paid no premiums related to our agreements with these individuals since the adoption of the Sarbanes‑Oxley Act. In the ordinary course of business, we enter into various rig leases, rig transportation and related oilfield services agreements with our unconsolidated affiliates at market prices. Historically, these transactions primarily related to our former equity method investment in Nabors Arabia. See Note 5 — Acquisitions. During 2015, we entered into a Transition Services Agreement with CJES, which concluded on December 31, 2015. Revenues from business transactions with these affiliated entities totaled $142.2 million and $227.5 million for 2015 and 2014, respectively. Expenses from business transactions with these affiliated entities totaled $0.1 million for 2016. Additionally, we had accounts receivable from these affiliated entities of $0.1 million as of December 31, 2016, and $24.1 million as of December 31, 2015, with the 2015 balance primarily related to CJES. We had accounts payable to these affiliated entities of $0.1 million as of December 31, 2016 and long‑term payables with these affiliated entities of $0.8 million as of December 31, 2016 and 2015, which are included in other long-term liabilities. In addition, Mr. Crane, one of our independent directors, is Chairman and Chief Executive Officer of Crane Capital Group Inc. (“CCG”), an investment company that indirectly owns a majority interest in several operating companies, some of which have provided services to us in the ordinary course of business, including international logistics and electricity. During 2016, 2015 and 2014, we made payments for these services of $23.5 million, $33.7 million and $89.1 million, respectively. We had accounts payable to these CCG‑related companies of $1.0 million and $1.1 million as of December 31, 2016 and 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 17 Commitments and Contingencies Commitments During 2016, we entered into an agreement with Saudi Aramco, to form a new joint venture to own, manage and operate onshore drilling rigs in The Kingdom of Saudi Arabia. The joint venture, which will be equally owned by Saudi Aramco and Nabors, is anticipated to be formed and commence operations in the second half of 2017. The joint venture will leverage our established business in Saudi Arabia to begin operations, with a focus on Saudi Arabia's existing and future onshore oil and gas fields. We will contribute $20 million in cash for formation of the joint venture and upon commencement of commercial operations, five drilling rigs and related assets. We have also agreed to contribute an additional five drilling rigs and related assets to the joint venture in January 2019. Additionally, the agreement requires us to backstop our share of the joint venture’s obligations to purchase the first 25 drilling rigs in the event that there is insufficient cash in the joint venture or third party financing available. Although we currently anticipate that the future rig purchase needs will be met by cash flows from the joint venture and/or third party financing, no assurance can be given that the joint venture will not require us to fund our backstop. Leases Nabors and its subsidiaries occupy various facilities and lease certain equipment under various lease agreements. The minimum rental commitments under non‑cancelable operating leases, with lease terms in excess of one year subsequent to December 31, 2016, were as follows: (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter $ The above amounts do not include property taxes, insurance or normal maintenance that the lessees are required to pay. Rental expense relating to operating leases with terms greater than 30 days amounted to $15.7 million, $24.6 million and $39.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. Minimum Volume Commitment We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing. Our pipeline contractual commitments as of December 31, 2016 were as follows: (In thousands) 2017 $ 2018 2019 2020 — 2021 — Thereafter (1) — $ (1) Final commitment period is for the period ending October 2029. See Note 4—Assets Held for Sale and Discontinued Operations for additional discussion. Employment Contracts We have entered into employment contracts with certain of our employees. Our minimum salary and bonus obligations under these contracts as of December 31, 2016 were as follows: (In thousands) 2017 $ 2018 2019 2020 — 2021 — Thereafter — $ Other Obligations. In addition to salary and bonus, Mr. Petrello receives group life insurance at an amount at least equal to three times his base salary, various split‑dollar life insurance policies, reimbursement of expenses, various perquisites and a personal umbrella insurance policy in the amount of $5 million. Premiums payable under the split‑dollar life insurance policies were suspended as a result of the adoption of the Sarbanes‑Oxley Act of 2002. Contingencies Income Tax Contingencies 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 year 2009. 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 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, 2015, 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. Political risk insurance is procured for select operations in South America, Africa, the Middle East and Asia. Losses are subject to a $0.25 million deductible, except for Colombia, which is subject to a $0.5 million deductible. There is no assurance that such coverage will adequately protect Nabors against liability from all potential consequences. As of December 31, 2016 and 2015, our self‑insurance accruals totaled $157.4 million and $165.9 million, respectively, and our related insurance recoveries/receivables were $29.0 million and $25.9 million, respectively. Litigation Nabors and its subsidiaries are defendants or otherwise involved in a number of lawsuits in the ordinary course of business. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can be estimated. We record our best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the lawsuits or claims. As additional information becomes available, we assess the potential liability related to our pending litigation and claims and revise our estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ from our estimates. For matters where an unfavorable outcome is reasonably possible and significant, we disclose the nature of the matter and a range of potential exposure, unless an estimate cannot be made at the time of disclosure. In the opinion of management and based on liability accruals provided, our ultimate exposure with respect to these pending lawsuits and claims is not expected to have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our results of operations for a particular reporting period. In 2009, the Court of Ouargla entered a judgment of approximately $13.0 million (at December 31, 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, concluding that portion of the case. We have filed a new action with 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 $25.6 million (at December 31, 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 $17.6 million in excess of amounts accrued. In March 2012, Nabors Global Holdings II Limited (“NGH2L”) signed an agreement 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 (“Ramshorn”) (“the ERG Agreement”). 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 and 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 on appeal, 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 ERG’s claims in the lawsuit are assets of the estate. The lawsuit was stayed, pending further court actions, including appeals of the jurisdictional decisions. On June 17, 2016, the Texas Supreme Court issued its 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 ERG Agreement and are without factual or legal merit. On December 28, 2016, the District Court granted Nabors’ Motion for Partial Summary Judgment to Enforce Exclusive Remedies Clause, holding that ERG’s potential recovery in the action may not exceed $4.5 million in accordance with the terms of the ERG Agreement. The plaintiffs have challenged this ruling by filing a motion for rehearing that is scheduled to be heard on March 6, 2017. Although we continue to vigorously defend the lawsuit, its ultimate outcome cannot be determined at this time. On July 30, 2014, we and Nabors Red Lion Limited (“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. A briefing was concluded, and no hearing date has been set. On March 24, 2015, we completed the Merger of our Completion & Production Services business with C&J Energy. In the Merger and related transactions, we acquired common shares in the combined entity, CJES, and entered into certain ancillary agreements with CJES, including a tax matters agreement, pursuant to which both parties agreed to indemnify each other following the completion of the Merger with respect to certain tax matters. On July 20, 2016, CJES and certain of its subsidiaries (collectively, the “debtors”) commenced voluntarily cases under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. On December 12, 2016, we entered into a mediated settlement agreement with various other parties in the CJES bankruptcy proceedings (the “Settlement Agreement”). Pursuant to the Settlement Agreement, we agreed to support the debtors' chapter 11 plan of reorganization in exchange for: (i) two allowed unsecured claims for which we will receive distributions of up to $4.85 million; (ii) an amendment to the tax matters agreement providing that CJES will likely pay up to $11.5 million of obligations for which we would have otherwise been responsible; (iii) cancellation of various other obligations we had to the debtors; (iv) our pro rata share of warrants to acquire 2% of the common equity in the reorganized debtors; and (v) a mutual release of claims. The bankruptcy court has approved the terms of the Settlement Agreement and confirmed the debtors' plan and, on January 6, 2017, CJES announced it had emerged from bankruptcy. 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 2017 2018 2019 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ — — — $ |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Losses) Per Share | |
Earnings (Losses) Per Share | Note 18 Earnings (Losses) Per Share ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable 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 non-forfeitable 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. Year Ended December 31, 2016 2015 2014 (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: loss on redemption of subsidiary preferred stock — — 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 Nabors’ 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: Year Ended December 31, 2016 2015 2014 (In thousands) 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 | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | Note 19 Supplemental Balance Sheet, Income Statement and Cash Flow Information Accrued liabilities include the following: 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 Dividends declared and payable — Current liability to acquisition of KVS — Other accrued liabilities $ $ Investment income (loss) includes the following: Year Ended December 31, 2016 2015 2014 (In thousands) Interest and dividend income $ $ $ Gains (losses) on investments, net $ $ $ Other, net includes the following: Year Ended December 31, 2016 2015 2014 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ $ $ Gain on Merger transaction — — Charges related to our CJES holdings (1) Litigation expenses Foreign currency transaction losses (gains) (Gain) loss on debt buyback — Other losses (gains) (2) $ $ $ (1) Includes legal and professional fees incurred primarily in connection with preserving our interests in CJES and transaction costs associated with the Merger. See Note 9 — Investments in Unconsolidated Affiliates. (2) Includes a $3.0 million charge related to the buyout of participants in our pension plan. See Note 15 — Pension, Postretirement and Postemployment Benefits. The changes in accumulated other comprehensive income (loss), by component, include 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 December 31, 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 December 31, 2016 $ $ $ $ $ (1) All amounts are net of tax. The line items that were reclassified to net income include the following: Line item in consolidated statement of income (loss) Year Ended December 31, 2016 2015 2014 (In thousands) Investment income (loss) $ — $ — $ Impairments and other charges — 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) $ $ $ Supplemental cash flow information includes the following: Year Ended December 31, 2016 2015 2014 (In thousands) Cash paid for income taxes $ $ $ Cash paid for interest, net of capitalized interest $ $ $ Net change in accounts payable related to capital expenditures $ $ $ Acquisitions of businesses: Fair value of assets acquired $ — $ $ Goodwill — Liabilities assumed — Gain on acquisition — — Future consideration (fair value) — — Payments on future consideration Cash paid for acquisitions of businesses Cash acquired in acquisitions of businesses — Cash paid for acquisitions of businesses, net $ $ $ |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Unaudited Quarterly Financial Information | |
Unaudited Quarterly Financial Information | Note 20 Unaudited Quarterly Financial Information Year Ended December 31, 2016 Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share amounts) Operating revenues $ $ $ $ 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 $ $ $ $ Earnings (losses) per share: (1) Basic from continuing operations $ $ $ $ Basic from discontinued operations — — Total Basic $ $ $ $ Diluted from continuing operations $ $ $ $ Diluted from discontinued operations — — Total Diluted $ $ $ $ Year Ended December 31, 2015 Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share amounts) Operating revenues $ $ $ $ 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 $ $ $ $ Earnings (losses) per share: (1) Basic from continuing operations $ $ $ $ Basic from discontinued operations — Total Basic $ $ $ $ Diluted from continuing operations $ $ $ $ Diluted from discontinued operations Total Diluted $ $ $ $ (1) Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Segment Information | Note 21 Segment Information At December 31, 2016, we conducted our Drilling & Rig Services business through four reportable operating segments: U.S., Canada, International and Rig Services. As a result of the Merger, the operating segments within the Completion & Production Services business reflect operating information through the closing date of the Merger. Our earnings (losses) from our equity method investment in CJES, subsequent to the closing date, are presented within the earnings (losses) from unconsolidated affiliates line in our consolidated statement of income (loss). Accordingly, our financial results of operations for the year ended December 31, 2014 is not directly comparable with our financial results of operations for the years ended December 31, 2016 and 2015. The accounting policies of the segments are the same as those described in Note 2—Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. We evaluate the performance of our segments based on several criteria, including adjusted operating income (loss). The following table sets forth financial information with respect to our reportable operating segments: Year Ended December 31, 2016 2015 2014 (In thousands) Operating revenues: Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Other reconciling items (1) Total $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Adjusted operating income (loss): (2) Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Total segment adjusted operating income (loss) $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total segment adjusted operating income (loss) (2) $ $ $ Other reconciling items (3) Earnings (losses) from unconsolidated affiliates Investment income (loss) Interest expense Impairments and other charges Other, net Income (loss) from continuing operations before income taxes $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Depreciation and amortization Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Other reconciling items (3) Total $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Capital expenditures and acquisitions of businesses: Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services — Other reconciling items (3) Total $ $ $ Year Ended 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 Other reconciling items (3) Total $ $ (1) Represents the elimination of inter-segment transactions. (2) 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. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures. The following table sets forth financial information with respect to Nabors’ operations by geographic area based on the location of service provided: Year Ended December 31, 2016 2015 2014 (In thousands) Operating revenues U.S. $ $ $ Outside the U.S. $ $ $ Property, plant and equipment, net: U.S. $ $ $ Outside the U.S. $ $ $ Goodwill: U.S. $ $ $ Outside the U.S. $ $ $ One customer accounted for approximately 33% and 12% of our consolidated operating revenues during the years ended December 31, 2016 and 2015, respectively, and is included in our International drilling operating segment. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Information | |
Condensed Consolidating Financial Information | Note 22 Condensed Consolidating Financial Information Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware, its wholly-owned subsidiary. The following condensed consolidating financial information is included so that separate financial statements of Nabors Delaware is 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 December 31, 2016 and 2015, and statements of income (loss), statements of comprehensive income (loss) and the statements of cash flows for the years ended December 31, 2016, 2015 and 2014 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 December 31, 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 $ $ $ $ $ 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) Year Ended December 31, 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 — — Impairments and other charges — — 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 $ $ $ $ $ Year Ended December 31, 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 — Impairments and other charges — — — 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 $ $ $ $ $ Year Ended December 31, 2014 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 — — Impairments and other charges — — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Subsidiary preferred stock dividend — — — 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) Year Ended December 31, 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 Pension buyout 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) $ $ $ $ $ Year Ended December 31, 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) $ $ $ $ $ Year Ended December 31, 2014 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 Year Ended December 31, 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 acquisitions of businesses, net — — — 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 issuance of long-term debt — — — Debt issuance costs — — — 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 (payment for) commercial paper, net — — — Payments on term loan — — — Proceeds from (payments for) short-term borrowings — — — Proceeds from parent contributions — — Proceeds from issuance of intercompany debt — — — 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 $ $ $ $ — $ Year Ended December 31, 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 — — — Change in intercompany balances — — — Other — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Debt issuance costs — — — Proceeds from (payments for) issuance of common shares — — — Reduction in long-term debt — — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds (issuance) of intercompany debt — — Reduction in revolving credit facilities — — — Proceeds from term loan — — — Payments on term loan — — — Cash proceeds from noncontrolling interest — — — Repurchase of common shares — — — Proceeds from short-term borrowings — — — Paydown of intercompany debt — — — Payments on parent (Equity or N/P) — — — Other Changes — — — 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 $ $ $ $ — $ Year Ended December 31, 2014 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 — — — Proceeds from sale of unconsolidated affiliates — — — Cash paid for acquisition of businesses, net — — — Investment in unconsolidated affiliates — — — Capital expenditures — — — Proceeds from sales of assets and insurance claims — — — Changes in intercompany balances — — — Other — — — 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 — — — Redemption of subsidiary preferred shares — — — Treasury stock transactions, net — — — Cash dividends paid — — Proceeds (reductions) in commercial paper — — — Proceeds from revolving credit facilities — — Reduction in revolving credit facilities — — Proceeds from issuance of parent common shares — — — Proceeds (issuance) of intercompany debt — — — Paydown 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 $ $ $ $ — $ |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events | |
Subsequent Events | Note 23 Subsequent Events On February 17, 2017, our Board declared a cash dividend of $0.06 per common share, which will be paid on April 4, 2017 to shareholders of record at the close of business on March 14, 2017. On January 9, 2017, Nabors Delaware entered into a purchase agreement under which it agreed to sell $500 million aggregate principal amount of its 0.75% exchangeable senior notes due January 15, 2024. In addition, Nabors Delaware granted certain of the initial purchasers a 30-day option to purchase up to an additional $75 million in aggregate principal amount of the 0.75% exchangeable senior notes due January 15, 2024 on the same terms and conditions, solely to cover over-allotments. This option was exercised in full on January 10, 2017. The closing of the sale of the Exchangeable Notes occurred on January 13, 2017. The exchangeable notes are fully and unconditionally guaranteed by us. The net proceeds were used to prepay $162.5 million outstanding under the term loan facility, which matures in 2020, as well as to pay approximately $40.3 million for the cost of entering into the capped call transactions as described below. Any remaining net proceeds from the offering were allocated for general corporate purposes, including to repurchase or repay other indebtedness. The exchangeable notes are exchangeable, under certain conditions, at an initial exchange rate of 39.75 common shares of the Company per $1,000 principal amount of notes (equivalent to an initial exchange price of approximately $25.16 per common share). Upon any exchange, Nabors Delaware will settle its exchange obligation in cash, common shares of the Company, or a combination of cash and common shares, at our election. In connection with the exchangeable notes offering, we and Nabors Delaware entered into privately negotiated capped call transactions with one or more of the initial purchasers of the exchangeable notes and/or their respective affiliates (the “option counterparties”). The capped call transactions, in the aggregate, cover, subject to customary anti-dilution adjustments, the same number of our common shares that initially underlie the exchangeable notes. The capped call transactions are expected to reduce potential dilution to our common shares and/or offset potential cash payments Nabors Delaware is required to make in excess of the principal amount upon any exchange of the exchangeable notes. Such reduction and/or offset is subject to a cap representing a price per share of $31.45, an approximately 75.0% premium over our last reported sale price of $17.97 per common share on the NYSE on January 9, 2017. Subsequent to December 31, 2016 through the date of this annual report, we repurchased $69.2 million aggregate principal amount of our 6.15% senior notes due February 2018 for approximately $74.1 million in cash, reflecting principal, accrued and unpaid interest. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2016, 2015 and 2014 Charged to Balance at Balance at Costs and Charged to Beginning Other Other End of of Period Deductions Accounts Deductions Period (In thousands) 2016 Allowance for doubtful accounts $ $ Inventory reserve $ — $ Valuation allowance on deferred tax assets $ — — $ 2015 Allowance for doubtful accounts $ $ Inventory reserve $ — $ Valuation allowance on deferred tax assets $ — — $ 2014 Allowance for doubtful accounts $ $ Inventory reserve $ — $ Valuation allowance on deferred tax assets $ — — $ |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Nabors, as well as all majority owned and non‑majority owned subsidiaries required to be consolidated under GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Investments in operating entities where we have the ability to exert significant influence, but where we do not control operating and financial policies, are accounted for using the equity method. Our share of the net income (loss) of these entities is recorded as earnings (losses) from unconsolidated affiliates in our consolidated statements of income (loss). The investments in these entities are included in investment in unconsolidated affiliates in our consolidated balance sheets. 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 were 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. See Note 9—Investments in Unconsolidated Affiliates. |
Change in Presentation | Change in Presentation Certain amounts within our consolidated statements of income (loss) have been reclassified to conform to the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposits and various other short‑term investments with original maturities of three months or less. |
Investments | Investments Short‑term investments Short‑term investments consist primarily of equity securities. Securities classified as available‑for‑sale are stated at fair value. Unrealized holding gains and temporary losses for available‑for‑sale securities are excluded from earnings and, until realized, are presented in the statement of comprehensive income (loss). Unrealized holding losses are included in earnings during the period for which the loss is determined to be other‑than‑temporary. In computing realized gains and losses on the sale of equity securities, the specific‑identification method is used. In accordance with this method, the cost of the equity securities sold is determined using the specific cost of the security when originally purchased. |
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 costs methods and includes the cost of materials, labor and manufacturing overhead. Inventory, which is net of reserves of $26.5 million, included the following: December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $ |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including renewals and betterments, are stated at cost, while maintenance and repairs are expensed currently. Interest costs applicable to the construction of qualifying assets are capitalized as a component of the cost of such assets. We provide for the depreciation of our drilling and workover rigs using the units‑of‑production method. For each day a rig is operating, we depreciate it over an approximate 4,927‑day period, with the exception of our jackup rigs which are depreciated over an 8,030‑day period, after provision for salvage value. For each day a rig asset is not operating, it is depreciated over an assumed depreciable life of 20 years, with the exception of our jackup rigs, where a 30‑year depreciable life is used, after provision for salvage value. Depreciation on our buildings, well‑servicing rigs, oilfield hauling and mobile equipment, marine transportation and supply vessels, and other machinery and equipment is computed using the straight‑line method over the estimated useful life of the asset after provision for salvage value (buildings—10 to 30 years; well‑servicing rigs—3 to 15 years; marine transportation and supply vessels—10 to 25 years; oilfield hauling and mobile equipment and other machinery and equipment—3 to 10 years). Amortization of capitalized leases is included in depreciation and amortization expense. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are removed from the respective property, plant and equipment accounts and any gains or losses are included in our consolidated statements of income (loss). 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 the extent the carrying amount of the long-lived asset exceeds its estimated fair value. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. The determination of future cash flows requires the estimation of utilization, dayrates, operating margins, sustaining capital and remaining economic life. 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 significantly prolonged period of lower oil and natural gas prices could continue to adversely affect the demand for and prices of our services, which could result in future impairment charges. 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 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 may 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 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. The fair values calculated in these impairment tests were determined using discounted cash flow models involving assumptions based on our utilization of rigs or other oil and gas service equipment, revenues and earnings from affiliates, as well as direct costs, general and administrative costs, depreciation, applicable income taxes, capital expenditures and working capital requirements. Our discounted cash flow projections for each reporting unit were based on financial forecasts. The future cash flows were discounted to present value using discount rates determined to be appropriate for each reporting unit. Terminal values for each reporting unit were calculated using a Gordon Growth methodology with a long‑term growth rate of 3%. 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 compared the sum of our reporting units’ estimated fair value, which included the estimated fair value of non‑operating assets and liabilities, less debt, to our market capitalization and assessed 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. During the fourth quarter of 2016, we performed an updated analysis due to market conditions. We concluded that the fair values of our reporting units exceeded their carrying value, thus no impairment was recorded during 2016. Although we determined that there was no goodwill impairment, should current market conditions worsen or persist for an extended period of time, the timeline estimated to manufacture products and/or the viability of the products to come to market in the future could result in future impairment charges in our Rig Services segment related to 2TD. The change in the carrying amount of goodwill for our business lines for the years ended December 31, 2016 and 2015 was as follows: Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2014 Adjustments Impairments Adjustment 2015 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — (1) — — Rig Services (2) — Subtotal Drilling & Rig Services — Completion & Production Services Completion — — — — — Production — (3) — — Subtotal Completion & Production Services — — — Total $ $ $ $ $ Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2015 Adjustments Impairments Adjustment 2016 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — — — Rig Services — — Total $ $ — $ — $ $ (1) Represents the goodwill recorded in connection with our acquisition of Nabors Arabia. See Note 5—Acquisitions for additional discussion. (2) Represents the goodwill recorded in connection with our acquisition of 2TD. See Note 5 — Acquisitions for additional discussion. (3) Represents the goodwill associated with the Completion & Production Services business that was merged with CJES. See Note 9—Investments in unconsolidated affiliates for additional discussion. Goodwill for the consolidated company, totaling approximately $11.2 million, is expected to be deductible for tax purposes. |
Litigation and Insurance Reserves | Litigation and Insurance Reserves We estimate our reserves related to litigation and insurance based on the facts and circumstances specific to the litigation and insurance claims and our past experience with similar claims. We maintain actuarially determined accruals in our consolidated balance sheets to cover self‑insurance retentions. See Note 17—Commitments and Contingencies regarding self‑insurance accruals. We estimate the range of our liability related to pending litigation when we believe the amount and range of loss can reasonably 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. |
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 December 31, 2016 and 2015, our deferred revenues classified as other long-term liabilities were $321.0 million and $324.3 million, respectively. At December 31, 2016 and 2015, our deferred revenues classified as accrued liabilities were $255.6 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 December 31, 2016 and 2015, our deferred expenses classified as other current assets were $63.4 million and $79.6 million, respectively. At December 31, 2016 and 2015, our deferred expenses classified as other long-term assets were $69.5 million and $68.9 million, respectively. We recognize revenue for top drives and other capital equipment 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 or 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, 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, net. We recognize reimbursements received for out‑of‑pocket expenses incurred as revenues and account for out‑of‑pocket expenses as direct costs. |
Research and Engineering | Research and Engineering Research and engineering expenses are expensed as incurred and include costs associated with the research and development of new products and services and costs associated with sustaining engineering of existing products and services. As a result of our acquisition of 2TD during 2014, we recorded intangible assets related to in process research and development of $47.7 million. As these products are developed, we will transfer the balances to completed technology and begin amortizing the intangible assets over the estimated useful life. No transfers occurred during the years ended December 31, 2016, 2015 or 2014. We have made progress in the development of our rotary steerable drilling technology tools, including successful tests in 2015 and most recently in October of 2016. The tools are currently being modified to another phase of verification testing before shipping the tools to the U.S. for further field tests. |
Income Taxes | Income Taxes We are a Bermuda exempted company and are not subject to income taxes in Bermuda. We have provided for income taxes based on the tax laws and rates in effect in the countries where we operate and earn income. The income taxes in these jurisdictions vary substantially. Our worldwide effective tax rate for financial statement purposes will continue to fluctuate from year to year due to the change in the geographic mix of pre-tax earnings. We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long‑term liabilities. For U.S. and other jurisdictional income tax purposes, we have net operating loss carryforwards that we are required to assess quarterly for potential valuation allowances. We consider the sufficiency of existing temporary differences and expected future earnings levels in determining the amount, if any, of valuation allowance required against such carryforwards and against deferred tax assets. |
Foreign Currency Translation | Foreign Currency Translation For certain of our foreign subsidiaries, such as those in Canada, the local currency is the functional currency, and therefore translation gains or losses associated with foreign‑denominated monetary accounts are accumulated in a separate section of the consolidated statements of changes in equity. For our other international subsidiaries, the U.S. dollar is the functional currency, and therefore local currency transaction gains and losses, arising from remeasurement of payables and receivables denominated in local currency, are included in our consolidated statements of income (loss). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: · depreciation of property, plant and equipment; · impairment of long‑lived assets; · impairment of goodwill and intangible assets; · impairment of short-term and equity method investments; · income taxes; · litigation and self‑insurance reserves; and fair value of assets acquired and liabilities assumed. |
Recent Accounting Pronouncements | 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. During 2016, we established an implementation team and began a detailed analysis of our contracts in place during the retrospective period. We plan to have all revenue streams assessed and the impact of the new standard on the prior period quantified during 2017. As we are still evaluating certain aspects of our contract drilling revenues, we are unable to quantify the impact that the new revenue standard will have on our consolidated financial statements at this time. 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 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 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 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 will adopt this standard effective January 1, 2017 and the adoption will not have a material impact on our 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 consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes, which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. 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 consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash to provide guidance on the classification of restricted cash in the statement of cash flows. This guidance is effective for public companies for fiscal years beginning after beginning after December 15, 2017. Early application is permitted. The amendments in the ASU should be adopted on a retrospective basis. We are currently evaluating the impact this will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other, which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under this new standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognize an impairment charge, as necessary, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Inventory | December 31, 2016 2015 (In thousands) Raw materials $ $ Work-in-progress Finished goods $ $ |
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | The change in the carrying amount of goodwill for our business lines for the years ended December 31, 2016 and 2015 was as follows: Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2014 Adjustments Impairments Adjustment 2015 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — (1) — — Rig Services (2) — Subtotal Drilling & Rig Services — Completion & Production Services Completion — — — — — Production — (3) — — Subtotal Completion & Production Services — — — Total $ $ $ $ $ Acquisitions and Balance at Purchase Disposals Cumulative Balance at December 31, Price and Translation December 31, 2015 Adjustments Impairments Adjustment 2016 (In thousands) Drilling & Rig Services: U.S. $ $ — $ — $ — $ International — — — Rig Services — — Total $ $ — $ — $ $ (1) Represents the goodwill recorded in connection with our acquisition of Nabors Arabia. See Note 5—Acquisitions for additional discussion. (2) Represents the goodwill recorded in connection with our acquisition of 2TD. See Note 5 — Acquisitions for additional discussion. (3) Represents the goodwill associated with the Completion & Production Services business that was merged with CJES. See Note 9—Investments in unconsolidated affiliates for additional discussion. |
Impairments and Other Charges (
Impairments and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Impairments and Other Charges | |
Schedule of impairments and other charges | Year Ended December 31, 2016 2015 2014 (In thousands) Tangible Assets & Equipment: Provision for retirement of assets $ $ $ Impairment of long-lived assets Subtotal Goodwill & Intangible Assets: Goodwill impairments — — Intangible asset impairment — — Subtotal — — Other Charges: Other-than-temporary impairment Provision for International operations — — Total $ $ $ |
Schedule of retirement and impairment charges for tangible assets | Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Other — Total $ $ $ Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ — $ Canada — International Rig Services — Other — Total $ $ $ Provision for Tangible Asset Retirements Impairments Total Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services — Total $ $ $ |
Assets Held for Sale and Disc35
Assets Held for Sale and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Assets Held for Sale and Discontinued Operations | |
Schedule of condensed statements of income (loss) from discontinued operations | Year Ended December 31, 2016 2015 2014 (In thousands, except percentages) 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 $ $ $ Income (loss) from Rig Services discontinued operations: Income (loss) from discontinued operations $ — $ — $ — Less: Impairment charges or other (gains) and losses on sale of wholly owned assets $ — $ (3) $ — Less: Income tax expense (benefit) $ — $ $ — Income (loss) from Rig Services discontinued operations, net of tax $ — $ $ — Income (loss) from discontinued operations, net of tax $ $ $ Oil and Gas (1) Reflects operating revenues of our historical oil and gas operating segment. (2) Includes impairment charges of $15.4 million and $51.0 million in 2016 and 2015, respectively, due to the deterioration of economic conditions in the natural gas market in western Canada, partially offset by a gain related to our restructure of our future pipeline obligations. Rig Services (3) Reflects an impairment charge for a note receivable of $3.1 million remaining from the sale of one of our former Canada subsidiaries that provided logistics services. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions | |
Allocation of purchase price as of the acquisition date | Fair Value (In thousands) at Acquisition Assets: Cash $ Accounts receivable Other current assets Property, plant and equipment, net Intangible assets Goodwill Other long-term assets Total assets Liabilities: Accounts payable $ Accrued liabilities Intangible liability Deferred tax liability Other long-term liabilities Total liabilities Net assets acquired $ |
Schedule of unaudited supplemental pro forma results present consolidated information | Year Ended December 31, (In thousands, except per share amounts) 2015 2014 Operating revenues $ $ Income (loss) from continuing operations, net of tax Income (loss) from continuing operations per share - basic $ $ Income (loss) from continuing operations per share - diluted $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Fair value of financial instruments | As of December 31, 2016 2015 Effective Effective Interest Carrying Fair Interest Carrying Fair Rate Value Value Rate Value Value (In thousands, except rates) 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 % % 5.50% senior notes due January 2023 % — % — — 5.10% senior notes due September 2023 % % Term loan facility % % Revolving credit facility % — — % — — Commercial paper % — — % Other — % — % $ $ Less: Deferred financing costs $ $ |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based compensation disclosures | |
Stock option transactions under various stock-based employee compensation plans | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (In thousands, except exercise price) Options outstanding as of December 31, 2015 $ Granted Exercised Forfeited Options outstanding as of December 31, 2016 $ 3.35 years $ Options exercisable as of December 31, 2016 $ 3.30 years $ |
Unvested stock options | Weighted-Average Grant-Date Fair Unvested Stock Options Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2015 $ Granted Vested Forfeited — — Unvested as of December 31, 2016 $ |
Schedule of grant date fair value | Year Ended December 31, 2016 2015 2014 Weighted average fair value of options granted $ $ $ 6.76 Weighted average risk free interest rate 1.37% Dividend yield 1.21% Volatility (1) 51.01% Expected life (in years) 4.0 (1) Expected volatilities are based on implied volatilities from publicly traded options to purchase Nabors' common shares, historical volatility of Nabors' common shares and other factors. |
Restricted Stock Award | |
Share-based compensation disclosures | |
Unvested restricted stock | Weighted-Average Grant-Date Fair Restricted shares Outstanding Value (In thousands, except fair value) Unvested as of December 31, 2015 $ Granted Vested Forfeited Unvested as of December 31, 2016 $ |
Restricted Stock Based on Market Conditions | |
Share-based compensation disclosures | |
Schedule of grant date fair value | Year Ended December 31, 2016 2015 2014 Risk free interest rate Expected volatility Closing stock price at grant date $ $ $ Expected term (in years) |
Unvested restricted stock | Weighted-Average Grant-Date Fair Market based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2015 $ Granted Vested Forfeited Outstanding as of December 31, 2016 $ |
Restricted Stock Based on Performance Conditions | |
Share-based compensation disclosures | |
Unvested restricted stock | Weighted-Average Grant-Date Fair Performance based restricted shares Outstanding Value (In thousands, except fair value) Outstanding as of December 31, 2015 $ Granted Vested Outstanding as of December 31, 2016 $ |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment | |
Major Components of Property, Plant and Equipment | December 31, 2016 2015 (In thousands) Land $ $ Buildings Drilling, workover and well-servicing rigs, and related equipment Marine transportation and supply vessels — Oilfield hauling and mobile equipment Other machinery and equipment Oil and gas properties Construction-in-process (1) $ $ Less: accumulated depreciation and amortization $ $ (1) Relates primarily to amounts capitalized for new or substantially new drilling rigs and related equipment that were under construction and had not yet been placed in service as of December 31, 2016 or 2015. |
Investments in Unconsolidated40
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Unconsolidated Affiliates | |
Schedule of equity in earnings of unconsolidated affiliates | Years Ended December 31, 2016 2015 2014 (In thousands) Nabors' share of equity method earnings (losses) $ $ $ — |
Investments in unconsolidated affiliates | September 30, 2016 2015 (In thousands) Current assets $ $ Long-term assets $ $ Current liabilities $ $ Long-term liabilities $ $ Nine Months Ended Year Ended September 30, December 31, 2016 2015 2014 Gross revenues $ $ $ Gross margin $ $ $ Net income (loss) $ $ $ Nabors' share of equity method earnings (losses) $ $ $ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Long-term debt | As of 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 5.50% senior notes due January 2023 — 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. |
Maturity of primary debt | As of December 31, 2016, the maturities of our primary debt for each of the five years after 2016 and thereafter are as follows: Paid at Maturity (In thousands) 2017 $ — 2018 (1) 2019 (2) 2020 (3) 2021 (4) Thereafter (5) $ (1) Represents our 6.15% senior notes due February 2018. (2) Represents our 9.25% senior notes due January 2019. (3) Represents our 5.0% senior notes due September 2020 and borrowings outstanding under the term loan due September 2020. In January 2017, we issued $575 million in exchangeable notes. The net proceeds from this offering were used to prepay the remaining $162.5 million outstanding under our term loan facility. See Note 23 — Subsequent Events. (4) Represents our 4.625% senior notes due September 2021. (5) Represents our 5.50% senior notes due January 2023 and 5.10% senior notes due September 2023. |
Short-Term Borrowings | December 31, 2016 (In thousands) Credit available $ Less: Letters of credit outstanding, inclusive of financial and performance guarantees Remaining availability $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income (loss) from continuing operations before income taxes | Year Ended December 31, United States and Other Jurisdictions 2016 2015 2014 (In thousands) United States $ $ $ Other jurisdictions Income (loss) from continuing operations before income taxes $ $ $ |
Income tax expense (benefit) from continuing operations | Year Ended December 31, 2016 2015 2014 (In thousands) Current: U.S. federal $ $ $ Outside the U.S. State $ $ $ Deferred: U.S. federal $ $ $ Outside the U.S. State $ $ $ Income tax expense (benefit) $ $ $ |
Reconciliation of the differences between taxes on income (loss) before income taxes | Year Ended December 31, 2016 2015 2014 (In thousands) Income tax provision at statutory (Bermuda rate of 0%) $ — $ — $ — Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate Increase (decrease) in valuation allowance Tax reserves and interest State income taxes (benefit) Income tax expense (benefit) $ $ $ Effective tax rate (10.4)% |
Deferred tax assets and liabilities | December 31, 2016 2015 (In thousands) Deferred tax assets: Net operating loss carryforwards $ $ Equity compensation Deferred revenue Tax credit and other attribute carryforwards Insurance loss reserves Accrued interest Other Subtotal Valuation allowance Deferred tax assets: $ $ Deferred tax liabilities: Depreciation and amortization for tax in excess of book expense $ $ Variable interest investments Other Deferred tax liability $ $ Net deferred tax assets (liabilities) $ $ Balance Sheet Summary: Net noncurrent deferred asset (1) $ $ Net noncurrent deferred liability Net deferred asset (liability) $ $ (1) This amount is included in other long-term assets. |
Change in unrecognized tax benefits | Year Ended December 31, 2016 2015 2014 (In thousands) Balance as of January 1 $ $ $ Additions based on tax positions related to the current year — (4) Additions for tax positions of prior years — Reductions for tax positions for prior years (1) (2) Settlements (3) (5) Balance as of December 31 $ $ $ (1) Includes $7.2 million related to the expiration of statute of limitations in Australia, Algeria and Mexico, a $2.0 million reduction to Trinidad and $2.1 million related to foreign currency translation. (2) Includes a $6.0 million reduction in Canada, Trinidad and the U.S., $2.0 million related to foreign currency translation and $1.1 million due to the expiration of statute of limitations. (3) Includes $5.0 million related to settlements in Colombia, Ecuador, U.S. and Canada. (4) Includes $166.0 million related to internal restructuring. (5) Includes $7.6 million related to settlements in Algeria, Canada and Oman. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Minimum rental commitments under non cancellable operating leases | The minimum rental commitments under non‑cancelable operating leases, with lease terms in excess of one year subsequent to December 31, 2016, were as follows: (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter $ |
Schedule of pipeline contractual commitments | Our pipeline contractual commitments as of December 31, 2016 were as follows: (In thousands) 2017 $ 2018 2019 2020 — 2021 — Thereafter (1) — $ (1) Final commitment period is for the period ending October 2029. See Note 4—Assets Held for Sale and Discontinued Operations for additional discussion. |
Minimum salary and bonus obligations under employment contract | Our minimum salary and bonus obligations under these contracts as of December 31, 2016 were as follows: (In thousands) 2017 $ 2018 2019 2020 — 2021 — Thereafter — $ |
Summary of total maximum amount of financial guarantees issued | Maximum Amount 2017 2018 2019 Thereafter Total (In thousands) Financial standby letters of credit and other financial surety instruments $ — — — $ |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Losses) Per Share | |
Earnings (losses) per share computations | Year Ended December 31, 2016 2015 2014 (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: loss on redemption of subsidiary preferred stock — — 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 | Year Ended December 31, 2016 2015 2014 (In thousands) Potentially dilutive securities excluded as anti-dilutive |
Supplemental Balance Sheet, I45
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Accrued liabilities | 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 Dividends declared and payable — Current liability to acquisition of KVS — Other accrued liabilities $ $ |
Investment income (loss) | Year Ended December 31, 2016 2015 2014 (In thousands) Interest and dividend income $ $ $ Gains (losses) on investments, net $ $ $ |
Other expense (income) | Year Ended December 31, 2016 2015 2014 (In thousands) Losses (gains) on sales, disposals and involuntary conversions of long-lived assets $ $ $ Gain on Merger transaction — — Charges related to our CJES holdings (1) Litigation expenses Foreign currency transaction losses (gains) (Gain) loss on debt buyback — Other losses (gains) (2) $ $ $ (1) Includes legal and professional fees incurred primarily in connection with preserving our interests in CJES and transaction costs associated with the Merger. See Note 9 — Investments in Unconsolidated Affiliates. (2) Includes a $3.0 million charge related to the buyout of participants in our pension plan. See Note 15 — Pension, Postretirement and Postemployment Benefits. |
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 December 31, 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 December 31, 2016 $ $ $ $ $ (1) All amounts are net of tax. |
Schedule of line items that were reclassified from net income | Line item in consolidated statement of income (loss) Year Ended December 31, 2016 2015 2014 (In thousands) Investment income (loss) $ — $ — $ Impairments and other charges — 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) $ $ $ |
Supplemental cash flow information | Year Ended December 31, 2016 2015 2014 (In thousands) Cash paid for income taxes $ $ $ Cash paid for interest, net of capitalized interest $ $ $ Net change in accounts payable related to capital expenditures $ $ $ Acquisitions of businesses: Fair value of assets acquired $ — $ $ Goodwill — Liabilities assumed — Gain on acquisition — — Future consideration (fair value) — — Payments on future consideration Cash paid for acquisitions of businesses Cash acquired in acquisitions of businesses — Cash paid for acquisitions of businesses, net $ $ $ |
Unaudited Quarterly Financial46
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Unaudited Quarterly Financial Information | |
Unaudited Quarterly Financial Information | Year Ended December 31, 2016 Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share amounts) Operating revenues $ $ $ $ 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 $ $ $ $ Earnings (losses) per share: (1) Basic from continuing operations $ $ $ $ Basic from discontinued operations — — Total Basic $ $ $ $ Diluted from continuing operations $ $ $ $ Diluted from discontinued operations — — Total Diluted $ $ $ $ Year Ended December 31, 2015 Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share amounts) Operating revenues $ $ $ $ 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 $ $ $ $ Earnings (losses) per share: (1) Basic from continuing operations $ $ $ $ Basic from discontinued operations — Total Basic $ $ $ $ Diluted from continuing operations $ $ $ $ Diluted from discontinued operations Total Diluted $ $ $ $ Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Financial information with respect to operating segments | Year Ended December 31, 2016 2015 2014 (In thousands) Operating revenues: Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Other reconciling items (1) Total $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Adjusted operating income (loss): (2) Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Total segment adjusted operating income (loss) $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: Total segment adjusted operating income (loss) (2) $ $ $ Other reconciling items (3) Earnings (losses) from unconsolidated affiliates Investment income (loss) Interest expense Impairments and other charges Other, net Income (loss) from continuing operations before income taxes $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Depreciation and amortization Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services: Completion Services — Production Services — Subtotal Completion & Production Services — Other reconciling items (3) Total $ $ $ Year Ended December 31, 2016 2015 2014 (In thousands) Capital expenditures and acquisitions of businesses: Drilling & Rig Services: U.S. $ $ $ Canada International Rig Services Subtotal Drilling & Rig Services Completion & Production Services — Other reconciling items (3) Total $ $ $ Year Ended 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 Other reconciling items (3) Total $ $ (1) Represents the elimination of inter-segment transactions. (2) 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. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table. (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures. |
Schedule of financial information with respect to Nabors' operations by geographic area | Year Ended December 31, 2016 2015 2014 (In thousands) Operating revenues U.S. $ $ $ Outside the U.S. $ $ $ Property, plant and equipment, net: U.S. $ $ $ Outside the U.S. $ $ $ Goodwill: U.S. $ $ $ Outside the U.S. $ $ $ |
Condensed Consolidating Finan48
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Information | |
Condensed Consolidating Balance Sheets | December 31, 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 $ $ $ $ $ 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) | Year Ended December 31, 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 — — Impairments and other charges — — 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 $ $ $ $ $ Year Ended December 31, 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 — Impairments and other charges — — — 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 $ $ $ $ $ Year Ended December 31, 2014 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 — — Impairments and other charges — — — Other, net Intercompany interest expense — — Total costs and other deductions Income (loss) from continuing operations before income taxes Income tax expense (benefit) — — Subsidiary preferred stock dividend — — — 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) | Year Ended December 31, 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 Pension buyout 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) $ $ $ $ $ Year Ended December 31, 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) $ $ $ $ $ Year Ended December 31, 2014 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 | Year Ended December 31, 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 acquisitions of businesses, net — — — 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 issuance of long-term debt — — — Debt issuance costs — — — 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 (payment for) commercial paper, net — — — Payments on term loan — — — Proceeds from (payments for) short-term borrowings — — — Proceeds from parent contributions — — Proceeds from issuance of intercompany debt — — — 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 $ $ $ $ — $ Year Ended December 31, 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 — — — Change in intercompany balances — — — Other — — — Net cash provided by (used for) investing activities — Cash flows from financing activities: Increase (decrease) in cash overdrafts — — — Debt issuance costs — — — Proceeds from (payments for) issuance of common shares — — — Reduction in long-term debt — — — Dividends to shareholders — — Proceeds from (payments for) commercial paper, net — — — Proceeds (issuance) of intercompany debt — — Reduction in revolving credit facilities — — — Proceeds from term loan — — — Payments on term loan — — — Cash proceeds from noncontrolling interest — — — Repurchase of common shares — — — Proceeds from short-term borrowings — — — Paydown of intercompany debt — — — Payments on parent (Equity or N/P) — — — Other Changes — — — 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 $ $ $ $ — $ Year Ended December 31, 2014 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 — — — Proceeds from sale of unconsolidated affiliates — — — Cash paid for acquisition of businesses, net — — — Investment in unconsolidated affiliates — — — Capital expenditures — — — Proceeds from sales of assets and insurance claims — — — Changes in intercompany balances — — — Other — — — 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 — — — Redemption of subsidiary preferred shares — — — Treasury stock transactions, net — — — Cash dividends paid — — Proceeds (reductions) in commercial paper — — — Proceeds from revolving credit facilities — — Reduction in revolving credit facilities — — Proceeds from issuance of parent common shares — — — Proceeds (issuance) of intercompany debt — — — Paydown 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 $ $ $ $ — $ |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory | ||
Raw materials | $ 84,431 | $ 105,217 |
Work-in-progress | 1,204 | 29,710 |
Finished goods | 17,960 | 18,897 |
Total inventory | 103,595 | $ 153,824 |
Inventory Valuation Reserves | $ 26,500 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Rig Assets Excluding Jackup Rigs | |
Property, Plant and Equipment | |
Operating rig asset depreciable life, operating days | 4927 days |
Non-operating rig asset depreciable life | 20 years |
Jack Up Rigs | |
Property, Plant and Equipment | |
Operating rig asset depreciable life, operating days | 8030 days |
Non-operating rig asset depreciable life | 30 years |
Buildings | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 30 years |
Well Servicing Rigs | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Well Servicing Rigs | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
Marine Transportation and Supply Vessels | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 10 years |
Marine Transportation and Supply Vessels | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 25 years |
Oilfield Hauling and Mobile Equipment and Other Machinery and Equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Oilfield Hauling and Mobile Equipment and Other Machinery and Equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 10 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | $ 166,659,000 | $ 173,928,000 | |
Acquisitions and purchase price adjustment | 86,502,000 | ||
Disposals and Impairments | (92,112,000) | ||
Cumulative Translation Adjustment | 258,000 | (1,659,000) | |
Goodwill - Ending Balance | $ 166,917,000 | 166,659,000 | $ 173,928,000 |
Goodwill | |||
Long-term growth rate used to calculate terminal values for each reporting unit (as a percent) | 3.00% | ||
Goodwill impairments | $ 0 | 356,605,000 | |
Discontinued Operation, additional disclosures | |||
Goodwill for the consolidated company, expected to be deductible for tax purposes | 11,200,000 | ||
Drilling and Rig Services | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 166,659,000 | 81,816,000 | |
Acquisitions and purchase price adjustment | 86,502,000 | ||
Cumulative Translation Adjustment | (1,659,000) | ||
Goodwill - Ending Balance | 166,659,000 | 81,816,000 | |
United States | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 50,149,000 | 50,149,000 | |
Goodwill - Ending Balance | 50,149,000 | 50,149,000 | 50,149,000 |
International | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 75,634,000 | ||
Acquisitions and purchase price adjustment | 75,634,000 | ||
Goodwill - Ending Balance | 75,634,000 | 75,634,000 | |
Rig Services | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 40,876,000 | 31,667,000 | |
Acquisitions and purchase price adjustment | 10,868,000 | ||
Cumulative Translation Adjustment | 258,000 | (1,659,000) | |
Goodwill - Ending Balance | $ 41,134,000 | 40,876,000 | 31,667,000 |
Goodwill | |||
Goodwill impairments | 21,600,000 | ||
Completion and Production Services | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 92,112,000 | ||
Disposals and Impairments | (92,112,000) | ||
Goodwill - Ending Balance | 92,112,000 | ||
Production Services | |||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | |||
Goodwill - Beginning Balance | 92,112,000 | ||
Disposals and Impairments | $ (92,112,000) | ||
Goodwill - Ending Balance | $ 92,112,000 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Research and Engineering (Details) - In Process Research and Development - Two T D Drilling - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets | |||
Intangible Assets | $ 47,700 | ||
Transfer of research and development expenses to completed technology | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other long-term liabilities | ||
Revenue Recognition | ||
Deferred revenue | $ 321 | $ 324.3 |
Accrued liabilities | ||
Revenue Recognition | ||
Deferred revenue | 255.6 | 340.5 |
Other current assets | ||
Revenue Recognition | ||
Deferred expenses | 63.4 | 79.6 |
Other long term assets | ||
Revenue Recognition | ||
Deferred expenses | $ 69.5 | $ 68.9 |
Impairments and Other Charges54
Impairments and Other Charges (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($)VEF / $ | Dec. 31, 2014USD ($)item | Sep. 30, 2015VEF / $ | |
Tangible Assets And Equipment | |||||
Provision for retirement of assets | $ 69,072,000 | $ 65,633,000 | $ 393,962,000 | ||
Impairment of long-lived assets | 216,355,000 | 74,464,000 | 217,627,000 | ||
Subtotal | 285,427,000 | 140,097,000 | 611,589,000 | ||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | 0 | 356,605,000 | |||
Intangible asset impairment | 29,942,000 | ||||
Subtotal | 386,547,000 | ||||
Other Charges: | |||||
Other-than-temporary impairment | $ 219,737,000 | 180,591,000 | 6,974,000 | ||
Number of remaining SCR rigs retired | item | 24 | ||||
Number of older rigs retired | item | 7 | ||||
Investment including other-than temporary impairment | $ (32,000) | 458,000 | 5,564,000 | ||
Provision for international operations | 48,279,000 | ||||
Total impairments and other charges | 505,164,000 | 368,967,000 | 1,005,110,000 | ||
Charge for remeasurement of net monetary assets | $ 10,000,000 | ||||
Official exchange rate of Bolivares per USD | VEF / $ | 6.3 | ||||
SIMADI exchange rate of Bolivares per USD | VEF / $ | 199 | ||||
Write-off of receivable | $ 15,400,000 | ||||
Provision for exit of non-core business line | 22,900,000 | ||||
Goodwill | 166,917,000 | 166,659,000 | 173,928,000 | ||
Principal amount repurchased | 152,700,000 | 27,500,000 | $ 40,600,000 | ||
Number of retired mechanical rigs | item | 25 | ||||
Payment amount | 10,300,000 | ||||
Settlement | $ 3,000,000 | ||||
9.25% senior notes due January 2019 | |||||
Other Charges: | |||||
Interest rate on senior notes due (as a percent) | 9.25% | ||||
C&J Energy Services, Ltd. | |||||
Other Charges: | |||||
Other-than-temporary impairment | $ 153,400,000 | $ 192,400,000 | 180,600,000 | ||
Affiliate Receivable | 23,800,000 | ||||
Total impairments and other charges | 216,200,000 | ||||
Venezuela | |||||
Other Charges: | |||||
Provision for assets and receivable impacted by degradation of overall country economy | 25,400,000 | ||||
North Slope of Alaska | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 22,400,000 | 15,100,000 | |||
United States | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | $ 25,365,000 | 47,247,000 | $ 271,141,000 | ||
Number of Competitive Assets | item | 47 | ||||
Impairment of long-lived assets | $ 163,182,000 | 137,000,000 | |||
Subtotal | 188,547,000 | 47,247,000 | 408,141,000 | ||
Other Charges: | |||||
Goodwill | 50,149,000 | 50,149,000 | 50,149,000 | ||
CANADA | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 19,573,000 | 7,547,000 | 24,211,000 | ||
Impairment of long-lived assets | 1,125,000 | 10,176,000 | |||
Subtotal | 20,698,000 | 7,547,000 | 34,387,000 | ||
International | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 23,275,000 | 10,839,000 | 56,472,000 | ||
Impairment of long-lived assets | 12,721,000 | 52,479,000 | 70,451,000 | ||
Subtotal | 35,996,000 | 63,318,000 | 126,923,000 | ||
Other Charges: | |||||
Goodwill | 75,634,000 | 75,634,000 | |||
Completion & Production Services and Rig Services | |||||
Tangible Assets And Equipment | |||||
Subtotal | 29,900,000 | ||||
Rig Services | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 859,000 | 42,138,000 | |||
Impairment of long-lived assets | 15,343,000 | 3,879,000 | |||
Subtotal | 16,202,000 | 3,879,000 | 42,138,000 | ||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | 21,600,000 | ||||
Other Charges: | |||||
Goodwill | 41,134,000 | 40,876,000 | 31,667,000 | ||
Other | |||||
Tangible Assets And Equipment | |||||
Impairment of long-lived assets | 23,984,000 | 18,106,000 | |||
Subtotal | $ 23,984,000 | $ 18,106,000 | |||
Completion and Production Services | |||||
Other Charges: | |||||
Goodwill | 92,112,000 | ||||
Gulf Of Mexico | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 54,400,000 | ||||
Business Acquisitions Acquiree Superior | Completion Services | |||||
Other Charges: | |||||
Goodwill | $ 335,000,000 |
Assets Held for Sale and Disc55
Assets Held for Sale and Discontinued Operations - Assets Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets held-for-sale | ||
Assets held for sale | $ 76,668 | $ 75,678 |
Oil and Gas | Assets Held-for-sale | ||
Assets held-for-sale | ||
Assets held for sale | $ 65,000 | $ 73,600 |
Assets Held for Sale and Disc56
Assets Held for Sale and Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued operations | |||||||||||
Undiscounted contractual commitments | $ 17,200 | $ 23,300 | $ 17,200 | $ 23,300 | |||||||
Liability related to discontinued operation | 12,500 | 16,100 | 12,500 | 16,100 | |||||||
Current liability to discontinued operations | 5,462 | 5,197 | 5,462 | 5,197 | |||||||
Recorded Supply Obligation | 5,500 | 5,200 | |||||||||
Operating revenues | |||||||||||
Operating revenues | 2,859 | 3,212 | $ 13,143 | ||||||||
Income (loss) from discontinued operations | |||||||||||
Income (loss) from discontinued operations, net of tax | (4,266) | $ (12,187) | $ (984) | $ (926) | (1,730) | $ (45,275) | $ 5,025 | $ (817) | (18,363) | (42,797) | 21 |
Long-term deferred income taxes | 9,495 | 29,326 | 9,495 | 29,326 | |||||||
Cash proceeds from sale of businesses in Alaska | 35,100 | ||||||||||
Receivables held for sale | 27,000 | ||||||||||
Proceed from sale of working interest | 600,000 | ||||||||||
Sale of business | |||||||||||
Gain on sale of oil and gas operations | 22,200 | ||||||||||
Other long-term assets | $ 595,783 | $ 452,305 | 595,783 | 452,305 | |||||||
Charges to reserve for amounts associated with retained interest in properties | 22,400 | ||||||||||
Assets Held-for-sale | |||||||||||
Income (loss) from discontinued operations | |||||||||||
Impairment charge | 15,400 | 51,000 | |||||||||
Impairment of note receivable | 3,100 | ||||||||||
Oil and Gas | |||||||||||
Income (loss) from discontinued operations | |||||||||||
Income (loss) from discontinued operations | (3,978) | (5,003) | (1,840) | ||||||||
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets and obligations | 19,445 | 49,890 | (1,313) | ||||||||
Less: Income tax expense (benefit) | (5,060) | (14,455) | (548) | ||||||||
Income (loss) from discontinued operations, net of tax | $ (18,363) | (40,438) | $ 21 | ||||||||
Rig Services | |||||||||||
Income (loss) from discontinued operations | |||||||||||
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets and obligations | 3,146 | ||||||||||
Less: Income tax expense (benefit) | (787) | ||||||||||
Income (loss) from discontinued operations, net of tax | $ (2,359) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | May 24, 2015 | Oct. 31, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquisitions | ||||||||||||||
Cash paid for acquisitions of businesses | $ 22,278 | $ 128,245 | $ 72,760 | |||||||||||
Operating revenues | $ 538,948 | $ 519,729 | $ 571,591 | $ 597,571 | $ 738,872 | $ 847,553 | $ 863,305 | $ 1,414,707 | $ 2,227,839 | 3,864,437 | 6,804,197 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |||||||||||||
Assets: | ||||||||||||||
Goodwill | 166,917 | 166,659 | $ 166,659 | $ 166,917 | 166,659 | 173,928 | ||||||||
Liabilities: | ||||||||||||||
Accrued liabilities | 22,278 | 22,278 | 22,278 | |||||||||||
Net income (loss) | (335,587) | $ (111,211) | $ (184,650) | $ (398,294) | $ (163,654) | $ (295,834) | $ (36,821) | $ 123,634 | (1,029,742) | (372,675) | (670,659) | |||
Joint Venture in Saudi Arabia | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Carrying value of equity method investment | $ 44,700 | |||||||||||||
Excess of fair value over carrying value of long-lived assets | 2,300 | |||||||||||||
Two T D Drilling | ||||||||||||||
Acquisitions | ||||||||||||||
Cash paid for acquisitions of businesses | $ 40,300 | |||||||||||||
Additional Contingent payments | $ 13,900 | $ 13,900 | ||||||||||||
Recorded intangible assets | 47,700 | |||||||||||||
Business Combination, Contingent Consideration, Asset, Total | 24,700 | |||||||||||||
Assets: | ||||||||||||||
Goodwill | $ 28,100 | |||||||||||||
Joint Venture in Saudi Arabia | ||||||||||||||
Acquisitions | ||||||||||||||
Cash paid for acquisitions of businesses | $ 106,000 | |||||||||||||
Remaining equity interest acquired (as a percent) | 49.00% | |||||||||||||
Operating revenues | 248,900 | |||||||||||||
Assets: | ||||||||||||||
Cash | $ 48,058 | |||||||||||||
Accounts receivable | 153,819 | |||||||||||||
Other current assets | 58,021 | |||||||||||||
Property, plant and equipment, net | 89,643 | |||||||||||||
Intangible assets | 28,784 | |||||||||||||
Goodwill | 75,634 | |||||||||||||
Other long-term assets | 7,709 | |||||||||||||
Total assets | 461,668 | |||||||||||||
Liabilities: | ||||||||||||||
Accounts payable | 206,599 | |||||||||||||
Accrued liabilities | 74,393 | |||||||||||||
Intangible liability | 13,472 | |||||||||||||
Deferred tax liability | 4,823 | |||||||||||||
Other long-term liabilities | 9,400 | |||||||||||||
Total liabilities | 308,687 | |||||||||||||
Net assets acquired | $ 152,981 | |||||||||||||
Operating revenues | 4,035,004 | 6,953,218 | ||||||||||||
Net income (loss) | $ 6,000 | |||||||||||||
Business Acquisition, Pro Forma Information | ||||||||||||||
Operating revenues | 4,035,004 | 6,953,218 | ||||||||||||
Income (loss) from continuing operations, net of tax | $ (316,633) | $ (668,127) | ||||||||||||
Income (loss) from continuing operations per share - basic | $ (1.09) | $ (2.27) | ||||||||||||
Income (loss) from continuing operations per share - diluted | $ (1.09) | $ (2.27) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
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 | $ 31,100 | $ 20,100 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value of Financial Instruments | ||
Carrying Value | $ 3,608,723 | |
Less: Deferred financing costs | (26,049) | $ (18,012) |
Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | 3,604,681 | 3,679,720 |
Less: Deferred financing costs | (26,049) | (18,012) |
Debt, net of financing costs | 3,578,632 | 3,661,708 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 3,739,129 | $ 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% | |
Interest Rate (as a percent) | 2.54% | |
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% | |
Interest Rate (as a percent) | 6.40% | 6.35% |
6.15% senior notes due February 2018 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 827,539 | $ 921,162 |
6.15% senior notes due February 2018 | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 865,300 | $ 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% | |
Interest Rate (as a percent) | 9.33% | 9.33% |
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 | $ 337,443 | $ 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% | |
Interest Rate (as a percent) | 5.21% | 5.24% |
5.00% senior notes due September 2020 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 669,540 | $ 683,839 |
5.00% senior notes due September 2020 | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 689,211 | $ 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% | |
Interest Rate (as a percent) | 4.75% | 4.74% |
4.625% senior notes due September 2021 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 694,868 | $ 698,628 |
4.625% senior notes due September 2021 | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 708,765 | $ 581,630 |
5.50% senior notes due January 2023 | ||
Fair Value of Financial Instruments | ||
Interest rate on senior notes due (as a percent) | 5.50% | |
Interest Rate (as a percent) | 5.85% | |
5.50% senior notes due January 2023 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 600,000 | |
5.50% senior notes due January 2023 | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 627,000 | |
5.10% senior notes due September 2023 | ||
Fair Value of Financial Instruments | ||
Interest rate on senior notes due (as a percent) | 5.10% | |
Interest Rate (as a percent) | 5.26% | 5.24% |
5.10% senior notes due September 2023 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 346,448 | $ 349,021 |
5.10% senior notes due September 2023 | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 348,613 | $ 280,907 |
Term Loan Facility | ||
Fair Value of Financial Instruments | ||
Interest Rate (as a percent) | 1.76% | 1.39% |
Term Loan Facility | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 162,500 | $ 325,000 |
Term Loan Facility | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 162,500 | $ 325,000 |
Revolving Credit Facility | ||
Fair Value of Financial Instruments | ||
Interest Rate (as a percent) | 1.86% | 1.48% |
Commercial paper | ||
Fair Value of Financial Instruments | ||
Interest Rate (as a percent) | 1.16% | 0.56% |
Commercial paper | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 8,000 | |
Commercial paper | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | 8,000 | |
Other | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 297 | 6,508 |
Other | Fair Value | ||
Fair Value of Financial Instruments | ||
Debt | $ 297 | $ 6,508 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | |
Share-based compensation disclosures | ||||
Share-based compensation expense | $ | $ 32,000 | $ 47,300 | $ 37,200 | |
Liability related to awards | $ | $ 116,775 | $ 120,204 | ||
Assumptions used to value grant date fair value | ||||
Risk free interest rate (as a percent) | 1.41% | 1.18% | 0.80% | |
Expected volatility (as a percent) | 52.00% | 50.00% | 40.00% | |
Closing stock price at grant date (in dollars per share) | $ / shares | $ 8.64 | $ 12.98 | $ 18.19 | |
Expected term (in years) | 3 years | 3 years | 2 years 11 months 19 days | |
Restricted Stock Award | ||||
Share-based compensation disclosures | ||||
Share-based compensation expense | $ | $ 31,300 | $ 37,000 | $ 35,000 | |
Share-based compensation expense related to the closing of the Merger | $ | $ 8,700 | |||
Number of types of performance share awards | item | 2 | |||
Option to purchase common stock available for grant | 6,800,000 | |||
Shares awarded during period | 1,885,000 | |||
Options | ||||
Forfeited (in shares) | (277,000) | |||
Weighted Average Exercise Price | ||||
Forfeited (in dollars per share) | $ / shares | $ 13.33 | |||
Restricted Stock Award | Employees and Director | ||||
Share-based compensation disclosures | ||||
Shares awarded during period | 1,885,440 | 2,546,801 | 1,169,000 | |
Aggregate value of restricted stock awards at date of grant | $ | $ 20,500 | $ 34,800 | $ 26,700 | |
Fair value of awards vested | $ | $ 13,500 | 18,300 | 28,000 | |
Restricted Stock Award | Maximum | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 5 years | |||
Restricted Stock Award | Maximum | Employees and Director | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 4 years | |||
Restricted Stock Based on Performance Conditions | ||||
Share-based compensation disclosures | ||||
Shares awarded during period | 1,285,000 | |||
Fair value of awards vested | $ | 13,900 | 5,900 | $ 8,000 | |
Restricted Stock Based on Performance Conditions | Executives | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 3 years | |||
Total fair value of option vested during the period | $ | $ 1,500 | $ 6,800 | $ 5,900 | |
Shares awarded during period | 1,284,829 | 438,307 | 362,311 | |
Liability related to awards | $ | $ 2,500 | $ 2,200 | ||
Restricted Stock Based on Market Conditions | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 3 years | |||
Shares awarded during period | 749,000 | 544,925 | 395,550 | |
Aggregate value of restricted stock awards at date of grant | $ | $ 4,200 | $ 4,700 | $ 4,500 | |
Stock options | Maximum | Employees and Director | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 5 years | |||
Stock options | Minimum | Employees and Director | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 3 years | |||
Key Officer Director and Managerial Employee Stock Options | ||||
Share-based compensation disclosures | ||||
Option to purchase common stock available for grant | 8,000,000 | 3,300,000 | ||
Exercise period | 10 years | |||
Total fair value of option vested during the period | $ | $ 1,900 | $ 1,900 | $ 2,000 | |
Assumptions used to value grant date fair value | ||||
Granted (in dollars per share) | $ / shares | $ 3.52 | $ 4.40 | $ 6.76 | |
Risk free interest rate (as a percent) | 1.09% | 1.29% | 1.37% | |
Dividend yield (as a percent) | 2.21% | 2.05% | 1.21% | |
Expected volatility (as a percent) | 45.69% | 50.01% | 51.01% | |
Expected term (in years) | 4 years | 4 years | 4 years | |
Options | ||||
Options outstanding at the beginning of the period (in shares) | 5,298,000 | |||
Granted (in shares) | 100,000 | 158,219 | ||
Exercised (in shares) | (102,000) | |||
Forfeited (in shares) | (79,000) | |||
Options outstanding at the end of the period (in shares) | 5,217,000 | 5,298,000 | ||
Options exercisable at the end of the period (in shares) | 5,161,000 | |||
Weighted Average Exercise Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 12.48 | |||
Granted (in dollars per share) | $ / shares | 11.28 | |||
Exercised (in dollars per share) | $ / shares | 9.53 | |||
Forfeited (in dollars per share) | $ / shares | 9.38 | |||
Options outstanding at the end of the period (in dollars per share) | $ / shares | 12.56 | $ 12.48 | ||
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 12.54 | |||
Weighted Average Remaining Contractual Term | ||||
Options outstanding at the end of the period | 3 years 4 months 6 days | |||
Options exercisable at the end of the period | 3 years 3 months 18 days | |||
Aggregate Intrinsic Value | ||||
Options outstanding at the end of the period (in dollars) | $ | $ 23,996 | |||
Options exercisable at the end of the period (in dollars) | $ | $ 23,896 | |||
Key Officer Director and Managerial Employee Stock Options | Employees Executives And Directors | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 4 years | 4 years | 4 years | |
Options | ||||
Granted (in shares) | 99,711 | 60,662 |
Share-Based Compensation - St61
Share-Based Compensation - Stock Options Unvested (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unvested Stock Options | |||
Unvested stock options | |||
Options outstanding at the beginning of the period (in shares) | 229,000 | ||
Granted (in shares) | 100,000 | ||
Vested (in shares) | (272,000) | ||
Options outstanding at the end of the period (in shares) | 57,000 | 229,000 | |
Weighted-Average Grant-Date Fair Value | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 8.16 | ||
Granted (in dollars per share) | 3.52 | ||
Vested (in dollars per share) | 7.06 | ||
Options outstanding at the end of the period (in dollars per share) | $ 5.34 | $ 8.16 | |
Total future compensation cost related to unvested options that are expected to vest | $ 0.2 | ||
Weighted Average Period for Cost recognition | 2 years | ||
Key Officer Director and Managerial Employee Stock Options | |||
Unvested stock options | |||
Granted (in shares) | 100,000 | 158,219 | |
Weighted-Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 3.52 | $ 4.40 | $ 6.76 |
Total intrinsic value of stock options exercised | $ 0.3 | $ 0.8 | $ 49.1 |
Total fair value of option vested during the period | $ 1.9 | $ 1.9 | $ 2 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Award | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 3,802,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,885,000 | ||
Vested (in shares) | (1,525,000) | ||
Outstanding at the end of the period (in shares) | 3,885,000 | 3,802,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 15.96 | ||
Granted (in dollars per share) | 10.86 | ||
Vested (in dollars per share) | 16.63 | ||
Outstanding at the end of the period (in dollars per share) | $ 13.41 | $ 15.96 | |
Total future compensation cost related to unvested awards that are expected to vest | $ 30.9 | ||
Weighted Average Period for Cost recognition | 2 years | ||
Restricted Stock Award | Employees and Director | |||
Unvested restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,885,440 | 2,546,801 | 1,169,000 |
Restricted Stock Based on Performance Conditions | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 526,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,285,000 | ||
Vested (in shares) | (216,000) | ||
Outstanding at the end of the period (in shares) | 1,595,000 | 526,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 17.41 | ||
Granted (in dollars per share) | 10.85 | ||
Vested (in dollars per share) | 18.27 | ||
Outstanding at the end of the period (in dollars per share) | $ 12.01 | $ 17.41 | |
Total future compensation cost related to unvested awards that are expected to vest | $ 4.6 | ||
Restricted Stock Based on Performance Conditions | Executives | |||
Unvested restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,284,829 | 438,307 | 362,311 |
Restricted Stock Based on Market Conditions | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 1,294,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 749,000 | 544,925 | 395,550 |
Vested (in shares) | (177,000) | ||
Forfeited (in shares) | (176,000) | ||
Outstanding at the end of the period (in shares) | 1,690,000 | 1,294,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 9.77 | ||
Granted (in dollars per share) | 5.58 | ||
Vested (in dollars per share) | 10.42 | ||
Forfeited (in dollars per share) | 10.42 | ||
Outstanding at the end of the period (in dollars per share) | $ 7.94 | $ 9.77 |
Property, Plant and Equipment63
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 13,556,735 | $ 13,336,457 | |
Less: accumulated depreciation and amortization | (7,289,152) | (6,308,655) | |
Property, Plant and Equipment, Net, Total | 6,267,583 | 7,027,802 | $ 8,599,125 |
Depreciation | 855,400 | 951,400 | 1,100 |
Repair and maintenance expense | 151,400 | 304,700 | 603,400 |
Interest costs capitalized | 6,700 | 20,400 | $ 24,400 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 46,319 | 19,757 | |
Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 115,502 | 126,285 | |
Drilling, Workover and Well Servicing Rigs and Related Equipment [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 12,638,749 | 12,243,811 | |
Marine Transportation and Supply Vessels | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 10,271 | ||
Oilfield Hauling and Mobile Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 274,137 | 286,838 | |
Other Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 181,069 | 175,687 | |
Construction in Progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 288,673 | 457,422 | |
Oil and Gas Properties | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 12,286 | $ 16,386 |
Investments in Unconsolidated64
Investments in Unconsolidated Affiliates (Details) $ in Thousands, shares in Millions | Dec. 12, 2016USD ($)item | Jul. 20, 2016USD ($) | Mar. 24, 2015USD ($)shares | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 30, 2016USD ($) | May 24, 2015 |
Investments in Unconsolidated Affiliates | ||||||||||
Cash consideration in merger | $ 650,050 | |||||||||
Nabors' share of equity method earnings (losses) | $ (221,914) | (75,081) | $ (6,301) | |||||||
Other-than-temporary impairment | 219,737 | 180,591 | 6,974 | |||||||
Summarized income statement (loss) information for investment in unconsolidated affiliates | ||||||||||
Nabors' share of equity method earnings (losses) | $ (221,914) | (75,081) | (6,301) | |||||||
C J Energy And Subsidiaries | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
Number Of Allowed Unsecured Claims | item | 2 | 2 | ||||||||
Maximum Claim Distribution To Be Received | $ 4,850 | $ 4,850 | ||||||||
Maximum Obligation Amount Relating to Tax Matters | $ 11,500 | $ 11,500 | ||||||||
Strike price | $ 1,550,000 | |||||||||
Prorate Share of warrant To Acquire Common Equity Percentage | 2.00% | 2.00% | ||||||||
Joint Venture in Saudi Arabia | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
Remaining equity interest acquired (as a percent) | 49.00% | |||||||||
Unconsolidated Affiliates | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
Nabors' share of equity method earnings (losses) | $ (221,933) | (81,260) | (6,301) | |||||||
Summarized income statement (loss) information for investment in unconsolidated affiliates | ||||||||||
Current assets | 383,750 | 496,826 | ||||||||
Long-term assets | 1,138,092 | 2,200,779 | ||||||||
Current liabilities | 147,699 | 325,434 | ||||||||
Long-term liabilities | 41,613 | 1,421,569 | ||||||||
Gross revenues | 727,320 | 1,748,889 | 605,179 | |||||||
Gross margin | 18,943 | 225,773 | 35,370 | |||||||
Net income (loss) | (825,921) | (872,542) | (642) | |||||||
Nabors' share of equity method earnings (losses) | (221,933) | (81,260) | $ (6,301) | |||||||
Joint Venture in Saudi Arabia | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
Percentage of outstanding and issued common shares held | 51.00% | |||||||||
C&J Energy Services, Ltd. | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
Cash consideration in merger | $ 693,500 | |||||||||
Cash proceeds from merger after working capital requirements | $ 650,000 | |||||||||
Common shares held in merged entity | shares | 62.5 | |||||||||
Percentage of outstanding and issued common shares held | 53.00% | |||||||||
Nabors' share of equity method earnings (losses) | (221,933) | (81,260) | ||||||||
Other-than-temporary impairment | $ 153,400 | 192,400 | 180,600 | |||||||
Estimated gross gain in merger | $ 102,200 | |||||||||
Transaction costs related to the merger | $ 49,600 | |||||||||
Post-closing adjustment for settlement of working capital requirements | 5,500 | |||||||||
Summarized income statement (loss) information for investment in unconsolidated affiliates | ||||||||||
Nabors' share of equity method earnings (losses) | $ (221,933) | $ (81,260) | ||||||||
C&J Energy Services, Ltd. | Other expense (income) | ||||||||||
Investments in Unconsolidated Affiliates | ||||||||||
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 | $ 9,100 |
Financial Instruments and Ris65
Financial Instruments and Risk Concentration (Details) | Dec. 31, 2016 |
2.35% senior notes due September 2016 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.35% |
5.10% senior notes due September 2023 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.10% |
6.15% senior notes due February 2018 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.15% |
9.25% senior notes due January 2019 | |
Debt Instrument, Interest Rate, Stated Percentage | 9.25% |
5.00% senior notes due September 2020 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
4.625% senior notes due September 2021 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.625% |
5.50% senior notes due January 2023 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term debt | ||
Other | $ 297 | $ 6,508 |
Long-term Debt | 3,604,681 | 3,679,720 |
Less: current portion | 297 | 6,508 |
Less: deferred financing costs | 26,049 | 18,012 |
Long-term debt | 3,578,335 | 3,655,200 |
Maturity of primary debt | ||
2,018 | 828,759 | |
2,019 | 303,489 | |
2,020 | 833,175 | |
2,021 | 696,000 | |
Thereafter | 947,300 | |
Total | $ 3,608,723 | |
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 | $ 827,539 | 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 | $ 669,540 | 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 | $ 694,868 | 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 | $ 346,448 | 349,021 |
Interest rate on senior notes due (as a percent) | 5.10% | |
5.50% senior notes due January 2023 | ||
Long-term debt | ||
Senior Notes | $ 600,000 | |
Interest rate on senior notes due (as a percent) | 5.50% | |
Term Loan Facility | ||
Long-term debt | ||
Senior Notes | $ 162,500 | 325,000 |
Revolving Credit Facility | ||
Long-term debt | ||
Revolving credit facility | 0 | |
Commercial paper | ||
Long-term debt | ||
Revolving credit facility | $ 0 | |
Long-term Debt | $ 8,000 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jan. 09, 2017 | Mar. 27, 2015 | Sep. 30, 2015 | Jul. 31, 2015 | Feb. 28, 2015 | Apr. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt | |||||||||
Principal amount redeemed | $ 152,700 | $ 27,500 | $ 40,600 | ||||||
Additional aggregate principal amount | 600,000 | ||||||||
Reduction in long-term debt | 493,612 | 27,478 | $ 46,800 | ||||||
Exercise of Accordian option | 50,000 | ||||||||
Payment of debt principal | $ 162,500 | $ 300,000 | |||||||
Guarantor Subsidiaries | |||||||||
Debt | |||||||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||||||
Redemption price of principal amount of debt instrument including accrued and unpaid interest (as a percent) | 101.00% | ||||||||
2.35% senior notes due September 2016 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 2.35% | ||||||||
5.10% senior notes due September 2023 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 5.10% | ||||||||
9.25% senior notes due January 2019 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 9.25% | ||||||||
6.15% senior notes due February 2018 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 6.15% | ||||||||
5.00% senior notes due September 2020 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 5.00% | ||||||||
4.625% senior notes due September 2021 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 4.625% | ||||||||
5.50% senior notes due January 2023 | |||||||||
Debt | |||||||||
Interest rate on senior notes due (as a percent) | 5.50% | ||||||||
Mandatory debt prepayment | $ 162,500 | ||||||||
5.50% senior notes due January 2023 | Guarantor Subsidiaries | |||||||||
Debt | |||||||||
Aggregate amount of senior notes | $ 600,000 | ||||||||
Interest rate on senior notes due (as a percent) | 5.50% | ||||||||
Redemption price of principal amount of debt instrument including accrued and unpaid interest (as a percent) | 101.00% | ||||||||
Revolving Credit Facility | |||||||||
Debt | |||||||||
Revolving credit facility | $ 0 | ||||||||
Maximum borrowing capacity | $ 2,200,000 | ||||||||
Increase in maximum borrowing capacity | $ 500,000 | ||||||||
Weighted average interest rate (as a percent) | 1.86% | ||||||||
Remaining availability under credit facility | $ 2,250,000 | ||||||||
Revolving Credit Facility | Minimum | |||||||||
Debt | |||||||||
Remaining period to maturity | 1 year | ||||||||
Exchangeable notes | Subsequent Event | |||||||||
Debt | |||||||||
Aggregate amount of senior notes | $ 575,000 | ||||||||
Term Loan Facility | Subsequent Event | |||||||||
Debt | |||||||||
Payment of debt principal | $ 162,500 | ||||||||
Three-year maturity term loan facility | |||||||||
Debt | |||||||||
Unsecured term loan facility | $ 300,000 | ||||||||
Unsecured debt maturity period | 3 years | ||||||||
Minimum net proceeds of disposed of assets, issued term debt, or issued equity, a requirement to prepay the loan | $ 70,000 | ||||||||
Payment of debt principal | $ 300,000 | ||||||||
Five-year term loan facility | |||||||||
Debt | |||||||||
Weighted average interest rate (as a percent) | 1.76% | ||||||||
Unsecured term loan facility | $ 325,000 | $ 162,500 | |||||||
Unsecured debt maturity period | 5 years | ||||||||
Mandatory debt prepayment | $ 162,500 | ||||||||
Commercial paper | |||||||||
Debt | |||||||||
Revolving credit facility | $ 0 | ||||||||
Weighted average interest rate (as a percent) | 1.16% | ||||||||
Commercial paper | Guarantor Subsidiaries | |||||||||
Debt | |||||||||
Maximum borrowing capacity | $ 2,250,000 | ||||||||
Commercial paper | Guarantor Subsidiaries | Maximum | |||||||||
Debt | |||||||||
Debt instrument, maturity term | 397 days |
Debt - Short Term Borrowings (D
Debt - Short Term Borrowings (Details) $ in Thousands | Dec. 31, 2016USD ($)item |
Debt | |
Number of Line of Credit Facility | item | 15 |
Letter of Credit | |
Debt | |
Credit available | $ 758,906 |
Less: Letters of credit outstanding, inclusive of financial and performance guarantees | (150,424) |
Remaining availability | $ 608,482 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States and Other Jurisdictions | |||
Income (loss) from continuing operations before income taxes | $ (1,198,075) | $ (427,535) | $ (604,615) |
United States | |||
United States and Other Jurisdictions | |||
Income before income taxes | (728,589) | (264,919) | (598,121) |
Outside the U.S | |||
United States and Other Jurisdictions | |||
Income before income taxes | $ (469,486) | $ (162,616) | $ (6,494) |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
State | $ 2,871 | $ 8,227 | $ 9,401 |
Current Income Tax Expense (Benefit), Total | 14,780 | 89,865 | 302,313 |
Deferred: | |||
State | (22,673) | (7,142) | (19,401) |
Deferred Income Tax Expense (Benefit), Total | (201,611) | (187,903) | (239,647) |
Total income tax expense (benefit) | (186,831) | (98,038) | 62,666 |
United States | |||
Current: | |||
Federal tax | (19,937) | 5,088 | 183,840 |
Deferred: | |||
Federal | (164,297) | (182,518) | (211,119) |
Outside the U.S | |||
Current: | |||
Federal tax | 31,846 | 76,550 | 109,072 |
Deferred: | |||
Federal | $ (14,641) | $ 1,757 | $ (9,127) |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the differences between taxes on income (loss) before income taxes | |||
Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate | $ (181,426) | $ (109,101) | $ (83,747) |
Increase (decrease) in valuation allowance | 17,865 | 22,655 | (9,934) |
Tax reserves and interest | (3,468) | (12,679) | 166,347 |
State income taxes (benefit) | (19,802) | 1,087 | (10,000) |
Total income tax expense (benefit) | $ (186,831) | $ (98,038) | $ 62,666 |
Effective tax rate (as a percent) | 15.60% | 22.90% | (10.40%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,826,656 | $ 1,510,354 |
Equity compensation | 36,972 | 37,633 |
Deferred revenue | 31,082 | 19,422 |
Tax credit and other attribute carryforwards | 91,680 | 119,471 |
Insurance loss reserve | 5,118 | 6,192 |
Accrued interest | 357,285 | 288,687 |
Other | 115,909 | 135,185 |
Subtotal | 2,464,702 | 2,116,944 |
Valuation allowance | (1,807,728) | (1,560,162) |
Deferred tax assets | 656,974 | 556,782 |
Deferred tax liabilities: | ||
Depreciation, amortization for tax in excess of book expense | 288,086 | 384,513 |
Variable interest investments | 641 | 718 |
Other | 11,154 | 16,009 |
Deferred tax liability | 299,881 | 401,240 |
Net deferred tax assets | 357,093 | 155,542 |
Balance Sheet Summary : | ||
Net noncurrent deferred asset | 366,588 | 184,868 |
Net current deferred liability | (9,495) | (29,326) |
Net noncurrent deferred liability | $ (9,495) | $ (29,326) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2016USD ($) |
Operating Loss Carryforwards | |
Deferred tax asset relating to NOL carryforwards that have an indefinite life in several non U.S. jurisdictions | $ 1,670 |
Recognized valuation allowance relating to NOL carryforwards | 1,670 |
Operating Loss Carryforwards | |
NOL carryforwards for state income tax purposes | 655 |
U.S. Federal | Between 2019 and 2035 | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 462 |
Non U.S. Federal Jurisdictions | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 6,100 |
Non U.S. Federal Jurisdictions | From 2016 to 2035 | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 383 |
State and Local Jurisdiction | |
Operating Loss Carryforwards | |
NOL carryforwards for alternative minimum tax purposes | $ 461 |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in unrecognized tax benefits | |||
Balance as of January 1 | $ 188,376 | $ 201,338 | $ 47,552 |
Additions based on tax positions related to the current year | 384 | 167,107 | |
Additions for tax positions of prior years | 3,873 | 1,744 | |
Reductions for tax positions of prior years | (11,547) | (9,234) | (6,843) |
Settlements | (1,447) | (4,112) | (8,222) |
Balance as of December 31 | 179,255 | 188,376 | 201,338 |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 2,100 | 2,000 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 1,100 | ||
Additions based on tax positions related to the current year due to internal restructuring | 166,000 | ||
Reductions for tax positions for prior years due to expiration of statutes | 1,100 | ||
Interest and penalties on unrecognized tax benefits | 9,200 | 7,400 | 19,200 |
Liability related to unrecognized tax benefit for accrued interest and penalties | 600 | 1,400 | 6,100 |
Canada, Trinidad and U.S | |||
Change in unrecognized tax benefits | |||
Settlements | (6,000) | ||
Colombia, Ecuador, Canada and Montana | |||
Change in unrecognized tax benefits | |||
Settlements | $ (5,000) | ||
Algeria Canada And Oman Settlements | |||
Change in unrecognized tax benefits | |||
Settlements | $ (7,600) | ||
Australia Algeria And Mexico | |||
Change in unrecognized tax benefits | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 7,200 | ||
Reductions for tax positions for prior years due to expiration of statutes | 7,200 | ||
Trinidad [Member] | |||
Change in unrecognized tax benefits | |||
Settlements | $ (2,000) |
Common Shares (Details)
Common Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common shares | ||||
Common stock dividend declared (in dollars per share) | $ 0.06 | $ 0.06 | ||
Cash dividends paid | $ 17,100 | $ 50,924 | $ 69,363 | $ 59,145 |
Shares repurchased | 300,000 | 10,600,000 | ||
Share price of shares purchased (in dollars per share) | $ 8.64 | $ 8.64 | $ 12.98 | $ 18.19 |
Total aggregate amount of shares purchased | $ 1,700 | $ 99,600 | ||
Capital Units, Authorized | 825,000,000 | 825,000,000 | ||
Common Stock, Shares Authorized | 800,000,000 | 800,000,000 | 800,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 | ||
Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred shares, shares issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Treasury shares reissued during the year | 0 | 0 | 0 | |
Officers and Directors | ||||
Common shares | ||||
Restricted stock awarded to executive officers, key employees & directors | 3,919,696 | 3,530,033 | 1,926,861 | |
Restricted shares awarded, average market price (in dollars per share) | $ 9.85 | $ 9.85 | $ 10.09 | $ 19.53 |
Common Shares - Shareholders Ri
Common Shares - Shareholders Rights Plan (Details) - $ / shares | Dec. 31, 2016 | Jul. 16, 2012 |
Shareholder Rights Plan | ||
Par value (in dollars per share) | $ 0.001 | |
Right To Purchase Series Junior Participating Preferred Shares1 | ||
Shareholder Rights Plan | ||
Number of purchase rights issued per Common Share | $ 1 |
Subsidiary Preferred Stock (Det
Subsidiary Preferred Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Subsidiary preferred stock | ||
Redemption of subsidiary preferred stock | $ 1,688 | |
Payments for Repurchase of Redeemable Preferred Stock | 70,875 | |
Series A Preferred Stock | Nabors Completion and Production Services | ||
Subsidiary preferred stock | ||
Redemption value of preferred stock | $ 70,900 | |
Subsidiary preferred stock, shares outstanding | 75,000 | |
Redemption of subsidiary preferred stock | $ 1,688 | |
Regular dividends paid | $ 750,000 | |
Accrued dividends paid | 108,750 | |
Special dividends paid | $ 375,000 |
Pension, Postretirement and P78
Pension, Postretirement and Postemployment Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of net periodic benefit cost (recognized in our consolidated statements of income): | |||
Payment amount | $ 10.3 | ||
Settlement | 3 | ||
Pension plan | Pool Pension Plan | |||
Funded status: | |||
unfunded liability | 7.3 | $ 8.4 | |
Components of net periodic benefit cost (recognized in our consolidated statements of income): | |||
Net periodic benefit cost | $ 1.1 | $ 1 | $ 0.3 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions | |||
Revenue from related party | $ 142,200 | $ 227,500 | |
Expenses from business transactions with unconsolidated affiliates | $ 100 | ||
Accounts receivable from affiliated entities | 100 | 24,100 | |
Accounts payable to affiliated entities | 100 | ||
Long-term payables with affiliated entities | 800 | 800 | |
James R Crane | Crane Capital Group Inc | |||
Related Party Transactions | |||
Accounts payable to affiliated entities | 1,000 | 1,100 | |
Amount paid to related party for services provided | 23,500 | 33,700 | $ 89,100 |
Management | |||
Related Party Transactions | |||
Premium payments to date related to life insurance policies | 6,600 | ||
Cash surrender value included in other long-term assets | $ 6,000 | $ 6,000 |
Commitments and Contingencies -
Commitments and Contingencies - Saudi Aramco (Details) - Saudi Aramco $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)item | |
Contribution | $ | $ 20 |
Number of drilling units and related assets contributed | 5 |
Number of additional drilling units and related assets contributed | 5 |
Number of drilling units to backstop entity share to purchase in the event of insufficient cash | 25 |
Commitments and Contingencies81
Commitments and Contingencies - Min (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum rental commitments under non cancellable operating leases | |||
2,017 | $ 7,068 | ||
2,018 | 4,068 | ||
2,019 | 1,615 | ||
2,020 | 1,122 | ||
2,021 | 573 | ||
Thereafter | 6,387 | ||
Total | $ 20,833 | ||
Minimum period of operating lease | 30 days | ||
Rental expense relating to operating leases | $ 15,700 | $ 24,600 | $ 39,200 |
Minimum volume commitment | |||
2,017 | 6,926 | ||
2,018 | 7,203 | ||
2,019 | 3,101 | ||
Total | 17,230 | ||
Minimum salary and bonus obligations | |||
2,017 | 4,229 | ||
2,018 | 1,200 | ||
2,019 | 300 | ||
Total | $ 5,729 |
Commitments and Contingencies82
Commitments and Contingencies - Employment Contracts (Details) - Petrello $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)item | |
Employment contracts | |
Employment agreement amount of group life insurance multiplier of base salary | item | 3 |
Insurance policy amount | $ | $ 5 |
Commitments and Contingencies83
Commitments and Contingencies - Self Insurance Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Self-Insurance disclosures | ||
Employer's liability claims subject to per-occurrence deductible | $ 3,000 | |
Workers automobile claims | 2,500 | |
General liability claims subject to per-occurrence deductible | 5,000 | |
Deductions in land rigs and for offshore rigs | 5,000 | |
Self-insurance accruals | 157,400 | $ 165,900 |
Self-insurance recoveries/receivables | 29,000 | $ 25,900 |
South America Africa the Middle East and Asia Excluding Colombia | ||
Self-Insurance disclosures | ||
Political risk insurance losses deductible | 250 | |
COLOMBIA | ||
Self-Insurance disclosures | ||
Political risk insurance deductible for foreign operation | 500 | |
Latin American tax authority | Minimum | ||
Income tax | ||
Aggregate remaining amounts assessed or expected to assessed range | 3,000 | |
Latin American tax authority | Maximum | ||
Income tax | ||
Aggregate remaining amounts assessed or expected to assessed range | $ 8,000 |
Commitments and Contingencies84
Commitments and Contingencies - Litigation (Details) $ in Thousands | Dec. 12, 2016USD ($)item | Mar. 31, 2011USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2009USD ($) | Dec. 31, 2006USD ($) | Mar. 19, 2012USD ($) |
Court of Ouargla Customs Infringement | ||||||
Commitments and Contingencies, Disclosure | ||||||
Litigation amount as per judgment | $ 3,600 | $ 13,000 | ||||
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 | $ 25,600 | |||||
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 | $ 17,600 | |||||
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 | |||||
Potential recovery | $ 4,500 | |||||
C J Energy And Subsidiaries | ||||||
Commitments and Contingencies, Disclosure | ||||||
Number of allowed unsecured claims | item | 2 | 2 | ||||
Maximum claim distribution to be received | $ 4,850 | $ 4,850 | ||||
Maximum obligation amount relating to tax matters | $ 11,500 | $ 11,500 | ||||
pro-rate share of warrant to acquire common equity percentage | 2.00% | 2.00% |
Commitments and Contingencies85
Commitments and Contingencies - Financial Guarantees (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Summary of total maximum amount of financial guarantees issued | |
2,016 | $ 276,412 |
Total | $ 276,412 |
Earnings (Losses) Per Share (De
Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) (numerator): | |||||||||||
Income (loss) from continuing operations, net of tax | $ (330,196) | $ (97,839) | $ (186,565) | $ (396,644) | $ (161,090) | $ (250,879) | $ (41,890) | $ 124,362 | $ (1,011,244) | $ (329,497) | $ (669,265) |
Less: net (income) loss attributable to noncontrolling interest | (1,125) | (1,185) | 2,899 | (724) | (834) | 320 | 44 | 89 | (135) | (381) | (1,415) |
Less: loss on redemption of subsidiary preferred stock | (1,688) | ||||||||||
Less: (earnings) losses allocated to unvested shareholders | 22,730 | 7,820 | 10,595 | ||||||||
Adjusted income (loss) from continuing operations, net of tax - basic | (988,649) | (322,058) | (661,773) | ||||||||
Income (loss) from discontinued operations, net of tax | $ (4,266) | $ (12,187) | $ (984) | $ (926) | $ (1,730) | $ (45,275) | $ 5,025 | $ (817) | $ (18,363) | $ (42,797) | $ 21 |
Weighted-average number of shares outstanding - basic | 276,475 | 282,982 | 290,694 | ||||||||
Earnings (losses) Per Share - Basic | |||||||||||
Basic from continuing operations (in dollars per share) | $ (1.17) | $ (0.35) | $ (0.65) | $ (1.41) | $ (0.57) | $ (0.86) | $ (0.14) | $ 0.43 | $ (3.58) | $ (1.14) | $ (2.28) |
Basic from discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) | (0.16) | 0.01 | (0.06) | (0.15) | ||||
Total Basic (in dollars per share) | $ (1.18) | $ (0.39) | $ (0.65) | $ (1.41) | $ (0.58) | $ (1.02) | $ (0.13) | $ 0.43 | $ (3.64) | $ (1.29) | $ (2.28) |
DILUTED EPS: | |||||||||||
Adjusted income (loss) from continuing operations, net of tax - basic | $ (988,649) | $ (322,058) | $ (661,773) | ||||||||
Adjusted income (loss) from continuing operations, net of tax - diluted | (988,649) | (322,058) | (661,773) | ||||||||
Income (loss) from discontinued operations, net of tax | $ (4,266) | $ (12,187) | $ (984) | $ (926) | $ (1,730) | $ (45,275) | $ 5,025 | $ (817) | $ (18,363) | $ (42,797) | $ 21 |
Weighted-average number of shares outstanding - basic | 276,475 | 282,982 | 290,694 | ||||||||
Weighted-average number of shares outstanding - diluted | 276,475 | 282,982 | 290,694 | ||||||||
Earnings (losses) per share: | |||||||||||
Diluted from continuing operations (in dollars per share) | $ (1.17) | $ (0.35) | $ (0.65) | $ (1.41) | $ (0.57) | $ (0.86) | $ (0.14) | $ 0.43 | $ (3.58) | $ (1.14) | $ (2.28) |
Diluted from discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) | (0.16) | 0.01 | (0.01) | (0.06) | (0.15) | |||
Total Diluted (in dollars per share) | $ (1.18) | $ (0.39) | $ (0.65) | $ (1.41) | $ (0.58) | $ (1.02) | $ (0.13) | $ 0.42 | $ (3.64) | $ (1.29) | $ (2.28) |
Earnings (Losses) Per Share - E
Earnings (Losses) Per Share - Exclusions from Diluted Earnings (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings (Losses) Per Share | |||
Potentially dilutive securities excluded as anti-dilutive | 5,372 | 9,459 | 12,950 |
Supplemental Balance Sheet, I88
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued liabilities | ||
Accrued compensation | $ 116,775 | $ 120,204 |
Deferred revenue | 255,626 | 340,472 |
Other taxes payable | 16,419 | 39,850 |
Workers' compensation liabilities | 18,255 | 37,459 |
Interest payable | 57,233 | 62,776 |
Litigation reserves | 24,896 | 27,097 |
Current liability to discontinued operations | 5,462 | 5,197 |
Dividends declared and payable | 17,039 | |
Current liability to acquisition of KVS | 22,278 | |
Other accrued liabilities | 31,543 | 31,280 |
Accrued liabilities | $ 543,248 | $ 686,613 |
Supplemental Balance Sheet, I89
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment income (loss) | |||
Interest and dividend income | $ 1,215 | $ 1,850 | $ 6,267 |
Gains (losses) on investments, net | (32) | 458 | 5,564 |
Investment income (loss) | $ 1,183 | $ 2,308 | $ 11,831 |
Supplemental Balance Sheet, I90
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Other Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other expense (income) | |||
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $ 14,830 | $ (2,293) | $ (8,830) |
Gain on Merger transaction | (96,719) | ||
Charges related to our CJES holdings | 12,879 | 49,645 | 22,313 |
Litigation expenses | 3,936 | 8,194 | 8,880 |
Foreign currency transaction losses (gains) | 5,669 | 392 | 1,019 |
(Gain) loss on debt buyback | (6,665) | 5,576 | |
Other losses (gains) | 6,860 | 1,609 | 2,428 |
Other expense (income) | 37,509 | $ (39,172) | $ 31,386 |
Charge related to the buyout in our pension | $ 3,000 |
Supplemental Balance Sheet, I91
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accumulated Other Comp Inc (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | $ 4,282,710 | ||
Other comprehensive income (loss), net of tax | 35,474 | $ (125,115) | $ (138,618) |
Balance at the end of the period | 3,247,025 | 4,282,710 | |
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 | 28,797 | (131,549) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,677 | 6,434 | |
Other comprehensive income (loss), net of tax | 35,474 | (125,115) | |
Balance at the end of the period | (12,119) | (47,593) | 77,522 |
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) | 374 | 374 | |
Other comprehensive income (loss), net of tax | 374 | 374 | |
Balance at the end of the period | (1,296) | (1,670) | (2,044) |
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 | 11,054 | (15,310) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,495 | ||
Other comprehensive income (loss), net of tax | 14,549 | (15,310) | |
Balance at the end of the period | 14,235 | (314) | 14,996 |
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) | 2,808 | 695 | |
Other comprehensive income (loss), net of tax | 2,808 | 695 | |
Balance at the end of the period | (3,760) | (6,568) | (7,263) |
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 | 17,743 | (116,239) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 5,365 | ||
Other comprehensive income (loss), net of tax | 17,743 | (110,874) | |
Balance at the end of the period | $ (21,298) | $ (39,041) | $ 71,833 |
Supplemental Balance Sheet, I92
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Reclass Accumulated Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | |||||||||||
Investment income (loss) | $ 1,183 | $ 2,308 | $ 11,831 | ||||||||
Impairment and other charges | 505,164 | 368,967 | 1,005,110 | ||||||||
Interest expense | 185,360 | 181,928 | 177,948 | ||||||||
General and administrative expenses | 227,639 | 324,328 | 500,036 | ||||||||
Other expense (income), net | 37,509 | (39,172) | 31,386 | ||||||||
Income (loss) from continuing operations before income taxes | (1,198,075) | (427,535) | (604,615) | ||||||||
Tax expense (benefit) | 186,831 | 98,038 | (62,666) | ||||||||
Net income (loss) | $ (334,462) | $ (110,026) | $ (187,549) | $ (397,570) | $ (162,820) | $ (296,154) | $ (36,865) | $ 123,545 | (1,029,607) | (372,294) | (669,244) |
Reclassification adjustment for (gains)/losses included in net income (loss) | |||||||||||
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | |||||||||||
Investment income (loss) | 4,635 | ||||||||||
Impairment and other charges | 3,495 | 6,972 | |||||||||
Interest expense | 613 | 613 | 614 | ||||||||
General and administrative expenses | 1,061 | 1,104 | 303 | ||||||||
Other expense (income), net | 3,059 | 5,365 | |||||||||
Income (loss) from continuing operations before income taxes | (8,228) | (7,082) | (3,254) | ||||||||
Tax expense (benefit) | 1,551 | 648 | (552) | ||||||||
Net income (loss) | $ (6,677) | $ (6,434) | $ (3,806) |
Supplemental Balance Sheet, I93
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Acquisitions of Businesses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental cash flow information | |||
Cash paid for income taxes | $ 34,479 | $ 66,910 | $ 166,660 |
Cash paid for interest, net of capitalized interest | 184,445 | 168,979 | 164,928 |
Net change in accounts payable related to capital expenditures | 22,920 | (59,565) | 28,011 |
Acquisitions of businesses: | |||
Fair value of assets acquired | 327,857 | 59,195 | |
Goodwill | 86,502 | 18,818 | |
Liabilities assumed | (306,084) | (2,796) | |
Gain on acquisition | (2,308) | ||
Future consideration (fair value) | (24,735) | ||
Payments on future consideration | 22,278 | 22,278 | 22,278 |
Cash paid for acquisitions of businesses | 22,278 | 128,245 | 72,760 |
Cash acquired in acquisitions of businesses | (48,058) | (226) | |
Cash paid for acquisition of businesses, net | $ (22,278) | $ (80,187) | $ (72,534) |
Unaudited Quarterly Financial94
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unaudited Quarterly Financial Information | |||||||||||
Operating revenues | $ 538,948 | $ 519,729 | $ 571,591 | $ 597,571 | $ 738,872 | $ 847,553 | $ 863,305 | $ 1,414,707 | $ 2,227,839 | $ 3,864,437 | $ 6,804,197 |
Income (loss) from continuing operations, net of tax | (330,196) | (97,839) | (186,565) | (396,644) | (161,090) | (250,879) | (41,890) | 124,362 | (1,011,244) | (329,497) | (669,265) |
Income (loss) from discontinued operations, net of tax | (4,266) | (12,187) | (984) | (926) | (1,730) | (45,275) | 5,025 | (817) | (18,363) | (42,797) | 21 |
Net income (loss) | (334,462) | (110,026) | (187,549) | (397,570) | (162,820) | (296,154) | (36,865) | 123,545 | (1,029,607) | (372,294) | (669,244) |
Less: Net (income) loss attributable to noncontrolling interest | (1,125) | (1,185) | 2,899 | (724) | (834) | 320 | 44 | 89 | (135) | (381) | (1,415) |
Net income (loss) attributable to Nabors | $ (335,587) | $ (111,211) | $ (184,650) | $ (398,294) | $ (163,654) | $ (295,834) | $ (36,821) | $ 123,634 | $ (1,029,742) | $ (372,675) | $ (670,659) |
Earnings (losses) per share: | |||||||||||
Basic from continuing operations (in dollars per share) | $ (1.17) | $ (0.35) | $ (0.65) | $ (1.41) | $ (0.57) | $ (0.86) | $ (0.14) | $ 0.43 | $ (3.58) | $ (1.14) | $ (2.28) |
Basic from discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) | (0.16) | 0.01 | (0.06) | (0.15) | ||||
Total Basic (in dollars per share) | (1.18) | (0.39) | (0.65) | (1.41) | (0.58) | (1.02) | (0.13) | 0.43 | (3.64) | (1.29) | (2.28) |
Diluted from continuing operations (in dollars per share) | (1.17) | (0.35) | (0.65) | (1.41) | (0.57) | (0.86) | (0.14) | 0.43 | (3.58) | (1.14) | (2.28) |
Diluted from discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) | (0.16) | 0.01 | (0.01) | (0.06) | (0.15) | |||
Total Diluted (in dollars per share) | $ (1.18) | $ (0.39) | $ (0.65) | $ (1.41) | $ (0.58) | $ (1.02) | $ (0.13) | $ 0.42 | $ (3.64) | $ (1.29) | $ (2.28) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | $ 538,948 | $ 519,729 | $ 571,591 | $ 597,571 | $ 738,872 | $ 847,553 | $ 863,305 | $ 1,414,707 | $ 2,227,839 | $ 3,864,437 | $ 6,804,197 |
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (118,335) | 316,841 | 797,864 | ||||||||
Earnings (losses) from unconsolidated affiliates | (221,914) | (75,081) | (6,301) | ||||||||
Investment income (loss) | 1,183 | 2,308 | 11,831 | ||||||||
Interest expense | 185,360 | 181,928 | 177,948 | ||||||||
Impairments and other charges | (505,164) | (368,967) | (1,005,110) | ||||||||
Other, net | 37,509 | (39,172) | 31,386 | ||||||||
Income (loss) from continuing operations before income taxes | (1,198,075) | (427,535) | (604,615) | ||||||||
Income tax expense (benefit) | (186,831) | (98,038) | 62,666 | ||||||||
Income (loss) from continuing operations, net of tax | (330,196) | (97,839) | (186,565) | (396,644) | (161,090) | (250,879) | (41,890) | 124,362 | (1,011,244) | (329,497) | (669,265) |
Income (loss) from discontinued operations, net of tax | (4,266) | (12,187) | (984) | (926) | (1,730) | (45,275) | 5,025 | (817) | (18,363) | (42,797) | 21 |
Net income (loss) | (334,462) | (110,026) | (187,549) | (397,570) | (162,820) | (296,154) | (36,865) | 123,545 | (1,029,607) | (372,294) | (669,244) |
Less: Net (income) loss attributable to noncontrolling interest | (1,125) | (1,185) | 2,899 | (724) | (834) | 320 | 44 | 89 | (135) | (381) | (1,415) |
Net income (loss) attributable to Nabors | (335,587) | $ (111,211) | $ (184,650) | $ (398,294) | (163,654) | $ (295,834) | $ (36,821) | $ 123,634 | (1,029,742) | (372,675) | (670,659) |
ASSETS | |||||||||||
Total assets | 8,187,015 | 9,537,840 | 8,187,015 | 9,537,840 | |||||||
Investment in unconsolidated affiliates | 893 | 415,177 | 893 | 415,177 | |||||||
Assets held for sale | 76,668 | 75,678 | 76,668 | 75,678 | |||||||
Equity in earnings (losses) from unconsolidated affiliates, net | (221,914) | (84,275) | (7,102) | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 871,631 | 970,459 | 1,145,100 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 414,379 | 923,236 | 1,923,779 | ||||||||
C&J Energy Services, Ltd. | |||||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Earnings (losses) from unconsolidated affiliates | (221,933) | (81,260) | |||||||||
Impairments and other charges | $ (216,200) | ||||||||||
Drilling and Rig Services | |||||||||||
Financial information with respect to reportable segments | |||||||||||
Number of operating segments | segment | 4 | ||||||||||
Operating segment | Reportable subsegments | |||||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | $ (118,335) | 316,841 | 797,864 | ||||||||
Operating segment | Drilling and Rig Services | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 2,330,144 | 3,647,942 | 4,812,327 | ||||||||
ASSETS | |||||||||||
Total assets | 7,461,879 | 8,564,102 | 7,461,879 | 8,564,102 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 875,032 | 917,361 | 922,396 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 380,941 | 840,673 | 1,781,092 | ||||||||
Operating segment | Drilling and Rig Services | Reportable subsegments | |||||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (118,335) | 375,643 | 719,990 | ||||||||
Operating segment | Drilling and Rig Services | Reportable subsegments | U.S. | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 554,072 | 1,256,989 | 2,159,968 | ||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (197,710) | 87,051 | 370,173 | ||||||||
ASSETS | |||||||||||
Total assets | 3,172,767 | 3,654,216 | 3,172,767 | 3,654,216 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 388,367 | 425,952 | 465,506 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 183,146 | 224,819 | 839,536 | ||||||||
Operating segment | Drilling and Rig Services | Reportable subsegments | Canada | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 51,472 | 137,494 | 335,192 | ||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (36,818) | (7,029) | 52,468 | ||||||||
ASSETS | |||||||||||
Total assets | 329,620 | 371,151 | 329,620 | 371,151 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 42,143 | 46,786 | 55,986 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 4,546 | 24,167 | 49,317 | ||||||||
Operating segment | Drilling and Rig Services | Reportable subsegments | International | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 1,508,890 | 1,862,393 | 1,624,259 | ||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | 164,677 | 308,262 | 243,975 | ||||||||
ASSETS | |||||||||||
Total assets | 3,600,057 | 4,108,416 | 3,600,057 | 4,108,416 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 411,372 | 411,004 | 367,345 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 169,640 | 578,896 | 788,748 | ||||||||
Operating segment | Drilling and Rig Services | Reportable subsegments | Rig Services | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 215,710 | 391,066 | 692,908 | ||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (48,484) | (12,641) | 53,374 | ||||||||
ASSETS | |||||||||||
Total assets | 359,435 | 430,319 | 359,435 | 430,319 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 33,150 | 33,619 | 33,559 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 23,609 | 12,791 | 103,491 | ||||||||
Operating segment | Completion and Production Services | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 366,372 | 2,251,437 | |||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 53,735 | 224,422 | |||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | 45,691 | 156,106 | |||||||||
Operating segment | Completion and Production Services | Reportable subsegments | |||||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (58,802) | 77,874 | |||||||||
Operating segment | Completion and Production Services | Reportable subsegments | Completion Services | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 207,860 | 1,217,899 | |||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (55,243) | (15,540) | |||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 27,133 | 109,917 | |||||||||
Operating segment | Completion and Production Services | Reportable subsegments | Production Services | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 158,512 | 1,033,538 | |||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (3,559) | 93,414 | |||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 26,602 | 114,505 | |||||||||
Other reconciling items (3) | |||||||||||
Operating revenues and Earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | (102,305) | (149,877) | (259,567) | ||||||||
Adjusted income (loss) derived from operating activities | |||||||||||
Adjusted income (loss) derived from operating activities | (130,976) | (159,880) | (193,565) | ||||||||
ASSETS | |||||||||||
Total assets | $ 724,243 | $ 558,561 | 724,243 | 558,561 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | (3,401) | (637) | (1,718) | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures and acquisitions | $ 33,438 | $ 36,872 | $ (13,419) |
Segment Information - By Geogra
Segment Information - By Geographic Area (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | |
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | $ 538,948 | $ 519,729 | $ 571,591 | $ 597,571 | $ 738,872 | $ 847,553 | $ 863,305 | $ 1,414,707 | $ 2,227,839 | $ 3,864,437 | $ 6,804,197 |
Property, Plant and Equipment, Net | 6,267,583 | 7,027,802 | 6,267,583 | 7,027,802 | 8,599,125 | ||||||
Goodwill | 166,917 | 166,659 | $ 166,917 | $ 166,659 | 173,928 | ||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | One customer | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Number of customers | customer | 1 | 1 | |||||||||
Percentage | 33.00% | 12.00% | |||||||||
United States | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | $ 642,835 | $ 1,823,906 | 4,701,122 | ||||||||
Property, Plant and Equipment, Net | 3,048,749 | 3,703,533 | 3,048,749 | 3,703,533 | 5,205,296 | ||||||
Goodwill | 54,199 | 54,198 | 54,199 | 54,198 | 146,310 | ||||||
Outside the U.S | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | 1,585,004 | 2,040,531 | 2,103,075 | ||||||||
Property, Plant and Equipment, Net | 3,218,834 | 3,324,269 | 3,218,834 | 3,324,269 | 3,393,829 | ||||||
Goodwill | $ 112,718 | $ 112,461 | $ 112,718 | $ 112,461 | $ 27,618 |
Condensed Consolidating Finan97
Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 264,093 | $ 254,530 | $ 501,149 | $ 389,915 |
Short-term investments | 31,109 | 20,059 | ||
Assets held for sale | 76,668 | 75,678 | ||
Accounts receivable, net | 508,355 | 784,671 | ||
Inventory | 103,595 | 153,824 | ||
Other current assets | 172,019 | 187,135 | ||
Total current assets | 1,155,839 | 1,475,897 | ||
Property, plant and equipment, net | 6,267,583 | 7,027,802 | 8,599,125 | |
Goodwill | 166,917 | 166,659 | 173,928 | |
Investment in unconsolidated affiliates | 893 | 415,177 | ||
Other long-term assets | 595,783 | 452,305 | ||
Total assets | 8,187,015 | 9,537,840 | ||
Current liabilities: | ||||
Current portion of debt | 297 | 6,508 | ||
Trade accounts payable | 264,578 | 271,984 | ||
Accrued liabilities | 543,248 | 686,613 | ||
Income taxes payable | 13,811 | 41,394 | ||
Total current liabilities | 821,934 | 1,006,499 | ||
Long-term debt | 3,578,335 | 3,655,200 | ||
Other long-term liabilities | 522,456 | 552,947 | ||
Deferred income taxes | 9,495 | 29,326 | ||
Total liabilities | 4,932,220 | 5,243,972 | ||
Shareholders' equity | 3,247,025 | 4,282,710 | ||
Noncontrolling interest | 7,770 | 11,158 | ||
Total equity | 3,254,795 | 4,293,868 | 4,918,789 | 5,981,177 |
Total liabilities and equity | 8,187,015 | 9,537,840 | ||
Reportable Legal Entities | Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 1,148 | 873 | 1,170 | 730 |
Other current assets | 50 | 50 | ||
Total current assets | 1,198 | 923 | ||
Intercompany receivables | 142,448 | 139,366 | ||
Investment in consolidated affiliates | 3,170,254 | 4,183,362 | ||
Total assets | 3,313,900 | 4,323,651 | ||
Current liabilities: | ||||
Trade accounts payable | 205 | 71 | ||
Accrued liabilities | 20,669 | 370 | ||
Total current liabilities | 20,874 | 441 | ||
Intercompany payable | 46,000 | 40,500 | ||
Total liabilities | 66,874 | 40,941 | ||
Shareholders' equity | 3,247,026 | 4,282,710 | ||
Total equity | 3,247,026 | 4,282,710 | ||
Total liabilities and equity | 3,313,900 | 4,323,651 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 10,177 | 10 | 7 | 7,029 |
Other current assets | 22,209 | 9,016 | ||
Total current assets | 32,386 | 9,026 | ||
Intercompany receivables | 11,000 | |||
Investment in consolidated affiliates | 4,830,572 | 4,973,327 | ||
Deferred tax assets | 443,049 | 366,818 | ||
Other long-term assets | 344 | 12,907 | ||
Total assets | 5,306,351 | 5,373,078 | ||
Current liabilities: | ||||
Trade accounts payable | 8 | 3 | ||
Accrued liabilities | 65,246 | 64,550 | ||
Total current liabilities | 65,254 | 64,553 | ||
Long-term debt | 3,796,550 | 3,723,138 | ||
Other long-term liabilities | 22,659 | 35,086 | ||
Intercompany payable | 1,439,390 | 1,370,176 | ||
Total liabilities | 5,323,853 | 5,192,953 | ||
Shareholders' equity | (17,502) | 180,125 | ||
Total equity | (17,502) | 180,125 | ||
Total liabilities and equity | 5,306,351 | 5,373,078 | ||
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ||||
Current assets: | ||||
Cash and cash equivalents | 252,768 | 253,647 | $ 499,972 | $ 382,156 |
Short-term investments | 31,109 | 20,059 | ||
Assets held for sale | 76,668 | 75,678 | ||
Accounts receivable, net | 508,355 | 784,671 | ||
Inventory | 103,595 | 153,824 | ||
Other current assets | 149,760 | 178,069 | ||
Total current assets | 1,122,255 | 1,465,948 | ||
Property, plant and equipment, net | 6,267,583 | 7,027,802 | ||
Goodwill | 166,917 | 166,659 | ||
Intercompany receivables | 1,342,942 | 1,260,310 | ||
Investment in consolidated affiliates | 1,083,948 | 1,284,225 | ||
Investment in unconsolidated affiliates | 893 | 415,177 | ||
Other long-term assets | 813,655 | 507,336 | ||
Total assets | 10,798,193 | 12,127,457 | ||
Current liabilities: | ||||
Current portion of debt | 297 | 6,508 | ||
Trade accounts payable | 264,365 | 271,910 | ||
Accrued liabilities | 457,333 | 621,693 | ||
Income taxes payable | 13,811 | 41,394 | ||
Total current liabilities | 735,806 | 941,505 | ||
Other long-term liabilities | 499,797 | 517,861 | ||
Deferred income taxes | 452,544 | 396,144 | ||
Total liabilities | 1,688,147 | 1,855,510 | ||
Shareholders' equity | 9,102,276 | 10,260,789 | ||
Noncontrolling interest | 7,770 | 11,158 | ||
Total equity | 9,110,046 | 10,271,947 | ||
Total liabilities and equity | 10,798,193 | 12,127,457 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (1,485,390) | (1,410,676) | ||
Investment in consolidated affiliates | (9,084,774) | (10,440,914) | ||
Deferred tax assets | (443,049) | (366,818) | ||
Other long-term assets | (218,216) | (67,938) | ||
Total assets | (11,231,429) | (12,286,346) | ||
Current liabilities: | ||||
Long-term debt | (218,215) | (67,938) | ||
Deferred income taxes | (443,049) | (366,818) | ||
Intercompany payable | (1,485,390) | (1,410,676) | ||
Total liabilities | (2,146,654) | (1,845,432) | ||
Shareholders' equity | (9,084,775) | (10,440,914) | ||
Total equity | (9,084,775) | (10,440,914) | ||
Total liabilities and equity | $ (11,231,429) | $ (12,286,346) |
Condensed Consolidating Finan98
Condensed Consolidating Financial Information - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues and other income: | |||||||||||
Operating revenues | $ 538,948 | $ 519,729 | $ 571,591 | $ 597,571 | $ 738,872 | $ 847,553 | $ 863,305 | $ 1,414,707 | $ 2,227,839 | $ 3,864,437 | $ 6,804,197 |
Earnings (losses) from unconsolidated affiliates | (221,914) | (75,081) | (6,301) | ||||||||
Investment income (loss) | 1,183 | 2,308 | 11,831 | ||||||||
Total revenues and other income | 2,007,108 | 3,791,664 | 6,809,727 | ||||||||
Costs and other deductions: | |||||||||||
Direct costs | 1,344,298 | 2,371,436 | 4,505,064 | ||||||||
General and administrative expenses | 227,639 | 324,328 | 500,036 | ||||||||
Research and Engineering | 33,582 | 41,253 | 49,698 | ||||||||
Depreciation and amortization | 871,631 | 970,459 | 1,145,100 | ||||||||
Interest expense | 185,360 | 181,928 | 177,948 | ||||||||
Impairments and other charges | 236,745 | 129,341 | 650,199 | ||||||||
Impairment and other charges | 505,164 | 368,967 | 1,005,110 | ||||||||
Other, net | 37,509 | (39,172) | 31,386 | ||||||||
Total costs and other deductions | 3,205,183 | 4,219,199 | 7,414,342 | ||||||||
Income (loss) from continuing operations before income taxes | (1,198,075) | (427,535) | (604,615) | ||||||||
Income tax expense (benefit) | (186,831) | (98,038) | 62,666 | ||||||||
Subsidiary preferred stock dividend | (1,984) | ||||||||||
Income (loss) from continuing operations, net of tax | (330,196) | (97,839) | (186,565) | (396,644) | (161,090) | (250,879) | (41,890) | 124,362 | (1,011,244) | (329,497) | (669,265) |
Income (loss) from discontinued operations, net of tax | (4,266) | (12,187) | (984) | (926) | (1,730) | (45,275) | 5,025 | (817) | (18,363) | (42,797) | 21 |
Net income (loss) | (334,462) | (110,026) | (187,549) | (397,570) | (162,820) | (296,154) | (36,865) | 123,545 | (1,029,607) | (372,294) | (669,244) |
Less: Net (income) loss attributable to noncontrolling interest | (1,125) | (1,185) | 2,899 | (724) | (834) | 320 | 44 | 89 | (135) | (381) | (1,415) |
Net income (loss) attributable to Nabors | $ (335,587) | $ (111,211) | $ (184,650) | $ (398,294) | $ (163,654) | $ (295,834) | $ (36,821) | $ 123,634 | (1,029,742) | (372,675) | (670,659) |
Consolidating Adjustments | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | 1,609,049 | 557,930 | 1,024,485 | ||||||||
Investment income (loss) | (11,923) | (9,942) | (6,303) | ||||||||
Intercompany interest income | (569) | (6,452) | (2,751) | ||||||||
Total revenues and other income | 1,596,557 | 541,536 | 1,015,431 | ||||||||
Costs and other deductions: | |||||||||||
General and administrative expenses | (856) | (560) | (587) | ||||||||
Other, net | 856 | 560 | 587 | ||||||||
Intercompany interest expense | (569) | (6,452) | (2,751) | ||||||||
Total costs and other deductions | (569) | (6,452) | (2,751) | ||||||||
Income (loss) from continuing operations before income taxes | 1,597,126 | 547,988 | 1,018,182 | ||||||||
Income (loss) from continuing operations, net of tax | 1,597,126 | 547,988 | 1,018,182 | ||||||||
Net income (loss) | 1,597,126 | 547,988 | 1,018,182 | ||||||||
Net income (loss) attributable to Nabors | 1,597,126 | 547,988 | 1,018,182 | ||||||||
Parent Company | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | (1,017,338) | (351,407) | (653,124) | ||||||||
Investment income (loss) | 2 | ||||||||||
Total revenues and other income | (1,017,336) | (351,407) | (653,124) | ||||||||
Costs and other deductions: | |||||||||||
General and administrative expenses | 10,559 | 8,768 | 9,531 | ||||||||
Interest expense | (1) | ||||||||||
Impairment and other charges | 1,366 | ||||||||||
Other, net | 482 | 12,469 | 7,668 | ||||||||
Intercompany interest expense | (1) | 32 | 336 | ||||||||
Total costs and other deductions | 12,406 | 21,268 | 17,535 | ||||||||
Income (loss) from continuing operations before income taxes | (1,029,742) | (372,675) | (670,659) | ||||||||
Income (loss) from continuing operations, net of tax | (1,029,742) | (372,675) | (670,659) | ||||||||
Net income (loss) | (1,029,742) | (372,675) | (670,659) | ||||||||
Net income (loss) attributable to Nabors | (1,029,742) | (372,675) | (670,659) | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | (231,960) | (41,826) | (120,996) | ||||||||
Investment income (loss) | 132 | 584 | 1,869 | ||||||||
Intercompany interest income | 569 | 6,452 | 2,415 | ||||||||
Total revenues and other income | (231,259) | (34,790) | (116,712) | ||||||||
Costs and other deductions: | |||||||||||
General and administrative expenses | 603 | 1 | 8,001 | ||||||||
Depreciation and amortization | 124 | 705 | 3,608 | ||||||||
Interest expense | 204,010 | 201,364 | 198,246 | ||||||||
Other, net | (14) | (223) | |||||||||
Total costs and other deductions | 204,723 | 202,070 | 209,632 | ||||||||
Income (loss) from continuing operations before income taxes | (435,982) | (236,860) | (326,344) | ||||||||
Income tax expense (benefit) | (76,231) | (72,163) | (75,979) | ||||||||
Income (loss) from continuing operations, net of tax | (359,751) | (164,697) | (250,365) | ||||||||
Net income (loss) | (359,751) | (164,697) | (250,365) | ||||||||
Net income (loss) attributable to Nabors | (359,751) | (164,697) | (250,365) | ||||||||
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Operating revenues | 2,227,839 | 3,864,437 | 6,804,197 | ||||||||
Earnings (losses) from unconsolidated affiliates | (221,914) | (75,081) | (6,301) | ||||||||
Earnings (losses) from consolidated affiliates | (359,751) | (164,697) | (250,365) | ||||||||
Investment income (loss) | 12,972 | 11,666 | 16,265 | ||||||||
Intercompany interest income | 336 | ||||||||||
Total revenues and other income | 1,659,146 | 3,636,325 | 6,564,132 | ||||||||
Costs and other deductions: | |||||||||||
Direct costs | 1,344,298 | 2,371,436 | 4,505,064 | ||||||||
General and administrative expenses | 217,333 | 316,119 | 483,091 | ||||||||
Research and Engineering | 33,582 | 41,253 | 49,698 | ||||||||
Depreciation and amortization | 871,507 | 969,754 | 1,141,492 | ||||||||
Interest expense | (18,650) | (19,435) | (20,298) | ||||||||
Impairment and other charges | 503,798 | 368,967 | 1,005,110 | ||||||||
Other, net | 36,185 | (52,201) | 23,354 | ||||||||
Intercompany interest expense | 570 | 6,420 | 2,415 | ||||||||
Total costs and other deductions | 2,988,623 | 4,002,313 | 7,189,926 | ||||||||
Income (loss) from continuing operations before income taxes | (1,329,477) | (365,988) | (625,794) | ||||||||
Income tax expense (benefit) | (110,600) | (25,875) | 138,645 | ||||||||
Subsidiary preferred stock dividend | (1,984) | ||||||||||
Income (loss) from continuing operations, net of tax | (1,218,877) | (340,113) | (766,423) | ||||||||
Income (loss) from discontinued operations, net of tax | (18,363) | (42,797) | 21 | ||||||||
Net income (loss) | (1,237,240) | (382,910) | (766,402) | ||||||||
Less: Net (income) loss attributable to noncontrolling interest | (135) | (381) | (1,415) | ||||||||
Net income (loss) attributable to Nabors | $ (1,237,375) | $ (383,291) | $ (767,817) |
Condensed Consolidating Finan99
Condensed Consolidating Financial Information - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | $ (335,587) | $ (111,211) | $ (184,650) | $ (398,294) | $ (163,654) | $ (295,834) | $ (36,821) | $ 123,634 | $ (1,029,742) | $ (372,675) | $ (670,659) |
Translation adjustment attributable to Nabors | |||||||||||
Unrealized loss on translation adjustment | 17,743 | (116,239) | (79,059) | ||||||||
Less: reclassification adjustment for realized loss on translation adjustment | 5,365 | ||||||||||
Translation adjustment attributable to Nabors | 17,743 | (110,874) | (79,059) | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | 11,054 | (15,310) | (59,932) | ||||||||
Unrealized gain (loss) on translation adjustment | 17,743 | (116,239) | (79,059) | ||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 3,495 | 2,337 | |||||||||
Unrealized gains (losses) on marketable securities | 14,549 | (15,310) | (57,595) | ||||||||
Pension liability amortization and adjustment | 1,061 | 1,104 | (5,050) | ||||||||
Pension Buy-out | 3,059 | ||||||||||
Unrealized gains (losses) and amortization on cash flow hedges | 613 | 613 | 612 | ||||||||
Other comprehensive income (loss), before tax | 37,025 | (124,467) | (141,092) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,551 | 648 | (2,474) | ||||||||
Other comprehensive income (loss), net of tax | 35,474 | (125,115) | (138,618) | ||||||||
Comprehensive income (loss) attributable to Nabors | (994,268) | (497,790) | (809,277) | ||||||||
Net income (loss) attributable to noncontrolling interest | $ 1,125 | $ 1,185 | $ (2,899) | $ 724 | $ 834 | $ (320) | $ (44) | $ (89) | 135 | 381 | 1,415 |
Translation adjustment attributable to noncontrolling interest | 251 | (1,461) | (1,017) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 386 | (1,080) | 398 | ||||||||
Comprehensive income (loss) | (993,882) | (498,870) | (808,879) | ||||||||
Reportable Legal Entities | Parent Company | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | (1,029,742) | (372,675) | (670,659) | ||||||||
Translation adjustment attributable to Nabors | |||||||||||
Unrealized loss on translation adjustment | 17,743 | (116,239) | (79,059) | ||||||||
Less: reclassification adjustment for realized loss on translation adjustment | 5,365 | ||||||||||
Translation adjustment attributable to Nabors | 17,743 | (110,874) | (79,059) | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | 11,054 | (15,310) | (59,932) | ||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 3,495 | 2,337 | |||||||||
Unrealized gains (losses) on marketable securities | 14,549 | (15,310) | (57,595) | ||||||||
Pension liability amortization and adjustment | 1,061 | 1,104 | (5,050) | ||||||||
Pension Buy-out | 3,059 | ||||||||||
Unrealized gains (losses) and amortization on cash flow hedges | 613 | 613 | 612 | ||||||||
Other comprehensive income (loss), before tax | 37,025 | (124,467) | (141,092) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,551 | 648 | (2,474) | ||||||||
Other comprehensive income (loss), net of tax | 35,474 | (125,115) | (138,618) | ||||||||
Comprehensive income (loss) attributable to Nabors | (994,268) | (497,790) | (809,277) | ||||||||
Comprehensive income (loss) | (994,268) | (497,790) | (809,277) | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | (359,751) | (164,697) | (250,365) | ||||||||
Translation adjustment attributable to Nabors | |||||||||||
Unrealized loss on translation adjustment | (21) | 67 | 1,583 | ||||||||
Translation adjustment attributable to Nabors | (21) | 67 | 1,583 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | 156 | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | (2,395) | ||||||||||
Unrealized gains (losses) on marketable securities | (2,239) | ||||||||||
Pension liability amortization and adjustment | 1,061 | 1,104 | (5,050) | ||||||||
Pension Buy-out | 3,059 | ||||||||||
Unrealized gains (losses) and amortization on cash flow hedges | 613 | 613 | 612 | ||||||||
Other comprehensive income (loss), before tax | 4,712 | 1,784 | (5,094) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,551 | 648 | (2,474) | ||||||||
Other comprehensive income (loss), net of tax | 3,161 | 1,136 | (2,620) | ||||||||
Comprehensive income (loss) attributable to Nabors | (356,590) | (163,561) | (252,985) | ||||||||
Comprehensive income (loss) | (356,590) | (163,561) | (252,985) | ||||||||
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | (1,237,375) | (383,291) | (767,817) | ||||||||
Translation adjustment attributable to Nabors | |||||||||||
Unrealized loss on translation adjustment | 17,743 | (116,172) | (79,174) | ||||||||
Less: reclassification adjustment for realized loss on translation adjustment | 5,365 | ||||||||||
Translation adjustment attributable to Nabors | 17,743 | (110,807) | (79,174) | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | 11,054 | (15,310) | (59,776) | ||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 3,495 | (58) | |||||||||
Unrealized gains (losses) on marketable securities | 14,549 | (15,310) | (59,834) | ||||||||
Pension liability amortization and adjustment | 2,122 | 2,208 | (10,100) | ||||||||
Pension Buy-out | 6,118 | ||||||||||
Unrealized gains (losses) and amortization on cash flow hedges | 613 | 613 | 612 | ||||||||
Other comprehensive income (loss), before tax | 41,145 | (123,296) | (148,496) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 3,102 | 1,056 | (5,187) | ||||||||
Other comprehensive income (loss), net of tax | 38,043 | (124,352) | (143,309) | ||||||||
Comprehensive income (loss) attributable to Nabors | (1,199,332) | (507,643) | (911,126) | ||||||||
Net income (loss) attributable to noncontrolling interest | 135 | 381 | 1,415 | ||||||||
Translation adjustment attributable to noncontrolling interest | 251 | (1,461) | (1,017) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 386 | (1,080) | 398 | ||||||||
Comprehensive income (loss) | (1,198,946) | (508,723) | (910,728) | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | 1,597,126 | 547,988 | 1,018,182 | ||||||||
Translation adjustment attributable to Nabors | |||||||||||
Unrealized loss on translation adjustment | (17,722) | 116,105 | 77,591 | ||||||||
Less: reclassification adjustment for realized loss on translation adjustment | (5,365) | ||||||||||
Translation adjustment attributable to Nabors | (17,722) | 110,740 | 77,591 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | (11,054) | 15,310 | 59,620 | ||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | (3,495) | 2,453 | |||||||||
Unrealized gains (losses) on marketable securities | (14,549) | 15,310 | 62,073 | ||||||||
Pension liability amortization and adjustment | (3,183) | (3,312) | 15,150 | ||||||||
Pension Buy-out | (9,177) | ||||||||||
Unrealized gains (losses) and amortization on cash flow hedges | (1,226) | (1,226) | (1,224) | ||||||||
Other comprehensive income (loss), before tax | (45,857) | 121,512 | 153,590 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (4,653) | (1,704) | 7,661 | ||||||||
Other comprehensive income (loss), net of tax | (41,204) | 123,216 | 145,929 | ||||||||
Comprehensive income (loss) attributable to Nabors | 1,555,922 | 671,204 | 1,164,111 | ||||||||
Comprehensive income (loss) | $ 1,555,922 | $ 671,204 | $ 1,164,111 |
Condensed Consolidating Fina100
Condensed Consolidating Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Consolidating Statements Of Cash Flows | ||||
Net cash provided by (used for) operating activities | $ 531,905 | $ 856,556 | $ 1,781,911 | |
Cash flows from investing activities: | ||||
Purchases of investments | (24) | (9) | (319) | |
Sales and maturities of investments | 739 | 961 | 23,992 | |
Proceeds from sales of unconsolidated affiliate | 750 | |||
Cash paid for acquisition of businesses, net of cash acquired | (22,278) | (80,187) | (72,534) | |
Investment in unconsolidated affiliates | (445) | (2,365) | ||
Capital expenditures | (395,455) | (867,106) | (1,821,315) | |
Proceeds from sales of assets and insurance claims | 34,831 | 68,206 | 156,761 | |
Other | 64 | 1,081 | (1,879) | |
Proceeds from merger transaction | 650,050 | |||
Net cash (used for) provided by investing activities | (382,123) | (227,449) | (1,716,909) | |
Cash flows from financing activities: | ||||
Increase (decrease) in cash overdrafts | 3 | 645 | (6,151) | |
Proceeds from issuance of long-term debt | 600,000 | |||
Debt issuance costs | (11,520) | (1,847) | ||
Proceeds from revolving credit facilities | 611,500 | 465,000 | ||
Reduction in revolving credit facilities | (611,500) | (450,000) | (230,932) | |
Proceeds from (payments for) issuance of common shares | 967 | 1,296 | 30,263 | |
Repurchase of common shares | (1,687) | (99,598) | (250,037) | |
Reduction of long-term debt | (493,612) | (27,478) | (46,800) | |
Dividends to shareholders | $ (17,100) | (50,924) | (69,363) | (59,145) |
Proceeds from (payments for) commercial paper, net | (8,000) | (525,119) | 203,275 | |
Proceeds from term Loan | 625,000 | |||
Payments on term loan | (162,500) | (300,000) | ||
Proceeds from (payments for) short-term borrowings | (6,211) | 318 | ||
Proceeds from parent contributions | 30,263 | |||
Other | (4,732) | (7,767) | (11,550) | |
Redemption of subsidiary Preferred Shares | (70,875) | |||
Cash proceeds from noncontrolling Interest | 3,972 | |||
Net cash (used for) provided by financing activities | (138,216) | (849,941) | 69,848 | |
Effect of exchange rate changes on cash and cash equivalents | (2,003) | (25,785) | (23,616) | |
Net increase (decrease) in cash and cash equivalents | 9,563 | (246,619) | 111,234 | |
Cash and cash equivalents, beginning of period | 254,530 | 501,149 | 389,915 | |
Cash and cash equivalents, end of period | 264,093 | 264,093 | 254,530 | 501,149 |
Reportable Legal Entities | Parent Company | ||||
Condensed Consolidating Statements Of Cash Flows | ||||
Net cash provided by (used for) operating activities | 58,406 | 39,478 | 26,943 | |
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 | 967 | 1,296 | 16,424 | |
Dividends to shareholders | (59,866) | (79,304) | (65,450) | |
Proceeds from parent contributions | 30,263 | |||
Proceeds from issuance of intercompany debt | 45,500 | |||
Paydown of intercompany debt | (40,000) | (27,000) | (55,000) | |
Other | (4,732) | (7,767) | (7,740) | |
Proceeds (issuance) of intercompany debt | 67,500 | 55,000 | ||
Net cash (used for) provided by financing activities | (58,131) | (45,275) | (26,503) | |
Net increase (decrease) in cash and cash equivalents | 275 | (297) | 440 | |
Cash and cash equivalents, beginning of period | 873 | 1,170 | 730 | |
Cash and cash equivalents, end of period | 1,148 | 1,148 | 873 | 1,170 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Condensed Consolidating Statements Of Cash Flows | ||||
Net cash provided by (used for) operating activities | (233,738) | (217,685) | (71,982) | |
Cash flows from investing activities: | ||||
Investment in unconsolidated affiliates | (86,459) | |||
Change in intercompany balances | 103,384 | 135,518 | (418,315) | |
Proceeds from merger transaction | 646,078 | |||
Net cash (used for) provided by investing activities | 16,925 | 781,596 | (418,315) | |
Cash flows from financing activities: | ||||
Proceeds from issuance of long-term debt | 600,000 | |||
Debt issuance costs | (11,520) | (1,847) | ||
Proceeds from revolving credit facilities | 610,000 | 450,000 | ||
Reduction in revolving credit facilities | (610,000) | (450,000) | (170,000) | |
Reduction of long-term debt | (350,000) | |||
Proceeds from (payments for) commercial paper, net | (8,000) | (525,119) | 203,275 | |
Proceeds from term Loan | 625,000 | |||
Payments on term loan | (162,500) | (300,000) | ||
Proceeds from parent contributions | (159,000) | |||
Proceeds (issuance) of intercompany debt | 88,058 | |||
Net cash (used for) provided by financing activities | 226,980 | (563,908) | 483,275 | |
Net increase (decrease) in cash and cash equivalents | 10,167 | 3 | (7,022) | |
Cash and cash equivalents, beginning of period | 10 | 7 | 7,029 | |
Cash and cash equivalents, end of period | 10,177 | 10,177 | 10 | 7 |
Reportable Legal Entities | Other Subsidiaries (Non-Guarantors) | ||||
Condensed Consolidating Statements Of Cash Flows | ||||
Net cash provided by (used for) operating activities | 757,660 | 1,066,026 | 1,816,831 | |
Cash flows from investing activities: | ||||
Purchases of investments | (24) | (9) | (319) | |
Sales and maturities of investments | 739 | 961 | 23,992 | |
Proceeds from sales of unconsolidated affiliate | 750 | |||
Cash paid for acquisition of businesses, net of cash acquired | (22,278) | (80,187) | (72,534) | |
Investment in unconsolidated affiliates | (159,000) | (445) | (2,365) | |
Capital expenditures | (395,455) | (867,106) | (1,821,315) | |
Proceeds from sales of assets and insurance claims | 34,831 | 68,206 | 156,761 | |
Change in intercompany balances | (103,384) | (135,518) | 418,315 | |
Other | 64 | 1,081 | (1,879) | |
Proceeds from merger transaction | (1,528) | |||
Net cash (used for) provided by investing activities | (644,507) | (1,014,545) | (1,298,594) | |
Cash flows from financing activities: | ||||
Increase (decrease) in cash overdrafts | 3 | 645 | (6,151) | |
Proceeds from revolving credit facilities | 1,500 | 15,000 | ||
Reduction in revolving credit facilities | (1,500) | (60,932) | ||
Repurchase of common shares | (1,687) | (99,598) | (250,037) | |
Reduction of long-term debt | (143,612) | (27,478) | ||
Proceeds from (payments for) short-term borrowings | (6,211) | 318 | ||
Proceeds from parent contributions | (86,458) | |||
Proceeds from issuance of intercompany debt | (45,500) | |||
Paydown of intercompany debt | 40,000 | 27,000 | 55,000 | |
Payments on parent (Equity or N/P) | (41,480) | (21,322) | ||
Other | (3,810) | |||
Proceeds (issuance) of intercompany debt | (155,558) | (55,000) | ||
Redemption of subsidiary Preferred Shares | (70,875) | |||
Cash proceeds from noncontrolling Interest | 3,972 | |||
Net cash (used for) provided by financing activities | (112,029) | (272,021) | (376,805) | |
Effect of exchange rate changes on cash and cash equivalents | (2,003) | (25,785) | (23,616) | |
Net increase (decrease) in cash and cash equivalents | (879) | (246,325) | 117,816 | |
Cash and cash equivalents, beginning of period | 253,647 | 499,972 | 382,156 | |
Cash and cash equivalents, end of period | $ 252,768 | 252,768 | 253,647 | 499,972 |
Consolidating Adjustments | ||||
Condensed Consolidating Statements Of Cash Flows | ||||
Net cash provided by (used for) operating activities | (50,423) | (31,263) | 10,119 | |
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: | ||||
Proceeds from (payments for) issuance of common shares | (16,424) | |||
Dividends to shareholders | 8,942 | 9,941 | 6,305 | |
Proceeds from parent contributions | 245,458 | |||
Payments on parent (Equity or N/P) | 41,480 | 21,322 | ||
Net cash (used for) provided by financing activities | $ (195,036) | $ 31,263 | $ (10,119) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 17, 2017 | Jan. 09, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent event | ||||||
Dividend declared (in dollars per share) | $ 0.06 | $ 0.06 | ||||
Additional aggregate principal amount | $ 600,000 | |||||
Prepayment of term loan facility | 162,500 | $ 300,000 | ||||
Debt Instrument, Repurchased Face Amount | $ 152,700 | $ 27,500 | $ 40,600 | |||
Subsequent Event | ||||||
Subsequent event | ||||||
Dividend declared (in dollars per share) | $ 0.06 | |||||
Exchange rate of common shares | 3.975 | |||||
Initial exchange price (In dollars per share) | $ 25.16 | |||||
Subsequent Event | Exchangeable notes | ||||||
Subsequent event | ||||||
Aggregate principal amount | $ 575,000 | |||||
Subsequent Event | Term Loan Facility | ||||||
Subsequent event | ||||||
Prepayment of term loan facility | 162,500 | |||||
Subsequent Event | Senior Notes. | ||||||
Subsequent event | ||||||
Debt Instrument, Repurchased Face Amount | $ 69,200 | |||||
Cash outflow to repurchase senior notes | $ 74,100 | |||||
Subsequent Event | Nabors Delaware (Issuer) | ||||||
Subsequent event | ||||||
Payment of capped call transaction cost | 40,300 | |||||
Subsequent Event | Nabors Delaware (Issuer) | Exchangeable notes | ||||||
Subsequent event | ||||||
Aggregate principal amount | $ 500,000 | |||||
Interest rate (as a percent) | 0.75% | |||||
Period for option to purchase additional notes | 30 days | |||||
Additional aggregate principal amount | $ 75,000 | |||||
Cap Price (in dollars per share) | $ 31.4500 | |||||
Premium percentage | 75.00% | |||||
Last reported sale price | $ 17.97 |
SCHEDULE II - VALUATION AND 102
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | $ 44,553 | $ 23,545 | $ 27,134 |
Charged to Costs and Expenses | 19,132 | 36,720 | (802) |
Charged to Other Accounts | (58) | (288) | (52) |
Deductions | (19,870) | (15,424) | (2,735) |
Balance at End of Period | 43,757 | 44,553 | 23,545 |
Inventory Valuation Reserve | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | 46,813 | 45,141 | 6,801 |
Charged to Costs and Expenses | 13,587 | 9,485 | 43,076 |
Deductions | (33,863) | (7,813) | (4,736) |
Balance at End of Period | 26,537 | 46,813 | 45,141 |
Valuation Allowance of Deferred Tax Assets | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | 1,560,162 | 1,537,507 | 1,547,441 |
Charged to Other Accounts | 247,566 | 22,655 | (9,934) |
Balance at End of Period | $ 1,807,728 | $ 1,560,162 | $ 1,537,507 |