v2.4.0.8
Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Information  
Segment Information

Note 23 Segment Information

        At December 31, 2013, we conducted our operations through two business lines:

  • •
    Drilling & Rig Services

    • This business line is comprised of our global drilling rig operations and drilling-related services, consisting of equipment manufacturing, instrumentation optimization software and directional drilling services.

    •
    Completion & Production Services

    • This business line is comprised of our operations involved in the completion, life-of-well maintenance and eventual plugging and abandonment of a well. These services include stimulation, coiled-tubing, cementing, wireline, workover, well-servicing and fluids management.

        The accounting policies of the segments are the same as those described in Note 3—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 income (loss) derived from operating activities.

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

 
   Year Ended December 31,  
 
   2013   2012   2011  
 
    
   Revised
   Revised
  
 
   (In thousands)
  

Operating revenues and Earnings (losses) from unconsolidated affiliates:(1)

                    

Drilling & Rig Services:

    
 		    
 		    
 		  

U.S. 

   $ 1,914,786   $ 2,276,808   $ 1,999,241  

Canada

     361,676     429,411     426,455  

International

     1,464,264     1,265,060     1,104,461  

Rig Services(2)

     516,004     688,310     626,169  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal drilling and rig services(3)

     4,256,730     4,659,589     4,156,326  

Completion & Production Services:

    
 		    
 		    
 		  

Completion Services

     1,074,713     1,462,767     1,237,306  

Production Services

     1,009,214     1,000,873     849,522  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal completion and production services(4)

     2,083,927     2,463,640     2,086,828  

Other reconciling items(5)

    
(188,603
)		  
(568,896
)		  
(144,226
)
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 6,152,054   $ 6,554,333   $ 6,098,928  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 
   Year Ended December 31,  
 
   2013   2012   2011  
 
    
   Revised
   Revised
  
 
   (In thousands)
  

Adjusted income (loss) derived from operating activities:(1)(6)

                    

Drilling & Rig Services:

    
 		    
 		    
 		  

U.S. 

   $ 315,496   $ 509,894   $ 442,831  

Canada

     61,193     91,360     89,344  

International

     177,833     91,226     123,813  

Rig Services(2)

     (3,918 )   67,366     55,856  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal drilling and rig services(3)

     550,604     759,846     711,844  

Completion & Production Services:

    
 		    
 		    
 		  

Completion Services

     51,722     188,518     229,125  

Production Services

     102,130     108,835     80,018  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal completion and production services(4)

     153,852     297,353     309,143  

Other reconciling items(7)

    
(146,237
)		  
(148,649
)		  
(154,981
)
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total adjusted income (loss) derived from operating activities

   $ 558,219   $ 908,550   $ 866,006  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

U.S. oil and gas joint venture earnings (losses)

     —     (289,199 )   88,486  

Interest expense

     (223,418 )   (251,904 )   (256,632 )

Investment income (loss)

     96,577     63,137     19,939  

Gains (losses) on sales and disposals of long-lived assets and other income (expense), net

     (37,977 )   136,636     (4,474 )

Impairments and other charges

     (287,241 )   (290,260 )   (198,072 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) from continuing operations before income taxes

     106,160     276,960     515,253  

Income tax expense (benefit)

     (55,181 )   40,986     165,083  

Subsidiary preferred stock dividend

     3,000     3,000     3,000  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) from continuing operations, net of tax

     158,341     232,974     347,170  

Income (loss) from discontinued operations, net of tax

     (11,179 )   (67,526 )   (97,601 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income (loss)

     147,162     165,448     249,569  

Less: Net (income) loss attributable to noncontrolling interest

     (7,180 )   (621 )   (1,045 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income (loss) attributable to Nabors

   $ 139,982   $ 164,827   $ 248,524  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   Year Ended December 31,  
 
   2013   2012   2011  
 
   (In thousands)
  

Depreciation and amortization(1)

                    

Drilling & Rig Services:

    
 		    
 		    
 		  

U.S. 

   $ 440,210   $ 406,740   $ 360,604  

Canada

     57,796     59,191     57,382  

International

     346,659     330,388     273,315  

Rig Services(2)

     32,029     29,617     28,192  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal drilling and rig services

     876,694     825,936     719,493  

Completion & Production Services:

    
 		    
 		    
 		  

Completion Services

     109,242     112,401     102,009  

Production Services

     103,502     104,201     96,885  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal completion and production services

     212,744     216,602     198,894  

Other reconciling items(7)

    
(2,761
)		  
(2,615
)		  
(265
)
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total depreciation and amortization

   $ 1,086,677   $ 1,039,923   $ 918,122  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   Year Ended December 31,  
 
   2013   2012   2011  
 
   (In thousands)
  

Capital expenditures and acquisitions of businesses:(9)

                    

Drilling & Rig Services:

    
 		    
 		    
 		  

U.S. 

   $ 644,792   $ 758,555   $ 719,741  

Canada

     59,386     78,729     58,134  

International

     248,980     265,249     653,759  

Rig Services(2)

     70,831     39,923     136,739  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal drilling and rig services

     1,023,989     1,142,456     1,568,373  

Completion & Production Services(8)

     325,449     238,300     487,900  

Other reconciling items(7)

     16,556     52,830     191,462  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total capital expenditures and acquisitions of businesses

   $ 1,365,994   $ 1,433,586   $ 2,247,735  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   Year Ended December 31,  
 
   2013   2012  
 
   (In thousands)
  

Total assets:

              

Drilling & Rig Services:

              

U.S. 

   $ 4,248,630   $ 4,157,470  

Canada

     608,018     699,698  

International

     3,584,339     3,626,307  

Rig Services

     474,275     644,350  
           
​ ​ ​ ​ ​ ​ ​ ​

Subtotal drilling and rig services(10)

     8,915,262     9,127,825  

Completion & Production Services(8)(11)

     2,394,865     2,301,803  

Other reconciling items(7)(12)

     849,684     1,226,394  
           
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 12,159,811   $ 12,656,022  
           
​ ​ ​ ​ ​ ​ ​ ​
(1)
All periods present the operating activities of our wholly owned oil and gas businesses, our previously held equity interests in oil and gas joint ventures in Canada and Colombia, aircraft logistics operations and construction services as discontinued operations.

(2)
Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services. These services represent our other companies that are not aggregated into a reportable operating segment.

(3)
Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of ($0.4) and ($3.1) million for the years ended December 31, 2013 and 2011, respectively.

(4)
Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.4 million and $0.5 million for the years ended December 31, 2013 and 2012, respectively.

(5)
Represents the elimination of inter-segment transactions and earnings (losses), net from the U.S. unconsolidated oil and gas joint venture, accounted for using the equity method until sold in December 2012, of ($289.2) million and $88.5 million for the years ended December 31, 2012 and 2011, respectively.

(6)
Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization and earnings (losses) from the U.S. oil and gas joint venture from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the above table.

(7)
Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures.

(8)
Reflects assets allocated to the line of business to conduct its operations. Further allocation to individual operating segments of Completion & Production Services is not available.

(9)
Includes the portion of the purchase price of acquisitions allocated to fixed assets and goodwill based on their fair market value.

(10)
Includes $57.0 million and $59.9 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2013 and 2012, respectively.

(11)
Includes $7.4 million and $1.8 million of investments in unconsolidated affiliates accounted for using the equity method as of December 31, 2013 and 2012, respectively.

(12)
Includes assets of $239.9 million and $377.6 million from oil and gas businesses classified as assets held-for-sale as of December 31, 2013 and 2012, respectively.

The following table sets forth financial information with respect to Nabors' operations by geographic area:

 
   Year Ended December 31,  
 
   2013   2012   2011  
 
    
   Revised
   Revised
  
 
   (In thousands)
  

Operating revenues and Earnings (losses) from unconsolidated affiliates:

                    

U.S. 

   $ 4,146,125   $ 4,625,614   $ 4,311,009  

Outside the U.S. 

     2,005,929     1,928,719     1,787,919  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 6,152,054   $ 6,554,333   $ 6,098,928  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Property, plant and equipment, net:

                    

U.S. 

   $ 5,474,746   $ 5,179,578   $ 4,974,239  

Outside the U.S. 

     3,123,067     3,532,510     3,655,707  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 8,597,813   $ 8,712,088   $ 8,629,946  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Goodwill:

                    

U.S. 

   $ 498,149   $ 456,463   $ 466,794  

Outside the U.S. 

     14,815     15,863     34,464  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 512,964   $ 472,326   $ 501,258  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​