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Segment Information | 12 Months Ended
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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. |  |  | $ | 554,072 |  | $ | 1,256,989 |  | $ | 2,159,968 |
Canada |  |  |  | 51,472 |  |  | 137,494 |  |  | 335,192 |
International |  |  |  | 1,508,890 |  |  | 1,862,393 |  |  | 1,624,259 |
Rig Services |  |  |  | 215,710 |  |  | 391,066 |  |  | 692,908 |
Subtotal Drilling & Rig Services |  |  |  | 2,330,144 |  |  | 3,647,942 |  |  | 4,812,327 |
Completion & Production Services: |  |  |  |  |  |  |  |  |  |  |
Completion Services |  |  |  | — |  |  | 207,860 |  |  | 1,217,899 |
Production Services |  |  |  | — |  |  | 158,512 |  |  | 1,033,538 |
Subtotal Completion & Production Services |  |  |  | — |  |  | 366,372 |  |  | 2,251,437 |
Other reconciling items (1) |  |  |  | (102,305) |  |  | (149,877) |  |  | (259,567) |
Total |  |  | $ | 2,227,839 |  | $ | 3,864,437 |  | $ | 6,804,197 |
|  |  | Year Ended December 31, |
|  |  | 2016 |  | 2015 |  | 2014 |
|  |  | (In thousands) |
Adjusted operating income (loss): (2) |  |  |  |  |  |  |  |  |  |  |
Drilling & Rig Services: |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | $ | (197,710) |  | $ | 87,051 |  | $ | 370,173 |
Canada |  |  |  | (36,818) |  |  | (7,029) |  |  | 52,468 |
International |  |  |  | 164,677 |  |  | 308,262 |  |  | 243,975 |
Rig Services |  |  |  | (48,484) |  |  | (12,641) |  |  | 53,374 |
Subtotal Drilling & Rig Services |  |  |  | (118,335) |  |  | 375,643 |  |  | 719,990 |
Completion & Production Services: |  |  |  |  |  |  |  |  |  |  |
Completion Services |  |  |  | — |  |  | (55,243) |  |  | (15,540) |
Production Services |  |  |  | — |  |  | (3,559) |  |  | 93,414 |
Subtotal Completion & Production Services |  |  |  | — |  |  | (58,802) |  |  | 77,874 |
Total segment adjusted operating income (loss) |  |  | $ | (118,335) |  | $ | 316,841 |  | $ | 797,864 |
|  |  | 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) |  |  | $ | (118,335) |  | $ | 316,841 |  | $ | 797,864 |
Other reconciling items (3) |  |  |  | (130,976) |  |  | (159,880) |  |  | (193,565) |
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) |
|  | Year Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
|  | (In thousands) |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |
Drilling & Rig Services: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 388,367 |  | $ | 425,952 |  | $ | 465,506 |
Canada |  |  | 42,143 |  |  | 46,786 |  |  | 55,986 |
International |  |  | 411,372 |  |  | 411,004 |  |  | 367,345 |
Rig Services |  |  | 33,150 |  |  | 33,619 |  |  | 33,559 |
Subtotal Drilling & Rig Services |  |  | 875,032 |  |  | 917,361 |  |  | 922,396 |
Completion & Production Services: |  |  |  |  |  |  |  |  |  |
Completion Services |  |  | — |  |  | 27,133 |  |  | 109,917 |
Production Services |  |  | — |  |  | 26,602 |  |  | 114,505 |
Subtotal Completion & Production Services |  |  | — |  |  | 53,735 |  |  | 224,422 |
Other reconciling items (3) |  |  | (3,401) |  |  | (637) |  |  | (1,718) |
Total |  | $ | 871,631 |  | $ | 970,459 |  | $ | 1,145,100 |
|  | Year Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
|  | (In thousands) |
Capital expenditures and acquisitions of businesses: |  |  |  |  |  |  |  |  |  |
Drilling & Rig Services: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 183,146 |  | $ | 224,819 |  | $ | 839,536 |
Canada |  |  | 4,546 |  |  | 24,167 |  |  | 49,317 |
International |  |  | 169,640 |  |  | 578,896 |  |  | 788,748 |
Rig Services |  |  | 23,609 |  |  | 12,791 |  |  | 103,491 |
Subtotal Drilling & Rig Services |  |  | 380,941 |  |  | 840,673 |  |  | 1,781,092 |
Completion & Production Services |  |  | — |  |  | 45,691 |  |  | 156,106 |
Other reconciling items (3) |  |  | 33,438 |  |  | 36,872 |  |  | (13,419) |
Total |  | $ | 414,379 |  | $ | 923,236 |  | $ | 1,923,779 |
|  | Year Ended December 31, |
|  | 2016 |  | 2015 |
|  | (In thousands) |
Total assets: |  |  |  |  |  |  |
Drilling & Rig Services: |  |  |  |  |  |  |
U.S. |  | $ | 3,172,767 |  | $ | 3,654,216 |
Canada |  |  | 329,620 |  |  | 371,151 |
International |  |  | 3,600,057 |  |  | 4,108,416 |
Rig Services |  |  | 359,435 |  |  | 430,319 |
Subtotal Drilling & Rig Services |  |  | 7,461,879 |  |  | 8,564,102 |
Investment in unconsolidated affiliates |  |  | 893 |  |  | 415,177 |
Other reconciling items (3) |  |  | 724,243 |  |  | 558,561 |
Total |  | $ | 8,187,015 |  | $ | 9,537,840 |
| (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. |  | $ | 642,835 |  | $ | 1,823,906 |  | $ | 4,701,122 |
Outside the U.S. |  |  | 1,585,004 |  |  | 2,040,531 |  |  | 2,103,075 |
|  | $ | 2,227,839 |  | $ | 3,864,437 |  | $ | 6,804,197 |
Property, plant and equipment, net: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 3,048,749 |  | $ | 3,703,533 |  | $ | 5,205,296 |
Outside the U.S. |  |  | 3,218,834 |  |  | 3,324,269 |  |  | 3,393,829 |
|  | $ | 6,267,583 |  | $ | 7,027,802 |  | $ | 8,599,125 |
Goodwill: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 54,199 |  | $ | 54,198 |  | $ | 146,310 |
Outside the U.S. |  |  | 112,718 |  |  | 112,461 |  |  | 27,618 |
|  | $ | 166,917 |  | $ | 166,659 |  | $ | 173,928 |
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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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